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Policy & Regulatory

OPEC+ keeps oil production target for April 2021 broadly unchanged

5 Mar 2021

The OPEC+ has agreed to a continuation of the production levels of March 2021 – when the production cut reached 8.05 mb/d – in April 2021 for most member countries. However, Russia and Kazakhstan will be allowed to increase their crude oil production by 130 kb/d and 20 kb/d, respectively. The two countries were already authorised to raise their output by a combined 75 kb/d in February 2021 and a further 75 kb/d in March 2021. On the contrary, Saudi Arabia pledged to extend in April 2021 the voluntary oil output cuts of 1 mb/d that started in February 2021.

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Turkey will tender 1 GW of solar capacity in March 2021

5 Mar 2021

Turkey has decided to hold 74 solar mini tenders under its Renewable Energy Resources Zones (YEKA) scheme between 8 and 12 March 2021. It will offer a total capacity 1,000 MW spread across 36 different regions over a five-day period. Bidders will have to submit an offer for at least 20 MW, at a ceiling price of TRY0.35/kWh (€3.89c/kWh). Winners will sign 15-year power purchase agreements (PPAs) with the state. The tenders are expected to raise US$1bn in investments.

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Hungary brings coal exit forward to 2025

5 Mar 2021

The Hungarian authorities have brought forward the deadline for phasing out coal-fired power generation by five years from 2030 to 2025. The 844 MW Mátra lignite-fired power plant, owned by the state-owned power utility MVM, is the country’s only remaining large lignite-fired power plant in operation.

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The EU launches a investigation on Germany’s lignite phase-out plan

4 Mar 2021

The European Commission has launched an investigation on Germany’s lignite phase-out plan, to confirm if the compensation granted to the operators of lignite-fired power plants for phasing out earlier involved state aid and if it was kept to the minimum necessary.

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Companies

Iberdrola plans to add 1.2 GW of solar capacity in Spain

5 Mar 2021

The Spanish energy group Iberdrola plans to add 755 MW of new photovoltaic capacity in Extremadura (Spain). The 380 MW Tagus solar PV project will be located in Alcántara and is expected to enter into operation between 2022 and 2023. The 375 MW Cedillo plant, located between Alcántara and Herrera de Alcántara, will enter into operation in 2022. The two projects will require a joint investment of €420m.

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Uniper’s electricity sales declined by 9.8% in 2020 (Germany)

5 Mar 2021

The German energy group Uniper has released its 2020 results, posting a net income of €402m (-38%). In 2020, Uniper’s power generation decreased by 8.5% to 95.2 TWh, including 53.4 TWh in Europe (-7.2%) and 41.7 TWh in Russia (-10%). In addition, the company sold 552.9 TWh of electricity (-9.8%) and 2,206 TWh of natural gas (-1.2%). The company’s installed capacity increased to 33.5 GW at end-2020 (+3.2%), with 27.9 GW of fossil generation, 3.7 GW of hydro and 2 GW of nuclear.

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NRG Energy will sell 4.9 GW of thermal power assets (United States)

4 Mar 2021

The US power utility NRG Energy (United States) has entered into a definitive purchase agreement with Generation Bridge, an affiliate of ArcLight Capital Partners, to sell approximately 4,850 MW of thermal power generation assets from its East and West regions of operations for total consideration of US$760m. The group will also enter into a tolling agreement for its 866 MW Arthur Kill gas-fired power plant in New York City through April 2025.

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Infrastructure & Investments

Reliance and JERA close financing for a 745 MW CCGT project in Bangladesh

5 Mar 2021

Reliance Power (India) and JERA (the joint venture of Japanese companies TEPCO and Chubu Electric) have reached financial close on their 745 MW gas-fired combined-cycle power plant at Meghnaghat, in Narayanganj (Bangladesh). The project is backed by the Japan Bank for International Cooperation (JBIC) and the Asian Development Bank (ADB).

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ACWA Power secures a loan for its 200 MW Kom Omba solar project in Egypt

5 Mar 2021

The African Development Bank has approved a US$27m loan for a 200 MW solar PV power plant at Kom Ombo, in Upper Egypt on the river Nile. The US$156m project, owned by ACWA Power, will be also funded by the European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF), the Arab Bank and the OPEC Fund for International Development. The project is expected to be commissioned in 2023.

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Johor (Malaysia) plans a new 450 MW solar power plant

5 Mar 2021

The Malaysian state of Johor plans to build a 450 MW solar power plant in Pengerang. The MYR1.4bn (US$345m) Sultan Ibrahim solar project, which is developed under the 2030 Johor Sustainable Development Plan, should be commissioned by 2023. The plant will also include an energy storage system.

Solar accounts for around 3% of Malaysia’s installed capacity, with 882 MW at the end of 2019.

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