SSE means low wind and dry conditions affect renewable energy power generation

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Wind turbines photographed in Carmelford, Cornwall at sunset.

Ashley Cooper | Corbis | Getty Images

Energy giant Shanghai Stock Exchange Said that due to historical dry and low wind conditions, its renewable assets generated 32% less electricity than expected between April 1 and September 22. This is equivalent to 11% of its annual output target.

“This shortage is caused by unfavorable summer weather conditions. This is one of the least windy areas in most of the UK and Ireland, and one of the driest areas in the SSE hydropower catchment area in the past seven decades,” is based in Scotland. The Perth-based company said in a statement on Wednesday.

Low wind power output in the summer has led to energy tightening in Europe, and electricity prices have hit record highs in recent days. Other factors include colder than expected last winter, reduced production during the pandemic, low imports from Russia, high carbon prices, and growing demand for LNG in Asia.

SSE is not the first renewable energy producer to warn about the financial impact of slow summer winds.

In August, the German utility company RWE reported “Much lower” The wind volume of the Nordic and Central European product portfolio in the first half of 2021.

The Danish energy company Orsted also made a similar comment, stating that “the revenue of our offshore and onshore wind farms has decreased by 300 million Danish kroner compared with the same period last year.”

The company said in August: “The increased power generation from new wind farms in operation was offset by a significant reduction in wind speed in our portfolio,” while reiterating its expectation to achieve its full-year financial goals.

More specifically, Orsted said that in the second quarter, the average wind speed was 7.8 meters per second, which was “significantly lower” from the normal speed of 8.6 meters per second.

However, the Shanghai Stock Exchange’s management emphasized on Wednesday that these operational issues are “time-limited.” Management pointed out that performance in recent months has also been affected by hedging requirements in volatile markets.

Despite the economic slowdown in the summer, the Shanghai Stock Exchange said it was “still confident” in achieving its full-year financial targets. The company also announced its entry into the Japanese offshore wind power market.

— CNBC’s Anmar Frangoul made a report.

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