Latest news with #electricitydemand
Trade Arabia
3 days ago
- Business
- Trade Arabia
Mubadala, Taqa complete acquisition of 875MW Uzbek power plant
Abu Dhabi sovereign investor Mubadala has announced that it has teamed up with Abu Dhabi National Energy Company (Taqa) for acquiring a gas-fired power generation plant at the Talimarjan Power Complex in Uzbekistan. Mubadala and Taqa each hold a 40% stake in the 875 MW TPP1 combined-cycle gas-fired plant through a newly established project company, Talimarjan Power Plant 1. The 875 MW TPP1 plant has a Power Purchase Agreement (PPA) with JSC 'Uzenergosotish' (UES) (successor power purchaser to National Electric Grid of Uzbekistan (JSC) for 25 years and plays a critical part in meeting demand for electricity in Uzbekistan as the country continues to experience rapid population and economic growth. Both Mubadala and Taqa each have a 40% stake in the Talimarjan Operations & Maintenance (O&M), which was established to operate the plant, while Uzbekistan's 'Talimarjan Issiqlik Elektr Stansiyasi' (TIES) holds the remaining 20% stakes in both the project company and the O&M entity. Hammad Rahman, Head of Asia Pacific Infrastructure at Mubadala, said: "Mubadala is committed to supporting countries across the world to meet their energy needs while reducing carbon emissions. Efficient natural gas-fired powered plants such as TPP1 will play an important part in enabling the transition to cleaner sources of energy." He pointed out that Uzbekistan was recording a significant growth in demand for power, and Mubadala looked forward to working with Taqa and its local partner TIES to ensure communities and businesses across the country have access to reliable, affordable and secure power supply that supports progress and socioeconomic development. Frank Possmeier, Chief Investment Officer, Generation at Taqa, said: "We are pleased to collaborate with Mubadala and TIES in acquiring this vital asset that plays a crucial role in Uzbekistan's journey towards a privatised energy sector." This transaction supports investments into the privatisation of Uzbekistan's power sector. It follows a strategic partnership between the governments of Uzbekistan and the UAE whereby Mubadala and Taqa will bring their global power sector expertise to the local power market in Uzbekistan. "As a low carbon power and water champion, Taqa will leverage its extensive experience and expertise to help Uzbekistan meet its growing energy needs while continuing to invest in this critical sector," he stated. "Our stake in TPP1 demonstrates progress in delivering on our 2030 targets which aim to grow our power generation capacity to 150 GW and strengthens our operation and maintenance capabilities which is also a pivotal element of our strategy. We are committed to enhancing efficiency and ensuring TPP1 runs as a world-class power plant as part of our expanding portfolio as we continue to provide power to the communities we serve," he added.
Bloomberg
4 days ago
- Business
- Bloomberg
Cooking Gas Shortage in Cuba Fuels Electric Demand, Deepening Energy Crisis
Top Cuban officials took to the airwaves as a shortage of cooking gas on the communist-run island prompted an unusual spike in electricity demand that's now exacerbating blackouts. President Miguel Diaz-Canel said electricity demand is exceeding 3,500 megawatts at certain times of the day — about 250 megawatts more than usual — and outstripping the island's 1,935 megawatt capacity.
Forbes
23-05-2025
- Business
- Forbes
Why NuScale Stock Is Surging In 2025?
Photo byNuScale Power Corp (NYSE: SMR) has experienced a remarkable 33% increase in 2025, significantly exceeding the S&P 500's 0.6% decline. This surge reflects growing investor confidence in NuScale's distinctive position within the nuclear energy industry, propelled by rising electricity demand amid the AI boom and the swift progression of global electrification. NuScale is leading the charge in the development of small modular reactors (SMRs)—safer, factory-manufactured alternatives to conventional nuclear plants. It is the sole holder of a U.S. Nuclear Regulatory Commission (NRC)-certified SMR design and enjoys strategic and technical backing from its majority owner, Fluor Corporation, providing it with a significant competitive advantage. The stock's upward trajectory is driven by a mix of regulatory benefits, project advancements, and positive macro trends. We examine these elements further below. While the potential for the stock's growth is enticing, investing in a single, early-stage stock like NuScale carries its own set of risks. Conversely, the Trefis High Quality (HQ) Portfolio, which consists of 30 stocks, has consistently outperformed the S&P 500 over the past four years. What accounts for this? Collectively, HQ Portfolio stocks have offered superior returns with reduced risk compared to the benchmark index, providing a smoother ride as demonstrated in HQ Portfolio performance metrics. The electricity demand in the U.S. is rising sharply due to the expansion of data centers and the transition to electric vehicles. Nuclear energy is experiencing a resurgence as a dependable, carbon-free alternative to fossil fuels. NuScale is preparing to provide six SMRs to Romania's RoPower, which will create a 462-megawatt nuclear facility. Pre-orders for long-lead-time components are currently in progress, and updates on this initiative will be closely monitored. A final investment decision from RoPower is anticipated later this year—a possible trigger for additional stock movement. Furthermore, NuScale expects NRC approval by July 2025 to increase its module capacity from 50 MWe to 77 MWe and is engaging in discussions with up to ten prospective customers, aiming for a confirmed customer order before the year's end. NuScale's earnings for the first quarter surpassed expectations, showing $13.4 million in revenue, a substantial rise from $1.4 million a year prior and well above the analyst projections of $3.4 million. This increase was propelled by advancements in its FEED Phase 2 Project with Fluor and a technology licensing agreement for Romania's RoPower Doicesti power plant. Cost management strategies also played a role in enhancing financial results. Operating expenses decreased to $42.3 million, down from $44.6 million, which helped narrow the operating loss from $44 million to $35.3 million. Despite the recent upward trend, NuScale remains a speculative investment facing a number of significant challenges. The company deals with supply chain issues, as the nuclear industry relies on a limited pool of specialized suppliers, posing an obstacle that could impede scalability. Project timelines are extensive, with commercial rollout not anticipated until the early 2030s. Additionally, exposure to tariffs and escalating construction costs represents further risks to NuScale's long-term financial health. It should also be acknowledged that stocks can decline dramatically – 20%, 30%, or even 50% –as witnessed during previous market shocks. No stock is exempt. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes.
