Page 13 - AfrElec Week 44 2020

AfrElec NEWS IN BRIEF AfrElec

among offshore wind companies is rising as 75 countries. Although uncertainty around Enel Green Power under equity.
governments look to transition from fossil COVID-19 will continue for the rest of the ENEL
fuels. Onshore wind farms, however, have year, our sustained leadership in onshore
been more financially successful in recent wind energy and the acquisition of MHI
years, with relatively easier installation Vestas Offshore Wind underline our progress RENEWABLES
allowing for a bulk production of wind energy towards becoming the global leader in
in a shorter amount of time. The US, Europe, sustainable energy solutions.” GreenCo Group receives
Japan and South Korea are gearing up for VESTAS
a surge in offshore wind energy in the next $1.5mn from DFIs
decade, with all eyes on Europe to see whether Enel opens Nxuba wind
the potentially lucrative renewable energy will Africa GreenCo Group has received $1.5mn
help with their bold climate targets set earlier farm in SA from two development partners, notably
in the year. InfraCo Africa.
WORLD ECONOMIC FORUM Enel Green Power is now injecting 140 MW The investment company of the Private
into the power grid of the South African Infrastructure Development Group
Vestas raises revenue by public company Eskom thanks to its new (PIDG) has allocated $500,000. The Danish
wind farm. The facility in Nxuba (Eastern
government’s Investment Fund for Developing
31% Cape Province) was recently commissioned by Countries (IFU) is contributing $1mn.
the renewable energy subsidiary of the Italian
The funds will enable the establishment of
In the third quarter of 2020, Vestas generated Enel Group. GreenCo Power Services, the subsidiary of
revenue of €4,770m – an increase of 31% On October 27th, 2020, Enel Green Power Africa GreenCo Group in Zambia.
compared to the year-earlier period. EBIT inaugurated the Nxuba wind farm, which The Lusaka-based company wants to
before special items amounted to €412m, cam onstream approximately two years after become a major player in the electricity sector.
resulting in an EBIT margin before special the Italian Enel Group’s renewable energy In concrete terms, it purchases electricity
items of 8.6%, compared to 11.8% in the third subsidiary Enel began construction. from renewable sources from Independent
quarter of 2019. Free cash flow amounted According to Enel Green Power, the wind Power Producers (IPPs). Unlike the state-
to €546m, compared to €205m in the third power project involved 2 million hours of owned Zambia Electricity Supply Corporation
quarter of 2019. work. The energy company called on the (ZESCO), which resells electricity to
The quarterly intake of firm and services of private individuals and small and households, GreenCo Power Services’
unconditional wind turbine orders amounted medium-sized enterprises (SMEs) of the Blue subscribers include commercial and industrial
to 4,232 MW. The value of the wind turbine Crane Route and the local municipalities establishments.
order backlog was €14.6bn as at 30 September of Raymond Mhlaba to support it in the GreenCo Power Services mainly markets
2020. In addition to the wind turbine order implementation of the wind project. This is renewable energy. It is this approach to
backlog, at the end of third quarter 2020, the case for Adelaide, Cookhouse, Somerset sustainable development that has caught the
Vestas had service agreements with expected East and Bedford. attention of InfraCo Africa, a very active
contractual future revenue of €19.3bn. Thus, Enel Green Power will operate the wind investor in the renewable energy sector in
the value of the combined backlog of wind farm and inject the electricity produced into Africa.
turbine orders and service agreements stood the grid of the South African public utility “This is an important step in scaling up
at €33.9bn – an increase of €1.1bn compared Eskom for 20 years, under a power purchase investment in renewable energy to help
to the year-earlier period. agreement (PPA) between the two companies. mitigate climate change, improve security of
Vestas maintains its full-year guidance The Nxuba wind farm is one of five supply and increase the efficiency of the power
for 2020: Revenue of €14-15bn, an EBIT projects awarded to Enel Green Power under sector while taking advantage of Zambia’s
margin before special items of 5-7%, and total South Africa’s Renewable Energy Supply geographical position in the Southern
investments below €700m. Programme (REIPPP). The other four parks African power pool,” says the London-based
Group President & CEO Henrik Andersen are under development at Oyster Bay, Garob, investment company.
said: “Vestas achieved its highest ever Karusa and Soetwater. They will each have a Outside Zambia, GreenCo Power
deliveries in a single quarter and grew revenue capacity of 140 MW, giving a total output of Services aims to expand its business model
31% year-on-year to EUR 4.8bn, although the 700 MW for the five wind farms. According to other Southern African countries with the
widespread impact of COVID-19 continued to Enel Green Power, 460 GWh of wind objective of encouraging the exploitation of
in the third quarter. Our momentum towards power will be injected into the South African the region’s huge renewable energy potential
the end of the year continued to grow, which national electricity grid each year. The “to support economic recovery and provide
contributed to an EBIT margin before special installations are also expected to prevent the clean and affordable energy to its citizens.
items of 8.4%. With total order intake of 4.2 emission of 500,000 tonnes of CO2 into the The GreenCo model offers key innovations
GW from all regions and stable pricing, the atmosphere over the same period. in the architecture of the electricity market
demand for wind energy remained strong The implementation of the wind projects and provides greater value added, with
in the quarter, even though green stimulus will require an investment of €1.2 billion. In higher power generation and improved
packages are yet to materialise. Service 2018, Enel Green Power has signed financing security of supply – in partnership (rather
achieved a high EBIT margin of 28.6% and agreements with Nedbank and Absa. The than competition) with established industrial
grew by 14% compared to the same quarter two South African banks lent 950 million players,” says Africa GreenCo Group.
last year, ensuring a combined order backlog euros, i.e. 80% of the cost of the project. The
of EUR 34bn and stable energy supply in remaining €250 million will be invested by

Week 44 05•November•2020 www. NEWSBASE .com P13