
Focusing on the development of low carbon energy and energy services that enable its customers to reduce their carbon footprint, the Group is firmly committed to contributing to the emergence of the green bond market, which is proving to be one of the most promising investment options in the future to finance the energy transition.
Green Bonds are conventional debt instruments: they are bearer securities, generally listed on a regulated market and with the same level of recourse as the borrower's other senior creditors. Their special feature relates to the use of the funds raised; the proceeds of these loans are intended to be invested exclusively in so-called "green" projects, generating climate and/or other environmental benefits and also meeting social and societal criteria. ENGIE issued its first green bonds for an amount of €2.5 billion in April 2014, to support its development plan in renewable energies and energy efficiency. At the end of March 2020, ENGIE's total Green Bonds issuance reached €11.15 billion, making the Group one of the leading corporate issuers on the Green Bonds market.
The evolution of green bonds in relation to the Group's total issuances is presented below.
Information on the Group's various emissions is available in the Green Finance section.
Since 2017, the Group's Green Bonds comply with the provisions of a general reference framework (Green Bond Framework) that ENGIE has defined for all its green emissions to be made from the date of publication of this Framework. This general framework stipulates, among other things, that for each green bond issue, the funds raised are intended to finance the Group's investments in so-called "eligible" projects, i.e. those that meet the environmental, social and societal criteria listed in this framework and defined in collaboration with the extra-financial rating agency Vigéo Eiris.
The eligibility criteria have recently been reviewed and published in a new expanded framework ("Green Financing framework") which will apply from March 2020 to the Group's green financing.
Information on the Group's various emissions and their associated framework is available in the Green Finance section
The framework-eligible categories are likely to contribute to five of the United Nations Sustainable Development Goals ("SDGs"), namely: Goal 7. Affordable and clean energy, Goal 9. Industry, Innovation and Infrastructure, Goal 11. Sustainable Cities and Communities, Goal 13. Climate Action, Goal 15. Life on earth
Eligible green projects | The United Nations SDGs identified | United Nations SDG targets |
Renewable energy production | SDG 7. Affordable and clean energy | 7.2 Significantly increase the share of renewable energy in the global energy mix |
SDG 13. Climate action | The UN's SDG 13 is about taking urgent action to combat climate change and its impacts. Businesses can contribute to SDG 13 by reducing GHG emissions through renewable energy projects. | |
Energy storage | SDG 7. Affordable and Clean Energy | 7.2 Significantly increase the share of renewable energy in the global energy mix |
SDG 13. Climate action | The UN SDG13 is about taking urgent action to combat climate change and its impacts. Businesses can contribute to SDG 13 by reducing GHG emissions through renewable energy storage projects. | |
Transportation and distribution infrastructure | SDG 7. Affordable and Clean Energy | 7.2 Significantly increase the share of renewable energy in the global energy mix 7.3 By 2030, double the global rate of energy efficiency improvement |
SDG 13. Climate action | The UN's SDG 13 is about taking urgent action to combat climate change and its impacts. Businesses can contribute to SDG 13 by reducing GHG emissions through renewable energy transmission and distribution projects. | |
Energy efficiency | SDG 7. Affordable and clean energy | 7.3 By 2030, double the global rate of energy efficiency improvement |
SDG 9. Industry, Innovation and Infrastructure | 9.4 By 2030, upgrade infrastructure and renovation industries to make them sustainable, with increased resource efficiency and greater adoption of clean and environmentally friendly industrial technologies and processes, with all countries taking action in accordance with their respective capabilities | |
SDG 13. Climate action | The UN's SDG 13 is about taking urgent action to combat climate change and its impacts. Businesses can contribute to SDG 13 by reducing GHG emissions through energy efficiency projects. | |
Green buildings | SDG 7. Affordable and clean energy | 7.3 By 2030, double the global rate of energy efficiency improvement |
SDG 13. Climate action | The UN's SDG 13 is about taking urgent action to combat climate change and its impacts. Businesses can help reduce GHG emissions through green building projects. | |
Clean transportation | SDG 9. Industry, Innovation and Infrastructure | 9.4 By 2030, upgrade infrastructure and renovation industries to make them sustainable, with increased resource efficiency and greater adoption of clean and environmentally friendly industrial technologies and processes, with all countries taking action in accordance with their respective capabilities |
SDG 11. Sustainable cities and communities | 11.6. By 2030, reduce the negative environmental impact per capita of cities, including by paying particular attention to air quality and municipal and other waste management. | |
SDG 13. Climate action | The UN SDG 13 is about taking urgent action to combat climate change and its impacts. Companies promoting clean transportation can help reduce GHG emissions through these projects. | |
Sustainable management of the environment of living natural resources and land use | SDG 15. Life on earth | 15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and freshwater ecosystems |
A Green Bond Committee (recently renamed "Green Financing Committee" or Green Finance Committee, aiming to encompass all green finance subjects in general) meets regularly to discuss market developments and projects likely to be financed by the Green Bond - the so called Eligible Projects. It is chaired by the CSR Department and coordinated jointly with the Finance Department. It includes representatives from the Purchasing Department, the Global Care Department, the Ethics & Compliance Department and the main BUs concerned.
