What is ENGIE's ambition in renewable energies?
Starting from a solid base with 24.4 GW of installed renewable capacity (including approximately 5.5 GW of wind, 2 GW of solar, 16 GW of hydro), the ambition of the Group is to become a major player renewable energy plan in the world, recognized both for its industrial know-how through a presence on the entire value chain (from the development of parks to the supply of green energy to end clients) The Group aims to add 9 GW of additional capacity to its portfolio by 2021. In the short term (2021) the Group will accelerate on the most mature sectors, such as onshore wind (+6 GW) and solar ( + 2 GW) while preparing for the future in the most sophisticated sectors such as offshore wind (the Group's first offshore wind farm commissioned in 2021: Seamade in Belgium), green gas (through development of hydrogen and biomethane) and the storage of electricity (via the development of microgrids in particular).
What is ENGIE’s strategy for achieving its ambition to increase its capacity by 9 GW by 2021?
ENGIE’s strategy for achieving its ambitions in renewables is based on four pillars that allow it to maximize value creation for the Group and its customers:
- The Group’s industrial expertise to develop its competitive capabilities for the benefit of its customers. This relates to the development of corporate and city PPAs (Power Purchase Agreements), sophisticated contracts between a renewable project developer on the one hand and an end consumer, which could be a company or a town (potentially via an aggregating intermediary), on the other. These contracts frequently offer electricity at a stable price over a long period of time (more than 10 years). The Group aims to develop 50% of its new renewable projects through these types of contracts by 2021;
- Acceleration of the most sophisticated technologies with high potential: fixed and floating offshore wind (based on the expertise acquired from a capacity of around 2.5 GW in development worldwide and two floating pilots), the green gases hydrogen and biomethane, and all forms of energy storage (through hydrogen and batteries and/or microgrid);
- A geographic footprint focused on those regions where the Group already has strong or high- potential leadership positions, whether in client solutions or renewable energy;
- The application, wherever possible, of its DBpSO business model (Develop, Build, partial Sell, Operate), in which the Group develops and builds parks, then sells part of them to a financial partner and handles their operation, maintenance and energy management. This highly competitive business model – already successfully developed by the Group – makes it possible to simultaneously win more projects, improve their profitability and ensure a better rotation of the Group’s share capital, all while retaining the entirety of the industrial management of these parks.
What are the main strengths of ENGIE compared to its competitors?
ENGIE is a Group with a dual DNA, both a large infrastructure manager and a client solution provider. This is a real competitive advantage in a market where upstream and downstream are getting closer. Few of our competitors are present at this point on the entire value chain, from upstream to downstream. We have more than 5000 people working today in the development and operation of renewable parks around the world, 2000 people specialized in energy management in the market who know how to build complex products to meet the specific needs of clients and 100,000 people, present daily at our clients. This fine knowledge of our clients, their needs will be a key asset for the acceleration of our development in the service of our zero carbon strategy.