Statkraft begins 860MW wind, solar development in Spain
Norwegian state-owned utility Statkraft plans to build and operate three onshore wind farms with a combined capacity of 445.5MW and two solar photovoltaic (PV) parks with 415MW in Spain, as part of its target to develop 3GW of renewable assets locally until 2025.
The company is developing the 170.5MW Prada, 154MW Rebordechao and 121MW Barjas wind farms, according to documents recently filed at the Spanish energy and environment ministry. Both Prada and Rebordechao would be located in the Ourense province in Spain's northwestern region of Galicia, while Barjas would be spread across Ourense and the neighbouring Leon province in Castilla y Leon.
The projects have recently started early environmental licensing at federal level, as each of them have more than 50MW of capacity.
Statkraft expects construction of the wind farms to start in 2023, with a commercial operation start date (COD) anticipated for 2025, it told Argus today.
It has also started developing two solar PV projects in southern Spain with a total capacity of 415MW. The 250MW Fausita in the Murcia region and the 165MW Benahavis in Cadiz province in Andalucia are both expected to reach ready-to-build status in 2022, it said.
PPAs and project development
Statkraft first entered the Spanish market in early 2018 as the offtaker of a 15-year power purchase agreement (PPA) for electricity from the 175MW Don Rodrigo solar PV plant in Andalusia. The project was developed by German renewable energy company BayWa RE and subsequently sold to asset manager MEAG.
The Norwegian utility has been one of the most active players in the Spanish PPA market, having signed at least seven deals as a buyer for electricity from plants totalling 749MW of capacity, Argus data show. It also signed at least three PPAs as a seller, with Spanish utilities Fortia Energia and Audax Renovables (see table).
Only one of the three PPAs as a seller is explicitly for power generated from wind farms — the two unnamed wind farms with 93MW of capacity are part of Statkraft's Spanish portfolio but belong to an undisclosed third-party company.
Statkraft opened an office in Madrid in March 2019 and later that year launched its Iberian project development business. It has been expanding its Spanish portfolio through both co-development agreements and its own greenfield projects, as well as through mergers and acquistions.
It recently completed the acquisition of UK-based developer Solarcentury, which has a 6GW pipeline of projects in Spain, the Netherlands, the UK, France, Greece, Italy and Chile. In Spain alone, Solarcentury has some 2GW of projects, including the recently announced Los Predios and Los Hierros with a combined 175MW.
"As a result we have a combined portfolio of 2.1GW of solar projects and 696MW in wind under active development, with expected COD between 2022 and 2025 in Spain," Statkraft said.
The 3GW renewable target for Spain represents nearly 38pc of the company's overall objective of 8GW by 2025, of which 6GW will be wind and 2GW solar.
Statkraft currently owns and operates 19.7GW of power capacity, of which around 18GW are renewable assets. It also manages 28GW from third parties.
| Statkraft's publicly announced PPAs in Spain | ||||||
| Seller | Buyer | Project/plant | Capacity (MW) | Technology | Start date | Duration (years) |
| BayWa RE | Statkraft | Don Rodrigo | 170 | Solar | 2018 | 15 |
| Statkraft | Fortia Energia | N/A | N/A | Solar/Wind | 2019 | 11 |
| Statkraft | Audax Renovables | N/A | N/A | Solar | 2019 | 10 |
| Aventron | Statkraft | Bargas | 50 | Solar | 2020 | 5 |
| BayWa RE | Statkraft | Don Rodrigo 2 | 50 | Solar | 2019 | 12 |
| Solaria | Statkraft | N/A | 252 | Solar | 2020 | 10 |
| Foresight | Statkraft | El Poleo, Las Panaderas, Navillas | 135 | Wind | 2019 | 10 |
| Sonnedix | Statkraft | Badajoz | 50 | Solar | 2021 | 10 |
| Statkraft | Fortia Energia | N/A | 93 | Wind | 2020 | 9 |
| BayWa RE | Statkraft | Tordesillas | 41.7 | Solar | 2021 | 10 |
| — Argus | ||||||
Related news posts
Start-ups to help Total keep output stable in 2Q
Start-ups to help Total keep output stable in 2Q
