Enel Green Power signs 220MW PPAs in South Africa

Enel Green Power (EGP), a subsidiary of the Enel Group, an Italian energy firm, has signed 220MW of power purchase agreements (PPAs) with Air Liquide and Sasol in South Africa.

From 2025, EGP will supply renewable energy to Sasol’s Secunda site, where Air Liquide operates the world’s largest oxygen production facility. The clean energy will be delivered from EGP’s two wind farms in the Eastern Cape, which have the combined capacity to generate more than 800GWh of clean energy a year.

The PPAs are the result of a joint request for proposal initiated by Air Liquide and Sasol in April 2021, under which they agreed to purchase 900MW of renewable energy. Each of the two wind projects will be implemented through special purpose vehicles, which will be local majority-owned.

EGP is operating in the region through its wholly owned subsidiary, Enel Green Power South Africa, which currently has more than 1.2GW of renewable energy capacity in South Africa. The agreements are part of tailored renewable energy solutions that EGP has offered to commercial and industrial customers to help them achieve their sustainability goals.

Enel Green Power South Africa country manager Manuele Battisti said: “We are proud to partner with Sasol and Air Liquide on their sustainability journey.

“The deal will significantly contribute to the decarbonisation of the Secunda site, reducing carbon dioxide emissions that arise from the oxygen production process by between 30% to 40% by 2031.

Innergex to acquire 60MW solar portfolio in Ontario, Canada

Canadian hydroelectric power company Innergex Renewable Energy has agreed to acquire the Sault Ste Marie solar portfolio in Canada from Fengate Asset Management.

Located in north-western Ontario, the 60MW solar portfolio includes the Sault Ste Marie I, II, and III facilities. It was sold for a consideration of $57.5m (C$50.2m), along with the assumption of $126.8m (C$169.5m) of existing debt.

Commissioned in 2010 and 2011, the solar assets have long-term renewable energy standard offer program power purchase agreements (PPAs) in place with the independent electricity system operator. They are expected to generate annual revenues of around $24.6m (C$33.1m) this year.

Through this deal, Innergex aims to expand its presence in the Sault Ste Marie region. The deal is expected to close in the first quarter of this year if it meets customary closing conditions, including certain regulatory approvals in Canada and key third-party consents. National Bank Financial served as the financial advisor to Innergex for the deal.

Innergex president and CEO Michel Letellier said: “This is our first acquisition in Canada since 2018, and we are excited to add this collection of high-performing, fully contracted solar assets to our portfolio for additional and reliable Canadian dollar cash flows.

“The portfolio adds to our geographical diversification and improves our asset mix by adding 60MW of solar capacity to our existing fleet.”

National Grid to pay UK customers to use less electricity

The National Grid, the UK’s transmission systems operator, said it would compensate UK consumers for using less electricity on 23 January. The group announced that customers will receive incentives if they agree to use less electricity during peak demand hours under a new Demand Flexibility Service (DFS) programme.

The service was tested before on a smaller scale, with customers of just one supplier. A total of 26 energy suppliers have announced support for the scheme, including Octopus Energy and France’s EDF. However, the energy company has requested three coal-powered generators as a backup to tackle harsh winter temperatures.

The plan enables homeowners who use up-to-date smart metres and have signed up for the scheme through their provider to receive discounts if they reduce their power use by turning off energy-intensive items at certain times.

According to reports, the plan measures consumption to a customer’s average demand and pays $3.7 (£3) for every kilowatt-hour saved. British news organisation Sky News reported it could save homes up to $123.9 (£100) in winter. The scheme will end in March.

British newspaper the Telegraph reported that the National Grid launched the DFS service last year in response to concerns about power supply this winter. The Russian invasion of Ukraine and outages on France’s nuclear fleet triggered gas markets and power supply disruptions.

A spokesman for the National Grid said: “Our forecasts show electricity supply margins are expected to be tighter than normal on Monday [23 January] evening. This does not mean electricity supplies are at risk, and people should not be worried. These are precautionary measures to maintain the buffer of spare capacity we need.”

GE Gas Power and IHI to develop zero-emission gas turbines

GE Gas Power has signed a memorandum of understanding (MoU) with Japanese engineering firm IHI to develop ammonia combustion technologies.

The partners will use these technologies in gas turbines to generate electricity with reduced or near-zero carbon emissions. The agreement follows an MoU signed by the companies in June 2021, under which they agreed to carry out an economic assessment of the use of ammonia as a carbon-free fuel for existing and new gas turbines.

Under their latest MoU, the two firms will outline a roadmap to develop gas turbine technologies by the end of this decade. They will focus on GE’s 6F.03, 7F and 9F gas turbines and aim to operate them safely using 100% ammonia.

GE and IHI will also explore the possibility of using this technology for more gas turbines in future. Last month, GE Gas Power secured a contract to build a gas-fired power plant in Dublin, Ireland, in partnership with Greek industrial firm Mytilineos.

IHI Corporation president Hiroshi Ide said: “IHI continues to develop businesses across the entire fuel ammonia value chain, from production to transport, storage and utilisation.

“Through this collaboration with GE, we will focus our efforts on satisfying domestic and overseas demand for large-scale ammonia gas turbines, stimulating further demand for fuel ammonia and expanding the fuel ammonia value chain to rapidly realise a carbon-neutral society.”