Malay Mail
12-05-2025
- Business
- Malay Mail
Air-con over gold: How brutal heat is reshaping priorities in a rapidly warming India
NEW DELHI, May 13 — Aarti Verma is about to join the growing ranks of Indians installing air conditioning, scraping together savings to secure relief from sometimes deadly temperatures that can reach nearly 50 Celsius. A record 14 million AC units were sold in India last year, with a ninefold increase in residential ownership forecast by mid-century. That will give millions safer and more comfortable conditions at work and home. But it will also drive demand for electricity that is generated mostly by burning climate-warming coal, and increase the hot AC exhaust air expelled into the country's stifling streets. For Verma, the priority is securing some immediate relief. Her sales and marketing work means she must visit multiple stores a day, battling blazing heat. 'Coming home after a long day I want some comfort,' said the 25-year-old, who earns 30,000 rupees (RM1,510) a month and will pay 50,000 rupees (RM2,516) to install air conditioning in her spartan two-room home. 'Earlier I would sleep on the terrace, but these days it's so hot even in the night, AC has become a necessity,' she told AFP in a poor neighbourhood of the capital Delhi. India is the world's fastest-growing AC market, despite only about seven per cent of households currently owning units. The boom could mean the world's most populous country needs to triple electricity production to meet demand, experts say. The nation of 1.4 billion people is already the world's third-biggest producer of climate-warming greenhouse gases, burning through one billion tonnes of coal in 2024-25, according to a government statement. Brutal summer 'AC penetration across India is primarily driven by weather conditions, a growing middle class, favourable consumer financing options and widespread electrification,' said K.J. Jawa, the India chief of Japanese AC manufacturer Daikin. 'Today, ACs are no longer regarded as a luxury indulgence, but a productivity and need investment — as a good night sleep is imperative for our mental and physical wellness,' he told AFP. Verma had to pay 13,000 rupees as a down payment, with the rest divided over monthly instalments. 'I could have bought gold with that money which would have been a good investment but I gave priority to the AC,' she said. Aarti Verma joins the growing ranks of Indians installing air-conditioning, scraping together savings to secure relief from sometimes deadly temperatures that can reach nearly 50 Celsius. — AFP pic According to the meteorological department, 2024 was India's hottest year since thorough records began in 1901, with sizzling temperatures following a global pattern of extreme weather driven by climate change. A heatwave in May 2024 in New Delhi saw temperatures match the capital's previous record high: 49.2 Celsius (120.5 Fahrenheit) clocked in 2022. The brutal summer heat can melt tarmac on the roads and puts millions of people at risk, with nearly 11,000 people dying due to heat stroke in India between 2012 and 2021, according to government data. Public health experts say the true number of heat-related deaths is likely in the thousands but because heat is often not listed as a reason on a death certificate, many casualties don't get counted in official figures. Ironically, the refrigerants inside AC units and the coal-generated electricity that powers them only exacerbate global warming. Widespread AC use also raises outdoor temperatures by expelling indoor heat. Studies — including by the World Health Organization and UN-Habitat — show that the heat-generating motors inside AC units can themselves push up temperatures in urban areas by a degree Celsius or more. Energy ratings Before buying an AC, Verma relied on a traditional air cooler — a noisy fan-run device that blows cool air off water-soaked pads. But filling the cooler with water and making sure it did not become a haven for disease-carrying mosquitoes required great effort. Sales are brisk at Imperial Refrigeration in Delhi's old quarters, with a steady stream of customers braving the afternoon heat. Japsahib Singh Ahuja, 22, whose family owns the 50-year-old business, said sales have more than tripled in the last five years, thanks to first-time consumers and AC 'replacement cycles'. 'ACs these days don't last long, because there are so many pollutants in Delhi air that lead to corrosion and gas leakage from the equipment,' he explained. Delhi and the surrounding metropolitan area, home to more than 30 million people, consistently top world rankings for air pollution. Air conditioning will account for a quarter of India's emissions and nearly half nationwide peak electricity demand by 2050, according to the UN Environment Programme's Cool Coalition. But India has so far declined to sign up to the coalition's Global Cooling Pledge to reduce the sector's climate impact. Still, there are signs of hope, with Indians increasingly buying energy-efficient AC units, according to Ahuja. Energy-saving inverter ACs now dominate the market, and companies set a default temperature of 24 degrees Celsius. 'Energy ratings are now mandatory,' said Ahuja. 'We will surely see long-term benefits.' — AFP
Forbes
09-05-2025
- Business
- Forbes
New Long-Term Deals Boost Constellation Energy
