Blowing in the wind

6 October 2020 By George Hay Follow @gfhay

Total has joined BP in promising more investment in renewable energy. The risk is that deep-pocketed interlopers push up prices of wind farms and solar parks, eroding returns. Luckily for transitioning oil majors, the scale of new capacity needed to replace fossil fuels is vast.

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Total on Sept. 30 said it would increase its annual investments in renewable energy and electricity to over 2 billion euros between 2021 and 2025, and more than 3 billion euros from 2026 onwards.

The French energy company said its overall spending budget will remain under $12 billion in 2021, before increasing to between $13 billion and $16 billion a year between 2022 and 2025 as oil prices are expected to recover to up to $60 a barrel.

The group aims to have 35 gigawatts in gross renewable energy production capacity by 2025, up from a previous target of 25 GW, and said 70% of that was already accounted for, including projects still under construction.

It is aiming for returns of over 10% on renewable investments, to be achieved through sales of stakes in projects to third parties, known as farm downs.

UK Prime Minister Boris Johnson will on Oct. 6 reiterate a target for the UK to have 40 GW of offshore wind capacity by 2030.

Context News

Total on Sept. 30 said it would increase its annual investments in renewable energy and electricity to over 2 billion euros between 2021 and 2025, and more than 3 billion euros from 2026 onwards.

It is aiming for returns of over 10% on renewable investments, to be achieved through sales of stakes in projects to third parties, known as farm downs.

UK Prime Minister Boris Johnson will on Oct. 6 reiterate a target for the UK to have 40 GW of offshore wind capacity by 2030.

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