Hydropower IPO tests appetite for weather risks 28 Jun 2023 Hidroelectrica’s market sale in Bucharest could value the renewable energy supplier at 10 bln euros, Europe’s largest IPO so far this year. High margins, low debt and fat dividends make the offer palatable. But as droughts intensify, water scarcity may prove a headache.
Rich countries and India should cut a climate pact 10 Apr 2023 Helping the world’s most populous nation grow in a green way is one of the best things that could happen for its people and the planet. While there are many obstacles to a deal between the G7 and India, the prize is great enough for both sides to overcome them, says Hugo Dixon.
EU power rejig may only solve tomorrow’s problem 14 Mar 2023 Spooked by the 2022 gas crisis, the European Commission wants to boost long-term electricity contracts at fixed terms to shield consumers. That’s wiser than splitting the whole power market. Yet while it might aid green investment, it won’t curb prices in the short term.
Germany’s electricity headache has an M&A cure 6 Mar 2023 Berlin may spend over 20 bln euros on the local unit of Dutch-owned TenneT. Every country’s power grid needs an overhaul to make it fit for the green transition, but Germany’s need is especially pressing. Still, relatively low debt also makes it easier to take swift action.
Saboteurs add new twist to U.S. outage problem 5 Dec 2022 Over 40,000 customers were plunged into blackouts out after attacks on two U.S. substations. Vandalism on the power grid is costly to secure against, but utilities continue to face much larger vulnerabilities. The threat from storms is orders of magnitude larger and growing.
Europe’s energy cap requires surgical precision 1 Sep 2022 The EU wants to curb surging power costs to avoid a recession. Capping wholesale gas prices will unavoidably dampen the market’s clear signal to reduce demand. Doing the same to electricity prices, especially in a focused and temporary way, looks smarter.
Climate both dries and drowns case for hydropower 31 Aug 2022 The IEA and others reckon hitting net zero requires doubling the energy source’s output. But aridity from China to the Americas highlights a big vulnerability. Flood risk is even more widespread. Add environmental degradation and hydropower is often more trouble than it’s worth.
Capital Calls: Uniper’s credit request 30 Aug 2022 Concise views on global finance: the German utility asks for a 4 billion euro credit line just weeks after securing a 15 billion euro bailout. But with gas demand easing and a German government levy on consumers yet to go into force, Uniper’s situation may improve.
Solar twine holds creaking Texas grid together 19 Jul 2022 Power in the Lone Star state has held up, despite record demand and past blackouts. Regulatory actions, like forcing plants to stay online, help, but they carry some costs and risks. The rapid growth of solar offers more durable aid, if not a solution.
TSMC can fix Taiwan’s stalled green transition 17 Dec 2021 Referendums on a nuclear power plant and a fossil-gas terminal spotlight the island’s 20% renewables target. Bureaucracy and red tape, though, have held up wind and solar projects. The local chipmaking champion’s voracious appetite for cleaner power offers a much-needed spark.
China’s power woes herald green transition strains 30 Sep 2021 Surging coal prices are largely to blame for shortages hitting factories and homes. Boosting fossil fuel imports may help but it jeopardises carbon-neutrality goals. It’s better to bear the pain now from resetting rates and weaning industrial polluters off cheap electricity.
Ida’s effects will linger, but not in GDP figures 31 Aug 2021 Rebuilding from the hurricane should mean economic growth recovers quickly, based on past storms. But disasters hit personal wealth, and in this environment could pressure wages and materials prices. The opportunity cost of disaster spending, too, cannot be measured.
Adani flies in Masayoshi’s place close to the sun 19 May 2021 Gautam Adani’s green energy firm is buying SoftBank’s Indian renewables ventures for a fair $3.5 bln. It’s part of aggressive plans to create the world’s largest clean power group. At least the new owner has a track record in scaling industrial businesses on the sub-continent.
Americans support a reliable grid, in theory 17 Feb 2021 Nearly 3 million Texans are without power days after a cold snap crippled infrastructure. Free market policies and the desire to avoid oversight deserve blame. Yet California’s power isn’t great either. Reliable grids are expensive. That’s unpopular for all political persuasions.
PG&E is squandering its bankruptcy 23 Jan 2020 The California utility’s latest restructuring plan helps wildfire victims and insurers. But PG&E would be left more indebted than when it started, and the Golden State has punted tough decisions. Being reliable, green, cheap and profitable at the same time remains a challenge.
Review: #MeToo comes out of the shadows 25 Oct 2019 The casting couch is a Hollywood trope, but it's real for many women. Yet exposing their mistreatment is daunting, and not just because it requires courage. Two books about the fall of media mogul Harvey Weinstein show the insidious role of legal agreements that muzzle victims.
Worst U.S. infrastructure shortage: political will 10 May 2019 A golden spike completed the Transcontinental Railroad 150 years ago. Long-distance power lines transporting renewable energy are arguably today’s equivalent. A decade-long project nearby shows today’s problems aren’t mountains, tech or economics, but red tape and nimbyism.
Siemens self-medicates with weak activist tonic 8 May 2019 The $96 bln industrial giant’s plan to slim down by spinning off its power business looks designed to pre-empt a shareholder rebellion. But the new entity’s complex structure and its odd bundle of clean and dirty energy assets could still draw the attention of a pushy investor.
South African power bailout puts consumers on hook 20 Feb 2019 A $4.9 bln government lifeline is the bare minimum needed to keep indebted utility Eskom afloat. Likely union resistance to mass layoffs means consumers will have to swallow higher electricity costs. President Cyril Ramaphosa can only hope hikes are delayed beyond a May election.
Deripaska markdown will persist at En+ and Rusal 28 Jan 2019 The Russian metals groups have been freed from U.S. sanctions. Though their shares have perked up, they still trade below pre-sanctions level. Given the risk of new penalties should previous majority owner Oleg Deripaska exercise control, the valuation gap will linger.