Latest news with #powerproduction
Zawya
5 days ago
- Business
- Zawya
IPPs spearhead over 16,000MW power projects in Zimbabwe
This comes as the country's power utility firm, Zesa Holdings, has capital requirements of US$2 billion, which is limiting its ability to provide steady power. Independent power producers (IPPs), primarily from the mining and industrial sectors, are investing in solar, coal and hydroelectric projects to secure consistent power amid persistent blackouts and rising tariffs. The IEUG represents Zimbabwe's largest electricity consumers across the mining, manufacturing and agriculture sectors. The group champions sustainable energy solutions, particularly through IPPs, to reduce the reliance on the strained national grid and improve industrial competitiveness. 'We've accepted the challenge from President Emmerson Mnangagwa,' Cross said during last week's Chamber of Mines of Zimbabwe's annual conference held in Victoria Falls. 'At this moment, we have around 16,000MW of new power production under development: 2,000MW (solar), 2,000MW (coal) and 12,000MW (hydro). If we can deliver this at competitive rates, we will solve our problems as the private sector.' Zimbabwe's peak electricity demand exceeds 2,000MW, yet generation remains unstable, fluctuating between 1,000MW and 1,400MW due to capacity limitations at the Kariba South Hydro and Hwange thermal power stations. These limitations have left most sectors of the economy vulnerable to loadshedding and erratic supply, despite the government's efforts to stabilise the sector. © Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (
Yahoo
09-05-2025
- Business
- Yahoo
Scatec ASA (STECF) Q1 2025 Earnings Call Highlights: Record Revenues and Strategic Growth ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Scatec ASA (STECF) reported a strong financial quarter with revenues of 2.4 billion and EIA of 1.4 billion, significantly up from the previous year. The company has an all-time high backlog and construction capacity of 4.2 gigawatts, enabling significant future construction activity. Scatec ASA (STECF) successfully issued a new green bond of 1.25 billion kronors at attractive terms, improving its debt maturity profile. Power production increased by 21% year-on-year, driven by new projects in Botswana, Brazil, and Pakistan, as well as favorable hydrology in Laos and the Philippines. The Philippines delivered exceptional results with power production nearly doubling and revenues increasing by 2.8 times, highlighting the strategic value of flexible hydropower and battery services. The company faces potential risks from geopolitical situations and changing regulations in the countries it operates. There is uncertainty in hydrology predictions, which could impact power production in regions like the Philippines and Laos. Scatec ASA (STECF) acknowledges the need for continued discipline in project selection to avoid moving forward with marginally attractive projects. The company is operating in a competitive renewable energy market, which requires careful management to secure advantageous projects. There are concerns about maintaining high EPC execution standards across a large and diverse construction portfolio spanning multiple countries. Warning! GuruFocus has detected 9 Warning Signs with STECF. Q: As you head into 2025 with peak construction activity, do you foresee maintaining or increasing this level into 2027? A: We have 16 billion in remaining EPC contract value, which will sustain construction activity into 2027. Beyond that, we have a pipeline of nearly 9 gigawatts, including solar, wind, batteries, and green hydrogen. Renewable energy remains competitive, and we expect to continue converting projects from pipeline to backlog and construction. Q: Regarding the ancillary services market in the Philippines, was the outperformance due to price increases on long-term contracts or spot market activity? A: It's approximately a 50-50 split between contracts and the spot market. We've seen price volatility in the spot market, and with batteries, we've captured high prices. This quarter's performance was driven by both spot market activity and favorable hydrology. Q: With substantial construction in non-core markets, do you plan to hold or divest these projects? A: In non-core markets, we focus on areas with strong renewable potential. If we can build scale, we may retain projects. However, if market conditions change and scale isn't achievable, divestment becomes a possibility. Q: With corporate net debt at 5.2 billion, will you maintain this level as you double your asset base? A: We have no plans to increase corporate debt. New activities will be financed at the project level, maintaining our commitment to a $54 billion investment target, using 75% to pay down corporate debt by 2027. Q: What are your current concerns or risks, both internal and external? A: Internally, we must remain disciplined in project selection and execution, especially with our largest EPC program underway. Externally, while renewable energy is competitive, we must navigate geopolitical changes and regulatory shifts. We also monitor the situation in Ukraine closely. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
07-05-2025
- Business
- Reuters
India eases coal supply rules to ramp up power generation capacity
May 7 (Reuters) - India on Wednesday changed rules to allow long-term coal supply contracts for so-called independent power producers as it looks to ramp up its coal-powered plant capacity. The government also did away with the requirement that coal power producers should have power purchase agreements to sell electricity. The moves will encourage power producers to plan new thermal capacities and help future capacity addition, the coal ministry said in a statement. India wants more power plants to come up at the pitheads of coal mines as it would reduce the challenges in transporting coal to distant and remote places where power plants are often located. Under the new policy, which was approved by the cabinet on Wednesday, independent power producers with or without power purchase agreements can get coal on an auction basis for a period of up to 12 months or above and up to 25 years by paying a premium above the notified price. India aims to raise its coal-fired capacity by 80 gigawatts by 2031–32, from the current 222 GW, to meet growing demand for power. The country had added nearly 28 GW of coal capacity in the past five years, according to Central Electricity Authority data. The coal power additions come even as the country is aiming to add at least 500 GW of clean energy by 2030, against 172 GW currently. India's renewable energy sector is grappling with several obstacles, including weak demand for tenders, land acquisition challenges, delays in power purchase agreements, and project cancellations.
