Energy Transition Update

Energy production, distribution and security are concerns faced by all economies across the globe. ThisWeekinFM Guest Editor, Daniel Lynn, has collected a selection of news items across the international energy landscape that demonstrate a preference towards sustainable and secure renewable fuels that reduce carbon emissions.

UK Projects & Investment

Current UK energy policy concentrates on the introduction of clean energy as well as enhancing the performance of current power outlets. Various clean energy projects are under construction and vast amounts of capital is being invested into renewable based energies.

• Italian electric cable manufacturers Prysmian has secured a €180m payment that ensures capacity availability for a large cable connection project in the UK. The Scotland-England grid connection project will form one part of a series of planned electrical grid reinforcements. All grid adaptations will be aimed towards increasing the capability of the UK transmission network as well as facilitating an increased switch towards renewably sourced electricity.

• UK clean energy company Banks Renewables has officially submitted a planning application for the 280MW Bodinglee wind farm in South Lanarkshire, Scotland. The development will consist of 37 wind turbines and will include battery storage. Company forecasts estimate that around 6500 locals will retain combined financial savings of between £2.5 million and £4.5 million each year on energy costs.

• UK bank Barclays is supporting the development of the Moray West offshore wind farm by providing funds equating to £95.5 million.

• French global energy player EDF Renewables will examine the possibility of a 400MW wind farm located on the English – Scottish border. The proposed Liddesdale wind farm will consist of 80 wind turbines that will produce clean electricity.

European Finance & Construction

European economies are keen to transition towards green energies that do not produce emissions or financially benefit Russia’s current political regime. European countries are now busy organising the installation of multiple clean energy facilities that produce sustainable and secure clean energies. As EU states shift towards renewable power usage international big business is also heavily investing into future continental green energy manufacturing and dispersal.

• UK management consultants Plenitude and Italian head fund managers CPD Equity have announced that 4 new solar PV projects are to be rolled out across Italy. A total investment of €1.7billion has been mobilised to construct and develop all 4 sites. Once operational 150,000 households will receive clean power.

• The French government has announced the release of at least €65 million in funding to be dedicated towards the tidal energy pilot farm FloWatt. Once construction is complete in 2026, electrical demands of 20,000 people can be met for 20 years.

• Finnish wind and solar developer Taaleri Energia are hosting their sixth renewable energy fund. In the fund’s first closing €286m in commitments were accumulated. The fund hopes to attract €600m and maintains a hard cap of €900m. The fund aims to construct and develop multiple solar, battery storage and wind sites across Scandinavia, the Baltics, south-east Europe and the USA. The fund will target an IRR (International Rate of Return) of 10% for investors over 10 years.

• 73 projects that combine to produce 1156MW have been chosen by the French government in the latest round of onshore wind tenders. A new round will begin on the 9th of October for 925MW.

• UK oil and gas multinational BP has secured two North Sea zones from the latest round of German auctions. BP had a financial bid totalling €6.8 billion accepted. Two offshore wind facilities will be constructed and installed between 130km and 150km off the northern German coast.

USA Projects & Finance

America is currently the most attractive investment option for domestic and global energy players. President Biden’s IRA (Inflation Reduction Act) is designed to persuade local and foreign investment into renewable energy projects through generous subsidies.

• US renewable energy operator Enel North America has begun commercial operations at the 200MW Alta Farms wind facility, located in DeWitt County, Illinois. Total investment in constructing and developing the site totalled $345 million.

• Spanish based global renewable energy company Matrix Renewables has acquired a solar project in Bell County, Texas. The 284MW Stillhouse Solar Project was previously owned by US solar company, OCI Solar Power. The Stillhouse Solar Project will commence commercial operations in 2025.

• US investment company Blackstone infrastructure Partners has provided $1 billion of financing towards US power company Invenergy Renewable Holdings. This investment will support the construction and development of multiple clean energy projects that include solar, wind, battery storage and hydrogen.

• US renewable energy company Ameresco has signed an 80MW grid battery contract that will be divided into eight separate sites across Colorado. Operations will begin in 2024.

• US clean energy company DE Shaw Renewable Investments (DESRI) has welcomed financial close for a 200MW solar as well as a 100MW battery storage project in San Juan County, New Mexico. Commercial operations will begin during mid - 2024.