Global Energy News June by AI Global Media

ISSUE ONE - JUNE

PIONEERING RENEWABLE ENERGY EBRD has pioneered the use of renewable energy resources in many countries Page 36

BLUEJACK ENERGY SOLUTIONS SECURES $100 MILLION PRIVATE EQUITY COMMITMENT FROM ENERGY SPECTRUM CAPITAL Page 42

INNOVATIVE DSOS ARE NEEDED IN A DECENTRALISED ENERGY SYSTEM Page 22

CONTENTS

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AQUILA CAPITAL PROVIDES INSTITUTIONAL INVESTORS WITH RENEWABLE ENERGY INFRASTRUCTURE BOND SOLUTION Aquila Capital is providing institutional investors with access to its latest diversified renewable energy portfolio - the Aquila Capital Renewables Fund III - via a bond solution. The securitisation, which already has been given an indicative investment grade rating by an ESMA-recognised rating agency, is targeting an A- rating thanks to the high quality of the underlying portfolio, its efficient structure and very modest structuring costs. Both the securitisation and a direct investment in the Fund provide investors with access to a conservative, broadly diversified portfolio of wind and photovoltaic plants in politically stable countries in Western Europe. The Fund is already invested in 13 operational renewable energy plants in Sweden, Germany, the United Kingdom and France, and benefits from a pipeline of potential investments in excess of EUR 350 million.

Susanne Wermter, Head of Investment Management, Special Infrastructure Team, said: “Having already catered to the growing requirement for securitisation solutions from our investors in recent years, we are now receiving numerous requests for securitisation solutions for our renewable energy infrastructure funds. For institutional clients – who have to comply with various regulatory regimes – securitisations are an attractive alternative to investing in renewable infrastructure.”

Roman Rosslenbroich, CEO and Co-Founder of Aquila Capital, said:” We actively had the securitisation reviewed by a reputable audit firm with respect to its regulatory, legal and tax suitability for the Fund’s anchor investor - a leading German insurance company. Due to significant demand, we are now making this investment opportunity available to additional investors.”

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LATEST OFFICIAL EU FIGURES ON NEW CAR CO2 EMISSIONS ARE ‘HOT AIR’ The official new car CO2 figures for 2016 published in April by the European Environment Agency are worthless and the claimed savings hot air, green transport group Transport & Environment (T&E) has said. The testing system is utterly discredited and the claimed fall in emissions is largely achieved through manufacturers manipulating the outdated tests. In 2015 new passenger cars emitted on average 119.6 grammes (g) of carbon dioxide (CO2) per kilometre – 3% lower than in the previous year. The reality on our roads is that the efficiency of new cars has been largely unchanged for four years.

Greg Archer, clean vehicles director at Transport & Environment, said: “Official figures on carmakers’ new car CO2 emissions are hot air. Most of the measured improvement is being delivered through manipulating tests, not realworld reductions. The chasm between the reported data and reality makes today’s announcement worthless. Without a new test conducted by genuinely independent testing bodies, drivers will continue to be misled while the planet warms.”

and CO2 data, which is typically 40% higher that the official figures. The real-world performance will be assessed for all PSA models by the summer providing drivers with the information they need to make an informed choice. “Peugeot-Citroën is leading the way in providing realistic fuel consumption information for drivers and it is time for other manufacturers to follow suit. But the European Commission also must require real-world CO2 tests to complement those they recently introduced for nitrogen oxide air pollution from cars”, Greg Archer concluded.

The long overdue regulations to introduce the new test must be tabled immediately by the European Commission and commence next year. Until Europe gets a new test conducted by independent testing organisations drivers will continue to be deceived and progress to tackle CO2 emissions from cars will stall.

The EU’s first obligatory rules on carbon emissions require car manufacturers to limit their average car to a maximum of 130g of CO2 per kilometre by 2015, and 95g by 2021. Manipulation of tests has therefore contributed to average emissions achieving the target two years early.