ENGIE uses two concepts: (i) the concept of avoided emissions which concern projects of new installations improving, in relative terms, the carbon footprint of a given country and, (ii) the concept of reduced emissions which concern projects of improvement of existing installations which therefore improve the country's carbon footprint in absolute terms.
For power generation projects, the reference methodology for calculating the contribution to avoided emissions is based on a so-called "LCA" (Life Cycle Assessment) approach. This involves comparing the LCA emissions induced by the energy production technique implemented by the project and the average LCA emissions generated for the mix of the country under consideration. ENGIE evaluates the contribution to avoided emissions of the projects financed by the Green Bond by multiplying the difference of the two LCA values mentioned by the nominal capacity of the plant and the average rate of use of the technology. The avoided emissions are calculated for one year of operation of the projects, considered in the normal operating phase and taken at 100% regardless of the Group's ownership rate in these projects.
Project Contribution to Avoided Emissions =
[(LCA Emission Factor of the country mix) – (LCA Emission Factor of the country mix)] x GW installed x Hour of operation over a year
The references by country for the operating rates of the technologies making up the country mix, and the average CO2/kWh emission rates of the energy mix, are taken from data available from Enerdata (Enderdata data). The LCA data for the technologies are taken from the work of the Intergovernmental Panel on Climate Change (IPCC data).
LCA emission factor for energy production by country (TCO2/GWh) – data 2018
To calculate the contribution of energy efficiency projects (including green buildings) to reduced emissions, ENGIE evaluates them by multiplying the energy savings brought by the project by the emissions of the energy mix of the country where the project is developed. Reduced emissions are calculated for one year of operation of the projects, considered in the normal operating phase and taken at 100% regardless of the Group's ownership of these projects.
Project Contribution to Reduced Emissions = LCA Emission Factor d’Emissions ACV of the country mix x GWh of energy savings
For the calculation of the contribution to avoided emissions of projects relating to energy transmission, storage infrastructure or supporting clean mobility, ENGIE evaluates them on a case-by-case basis by estimating the projects' contributions to a greater use of renewable energy or non-carbon energy compared to the existing carbon scenario. Avoided emissions are calculated for one year of operation of the projects, considered in the normal operating phase and taken at 100% regardless of the Group's ownership of these projects.
The main Eligible Projects that were financed in 2019 with the proceeds of the January 2019 Green Bond issue are presented in the following table.
