Press release | 2010-06-21 | 15:45 PM

Energy News Europe - week 24, 2010


Iberdrola abandons Kozloduy NPP project plans

Dnevnik, 2010-06-14
Spain's Iberdrola has abandoned plans to participate in the construction of new nuclear reactors at Bulgaria's Kozloduy Nuclear Power Plant (NPP). It is not known whether any other companies are in line to take Iberdrola's place.
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Czech Republic

State wants more influence in CEZ

Financni Noviny, 2010-06-13
The Czech Finance Ministry wants to increase its influence in CEZ, an energy company, where the state is a majority owner. The ministry will initiate changes at the next general meeting with a focus on strengthening its position in selecting suppliers for construction of two new blocks of the nuclear power plant in Temelin. Media reports say that the proposed changes are opposed by some members of the CEZ management board. The general meeting is scheduled for 29 June 2010.
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The largest solar heating plant in the world

Politiken, 2010-06-12
The largest solar heating plant in the world is to be built on Danish island of Ærø. The EU has granted DKK 46mn (EUR 6.19mn USD 7.55mn) to the project, which includes a 18,365 sq. metres plant. Heating storage facilities totalling 75,000 sq. metres will also be the largest in the world.
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Dong Energy's listing cancelled

Børsen, 2010-06-18
The Danish government has in practice decided to give up the plans for the listing of the state-owned energy group Dong Energy, according to business daily Børsen's sources. The sources say that the government's official line is still that the listing has been only postponed due to uncertain market conditions but that realistically the plans have been called off. The main reason for the reluctance to sell off Dong Energy is concern about the safety of electricity supply as Dong Energy controls 70% of total energy production.
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Eesti Energia invests EEK 900mn in wind farm

Äripäev, 2010-06-18
In Estonia, the state-owned power utility Eesti Energia's supervisory council has approved the building of the 39 MW capacity wind farm near Narva, in the former shale ash deposit. The wind farm of 17 turbines, will be put into production in 2012. The prime contractor, Nordecon, will roll out the building of the wind farm in the summer of 2010.

The total cost of the turnkey wind farm project is EEK 900mn (EUR 57.52mn USD 71.27mn). The yearly electricity generation capacity of the wind farm reaches 90 GWh. Eesti Energia claims the building of the wind farm in the former ash deposit area is a green move.
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EWEA predicts 10 GW of new wind energy capacity for 2010

Your Renewable News, 2010-06-14
Some 10 GW of new wind power capacity is set to be installed in the EU during 2010, according to a forecast made by the European Wind Energy Association (EWEA). This will raise the total installed capacity in the region by 13% to nearly 85 GW. In 2009, 10.163 GW of new wind power was set up, making up 39% of all new installed power capacity during the year.

EWEA has pointed out that 2010 will see delivery of orders placed after the start of the financial crisis, showing that there is still strong investment interest in wind energy. The new capacity in 2010 is expected to be set up in France and Italy, with 1 GW each, and installations in new EU member states such as Romania and Bulgaria are expected to double.

The UK is also expected to report good growth in wind energy capacity, while Germany is set to take top spot for the largest market. Spain, however, is expected to see a decrease.
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NIB ready to finance ownership changes in Fingrid

Kauppalehti, 2010-06-15
Finnish power companies Fortum and Pohjolan Voima will have to give up their ownership of Finnish electricity transmission system operator Fingrid in 2012. According to the Nordic Investment Bank (NIB), the bank will be pleased to participate in funding ownership transfers and investments in the grid when needed.

NIB invested over EUR 1bn in the environmental and energy sectors in 2009. In April 2010, NIB decided to expand its loan programme to allocate EUR 2bn to investments that prevent climate change and promote energy efficiency and renewable energy.
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RWE not to build further new coal-fired power stations

Financial Times Deutschland, 2010-06-16
According to Leonhard Birnbaum, Chief Strategy Officer of German energy group RWE, the construction of new coal-fired power stations in the European Union does not make economic sense under the current framework conditions. Thus, RWE will not build further coal-fired power stations. The group will just complete two coal-fired power stations currently under construction in Germany.
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Polish group PGE interested in nuclear power project

Rzeczpospolita, 2010-06-13
Polish energy producer Polska Grupa Energetyczna (PGE) is interested in taking part in the construction of a nuclear power plant Ignalina II in Lithuania. It is estimated that to do that, PGE would have to invest over PLN 2bn (EUR 486.12mn USD 592.99mn).

Decision about possible investors from Poland and other Eastern European countries will be taken by a strategic investor with a 51% share in the plant which is to be chosen before the end of 2010. In total the Ignalina II investment is to cost EUR 4bn (USD 4.88bn).
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Oxxio sale delayed, price less than initially expected

De Telegraaf, 2010-06-16
UK-based Centrica has refused to give a new transaction date for the divestment by Dutch energy provider Oxxio. It had originally stated the transaction would be finalised by 30 June 2010 but experts believe late summer may be possible. In Centrica's accounts, Oxxio is currently worth around GBP 50mn (EUR 60.08mn USD 73.99mn) compared with an initial purchase price of GBP 95mn in 2005.

Analysts believes the transaction sum will be between GBP 60mn and GBP 80mn, compared with expectations in early 2010 of a sum exceeding the purchase price.
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Fortum might build heat and power plant in Wroclaw

Gazeta Wyborcza, 2010-06-11
The Finish concern Fortum is considering the construction of a new heat and power plant in Wroclaw which will be fuelled with gas or coal with biomass additives. In the meantime, the company is interested in the construction of waste burning facilities and nuclear power facilities in Poland. In autumn 2010, it will open a biomass and coal power plant in Czestochowa, the construction of which cost EUR 130mn (USD 157.72mn).
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Lithuania not to buy electricity from Kaliningrad nuclear plant

Baltic News Service, 2010-06-16
Lithuania will not buy electricity from the planned new nuclear plant in Russia's Kaliningrad, said Lithuania's Prime Minister, Andrius Kubilius. He said Lithuania would focus on its own nuclear plant project. Other nuclear plant projects will only concern Lithuania in relation to environmental safety, he said.

Mr Kubilius pointed out that Kaliningrad's energy generation capacities are already fully covered. With the launch of the planned nuclear plant in Kaliningrad, the region's electricity output will exceed its needs. Russia would therefore wish to export surplus power to neighbouring Lithuania and Poland.
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Parliament lifts ban on new nuclear power reactors

Dagens Industri, 2010-06-18
Swedish parliament has voted to allow new nuclear power reactors to be built to replace old reactors. The vote was 174 in favour and 172 against. Parliament has agreed that the state should not subsidise new nuclear power reactors and that there is no ceiling to liabilities for reactor owners in the event of an accident. Reactor owners must have an insurance policy or economic security for at least SEK 12bn (EUR 1.25bn USD 1.55bn).
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United Kingdom

Possible EDF Energy network sale hitch

Times Online, 2010-06-14
EDF Energy's plans to sell its UK electricity distribution network may be delayed due to a row over a pension fund deficit believed to total GBP 100mn (EUR 119.70mn USD 146.02mn)-GBP 200mn. The French group had been in talks with pension scheme trustees over a change-of-control clause that obliges the retirement plan to be topped up by any new owner.

Final bids for the network, which supplies power to 7.8mn South-East homes, are due on 21 June 2010. Pension fund Borealis and utility Scottish & Southern Energy are in discussions to boost their bid with a third party.
© Esmerk