T&E has been collaborating with PeugeotCitroën to produce a real-world driving test that generates realistic fuel consumption

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GROWING DEMAND FOR DISTRIBUTED GENERATION WILL FOSTER THE GLOBAL COGENERATION EQUIPMENT MARKET According to the latest research study released by Technavio, the global cogeneration equipment market is expected to attain a CAGR of 4.57% until 2020.

This research report titled ‘Global Cogeneration Equipment Market 20162020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments, including steam turbines, gas turbines, CCGT, engines, and others.

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Others 6% Source: Technavio research

Global cogeneration equipment market by steam turbines: largest segment. Steam turbines are a conventional way of cogeneration that range in capacities from 500 kWe to 80 MWe. It is one of the most commonly used cogeneration technologies in industries such as pulp and paper, wherein coal is used as the primary fuel. The robust design of steam turbines has few moving parts that make it easy to operate and maintain. These turbines produce more heat than electricity per unit of fuel consumed, and thus exhibit a high heat-to-power ratio. There are two types of steam turbines—back pressure steam turbines and condensing steam turbines. Back pressure steam turbine are used in applications wherein the demand for heat is high. These type of turbines are used for drying papers or heating water. Condensing steam turbines are used in energy-intensive industries and utilities wherein electricity is the major output.

“With the ever-growing global demand for power, providing electricity with the help of technologies such as coal and natural gas-based power plants will cease to remain feasible due to rising environmental concerns and stringent energy efficiency standards. Therefore, CHP proves to be an effective solution to meet the growing energy demand,” said Anju Ajaykumar, one of Technavio’s lead analysts for engineering tools. “Cogeneration is one of the most efficient ways of energy conversion. Implementation of this technology has a positive impact on the economy, environment, resources, and energy outlook of a country,” added Anju.

APAC accounts for the highest share in the steam turbine segment, with the major demand emanating from China. China’s growth in the paper and pulp industry has influenced the growth of cogeneration equipment in the region.

Segmentation of global cogeneration equipment market by technology 2015 • Steam turbines 48.50% • Gas turbines 21% • CCGT 21% • Engines 12%

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Global cogeneration equipment market by gas turbines: second-largest segment. Gas turbine systems are commonly used in large cogeneration power plants. The electrical capacity ranges from 250 KW to 200 MW. This technology is used in industries such as oil and gas, chemical, and district heating utilities, wherein the demand for electricity is higher. Most of the turbine output during cogeneration is used for generating electricity and exhaust gas is used for applications such as space heating, steam generation, or heating water. Gas turbine-based cogeneration systems offer higher exhaust output temperature, and have the ability to start and stop the plant within a day.

Browse related reports: • Construction Equipment Market in the APAC 2015-2019 • Global Construction Equipment Rental Market 2015-2019 • Construction Equipment Market in Indonesia 2015-2019 Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio. com with your requirements and a link to our subscription platform. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Though gas turbine-based cogeneration incurs high operating costs, the cheap availability of gas makes it a preferred option in natural gas abundant regions such as Europe, North America, and Japan. EMEA accounts for more than 50% of the market share. Large-scale use of district heating coupled with cheap availability of gas drives the market in this region. Low CO₂emission is an added advantages of gas turbine-based cogenerations.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.

Global cogeneration equipment market by CCGTs: third-largest segment. CCGT-based cogeneration systems consist of a gas turbine and a steam turbine. Hightemperature exhaust gases are passed through heat recovery steam generators (HRSGs), which generate steam for industrial applications or for space heating. A high electrical energy-efficient CCGT cycle gives additional advantage over other technologies.

If you are interested in more information, please contact our media team at media@technavio. com.

This technology is widely used in regions where demand for space heating is high. Europe and North America are the two regions where CCGT-based cogeneration is extensively used. In 2015, EMEA accounted for 68% of the global CCGT-based cogeneration equipment market, followed by the Americas with 25%. Availability of gas will remain a key driving factor for the use of CCGT in respective regions.

