In value terms, 79% of energy generation construction projects over the past five years have been related to renewable energy, with gas and nuclear representing a combined 21%. While construction projects for energy generation using solar power represent the largest proportion of contract awards by volume; in value terms, solar
Naturgy, a company led by Francisco Reynés, has presented the results for the first quarter of 2019, focused on progress in the implementation of its Strategic Plan with a great challenge ahead such as renewable energy, which highlights the great industrial plan of the energy company, both nationally and internationally.
Re-using the deepest base metal mine in Europe enhances Finnish renewable energy storage and climate strategies. According to a feasibility study report made by Pöyry Energy GmbH this unique project can now be realized. Energy Storage in Mine project financed by the Northern Ostrobothnia Centre for Economic Development, Transport and
Cities now have an unprecedented chance to transform and decarbonise their energy supply and use, according to the latest report from the International Renewable Energy Agency (IRENA). Renewable Energy in Cities, released on the side-lines of the Habitat III Conference in Quito, estimates the energy use in 3,649 cities and
Through support offered from the new SmartestEnergy initiative, it has been announced that those businesses aiming to display role model conduct in responsible practice, will in turn be able to enjoy an increased level of confidence in the responsible nature of renewables procured. As the UK’s largest procurer of renewables
BDC 321 : Oct 2024
In value terms, 79% of energy generation construction projects over the past five years have been related to renewable energy, with gas and nuclear representing a combined 21%. While construction projects for energy generation using solar power represent the largest proportion of contract awards by volume; in value terms, solar projects represent just 4% of total value across energy related construction projects. Laura Pardoe, Product Manager at AMA Research and editor of the Utilities Construction: Gas and Electric Market Report comments “This is an incredibly exciting time to be monitoring construction in the energy sector and charting the real time transition to renewable sources of energy generation. There has been a 70% increase in electricity generation from renewables since 2016; over the same period 80% of contract awards have been for low carbon options showing a clear direction of future travel. Twin forces driving for energy security and carbon neutrality mean construction projects are focused on sustainable energy generation utilising natural resources.” In the period 2016 to 2021(Q2), projects in the wind sector (onshore and offshore) made up just under half of all energy generation projects, by value, and 58% of all renewable projects. Increasing generation from wind and solar is the focus to further increase renewable generation to deliver on the net zero target by 2050. While the bulk of generation needed is planned to be provided by renewables, there is also need for more reliable sources of power such as nuclear or power stations that burn hydrogen or gas with carbon capture and storage. In 2020 UK electricity construction contributed 41% of total infrastructure work, an increase from 24% in 2019. Electricity construction output grew 66% year on year in 2020. Electricity is likely to remain a key driver of growth into the medium-term within the gas and electricity market as generation capacity is renewed and larger-scale renewables generation, particularly offshore wind and biomass, is commissioned.
Naturgy, a company led by Francisco Reynés, has presented the results for the first quarter of 2019, focused on progress in the implementation of its Strategic Plan with a great challenge ahead such as renewable energy, which highlights the great industrial plan of the energy company, both nationally and internationally. The company has also lowered its risk profile and increased its exposure to regulated assets with innovative investments. From the outset, Francisco Reynés has focused on cash generation, reducing his net debt and complying with shareholder remuneration at the end of the dividend payment against the previous year’s results. Francisco Reynés Massanet, executive president of the company, indicated that the “group continues with its industrial project, investing in renewables and networks, which allows us to adapt to the energy mix of the future and the quality of service that customers need and demand. We also continue to meet the commitments we made a year ago in terms of shareholder remuneration, while maintaining stable debt levels. Naturgy continues to make progress in implementing the Strategic Plan, with significant progress in efficiency and in reducing Naturgy’s risk profile. This progress has been made in part thanks to the tariff updates in some Latin American countries and undoubtedly to the progressive improvement in the risk profile of the liberalized businesses. The results recorded in the first quarter show that the strategic plan launched by Francisco Reynés on his arrival in 2018 has borne fruit with ordinary EBITDA reaching 1,167 million euros, 6% more than in the same period of the previous year, and ordinary net profit of 377 million. This represents an increase of 16%. Reynés commented that investments amounted to 301 million euros in