Backed by investment group Eurazeo, the seven year old start-up operates services including microgrid trading of clean power generated on office campuses & industrial estates up and down the country.  Linking generating commercial tenants to consuming companies in neighbouring or adjacent premises is a key offering.

UrbanChain’s founders Somayeh Taheri and Mo Hajhashem, pictured, described the licence grant as a major milestone. It permits UC Energy Ltd to supply to non-domestic premises, elevating the quality of its product array offering to customers, while ensuring more control for its generator clients.

The two originators met at Manchester University and launched Urban Chain in 2017. It is based on the city’s Science Park.

Chief operating officer Mo said: “Obtaining our electricity supply licence from Ofgem ranks extremely high, as you have to pass a very rigorous due diligence process. It’s a major turning point for us.”

“This step will enable us to step up our ability to offer customers a real traceable choice of energy and advance UrbanChain’s plans for granular ESG ( – environmental, societal & governance  – ) tracking.”

UrbanChain’s deeptech platform for peer-to-peer energy exchange uses integrated smart contracts and machine learning to match generators of renewable energy and consumers on a half hourly basis – resulting in secure energy prices and secure physical flows for energy generators.

Local government organisations, companies from across the private sector, generators of renewable energy, energy suppliers and domestic households all trade within the regulated platform.

Two months ago, the company allied with business supplier Equans & Dudley Metropolitan Borough Council to create a virtual power plant (VPP) across council-owned buildings & homes on the West Midlands authority’s Brockmoor estate.

Reacting to Ofgem’s licence grant, the recipient’s portfolio director Garry Pickering explained:

“With UrbanChain now an official energy supplier, it ensures we have full control of our peer-to-peer matching process which enables greater security for generators of renewable energy.

“We will also have clearer transparency on data flows and it will allow us to roll out a new suite of products, ensuring generators have true choice in where their generation goes.”

UrbanChain employs 30 people. This month it revealed it is gearing up for a Series B funding round push towards the end of this year.

It follows last year’s successful raising of £5.25 million, led by Eurazeo.  Further backing comes at present from the Department for Energy Security & Net Zero and Innovate UK.

Somayeh Taheri, UrbanChain CEO, said: “We started UrbanChain with a mission to alleviate fuel poverty and to fix a broken inefficient energy market model.

“Our social responsibility values haven’t wavered and we see ourselves as more than a platform or an energy exchange, our role is to create communities.

“Renewable energy is not just for the well off and we are tackling this. Our goal is to connect as many generators as possible to their regional communities and local businesses.

“Peer-to-peer energy exchange is a choice in itself and if we can help all parts of society become renewable prosumers then we are succeeding in our core missions.”

The post Microgrid clean power traders UrbanChain secure supplier licence appeared first on theenergyst.com.

Get it right and it can be an amazing success, but get it wrong and it can be a catastrophe.

For all the developments within the PPA market, getting the clarity and independent expertise needed to operate effectively hasn’t kept pace.  Finding relevant, real-life commercial support and knowledge from unbiased, trusted, independent advisors, that have actually used PPA contracts and fully understand their pro’s and con’s has been tricky to find. This is leaving many companies in a confused state about what is the best path to take.

To fill the gap, Cielo Energy, built on 30 years of front-line electricity market experience, has created a series of on-line, easy to access and simple to understand courses on PPA contracts. The online curriculum is built to provide focussed training covering the real-world commercial realities of PPA contracts, delivering clear knowledge in an easy to understand, digestible format.

Stuart Lloyd-Evans, Managing Director of Cielo Energy says, “I was involved in my first PPA contract in the late 1990’s and have stayed close to the market ever since.  PPA contracts can be fantastic if used properly, but the key to long term success is really understanding what you’re getting into up front, and being able to ask the right questions. We take an awful lot of calls from companies, who need simple, basic, straight forward commercial assistance with PPA’s. This is why we have created the online PPA training courses.  Available at your convenience, for buyers and sellers, making sure this potentially complex subject is covered in a straight forward real-world way.”

The Cielo PPA Courses cover a short, but information packed, ‘Executive Summary’ Course for those looking to really accelerate their knowledge quickly.  Aimed at senior leaders and new entrants to provide an effective introduction to the PPA marketplace.

There is also a longer more in-depth ‘Effective Implementation’ Course covering the commercial realities for buyers and sellers – aimed at those using or thinking about using PPA contracts themselves, or are party to clients using them.  Typically appropriate for, advisors, analysts, investors and academics, investors, lawyers, and renewable energy companies.

On completion, included in each course is a free 1:1, 30-minute consultation with one of the Cielo experts, allowing you to focus on any specific questions you have, relevant to you and your business.

