EDP sells Spanish CCGTs, power and gas clients to Total
Portuguese utility EDP has agreed to sell two Spanish combined-cycle gas turbine (CCGT) plants with a combined 843MW of capacity and a portfolio of residential power and gas customers to Total, in a transaction based on an enterprise value of €515mn ($558mn).
The deal comprises the 425MW Castejon 1 and 418MW Castejon 3 CCGTs in Spain's northern region of Navarra and a business-to-consumer (B2C) portfolio with 2.5mn contracts, of which 1.2mn are in the Spanish power and gas liberalised markets, EDP and Total announced today.
Total will become the fourth-largest supplier of gas and power in the Spanish B2C market, with residential market shares of 12pc and 6pc respectively. Sales totalled 4.2TWh of gas and 2.1TWh of power in 2019, according to EDP.
EDP's 50pc stake in CHC Energia, a joint venture with Spanish firm Cide, is also included in the agreement. Out of the 2.5mn contracts, 0.9mn are in electricity, 0.8mn are in gas and 0.6mn are services contracts, while the remaining 0.2mn are clients from the 50pc participation in CHC Energia.
The transaction is expected to be concluded in the second half of 2020, subject to conditions including regulatory approval. The acquisition of the 50pc stake in CHC Energia is also subject to approval from Cide, Total said.
Apart from stepping into the Spanish gas and power supply business, the deal will enable the French firm to complement its future production of renewable electricity — which is intermittent — with flexible gas-fired generation, the company said.
Total signed agreements early this year to acquire projects totalling 2GW of solar photovoltaic (PV) capacity in Spain, which it plans to have fully operational by 2023. The first plants are expected to come on line by the end of 2020.
For EDP, the divestment means it will have surpassed its €2bn disposals target in Iberia, part of a move to reduce exposure to merchant and thermal power generation in the region and increase renewables capacity worldwide.
The company is also selling 1.69GW of hydropower capacity in Portugal to a consortium of investors formed by French utility Engie, renewable energy infrastructure fund Mirova and Credit Agricole Assurances, in a deal signed in December.
"Spain will continue to be a key market in EDP's portfolio, where the group continues investing in renewables, electricity networks and energy supply and services," the company said. One of its focuses in the region will be on the business-to-business (B2B) segment, in which it has 10 TWh/yr of power and 4 TWh/yr of gas supply.
The Portuguese utility will continue controlling two CCGT units in Spain, 426MW Soto de Ribera 4 and 428MW Soto de Ribera 5, located in the northwestern region of Asturias. It also plans to reconvert its 342MW Abono 1 coal-fired plant into a 181MW gas-fired operation by 2022.
Last year, EDP's CCGT generation in Iberia — including Portugal — reached 10.2TWh, of which 2.1TWh, or 21pc of the total, came from Castejon 1 and 3. Its Iberian CCGT capacity will go down to 2.9GW from 3.7GW once the divestment is completed.
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Singapore’s SP to launch 240MW solar project in China
Singapore’s SP to launch 240MW solar project in China
Singapore, 6 September (Argus) — Singapore's state-owned utility SP plans to start up a 240MW peak (MWp) agrivoltaic project in Guangdong province's Huizhou city, which will be fully operational by the end of this year. MWp refers to the maximum power output potential a solar farm has when reaching ideal conditions. SP expects the project to generate 7.5bn kWh of green electricity over the next 25 years, reduce coal use by 920,000t and avoid 4.46mn t/yr of carbon emissions. The project's solar installation capacity is 240MW, and marks SP's largest solar investment in China, the company said on 5 September. SP has secured 1.45GW of solar projects in China to date, spanning 18 provinces and municipalities. SP in May also partnered with China environmental technology solutions provider Qingdao Daneng Environmental Protection Equipment to invest and build a 90MW aquavoltaic farm in Qingdao city. This will power a green hydrogen facility in Qingdao, likely referring to Chinese refiner Sinopec's 4,500 t/yr facility . The solar project has an investment value of over 76mn Singapore dollars ($58.5mn) and is on track to connect to the grid by the end of the year. SP expects it to produce 162mn kWh/yr of green electricity and reduce carbon emissions by 160,000 t/yr. The operational model will incorporate renewable energy generation, grid integration, demand-side management, and energy storage. SP's first investment in solar assets was in June 2023, for 78MWp of agrivoltaics assets across four agricultural sites in the Dabu county of Meizhou city in Guangdong province. The project will generate 91.3GWh/yr of clean electricity, and reduce coal usage by almost 30,000t, which amounts to cutting more than 91,000 t/yr of carbon emissions. The operational date of this project was not disclosed. SP in May entered a strategic alliance with Shanghai-based CMB Financial Leasing to obtain financing services, which is expected to reach up to 8bn yuan ($1.13bn) over the next three years, to support the firm's deployment of renewable energy solutions in China. The projects will span utility-scale solar farms, distributed solar photovoltaic, energy storage, and district cooling and heating. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU gas-fired power output down in Aug
