Marian Bocek

Even before Russia’s invasion of Ukraine, severing the link between gas and power prices was a core UK policy objective. The 2022 crisis focussed minds, but the government ruled out alternatives to marginal pricing. Now, rampant speculation is injecting fresh volatility into European gas trading hubs. OVERVIEW: 🔹Amid intense debate over locational power pricing in the GB market, the rationale for linking electricity prices to the most expensive marginal generation unit has gone largely unscrutinised 🔹Marginal pricing is becoming problematic with the rise of renewables, as the OPEX-based pricing regime fails to remunerate for wind and solar power capex without marginal gas generation 🔹Hedge fund speculation is driving volatility in European gas markets, which is being passed through to power prices via marginal pricing 🔹A lack of credible alternatives to marginal pricing points to an increasingly volatile transition towards full grid decarbonisation Is the British electricity market condemned to a future of endless gas-induced price spikes? 👇 Find the full analysis here: https://lnkd.in/e6ZKT55b Written by Seb Kennedy and published on EklipX Research #power #grid #uk #gas #ttf #economy #energy #hedgefunds

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The solar industry's shift towards sustainable innovation is promising, but challenges remain. While it's encouraging to see major players like LONGi Solar acknowledging the need for decarbonization and quality investments, the ultra-low pricing environment poses significant hurdles. As the #EPEAT standard gains traction, we must continue to advocate for a balanced approach that values both affordability and sustainability. The future of solar lies not just in cost reduction, but in creating truly sustainable, low-carbon products that benefit both consumers and the planet. Let's keep pushing for innovation that aligns economic viability with environmental responsibility.

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How could the Science Based Targets initiative be so wrong (read: #sarcasm and call for calm)?! Why has the "community" reacted with such frustration with SBTi's proposal to permit the use of #carboncredits to enhance the ability to manage #Scope3 #GHGemissions? There are so many benefits that we can expect: > lowering the barrier to addressing Scope 3 emissions > funding for #innovative #carbon projects will rise > #carbonpricing will become more reliable and predictable Thanks to Margaret Morales GreenBiz Group for stimulating this post today. #decarbonization #gigacorn #gigacornhunter #climatechange

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The argument over #carbonoffsets continues. Whether you are a purist or pragmatists on the debate, the clearer the rules and guidelines, the more certainty there is in the market. With the new guidance from the US piled on top of the plethora of standard setting bodies, registries and associations like the VCMI, are we there yet? According to some…the new rules from President Joe Biden will help…”Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News, writes that the “Biden administration’s new plan to overhaul the voluntary carbon market is an important step forward”. He says: “Right now, the market for credits is opaque and riddled with inefficiency. Buyers can’t be sure which credits are credible, projects often don’t deliver what they promise and sellers can’t be held accountable. This lack of transparency also opens the door for greenwashing, where companies claim to be making a much bigger difference than they are, which fuels public scepticism about the potential for private-sector leadership. As a result, the market for carbon credits is much smaller – and far less productive – than it should be…For markets to work well, they must be transparent, trusted and standardised – three qualities that have largely eluded the market for carbon credits.” #decarbonization #gigacorn #gigacornhunter #climatechange #carbon Bloomberg

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EBRD forms a renewable energy joint venture with the GOLDBECK SOLAR Group for Ukraine that targets the development of up to 500 MWp of solar PV projects over the next 3 to 5 years #solar #GOLDBECK #JV #Ukraine #energy #renewable