Project type | Technology | Region | Projects name | Country | CAPEX (in million euros) |
---|---|---|---|---|---|
Renewable | Wind | Europe | Projects of CN’AIR, ENGIE Green, LANGA et Saméole | France | 451 |
Windfloat | Portugal | ||||
North America | King Plains, Las Lomas, Live Oak(1), Dakota Range III, Prairie Hill, Triple H, Solomon Forks(1) | United States | |||
Asia and Oceanie | Willogeleche(1) | Australia | |||
Solar | Europe | Projects of CN’AIR, ENGIE Green, LANGA | France | 90 | |
North America | Anson, Bluestone, Gretna, Long Draw | United States | |||
Asia and Oceanie | Lifou, Kota-bore, Lavaghu, Koumac | Nouvelle Calédonie | |||
Biomass-biogas | Europe | VolV biomass | France | 93 | |
DSP Macon(1), DSP Bordeaux | |||||
Biogaz injector | |||||
Geothermal | Asia and Oceanie | Muara Laboh(1) | Indonesia | 13 | |
R&D | Europe | France | 46 | ||
Global capex in million euros for renewable energy projects | 693 | ||||
Energy efficiency | District heating system | Europe | Projects of ENGIE Réseaux | France | 4 |
District cooling system | Europe | Projects of Climespace(1) | France | 6 | |
Energy efficiency | Europe | CertiNergy & Solutions | France | 81 | |
R&D | Europe | France | 47 | ||
Global capex in millions of euros for energy efficiency projects | 138 | ||||
Clean Mobility | Clean Mobility | Europe | ChargePoint | United Kingdom | 165 |
Powerlines | Germany | ||||
GNVvert | France | ||||
EV Box(1) | The Netherlands | ||||
South America | Transantiago(1), Los Andes Rent a Car | Chili | |||
R&D | Europe | France | 4 | ||
Global capex in millions of euros for clean mobility projects | 169 | ||||
Total | Global capex in million euros | 1000 | |||
(1) Eligible projects having received an allocation in previous Green Bonds |
The main new projects concern the development of solar and wind farms in France and North America. The Group has also acquired Vol-V Biomass thus becoming the leading biomethane production in France with the aim of intensifying the development of this sector in France. The main project allocated in terms of energy efficiency is the acquisition of CertiNergy which reinforces the Group's position on energy saving certificates to accelerate the energy transition of companies and communities. In terms of mobility, the green bond of January 2019 has enabled ENGIE to finance various projects presented in the following link (Clean Mobility) and in particular the acquisition of Powerlines, which enables it to become a major player in the electrification of rail networks in Europe
In the full operation phase, the projects are expected to contribute to avoid emissions of at least 3.43 million tons of CO2eq per year: (i) for renewable projects, a minimum of 3.02 million tons of CO2eq/year, (ii) for mobility projects, 0.04 million tons of CO2eq/year, and (iii) for energy efficiency projects, a minimum of 0.37 million tons of CO2eq/year.
The breakdowns by technology and by region of the impacts in tons of CO2 eq per year of the projects financed by the Green Bond of January 2019 are presented below (at 100%).
The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.
Contribution to avoided and reduced CO2 Emissions (T C02 eq/an) | ||||
---|---|---|---|---|
a) linked to development and financial CAPEX taken at 100% | b) linked to development and financial CAPEX taken at % of ownership | c) linked to development CAPEX taken at 100% | d) linked to development CAPEX taken at % ownership | |
Biomass-biogas | 19.917 | 19.917 | 7.887 | 7.887 |
District systems | 18.702 | 18.696 | 18.702 | 18.696 |
Energy efficiency | 350.894 | 350.894 | ||
Geothermal | 462.485 | 161.870 | ||
Solar | 317.619 | 82.726 | 317.619 | 82.726 |
Wind | 2.223.202 | 664.660 | 2.158.423 | 644.579 |
Mobility | 37.676 | 37.676 | 10.525 | 10.525 |
TOTAL | 3.430.495 | 1.336.439 | 2.513.156 | 764.412 |
ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.
The main Eligible Projects which were financed in 2019 by the product of the Green Bond issue of January 2018 are presented in the following table.
