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Policy & Regulatory

EU endorses Spanish scheme to support energy-intensive companies

13 Jan 2021

The European Commission has authorised, under EU state aid rules, a Spanish scheme to partially compensate energy-intensive companies (i.e. with high electricity consumption relative to the value-added of production) for the cost incurred in Spain to fund support to renewable energy production, high-efficiency cogeneration, and power generation in non-peninsular territories. The €92m/year policy, which will apply until 31 December 2022, is expected to benefit companies in sectors that are particularly energy-intensive and more exposed to international trade.

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Norway unveils a comprehensive climate action plan to 2030

12 Jan 2021

The Norwegian government has unveiled a comprehensive climate action plan to 2030. The plan focuses on greenhouse gas (GHG) emissions that are not included in the Emissions Trading System (ETS), including emissions from transport, waste, agriculture, and buildings, and some emissions from industrial production and the oil and gas industry.

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South Korea authorises renewable energy producers to sign PPAs

12 Jan 2021

The South Korean Ministry of Trade, Industry and Energy has authorised domestic electricity consumers to purchase electricity from renewable energy producers owning plants with a capacity of more than 1 MW through power purchase agreements (PPAs). Electricity consumers – both industrial and smaller end-users – can take part in the K-RE100 system through registration at the state-run Korea Energy Agency. Renewable electricity can be procured through third party PPAs, the green premium system, the purchase of renewable energy certificates (REC), or self-generation.

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Energy & Climate Markets

Azerbaijan raised gas exports by 17% to 13.8 bcm in 2020

13 Jan 2021

Azerbaijan increased gas exports by 17% to 13.8 bcm in 2020, thanks to the Southern Gas Corridor. The country exported 10.5 mcm/d of gas to Italy, 2 mcm/d to Greece and 1 mcm/d to Bulgaria. The Shaz Deniz field’s output, which reached 18.4 bcm of gas and 29.2 mbl of of condensate in 2020, is expected to rise to 21.3 bcm of gas and 32.5 mbl of condensate in 2021. However, oil production at the Azeri–Chirag–Gunashli (ACG) complex should decline from 174.6 mbl in 2020 to 171.6 mbl in 2021.

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Iraq doubles Baiji refinery’s capacity to 140,000 bbl/d

13 Jan 2021

The Iraqi government has announced that the capacity of the 70,000 bbl/d Baiji refinery in the Salahudin province, 200 km north of the Iraqi capital Baghdad, has doubled to 140,000 bbl/d after the rehabilitation of the refinery’s Salahudin-2 part (70,000 bbl/d). In mid-2018, the country rehabilitated Salahudin-1, which has a capacity of 70,000 bbl/d, and which witnessed intense fighting in 2014. 

Iraq has 16 refineries, for a total nominal capacity of 1.0 mb/d. The government aims to restore the Baiji refinery’s previous capacity of 280,000 bbl/d.

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Forecasts

The United States plans to retire 9.1 GW of installed capacity in 2021

13 Jan 2021

According to the US Energy Information Administration (EIA), the country will retire 9.1 GW of power generation capacity in 2021, including 5.1 GW of nuclear (56%) and 2.7 GW of coal-fired power plants (30%).

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Infrastructure & Investments

844 MW Markbygden onshore wind project in Sweden reaches new milestone

13 Jan 2021

Enercon has handed over the first 25 wind turbines of the 250 MW Markbygden Phase II North onshore wind project in Piteå, in the northern province of Norrbotten in Sweden, to Energy Infrastructure Partners (EIP). In April 2019, Enercon started construction works for the second phase of the Markbygden onshore wind plant. The project will include 201 wind turbines with a combined capacity of 844 MW. The project should be fully operational by the end of third quarter of 2021.

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NPCIL connects 700 MW Kakrapar-3 nuclear reactor to the Indian grid

13 Jan 2021

Nuclear Power Corporation of India Ltd (NPCIL) has synchronised to the grid the third unit of the Kakrapar nuclear power plant in Gujarat (India). The company had loaded fuel into the 700 MW Indian-designed pressurised heavy water reactor (PHWR) in March 2020 and the reactor achieved first criticality in July 2020.

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Engie and Neoen plan to develop a 1 GW solar plant in southwestern France

13 Jan 2021

Engie has entered into a partnership with Neoen to build the 1 GW Horizeo solar plant in Gironde (southwestern France). The project will include battery storage and supply a green hydrogen production unit and a data centre. The French authorities will launch a public consultation on the project, which will stretch over 10,000 m2 of forest that will be cleared.

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Iran signs contracts to increase oil production by 95,000 bbl/d

13 Jan 2021

The National Iranian Oil Company (NIOC) has signed 8 contracts worth US$1.2bn with eight local enterprises to boost the country’s oil production by 95,000 bbl/d/. The contracts include projects in Binak, Solabdar, Lali Bangestan, Gachsaran 3 and 4, Golkhari, Bibi Hakimeh and Ahvaz 2, 3 and 5 fields, which are operated by National Iranian South Oil Company (NISOC) in the provinces of Bushehr, Fars, Khuzestan, Kohgiluyeh and Boyer-Ahmad. In addition, NIOC has signed a contract on the Reshadat Offshore Field operated by the Iranian Offshore Oil Company (IOOC).

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