Utility Week

UTILITY WEEK | 22ND - 28TH JUNE 2018 | 13 This week Pension fund boost for Swansea lagoon Largest local authority pension fund in Wales joins Welsh government in backing tidal scheme Wales' biggest pension fund has thrown its weight behind the beleaguered Swansea Bay tidal lagoon scheme as ministers continue to weigh up whether to back the £1.3 billion project. The Wales Pension Partner- ship (WPP), the pooled retire- ment investment fund for the principality's local authorities, has endorsed Tidal Lagoon Power's pathfinding project. Councillor Mark Norris, WPP chair, said: "The Swansea Bay tidal lagoon offers WPP a rare opportunity to invest in a significant infrastructure project right on our own doorstep… Our pensioners would benefit from the stable, consistent returns that the project offers. Of course, as Swansea is a pathfinder project, it could be the first of other investment opportunities in Wales." Swansea council leader Rob Stewart said: "Pension fund managers recognise the importance of investing for the long term and they also recognise that pension funds need to look carefully at the impact of what they do." The Welsh government revealed earlier this month that it has offered to invest £200 million in the project. Wales first minister Carwyn Jones has claimed that the cash injection would cut the cost of any potential CfD (contract for difference) for the project to £92.50, the same figure awarded to the Hinkley C nuclear plant. The Swansea Bay City Region partnership has also written to the Business, Energy and Industrial Strategy department to establish if the decision on whether to approve the project is purely taking into account whether it will increase electricity prices. DB WATER Gove wants £5bn for environment Water companies must go fur- ther to help deliver a £5 billion investment in the natural envi- ronment by 2025, environment secretary Michael Gove has told the industry. The Environment Agency set out the ambitious plans in the Water Industry National Envi- ronment Programme, intended to help tackle some of the big- gest challenges facing the water environment. Gove said: "I want water companies to invest in the long- term future of our environment. It is right that the Environment Agency is challenging water companies to go further." Water companies, the state- ment added, have "a duty to protect and enhance the natural water environment" and the gov- ernment expects them to meet their obligations by 2025. ENERGY Macquarie green loans total £500m Macquarie is offering £500 mil- lion of green financing to renew- able energy, energy efficiency and other environmentally- friendly projects, as part of a new £2 billion loan facility. The scheme is the first to adopt the green loan principles published by the Asia Pacific Loan Market Association in March. The guidelines are based on a similar blueprint to the widely adopted green bond prin- ciples set by the International Capital Markets Association. To access the loans, projects must provide "clear green ben- efits". Macquarie said it has seen "strong" interest from global financial institutions, particu- larly those in Asia, in providing financing for such projects. WATER NI Water brings sewers up to date Northern Ireland Water (NI Water) is working on a £5 mil- lion project to improve its sewer- age infrastructure and reduce the risk of flooding in Belfast. Some sewers in the Ormeau Avenue, Bruce Street and Sandy Row areas, which date back to the early 1900s, are in "very poor condition". The upgrade will reduce pollution and improve water quality in the River Lagan. "Work is progressing well at the new wastewater pumping station site on Hardcastle Street and phase one of the pipe-laying is complete on Adelaide Street, with work under way on Linen- hall Street," said the company. It expects work on Linenhall Street to be completed by the end of August. Further pipe-lay- ing works are scheduled to take place on the Dublin Road from mid-July until the end of August. Swansea Bay scheme will cost £1.3bn Stock watch 16 14 12 10 8 6 4 16 14 12 10 8 6 4 EUROPEAN CARBON PRICE, ONE YEAR 2014 2015 2016 2017 2018 EUROPEAN CARBON PRICE, FIVE YEARS The European carbon price has dipped in recent weeks aer peaking at about €16 per tonne at the end of May – its highest level in more than half a decade. The price has more than tripled over the past 12 months as a result of the passage of reforms designed to end a long-running glut of EU Emissions Trading System allowances. Jul 17 Sep 17 Nov 17 Jan 18 May 18 Mar 18 Finance & Investment

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