Renewables in DK. Anna Riis Hedegaard Communications and public affairs manager

Transcription

1 Renewables in DK Anna Riis Hedegaard Communications and public affairs manager

2 About European Energy European Energy is a privately held company, founded in 2004 by Knud Erik Andersen and Mikael Dystrup Pedersen. 94 European Energy has developed, constructed and invested in 94 wind and solar farms. 9 European Energy is active in 9 countries, with a main focus on Europe. 70 We have more than 70 employees in our CPHbased head quarter. 709 MW European Energy manages 709 MW wind and solar parks. 1.6 billion The Value of European Energys wind and solar parks amounts to 1,6 billion DKK. 1 billion European Energy has an annual revenue of more than 1 billion DKK. 2

3 Our business model Development and construction Sale of electrical power Divestment PAGE 3

4 Status: Closing the gap 4

5 DKK/MWh The power market: Closing the gap The gap is narrowing. Wind and solar power prices have decreased by 66 and 85 percent in 7 years LCOE prices Solar Wind Electricity price forecast (DEA) Source: Lazard and the Danish Energy Agency 5

6 Installed GW Closing the gap: lowering hardware costs Scale and technology will drive further cost reductions. But solar PV is taking the lead. GLOBAL INSTALLED CAPACITY (REALISED AND FORECASTS) FORECAST: CAPACITY TO BE INSTALLED IN GW GW Onshore wind Offshore wind Solar PAGE 6

7 Closing the gap: Competition Auctions will reduce prices. But the size of the auctions and availability of sites in DK limits the potential. Kappel Wind Farm PAGE 7

8 Closing the gap: Increasing the value Green energy may trade at lower spot prices, but it represents higher value for corporate consumers. NEW COSTUMERS: THE RE100-CLUB MOTIVATION Green energy is not a PR-stunt for large corporations but a hygiene factor. It is the CFO, not the CSR departments, who sources green energy. Large corporate consumers are investing in green energy to: Fight climate change. Maintain good relations with end consumers and host countries. Reduce exposure to the fluctuating market prices of electricity. PAGE 8

9 PPA: Matching price and value The PPA market enables us to match price and value. A PPA can be structured in several ways. PRICE PREMIUM PPA: PRIVATE WIRE Fixed power price Customer price Savings on distribution fees Some tax advantages Spotprice CONTRACT FOR DIFFERENCE Customer price Spotprice THE PPA-STRUCTURE PAGE 9

10 Next step: Beyond power PAGE 10

11 Beyond power: The ocean is still blue Only 7 percent of the total Danish energy consumption is covered by wind and solar power. Electricity (Wind and solar) 7% district heating and natural gas 25% Electricity (other sources) 17% Other 19% DK CONSUMPTION Transport 32% Source: The DEA PAGE 11

12 Øre/Kilometer DKK/MWh Grid parity: Transportation and heating Wind and solar power has been cheaper than gasoline for years, and is fully competitive with other generation technologies. PRICE OF DRIVING ONE KILOMETER BEFORE TAX LCOE PRICES Solar Wind Gasoline wind Gas Biomass Coal Source: Lazard and EOF PAGE 12

13 Taxation prevents market driven green transition Technology specific taxation prevents wind and solar from competing in transportation and heating. Storing electricity in district heating and car batteries, will expand the market for wind and solar power and reduce the number of hours with low power prices. PAGE 13

14 Our solution: EE GigaStorage EE GigaStorage stores wind and solar power in hot water to use later on in the district heating system PAGE 14

15 PAGE 15

16 2030: Make Denmark green again The next energy agreement should focus on scale, easy access to sites and technology neutral energy taxes. That will enable market driven green transition PAGE 16