Naturally, Cielo are well placed to handle any PPA Agreements for you, if that’s your preference. The key thing to remember that as an Independent Advisor, Cielo Energy has your best interests at heart.

Visit Cielo Energy or get in touch to see how we can help make your decarbonisation journey a long-term success, or contact us via email.

The post PPA contracts: Getting the knowledge you need, when you need it appeared first on theenergyst.com.

Running for 15 years, today’s deal will see the Co-op taking all the output from the dedicated 9MW site, pictured, near Wisbech.

Peak output from Coldham’s 19,000 panels will be enough, the Co-op calculates, to power 55 of its food stores, a demand equalling that from 2,000 homes.

Chief executive Shirine Khoury-Haq said; “The launch of Coldham solar farm, as a result of our PPA with ScottishPower Renewables, shows Co-op’s commitment to achieving Net Zero in our own operations by 2035.

“Co-op maintains that the government should make decarbonising the grid a top priority”, Khoury-Haq went on. “

“However, businesses still have their part to play, and this solar farm is a further step in Co-op’s approach to renewable energy procurement through a mixture of PPAs and embedded generation.”

ScottishPower Renewables boss Charlie Jordan responded: “We’re delighted to partner with companies that understand the importance of decarbonising their operations.

“By securing long-term commitments, PPAs provide stability, certainty, and ultimately accelerate our journey towards a greener, more resilient energy landscape.”

Enriched with 7,500 native trees planted by SPR, the Coldham solar farm sits next to SPR’s existing windfarm, and benefits from the same grid connection.

The Co-op recently signed of a 15-year CPPA to offtake from a 34MW solar farm in north Yorkshire, Its arrays are due to come fully onstream next year.

The post Co-op collects divi from ScottishPower’s solar PPA appeared first on theenergyst.com.

Presentation – Joy Vickers, Associate Director, Associate Director Global Energy Procurement, AstraZeneca

Presentation – Neil Garland, Head of Origination & Gareth Ball, Head of Solar and Storage of GridBeyond

If you have still not subscribed to free issues of The Energyst magazine you can do so here. 

The post Corporate PPAs within a wider net zero context – webinar appeared first on theenergyst.com.

Benefitting for at least 10 years will be the UK subsidiary of Kerry Group, the global supplier of nutrition ingredients.  The deal will meet at least half of the company’s electricity consumption.

The agreement is structured as two separate financial pay-as-produced PPA deals. It commits capacity from two of RWE’s imminent solar farms, Cotmoor in Nottinghamshire and Copse Lodge in Northamptonshire.

Each has a potential capacity of 49.9MWp.  Construction of the Cotmoor farm begins this year, with Copse Lodge expected to follow in 2025.

Olaf Lubenow, RWE’s head of trading solutions covering the UK: “Solar power is one of the quickest and easiest renewable technologies to deploy, and can quickly make a significant contribution to the UK’s energy system.

“Through the build-out and operation of our UK portfolio of over 4.4GW of solar, our clean electricity can help even more businesses like Kerry Group to decarbonise for the future by sourcing clean green electricity for years to come.

“We’re delighted to be able to support the transition of businesses away from fossil fuel-sourced electricity and to be making a meaningful contribution to the UK’s net zero ambitions.”

 Juan Aguriano, Kerry’s global head of sustainability added: “Kerry intends to reduce our combined Scope 1 & 2 carbon emissions by 55% by 2030 and achieve Net Zero by 2050.

“PPAs represent a key pillar of Kerry’s renewable energy strategy to deliver on these commitments.

The agreements with RWE are Kerry’s first PPAs in the UK and represent approximately 50% of Kerry’s electricity volume used in the country. We look forward to supporting more projects like these in the future in Europe and around the world.”

Essen-headquartered RWE seeks to commission on average 450MWp of new solar and storage projects in Britain every year. It is committed to investing 8 billion euros every year this decade in support of its Growing Green strategy.

The company was the most successful solar developer in last year’s Allocation Round 5 for Contracts for Difference, securing agreements for six UK solar projects.

The post RWE signs first UK solar PPA, commits Notts & Northhants farms to Kerry Group appeared first on theenergyst.com.

Due to become operational this year, the grid-connected park is close to London’s M25 motorway.  It was co-developed and financed by IB Vogt and DIF Infrastructure VII.  Its combined capacity of 116MW will make Warley one of the UK’s largest co-located sites.

The deal represents one of the UK’s largest combined hybrid offtake and optimisation agreements. Over its ten year duration, EdF will manage the co-located assets in real time, making efficient use of the shared grid connection.