London, 26 April (Argus) — TotalEnergies said it expects its oil and gas production to hold broadly steady in the second quarter as planned maintenance is partially offset by rising output from new projects in Brazil and Denmark. The company expects to average 2.4mn-2.45mn b/d of oil equivalent (boe/d) in April-June, compared with 2.46mn boe/d in the previous three months and 2.47mn boe/d in the second quarter of 2023. Production is being supported by the restart of gas output from the redeveloped Tyra hub in Denmark late last month and the start of the 180,000 b/d second development phase of the Mero oil field on the Libra block in Brazil's Santos Basin at the beginning of the year. TotalEnergies first-quarter output was flat compared with the previous three months but 2pc lower than a year earlier as a result of Canadian oil sands divestments. The company reported a robust set of first-quarter results today, broadly in line with analysts' expectations. Profit for the first three months of 2024 was $5.7bn, compared to $5.6bn in the same period last year. Adjusted profit — which takes into account inventory valuation effects and special items — came in at $5.1bn, down by 22pc on the year but slightly ahead of the consensus of analysts' estimates of $5bn. Adjusted operating profit from the firm's Exploration & Production business was down by 4pc year-on-year at $2.55bn, driven in part by lower natural gas prices. The Canadian oil sands asset sales weighed on the segment's production but this was partly compensated by start-ups. As well as Mero 2, the Akpo West oil project in Nigeria started production during the first quarter. TotalEnergies' Integrated LNG segment saw a 41pc year-on-year decline in its adjusted operating profit to $1.22bn in January-March. The company said this reflects lower LNG prices and sales. But while its LNG sales for the quarter fell by 3pc in year-on-year terms, its LNG production was greater by 6pc. TotalEnergies achieved an average $78.9/bl for its liquids sales in the first quarter, an improvement on $73.4/bl a year earlier. But the average price achieved for its gas sales was 43pc lower on the year at $5.11/mn Btu. In the downstream, the company's Refining & Chemicals segment's first-quarter adjusted operating profit was $962mn in January-March, down by 41pc on the year but 52pc higher than the preceding quarter. TotalEnergies attributes the quarter-on-quarter rise to higher refining margins and a rise in refinery throughput . For the second quarter, it expects refinery utilisation rates to be above 85pc, compared with 79pc in the first quarter, boosted by the restart of 219,000 b/d Donges refinery in France. Total's Integrated Power segment continued to improve, registering a quarter-on-quarter and year-on-year increased of 16pc and 65pc respectively in its adjusted operating profit to €611mn. Net power production increased 14pc year-on-year to 9.6 TWh, while the company's portfolio of installed power generation capacity grew 54pc to 19.5GW. Total's cash flow from operations, excluding working capital, was down by 15pc on a year earlier at $8.2bn in the first quarter. The company has decided to raise its dividend for 2024 by 7pc to €0.79/share and plans a $2bn programme of share buybacks for the second quarter. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US-led carbon initiative misses launch date
US-led carbon initiative misses launch date
Houston, 23 April (Argus) — The Energy Transition Accelerator (ETA), a global initiative to use voluntary carbon market revenue to speed the decarbonization of developing countries' power sectors, has missed its planned Earth Day launch but continues to prepare for doing business. At the Cop 28 climate conference in Dubai last year, the initiative's leaders said they hoped to formally launch the program on 22 April 2024 . That didn't happen, but the program's leaders last week announced that the US climate think tank Center for Climate and Energy Solutions will serve as the ETA's new secretariat and that former US special presidential envoy for climate John Kerry will serve as the honorary chair of an eight-member senior consultative group that will advise the ETA's design and operations. The ETA plans to spend 2024 "building" on a framework for crediting projects they released last year. ETA leaders said the initiative could ultimately generate tens of billions of dollars in finances through 2035. The ETA also said the Dominican Republic had formed a government working group to "guide its engagement" as a potential pilot country for investments and that the Philippines would formally participate as an "observer country" rather than as a direct participant immediately. The ETA is still engaging Chile and Nigeria as potential pilot countries too, the initiative told Argus . The ETA is being developed by the US State Department, the Rockefeller Foundation, and the Bezos Earth Fund and would be funded with money from the voluntary carbon market. The initiative's ultimate goal is to allow corporate and government offset buyers to help developing countries decarbonize their power sectors through large projects that accelerate the retirement of coal-fired power plants and build new renewable generation. As of now, the ETA's timeline for future changes and negotiations with countries and companies is unclear. The program's goals are ambitious, especially at a time when scrutiny of some voluntary carbon market projects from environmentalists has weighed on corporate offset demand. By Mia Westley Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Higashidori No.1 reactor faces further delays
