Hydropower and off-shore wind developments
Mid-October 2018, ENGIE signed its first commercial hydropower energy management contract with French producer Sud Hydro “When the markets are short wind, we often observe a bullish trend on markets prices” observes Vincent Verbeke”, adding hydropower is therefore an ideal complement as it enables to onboard flexibilities to solar and wind asset portfolios”. This is the first of many more, as a result of our teams’ in-depth expertise acquired managing ENGIE’s hydro assets.
This recent contract comes only a few weeks after concluding a major 4-year offshore wind direct marketing contract with , providing for the offtake and management of Arkona’s entire production (1.5 TWh/yr). With this offshore wind offtake agreement, ENGIE strongly reinforces its presence in the largest renewable market of Europe, with a current 2000 MW under management.
Such diversification and growing of our green midstream business come along with the progressive end of feed-in tariffs in Europe. In 2021 in Germany, 4.5 GW of renewable production is expected to fall out of the subsidy scheme, with about 2GW/year expected in the following years. “In France at the same period, indicates Cécile Cordier, about 1.1 GW hydro assets will be exposed to competition”. ENGIE’s green expertise is and will be all the more essential to help our clients make the most of this true game changer in the renewable landscape.