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Producción y mercados energéticos 11/02/19

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11 February 2019

TOP STORY: French renewable power output covered 22.7% of 2018 domestic consumption According to the French power transmission system operator RTE, power generation recorded its largest increase in the last 10 years (+3.7%) and reached 549 TWh in 2018, thanks to a surge in nuclear and renewable power generation. Nuclear power generation rose by 3.7%, while hydropower generation surged by 27% to 68 TWh. Favourable conditions contributed to a 15% increase in wind power generation (28 TWh) and a 11% increase in solar power generation (10 TWh), while bio-energies generated another 10 TWh (+2.3%). Thermal power generation fell by 27% to 39 TWh. Overall, the share of renewable in the power mix rose to 21.3% in 2018 (12.5% hydropower, 5.1% wind, 1.9% solar and 1.8% bio-energies). In 2018, installed capacity in France rose by more than 2 GW (+1.6%), even if the thermal capacity dropped by 439 MW, as the 700 MW Cordemais fuel oil-fired plant was shut down in December 2018. Renewable capacity additions (+1,558 MW of wind and +873 MW of solar) accounted for the bulk of the increase and the total renewable installed capacity (including hydroelectricity, wind, solar photovoltaic, and bioenergy) stood at 51,171 MW, which represents 99% of the target set for end-2018 by the PPE (Programmation Pluriannuelle de l’Énergie). However, the solar capacity addition does not meet the PPE 2018 requirement as a total solar capacity of 10,200 MW was expected for the end of the year. Total electricity consumption slightly decreased (-0.3%) in 2018 and renewable energies covered 22.7% of the total electricity demand, which is significantly higher than the 18.5% recorded in 2017. Exports rose by 16% thanks to the increased availability of hydro and nuclear electricity in France and the unavailability of Belgian nuclear plants, while imports fell by 28%. The higher renewable power generation enabled the country to cut its CO2 emissions from power generation activities by 28% compared with 2017, to reach a level of 20.4 Mt. RTE also reported investments of €1.4bn for the whole year. 205 km of underground power lines were deployed, while 309 km of overhead lines were decommissioned, bringing the total length of its power lines to 105,857 km.

Companies Sempra Energy completes sale of US UGS assets to ArcLight Capital US-based power and gas infrastructure company Sempra Energy has completed the sale of its non-utility gas storage facilities (UGS) to an affiliate of ArcLight Capital Partners for a total consideration of US$328m in cash. The transaction was announced at the beginning of January 2019 and includes several UGS assets with a total operating capacity of 42.7 bcf (1.2 bcm),… Read more Policy & Regulatory Eskom will be split into three separate entities (South Africa) The South African president has excluded privatisation plans for the state-run power utility Eskom and announced plans to restructure the company into three separate entities with one specific segment each: power generation, transmission and distribution. All three would be put under control of Eskom Holdings, in a move to help the debt-ladden firm to cope with its financial difficulties. Read more UE total energy consumption figures rose by 1% in 2017 According to figures published by Eurostat, primary and final energy consumption in the European Union (EU) rose by 1% in 2017. More specifically, primary energy consumption reached 1,561 Mtoe, while final energy consumption reached 1,222 Mtoe. Primary energy consumption declined in eight countries including the United Kingdom, France, the Netherlands, Belgium and Sweden,… Read more Finland’s Parliament introduces 30% biofuels obligation target for 2029 The Finnish Parliament has voted in favour of a new legislation that introduces a gradual increase of biofuels’ share in road traffic to 30% over the 2021-2029 period. The share of advanced biofuels should reach 10% in 2030. Moreover, it also gave the green light to a law on the distribution obligation of bio-based light fuel oil,… Read more Energy Markets Egypt’s gas production on its way to ramp up by a further 11 mcm/d According to the Egyptian Ministry of Petroleum, the country is on its way to increase its domestic natural gas production by an additional 400 mcf/d (11.3 mcm/d or 4.1 bcm/year) within a few days. Most of the incremental output is expected to come from the Giza and Fayoum fields. Read more Infrastructure & Investments Five firms shortlisted for Interconnector Greece-Bulgaria gas pipeline Project company Interconnector Greece-Bulgaria (ICGB) has shortlisted five companies to design and build the 182 km-long gas pipeline project between the two countries. The selected bidders are scheduled to file their offers by the end of March 2019. Besides, the construction start has been pushed back and could take place by the end of May 2019 at the earliest. Read more EU’s gas market rules could extend to pipelines to and from third countries The Committee of Permanent Representatives has given a mandate to the Presidency of the European Council to start negotiations with the European Parliament on an amendment to the gas directive. The proposed amendment would extend the application of the EU’s gas market rules to pipelines from and to third countries. Read more IFTC lends US$154m to Tunisia’s STEG to prop up future gas imports The International Islamic Trade Finance Corporation (ITFC), an entity within the Islamic Development Bank (IDB), has signed a US$154m loan agreement with the Tunisian state-run power and gas utility STEG (Société tunisienne de l’électricité et du gaz) to finance its future imports of natural gas, in particular from Algeria. Read more