Type of projects | Technology | Region | Project name | Country | CAPEX (in million euros) |
---|---|---|---|---|---|
Renewable | Wind | Europe | Seagull 1 and 2(1), ICO Windpark | Belgium | 224 |
Windfloat | Portugal | ||||
Goya(1), Phoenix | Spain | ||||
North America | East Forks(1), Jumbo Hill, Seymour Hills | United States | |||
South America | Tres Mesas 3 and 4(1) | Mexico | |||
Calama | Chile | ||||
Africa | Rhas Ghareb | Egypt | |||
Asia and Oceania | SECI projets, GUVNL | India | |||
Solar | Europe | Seneca | Spain | 313 | |
North America | Fund IV | United States | |||
South America | Trompezon(1), Villa Ahumada(1), Abril(1), Calpulalpan(1), Akin(1), Sol de Insurgentes | Mexico | |||
Capricornio, Tamaya | Chile | ||||
Africa | Kathu(1) | South Africa | |||
Fenix(1) | Ouganda | ||||
PowerCorner, Mobisol | Tanzania | ||||
Scaling solar | Senegal | ||||
Asia and Oceania | Nadec | Saudi Arabia | |||
Retop | China | ||||
Kadapa | India | ||||
Biomass-biogas | Europe | Biogas Plus | The Nederlands | 59 | |
Sisslerfeld(1) | Switzerland | ||||
Biogaz injector, ENGIE New Ventures | France | ||||
Transmission | South America | Gralha Azul | Brazil | 10 | |
Global capex in millions of euros for renewable energy projects | 606 | ||||
Energy efficiency | Energy efficiency | Europe | Smart Grid (GAZPAR) (1), ENGIE New Ventures | France | 267 |
South America | Salto Osaria | Brazil | |||
Energy Storage | World | ENGIE EPS(1) | Italia | 3 | |
Global capex in millions of euros for energy efficiency projects | 270 | ||||
Total | Global capex in million euros | 876 | |||
(1) Eligible projects having received an allocation in previous Green Bond |
Supplemented by a part allocated in 2018
Type of projects | Technology | Region | Project name | Country | CAPEX (in million euros) |
---|---|---|---|---|---|
Renewable | Wind | North America | East Forks | United States | 53 |
Europe | Seamade, Wind4flanders, Wind4Wallonia | Belgium | |||
Europe | Goya, Thor | Spain Norway | |||
Solar | North America | Socore | United States | 49 | |
South America | Floresta (1) | Brazil | |||
Global capex in millions of euros for renewable energy projects | 102 | ||||
Energy efficiency | Energy efficiency | North America | Transantiago(2) | Chile | 22 |
Global capex in millions of euros for energy efficiency projects | 22 | ||||
Total | Global capex in million euros | 124 | |||
(1) Eligible project having received an allocation in previous Green Bond (2) Project evaluated under the "energy efficiency" category which will be subsequently evaluated under the clean mobility category according to the evolutions of the framewok |
The main new projects concern the development of solar and wind farms on all the continents where the Group is present. In addition to the countries where the Group has a platform for the development of renewables (France, Belgium, USA, Mexico) ENGIE inaugurated in 2019 the largest wind farm in Egypt, has also strengthened its presence in Spain and announced the commissioning of the Kathu thermodynamic solar power plant, one of the largest renewable energy projects in South Africa. Financing also contributed to the financing of the first floating wind farm in continental Europe and the acquisition of Mobisol which enables Engie to become the leader in the off-grid solar market.
When fully operational, renewable projects should contribute to avoid emitting greenhouse gases of at least 3.30 million tons of CO2eq / year, while energy efficiency projects should contribute to reduce greenhouse gas emissions of at least 0.09 million tons of CO2eq / year, or a total of 3.39 million tons of CO2eq per year.
The breakdowns by technology and by region of impacts in tons of CO2 eq / year of the projects funded by the Green Bond of January 2018 are presented below.
The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.
Contribution to avoided and reduced CO2 emissions (T C02 eq/year) | ||||
---|---|---|---|---|
a) linked to development and financial CAPEX taken at 100% | b) linked to development and financial CAPEX taken at % of ownership | c) linked to development CAPEX taken at 100% | d) linked to development CAPEX taken at % ownership | |
Biomass-biogas | 86.547 | 82.602 | 48.357 | 44.413 |
Energy efficiency | 85.342 | 80.434 | 85.342 | 80.434 |
Solar | 1.302.314 | 720.988 | 907.478 | 529.298 |
Wind | 1.913.868 | 1.913.868 | 1.104.714 | 443.983 |
Mobility | 650 | 650 | 650 | 650 |
TOTAL | 3.388.722 | 2.798.542 | 2.146.541 | 1.098.778 |
ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.
The total funds allocated to Eligible Projects in 2018 amount to 170 million euros for the year 2017 and 1204 million euros for the year 2018 respectively. These amounts have made it possible to allocate 1250 million euros, i.e. the totality of the Green Bond issued in September 2017. The latter contributed to the financing or acquisition of Eligible Projects in the fields of renewable energy and energy efficiency.
The main projects are presented in the table below, which shows the country in which each project is located, the associated technology and the capex allocated for each project.