Contacts Technavio Research Jesse Maida Media & Marketing Executive US: +1 630 333 9501 UK: +44 208 123 1770 www.technavio.com media@technavio.com

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OIL & GAS UK WELCOMES RELEASE OF GOVERNMENT-FUNDED

In response to Oil and Gas Authority’s announcement in April 4 that it has begun the release of data from the successful 2015 Government-funded seismic shoot in the Rockall Trough and Mid-North Sea High regions, Deirdre Michie, Oil & Gas UK’s chief executive, said: “We welcome the news that the Oil and Gas Authority is now releasing into the public domain the substantial volume of seismic data from the UK government-funded surveys. This marks a milestone in the collective efforts to re-energise exploration activity on the UK Continental Shelf (UKCS). The OGA is publishing the data via the UKOilandGasData.com portal, the industry’s shared data management service operated by Common Data Access (CDA), a subsidiary of Oil & Gas UK.

“There is a comprehensive array of information available, including both newly acquired and legacy seismic data plus gravity and magnetic maps and well data. It represents a new dimension in both the quantity and quality of subsurface data available in these frontier areas, which should help stimulate further interest in the forthcoming 29th Licence Round. Record numbers of organisations both in the UKCS and overseas have already registered an interest in downloading the data and it is a testament to the focus and hard work of many individuals that the project has been delivered so effectively.

additional £20 million available to fund new seismic data acquisition this year for release in 2017 and this is also very much to be welcomed. The industry is working with the OGA to help identify the priority areas where the new data should be acquired. The results from these surveys will again be made available to the wider industry and academia.” Malcolm Fleming, CDA’s chief executive, said: “CDA was set up by industry in 1995 as a collaborative initiative to provide on-line services for the secure storage, controlled sharing and release of UKCS well and seismic data. CDA’s UKOilandGasData portal provides the ideal platform for delivering the OGA seismic data packages to exploration companies and other parties, swiftly and cost-effectively, anywhere in the world.”

“The industry recognises the government’s commitment to stimulating exploration in the UKCS, where we believe billions of barrels of oil and gas are yet to be recovered. The government is making an

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SHIFT TOWARD ORGANIC PRODUCTS TO SIGNIFICANTLY PROPEL THE GLOBAL BIO-BASED PROPYLENE GLYCOL MARKET UNTIL 2020, SAYS TECHNAVIO According to the latest research report released by Technavio, the global bio-based w market is expected to reach USD 575 million by 2020.

This report titled ‘Global Bio-based Propylene Glycol Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. The report presents projections for the overall market based on application and geographical segments. “The demand for bio-based products is expected to increase rapidly during the forecast period due to the demand from the pharmaceutical, cosmetics, and food sectors. It is expected to translate into a demand for bio-based propylene glycol in these sectors. For instance, the global organic personal care products market is expected to grow at a CAGR of more than 10% during the forecast period. The market is expected to touch USD 13.25 billion in revenue by 2018. Rising concerns over health, side effects of synthetic products, and hygiene will therefore continue to propel market growth until 2020,” said Chandrakumar Badala Jaganathan, one of Technavio’s lead industry analysts for bio chemicals and materials. Some of the other driving forces behind the growth of the global bio-based propylene glycol market are as follows: • Demand from automobile industry

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Growing demand from APAC Rising environmental concerns

The global automobile industry is expected to grow rapidly during the forecast period. Economic recovery in the US and Europe has increased the demand for automotive products. The recovery has also increased employment, increased per capita income, and accessible credit facilities, increasing the buying power of consumers. This demand will compel automotive manufacturers to increase their production levels by either installing new capacities or expanding the existing ones. The global automobiles market is expected to grow at a CAGR of 5%-6% during the forecast period. Bio-based propylene glycol is used for different applications in the automobile industry such as sheet molding compounds and antifreeze agent. Growing demand from APAC APAC is the strongest growing market for bio-based propylene glycol. The rapid increase in industrialization and developments in infrastructure in China, India, and South Korea are the primary drivers for bio-based propylene glycol in this region. The construction market in