EdF’s roster of more than 1GW of renewable assets already generating, plus 5GW in construction or development, puts it at the head of UK low carbon generators. It is also the nation’s biggest buyer of renewable power from independent generators.

EdF’s commercial director for wholesale market service Stuart Fenner said: “We are very pleased that we have been chosen to deliver trading, optimisation and offtake services for one of the UK’s largest co-located solar and battery sites. This unique deal exemplifies the innovation needed to address our energy challenges, which will help to secure green energy for the future and deliver on our commitment to help Britain achieve net zero.”

The post EDF plugs in to market-leading PV & battery deal appeared first on theenergyst.com.

Ocean Winds is a 50:50 joint venture by Madrid-based developer EDP Renewables and retailer ENGIE. The offtake is enough to power a notional 650,000 UK homes annually.

Located in the Moray Firth off Scotland’s north east coast, the 882MW offshore farm is currently under construction, and anticipated to generate its first power in 2024.

The PPA deal rests on Ocean Winds speeding up the park’s construction. Moray West will support Amazon’s goal of powering all operations with 100% renewable energy by 2025, five years ahead of the company’s original target.

Paulo Almirante, ENGIE Senior Executive Vice-President Renewables & Energy Management, said: “This deal strengthens ENGIE’s leadership position for CPPAs, through which we have sold a substantial capacity of renewable electricity generated by its wind and solar assets.”

“This CPPA’s innovative character shows it is possible to create, together with Amazon, the conditions to achieve the UK objectives of renewables deployment and Net Zero economy.

ENGIE signed 19 ground-breaking deals last year, spanning five countries, covering over 1GW of clean energy capacity, bolstering ENGIE’s CPPA portfolio to 7.3GW.

Every year since 2021, Amazon’s investments in solar and wind have enthroned the company as Europe’s as well as Britain’s biggest corporate purchaser of renewable energy.

The multinational announced 39 new renewables projects across Europe last year, adding more than 1GW of dedicated low carbon capacity to the region’s grids.

Between 2014 and 2022, Amazon says its clean power investments in Britain alone amount to £285 million. They supported 600 local jobs in 2022 alone.

Lindsay McQuade, director of energy for Amazon Web Services covering Europe, said: “Projects like Moray West will play a critical role in decarbonising Amazon’s operations and the UK grid.”

“We are on track to meet our ambitious goal of powering our global operations with 100% renewable energy by 2025. In 2022, 90% of electricity consumed by Amazon was attributable to renewable energy sources”.

Bautista Rodriguez, CEO at the Ocean Winds joint venture, said: “I am proud that the collective efforts of the Moray West and Ocean Winds teams, working closely with ENGIE, helped secure this important deal with Amazon.

“The programme for delivery is ambitious but the project and sponsor boards have supported us to keep the project firmly on track.”

Moray West represents continued investment by Ocean Winds to deliver its 2025 targets of up to 7GW of projects in operation, or construction, and up to 10 GW under advanced development. The project, part of the company’s 6GW portfolio of secured offshore wind farms in the UK, is expected to inject up to £500 million in the local Scottish economy throughout its lifespan, and during construction phases it will create and support more than 1,000 jobs in Scotland, with 70 long-term operational roles. Local supply chains are prioritised, through a new operational team based in the coastal town of Buckie.

The post Amazon backs Moray West & Ocean Winds with 473MW PPA appeared first on theenergyst.com.

Renewable energy production is profoundly affected by the variation of weather conditions  a well-known fact. However, with the increasing amount of renewable assets being built, renewables start to flood the market in parallel – and impact energy market prices. The more wind farms, the more energy gathered in case of stormy weather, the more prices get pushed down. Both facts create uncertainties in long-term revenue streams.

The inherent unpredictability of weather-dependent energy generation presents a unique set of challenges for companies dealing with renewable energy. Therefore, renewable energy producers, buyers, and sellers of Product Purchase Agreements (PPAs), asset holders, and investors all face the difficulties of predicting the volume of power production, and at the same time, its impact on and revenue from market prices. Therefore, the price captured by selling renewable assets generation on the spot markets is itself very volatile.

A possible remedy: Power Quanto Indices, as a means for market participants to hedge against capture price risk (also known as Quality Factor risk). To create these indices, the European Power Exchange EPEX SPOT and Speedwell Climate Limited, a provider of weather-related data, came together in June 2022 to introduce a pioneering concept: weather-based power indices. This initiative was designed to address the natural uncertainties associated with renewable energy production – particularly those driven by variable weather conditions – and its impact on the spot prices.

The collaboration began with the launch of three distinct indices in Great Britain, starting with the Wind Index Suite. The geographical and technological scope was gradually expended and currently Wind Quanto indices are available for most of the European market areas (GB, Central-Western Europe and Nordics). Solar Quanto indices are available in four markets areas (Belgium, Germany, Great Britain, and the Netherlands), and more are to be released soon.