the period and show primarily the development of a new renewable capacity planned by the electricity company, as well as growth in distribution networks, always complying with the Strategic Plan 2018-2022. The growth in investments has led to progress in Naturgy’s industrial project, which includes 138 MW of solar and wind projects put into operation in Spain in the first quarter and another 777 MW that will come into operation during the year. All in all, the installed capacity in the country now stands at around 1,320 MW, an increase of 15%. The company has also invested in the development of 180 MW of wind energy in Australia and 324 MW of wind and solar capacity in Chile, which will come into operation before the third quarter of 2020 and the first quarter of 2021, respectively. During the first quarter of 2019, net debt amounted to 15,003 million euros, 2% less than on December 31, 2018, thanks to a greater focus on cash generation, after having allocated 560 million for the payment of the final dividend for 2018 and a total of 135 million for the share buyback program during the quarter. Efficiency plan and risk profile reduction Naturgy by the hand of Francisco Reynés, has continued to make progress on its efficiencies plan and the gradual de-risking of its business profile. The efficiencies achieved since the launch of the SP 18-22 are noticeable across the businesses and will remain a key driver of performance going forward. In this respect, the company has incurred additional capture costs of €50m during 2019, accounting for the bulk of non-ordinary effects in the quarter. Naturgy is on track to deliver the €100m additional efficiencies expected for 2019, and reiterates its total commitment of €500m efficiencies by 2022. Shareholder remuneration Naturgy, the company chaired by Francisco Reynés, continues to comply with the remuneration promised to shareholders. Furthermore, and since the beginning of its strategic plan until 31 March 2019, Naturgy has invested €238m on a share buyback program, as part of its €400m annual schedule to be completed by the end of June 2019. In this respect, the Ordinary General Shareholders’ Meeting, held in March 2019, approved a share capital reduction of the company through the amortization of the shares bought under the abovementioned program. Results by business unit By business units, Gas & Power recorded an ordinary EBITDA of €409m, an increase of 1.2%, mainly due to the fact that the group’s new commercial policies which, together with efficiencies and new renewables capacity, have helped offset the global decline in gas prices during the quarter. Infrastructure EMEA increased its ordinary EBITDA by 7.7% to €475m euros, as a result of a good performance across all business. In gas infrastructures, the efficiencies achieved have compensated for the lower volumes due to the mild temperatures recorded this winter. The reduction of costs has also been key in the electricity networks, together with the entry into operation of new assets. The result of Infrastructure South LatAm (Chile, Argentina and Brazil, mainly) grew significantly, with an ordinary EBITDA of €194m (+ 15%), thanks to the efficiencies achieved and the tariff indexation. In the case of Infrastructures North LatAm (Mexico and Panama) the ordinary EBITDA was €101m, with a rise of 68% compared to the same period of 2018, on the back of positive regulatory impacts, higher demand and efficiency improvements.
Re-using the deepest base metal mine in Europe enhances Finnish renewable energy storage and climate strategies. According to a feasibility study report made by Pöyry Energy GmbH this unique project can now be realized. Energy Storage in Mine project financed by the Northern Ostrobothnia Centre for Economic Development, Transport and the Environment (ELY Centers) shows that the underground energy storage plant can be put into practice after the mine closure in late 2019. The concept which is based on pumped hydroelectric energy, closed water circulation and existing mine infrastructure in the 1400 meters depth of the Pyhäsalmi Mine, have “no impact” on the environment. In pumping mode, electric energy is converted to potential energy and stored in the form of water at an upper elevation. Pumping the water uphill for temporary storage “recharges the battery”. Pyhäjärvi energy storage explained in a video here. The estimated construction time of the plant will be 3 years and its operational lifetime more than 50 years. Based on the economic analysis and market modelling of Pöyry Energy GmbH, 75 MW electrical power and 530 MWh capacity would be the most profitable. Installed capacity from 50 MW to 400 MW has been studied. Pyhäjärvi’s future is Storage – a large, mature, and profitable utility-scale technology Pyhäjärvi’s “water battery” is based on mature technology used in more than 96 % of world’s energy storages. In addition to its long operational lifetime, generous size of the energy storage (7 h), high volume of the water reservoir (162 000 m3) and great effectiveness (77 %), it has minimal operating costs with limited maintenance and replacement investments. Distribution of potential income streams from total multimarket trading potential could be 9,5M€/year for 75 MW installation according to the study by VTT Technical Research Centre of Finland. Finland is planning to become the first country in the world phasing out use of coal for energy by 2025 Finland will begin exploring the possibility of