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Here is an insightful research that puts under spotlight a pretty evident for concerned people but silenced by policymakers side-effect of fake "green" energy transition --> https://lnkd.in/dwyBih9n Attílio, Luccas Assis and Silva, Emilson, (May 29, 2024). Does the Energy Transition Affect Food Prices and Agricultural Production? The University of Auckland Business School Research Paper , Available at https://lnkd.in/drQSZyE8 Abstract. While most studies highlight the benefits of the energy transition, it is important to recognize that this process can also yield negative consequences. In this study, we delve into this aspect of the energy transition by examining its effects on food prices and agricultural production across 32 OECD countries from 2000 to 2021. Our findings reveal that the energy transition leads to increased food prices and decreased agricultural production. Causality analysis further confirms that the energy transition is responsible for these changes. To deepen our understanding, we divided the countries into two subsamples: those in an advanced stage of the energy transition and those in a delayed stage. Our results show that the impact of the energy transition varies depending on the stage of transition. Countries further along in their energy transitions experience a greater effect. This investigation underscores a collateral effect of the energy transition, placing additional pressure on vulnerable populations. Bjorn Lomborg Angela Wilkinson Robert Roos Alex Epstein NJ Ayuk JD, MBA. Samuele Furfari David Siegel Diana Gamazova

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"A crucial consideration is that power #grid #volatility is rising, which in turn effects the pricing and margins that can be achieved by different generation assets, as shown on pages 6-7. As a result, we see rising fair values for #gas peaker plants and grid-scale #batteries, as quantified on pages 8-9, but looming PPA cliffs for maturing solar and wind assets, considered on pages 10-12." Thunder Said Energy https://lnkd.in/eAbyd3Uj

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The savings to the #economy from #renewableenergy (or at least non-emitting #power generating sources) is astronomical. Have a read of the latest study which indicates that by displacing fossil fuels, #wind and #solar saved the #UnitedStates $250 billion over 4 years. These cost benefits, savings really, were in the form of health care reductions. So, we save money and reduce human suffering, pain and disease by transitioning away from #fossilfuels. How many more rationale reasons do we need? https://lnkd.in/gWJ4wm-t #decarbonization #gigacorn #gigacornhunter HT John Timmer

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#energytransition is driving demand for a modernized #powergrid. Yet current #infrastructure is struggling to keep up with the rapid growth of #renewable #energysources, resulting in significant delays and rising costs. Addressing these challenges requires both optimizing existing #grids and building new connections. Streamlined permitting, #innovativetechnologies, and a coordinated approach are essential to meet the changing landscape of energy generation and consumption.

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#renewables Renewables Provide Majority of Europe's Power In 1st Half of 2024 According to trade group Eurelectric, renewable energy provided 50.4% of Europe's power in the first six months of 2024, with 692TWh generated, compared to359 TWh of fossil fueled power. The largest renewable sources were onshire wind, hydropower and solar, with 228.8, 220.7 and 137 TWh respectively. Low carbon energy sources (including nuclear), provided almost three quarters - 74% - of European electricity supply, and solar power is on track to generate 274 TWh in 2024, exceeding coal power fir the first time.

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#renewables Germany Announces Tender for H2-Ready Turbine Power Plants To advance its energy transition with baseload power, Germany will tender for 12.5 gigawatts of hydrogen-fueled power plants, including 10 GW of new H2-ready turbines, 2 GW of retrofits for existing gas plants, and 0.5 GW of long term storage. With approval from the European Union, the German government would subsidize capital and operating costs for the utiliites participating in the tender. Plants constructed under the first phase of the tender would be required to be running on green or blue hydrogen with 8 years. 

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🎙Redefining Energy Ep141 - Texas, California: From Renewable Energy developer to IPP #applepodcast https://lnkd.in/eweCntq #spotify https://lnkd.in/d7SYADs Texas and California have witnessed a crazy growth in #Solar and #Batteries in recent years. In 2024 California has 24GW of Solar and 9GW of batteries on its grid; Texas has grown even faster with 31GW of Solar and 10GW of batteries. When it comes to the #EnergyTransition, you can make the following analogy: public policies are the land and financial markets are the rain. But the seeds are battle-hardened entrepreneurs. Gerard Reid and I love to invite such heroes of the development of #Renewables. They don’t build pipelines of projects. They built projects. One of those American Heroes is Sheldon Kimber, CEO of Intersect Power. In the past 8 years, Intersect has delivered 4GW of Solar and 2.5GWh of batteries. By focusing on a few huge projects, by developing a unique expertise in both Texas and California. Along the way, the Company has closed $5B in project financings and raised nearly $1B in corporate equity (TPG, CAI, Trilantic) to support the buildout of the Base Portfolio and additional growth projects. Intersect Power recently made the headlines by closing a 900mUSD debt facility to finance 3 additional batteries in Texas. Sheldon’s success is also linked to the development of a secure and efficient supply chain. The conversation is so rich that we didn’t have time to delve into his plan to develop e-fuels for Taylor Swift private jet. And, as Daniel said: “Stumpf ist Trumpf”. We thank DLA Piper for supporting the show DLA Piper Energy and Natural Resources Sector

