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Daily Energy News

Policy & Regulatory

Russia has submitted its first Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC). By 2030, the country aims to limit greenhouse gas (GHG) emissions to 70% of their 1990 level (3.1 GtCO2eq), corresponding to a 30% cut in GHG emissions over the 1990-2030 period. Earlier in November 2020, the Russian president had signed a decree ordering the government to work towards a cut in GHG emissions to 70% of their 1990 level by 2030, taking into account the maximum possible absorptive capacity of forests.

The Federal Council of Switzerland has adopted the revised CO2 Ordinance, which is scheduled to enter into force on 1 January 2021. The revision includes the extension of key climate protection instruments until the end of 2021, including an exemption from the CO2 tax for heavy emitters covered under the Swiss emission trading scheme (ETS), and an obligation for fossil fuel importers to offset the related emissions.

The European Commission has approved the competitive tender mechanism introduced by Germany to compensate for early closure of hard coal-fired power plants. The country decided to encourage the early closure of hard coal-fired power plants via a shutdown premium awarded through a competitive tender mechanism.

The Solar Energy Corporation of India (SECI), which is a fully owned subsidiary of the Ministry of New and Renewables Energy of India, has announced the results of a July 2020 tender for 1,070 MW of solar projects in Rajasthan. Green Infra Wind Energy, a unit of Singapore-based Sembcorp Industries, and Saudi Arabia-based Al Jomaih Energy and Water both bid INR2/kWh (US$2.7c/kWh) for constructing 400 MW and 200 MW, respectively. In addition, NTPC offered INR2.01/kWh (US$2.7c/kWh) for 600 MW of solar capacity and secured the remaining 470 MW.

The German Federal Network Agency (Bundesnetzagentur or BNetzA) has published the results of the latest tenders for onshore wind and solar capacity, with a bidding date set for 1 November 2020. The joint auction for 200 MW of solar and onsore wind capacity attracted 91 bids totalling 518 MW for solar projects only, with price ranging from €5.18c/kWh to €5.45c/kWh (weighted average of €5.33c/kWh). 43 bids totalling 202 MW were selected. Almost half of the projects were awarded in Bavaria with 20 projects (91 MW).

Companies

The Brazilian national oil company Petrobras has approved its Strategic Plan 2021-2025, cutting its five-year investment plan by 27% to US$55bn compared with its 2020-2024 strategic program. Petrobras plans to invest US$46bn (84% of the total investments) in exploration and production, including US$32bn (70%) in pre-salt assets. The group will also limit spending approval to new projects that can be profitable with Brent prices as low as US$35/bbl.

Infrastructure & Investments

The Tanzania Electric Supply Company (Tanesco) has started construction on the Tanzania-Zambia Electricity Transmission Initiative that seeks to link up the Eastern Africa Power Pool (EAPP) and the Southern African Power Pool (SAPP). The Tanzania-Zambia Electricity Transmission Initiative includes the construction of 400 kV double circuit transmission lines over 620 km, from Iringa to Sumbawanga to link the Tanzanian north-west grid to the interconnector with Zambia. In 2018, the World Bank, through the International Development Association, approved a credit of US$455m for the project.

Tokyo Gas has joined the joint venture created in November 2019 by Northland Power and Shizen Energy to develop around 600 MW of wind projects in the Chiba prefecture of Japan.

SSE Renewables and Equinor have reached financial close on the first two phases of the 3.6 GW Dogger Bank offshore wind project in the North Sea (United Kingdom), the 1,200 MW Creyke Beck A and 1,200 MW Creyke Beck B offshore projects, requiring a total investment of £6bn (€6.7bn).

Emerging Africa Infrastructure Fund (EAIF) has awarded a US$31m loan with a 10-year term to Access LNG, a consortium between Africa-focused private investment firm Helios Investment Partners and LNG infrastructure player Gasfin Development, for the 2 Mt/year (2.7 bcm/year) Tema LNG import project in Ghana. The project reached financial close earlier in November 2020 and commissioning is scheduled by the end of 2020.