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Weekly Roundups

The Week in Energy: Opening the Path to a Diverse Energy Mix.

By Dalia Maria de León | Fri, 12/20/2019 - 12:08

Iberdrola keeps strengthening its presence in the Mexican market, CENAGAS opens a bidding for natural gas supply and Jalisco commits to its environmental agenda. Meanwhile, Shell keeps increasing its investments in renewable energy and UK`s renewable electricity production surpassed gas power for the first time.

 

Mexico

Iberdrola Signed a 17-year Electricity Supply Contract With Deacero

The contract considers the delivery of 165MW from the El Carmen combined cycle power plant in the state of Nuevo Leon, with an option to extend the contract for six more years. The agreement follows Iberdrola’s current commercial strategy which is to focus on industrial groups. Iberdrola México has already an installed capacity of 3.1GW in Nuevo Leon, distributed in four combined cycle plants and one cogeneration central.

In May 2019, Iberdrola announced an investment of more than US$5 billion in power plants during the current government administration.

 

CENAGAS Announced Bidding for Natural Gas Supply

Mexico’s national pipeline operator (CENAGAS) is calling on natural gas suppliers to present their proposals with the understanding that supply will be used solely when the operational conditions of Sistrangas require it.

For the natural gas to be acquired through a competitive process that allows obtaining the best prices and economic conditions, CENAGAS opened a call for entries, which will be open from Dec. 18, 2019 to Jan. 31, 2020. Interested companies must provide proof of all the permits, including upstream capacity and prices, to be considered for valuation.

 

Jalisco’s Thermoelectric Power Plant Construction Cancelled

Governor of Jalisco Enrique Alfaro announced that the thermoelectric plant project is cancelled because this kind of energy generation is based on fossil sources, which goes against the state’s environmental agenda and the commitments assumed in the Paris Agreement, as well as the Alliance of Mexican Governors for Climate’s objectives.

Enrique Alfaro said Jalisco will invest in renewable energy projects through agreements with private investors. Mexico Climate and Energy Platform supported this decision saying that opting for green energy projects implies lower costs for society. 

 

International

Shell Strikes Deal With Australian Solar Energy Developer

Shell keeps strengthening its presence in the Australian energy market. The company acquired 49 percent of the Australian utility-scale solar developer ESCO Pacific just few weeks after the oil giant bought ERM Energy. This deal will allow Shell to supply more and cleaner energy to its utility, commercial and industrial customers in Australia. ESCO Pacific has 500MW of installed capacity and another 350MW In photovoltaic parks under construction.

 In March this year, Shell unveiled plans to become the world's largest energy producer in 15 years and is already committed to invest US$2 billion a year in renewable energy.

 

UK Renewables Surpass Gas

In 3Q19, electricity generated from renewables surpassed gas power generation for the first time in UK. A record 38.9 percent was generated by wind, solar, hydro and other renewable sources from July to September. The Business and Energy Department also revealed that coal generated just 1 percent of the power in this quarter.

Low-carbon electricity, which includes renewables and nuclear, reached 57.3 percent of the UK’s energy mix, despite lower output from nuclear reactors, as a result of strong levels of generation from other energy resources such as wind. The Committee on Climate Change wrote to Boris Johnson after his election victory, asking him to make a manifesto pledge to deliver 40GW from offshore wind by 2030.

 

EDP Renewables and ConnectGen Acquired First Solar’ Energy Projects 

EDF Renewables and ConnectGen acquired three solar energy projects which together have a 278MW capacity and are located in Arizona, California and Nevada, respectively. The projects are expected to be completed by the end of this year and will be operated by First Solar.

EDF Renewables launched its first two photovoltaic parks in California in January 2015 and subsequently added three more in South Carolina. On the other hand, ConnectGen develops renewable energy production and storage projects throughout North America.

 

Dalia Maria de León Dalia Maria de León Journalist & Industry Analyst