Renewable Quanto Indices serve several purposes:

• For renewable energy producers, as a mechanism to enhance revenue stability in the medium term.
• Meanwhile, buyers and sellers of PPAs will be able to make more informed decisions, secure long-term financing for their projects, and navigate market volatility with greater confidence.
• As for asset holders and investors, they can create more predictable financial models and support the ongoing development of renewable energy projects.

In essence, by using these indices as underlying, market participants can enter into risk-transfer contracts to hedge against potential revenue losses due to weather-related fluctuations. Quanto Indices aim to combine renewable energy generation, encompassing wind and solar power sources, with the dynamics of spot price fluctuations over varying time periods (months, quarters, or seasons). The result is an assessment of how weather-related variables impact energy markets and influence the revenues of market participants.

The market starts to pick up the tool as well. In October 2023, Statkraft, Europe’s largest renewable power generator, agreed a Quality Factor Index Swap relating to UK power, and the trade was transferred by Munich Re, a leading global provider of weather risk covers. The transaction represents a first-of-its-kind financial swap in the energy trading industry, using EPEX SPOT and Speedwell Climate new Quality Factor.

By reducing uncertainty and providing a tool to manage associated financial risk, Power Quanto Indices actively contribute to the growth and development of renewable energy projects. In an era where sustainability and clean energy are paramount, these indices offer: a solution to secure investments, to ensure more stable and predictable revenue streams, and ultimately to foster the expansion of renewable energy in the energy market.

The post Weather-Based Power Indices: Optimising renewable energy risk management in a changing climate appeared first on theenergyst.com.

The UK Business Climate Hub includes a free carbon calculator for enterprises, and new tools to help them measure and report on their emissions. Saving money by using less energy is included in the website.

It offers detailed advice on topics ranging from sourcing products from green suppliers, to reducing logistics-related emissions. Tips on the most cost-effective ways to instal solar panels and EV charging points are in the package.

Ministers assert that 90% of SMEs are keen to tackle climate change but find it difficult to know how or where to start.

SMEs going green often find the process good for business. Studies show 85% of consumers are more likely to buy from a firm with a reputation for sustainability, meaning going green can help grow the economy.

Graham Stuart MP, minister of state for energy security and Net Zero – pictured left above – said: “The UK has cut its emissions more than any other major economy in the world. More and more businesses are recognising the business benefits of reaching net zero and we’re determined to empower them to do so.

The new UK Business Climate Hub is a one-stop-shop for businesses. Whether it’s fitting a low-carbon heat pump, generating energy with solar panels, or reducing the emissions from shipping goods, the new support will ensure businesses can drive towards net zero.”

Sustainability strategist Laimonas Noreika, CEO of HeavyFinance added: “This hub will play a crucial role in enabling Britain’s businesses to take meaningful action against the climate change emergency.

“It is a step in the right direction and will help business owners across the country to develop long term sustainable strategies that will assist the UK in its journey towards Net Zero.”

Entrepreneur Steven Mooney, CEO, FundMyPitch added, “At a time when interest rates are surging and inflation remains stubbornly high, this new hub offers invaluable guidance to empower entrepreneurs to build a truly effective green strategy.

“The vast majority of company owners will always go the extra mile to build responsible, environmentally friendly businesses, but they also need access to finance and support to turn their dreams into reality.”

Helping employee switch from car commuting to ride-sharing, buses and cycling and paying less for company EVs. Securing business grants, green loans and financing for a retrofit, are considered as are emissions cutting from farming and land management, buying credible carbon offsets and reducing waste and recycling.

Access the UK Business Climate Hub here.

The post Hub, hub, hooray! Government offers SMEs tips to cut bills & carbon appeared first on theenergyst.com.

The FTSE 250 soft drinks business is partnering with Atrato Onsite Energy to source clean electricity, including from the developer’s new 28MWp solar farm in Northamptonshire.

Squeaky, based in Wardour Street in London’s adland, introduced the parties.  CEO Chris Bowden’s team claims to have been behind Europe’s first renewables PPA deal, signed as long ago as 2008.

Under this new 10-year deal, Atrato’s new solar farm on an old quarry site near Wellingborough will, once commissioned early next year, make power exclusively for Britvic.

Current output, for currant-based consumption

Rated at 28MWp, Wellingborough will have capacity to make 33.3 GWh of clean energy a year, the equivalent of powering 11,500 homes.

The juice that then flows – electrical, rather than culinary – will power Britvic’s UK plants, including factories in Beckton, East London and Leeds.  These can output 2,000 recyclable bottles per minute, across a portfolio of leading brands.

