Low wind speeds hurt profits at two of Europe’s major energy firms

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3 years ago

August 13, 2021

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The chief financial officer of German utility RWE on Thursday acknowledged the importance of weather to its renewables segment, as the company reported “much lower” wind volumes in Northern and Central Europe for the first half of 2021.

In an interview with CNBC, Michael Müller stressed the need to have a broad range of assets in place to cope with potential fluctuations related to weather conditions.

“I think what you need to do is balance your portfolio,” he said. “So, have a portfolio across different technologies … be it onshore, offshore, or solar or storages, and also across regions.”

“And what we have seen in the first half is there was poorer wind in Europe but at the same time there was stronger wind in the U.S.”

“So our idea is to have a balanced portfolio. But clearly, if you’re a renewables player, you are dependent to some degree on weather conditions.”

For offshore wind, the Essen-headquartered firm’s adjusted earnings before interest, taxes, depreciation, and amortization came in at 459 million euros ($538.5 million) in January to June 2021. This compares to 585 million euros for the same timeframe last year.

Its onshore-solar segment also took a knock, reporting a loss in adjusted EBITDA of 42 million euros.

Referencing this part of its business, RWE said: “The extreme cold snap in Texas led to an earnings shortfall of around €400 million.”

“Additional burdens resulted from below-average wind conditions at onshore wind farm locations in Northern and Central Europe,” it added.

Adjusted EBITDA for the whole group in January to June 2021 came in at 1.75 billion euros, down from 1.83 billion euros in the same period a year earlier. Adjusted net income grew, however, hitting 870 million euros.

Even with the above challenges, RWE described the first half of 2021 as being “very good” financially. “For fiscal 2021, RWE now expects to achieve adjusted EBITDA of between €3.0 billion and €3.4 billion at Group level, which is €350 million higher than forecast in March 2021,” it said.

Orsted maintains guidance despite low wind speeds

Thursday also saw Danish energy firm Orsted state it would maintain its full-year guidance for 2021 even though it flagged that lower wind speeds had affected output in the first six months of the year.

In a statement, Orsted said operating profit for the first half of 2021 came in at 13.1 billion Danish krone (around $2.1 billion), a 3.3 billion krone jump compared to the same period in 2020.

Nevertheless, the firm experienced challenges related to wind speeds. “Earnings from our offshore and onshore wind farms in operation were DKK 0.3 billion lower compared to the same period last year,” the company said.

“The increased generation capacity from new wind farms in operation was more than offset by significantly lower wind speeds across our portfolio,” it added.

Breaking things down, Orsted’s investor presentation said wind speeds in the second quarter of 2021 came in at 7.8 meters per second, which was “significantly lower than normal wind speeds” of 8.6 meters per second.

Looking ahead, the company said it maintained its full-year EBITDA guidance of 15-16 billion Danish krone but added that it was expecting an “outcome in the low end of the guided range.”

This was due to the lower wind speeds as well as “warranty provision towards our partners related to cable protection system issues at some of our wind farms.”

Orsted is a major player in wind energy. In offshore wind alone, its installed capacity amounted to 7.6 gigawatts at the end of 2020.

Environment

YMX Logistics deploys 20 new Orange EV electric yard trucks

Published

3 hours ago

November 22, 2024

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YMX Logistics deploys 20 new Orange EV electric yard trucks

YMX Logistics and Orange EV Join Forces to Deliver Zero Emission Transportation Solutions to Yard Operations Across North America

Leading yard operation 3PL YMX Logistics has announced plans to deploy fully twenty (20) of Orange EV’s fully electric Class 8 terminal trucks at a number of distribution and manufacturing sites across North America.

As the shipping and logistics industries increasingly move to embrace electrification, yard operations have proven to be an almost ideal use case for EVs, enabling companies like Orange EV, which specialize in yard hostlers or terminal tractors, to drive real, impactful change. To that end, companies like YMX are partnering with Orange EV.

