Latest news with #EnergySupply
Irish Times
4 days ago
- Business
- Irish Times
Failure to provide gas storage puts Ireland at risk of major power outages, EY says
Power cuts like those seen in Spain and Portugal could be a danger for Ireland if the Government does not provide for storing natural gas, according to a leading industry figure. This State has no natural gas storage, or a liquefied natural gas ( LNG ) terminal, despite relying on the fuel to generate close to half of all electricity. The Republic ultimately risks 'interruptions to supply' of this key energy source if it does not deal with this question sooner rather than later, Sean Casey, industrials and energy industry leader at EY said. Natural gas generates 40 per cent of Irish electricity, Mr Casey noted, with the State importing 80 per cent of its natural gas via the UK. Its only home-grown source of the fuel, the Corrib field, is dwindling. READ MORE He warns that we recently saw in Iberia what interruptions specifically to electricity supplies can do. 'An interruption in supply would be catastrophic for some industries and some businesses, but ultimately that is what you are trying to avoid,' Mr Casey says. He stresses that he is neutral about what option Government chooses but argues that the State needs a gas reserve. 'Ultimately I would like to see us get on and do that, whichever project is put forward.' New figures from national grid operator EirGrid show that more than 52 per cent of electricity used here in July was generated by burning fossil fuels, most of which was natural gas. The Republic imported about 15 per cent from Britain. Mr Casey supports Climate Action Plan aims to electrify heat and transport but says natural gas will continue to play a big part in aiding the Republic's move to renewable energy. Darragh O'Brien , Minister for Climate, Energy and the Environment, recently announced plans to oblige businesses selling oil and gas for heating to include renewable fuels in their supplies. Mr Casey argues that this is a welcome move and says the Republic should push on with plans to increase the use of renewable gas. The State has a modern gas network comprising 14,000km of pipelines, run by Gas Networks Ireland (GNI), where Mr Casey was chief executive for three years. He maintains that the State should continue to use this as it continues the transition to green energy. Mr Casey held senior posts in Irish energy companies and utilities for several decades, including GNI, its one-time parent, Ervia, the ESB and Bord Gáis Energy. The main challenge facing businesses he now advises in the industry is getting projects through the Republic's planning process to completion. Energy prices remain a key concern for Irish business. One of the State's biggest employers, microchip maker Intel, recently warned the Government that high prices threaten the Republic's ability to lure job-creating investment. Prices have fallen since the surges in 2021 and following Russia's invasion of Ukraine in 2022. However, they still remain high relative to what they were before that period, while energy has never been cheap here. 'I do not see any major reduction [in price] right now, but nor do we see any spikes but that is contingent on factors that are out of our control,' says Mr Casey. On the plus side, he notes that stability is as important to many EY clients as the actual price. 'A real understanding of where it is going will allow them to make the decisions they need to make as they move forward,' he says.
Yahoo
10-05-2025
- Business
- Yahoo
Alliant Energy Corp (LNT) Q1 2025 Earnings Call Highlights: Strong Start with Increased EPS and ...
Earnings Per Share (EPS): $0.83 for Q1 2025, compared to $0.62 for Q1 2024. 2025 Earnings Guidance: Reaffirmed at $3.15 to $3.25 per share. Capital Expenditure Plan: Increased by approximately $600 million from November 2024 update, totaling $11.5 billion for 2025-2028. Revenue Drivers: Higher revenue requirements from capital investments at IPL and WPL. Temperature Impact: Warmer than normal temperatures decreased electric and gas margins by $0.03 per share in Q1 2025. Customer Growth: Increased use per meter across all retail customer classes at Wisconsin utility. Financing Plan: Cash from operations and tax credit monetization make up almost 50% of financing; new debt financing accounts for approximately 40%; new common equity issuances account for approximately 12%. Safe Harbor Activities: Nearly all planned safe harbor activities completed for future energy storage and renewable projects through 2028. Warning! GuruFocus has detected 9 Warning Signs with LNT. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alliant Energy Corp (NASDAQ:LNT) reported a strong start to 2025, achieving more than 25% of their earnings guidance midpoint in the first quarter. The company has executed energy supply agreements totaling 2.1 gigawatts of demand, representing a significant increase in peak demand. Alliant Energy Corp (NASDAQ:LNT) has updated its capital expenditure plan, reflecting a nearly 26% increase from 18 months ago, with a forecasted investment CAGR of nearly 11% from 2024 to 2028. The company is well-positioned with safe harbor activities for renewable and energy storage projects, ensuring tax credit qualification through 2028. Alliant Energy Corp (NASDAQ:LNT) reaffirmed its 2025 earnings guidance range of $3.15 to $3.25 per share, supported by strong financial performance and strategic initiatives. Warmer than normal temperatures in the first quarter of 2025 negatively impacted electric and gas margins by $0.03 per share. Higher depreciation and financing expenses partially offset the positive drivers of the company's financial performance. The company faces potential risks from legislative changes, such as the repeal or scaling back of the Inflation Reduction Act (IRA) and tax credits. Alliant Energy Corp (NASDAQ:LNT) anticipates the need for $1.4 billion in new common equity issuances through 2028, which could impact shareholder value. The company is exposed to a 20% tariff on batteries sourced from China, although it remains the lowest cost option compared to domestically produced batteries. Q: Can you provide a timeline for converting mature opportunities to contracts and explain how you plan to serve these opportunities with existing and new generation? A: Lisa Barton, President and CEO, explained that they differentiate between signed Energy Supply Agreements (ESAs) and those in negotiation. They have high confidence in the latter due to ongoing discussions. They plan to use a mix of existing resources, short-term Power Purchase Agreements (PPAs), and new developments to meet demand, leveraging near-term capacity length to accelerate load growth. Q: With the safe harboring activities, is there still a need to revisit the Iowa rate case if policy changes significantly? A: Robert Durian, CFO, stated that while there is a provision to revisit the rate case if major legislation changes, the focus is on avoiding this by advocating for beneficial legislative provisions, accelerating load growth, and leveraging safe harbor activities to meet stakeholder expectations without revisiting the rate case. Q: Do you still see a 5% to 7% long-term EPS CAGR, and how are you trending in that plan? A: Robert Durian confirmed the focus on consistent growth, aiming to strengthen and extend growth rates. The updated investment CAGR of 11% supports this, with expectations to be at the top end of the growth rate by 2027. Lisa Barton highlighted the Alliant Energy Advantage, emphasizing their role in community economic development and regulatory flexibility. Q: How would the potential loss of transferability affect your equity needs, and what financing strategies might you employ? A: Robert Durian noted that they are cautiously optimistic about legislative outcomes and are well-protected for the next few years due to safe harbor activities. If additional financing is needed, they would maintain a strong balance sheet, potentially using 40% to 50% equity for new financing needs. Q: How does the MISO capacity auction impact consumer bills and the regulatory landscape? A: Robert Durian explained that Alliant Energy is well-positioned, using excess capacity to benefit customer bills. Elevated capacity prices support their strategy to build new generation to meet customer demand, while others may face challenges due to shortfalls. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