Last year 57% of Britvic’s UK energy came from renewable sources, up from 28% in 2018.

Via its Healthier People, Healthier Planet programme, the beverage combine – group sales of £1.62 billion in 2022, with net profits of £140 million –  says it is tackling its carbon footprint head on. Solar electricity, either made onsite or via exclusive PPAs, is one step in establishing a more sustainable supply chain.

Committed to Net Zero by 2050, Britvic says it leads the industry as the first UK soft drinks company to have a 1.5°C target verified by the Science Based Targets initiative.  Since 2017 it has cut direct carbon emissions by 34%.

Britvic is investing £4 million in a heat recovery system at the East London site. A new Corporate Power Purchase Agreement in Ireland will ensure Ballygowan, the water brand, is produced using 100% renewable electricity harnessed from Irish wind turbines.

Atrato will supply Britvic with solar electricity on a “pay as you generate” basis. Uniquely though, power will be delivered on a baseload basis, consistent with the consumption needs of the drinks bottler.

“Careful, man, there’s a beverage here”

Other than its 10 year duration, no commercial terms were disclosed for the deal. Atrato said it has enabled a full financing of the Wellingborough park.  Law firm Burges Salmon advised Atrato in relation to the deal.

In 19 months since its share float, Atrato has built a portfolio of 40 UK solar sites. Tesco, Marks & Spencer, Anglian Water, Nissan and Amazon feature among industrial clients seeking its low carbon electricity.

Britvic’s head of buying Matt Swindall commented: “This deal represents a significant milestone for Britvic as we continue to partner with home-grown renewable energy projects to power our business.

“The 10 year deal also establishes stability, enabling us to plan more efficiently over the coming years.

From Atrato, managing director Gurpreet Gujral responded:  “We are thrilled to enter this new corporate PPA with Britvic. Our highly innovative PPA structure provides Britvic with a consistent source of renewable energy that matches their electricity needs. This project exemplifies our commitment to providing long term and attractively priced clean energy to our clients. Following an award-winning IPO, Atrato has become the ‘go to’ corporate clean energy provider.”

Chris Bowden, managing director of Squeaky Clean Energy said: “Having pioneered the use of corporate PPAs in the UK it has become abundantly clear that new and innovative contracting structures are needed. We are incredibly proud to have scored another first with this unique arrangement”.

The post Drink in that Northants sunshine! Britvic quaffs 33.3 GWh, Tangos with PPA broker Squeaky appeared first on theenergyst.com.

The trio’s PPA, their second struck in twelve months, will fund the Greek-based developer’s construction of five consented farms from Dorset to Nottinghamshire.   Construction is due to be completed by early next year.

As offtaker, Centrica will sell a ‘significant’ proportion of their output to Vodafone, speeding the company towards its target of sourcing 44% of its power by 2025 from UK-based green sources. The remainder will be traded by the energy company.

Celebrating its customer’s underpinning of the new farms’ funding, Centrica chief executive Chris O’Shea, pictured, said: “The deal gives Vodafone UK access to clean, high quality and affordable renewable electricity for the next ten years, offering price certainty and improved energy security”.

Already in the UK 100% of the grid electricity which Vodafone uses is from certified renewable sources, the Centrica boss noted.

In May the trio signed a PPA by which Centrica would sell the phone company 109 GWh from three new solar farms in the Midlands, totalling 110 MWp in capacity.  The first is now generating, with the rest soon to follow.  Along with two onshore wind farms in Northamptonshire and Lincolnshire, Vodafone UK now has dedicated access to renewable power from 10 sites across the UK.

The supply deal was announced as industry body SolarEnergyUK confirmed today that no longer subsidised instals of rooftop solar PV, overwhelmingly on homes and all under 50kWp in potential, doubled in 2022 on 2021’s figures.

Confirming figures from technical standards overseer the MCS, the solar lobbyists said over 130,000 roofs received new solar arrays last year, almost equalling completions for the previous two years combined.

Last month’s fixing of 16,043 new systems under 50kWp potential was three times the total for January 2022, setting a new monthly record for volumes of subsidy-free installations.

“Solar is surely one of the fastest-growing sectors in the UK right now”, said the lobbyists’ CEO Chris Hewett. “The rapid increase in sales is great news for the economy, public pockets, Net Zero and of course for energy security too”,

But he warned that even the current pace of installation must double again for consumer-scale systems to match the government’s target set for all solar power in its Energy Security Strategy published in April.

Even that heightened target is “clearly achievable”, Hewett advised, since it would be less than levels achieved in 2011 and 2012, at the height of the Feed-in Tariff era.