“This relationship between YMX and Orange EV is a significant step forward in transforming yard operations across North America,” said Matt Yearling, CEO of YMX Logistics. “Besides the initial benefits of reduction in emissions and carbon footprint, our customers are also seeing improvements in the overall operational efficiency and seeking to expand. Our team members have also been sharing positive feedback about their new equipment and highlighting the positive impact on their health and day-to-day activities.”

This Orange looks good in blue

YMX Logistics electric yard trucks; by Orange EV.

One of the most interesting aspects of this story – beyond the Orange EV HUSK-e XP’s almost unbelievable 180,000 lb. GCWR spec. – is that this isn’t a story about California’s ports, which mandate EVs. Instead, YMX is truly deploying these trucks throughout the country, with at least four currently in Chicago (and more on the way).

“Our collaboration with YMX Logistics represents a powerful stride in delivering sustainable yard solutions at scale for enterprise customers,” explains Wayne Mathisen, CEO of Orange EV. “With rising demand for electric yard trucks, our joint efforts ensure that more companies can access the environmental, financial, and operational benefits of electrification … this is a win for the planet, the workforce, and the bottom line of these organizations.”

We interviewed Orange EV founder Kurt Neutgens on The Heavy Equipment Podcast a few months back, but if you’re not familiar with these purpose-built trucks, it’s worth a listen.

HEP-isode 26

SOURCE | IMAGES: YMX Logistics.

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Hyundai IONIQ 9 debut, new NACS Kia, solid state batteries from Honda

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3 hours ago

November 22, 2024

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Hyundai IONIQ 9 debut, new NACS Kia, solid state batteries from Honda

On today’s thrilling episode of Quick Charge, we’ve got the all-new Hyundai IONIQ 9 and its “a “rolling living room” pivoting captain’s chairs, Kia gets a go-fast 7 passenger SUV and an updated EV6, while Honda announces plans to start producing solid-state batteries at its new facility in just a few weeks.

We’ve also got big news for American workers – a Minnesota power company is ditching coal for solar while ExxonMobil and LG Chem get to work extracting thousands of tons of lithium out of Tennessee’s soil.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations sitewide. Learn more by clicking here.

You can watch the episode, below.

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Environment

One of the US’s first solar peaker plants – with Tesla Megapacks – just came online

Published

5 hours ago

November 21, 2024

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One of the US’s first solar peaker plants – with Tesla Megapacks – just came online

Arevon Energy has kicked off operations at Vikings Solar-plus-Storage – one of the US’s first utility-scale solar peaker plants.

The $529 million project in Imperial County, California, near Holtville, features 157 megawatts of solar power paired with 150 megawatts/600 megawatt hours of battery storage.

Vikings Solar-plus-Storage is designed to take cheap daytime solar power and store it for use during more expensive peak demand times, like late afternoons and evenings. The battery storage system can quickly respond to changes in demand, helping tackle critical grid needs.

Vikings leverages provisions in the Inflation Reduction Act that support affordable clean energy, strengthen grid resilience, boost US manufacturing, and create good jobs.

The Vikings project has already brought significant benefits to the local area. It employed over 170 people during construction, many local workers, and boosted nearby businesses like restaurants, hotels, and stores. On top of that, Vikings will pay out more than $17 million to local governments over its lifespan.

“Vikings’ advanced design sets the standard for safe and reliable solar-plus-storage configurations,” said Arevon CEO Kevin Smith. “The project incorporates solar panels, trackers, and batteries that showcase the growing strength of US renewable energy manufacturing.”

The project includes Tesla Megapack battery systems made in California, First Solar’s thin-film solar panels, and smart solar trackers from Nextracker. San Diego-based SOLV Energy handled the engineering, procurement, and construction work.

San Diego Community Power (SDCP) will buy the energy from the Vikings project under a long-term deal, helping power nearly 1 million customer accounts. SDCP and Arevon have also signed an agreement for the 200 MW Avocet Energy Storage Project in Carson, California, which will start construction in early 2025.

Vikings is named after the Holtville High School mascot, and Arevon is giving back to the local community by funding scholarships for deserving Holtville High students.

Arevon is a major renewable energy developer across the US and a key player in California, with nearly 2,500 MW in operation and more than 1,250 MW under construction.

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