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China is expected to rise to USD 2.49 trillion by 2019, growing at a CAGR of 12.14% during 2016-2020. Unsaturated polyester resins made from propylene glycol are widely used for construction. Therefore, the growth in construction market will translate into the demand for bio-based propylene glycol over the forecast period. Rising environmental concerns Propylene glycol is produced from propylene oxide and is widely used in the manufacture of plastics, food products, electronics, and pharmaceuticals. However, growing environmental concerns such as the use of perishable resources (petroleum) and hazardous petrochemical process pollutants released during the production and use of propylene glycol have compelled vendors to develop advanced bio-based processing technologies. Although propylene glycol is recognized safe, the acceptable intake is only 25 mg per kg of body weight (according to WHO). Bio-based propylene glycol is eco-friendly and complies with stringent government regulations regarding emission. ADM, a US-based company, has been manufacturing bio-based propylene glycol in its Illinois, US plant since 2011. It has a plant capacity of 100 kilotons per year. The company also manufactures industrialgrade bio-based propylene glycol using refined glycerin as feedstock. In addition, the company has developed an innovative technology for the production of bio-based propylene glycol using sorbitol. Realizing the potential of this market, many new entrants are anticipated to flock to this market in the next four years.

Purchase any three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at media@ technavio.com. Contacts Technavio Research Jesse Maida Media & Marketing Executive US: +1 630 333 9501 UK: +44 208 123 1770 www.technavio.com

Browse related reports • Global Propylene Market 2015-2019 • Global Hydrogen Peroxide Market 2015-2019 • Global Styrene Market 2015-2019 • Global Polyols Market 2015-2019

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STUDY IDENTIFIES NEW TECHNOLOGIES TO IMPROVE ASSET INTEGRITY In the critical area of offshore asset integrity, a new study published by Oil & Gas UK promises to broaden awareness of the array of technologies developed and deployed successfully by the industry and other sectors which could be used to great effect in delivering safe and effective improvements in efficiency.

‘The Asset Integrity Theme Landscaping Study’, which Oil & Gas UK commissioned from Lockheed Martin on behalf of the Maximising Economic Recovery for the UK Continental Shelf (MER UK) Technology Leadership Board, focuses on two key areas. These are technologies with the potential to improve the inspection of pressured systems including process vessels used to extract and produce oil and gas and, secondly, methods for more effectively managing corrosion under insulation (CUI) of onshore and offshore structures. The study compiles the range of technologies available, as well as those under development, and is one of the first outcomes of the MER UK Forum, led by the Oil and Gas Authority (OGA), with the remit to work across government and industry to help restore competitiveness to the North Sea basin. Contributors to the study, which was championed by representatives from both TOTAL E&P UK Limited and Amec Foster Wheeler, include the Oil and & Gas Innovation Centre (OGIC) and the Industry Technology Facilitator (ITF) together with the collaborative input of more than 90 technology-focused industry representatives working with operators, prime contractors, SMEs, government and research councils, innovation centres, joint industry bodies and academia.

Paul White, GE Oil and Gas’s director of subsea technology and industry co-chair of the MER UK Technology Leadership Board, said: “The MER UK Technology Leadership Board’s strategy is to promote a co-operative approach which encourages contributors to develop technologies for the UK Continental Shelf (UKCS) which are relevant to multi field application and focused on priority areas where there is most potential for delivering significant improvements in performance. “This study explores technologies, such as ultrasonic and electromagnetic techniques, which have the potential to improve internal inspections of process vessels which are used in processes such as the separation of oil and gas and produced water offshore. The deployment of new technologies would allow offshore teams to gather more detailed information on the integrity of these assets enabling them to more rapidly pinpoint priority areas for attention, reduce production downtime during a shutdown and minimise exposure to hazards. “The report also looks at methods including acoustic resonance and microwave sensing, which could be safely used to reduce the time and costs involved in detecting, inspecting and managing corrosion under insulation in structures, including pipelines. Delivering improvements in