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The 🇪🇺 EU #hydrogen targets are unfeasible, the European Court of Auditors (ECA) said in its report about the status of the #EU Hydrogen strategy. This is a very sober assessment of a pivotal decarbonisation strategy of the Green Deal, whose future is today at stake. In a complex and detailed 108-page long report, the #ECA says that the 🇪🇺 EU Commission's plan to deliver hydrogen to the hard-to-abate industries in the EU and fuel the continental energy transition is not realistic. Read why : https://lnkd.in/e3DJBje6 Published by Francesco Sassi using EklipX Research #energytransition #energy #trading

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The future of energy is renewable, and Corporate Power Purchase Agreements (CPPAs) are a crucial enabler of this transformation. I firmly believe that these long-term agreements between businesses and renewable energy producers present a tremendous opportunity to achieve Europe’s climate goals more swiftly and sustainably. And I am thrilled that VSB Group my teams and I are making full use of this opportunity. The CPPA market in Europe is growing rapidly. In 2023, the market has risen to 26 gigawatts – with an upward trend. This highlights the increasing importance of these agreements. Not only do they offer businesses long-term energy cost stability and a significant reduction in their CO₂ emissions, but they also serve as a powerful lever to drive the expansion of renewable energy. VSB Group has already implemented many pioneering agreements in this field. In 2018, we signed one of the first CPPAs in the automotive sector with Mercedes-Benz Manufacturing Poland, and in July 2023, we followed up with another for the green hydrogen producer Lhyfe. These partnerships not only underscore the growing significance of CPPAs in the energy industry but also VSB’s leading role in delivering sustainable energy solutions. Our most recent agreement with Carrefour in France is a powerful demonstration of how impactful such partnerships can be. Five wind and solar projects with a total capacity of 43.3 MW will supply 26 hypermarkets with clean energy. This is a direct contribution to reducing companies’ carbon emissions and another step towards a more sustainable future. More on this: https://lnkd.in/efj6SXxb For us, the message is clear. Renewable energy is the key to a prosperous and environmentally sustainable future. With CPPAs, we can decisively accelerate this transformation. VSB is committed to developing tailor-made solutions that provide companies of all sizes with access to renewable energy. Together, we can advance the energy transition – clean, secure, and economically sound. Photo: VSB solar farm Soleil de Gaujac ©MathiasLECLERC #VSB #EnergyTransition #Sustainability #CPPA #RenewableEnergy #cleanandgreen

