Tag Archives: green energy

The New Green Energy Giants Challenging Exxon and BP

At-a-Glance

A decade ago, NextEra, Iberdrola and Enel were sleepy regional utilities with little name recognition. Now they are fast-growing giants with market values rivaling the likes of oil majors Exxon Mobil Corp. and BP PLC, thanks to their early all-in bets on wind and solar farms. Their early lead in the global transition away from oil has put these companies on track to become the major energy companies of the coming decades—the “green energy majors.” But they now face the threat of increased competition as some of the oil titans that have traditionally dominated the energy industry diversify into wind and solar power. To learn more, read “The New Green Energy Giants Challenging Exxon and BP.” Reading this article could require a subscription.

Key Takeaways

  • NextEra, Enel SpA and Iberdrola SA are Wall Street darlings, after Spain’s Iberdrola and Italy’s Enel became global builders of green energy projects, while NextEra became America’s largest generator of wind and solar power.
  • Enel and Iberdrola have outlined plans to substantially expand their portfolios of renewable-energy projects over the next decade with about $170 billion in collective investments.
  • Florida-based NextEra grew into America’s largest renewable energy producer by keeping debt levels low, capitalizing on federal tax subsidies available to help finance wind and solar projects around the country and reinvesting its profits to expand further. NextEra expects to have invested $60 billion in renewable energy projects between 2019 and 2022.
  • Denmark’s Ørsted A/S, a company formerly known as DONG Energy that focused on oil and gas, has transitioned into a leading player in offshore wind projects.

Path to 100% Perspective

As NextEra became more valuable than Exxon in 2020, it became increasingly clear that the status quo in energy is now in the rearview mirror and the path to 100% is nearly paved. Oil companies are not holding on to the past or unrealistic expectations for the future of energy. Instead, they are joining the race to renewables using their name recognition, influence in the energy sector and budgets to spur more competition to the benefit of those striving for a renewable energy future.

 

Photo by Efe Kurnaz on Unsplash

Q&A Series: Ricardo González Romero Looks at Renewable Energy Opportunities Post-Pandemic

Ricardo González Romero is a General Manager at Anabática Renovables in Santiago, Chile.  He’s a subject matter expert on renewable energy serving in several different roles in the energy sector. He is also a guest professor at three different universities throughout the Latin American region.

Question:  Please describe yourself and your work. 

Ricardo: I am a General Manager at Anabática Renovables in Santiago, Chile, where my background and expertise is in consultancy, management, team restructuring, renewable energy support, along with greenfield wind and solar project development. Anabática Renovables provides financial and investment advisory services, reliable third-party assessment, and independent technical assessment for companies seeking to participate in Latin America´s wind and solar energy market.

My specialties within the renewable energy sector are in valuation of assets; mergers and acquisitions; project evaluation; management project; wind energy analysis; business development; and energy technology assessment. In addition to my current position, I serve as a guest professor at the Universidad Tecnológica Nacional in Argentina; the Universidad de Chile, and the Universidad de Zaragoza in Spain.

Q: With your extensive experience in the region and work with Anabática Renovables, could you please describe the current state of the renewable energy sector in Chile?

Ricardo: Well, we are still growing up. Even though 2020 was a terrible year, our business has experienced interesting growth and next year looks to be going the same. Decarbonization, green hydrogen, investment opportunities, batteries, and more make the position we occupy interesting for all of us who are in it.

Q: Why is investing in renewable energy so important for Chile? And what sectors offer the most promise?

Ricardo: That is difficult to know in the middle of this pandemic! Chile needs to change. It needs more and more green energy to face a greener future and make the national industry more competitive and clean. It means we have to clean up our electrical matrix. We also need to pursue new projects, while the country needs to offer this possibility in a stable market with clear rules.

Q: Why do you consider the need to make a good return on an investment a main barrier or challenge for Chile on its path to clean and affordable energy?

Ricardo: In general, the world does not offer too many opportunities to invest (safely, on a regular basis). In our business, there is still a lot of competition and Chile, due to its economic conception, does not facilitate a return on investment as it happens in many other countries. It is necessary to be extremely cautious with the economic-financial projections, especially with regard to the marginal cost.

Q: Finally, based on your experience and work at Anabática Renovables, how can Chile lead the way towards 100 percent renewable energy? And what progress do you foresee for the region in the coming years?

Ricardo: Working hard. Making good estimations, considering externalities, and paying attention to local communities. We need to think in terms of renewables and batteries.

 

Photo by Amanda Hortiz on Unsplash