E.ON is balancing its renewable portfolio with a number of different investments across Europe. E.ON has agreed to buy Energi E2 Renewables Ibericas, Dong Energy's wind farm business in Spain and Portugal, for E722 million. Currently, E2-I generates 260MW of electricity in Spain and Portugal from renewable sources.
This acquisition, along with a several others across Europe, should guard E.ON against the risk associated with developing renewables projects. 'Content German utility E.ON is set to become the fourth largest player in the Spanish power market as a result of the approved purchase of Spanish power utility Viesgo from Enel, and the acquisition of additional generation capacity from Endesa. Although E.ON lost out to Enel in the battle to acquire Endesa, in the subsequent forced divestiture of assets the firm has put together a very balanced portfolio of assets. Indeed, as a result of the forced sales, E.ON will now be able to draw upon 450MW of nuclear-generated electricity under a 10-year supply agreement, three power plants that can generate 1,475MW and a combined cycle gas turbine plant under development that will add another 800MW.
When these are supplemented with the newly acquired Iberian wind assets, this portfolio appears to provide E.ON with a very adaptable and profitable-looking mix of assets, as power demand continues to increase in Spain. E.ON is also investing in renewable projects in the UK and is a member of the consortium developing the London Array project.
The GBP1.5 billion wind power scheme will have 341 offshore turbines about 12 miles off the Kent and Essex coasts. The consortium behind it is made up of Shell WindEnergy, Core and E.ON UK Renewables. There are, however, two marked differences between E.ON's investment in Spain and its investment in the UK. Firstly, in Spain, the firm is merely buying assets, while in the UK it is taking on project risk by actively developing the wind farms. Secondly, and perhaps more importantly, are the different regulatory regimes under which renewable projects operate in the two countries.
In Spain, guaranteed returns are offered under feed in tariffs, while in the UK, renewable projects continue to struggle under the obligation certificate scheme. As a result of these distinct market differences, E.ON's policy of balancing its portfolio of generating assets in Spain and of spreading its project risk by developing renewable projects in other European countries, as well as the UK, looks promising. Via| Energy-Business-Review| by David Hiller
EON to round off Yuzhno-Russkoye talks this month
EON is keen to round off talks regarding a role in the project to develop the Yuzhno-Russkoye oil and gas field by the end of September. "During talks with (German) Gref (the Russian Economic Development and Trade Minister) we said that we are keen to bring the talks regarding entry into the project to their conclusion by the time Yuzhno-Russkoye goes on stream," the German energy concern's chief executive, Wulf Bernotat, told Interfax.
"It would be good if we could announce reaching a final agreement by September 29, when the official ceremony marking the launch of production at the field takes place," Bernotat said. "I gave Mr. Gref a friendly reminder that EON is not only Gazprom's biggest client inEurope but also its biggest private shareholder, and therefore we ought to finish what we have started," Bernotat said. Bernotat was in Moscow
This acquisition, along with a several others across Europe, should guard E.ON against the risk associated with developing renewables projects. 'Content German utility E.ON is set to become the fourth largest player in the Spanish power market as a result of the approved purchase of Spanish power utility Viesgo from Enel, and the acquisition of additional generation capacity from Endesa. Although E.ON lost out to Enel in the battle to acquire Endesa, in the subsequent forced divestiture of assets the firm has put together a very balanced portfolio of assets. Indeed, as a result of the forced sales, E.ON will now be able to draw upon 450MW of nuclear-generated electricity under a 10-year supply agreement, three power plants that can generate 1,475MW and a combined cycle gas turbine plant under development that will add another 800MW.
When these are supplemented with the newly acquired Iberian wind assets, this portfolio appears to provide E.ON with a very adaptable and profitable-looking mix of assets, as power demand continues to increase in Spain. E.ON is also investing in renewable projects in the UK and is a member of the consortium developing the London Array project.
The GBP1.5 billion wind power scheme will have 341 offshore turbines about 12 miles off the Kent and Essex coasts. The consortium behind it is made up of Shell WindEnergy, Core and E.ON UK Renewables. There are, however, two marked differences between E.ON's investment in Spain and its investment in the UK. Firstly, in Spain, the firm is merely buying assets, while in the UK it is taking on project risk by actively developing the wind farms. Secondly, and perhaps more importantly, are the different regulatory regimes under which renewable projects operate in the two countries.
In Spain, guaranteed returns are offered under feed in tariffs, while in the UK, renewable projects continue to struggle under the obligation certificate scheme. As a result of these distinct market differences, E.ON's policy of balancing its portfolio of generating assets in Spain and of spreading its project risk by developing renewable projects in other European countries, as well as the UK, looks promising. Via| Energy-Business-Review| by David Hiller
EON to round off Yuzhno-Russkoye talks this month
EON is keen to round off talks regarding a role in the project to develop the Yuzhno-Russkoye oil and gas field by the end of September. "During talks with (German) Gref (the Russian Economic Development and Trade Minister) we said that we are keen to bring the talks regarding entry into the project to their conclusion by the time Yuzhno-Russkoye goes on stream," the German energy concern's chief executive, Wulf Bernotat, told Interfax.
"It would be good if we could announce reaching a final agreement by September 29, when the official ceremony marking the launch of production at the field takes place," Bernotat said. "I gave Mr. Gref a friendly reminder that EON is not only Gazprom's biggest client in
Via| New Europe News
E.ON |
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