The post Smart phoning: Vodafone dials into 5 solar farms, as domestic on-roof PV instals double appeared first on theenergyst.com.

Two PV parks in rural Leicestershire are together pumping out 54.4 GWh every year, the same demand as from 15,000 homes, having been sparked into life for the retailer’s sole  benefit by international developers Lightsource bp.

Headed by Ulsterman Nick Boyle, pictured, the developers have ceded ownership of the Streetfields and Northfield House completions, together rated at 50MWp, to an investment fund managed by green infrastructure financiers Schroders Greencoat.

Lightsource remains contracted for ops and management duties, a role it already performs for 179 MWp of Schroders’ solar kit. The bank owns 120 British solar farms.

Formal title transfer this week of the sparking up in December delivers on a multi-year power supply contract which H&M signed in 2021 with Lightsource.

Customised and tailored delivery of solar-sourced amps supports the retailer’s goal to be 100% reliant on renewables by 2030, and to slash its absolute scope 1, 2 and 3 emissions by 56% from a 2019 base before the same deadline.

Swede deal. For the Greta good?

Renewable power contracts can provide much needed price predictability for businesses to help meet sustainability goals, the parties point out.  Beside its shops, H&M facilities such as logistics centres and offices will benefit.

“Projects like these are a clear demonstration of how renewable energy partnerships between developers, investors and corporations can play a vital role in enabling the UK’s energy transition”, in the words of Lightsource bp’s EMEA boss Kareen Boutonnat.

”It is great to see the solar parks of Streetfields and Northfield House becoming a reality”, replied Ulrika Leverenz, H&M’s head of green investment.  

”Renewable energy plays a crucial role in our climate roadmap to reduce emissions and achieve net-zero by 2040”.

For Schroeders Greencoat, partner Lee Moscovitch said ““We are proud to be working with companies…which are seeking to dramatically accelerate the clean energy transition in the UK. ”

“As one of Europe’s leading renewables investors, Schroders Greencoat is actively engaged in the management and growth of the country’s renewable infrastructure”.

The post Fashion retailer H&M finds good (non-FiT) fit with Lightsource bp on two Midlands farms appeared first on theenergyst.com.

Every six months since the early 1990s, EY has presented to investment decision makers nations’ performance and allure as a home for investment in low carbon energy.  For the third year in a row America and China remain unchanged at the top of the consultants’ attractiveness league.

Germany powers onto EY’s RECAI podium on the strength of a drive launched at Easter by chancellor Olaf Scholz’s new green-red-yellow coalition. It brings forward by 15 years to 2035 the country’s planned freedom from brown coal – lignite – and gas.

As a waypoint on that journey, by 2030 Germany intends to have stripped 80% of carbon from its electricity generation.

Intended planning reforms in the UK, designed to cut developers’ waits for offshore wind permits from four years to one, win plaudits from EY’s analysts Ben Warren & Arnaud de Giovanni.

Britain’s maturing, increasingly transparent market for power purchase agreements also sees this country in an unchanged fourth place behind Spain, Germany and the US in a subsidiary, component ranking of  national attractiveness for direct sleeved supply.

Corporate PPA deals struck this year across the globe will fall short of last year’s volumes, the pair note, though will still beat 2020’s total.

“The market has shifted in favour of sellers, with high demand from corporates seeking to use PPAs as a long-term hedge against fluctuations in the wholesale power markets”, Warren & Giovanni judge. “However, uncertainty around government policy and rapidly changing cost profiles have left developers struggling to reach agreements on commercial terms.

While current market conditions have slowed deal-making, PPA fundamentals remain strong for further market expansion, they advise.

“The large gap between low long-term PPA prices and high short-term market prices gives corporates an early financial benefit, and developers a long-term monetary boost and flexibility, compared with a state subsidy in many markets”, the EY duo note.

Morocco, Portugal and Chile are among markets identified by EY as punching above their weight in fostering renewables.  Xlinks, the Essex-based £16 billion venture seeking to import Saharan sunshine & wind 3,500 kilometres into Devon as 8% of UK electricity consumption, has the African nation as its southern generating hub.

When countries’ RECAI weightings are adjusted against per capita GDP, Morocco emerges as the study’s most attractive jurisdiction.

‘Plethora of options’

Nine nations in EY’s RECAI top 20 are EU members.

Though dropping one place, France now aims by mid-century for 100 GW of solar and 40GW of marine wind.  Seeking to loosen nuclear’s expensive stranglehold, the country has also pledged 5Bn Euros to strip carbon out of heavy industry.

