Europe’s renewable demand to continue to grow
The Association of Issuing Bodies (AIB) has released findings that suggest that the renewable energy demand in Europe is set to continue growing.
As documented with Guarantees of Origin, Europe’s demand for renewables grew by 28.3%, from 367 TWh in 2016 to 471 TWh in 2017.
“The renewable electricity market in Europe continues to grow steeply,” Tom Lindberg, Managing Director of ECOHZ, commented on the figures.
“The market is also more robust and more balanced than ever before.”
“Although the growth is more evenly dispersed than earlier, the large countries still play an important role.”
“Germany and France are both showing significant increase in customer uptake, and Germany has for the first time surpassed 91 TWh in total demand.”
Europe’s market prices for renewables are also reflecting the increased interest in the industry.
“With even the lowest prices hovering around EUR 0.65 for a standard, unspecified Guarantee of Origin in the wholesale market, the total market value has reached new levels,” Linberg added.
“When also including volumes from markets using non-EECS Guarantees of Origin (150-180 TWh), the value of the European market is conservatively estimated to be EUR 450 million. This is more than two to three times higher than a year ago.”
Wind and solar are the fattest growing renewable energy generators, despite hydropower being the largest source.
“It is likely that the share of wind and solar would be even higher if countries like Germany and France did not limit the issuing of Guarantees of Origin from power plants that have received support.”
“As many of these power plants are either wind or solar, the result is a constricted supply from the newest technologies.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.