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Enjoyable listen / watch this 20VC podcast where Harry Stebbings gets Cem Sertoglu of Bek Ventures to open up. Cem led, very likely the single best European seed deal thus far - the UiPath investment, $16.5m invested becoming $2.1b. Whoa! Notes on what stood out for me: *Play the game on the field. Cem: “I think our job is to play the game. Our business structure is defined by timelines. We raise 10-year life funds, so our job is to expose our fund to the strongest opportunities in every vintage, not to try to time the market.” *Cem: “the early rounds are not real rounds. They are contracts where you’re demonstrating alignment around a target that is very far out ahead. Every early stage check, you’re buying a very out of the money call option on these businesses.” Interesting point about how, unlike PE, Venture outcomes are correlated more to global outcomes than the local macro environment.Cem: “My outcomes are American outcomes, LSE outcomes, acquisitions by global tech companies. They’re not outcomes that are subject to the turbulence of whatever country that founder team may be coming from.” *Cem: “Our reserves are for those companies that will be misunderstood by the market or overlooked by the market because they don’t fit into the mold. And we were able to write that check with conviction.” They played a $2.5 bridge as a convert note following the seed round, when they saw that most of the Series A investors were not willing to step upCem: “We ended up then showing the company to about 40 firms. Everybody passed. The feedback was OK, keep us posted. Not enough traction for us to care at the moment. We had to bridge the company. The numbers were not exceptional, but it was certainly headed in the right direction.” *Cem: “Founders usually underestimate the leverage they have on their cap table. They negotiate things for very obscure situations. Experienced founders know that it’s their company. They will have a lot of flexibility around managing things when it happens, when the opportunity comes down the road.” I kind of agree. The amount of time that gets wasted on termination for cause is not funny. It is clearly a red flag when founders negotiate too much on this clause, per me, and I have begun to share this specific clause earlier in the discussion now. *Being quiet on the board. Cem: “We believe in being quiet on the board.….there’s this enormous pressure to demonstrate value add. We think that you, of course, learn from your experiences in other journeys, but then synthesize that and distill that to very carefully chosen moments to provide input to the founder. I think your job as a board member is to understand the company, be very well prepared on any interaction, like the board meetings, etc. We’re obsessive about preparing for board meetings, but we are very careful in choosing when we share strong opinions.” https://lnkd.in/g3K788Qx

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The International Energy Agency (IEA) has just published its 2024 energy outlook predicting the world is on the brink of a new age of #electrification with #fossilfuel demand set to peak by the end of the decade. #electricity demand has grown at twice the pace of total energy demand in the last decade, but is forecast to ramp up six fold over the next ten years (see chart below). The positive demand outlook is driven by #ai #datacentres #ev’s #ac’s and #electrification of industrial and commercial demand vectors. The IEA expects that falling demand for fossil fuels will allow the public and private sector to dedicate more invesment into clean energies over the next 10 years. The realtionship between #fossilfuel surplus supply and therefore lower pricing relative to clean energy investment is not straight forward. It’s possible governments and the private sector will pursue the least cost pathway despite the #environmental and #economic consequences of #climatechange. That said, we already see clean energy investment at around $2 trillion per year, almost double the combined amount spent on new #oil, #gas and #coal supplies. Government policy and #carbonbudgets combined with #innovation in #renewable #power generation plus #grid #digitisation bodes well for the IEA outlook to remain a credible forecast. Link to the report is 👉 https://lnkd.in/e6bF6SFx

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Rezolv Energy, secures €90 million in debt financing for 225 MW St. George solar park in Bulgaria. Rezolv Energy, an independent power producer backed by Actis, has secured up to €90 million in debt financing from the IFC - International Finance Corporation and Raiffeisen Bank International AG to support the construction of the ‘St. George’ solar park in north-eastern Bulgaria. Construction work is due to start very shortly, with the plant scheduled to come onstream next year. This announcement follows the signing in early September of a major 12-year Virtual Power Purchase Agreement (VPPA) with Ardagh Glass Packaging-Europe (AGP-Europe), an operating business of Ardagh Group. The VPPA – one of the first to be signed in Bulgaria – is intended to provide 110 GWh per year of renewable electricity from St. George to AGP-Europe to help decarbonise its manufacturing operations across Europe. Also in September, Rezolv confirmed that it had selected three companies to build St. George. Solarpro Holding, a Bulgarian company, and CMC Europe will together act as the engineering, procurement and construction (EPC) partner. The high voltage work will be delivered by Green Solar Energy, another Bulgarian company. Source: https://lnkd.in/dp2hT9QN Alastair Hammond Martin Langham FIET Marian PAVEL #SolarEnergy #RenewableEnergy #Sustainability #GreenEnergy #SolarPower #CleanEnergy #EnergyTransition #Bulgaria #SolarPark #DebtFinancing #VPPA #Decarbonization #EPC #StGeorge #RenewableElectricity

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