Utility Week

4 | 12TH - 18TH OCTOBER 2018 | UTILITY WEEK Seven days... 'One trillion watts of clean energy by 2023' The world could install more than a trillion watts of renewable power over the next five years, more than the entire current generation capac- ity of the European Union. The International Energy Agency's latest annual report on renewables forecasts as much as an extra 1.3 terawatts of clean energy will be installed by 2023 under one scenario. Even in its more conservative central forecast, the agency predicts that global renew- able energy capacity will grow by 1 terawatt, driven by a boom in solar installations and more accommo- dating government policy. Bloomberg, 8 October Rain in Australia fails to break the drought Some parched New South Wales towns have received more rain in 24 hours than they have all year but it's not enough to break the drought that's gripped the state for months. Western regions received signifi- cant falls last week generated by a trough that was set to cross central NSW before moving into the Hunter Valley, the Bureau of Meteorology said. "It's going to give some brief respite but unfortunately we need a lot more," bureau meteorologist Simon Louis told reporters. "These aren't the sort of rainfall totals that will break the drought." The Guardian, 4 October Anti-coal protesters celebrate in Germany Thousands of anti-coal demonstra- tors descended on Germany's Ham- bach forest on Saturday to celebrate a court victory that suspended an energy company's planned razing of the woodland to expand a giant opencast mine. The ancient forest near Cologne has been occupied by activists for the past six years and has become a symbol of resistance against coal energy in Germany. The Guardian, 6 October STORY BY NUMBERS National media Eon UK chief: it's critical Ofgem gets price cap right T he chief executive of Eon UK, Michael Lewis (pic- tured), has warned that the incoming energy price cap could have "negative effects" on cus- tomers unless regulator Ofgem properly factors in operational and wholesale costs and allows sufficient "headroom". Speaking at Utility Week Con- gress in Birmingham on Tues- day (9 October), Lewis warned that market intervention could reduce customer engagement and "ultimately be counterpro- ductive". The price cap comes into effect at the end of this year and Lewis said Ofgem must ensure it is "workable and doesn't have negative effects". He said three issues must be resolved to avoid the risk of "confusing customers and harm- ing low-carbon investment": wholesale costs, operational costs and headroom. One of the areas of concern is that the revised February to July observation period, used as a basis for setting the cap, misses wholesale price rises in August and September. He said this could mean prices rising shortly aer the cap was introduced. "That is going to have a very negative impact on the customer experience," he said. "It is really important we don't get a short-term reduction that is reversed very quickly, creating a negative impression." When it came to operating costs and efficiency, he said "there are different costs to serve depending on which customers you have", and some suppliers may be unable to hit the bench- mark Ofgem has put in place. "In our view that is not in line with what parliament passed in their bill," he said. Lewis also urged Ofgem to take another look at the headroom it allowed, to ensure it was sufficient to encour- age competition. As it stands, Ofgem has set the headroom at about one-third of the level proposed by the Competition and Markets Authority. He conceded that Eon had been opposed to the price cap "since the beginning", but said the company acknowledged that "parliament had spoken". It was now "critical" they get it right. AJ Foresight Solar Fund buys 11 projects Foresight Solar Fund has agreed to buy 11 solar farms, taking its total capacity to 869MW across 54 sites. 80MW Combined capacity of the 11 solar farms. £34m Value of the deal. 54m Foresight will issue 54 million shares to finance the acquisitions. The assets will be bought from funds managed by the Foresight Group. 114MW Solar capacity acquired in August for £47 million. No 1 When the deals are completed, Foresight Solar Fund will occupy the top spot among UK-listed solar investors with a total capacity of 869MW across 54 sites. "CCS is a scarce resource – you need particular geographical characteristics" Adeline Duterque, head of Engie's strategy department, suggests carbon capture and storage should be used sparingly, and only to decarbonise sectors where there is no alternative.

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