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these key areas will help efforts to improve asset integrity, contribute to production efficiency and safely extend the operating lives of oil and gas fields.” Angela Seeney, Oil and Gas Authority’s director for technology, supply chain and decommissioning and co-chair of the Technology Leadership Board said: “This study illustrates in a very tangible way the breadth of opportunity for the UK oil and gas industry to benefit from innovative technologies and achieve the sustainable cost efficiencies needed for today’s UKCS operations. The Technology Leadership Board is grateful to Oil & Gas UK for funding this important study and to the participating companies leading and executing it”. Alec Harley, energy sector director, IS&GS Lockheed Martin UK, said: “We gathered some fascinating information from a large cross section of specialists, including those in other high performing sectors such as the medical, space exploration and nuclear industries, where technological advances are driving significant improvements in efficiency. We are optimistic some of these will help stimulate exciting technology innovations in the oil and gas industry.” Ian Phillips, OGIC’s chief executive, said: “In a clear demonstration of the sector’s co-operative efforts to tackle its cost base and improve efficiency, more than 90 technology-focused industry representatives contributed to furthering the study by participating in two workshops based on Lockheed Martin’s initial research on existing and emerging technologies.” “We believe this comprehensive study, which assesses technologies with respect to their maturity, cost, risk, benefit and applicability to the oil and gas industry, will play an important role in the sector’s collective efforts to secure a safe, productive and enduring future for the UK Continental Shelf.”

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ENERGY EFFICIENCY

EBRD TO SUPPORT TRANSPORT AND WATER SECTORS IN EGYPT

The European Bank for Reconstruction and Development (EBRD) and the Ministry of International Cooperation (MOIC) of Egypt have signed two Memorandums of Understanding (MoU) aimed at delivering a significant improvement in the quality of services provided to the Egyptian people in the transport and water sectors.

Under the first MoU, the EBRD will aim to contribute to the rehabilitation of the Heliopolis tram link between the Ramsis and Almaza areas in Cairo with the overall cost estimated to be US$ 500 million.

In line with Egypt’s National Water Resource Plan and MWRI’s Joint Irrigation Sector Approach (JISA), the Bank will promote the transition from a centrally managed system to one that is community-based by increasing the farmer’s operational responsibilities.

The EBRD expects to provide an investment package of US$ 250 million divided in two tranches. A sovereign loan of up to US$ 125 million would finance infrastructure works to be implemented by the National Authority for Tunnels. The second tranche is a loan of up to US$ 125 million potentially to a private company for the procurement of rolling stock and for the operation and maintenance of the fleet. The Heliopolis Tram Project is a continuation of the EBRD’s engagement in the development of Cairo’s urban transport system and forms part of the Bank’s wider integrated approach for the sector, which focuses on the lack of integration of transport modes in the capital. In preparation, the Bank has mobilised grant funds from the EBRD Infrastructure Project Preparation Facility (IPPF) to fund the feasibility study and conceptual design of the project. In addition, the Bank will seek to mobilise grant funds to be used for the implementation of the project. The second MoU is the Bank’s first formal engagement in developing a water irrigation system. The Bank will participate in a programme developed by the Ministry of Water Resources and Irrigation (MWRI) of Egypt for the modernisation of the irrigation system to increase the efficiency and quality of services. Investing in the development of water quality management and the implementation of modern irrigation is part of the Bank’s Green Economy Transition approach. The EBRD’s financing will help improve climate resilience and the efficient use of water and energy in the agribusiness sector, which consumes over 86 per cent of total water resources in Egypt.

The investments will be complemented by considerable technical assistance for project preparation and implementation. During the signing of the MoU at the Bank’s Headquarters, EBRD President Sir Suma Chakrabarti said: “We are very pleased to contribute to these two crucial sectors and to make a positive difference in people’s lives. These projects will enhance the quality of services and the engagement of the private sector. This partnership will help to create a better environment for reforms in the water and energy sectors that will improve productivity.” Dr Sahar Nasr, Egyptian Minister of International Cooperation and Egypt’s EBRD Governor, said: “These two projects are of vital importance to the development of the urban transport and irrigation sectors in Egypt. They will provide improved services to the Egyptian public and increase the quality of our institutions to manage operations, ensuring long term sustainability. MOIC are pleased that the EBRD has consolidated its commitment to the urban transport sector in Cairo and is also demonstrating flexibility by engaging in new sectors such as irrigation.” The EBRD has invested over €1.7 billion in Egypt through 34 projects since the start of its activities in the country at the end of 2012. The Bank’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater and contributions to the upgrade of transport services.

