The cost of simplistic power purchase

The cost of simplistic power purchase

30 May 2019

Renewable energy deployment is increasingly reliant on independent power producers through power purchase agreements. Yet, off-takers are finding themselves committed to purchasing power at long-term and high prices in a dynamic market, while assuming all the risks. This is an impediment both for expanding renewables and achieving lower electricity prices. Future renewables growth will require a new approach to power purchase agreements as well as investment in mitigating risk and minimising generation costs.

Solving Iraq’s electricity crisis

Solving Iraq’s electricity crisis

30 May 2019

Increased private participation in Iraq’s power sector could see generating capacity triple over the next decade. However, structural reforms, not more infrastructure, are required if Iraq is to put an end to power shortages.

The driving forces behind oil price movements in 2019 so far

30 May 2019

Oil prices should rise above the $65-$70 per barrel range they have been hovering at for the last several weeks. The markets have become comfortable with the supply side thanks to the US’ “perpetual” crude oil production machine, although roughly 2.5m barrels per day (bpd) of crude output is in danger of being disrupted in Libya, Venezuela, Iran and Russia. On the other side of the equation, uncertainties over US-China relations have cast a pall on the outlook for the world economy and crude oil demand. While unfolding events may not have any impact in the short run, if indeed at all, OPEC/non-OPEC spare capacity, at 2-2.5m bpd, is limited. Any outage will stress the world oil markets – particularly the Saudis – who have pledged to make the market whole in the event of any disruption.