Utility Week

4 | 8TH - 14TH FEBRUARY 2019 | UTILITY WEEK Seven days... BP more than doubles profits for 2018 Higher oil and gas production gave BP a surge in fourth-quarter earnings from a year ago, helping the energy major more than double its 2018 profits. The results came ahead of expectations, sending BP's share price up 3.5 per cent, with the company saying it brought more new higher-margin projects online and ran its refineries more effectively. "If the kit is running well . . . we are able to capture those margins," said Brian Gilvary, chief financial officer. Underlying replace- ment cost profits, BP's definition of net income and the measure tracked most closely by analysts, was $3.5 billion in the three months to 31 December. Financial Times, 5 February Tesla to buy Maxwell battery-maker firm Electric car maker Tesla is to bolster its energy storage capabilities with a deal to buy US battery-maker Maxwell Technologies. The deal values San Diego-based Maxwell at $218 million and will see Tesla gain access to the company's ultraca- pacitors, which can rapidly deliver surges of energy. Tesla chief execu- tive Elon Musk has previously said he is a "big fan" of ultra capacitor technology, which can store between 10 and 100 times more energy than regular capacitors. The Telegraph, 4 February A third of Himalayan ice cap doomed At least a third of the huge ice fields in Asia's towering mountain chain are doomed to melt because of climate change, according to a report by International Centre for Integrated Mountain Development. Even if carbon emissions are cut dramatically and rapidly enough to limit global warming to 1.5C, 36 per cent of the glaciers will have gone by 2100. The Guardian, 4 February National media Swansea Bay tidal lagoon backers revive plans T he company behind the Swansea Bay tidal lagoon proposals rejected by the government last year have returned to market with revised proposals that would not require subsidy. The government announced last summer that it would not support Tidal Lagoon Power's (TLP) £1.2 billion project because it was too expensive. The proposal was to gener- ate electricity using the tide to power turbines in a concrete wall. TLP's revised plans include the installation of floating solar panels in the artificial lagoon to increase the plant's annual output by more than a third to 770GWh. The company said it is now exploring financing the project though power purchase agree- ments (PPAs). Several major companies are interested in buying electricity from the lagoon, according to a report in The Guardian. They include commercial property company Land Securities, Cardiff airport and housebuilder Berkeley Group. Chris Nutt, business develop- ment manager at TLP, told Utility Week the company is in dialogue with businesses from "key sectors" across Wales and the UK. And he confirmed that TLP plans to build up a "pipeline" of energy customers to enable a final investment decision to be made by the end of the financial year so that construction can start shortly a"erwards. He said: "The revised model gives companies and local authorities the opportunity to make tidal power happen by buying electricity direct from the lagoon. The combined effects of low cost of capital and long- term off-take agreements with attractive pricing mean that over the operating life of the lagoon, buyers can hedge against future shortfalls, be part of this iconic landmark and a low-carbon change to our infrastructure – something that their customers care deeply about." The Swansea Bay project has been envisaged as the first of a series to be built around the Welsh coast, which would har- ness tidal power. DB "I'm a bit like a proud dad: we've got a lovely baby and we've just been told it's a bit ugly, so I am disappointed about that" Steve Robertson, chief executive of Thames Water, as the water company was placed in the "significant scrutiny" category in Ofwat's initial assessment of PR19 business plans (see analysis, p12). STORY BY NUMBERS Stubborn non-switchers Research com- missioned by auto- switching service Weflip has found 32 per cent of people have not switched energy supplier in five years. 1/5 said they would probably be able to get a better deal but "could not be bothered" to switch. 43% said they were happy to actively manage their energy bills to ensure they always get a good deal. 19% said they have no idea what tariff they are on. 40% of those who had not switched in the past five years said it was "too much hassle". 9% feared their energy supply would be cut off during the switching process.

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