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Policy & Regulatory

Indonesia plans to revise feed-in tariffs to promote renewable electricity

10 Feb 2020

Indonesia is considering revising its feed-in tariff (FiT) system and dividing feed-in tariffs into two stages: a fixed electricity tariff guaranteed over a 12-year period, followed by a lower tariff as of the 13th year and until the end of the contract. The measure would apply to new hydropower, solar and wind power plants and is expected to ensure developers faster returns on investments and to boost the development of renewable projects.

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UK plans to phase out coal-fired power generation by end-2024

10 Feb 2020

The British government has decided to bring forward the deadline for phasing out coal from the country’s energy system by one year, from October 2025 to 1 October 2024. The government will launch a consultation on advancing the deadline for ending unabated coal by one year.

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Canada will raise CAD2.8bn from federal carbon tax in 2019-2020

7 Feb 2020

According to the Parliamentary Budget Officer of Canada, the Canadian government is expected to collect CAD2.81bn (US$2.1bn) in direct revenue in 2019-2020 from its federal carbon tax currently set at CAD 20/t (US$15/t). With the carbon tax level raised to CAD 50/t (US$38/t) in 2022-2023, revenues would then rise to CAD 8.27bn (US$6.2bn). However, Canadian households will receive 90% of the revenues from the fuel charge proceeds, i.e. more than they initially pay.

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Japan sets solar PV feed-in tariffs for the 2020-2021 year

7 Feb 2020

The Japanese Ministry of Economy, Trade and Industry (METI) has released provisional solar PV feed-in tariffs (FiTs) for the next financial year (April 2020-March 2021). The feed-in tariff rate for solar PV systems below 10 kW is set at JPY21/kWh (US$19c/kWh). For PV projects between 10 kW and 50 kW, the tariff is fixed at JPY13/kWh (US$12c/kWh) and for projects between 50 kW and 250 kW at JPY12/kWh (US$11c/kWh). FiTs for large scale PV projects (>250 kW) have been shifted to a tendering program initiated by the METI.

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Companies

Equinor (Norway) reached record oil and gas production in late 2019

10 Feb 2020

Norwegian oil and gas company Equinor has released its 2019 results, announcing a record high production over the last quarter of 2019 thanks to the start of the Johan Sverdrup oil field in October 2019 that added more than 350,000 bbl/d to the group’s output. Oil and gas production averaged 2,074 mboe/d during 2019 (-2% on 2018), due to a lower liquid production (-5% in Norway and -1% abroad) while gas production remained stable (-3% in Norway but +7% abroad).

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Vattenfall plans to invest €2.4bn wind power in 2020-2021

10 Feb 2020

The Swedish energy group Vattenfall has released its 2019 results, posting a stable power generation in 2019. Vattenfall generated 130 TWh of electricity in 2019 (stable on 2018) and sold 89.5 TWh of electricity in 2019 (+1.3%), mainly to business customers (55 TWh), and 54 TWh of gas (-2.3%). Vattenfall’s Power Generation business unit (conventional production) posted a 1.7% decrease in power generation in 2019 to 89 TWh, due to a 3% decline in nuclear power generation.

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Brazilian bank BNDES sells shares of Petrobras

10 Feb 2020

The Brazilian state-owned development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has raised BRL 22bn (US$5.2bn) from the sale of 734 million common shares in the national oil company Petrobras, representing 5.6% of the company’s share capital. The price of the global share offering was set at BRL 30 per common share and institutional investors acquired 83% of the offering.

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Energy & Climate Markets

Renewables’ share in French power mix stayed stable at 23% in 2019

10 Feb 2020

According to the French power transmission system operator RTE, the total renewable power capacity (hydropower, wind, solar PV and bioenergies) connected to its grid rose by more than 2,350 MW in 2019, reaching more than 53,600 MW at the end of 2019. Wind capacities increased by 1,361 MW to around 16.5 GW, compared to a target of 21.8 to 26 GW by 2023, as agreed in the Multiannual Energy Programming (PPE). Solar capacities rose by 890 MW to more than 9.4 GW; the 2023 target ranges between 18 and 21 GW.

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Infrastructure & Investments

Cambodia approves two coal-fired power projects (965 MW)

10 Feb 2020

The government of Cambodia has approved the construction of two coal-fired power plants totalling 965 MW. The government has approved a 265 MW coal-fired power project worth US$294m developed by the local company Han Seng Coal Mines in the northwest Oddar Meanchey province and is to generate first power in 2022.

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Rosatom starts hot tests at Leningrad II-2 nuclear reactor (Russia)

10 Feb 2020

Rosatom has started the automated process control system (APCS) of the Leningrad II-2 nuclear reactor in Sosnovy Bor, in western Russia. These hot tests indicate the final stage of pre-commissioning work on nuclear equipment and the reactor is now fully ready for first operations in 2020.

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