Month: February 2023

               China-based Trina Solar has said a 100MW fishery photovoltaic project in the country using its modules proved to generate power with high performance. The modules, with high energy yield and high reliability, can withstand harsh maritime environments and deliver great economic value to customers, the company said.  This project, installed over fish ponds in Taishan, Guangdong, China, continued to be used for fish and shrimp breeding after the system was connected to the grid. However, the climate in the marine mudflat location places particularly tough demands for modules’ safety and reliability, such as potential induced degradation, corrosion of electrical equipment, tougher installation, construction, Trina said.  However, solar modules installed above the water can shade the fish pond, reduce the water temperature, cut evaporation and effectively block strong sunlight, which significantly reduces the incidence of fish dying as a result of high water temperatures, it added. 

Credits: renews.biz/ [Image: Trina Solar]

               The levelised costs of electricity (LCOE) for utility solar and onshore wind in Asia Pacific rose 16% and 12% respectively since 2020, as equipment, construction costs and interest rates rose in the region, according to Wood Mackenzie. The trend is expected to reverse in 2023, but volatility risks including geopolitical tensions, trade policy and financing remain according to the analysis. The average cost of utility solar power has gone up from US$78 per MWh (€72.5) in 2020 to US$91 per MWh in 2022. Onshore wind follows a similar trend, rising from US$93 per MWh in 2020 to US$104 per MWh last year. South Korea saw the highest cost inflation between 2020 and 2022, while China avoided cost increases. Wood Mackenzie research director Alex Whitworth said: “China has been insulated from cost inflation trends, gaining competitiveness against other markets due to massive scale, depth of local supply chain, and increasing technology dominance. “Offshore wind in China is now competitive with gas and coal power in coastal regions, and a further drop in costs of nearly a quarter by 2025 will allow the technology to undercut coal power nationally.” Solar and onshore wind costs remain low in China, but offshore wind is the big mover with costs falling 22% to US$72 per MWh in 2022, less than half of the Asia Pacific average of US$171 per MWh. China took the top spot from India this year for the lowest-cost renewable power in the region, Wood Mackenzie found.  China’s average utility-scale solar LCOE declined 4% to US$44 per MWh in 2022, while India’s increased over one third to US$56 per MWh. These two markets along with Australia are the only ones in Asia Pacific where renewables costs are competitive with new coal power projects. The increase of LCOEs in 2022 was driven by higher CAPEX and interest rates, with CAPEX for solar and onshore wind rising to 12% and 6% since 2020, while fossil fuel CAPEX rose by 5% to 8%, according to the analysis.

               In addition, interest rates for power projects in Asia Pacific jumped 30% from a low of 5.8% in 2021 to 7.5% in 2022 on average across solar, onshore wind, coal, and gas. Higher renewables costs mean that Asia Pacific’s average solar LCOE is at a 7% premium to coal power in 2022. This is despite higher fuel costs driving up the LCOE for new coal projects by 16% and gas by 11% in the last two years. Coal will remain the cheapest new-build power generation option in Asia Pacific until 2024, even with the high fuel price environment, according to Wood Mackenzie findings. New low-carbon technology options are developing but still expensive, with hybrid renewables and battery storage power costs 41% to 72% more expensive than gas LCOEs in 2022, it concluded.  Solar or wind plus storage projects will become competitive with gas by 2032 as costs fall to around US$107 to US$111 per MWh, the report forecast.  The report also shows that the costs of green hydrogen and ammonia blended power are more than double those of coal and gas today and will still have a 60% premium by 2050. Green ammonia and hydrogen costs are expected to fall by 49% and 53%, respectively, by 2050, but they remain at least double the fuel cost of coal or gas. Overall, the cost of a “firmed” mix of renewables, gas turbine backup, and storage is expected to fall from US$130 per MWh in 2022 to US$90 per MWh in 2030, becoming competitive against gas and nuclear.

Credits: renews.biz [Image: Rawfilm/Unflash]

               Ridge Clean Energy has submitted an application for planning permission for a renewable energy park its proposed Fair Oaks site to the south of Nottingham, England. The project would have a solar export capacity of 49.9MW with matched battery storage capacity. The Fair Oaks Renewable Energy Park would generate 71,336MWh annually, which equates to the average annual energy usage of 11,200 homes. The Fair Oaks site would include at least 100MWh of battery energy storage units to maximise the site’s energy generation. The project is expected to have an operational life of up to 40 years. Marjorie Glasgow BEM, Co-founder of Ridge Clean Energy said: “We develop each project with the scope to do so much more than generate power. We believe that combining clean energy with the needs of communities is the most powerful way to tackle climate change and its impacts.