Type of projects | Technology | Region | Project name | Country | CAPEX (in million euros) |
---|---|---|---|---|---|
Renewable | Wind | Europe | Projets de ENGIE Green on shore, CN’Air, ENGIE Green offshore (1) | France | 480 |
Seamade | Belgium | ||||
LANGA | France | ||||
North America | Infinity | USA | |||
Live Oak, Solomon Forks | USA | ||||
South America | Tres Mesas 3 et 4 | Mexico | |||
Asia Pacific | Sainshand, Willogoleche (1) | Mongolia, Australia | |||
Solar | Europe | Projets de ENGIE Green, Solaire Direct, CN’Air | France | 387 | |
LANGA | France | ||||
South America | Intipampa, Villa Ahumada, Abril, Calpulalpan, Trompezon, Akin | Mexico, Peru | |||
Africa | Kathu | South Africa | |||
Fenix | Ouganda | ||||
South America | Paracatu (1) | Brazil | |||
Biomass | Europe | GNVert, DSP Macon (1) | France | 51 | |
Sisslerfeld (1) | Switzerland | ||||
Transport | South America | TEN | Chile | 48 | |
Geothermal | Asia Pacific | Muara Laboh | Indonesia | 12 | |
Global capex in millions of euros for renewable energy projects | 978 | ||||
Energy efficiency | Clean Mobility (2) | Europe | EV-BOX | Pays-Bas | 85 |
Energy Storage | World | Electro Power System (EPS) | World | 57 | |
District systems | Europe | Climespace (1) | France | 4 | |
Energy efficiency | Europe | Keepmoat (1) | UK | 126 | |
Projets d’efficacité - C13 | France | ||||
Smart Grid (GAZPAR) (1) | France | ||||
Global capex in millions of euros for energy efficiency projects | 272 | ||||
Total | Global capex in millions euros | 1250 | |||
(1) Eligible projects that received an allocation in the Green Bond of March 2017 (2) Projects evaluated on the basis of energy efficiency criteria but which will subsequently be integrated and evaluated according to the "Clean Mobility" category projects integrated into the Group's Green Bond Framework in January 2019. |
Description of projects:
ENGIE considerably expanded its wind development portfolio in the U.S by acquiring Infinity Renewables, a leading developer of utility-scale wind projects in the United States. The acquisition includes more than 8,000 MW of projects in various stages of development. In end of 2018 ENGIE announced the start of construction of the 276 MW Solomon Forks Wind Project and the 196 MW East Fork Wind Project in northwest Kansas.
ENGIE confirmed in 2018 its number one position in the solar and wind energy sectors in France with the acquisition of the LANGA group. Founded in 2008, the LANGA group, based in Brittany, is one of the most active independent producers of renewable energy, simultaneously present in solar, wind, biogas and biomass. The group is developing 1.3 GW of projects due to be completed by 2022.
ENGIE announced on 30 January 2019 the commercial operation of the 100 MW Kathu Solar Park in South Africa. This state of the art plant is a greenfield Concentrated Solar Power (CSP) project with parabolic trough technology and equipped with a molten salt storage system that allows for 4.5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation and during peak demand. Kathu is the first CSP development for ENGIE.
Transmisora Eléctrica del Norte (TEN), a subsidiary of ENGIE (50%) and Red Eléctrica Internacional (50%) put into service the first electricity interconnection between Mejillones (Antofagasta Region) and Cardones (Atacama Region) of 500 kilovolts of voltage and 600 kilometers in length. The interconnection between the SING (Norte Grande Interconnected System) and the SIC (Central Interconnected System) networks will create a single, more robust, competitive system which will facilitate the entry of renewable projects.
ENGIE aimed at being at the forefront of the energy transition with the acquisition in 2018 a majority stake of Electro Power Systems (EPS), a pioneer in hybrid solution storages. EPS is a company specialised in energy storage solutions and microgrids that enable intermittent renewable sources to be transformed into a stable power source. With the transaction, both companies aim at further accelerating their vision to be at the forefront of the energy transition, with special focus on decentralised energy solutions.
ENGIE acquired EV-Box a leading electric charging player. Thanks to this combination, ENGIE intends to be a major global player in this space facilitating the development of clean mobility for its customers, while providing the essential energy solutions to manage the energy needs of electric vehicle charging for customer sites and the electricity network.
In the full operating phase, renewable projects (at 100%) should contribute to avoid greenhouse gas emissions of at least 3.01 million tons of CO2eq/year while energy efficiency projects (at 100%) should contribute to reduce greenhouse gas emissions of at least 0.15 million tons of CO2eq/year, that is, a total of 3.16 million tons of CO2eq per year.