Statkraft and CIP to develop offshore wind capacity in Ireland

Norwegian renewable energy producer Statkraft has signed a deal with Copenhagen Infrastructure Partners’ (CIP) Copenhagen Infrastructure IV K/S (CI IV) fund to build 2.2GW of offshore wind capacity in Ireland.

The projects will be developed in three phases at the North Irish Sea Array (Nisa) and the Bore Array. They will require a total investment of more than $4.3bn (€4bn) from Statkraft and CIP by 2030.  Under the terms of the agreement, CIP will own a 50% stake in Statkraft’s existing offshore wind portfolio in Ireland.

The NISA area is proposed at sites offshore from Dublin, Louth and Meath counties, while the Bore Array is planned to be built in the Celtic Sea. Statkraft’s partnership with CIP is part of its efforts to play an industrial role in offshore energy in the North Sea and Ireland.

In September last year, Statkraft signed a nine-year power purchase agreement with materials technology company Umicore.

CIP partner Nischal Agarwal said: “We are very pleased to be entering the Irish offshore market and look forward to developing these exciting projects together with Statkraft.

“In combining CIP’s industrial background and international experience within offshore wind with Statkraft’s experience of Irish renewables, the partnership will enable the provision of renewable power to Irish homes and businesses and contribute to reaching the government’s ambitious decarbonisation targets.”

UK government sets out plan for smart electric vehicle charging

The UK Government has published plans to improve and expand the country’s smart charging capabilities. The government, in collaboration with energy regulator Ofgem,has  released its Electric Vehicle Smart Charging Action Plan, which outlines ways to make it the preferred mode of long-duration charging by 2025.

Smart charging, according to the statement, uses energy consumption data to charge vehicles using only the cheapest power available. It can also allow motorists to power their houses with electricity stored in their electric vehicles, and sell it back to the grid.

The UK Government has also announced $19.7m (£16m) in funding from its Net Zero Innovation Portfolio for smart charging devices. It includes a “smart street light” that would allow vehicles to access smart charging on the street. The fund would also connect residential appliances ranging from heat pumps to electric car charge stations and batteries into a smarter energy system.

The plan also includes a public awareness campaign concerning the benefits of smart charging. It will also help to ensure the implementation of consumer service standards and the security and compatibility of private charge points with the newest energy advances.

UK energy and climate minister Graham Stuart said: “Today’s plan sets out how we will work with Ofgem and the industry to kickstart the market for smart charging, which we are backing up with £16 million in innovation funding.”

Ørsted applies to build 15GW of offshore capacity in Sweden

Danish energy company Ørsted has filed an application to build 15GW of new offshore wind capacity in Sweden, Reuters has reported.

The company plans to develop the capacity around the southern tip of Sweden and the Gulf of Bothnia in the north. The proposed capacity could be delivered over the next ten years if it is approved, according to the report.

With the new capacity, Ørsted aims to help reduce power prices and drive the development of new green industries. The latest plan is in addition to Ørsted’s standing plan for 3GW of renewable energy capacity in Sweden.

The new application will increase the company’s portfolio in the country to 18GW, which is enough to cover more than half of Sweden’s total power consumption. Ørsted’s existing projects in the country include the 1.5GW Skaane Offshore Wind farm, which is located on the southern coast and could become operational by 2029.

The firm’s goal to build more offshore wind capacity in the region coincides with grid build-out plans by Swedish grid operator Svenska kraftnaet, which is engaged in expanding Sweden’s transmission network to the country’s maritime territory.

Reuters noted that Sweden currently only has 0.2GW of installed offshore wind capacity, having not built any wind farms since 2013. Lobby group Wind Europe said the country has instead focused on onshore project development.

Ørsted Sweden offshore wind projects head Jesper Kuhn Olesen said: “Sweden needs all the electricity production it can get, and offshore wind is clearly the fastest way to get the volumes needed to reduce electricity prices.”

Enfinity Global acquires 400MW solar project portfolio in US

Spanish renewable energy company Enfinity Global has acquired a 400MW utility-scale solar portfolio in the US from Capital Dynamics.

Originally announced in September, the acquisition includes 28 operational solar power plants located across California, North Carolina and Idaho.

The portfolio has the capacity to generate 1,175GWh of clean energy a year, which is enough to power up to 64,000 homes, while displacing 508,000t of carbon emissions annually. It also has long-term power purchase agreements in place with investment-grade utility off-takers.

Funds managed by AB CarVal and Nomura served as co-financing partners to Enfinity Global for the deal. The transaction was also funded by other lenders, including Bayerische Landesbank, New York Branch, Commonwealth Bank of Australia, Fifth Third Bank, National Association and Zions Bancorporation.

Founded in 2018, Enfinity Global develops, finances, builds, operates and owns renewable energy assets worldwide.

The company currently has more than 7GW of capacity in operation and development, with offices in the US, Asia and Europe. Last February, it acquired a 250MW solar project portfolio in Japan for an enterprise value of $1bn.

Enfinity Global CEO Carlos Domenech said: “We are thankful for the opportunity to work with Capital Dynamics with the support of our investment partners.

“The US alone invested over $100bn in renewable energy in 2021. To succeed in the energy transition, sound investments need to be aligned to capital in scale.”