Page 14 - AsiaElec Week 05 2021

AsiaElec NEWS IN BRIEF AsiaElec

will be defeated if ENGIE does not turn coal
phase-out into an opportunity to switch to
renewables.”
EMBER

WIND
CDPQ invests $2.7bn in

Taiwan offshore wind farm

to permitting issues. However, ENGIE’s Science Based Target An offshore wind farm project in Taiwan has
Nevertheless, offshore wind developers initiative (SBTi) accreditation is for 2°C. received a $2.7bn investment from Canadian
stayed committed to their ambitions and This is not aligned with the Paris Agreement institutional investor Caisse de dépôt et
continued to make final investment decisions objective of well below 2°C and, in October placement du Québec (CDPQ).
for projects in 2020. The UK sanctioned 2019, the SBTi stopped accepting target CDPQ’s co-investment into the 605MW
more than 4.7 GW of offshore wind and the submissions for 2°C. Greater Changhua 1 Offshore Wind Farm
Netherlands followed with over 2.2 GW. As a Ember said that there were key risks in (Greater Changhua 1) alongside local investor
result, major projects such as Triton Knoll in ENGIE’s transition strategy. Cathay PE, will result in their acquisition of a
the UK, Borssele 3 & 4 in the Netherlands and To limit global warming to 1.5°C above 50% stake in the wind farm.
Kriegers Flak in Denmark are expected to be pre-industrial levels, the International Greater Changhua 1 is being developed
completed during 2021. Panel on Climate Change (IPCC) identifies and constructed by Ørsted.
In the second half of last year, almost the need for net zero emissions and a full The equal share partnership is the first
25 GW of capacity was added to the global decarbonisation of electricity generation of its kind in the Asia Pacific offshore wind
backlog. Currently, Brazil has no operational by 2050. In the power sector, this means sector. It is hoped that the investment will help
offshore wind capacity, but its backlog grew that OECD nations need to end coal use for drive the creation of further opportunities in
significantly during 2020 as the country added electricity production by 2030 and coal-fired the Taiwanese market.
more than 15 GW to the drawing board. power stations must be shut down in the rest For CDPQ, this is its first direct investment
In addition, other regions in Asia outside of the world by 2040. in Taiwan, made via its infrastructure team
China are preparing for a ground-breaking The absence of a comprehensive coal which has maintained a strong track record
year, Taiwan and Vietnam have finally started phase-out schedule means that ENGIE’s for investments in the renewable energy
to add significant volumes to their project current strategy is not aligned with the industry.
pipelines – making 2021 a year to look objectives of the Paris Agreement. To mitigate Greater Changhua 1, which will be located
forward to in the offshore wind market. its risks and meet its climate obligations, off the coast of Changhua County, will
RYSTAD ENERGY ENGIE needs to urgently address its coal generate a capacity of approximately 605 MW,
phase-out plan and escalate investment in supplying clean energy to more than 650,000
low-carbon electricity rather than commit to Taiwanese households.
RESULTS the deployment of fossil gas and biomass. The project’s construction has already
Sarah Brown, Senior Analyst, Ember, said: begun and is expected to be completed in
ENGIE needs to do more to “ENGIE announced in 2016 that it would stop 2022.
generating electricity from coal, but it still
Head of infrastructure and executive vice
meet climate targets has no confirmed closure dates for 70% of its president at CDPQ, Emmanuel Jaclot, said in
a statement that the investment will enable
remaining coal-fired power plants. And while
France’s ENGIE has approximately 100GW of ENGIE aims to make up 58% of its electricity CDPQ “to further diversify [its] presence in
installed electricity generation capacity, and generation by 2030, it also intends to convert Asia”, adding that the company seeks “this
since 2016 has reduced its output of electricity coal-fired power plants to fossil gas and kind of greenfield opportunity to contribute to
from coal from 15% to 4% today. biomass. This strategy comes with financial the transition towards a low carbon economy”.
Fossil gas is its primary electricity fuel and environmental risks.” Ørsted head of partnerships and structured
source at 54%. Lucie Pinson, Founder & Executive solutions and vice president, Kunal Patel,
However, ENGIE announced in 2016 Director, Reclaim Finance, said: “Has ENGIE also stated: “With a long term agenda in
that it would stop producing electricity from recently given up importing shale gas into Taiwan, we remain committed to the Greater
coal, however it still does not have confirmed France to supply its power plants in Chile? Changhua 1 project and will also reutilise the
shutdown dates for 70% of its remaining coal- This is a crucial question to which ENGIE’s capital into further developing new offshore
fired power fleet, Ember said in a report. shareholders are entitled to expect answers. wind projects to assist Taiwan in achieving its
ENGIE’s goal is to have renewables While 23 French financial players expect energy transition goals.”
providing 58% of its total power generation ENGIE and their other coal customers to ØRSTED
by 2030. It intends to convert coal-fired plants adopt a coal exit plan, many of them have
to fossil gas and biomass as a key component also committed to align their activities with
of its global electricity transition. It may a carbon neutral or Paris Accord objective.
source shale gas with high levels of methane Their own objective, already weakened by
emissions for its fossil gas plants. the fact that ENGIE has only a 2°C strategy,

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