Page 12 - AfrElec Week 05

AfrElec
NEWS IN BRIEF
AfrElec
maybe even half the cost of those peakers”, Reuters quotes him on Eskom’s open-cycle gas turbines.
FUELS
Eskom and Transnet in talks on coal supplied by rail
South Africa’s heavily indebted state power rm, which is struggling to keep the nation supplied with power, is in talks with Transnet to increase the tonnage and lower the price of coal transported by rail, the state logistics rm said.
Eskom, which has been trying to procure coal at the right price and quality, has regularly cut power supplies in the past year because of unreliable coal- red plants.
“ e opportunity here is to work at the quality of coal and the sourcing of coal from the right mines to the right power stations,” Transnet chief customer o cer, Mike Fanucchi, told reporters on the sidelines of the mining Indaba conference in Cape town.
Transnet, which operates much of Africa’s rail network, the bulk of it in South Africa, aims to move 11.5 million tonnes of coal in the nancial year starting in April this year and 14 million tonnes in the following year.
WIND
Global onshore wind
industry to reach maturity
in 2020s
Solar power has emerged as the biggest
threat to onshore wind’s dominance in the decarbonisation battle. However, the tools available to the wind sector to combat this challenge are diminishing, according to Wood Mackenzie.
e evolutionary marathon that occurred during the last decade will continue in
2020 and beyond, although constraints on technology innovation are on the horizon for onshore turbines.
While further cost reductions could
occur within the industry, the low hanging fruit has already been picked. Additional reductions will be marginal and dependent on the extended value chain as turbines reach maturity.
Dan Shreve, Wood Mackenzie Head of Global Wind Research, sees three key themes:
a nal round of consolidation; transmission investment key to changing market growth trajectory and repowering running into recycling issues
Shreve said: “In some ways, the wind energy market is beginning to resemble the natural gas CCGT market.
“ e nal wave of consolidation is already upon us within wind turbine OEM ranks. Senvion has folded, Suzlon is under re from investors in India and Enercon is reeling a er the collapse of the German onshore market.
“Siemens acquired Gamesa in 2017, while Vestas joined ranks with Mitsubishi Heavy
in 2013. e Nordex group will likely come back into play once the US market comes back down to earth in 2023, which will add an additional strain on western turbine OEMs who are locked out of a booming Chinese market.
“If regional giants fall prey to global corporations, it is feasible that 98% of the western wind market will fall under the control of three companies. A similar dynamic is likely to occur within the Chinese wind energy market, especially given the highly concentrated asset owner segment within the country. e passing of industry pioneers is bittersweet, though likely a necessity to yield the next round of cost reductions for global wind.”
“Ground-breaking technology advancements generally fall within the o shore wind sector as opposed to the onshore industry.
“Key evolutionary changes in turbine tower design, blade materials and controls will cause further reductions in onshore wind’s LCOE, however none can be considered true game changers.
“We have previously outlined the primary barriers to the decarbonisation of the US power grid, most notably a lack of bulk transmission investment to support the expansion of wind power.
WOOD MACKENZIE
Vestas orderbook rises by 2.6GW
Vestas posted revenues of EUR12.1bn
for 2019, with total investments reaching EUR729m, all in line with the expectations.
Compared to 2018, revenue and earnings increased while free cash ow decreased. Order intake increased in 2019 compared to 2018, and the value of the combined order backlog increased to EUR34bn.
e wind turbine order intake increased year-on-year by 3,663MW to 17,877MW in 2019 and the value of the service
order backlog increased by EUR3.5bn to EUR17.8bn.
For 2020, Vestas expects revenue to range between EUR14bn and 15bn, including service revenue, which is expected to grow by 7%.
Vestas expects to achieve an EBIT margin before special items of 7-%9, with a service EBIT margin of 25%.
Total investments are expected to amount to EUR700m in 2020.
e Board of Directors proposed a dividend of DKK7.93 per share, compared to DKK7.44 last year, and equivalent to 30%% of the net pro t for the year.
“Wind energy manifested its position
as a leading global energy source in 2019, driving Vestas’ order intake to a record 17.9 GW, 20% growth in revenue and expected high activity levels in the coming years. In an extraordinarily busy year, Vestas extended
its industry leadership, met its guidance on all parameters and scaled the company to deliver on our highest-ever order backlog of EUR34bn. Once again, our Service business delivered year-on-year growth and improved pro tability, underlining its strategic importance in a tough market. In 2019, the industry thus faced challenges from trade wars and tari s, causing execution costs
to increase, which we expect to continue
P12
w w w. N E W S B A S E . c o m
Week 05 06•February•2020