Energy Transition Update

UK, European and US industry, domestic energy policy makers and customers of energy products alike have begun to reduce reliance on fossil fuels focusing instead on green power utilisation.

A variety of sustainable low-carbon energies will be placed into widespread usage rather than oil and gas.  

UK Installations & Projects 

UK domestic energy policy is shifting towards renewable and alternative low carbon energies that negate harmful emissions. Fossil fuels will be replaced by a mix of wind, wave, solar, and hydrogen. 

• Scottish tidal power company Nova Innovation is forming a consortium with the aim of evaluating green hydrogen project viability in the Shetlands. Green hydrogen usage for transport, industry and domestic heating will be explored. 

• UK based international energy services company Centrica has begun operations on their Codford Solar Farm project which consists of 33,000 photovoltaic panels capable of delivering power to 4850 domiciles. Centrica are attempting to construct 900MW of clean energy and battery storage projects in the UK and Europe. 

• Global green hydrogen company Meld Energy has selected a location for their green hydrogen production facility – Hull's Saltend Chemical Park. The facility will possess an initial capacity of 100MW with plans to increase power manufacturing potential to 200MW. Renewable energy suppliers will be awarded PPAs (Power Purchase Agreements) once final end-product is produced. Operations are planned to begin in 2027. Total investment rests between £180 million and £240 million.  

• Norwegian State-owned power group Statkraft, UK clean energy asset and investment managers Foresight Group and UK hydrogen company Progressive Energy have coalesced to form a new company. Grenian Hydrogen will explore commercial green hydrogen opportunities inside the UK. 

• UK asset manager Gresham House is hoping to raise £80 million through their Energy Storage Fund. New equity will be used to finance a 160MW solar and battery storage facility located in California named Project Iliad. 

Europe 

Mainland Europe’s change in domestic energy provision policy has welcomed a period of investment that focuses on renewable energy projects. All European states are keen on developing sustainable avenues of energy cultivation as a way of ensuring domestic energy security. 

• In attempting to hasten the energy transition in Europe the European Investment Bank and Spanish renewable energy company Iberdrola have signed a new financing agreement worth €1billion. All financing will be used to construct 19 solar projects and three onshore wind facilities in Spain, Germany and Portugal.   

• More than half of Spain’s energy usage is derived from renewable resources in 2023. Out of the top European economies, Spain is the first country to accomplish this achievement according to Rystad Energy Forecasts. Onshore wind accounts for 20% of Spain’s energy manufacturing and dispersal.    

• UK based renewable developers AMPYR Solar Europe has completed a €200m framework project finance facility with Dutch financiers Rabobank. Raised funds will be used to finance the construction of three solar PV sites across the Netherlands. All three installations will aim for commercial operations to begin in 2024.  

• US based renewable energy company Akuo will construct a new floating solar farm in Cintegabelle, near Toulouse in southern France. 2000 local domiciles will receive clean renewable power. 

• Spanish renewable energy company EDP Renewables have been approved to construct and operate a number of renewable power installations in the latest Italian renewables auction. 43% of total solar and wind capacity in the auction was secured by EDP Renewables.

USA 

America views renewable energy as the most responsible form of power and is busy installing various clean energy facilities across the country. America is currently the world’s most attractive option when considering clean energy investment due to the subsidies that President Biden’s Inflation Reduction Act (IRA) offers.

• A report released by the Solar Energy Industries Association and global research company Wood Mackenzie has stated that the US has installed over 6GW of solar capacity. As a result, US solar power generation capability and dispersal has reached record first quarter levels.  

• American renewable power company Linea Energy has successfully acquired a solar farm project from international renewable energy company Horus Energy. Once construction is complete 63,000 Houston homes will receive clean solar energy. 

• Canadian renewable asset operator Brookfield Renewable has agreed to purchase US clean energy company Duke Energy Renewables for $2.8 billion. Brookfield Renewable will acquire 5.9GW of operational and planned solar, wind and battery storage installations with a further 6.1GW of additional projects also under consideration.  

• US Infrastructure fund Generate Capital has made an $250 million investment in American green hydrogen company Ambient Fuels.