ENERGY EFFICIENCY

EXCEL DRYER GIVES UNIVERSITY OF READING GREEN LIGHT TO SAVE ENERGY

Independent research leads university to discover that the new XLERATOReco® Hand Dryer uses 55 percent less energy than the UK blade-style hand dryer, representing an annual savings of $2,155.20 this month.

The University of Reading has long been at the forefront of sustainability research and initiatives to mitigate its own environmental impact and reduce its carbon footprint. The London-based research university has made a number of changes to its existing campus infrastructure to ensure its facilities are environmentally ready for the future. In 2011, Dan Fernbank was brought in as the Energy Manager at the University of Reading. He had previously spent four-and-a-half years working for the Carbon Trust in a variety of roles and establishing a national carbon reduction program for schools. Fernbank has led several highly successful sustainability initiatives at the university, the most recent of which was the installation of the high-speed, energy-efficient XLERATOReco® Hand Dryers throughout the campus, which the university chose over the UK blade-style model after careful consideration.

“We conduct research about climate science and sustainable construction, so we need to lead by example. Manufacturers like Excel Dryer – who continue to innovate sustainable products like the high-speed, energy-efficient XLERATOReco Hand Dryer – allow us to do that,” said Fernbank. “This independent research provided assurance; someone has looked at each of these machines and come up with how much energy they would use. The research supported the XLERATOReco Hand Dryer for the long-term. This was a good opportunity to go beyond what had been done in the past and make some additional savings.”

In order to ensure that the university was installing the most sustainable hand drying solution available, Fernbank reviewed independently verified energy performance data of various high-speed hand dryers. Using the Salix Finance hand dryer calculation tool and the Carbon Trust’s Energy Technology List, Fernbank determined that the XLERATOReco Hand Dryer was the best option for the university. According to the Salix calculator, XLERATOReco Hand Dryers offer the following benefits vs. the UK bladestyle model to replace conventional hand dryers: Compared to the UK blade-style hand dryer, the XLERATOReco • Dries hands in 12 seconds* using only 500 watts versus 1,600 watts (At 230 Volt, 50 Hz) • Uses 55 percent less energy per use • Saves the university $2,155.20 annually • Is manufactured in the Unites States versus Malaysia • Compared to conventional hand dryers, the XLERATOReco • Represents an annual energy savings of 88 percent • Saves the university $13,437.37 annually

Since 2011, Fernbank has also led the university’s carbon reduction program; achieving a 23 percent cut in their entire estates’ carbon emissions in just four years. This has saved $11.1 million cumulatively for the university. In 2014, Fernbank gained a first class honors Bachelor of Science in Environmental Studies (BSc), the same year the university won the edit.net Sustainability Leaders Award for energy efficiency. Previously, Fernbank spent four-and-a-half years working for the Carbon Trust in a variety of roles and establishing a highly successful national carbon reduction program for schools. Excel Dryer revolutionized the industry by inventing the patented XLERATOR® Hand Dryer technology that created the high-speed, energy-efficient hand dryer category and set a new standard for performance, reliability and sustainability. The XLERATOReco Hand Dryer has done it again by setting a new bar for energy efficiency. All Excel Dryer models are available through an established network of sales representatives for distribution worldwide. For more information or to view the full University of Reading case study, visit www. exceldryer.com/reading

ENERGY EFFICIENCY

HOME AUTOMATION, IOT COULD CUT ENERGY CONSUMPTION 10 PERCENT, SAYS CTA STUDY

Our increasing use of home automation technology through the Internet of Things (IoT) has the potential for substantial energy savings and greenhouse gas emissions reductions, according to a new study released by the Consumer Technology Association (CTA)TM on 19th May.