               “Our contributions and up-front seed capital go over and above the Community Benefit Fund.” Project manager Jonny Murphy added: “The Fair Oaks Renewable Energy Park could help the local area adapt to big challenges currently facing the UK – climate change, domestic energy security and the rising cost of living. “We’ve also worked closely with ecology and landscape specialists to deliver an energy park that results in a 75% net gain in habitat which would support biodiversity. The site could continue to be used for agriculture with the applicant’s intention to enter into a sheep grazing licence at the appropriate time. “Business rates will be calculated nearer the time of operation and would be given to the local council to spend within the local area.”

Credits: renews.biz [Image: Ridge Clean Energy]

               Qualitas Energy has signed a long-term power purchase agreement (PPA) for output from its 494MW solar plant in Mula, in the region of Murcia, in southern Spain. Qualitas is an investor in the project alongside funds managed by lead partner Northleaf Capital Partners. Through the PPA, the energy generated by Mula will be sold to an IG global energy company for the next 10 years, making it one of the largest PPA deals backed by a single asset in Europe, stated Qualitas. In October 2022 Qualitas Energy closed another PPA for the Polish PV plant in Milkowice, with a capacity of 113MW, one of the three largest in the country.

               The company is exploring new PPA opportunities in the markets where it is present: Germany, Italy, the United Kingdom, and Poland. These countries are the main investment focuses of the fifth flagship fund recently launched, QE V. This new Qualitas Energy vehicle held a first close at more than €1.1bn in November 2022 and has a target size of €1.6bn. On this transaction, Qualitas Energy was advised by Watson Farley & Williams (legal).

Credits: renews.biz [Image: Unplash/Antonio Garcia]

               Solar developer Avantus (formerly 8minute) has broken ground at a 110MW solar project in Texas.  The Galloway 2 solar project, in Concho county, is expected to come online by the end of 2023. The majority of the project’s energy is committed to BASF Corporation, who is purchasing renewables to offset the energy demand at its Freeport, Texas site. The Galloway 2 project is owned by Allianz Capital Partners, with Avantus maintaining a minority stake in the project. RES is providing EPC services. Galloway 2 is Avantus’ second utility-scale project development in the Paint Rock area, with many workers returning to support Galloway 2. It will create over 250 peak construction jobs and will generate more than $18m in local property taxes, supporting essential local services, like education, the county hospital, and public safety. More than half of this funding will directly benefit the Paint Rock School District, which is located less than five miles from the project.

               “Texas leads the nation in energy production, so it’s no surprise the Lone Star State is leading the charge in building out massive amounts of clean energy. “Today, solar is not only one of the lowest cost forms of electricity generation, but also one of the fastest growing workforces in America. “Here in Texas, we are creating lifelong careers in clean energy that can sustain generations to come,” said Tom Buttgenbach, Founder and CEO of Avantus. At the groundbreaking ceremony, attendees toured the construction site. Initial work began at the site in the summer of 2022 and is currently at peak construction. “Galloway 2 has been such a great addition to our local economy here in Paint Rock,” said Paint Rock Mayor Francis Maupin. “Our town is busier than ever, and the tax revenue will help create real benefits for our school and community for years to come.” Avantus has already brought 600 MW (dc) of solar energy online with more than 4GW of solar and 12 gigawatt-hours (GWh) of energy storage under development across the state.

Credits: renews.biz [Image: Avantus]

               Enel Chile has announced the country’s National Electricity Coordinator has authorised the start of the 204MW Domeyko photovoltaic plant commercial operation located in the Atacama Desert in the Antofagasta Region. The solar park already delivers renewable energy to the National Electric System. Enel Chile general manager Fabrizio Barderi said: “Through this important milestone, we continue to incorporate more renewable capacity to our generation matrix, giving continuity to our development plan through which we seek to add 1.9GW of new capacity by 2025.” 

Credits: renews.biz [Image: Enel]

               Grenergy has closed a financing deal for the 150MW Belinchón solar farm in Spain. The deal was completed with a green loan of €89.5m, the company informed the Spanish Securities and Exchange Commission (CNMV) today. The agreement has been established with two banks, Norddeutsche Landesbank Girozentrale and Bankinter, and also includes other complementary credit lines for the construction and development of the park. Each of the two banks will assume half of the senior debt of approximately €44.7m. The financing method includes debt financing for a construction term plus 19 years. The Belinchón solar park is the second largest project built by Grenergy to date. Located in the municipality of Barajas de Melo in Cuenca, it is already in the construction phase, will have around 230,000 photovoltaic panels and will occupy an area of more than 300 hectares.  When it comes into operation, it will provide clean energy to 31,000 homes and will prevent the emission of around 115,010 tonnes of CO2 per year.

               The company has already signed an agreement for the long-term sale of energy produced at the wind farm with an Iberian utility for a period of 12 years, which will be activated in January 2025.  Until then, the electricity generated will be sold at market price. Grenergy said the project ratifies its commitment to Spain as its main market in Europe. Currently it has more than 2GW of projects in various stages of development. Grenergy chief executive David Ruiz de Andrés said: “This agreement ratifies the confidence of national and international banks in renewable energy, and reaffirms our leadership in green financing.”