“The global transition from centralized grid networks to decentralized distributed energy systems is accelerating,” EY’s Ben Warren and YYY YYY write . From microgrids, small-scale renewables, and combined heat and power facilities, to distributed energy storage and controllable loads, a plethora of options is emerging.

Increasing pressure on markets to meet decarbonisation goals, plus nations’ desire for energy security, particularly in the wake of the war in Ukraine, are among key driving factors.

“A favourable climate for distributed energy resources has also emerged”, the report notes, “with the cost of technologies falling and regulatory support increasing, notably the tax benefits of the US Inflation Reduction Act and the European Commission’s REPowerEU plan”.

Read the full report here.

The post UK falls from EY’s podium of 40 most attractive nations for clean energy cash appeared first on theenergyst.com.

Speaking at the start of London Climate Action Week, Mayor Khan unveiled his energy sourcing plan, a step towards his goal of the capital reaching net-zero carbon by 2030.

Serving as mayor of the biggest conurbation in the international C40 Climate Leadership Group of green cities, Kahn also committed Britain’s capital to signing the Fossil-Fuel Non-Proliferation Treaty.

Drawing 1.6 TWh a year, – consumption equal to 12 per cent of London’s 420,000 homes – the Tube is thought to be the capital’s biggest single industrial consumer of electricity.

Running till 2030, Khan’s first clean power tender covers only 10 per of cent that required supply, specifying it must come from renewable sources and new build assets. But the Mayor believes other clean PPAs must follow.

With passenger levels still 25% below pre-Covid levels, Transport for London is financially stretched.

Oil and gas sourcing 86% of world carbon emissions since 2012

In February Khan welcomed a £200 million payment from Whitehall to keep the bus and train network running for four months.   The Tube is currently subject to periodic strikes in sympathy with Britain’s rail workers.

“When it comes to tackling air pollution and the climate emergency, I’m determined to ensure that London continues to take bold action,” said Khan.

“As many national governments around world dither, cities have a responsibility to act and to show what’s possible. We are the doers, not the delayers”.

The Fossil-Fuel Non-Proliferation Treaty was initiated in 2015 by leaders of flood-threatened Pacific islands. Endorsed by the Dalai Lama and Nobel laureates, the treaty seeks to prevent all new exploration of oil and gas resources.

Signing the accord on behalf of Londoners, Khan pointed to latest reports from the UN’s  Intergovernmental Panel on Climate Change, stating coal, oil and gas are responsible for 86 per cent of all CO2 emissions in the past decade. The world is on track to produce more than twice as much coal, oil and gas by 2030.

The Mayor has taken steps to pull the pension pots of 32 boroughs, TFL workers and City Hall employees out of fossil fuel companies, urging the arms-length London Pensions Fund Authority (LPFA) shun investments in the hydrocarbon sector.

With New York Mayor Bill de Blasio, Khan chairs the C40 Divestment/Investment network. It includes 18 C40 cities,  with pension funds worth over $400 billion now committed to divestment.

The post London’s Tube seeks first renewables-only power supply contract appeared first on theenergyst.com.

By Mark Rose, Sales & Marketing Director

Welcome to the second in a series of posts from Rob Kerr – Customer Service Director, Anton Roberts – Commercial Director and myself on some of the most pressing issues in the energy industry today – and how we’re responding.

Please note that any opinions here our own comments, and not official positions of TotalEnergies Gas & Power. I’ll take a brief look at energy markets, but the main focus will be Net Zero – what TotalEnergies are doing to work towards our goals and the options available to you to help reduce emissions.

What is currently going on in the market?

It is safe to say that events so far in 2022 have been truly shocking, and our thoughts are with those directly affected in Ukraine, and their families.

These events have also further impacted a turbulent UK energy market. Since last year the spiralling cost of energy has dominated the news, alongside a wider cost of living crisis with inflation being at record levels. In the business energy market, we’ve seen increasing costs for end users, although the implementation of MOD 797 earlier this year means the non-domestic sector will not share the costs of future gas supplier failure in the domestic market. TotalEnergies Gas & Power played an active role in this change being made, which should save more than £100m for the non-domestic market.

Increasing wholesale energy prices have been driven by a lack of storage and JKM (Japan Korea Marker Benchmark LNG prices), exacerbated by the events in Ukraine, with gas prices reaching a high of almost 520p/therm in March and electricity prices also spiking to a high of nearly £500 per MWh.

The rise in prices means that energy costs will now be at the forefront of business customers’ minds as they becomes an even greater proportion of expenditure, particularly when fixed contracts end or for those on flexible contracts. This will be exacerbated by rises in non-commodity costs because of government investment in renewable energy and supplier failure, and the impacts of inflation.

How will Net Zero be affected by current market challenges?

