Iberdrola cuts EU coal-fired generation by 10% y/y as overall power output falls

Published 12:39 on July 22, 2015  /  Last updated at 12:39 on July 22, 2015  /  EMEA, EU ETS  /  No Comments

Spanish-headquartered utility Iberdrola produced less coal-fired power at its EU operations in the first half of 2015 compared to last year, but reported a higher ratio of CO2 per KWh in its generation mix.

Spanish-headquartered utility Iberdrola produced less coal-fired power at its EU operations in the first half of 2015 compared to last year, but reported a higher ratio of CO2 per KWh in its generation mix.

Iberdrola’s operations in Spain, Portugal and the UK generated 36.68 TWh of power in the six months to July, some 12.4% less than in H1 2014.

In its earnings for the first half of 2015, released on Wednesday, the company said its hydropower plants saw the biggest year-on-year drop in output (-38.4% to 7.62 TWh) due to less rainfall compared to last year.

Coal-fired generation in those three countries dropped by 9.8% to 5.44 TWh, suggesting the company may require fewer carbon allowances to cover its 2015 output.

Iberdrola more than doubled its coal power output in Spain, but this was overshadowed by a 24% drop in its UK production, which was hit in part by a sharp increase in the country’s carbon floor price.

Iberdrola’s EU-based gas combined cycle and cogeneration operations were the only areas to see annual growth, respectively producing 4 TWh (+19.8% y/y) and 1.08 TWh (+9.4%).

It reduced its renewables-based power in Europe by 3% overall to 8.97 TWh, which was made up of a 27% increase in the UK and a 9.4% drop in Spain.

The utility did not report data on its forward electricity sales or its hedging ratios.

Iberdrola said globally it emitted 209 grams of CO2 per KWh, a rise of 18 grams or 9.4% from H1 2014.

Its Spanish and Portuguese operations produced 63 gCO2/KWh (+117% y/y), while its UK operations slipped to 536 gCO2/KWh (-12.6%).

Iberdrola said 55% of its total production was CO2-free, down from 61% last year.

The company’s overall CO2-free power production dropped by 14.2% to 38.142 TWh in H1, which included a 19% drop in its Iberian operations to 25.758 TWh.

By Mike Szabo – mike@carbon-pulse.com

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