MIDDLETOWN, PENNSYLVANIA - OCTOBER 10: in this aerial view, the shuttered Three Mile Island nuclear ... More power plant stands in the middle of the Susquehanna River on October 10, 2024 near Middletown, Pennsylvania. (Photo by) Constellation Energy (NASDAQ:CEG) stock increased by roughly 10% on Tuesday, even though the company's Q1 results were mixed, with revenues exceeding estimates while earnings fell slightly below expectations. This increase is attributed to the company announcing it is close to finalizing long-term contracts for nuclear energy supply. These upcoming agreements provide Constellation with significantly better revenue predictability, catering to the rapidly growing U.S. electricity demand driven by server farms operating artificial intelligence applications, the increasing electrification of the automotive sector, and a shift away from fossil fuels in manufacturing. Additionally, the company claims that these contracts bolster the justification for its pending acquisition of Calpine for $16.4 billion, which is a leading operator of gas-fired power plants. Despite the more optimistic outlook, Constellation Energy stock may not be a solid buy at its present market price of approximately $275. We have identified a couple of issues regarding CEG stock despite its relatively reasonable valuation. We reach our conclusion by analyzing the current valuation of CEG stock against its operational performance in recent years as well as its present and historical financial health. Our examination of Constellation Energy across critical metrics such as Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company possesses a moderate operating performance and financial position, as described below. However, if you're looking for upside potential with less volatility than individual stocks, the Trefis High-Quality portfolio offers an alternative, having surpassed the S&P 500 and achieved returns of over 91% since its launch. Based on the amount you pay per dollar of sales or profit, CEG stock is currently valued in alignment with the wider market. • Constellation Energy has a price-to-sales (P/S) ratio of 3.0 compared to a figure of 2.8 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 19.0 against the benchmark's 24.5 Constellation Energy's Revenues have decreased slightly in recent years. • Constellation Energy has recorded an average growth rate of 7.0% in its top line over the last 3 years (compared to a 6.2% increase for the S&P 500) • Its revenues have declined by 5.4% from $25 billion to $24 billion in the past 12 months (in contrast to a growth of 5.3% for the S&P 500) • Furthermore, its quarterly revenues dropped by 7.1% to $5.4 billion in the most recent quarter from $5.8 billion a year prior (versus a 4.9% improvement for the S&P 500) Constellation Energy's profit margins are lower than most companies within the Trefis coverage universe. • Constellation Energy's Operating Income was $4.8 billion over the last four quarters, which corresponds to a moderate Operating Margin of 20.6% (compared to 13.1% for the S&P 500) • Constellation Energy's Operating Cash Flow (OCF) during this period amounted to $-2.5 billion, indicating a very poor OCF Margin of -10.5% (relative to 15.7% for the S&P 500) • For the last four-quarter period, Constellation Energy's Net Income was $3.7 billion — suggesting a moderate Net Income Margin of 15.9% (compared to 11.3% for the S&P 500) Constellation Energy's balance sheet appears strong. • Constellation Energy's total debt was $8.4 billion at the close of the most recent quarter, while its market capitalization stands at $86 billion (as of 5/6/2025). This results in a strong Debt-to-Equity Ratio of 11.8% (compared to 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $3 billion of the $53 billion in Total Assets for Constellation Energy, resulting in a moderate Cash-to-Assets Ratio of 5.7% (compared to 15.0% for the S&P 500) CEG stock has exhibited a greater negative impact than the benchmark S&P 500 index during several recent downturns. As investors hope for a mild landing from the U.S. economy, how severe could conditions become if another recession hits? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and post the latest six market crashes. • CEG stock plummeted 55.7% from a peak of $97.16 on 27 November 2022 to $43.09 on 23 February 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock completely regained its pre-Crisis peak by 25 November 2022 • Since that time, the stock reached a high of $347.44 on 26 January 2025 and currently trades at approximately $275 In conclusion, Constellation Energy's performance across the metrics outlined above can be summarized as follows: • Growth: Neutral • Profitability: Weak • Financial Stability: Strong • Downturn Resilience: Neutral • Overall: Neutral This aligns with the stock's moderate valuation, leading us to conclude that CEG is reasonably priced but has a few risks as well, making it a neutral choice. While it may not appear that there is significant upside to CEG stock, the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), has managed to deliver strong returns for investors. What is the reason? The quarterly rebalanced portfolio of large-, mid-, and small-cap RV Portfolio stocks provides a flexible way to optimize favorable market conditions while minimizing losses when markets decline, as highlighted in the RV Portfolio performance metrics.