EU gas-fired power output down in Aug
London, 4 September (Argus) — EU gas-fired power generation fell on the year in August, even as above-average temperatures bolstered power demand. EU gas-fired output was 27.7TWh in August, making up 14.4pc of the generation mix, according to data from Fraunhofer ISE. EU gas-fired output was 29.3TWh a year earlier and 36.8TWh in August 2022. Spain and France drove the overall EU drop. Spanish gas-fired generation fell to 4.1TWh from 5.6TWh, as renewable generation rose on the year. French generation dropped to 626GWh from 1.6TWh as nuclear output increased. Italy partly offset this fall as gas-fired output increased to 9.6TWh from 7.7TWh. Gas-fired generation in Germany edged up to 3.2TWh from 2.9TWh. In Italy and Spain, usually the two EU countries with the highest summer gas-fired generation supported by strong demand for cooling, average maximum temperatures in Rome and Madrid were almost 3°C above 10-year averages. Maximum temperatures in Athens were also nearly 3°C above 10-year averages. Above-average temperatures boosted power demand for cooling. Total power demand last month hit 193.6TWh across the EU, up from 190.2TWh in August 2023, but still down from August in every other year since at least 2015, as shown by Fraunhofer data. Given the above-average temperatures — especially in southern Europe — and the growing use of air conditioning, the drop in power demand from pre-2023 might have been driven by weaker industrial consumption. Energy-intensive industries across Europe have continued to struggle this year with high energy costs and muted demand. German power demand in August was 36.9TWh, the lowest since at least 2010, apart from last year. And the decrease in gas-fired generation despite higher year-on-year EU power demand came as a result of higher nuclear and renewable output, the latter of which increased to 87.5TWh from 82TWh in August 2023, driven by strong solar output of 31.6TWh, up from 23.8TWh. Nuclear output rose to 51.6TWh from 46TWh, supported by increased French nuclear generation as nuclear unavailability decreased to 19.3GWh from 27.6GWh a year earlier. Coal-fired generation was down by almost a quarter in August from a year earlier, falling to 6.9TWh from 9.1TWh. Clean day-ahead spark spreads for 55pc gas-fired units held a premium to equivalent dark spreads for 40pc-efficient units on most days in August in Germany, France and Italy. This suggests there was an incentive for firms to boost gas-fired generation over coal-fired generation, at times of low renewable output. By Lucas Waelbroeck Boix Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
I-REC January-August demand surpasses whole of 2023
I-REC January-August demand surpasses whole of 2023
London, 4 September (Argus) — International renewable energy certificate (I-REC) demand in January-August surpassed consumption in all of 2023, with 20pc more I-RECs redeemed in August compared with the same month last year. Higher redemptions in Colombia, Malaysia and India last month outpaced lower demand from key buyers Brazil and China. Global I-REC redemptions totalled 9.9TWh in August, higher than 8.2TWh in August 2023 and broadly steady on the month. A total of around 182TWh was redeemed in January-August this year, surpassing the 176TWh redeemed in all of 2023. There were 14.2TWh of I-RECs issued in August, up from 12.7TWh in July but below the 14.9TWh a year earlier. The 12-month rolling average of issuances is 25.8TWh. Latin America I-REC redemptions in Latin American countries totalled 4.1TWh in August, up from 3.1TWh a year earlier. Colombia accounted for around 65pc of redemptions with 2.65TWh — the highest in at least three years — surpassing Brazil, which accounted for almost 20pc. Brazilian I-REC demand was around two-thirds lower last month compared with August 2023, with 762GWh redeemed compared with 2.4TWh a year earlier. But the country is still the largest I-REC consumer in 2024 so far, with 41.3TWh redeemed over January-August. Issuances in Brazil more than halved on the year to 532GWh in August, the lowest since June 2022. Brazilian 2024 hydropower and wind/solar I-RECs were last assessed at $0.17/MWh and $0.19/MWh, respectively, on 28 August, both steady since the end of July. I-REC demand was nearly 10 times higher on the year in Chile, where redemptions were at 266GWh last month compared with 29GWh in August 2023. But they declined from both June and July, with almost 700GWh redeemed in each month. Asia-Pacific Redemptions in the Asia-Pacific region edged up to 3.6TWh in August from 3.1TWh a year earlier, as a slight decline in Chinese demand was offset by a surge in redemptions in Malaysia. Redemptions in China were at 2.2TWh last month compared with 2.3TWh in August 2023, although they still accounted for the biggest share in the region at 61pc. Chinese I-REC issuances also declined last month and were at 5TWh, down by 2TWh year-on-year. There were 1.1TWh of I-RECs redeemed in Malaysia in August, the highest since February and nearly 12 times higher than August 2023. Approximately 8.4TWh have been redeemed in the country so far this year, compared with 9.1TWh in all of 2023. Hydropower comprises the biggest share of redemptions so far in 2024 at 7.1TWh, followed by solar with 1TWh. The volume of I-REC issued in Malaysia edged down to 623GWh last month from 672GWh in August 2023. Malaysian current-year hydro I-RECs were assessed at $1.30/MWh throughout August, broadly steady since