The Energy Savings Potential of Home Automation Technology finds widespread adoption of home automation products such as temperature, circuit and lighting control, if used for energy savings purposes, could collectively avoid up to 100 million tons of CO2 emissions and reduce total residential primary energy consumption by as much as 10 percent – that savings is more than consumer electronics’ share of residential primary energy consumption (8.4 percent) according to a separate CTA study.

from this technology. And home automation tech delivers potential benefits to utilities as well, such as enhanced demand response capabilities and the intelligent segmentation of homes – both of which would eventually lower consumers’ costs.”

“This research proves the innovation consumer technology delivers into our hands and homes through the Internet of Things can significantly reduce our carbon footprint – whether that’s the household energy we use on our own or the carbon emissions our country produces,” said Gary Shapiro, president and CEO, Consumer Technology Association. “With the touch of a screen or button, we can control and manage our homes more easily and effectively than ever – from virtually anywhere in the world – and enjoy all the cost savings and environmental benefits consumer technology offers.” CTA’s study reports the overall U.S. technical energy savings potential from several individual approaches ranges from 0.3 to 1.1 quadrillion BTUs (quads) of primary energy consumption, or from one to five percent of total residential primary energy consumption. The study’s findings, which represent the best current estimates of achievable savings, highlight several areas where home automation could deliver energy savings, including connected thermostats, HVAC zoning, and control of window shades, circuits and lighting. “This study is the first of its kind – showing how our increased use of several types of connected devices and systems can decrease our overall home energy use,” said Douglas Johnson, vice president of technology policy, CTA. “While the concept and practice of home automation have been around for decades, the continuous reduction of installation costs means more and more consumers are able to access and benefit

Actual energy savings depends strongly on how users choose to control their automated household devices and equipment, the study found. Intelligent features, when activated, can enable greater savings. Smart thermostats, for instance, can learn when specific rooms in a home do and do not need conditioning to save energy without sacrificing comfort. Savings could be even higher when automated devices are used together, as with whole-home control. Sales of many home automation technologies are projected to rise over the next few years, according to CTA’s U.S. Consumer Technology Sales and Forecasts. Consumer trends have shown that the primary motivator behind purchasing automation products, such as smart blinds, thermostats and light fixtures, has been for convenience, security and/or entertainment. The study found that further increasing the marketability of these products to homeowners by promoting their energy savings potential could lead to more energy savings nationwide. The study was conducted by the Fraunhofer Center for Sustainable Energy Systems CSE and commissioned by CTA. Fraunhofer CSE identified 17 candidate home automation approaches and selected five to study in depth, based on initial energy savings estimates and feedback from members of CTA’s TechHome Division, energy efficiency program administrators and developers. The findings recommended pursuing targeted field studies of sufficient scale to refine these energy savings estimates, especially for approaches whose savings depend more strongly on occupant behaviour. The entire study, The Energy Savings Potential of Home Automation Technology, is available online.

ENERGY EFFICIENCY

Through CTA’s website GreenerGadgets.org, consumers can calculate their tech devices’ approximate home energy usage and find tips to help reduce their energy costs. For a comprehensive look at the consumer technology industry’s ongoing efforts toward improved overall sustainability and efficiency, please see The Consumer Technology Association 2015 Sustainability Report.

ENERGY EFFICIENCY

TEP OFFERS ENERGYSAVING IDEAS TO AVOID FEELING THE HEAT FROM SUMMERTIME BILLS

As the days get longer and temperatures rise, Tucson Electric Power (TEP) is reminding customers about energy-saving measures that can mitigate the higher electric bills associated with hot summer weather.

Increased air conditioning use usually drives electric consumption higher beginning in May until it peaks typically in July, when average monthly usage for residential customers exceeds 1,200 kilowatt hours. To offset those increases, customers can follow a few simple steps and take advantage of energy efficiency programs that can help keep energy costs down in hot weather.

