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Global electricity production up 3.6%


Worldwide Power production The latest International Energy Agency’s Monthly Electricity Statistics report, from data up to and including May 2022, shows that for the total of OECD states, net electricity production was 864.1 TWh in May 2022, corresponding to a 3.6% increase over May 2021. Out of this production total, 48.3% (417.4 TWh) originated from fossil fuels, 36.2% (312.8 TWh) from renewable sources and 15.2% (131.6 TWh) from nuclear power.


Electricity production from nuclear power decreased by 8.6% y-o-y, as many countries had nuclear plants undergoing maintenance in May 2022. Production from fossil fuels (+7.2% y-o-y) and renewables (+5.4% y-o-y) increased to make up for the decrease in nuclear. The rise in production from fossil sources was driven by an increase of electricity production from natural gas (11.0% y-o-y), corresponding to 28.7% of total net electricity production.


0 Coal Natural gas


Other combustibles Nuclear Hydro Wind Solar Other


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Solar (+21.5% y-o-y) and wind (+9.3% y-o-y) power drove the increase from renewable sources. While solar power has grown in all OECD regions, electricity from wind dropped by 5.4% (y-o-y) in OECD Europe as low wind speeds affected several countries.


In Japan , electricity production from solar power was notably higher, 9.9 TWh in May 2022, up by 26.3% or 2.1 TWh compared to the same month last year, driving the overall increase observed in the region. This set a new record high of 13.9% solar power share in the country’s electricity mix. Conversely, nuclear electricity generation continued to decrease for the fourth month in a row, settling at 2.7 TWh (-45.6% y-o-y), as a few reactors are still undergoing maintenance operations. ●


The IEA’s Monthly Electricity Statistics features electricity production and trade data for all OECD Member countries and electricity production data for a selection of other economies.


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Uniper draws down entire €9 bn credit facility Germany Finance


On 29 August Uniper drew down €2 billion under its existing credit facility with the KfW banking group, thereby using to the fullest extent its credit facility of €9 billion, a move necessitated by a dramatic increase in energy prices in recent times and the need for further liquid assets as security deposits.


Uniper has now requested an extension to the KfW credit facility of an additional €4 billion. This is intended to secure the company’s short-term liquidity. Uniper’s liquidity situation is currently impacted by two factors: reduced Russian gas deliveries and the associated significant price increases for gas and electricity: Since 14 June, Uniper has received only part of the contractually agreed gas supply from Russia. The shortfall in deliveries now amounts to 80 %. To ensure security of supply for its customers, Uniper is procuring the missing volumes, on the market at significantly higher prices – at the current level of approximately €300/MWh, gas prices have increased more than six-fold in a year. As Uniper has so far borne the higher procurement costs alone, it is currently accumulating cash losses of well over €100 million per day.


OECD electricity production by fuel type year-to-date comparison. Source: IEA/OECD


ACWA signs energy agreements worth $12 bn with Uzbekistan Uzbekistan Finance


Uzbekistan’s Ministry of Energy has signed three agreements with Saudi Arabia based Acwa Power worth a total of $12 billion. The agreements were signed during a recent the state visit to Saudi Arabia of Uzbekistan’s president, Shavkat Mirziyoyev. The three agreements comprise:


● A Heads of Terms agreement to develop a 1.5 GW wind farm in the Karakalpakstan region of Uzbekistan – it will be largest single onshore wind project in the world;


● A plan for investment in green hydrogen, in Uzbekistan, in collaboration with Air Products, a global leader in industrial gases;


● A $10 billion Investment Co-operation Agreement to jointly develop gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan.


The Karakalpakstan wind project, located in north-western Uzbekistan, will set a new high as


the biggest onshore wind project on a single site. A power purchase agreement and an investment agreement are expected to follow soon. The project is expected to achieve financial close by the end of 2023 and be fully commissioned by Q1 2026. When complete, it will contribute 19% to Uzbekistan’s overall renewable energy goals.


Acknowledging the importance of green hydrogen generation to the vision of president Shavkat Mirziyoyev, Uzbekistan’s ministry of Energy, ACWA Power, and Air Products are also planning investment in this area. This agreement follows an MoU signed during the visit of a Saudi Arabian delegation to Uzbekistan in January 2021.


The initiatives are expected to materially contribute to Uzbekistan’s long-term strategy to diversify its energy mix, as it targets 8 GW and 12 GW of solar and wind capacity by 2026 and 2030 respectively. ●


4 | September 2022 | www.modernpowersystems.com


In addition, Uniper must provide security deposits (so-called ‘margining’) for a large portion of its sales transactions for gas and electricity. The value of these security deposits is dependent on the current energy price compared to the price level at the conclusion of the sales transaction and so has increased significantly due to the extreme developments in the European energy markets. Even though these cash outflows are only temporary (Uniper will receive the security deposits back at the time of delivery), Uniper’s liquidity is strongly affected.


Securing short-term liquidity via KfW credit facilities is one of the pillars of the Uniper stabilisation package announced on 22 July. The implementation and detailed structuring of the other elements – including equity measures – are currently being further advanced among representatives of the German government, Fortum and Uniper. The package of measures is subject to regulatory approvals, in particular from the EU Commission, and the approval of Uniper shareholders, who are to vote on the stabilisation measures at an extraordinary general meeting scheduled later this year. ●


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