Tag Archives: Iberdrola

European utilities scared of renewable energy

Another reason Southern Company needs to get on with a smart grid, using its biggest private R&D outfit in the U.S. Now that solar has reached grid parity with everything including natural gas (and years since it passed nuclear), if the utilities don’t get out in front, they’re going to be left behind.

Derek Mead wrote for Motherboard yesterday, European Utilities Say They Can’t Make Money Because There’s Too Much Renewable Energy,

Renewable energy has been on a tear the past few years, with growth in many countries spurred by subsidies for wind and solar power. Now the heads of 10 European utility companies say EU subsidies should end, because they've got more renewable energy than they know what to do with.

The 10 CEOs in question, who refer to themselves as the Magritte group because they first met in an art gallery, represent companies that control about half the power capacity of Europe. The group gave a press conference today— Reuters says that 10 such executives giving a joint public statement is “unprecedented”—to hammer home a message they’ve been trumpeting ahead of an EU energy summit in 2014: There’s too much energy capacity, which has driven prices down so far that they can’t make any money.

As long as there are nukes or coal plants, there’s too much capacity. European utilities need to get on with things like Continue reading →

Profits per Market Cap in the Forbes 2000: solar and wind still win

We saw that two out of three of the most profitable electric utilities in the world emphasize solar and wind energy: ENEL of Italy and Iberdrola of Spain, both of which operate in multiple countries, including Iberdrola claiming second most wind power in the U.S. Well, maybe those companies are small, so their profits are a fluke. Nope. We get similar results for profits divided by market cap:

ENEL of Italy is still number 1, with no nuclear and a lot of solar and wind energy. Iberdrola is #4 in profits/market instead of #3 in profits alone. However, Electricité de France (EDF) is #7 instead of #2, and Exelon is #9 instead of #4. Number 2 is Energias de Portugal (EDP), which is heavily into wind power including owning Horizon Wind Energy LLC:

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Electric Utility Profits in the Forbes Global 2000 from 2006 through 2012

Which are the most and least consistently profitable electric utilities in the world? Hint: the biggest losers all lost on nukes. But the biggest winners may surprise you.

Following up on Southern Company CEO Thomas A. Fanning’s brag that “We are a great, big company from an energy production standpoint,” I looked in the Forbes Global 2000 to see which are the biggest electricities in the world. Indeed, Southern Company (SO) is the biggest in the U.S. and number 6 in the world for 2012. But what about the rest, and what about previous years? Here’s a graph of profits for the top 40 electric utilities from 2006 through 2012. SO is the blue line muddling along in the middle:

Profits

Profits
Graph by John S. Quarterman from

What’s that dark red line dropping way below the rest? Tokyo Electric Power (TEPCO), owner of the Fukushima nuclear plants. And the red line starting at the top and ending up near the bottom? E.ON, the company that owns most of Germany’s nuclear plants, as Germany shifts away from nuclear energy, after Cheronobyl and now Fukushima. The blue line that ends up as low as E.ON? Korea Electric Power (KEP), also an owner of nuclear plants. All the big losers are nuke owners.

What about the winners? The light green line ending up second by profits is Electricité de France (EDF), also an owner of nuclear plants, but one which has not yet had a major accident.

But what’s that purple line that starts near the top and ends up at the top?

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