Japan’s Higashidori No.1 reactor faces further delays
Osaka, 23 April (Argus) — Japanese utility Tohoku Electric Power has confirmed a further delay in reinforcement works at its 1,100MW Higashidori No.1 nuclear reactor, with its completion date unknown. The postponement in restarting the Higashidori reactor in northern Aomori prefecture would encourage Tohoku to secure replacement thermal fuels — such as LNG and coal — for an extended period, although the company is planning to resume another reactor in September. Tohoku previously aimed to complete the reinforcement work at Higashidori in the April 2024-March 2025 fiscal year. But the company needs more time to clear all the procedures for the assessment of basic earthquake ground motions and tsunamis, and to prepare for the plant inspection. It is still unclear when the company will complete the safety measures. The Higashidori reactor is undergoing inspections by Japan's nuclear regulation authority (NRA), based on stricter safety rules following the 2011 Fukushima nuclear disaster. The reactor will need to pass the safety checks and secure approval from local governments before restarting. Tohoku has three commercial reactors, including two at Onagawa in Miyagi prefecture and the Higashidori No.1 reactor, of which it applied to restart two. The 825MW Onagawa No.2 reactor has already cleared the NRA's safety inspections and obtained permission from local authorities to restart. The company is now planning to restart the Onagawa No.2 reactor in September . The possible return of the Onagawa No.2 reactor will help Tohoku reduce consumption of thermal fuels. The company used 2.76mn t of LNG in April-December 2023, up by 12pc from a year earlier, in the absence of all its nuclear reactors. But its coal consumption fell by 12pc to 5.68mn t during the period. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Colombia's electricity woes add to unrest against Petro
Colombia's electricity woes add to unrest against Petro
Bogota, 22 April (Argus) — Colombians took the streets of major cities and towns across the nation on Sunday to protest mainly against health, pension and labor changes, but potential power outages are also creating discontent. Authorities estimated that about 250,000 Colombians marched in widespread protests, sparked by changes in healthcare. Congress in April had rejected President Gustavo Petro's proposals in the sector, and the government the next day seized the two largest private-sector health insurers. Protesting healthcare workers say the government did this to implement changes through a back channel. "Regulatory noise and risk are likely to remain high amid announcements, proposals, and measures [that do not require congressional approval], aimed at changing the game's rules in strategic sectors," brokerage Credicorp Capital said. Colombians also protested being on the verge of electricity rationing like that in neighboring Ecuador as hydroelectric reservoirs remain at record-low levels. Several unions and other associations have long warned the Petro administration to take measures to offset the effects of the El Nino weather phenomenon. Electricity distributors last year called for allowing bills for energy purchased on the spot market to be deferred and for loosening price index rules, among other proposals. The national business council sent at least three letters to the president on the issue. At least nine separate letters calling for preparation to prevent blackouts were sent to the president and ministers. Several actions were only recently implemented . "There are no risk of electricity rationing in Colombia," former energy minister Irene Velez said in 2023. "We do not understand why some people are interested in generating panic." Government weather forecasts also overestimated rainfall expected for March, leading hydroelectric plants to use more water in the reservoirs than they otherwise would have, said director of the thermoelectric generation association (Andeg) Alejandro Castaneda. Reservoir levels stood at 29.5pc today, rising thanks to rains since 19 April, up from 28.75pc on 18 April. Electricity rationing is set to begin when reservoirs drop below 27pc, according to grid operator XM. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more