Argus assessments began in February. Solar I-RECs with 2024 vintage were at $5.60/MWh at the end of last month, up from $5.25/MWh when assessments first launched on 15 February. South Asia Redemptions in India continued to rise last month to 854GWh, up from 813GWh in July and 550GWh in August 2023. I-REC issuances were at 1.1TWh in August, down from 1.17TWh in July but nearly two times above the 576GWh issued in August last year. Earlier this week, the International Tracking Standard Foundation announced that ICX, a wholly-owned subsidiary of Indian Energy Exchange (IEX), has been approved as the country's first local issuer of I-RECs for renewable electricity . The latest Argus assessments for 2024 Indian hydro and wind/solar I-RECs were $0.50/MWh and $0.65/MWh, respectively, on 29 August, both down by $0.05/MWh on the week after holding steady since the end of July. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia faces uncertainty over climate credentials
Australia faces uncertainty over climate credentials
Sydney, 2 September (Argus) — Australia's Labor Party-led federal and state governments have advanced key policies over the past year that could help the country meet its 2030 emissions reduction targets. But increased climate opposition, looming national elections in 2025 and policies supporting fossil fuel use threaten to slow the momentum. Canberra has moved to address the country's ability to meet its key 2030 target of renewables accounting for 82pc of energy use — a weak spot in its greenhouse gas (GHG) emissions reduction plan. The goal was looking increasingly unachievable without support so the government expanded its Capacity Investment Scheme (CIS), launching a first major 6GW tender in May. Tenders will run every six months until 2026-27 for a total of 32GW, consisting of 23GW of renewables — solar, wind and hydro — and 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries, all to be in operation by 2030. Australia could achieve a 42pc GHG emissions reduction from 2005 levels by 2030 under a scenario "with additional measures", which include the expanded CIS, the government's projections show. This would be just short of the legislated 43pc target, prompting ministers to assert the goal could be within grasp. But the country must resolve problems arising from its increasingly constrained electricity grid, which have been compounded by slow planning and environmental assessment processes, in part because of rising community opposition. The renewables and transmission rollout has been slower than expected, and some states will be paying utilities to postpone the closure of coal-fired plants, raising concerns that any further extensions could impact the 2030 national target. Australia also faces resistance in other key sectors. Canberra had to backtrack on fuel efficiency standards for new passenger and light commercial vehicles, meaning it may need to look at other options to cut emissions from transportation. This sector currently accounts for a fifth of Australia's total GHG emissions, but could be the largest source by 2030 as the electricity sector decarbonises. Nuclear option Labor, which governs Canberra and all Australian states and territories except Tasmania, faces rising competition in elections next year. The opposition Liberal-National coalition in June said it continued to support achieving net zero emissions by 2050, but warned that Labor's revamped 2030 targets could not be met. Labor's "renewables-only approach" raises supply security and cost issues, the opposition says. It promises instead to focus on a nuclear energy plan to bring state-owned reactors on line as early as 2035-37, if it is elected next year. The opposition coalition has declined to set its own 2030 goal for GHG emissions cuts and is yet to provide more details about its plans, but its strategy of capitalising on the cost-of-living crisis and discontent over large-scale renewables and transmission projects across regional and rural communities seems to be working. Recent polls indicate lower approval ratings for prime minister Anthony Albanese. Australia will join the UN Cop 29 climate conference in Azerbaijan in November looking to win its bid to co-host Cop 31 in 2026 with its vulnerable Pacific island neighbours. But uncertainty over its climate ambitions requires the country to assert its position as a new global climate leader and move on key issues agreed at Cop 28, including transitioning away from fossil fuels, as Pacific countries demand. But Australia still sees gas playing a crucial, albeit reduced, role in its energy transition, and a new strategy in May stated the need to bring new gas supplies on line to keep domestic energy affordable and maintain Australia's status as a reliable LNG supplier. Almost 80pc of Australia's fossil fuel CO2 footprint in 2022 came from its exported carbon, non-governmental organisation Climate Analytics says. By Juan Weik Australia's emissions mn t CO2e Sector 2005 2020 2025* 2030* Electricity 196.7 172.0 131.6 81.4 Stationary energy 82.2 99.9 101.9 96.4 Transport 82.0 93.2 102.2 101.6 Fugitive 42.8 53.6 49.8 46.5 Agriculture 86.0 72.6 79.0 79.8 Industrial processes 30.1 31.9 29.8 24.5 Waste 15.7 13.5 13.2 13.1 LULUCF† 80.7 -42.5 -55.3 -57.1 Total 616.3 494.2 452.1 386.0 Total WAM scenario‡ 358.0 *projected †land use, land-use change and forestry ‡with additional measures — Australian government Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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