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Daily Energy News

Policy & Regulatory

Ivory Coast plans to update its Nationally Determined Contribution (NDC), increasing its greenhouse gas (GHG) emission reduction target from 28% to 30% of the business-as-usual (BAU) scenario by 2030. This objective corresponds to a reduction of around 37 MtCO2eq in 2030, compared to 9 MtCO2eq in the first NDC. Since 2012

Spain has awarded 2,258 MW of wind and 866 MW of solar as part of its fourth renewables power auction. In total, 95% of the 3.3 GW on offer was allocated, with a weighted average price of €31.65/MWh for solar PV and €30.18/MWh for wind. Capital Energy secured 1,540 MW of wind and 8 MW of solar, followed by Forestalia Renovables with 576 MW of wind and 200 MW of solar, Naturgy with 221 MW of solar, and Repsol with 138 MW of wind. Iberdrola and Endesa did not bid in the auction.

Companies

As part of its newly announced target to reduce its Scope 1 & 2 carbon emissions by 50% by 2030, the mining group Rio Tinto plans to deploy 6 GW of wind and solar capacity in Australia to decarbonise iron ore and smelting operations. Projects include 1 GW of wind and solar capacity at Pilbara, which should be built rapidly and that should replace the natural gas power plant on site, and 5 GW at Boyne Island and Tomago smelters.

SENS LSG, a joint-venture (JV) between the German power company Steag and Austria's LSG Group, plans to set up 25 solar projects in Greece with a total capacity of 480 MW. The JV will be the project developer and responsible for the planning, construction, and O&M (operations and maintenance) services of the plants. Green Source and Core Value Capital are also involved in the project. The projects could be expanded to a total capacity of 1 GW at a later stage. 

Votorantim, a Brazilian industrial group, has unveiled a plan to create a listed integrated platform with Canada Pension Plan (CPP). The new company will have an installed capacity of 3.3 GW, including 2.3 GW of hydro and 1 GW of wind, and a 1.9 GW pipeline of hydro and solar projects. CPP will invest an additional BRL1.5bn (US$265m). In addition, the new company will be a large energy trader in Brazil, having sold an average of 2.6 GW during 2020. 

The UK energy regulator Ofgem has appointed Shell Energy to take on supplying approximately 252,000 domestic customers and 600 non-domestic customers of Pure Planet, Daligas, and Colorado Energy, which have ceased trading due to the rise in energy prices. In September 2021, Shell Energy already took on 255,000 customers from another failed supplier, Green Supplier. In total, the company will add 50% of its current base of around 1 million.

Energy Prices & Taxes

Italy plans to set aside around €2bn to keep gas and electricity bills down in 2022. In September 2021, the country unveiled a plan worth €4bn to curb increases in energy prices until the end of 2021 with a focus on the poorest and most vulnerable households, as gas and electricity prices could increase by 30-40% in the next quarter in a context of surging gas prices. Italy will suspend the system costs, which are added to energy bills to fund measures such as incentives for renewables, for the last quarter of 2021.

Forecasts

Indonesia has reduced its oil lifting target for 2021 from 705 kb/d to 665 kb/d (-6%), and its gas lifting target from 58 to 57 bcm (-2%). The COVID-19 pandemic delayed new projects. The upstream activities and production was also curtailed by unplanned shutdowns. In 2020, the country produced 730 kb/d of oil (-5% compared to 2019) and 64 bcm of natural gas (-7%). Indonesia’s proven gas reserves are 2,605 bcm (end of 2019). Proven oil reserves are estimated at 427 Mt.

Infrastructure & Investments

The Federal Maritime and Hydrographic Agency (BSH) has awarded a planning clearance for the 900 MW Borkum Riffgrund 3 (BKR3) offshore wind project. Earlier in October 2021, Ørsted signed an agreement with the European fund manager Glennmont Partners for the sale of a 50% ownership share in the project. The transaction is expected to amount to approximately DKK9bn (€1.2bn), including the price for the acquisition of a 50% stake and the commitment to fund 50% of the payments under the EPC contract for the entire wind project.

Chile has awarded an environmental permit to Cerro Dominador to increase its 450 MW Likana concentrated solar power (CSP) plant's capacity to 690 MW, with the installation of three solar power towers. The project is located in the municipalities of Calama and Sierra Gorda in Antofagasta region.