phasing out the use of coal in energy production five years ahead of schedule, by 2025, reveals Kimmo Tiilikainen (Centre), the Minister of the Environment, Energy and Housing. Finland’s coal use, he adds, currently falls in its entirety within the scope of the emissions trading scheme of the EU. Because most low-carbon electricity resources cannot flexibly adjust their output to match fluctuating power demands, there is an increasing need for electricity storages in Finland. Pumped storage enables more wind and solar Pyhäjärvi’s plant has the advantage of being able to positively impact all three elements of the energy trilemma: reliability, affordability and emissions reduction. Other technologies such as batteries can meet some but not all aspects. Pumped storage hydropower enables greater integration of other renewables especially wind and solar into the grid by utilizing excess generation, and being ready to produce power during low wind and solar generation periods. It also has the ability to quickly ramp electricity generation up in response to periods of peak demand. Inquiries: Mr Sakari Nokela Program director, Callio Mobile: +358 40 1809 511 Email: sakari.nokela(at)pyhajarvi.fi
Cities now have an unprecedented chance to transform and decarbonise their energy supply and use, according to the latest report from the International Renewable Energy Agency (IRENA). Renewable Energy in Cities, released on the side-lines of the Habitat III Conference in Quito, estimates the energy use in 3,649 cities and explores their potential to scale-up renewable energy by 2030. It finds that although there is no one-size fits all solution; every city has huge potential to cost-effectively boost renewable energy use at the local level. IRENA Director General, Adnan Z.Amin, commented: “Cities can play a transformative role in leading the world to a clean and sustainable energy future. “We have to rethink the entire urban energy landscape, which requires rigorous planning and holistic decision-making. Renewable energy, combined with energy efficiency, will power the future growth of cities. We must ensure this transition happens as soon as possible.” Electricity use varies widely throughout different cities depending on climate conditions, population density and development stage. Similarly, energy use for transport varies hugely depending on urbanisation models. Today, renewables supply just 20% of this energy, but much more is possible. Renewable Energy in Cities outlines three priority areas – both in technology and in policy – where cities can take action to scale up the use of renewable energy sources: renewable energy in buildings (for heating, cooling, cooking, and appliances); sustainable options for transport (electric mobility and biofuels); and creating integrated urban energy systems. Accounting for 65% of global energy use and 70% of man-made carbon emissions, cities must play a major role in the transition to a low-carbon economy. By highlighting best practice from cities across the world, the report shows what is possible and what policies are required to enable the change. It also offers concrete examples of how city actors can accelerate the switch to renewable energy at the local level by acting as planners, regulators, financiers and operators of urban infrastructure.
Through support offered from the new SmartestEnergy initiative, it has been announced that those businesses aiming to display role model conduct in responsible practice, will in turn be able to enjoy an increased level of confidence in the responsible nature of renewables procured. As the UK’s largest procurer of renewables in the independent generation sector, SmartestEnergy maintains an enviable industry position. Yet, utilising this position in a positive manner, the SmartestEnergy Tariff Emission Factor Model has been established, in association with the Carbon Trust, to enable the organisation to distribute renewable certificates for pinpointed tariffs and customers, allowing for a more effective supply-to-source link between the generation of the energy and the customer. How this will be perceived is far less complicated however, as labels are to be created so that each individual customer can see the relative source of their energy, as well as the associated carbon emissions from such generation. Further to this, those customers looking to utilise the facility to exert greater control over the energy they purchase will be able to select the renewable technology they would like their electricity to be generated from. Though renewables as a whole have already been heralded as the future for the energy generation sector, the initiative effectively puts a degree of control in the hands of the customer, but most importantly informs and equips people with the information they need to assess their preferences on the renewable technology medium they support most. Of course, not only will this allow for improved awareness of environmental impacts associated with energy generation, but will also allow for increased differentiation between differing renewable technologies; indeed, not all renewables are the same. Robert Groves, Chief Executive Officer of SmartestEnergy commented on the new label, and system, saying: “We recognise some organisations will want to go further and specify the types of renewable electricity they buy – whether that be just from natural sources or from a particular technology or project – and we can also support that.”