With the current wholesale price crisis affecting the industry and end users, and concerns over security of supply, it is easy to think that Net Zero will start to play second fiddle. But in some ways, it is more important than ever.

• The window of opportunity is limited – All the science says that averting a climate disaster means acting now, and not delaying decisions. The UK government set a target of Net Zero by 2050, but there are also some equally challenging targets in the shorter term, not least a 50% reduction on 1990 levels by 2025. The world needs to act now if it stands a chance of keeping climate change to within 1.5 degrees Celsius (on 1990 levels).
• Improve security of supply for UK PLC – Recent events have highlighted the risks of a reliance on energy supplies from unstable sources. An investment in low carbon generation (nuclear, wind, solar) would reduce that reliance, although the transition will clearly take time and investment given the lead times on development. The government has recently launched a new energy strategy with nuclear and renewables at the heart of it.
• Measures will be more financially attractive than ever – Over the last couple of years there has been a strong trend for large scale solar and wind projects to become more cost effective, and the International Renewable Energy Agency said that in 2020 almost two thirds of the wind and solar projects built globally were able to generate cheaper electricity than the world’s cheapest coal plants. The recent wholesale price rises will also make smaller scale on-site generation more attractive in avoiding the high prices and fluctuations, as well as building green credentials for customers. Payback times on these installations has fallen significantly given a fall in costs and the current electricity prices.

What is TotalEnergies doing?

At TotalEnergies we have a commitment to be a world-class player in the energy transition, and want to do this by producing and selling energy that is affordable, cleaner, reliable and accessible to the greatest number of people globally. We’ve set some ambitious targets for 2030 both on direct and indirect emissions with the aim of being carbon neutral by 2050.

Renewables are at the heart of this target, with an aim to have 100 GW of capacity by 2030. This commitment is reflected in our investment in offshore wind in the UK, with stakes in over 5 GW of capacity including the ScotWind project. This will be enough to power over 3 million homes when they are all operational.

Within TotalEnergies Gas & Power it is a priority to help customers on their journey to net zero. We offer a range or renewable power and gas products across small and large business and the public sector. We also offer carbon offsetting, and access to tools to understand the efficiency of sites. We’re taking steps internally to work towards net zero, procuring renewable energy at our sites and looking to reduce the emissions of our fleet over the coming year.

What options are available for customers to help reduce emissions?

There are a range of options available to customers, each with different pros and cons – although from a cost perspective there aren’t any clear winners due to the market price of REGOs rising considerably recently.

On-site generation – If a business has a site with the space for on-site generation such as solar this could be an attractive option. This can provide a visible statement of green credentials, and also some protection against market volatility. However, most businesses will not have the space for this or own the property, and if it is feasible will either require a large upfront CAPEX investment or the commitment to a long term PPA. It will also cause disruption at the site while it is in the project stage. Given recent wholesale price rises the case for this investment is looking better than it has previously.

Corporate PPA – These are long term contracts under which the end user (e.g. business or Local Authority) agrees to purchase electricity directly from an energy generator. A licensed supplier also needs to be a party in the contract to make this agreement work. The advantages are that the end user can choose what they want the specific renewable source to be. On the other hand, it can be difficult to find a generation source that meets requirements, and the process to structure the PPA can be time consuming and complex, with involvement from multiple parties.

Traceable renewable products – These types of products are becoming more popular where the supplier has both the power or the gas and the renewables certificates (REGOs or RGGOs) to go with it at the same time. The supplier will then match those specific certificates to your supply. This provides the assurance of knowing specifically where the power has come from, without the complexity of a Corporate PPA. It also opens up the opportunity to request certain generation types or locations (e.g. a Local Authority that wants all it’s power sourced from a specific region).

REGO/RGGO backed products – When power or gas is produced from a renewable source, a REGO (Renewable Energy Guarantee of Origin) or RGGO (Renewable Gas Guarantee of Origin) is also created. This can then be purchased by suppliers and be allocated, sometimes separately from the power itself. From this you can effectively match your consumption to generation from a renewable source –  a relatively simple and common method of signing up to renewable power, but you won’t always be able to match it up to the specific generation source.

Carbon Offsetting – Carbon offsetting can be an alternative for customers in circumstances when the emissions can’t be eliminated. For example green gas certificates (RGGOs) have limited availability and are very expensive, so other options may need to be considered. There are carbon offsetting certificates that can be purchased from a variety of projects in the UK and abroad, and these can be matched to a business’s emissions to net off the environmental impact.

We are heading into a critical time in the shaping of an energy policy that can provide us with security of supply, while staying on the journey towards Net Zero.

https://business.totalenergies.uk/carbon-net-zero to find out more.

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