Technology and regional breakdowns of the impacts in tons of CO2 eq of the projects financed by the Green Bond of September 2017 are set out below (at 100%).
The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.
Contribution to avoided and reduced CO2Emissions (T C02 eq/year) | ||||
---|---|---|---|---|
a) linked to development and financial CAPEX taken at 100% | b) linked to development and financial CAPEX taken at % of ownership | c) linked to development CAPEX taken at 100% | d) linked to development CAPEX taken at % ownership | |
Wind | 2.057.701 | 1.758.887 | 1.009.013 | 939.869 |
Solar | 528.506 | 455.911 | 399.068 | 391.228 |
Geothermal | 398.396 | 139.439 | ||
Energy efficiency | 136.851 | 136.851 | 38.459 | 38.459 |
Biomass | 21.568 | 19.353 | 21.568 | 19.353 |
Energy storage | 8.589 | 5.144 | ||
Clean mobility | 697 | 697 | ||
Disctrict cooling | 236 | 217 | 236 | 217 |
Transmission | 4.449 | 1.174 | ||
TOTAL | 3.156.993 | 2.517.672 | 1.468.343 | 1.389.126 |
ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.
The total funds allocated under this issue to Eligible Projects developed during the years 2016 and 2017 amount to 81 million euros and 1419 million euros respectively. These amounts make it possible to allocate €1,500 million, i.e. the totality of the Green Bond issued in March 2017. The March 2017 Green Bond contributed to the financing or acquisition of Eligible Projects in the fields of renewable energy and energy efficiency.
Project type | Technology | Region | Project name | Country | CAPEX (in million euros) |
---|---|---|---|---|---|
Renewable | Wind | Europe | Projets de CN’AIR, ENGIE Green, LCV) | France | 293 |
Moray | UK | ||||
South America | Campo Largo | Brazil | |||
North America | Très Mesas | Mexico | |||
Oceania | Willogoleche | Australie | |||
Solar | Europe | Solaire Direct, Projets de ENGIE Green, CN’AIR, LCV | France | 72 | |
South America | Paracatu, Floresta (1) | Brazil | |||
Biomass | Europe | Macon | France | 47 | |
Sissleerfeld | Switzerland | ||||
Global capex in million euros for renewable energy projects | 412 | ||||
Energy Efficiency | District cooling | Asia | Tabreed | Emirats Arabes Unis | 657 |
Energy Efficiency | North America | Green Charge | USA | 51 | |
Ohio State university | USA | 126 | |||
Europe | Keepmoat | UK | 146 | ||
Smart Grid (GAZPAR) | France | 78 | |||
South America | Salto Santiago | Brazil | 9 | ||
Divers | 21 | ||||
Global capex in million euros for energy efficiency projects | 1088 | ||||
Total | Global capex in million euros | 1500 |
ENGIE, a major player in renewable energy production in France, is committed to the energy transition and the development of renewable projects The allocated capex related to the wind and solar projects of its solely owned subsidiary ENGIE Green, resulting from the merger of Futures Énergies and Maia Eolis in 2016 and LCV - La Compagnie du Vent - in 2017 and its subsidiary CNR (Compagnie Nationale du Rhône - 49.9%) through its subsidiary CN'Air (hydroelectricity, onshore wind and solar photovoltaic) for a total installed capacity of 142 MW and 36 MW respectively for wind and solar power. Also worth noting are the two offshore wind projects in Dieppe/Le Tréport, and l’Ile d’Yeu/Noirmoutier (2 x 500 MW in capacity, projects 47% owned by ENGIE). The 2016 financial capex relating to the buyout of minority interests in Solaire Direct has also been included.
ENGIE, which is the main private electricity producer in Brazil (about 6% of the country's installed capacity) is continuing its development through new renewable energy production projects. Thus renewable energy represents 90% of its installed capacity in Brazil. Capex projects currently under construction and financed by the Green Bond are the Campo Largo onshore wind farm (327 MW), and the Floresta (86 MW) and Paracatu (132 MW) solar farms.
In September 2011, the Group won a contract with the Portuguese company EDP Renováveis to develop a 950 MW offshore wind farm in the United Kingdom. ENGIE stake: 23%.