Credits: renews.biz [Image: Marianna Proenca/Unsplash ]

               Vattenfall has made the final investment decision for the 76MW agri PV project Tützpatz in Mecklenburg-Western Pomerania, Germany. The project will be built without government funding, the Swedish developer said. It is Vattenfall’s first agri PV commercial scale project with partners. The aim of the Agri PV project in Tützpatz is to combine module types on different rack systems with suitable forms of agricultural use on an area of ​​95 hectares and thus to gather further practical experience for future commercial projects of this type. According to current planning, construction for Tützpatz should start in early summer 2023.

               Vattenfall head of solar Claus Wattendrup said: “The federal government has the goal of expanding electricity generation from photovoltaics to 215GW in 2030, half of which in open spaces. “In addition to classic open-space PV, agrivoltaics can make a contribution to achieving these goals. “With the Tützpatz project, we are now further developing this young technology on a commercial scale. “Because agrivoltaics help the climate, they can increase biodiversity and serve as an additional source of income for agriculture.”

Credits: renews.biz [Image: Andres Siimon/Unsplash]

               Longroad Energy has announced financial close and commencement of construction of the 150MWac Umbriel Solar project located in Polk County Texas. Umbriel is Longroad’s sixth greenfield renewable energy project in Texas to reach financial close and is the company’s first project in Texas’s MISO footprint. Development of Umbriel began in 2017, and the project is expected to reach commercial operations by the end of this year. Longford Energy vice president of origination and development operations Adam Horwitz said: “Texas continues to be an attractive market for solar development, and we are pleased to achieve financial close and begin construction on Umbriel. “Umbriel’s closing marks over 1.7GW of total wind and solar projects developed, financed, and built in Texas by the Longroad team. “Thank you to our many project participants and partners who made reaching this important milestone possible.”

               Umbriel’s total output will be purchased by Entergy Texas via a long-term PPA. The debt facilities were provided by Zions Capital Markets as a coordinating lead arranger and administrative agent, Silicon Valley Bank as a coordinating lead arranger, and Rabobank as a joint lead arranger. Longroad separately arranged tax equity for Umbriel. The project will be constructed by McCarthy Building Companies. During construction, Umbriel is projected to employ close to 300 people.

Credits: renews.biz [Image: Longroad]

               European solar power purchase agreement (PPA) prices rose by more than 11% in the fourth quarter of 2022, as demand for renewables PPA continued to outstrip supply. LevelTen Energy’s new report reveals that European P25 solar PPA prices increased 11.4% in the fourth quarter of 2022 to €76.84 per megawatt hour (MWh). Year over year, solar prices increased 60%. Wind permitting challenges impacted wind PPA availability, with P25 wind prices ranging between €66 and €69 per MWh in the fourth quarter. Demand for renewable energy PPAs continued to exceed supply, and Europe’s uncertain regulatory environment is exacerbating this imbalance, LevelTen Energy stated. LevelTen’s fourth quarter report, covering October to December 2022, includes analysis of 125 PPA price offers on 94 projects in 16 countries. All PPA price data in LevelTen’s report is based on the prices that developers are offering for PPA contracts, not transacted PPA prices. In certain markets Solar PPA prices “skyrocketed”, driven by economic, supply-chain, and regulatory challenges, increasing 30% in the UK and 20% in Italy – the highest increases in Q4. “Government auctions likely contributed to the steep price increase in the UK,” said Frederico Carita, senior manager of developer services, Europe at LevelTen Energy. “More capacity going to government auctions means less is available for corporate buyers, leading to higher PPA prices.” Carita said wind projects made up only 12% of all European offers on the LevelTen Energy Marketplace in the fourth quarter. “A lack of available land and years-long lead times for turbine deliveries are straining wind project economics — particularly in mature markets with high competition.

               “The market desperately needs permitting reforms to kick in faster,” Carita said. In 2022, wind investments decreased by 47% according to industry group WindEurope. Of the six European markets that had wind PPAs on offer, Spain had the highest volume, according to LevelTen’s report. Emerging European markets saw growing solar supply, with an increasing number of renewable energy developers are seeking to build projects in emerging markets, presenting “unique opportunities” to buyers. “PPA buyers looking to avoid hypercompetitive markets should consider markets like Greece and Hungary, which together produced an impressive 21% of Q4 solar offer volume,” said Carita. In central and eastern Europe, PPA demand isn’t as high because many buyers there are still more accustomed to short-term gas and coal energy contracts, he added. Kristian Lande, senior director of European analytics, said: “From price caps on renewable generators to a cap on gas prices, policymakers are growing more dependent on installing guardrails to keep wholesale prices artificially low — often at the expense of generators.

Credits: renews.biz [Image: Unsplash/Zbynek Burival]