Montel Magazine 1 2022 - Uproar over green investm Montel Magazine 1 2022 - Uproar over green investm - Page 25

Fredrik Bodecker Founder and CEO , Bodecker Partners The obvious answer is of course gas and CO2 prices going to the moon . However , I take a longer perspective and would point at something in 2021 that will have implications for several decades ; The EU Council gave their first approval of NextGenerationEU and the “ Recovery and Resilience Facility ” in July 2021 . A large chunk of enormous piles of money is going to renewable power and hydrogen-related projects .
It seems like hardly a day goes without a new announcement of a 100 MW electrolyser project somewhere . There will be many interesting implications in several dimensions in a future power system with so many electrolysers . Another risk from all the Covidmoney flooding the world is inflation . How will the tenor fifteen-year fixed price PPAs look in the light of 5 % inflation ?
The rest of the world follows UK and Denmark and the others that now leave Covid-19 behind them . The development of the tensions between Russia and Ukraine . North Stream 2 and the coming dance around the certification . I also believe 2022 will be the year when large scale battery parks enter the markets and minds of traders and asset managers . AT
Emeric de Vigan Founder and CEO , Cor-e Clearly the huge increase in gas prices has been the key driver for the energy complex in 2021 , driven by low storage levels and reduced imports from Russia . This led not only gas , but also power prices to record highs , especially as nuclear generation in France keeps getting lower and lower over the years .
Pedro Larrea Director of energy management and grids , Naturgy Energy markets experienced a turning point in 2021 , marked by global supply and demand tensions after the Covid-19 . Price levels and volatility set new records in the spot [ market ], and the price movements have their origin in global supply and demand dynamics . The rise in prices was linked to a contraction in supply , while producers do not perceive adequate signals in the short and long term to invest in additional production capacity .
The unprecedented rise in the price of all energy should provide the basis for a necessary transformation of the energy model ensuring a balance between the need for renewables and the essential backup capacity to guarantee supply .
Huge investments and regulatory stability are required for this transformation . Next Generation [ funds ], the Green Deal , the ‘ Fit for 55 ’ plan , the national energy and climate plan , and the Spanish climate change law are all key to achieving decarbonisation by 2050 . And within this context we believe that it is urgent to focus on critical aspects such as the need to guarantee supply or explore local , renewable energy sources such as biomethane . A realistic , economically efficient , and technologically viable roadmap must be designed to complete the transition to a fully decarbonised economy in the next 30 years . PB
Carlos Reyero CEO , Forestalia A very crucial point is to decide whether change or not the “ green ” status of gas-fired and nuclear power ( see page 18 ), which could change energy policy inside the EU . In particular it could affect investments into wind and solar in the short and medium term . Well beyond this , we trust the future is 100 % renewable with new , more efficient storage systems which will assuage concerns about the reliability of power supply from wind and solar .
Geopolitics are and will keep being the biggest threat for the industry in the new year . Not only the Russia-Ukraine conflict , but the Northern Africa gas pipe currently closed and any commercial / political decision of the Chinese government ( not only , but mainly about Taiwan ) are concerns for this year . PB
Thanks to a mild winter and large LNG imports , security of supply has not been at risk in 2021 . Uncertainties remains for 2022 , as concerns over the French nuclear fleet increase . In any case volatility is here to stay for a sustained period of time . MB
Niek den Hollander CCO , Uniper 2021 was a rather extraordinary year , in many ways . It has become even more obvious that decarbonisation , digitalisation and globalisation are here to stay and that we as an energy company , but also as an entire industry , must keep on pushing the envelope – reflecting the results of COP26 . 2021 has been the most volatile year in commodities trading in decades , with prices soaring up to unprecedented heights across commodities .
This year , conditions are expected to remain challenging – especially with the pandemic still impacting our lives on all levels . On a positive note , the crucial role of ( natural ) gas as a bridging technology towards a carbon neutral energy future has been confirmed through the recent EU taxonomy .
Climate neutrality not only needs a massive expansion of renewable energies but also necessitates the investment in modern gas-fired power plants in order to ensure security of supply . Given that gas infrastructure can be repurposed for a future hydrogen market , investments in this area are a real contribution to a CO2 free future . CD
Montel Magazine 1 – 2022