ENGIE began pre-construction work in 2017 on the 119 MW Willogoleche wind farm near Hallett in the Mid North region of South Australia. ENGIE's interest in this project is 72%.
Two cogeneration projects to supply heating networks and operating in biomass co-combustion were integrated into the Green Bond of March 2017 (Mâcon in France - 100% ENGIE, and Sisslerfeld in Switzerland - 60% ENGIE) for an injected biomass estimated at 230 GWh.
In July 2017, ENGIE bought a 40 percent stake in Tabreed (National Central Cooling Company PJSC), which provides innovative cooling solutions for buildings and other infrastructure to the United Arab Emirates and the member countries of the Gulf Cooperation Council (GCC). The company delivers the equivalent of over 1 million tons of cooling to its clients across 71 district cooling plants located throughout the region, replacing individual refrigeration systems with 40% lower efficiency.
In April 2017, ENGIE (50%) and Axium Infrastructure US (50%) won a 50-year concession to sustainably manage Ohio State University’s energy infrastructure. The contract pertains to the operation and optimization of the university’s energy production and distribution facilities, and energy efficiency services to reduce energy consumption by 25% within the first ten years of the contract.
In March 2017, ENGIE acquired Keepmoat Regeneration, the UK’s leading provider of regeneration services, improving buildings, places and communities through refurbishment and upgrade. Keepmoat has extensive capabilities in creating zero carbon new homes, retrofitting high-rise residential accommodation and supporting the cost reduction and energy efficiency targets of community regeneration projects, such as insulation and heating solutions to on-site generation and energy consultation services. Energy savings were estimated using statistical data based on installed technology. Most of the savings were generated from heat insulation with an estimated efficiency of 20 percent.
In 2016, ENGIE acquired an 80 percent stake in California-based battery power storage company Green Charge Networks (Green Charge). It uses advanced patented software algorithms and analytics to optimize battery systems at commercial & industrial (C&I) and public sector customer sites in the United States. These systems generate financial and environmental benefits by storing energy from an efficient system (generally combined cycles) and avoiding non-efficient peak systems considered 40% less energy efficient.
Since January 2016, more than 160,000 smart meters have been installed in 24 pioneering municipalities. The general roll-out of these gas meters began in May 2017 and will gradually be extended to all French metropolitan regions, benefiting approximately 11 million customers. The smart gas meter allows customers to monitor their consumption to better control it. A technical and economic study carried out under the supervision of the French Energy Regulation Authority ("CRE") based on the GRDF scope, estimated the total possible gains in terms of energy savings following the installation of these smart meters at 1.5%.
For CDM (Clean Development Mechanism) projects registered and approved by the United Nations, the results of the calculations are based on the underlying methodologies
PROJECTS | Avoided emissions TCO2/AN | RÉFÉRENCE UNFCCC |
---|---|---|
Campo Largo | 778 493 | |
Floresta | 119 806 | |
Paracatu | 161 341 | CPA 10286-0004 : Paracatu Solar Power Complex |
In the full operating phase, renewable projects (at 100%) should contribute to avoid greenhouse gas emissions of at least 2.2 million tons of CO2eq/year while energy efficiency projects (at 100%) should contribute to reduce greenhouse gas emissions of at least 1.1 million tons of CO2eq/year, that is, a total of 3.3 million tons of CO2eq per year.
Technology and regional breakdowns of the impacts in tons of CO2 eq /year of the projects financed by the Green Bond of March 2017 are set out below (at 100%).
The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.
Contribution to avoided and reduced CO2Emissions (T C02 eq/year) | ||||
---|---|---|---|---|
a) linked to development and financial CAPEX taken at 100% | b) linked to development and financial CAPEX taken at % of ownership | c) linked to development CAPEX taken at 100% | d) linked to development CAPEX taken at % ownership | |
Solar | 313 001 | 313 001 | 282 099 | 282 099 |
Wind | 1 867 418 | 963 773 | 1 058 029 | 752 047 |
Biomass | 36 601 | 34 404 | 36 601 | 34 404 |
District systems | 675 814 | 285 985 | 30 024 | 27 668 |
Efficiency | 450 189 | 322 963 | 182 088 | 170 086 |
TOTAL | 3 343 023 | 1 920 126 | 1 588 841 | 1 266 305 |
ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.