With the TEP Weatherization Assistance program, TEP works with the Tucson Urban League and Pima County to help limited-income residents reduce their energy expenses through the installation of improved insulation, upgraded cooler motors and other home improvements. These upgrades are provided at no cost to eligible recipients, though funding is limited.

Simple Steps Set your thermostat at the highest comfortable temperature to minimize your cooling costs. The U.S. Department of Energy recommends setting your thermostat at 78 degrees in the summer, although individual preferences may vary. For every degree you raise your thermostat, you can reduce your overall energy costs by about 2-3 percent. Use ceiling or oscillating fans to keep air moving so you feel cooler without increasing air conditioner use. Don’t block vents or ducts inside the house. Maintaining clear air paths allows your cooling system to work more efficiently. Keep exterior doors and windows closed when running the air conditioner. In summer, use shades, blinds or curtains to keep sunlight out, especially during the afternoon in rooms facing west. Energy Efficiency Programmes Replace traditional incandescent light bulbs with cooler ones like compact fluorescent lights (CFLs) that carry the Energy Star label. Energy Star-qualified CFLs use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer. They also generate about 75 percent less heat, so they can cut energy costs associated with home cooling. Discounted CFLs are available through the TEP Energy Star Lighting Program. Consider planting trees that will help you conserve energy by shading buildings and reducing the effects of urban heat islands. TEP customers can purchase up to three native and low-water trees per year for just $5 each – down from $8 each last year – through the TEP Trees for You Program.

If you are in the market for a new home, TEP Energy Smart Homes can offer a variety of energy-efficient features including highly effective insulation, highperformance windows, tight construction and ducts, efficient heating and cooling equipment and Energy Star-qualified lighting and appliances. This summer’s higher bills will be mitigated by lower energy costs. Last month, the Arizona Corporation Commission approved TEP’s request to decrease the Purchased Power and Fuel Adjustment Charge used to calculate customers’ monthly bills beginning May 1. The average monthly bill of a typical residential customer is expected to drop by $4.26 due to the adjustment, which is the result of lower fuel and purchased power prices. Customers can reduce their bills even more this summer by signing up now for an equal payment plan. TEP’s Budget Billing program levels out seasonal swings in monthly bills by dividing customers’ estimated annual charges into 12 equal monthly payments. There is no additional charge to enrol in this program, and customers only pay for the energy they use. Discounted rates and emergency bill payment assistance also are available to eligible limited-income customers. TEP provides safe, reliable electric service to approximately 417,000 customers in Southern Arizona. For more information, visit tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc., which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. To learn more, visit fortisinc.com More energy-saving tips are available at tep.com/tips.

ENERGY EFFICIENCY

INFRASTRUCTURE & TECHNOLOGY

INNOVATIVE DSOS ARE NEEDED IN A DECENTRALISED ENERGY SYSTEM

To encourage the development of innovative DSOs, the four trade associations reaffirmed the importance of a sound remuneration framework, better economic regulation and an adequate return on invested capital. Divided into two sessions, the event “Innovative DSOs in a decentralised energy system” first addressed the evolving role of the DSOs in managing distribution systems and facilitating markets. In the future evolution of energy networks towards a smarter grid concept, DSOs must play an active coordinating role between all market participants, facilitating markets and services in a neutral and non-discriminatory manner. DSOs will have to position themselves in both existing and emerging fields, notably data handling, flexibility and storage, while respecting market priorities and without interfering with them. The second session focused on stimulating investment through better economic regulation. As energy systems evolve, regulatory frameworks should become more innovative to account for smarter investment. Remuneration schemes should not only reflect costs, but also incentivise DSOs to make efficient and innovative choices in both network development and operation. The conference conclusions included the following: Christian Buchel, Vice Chairman of EDSO, highlighted: ‘With the growing uptake of smart grids and distributed energy connected to Europe’s distribution grids, DSOs are successfully embracing the ‘digitalisation’ transformation. Just to take an example: by 2020, 70% to 80% of European customers will be equipped with smart meters thanks to DSOs. Amidst this swelling need for data, the DSOs will be indispensable to delivering standardised and secure data for empowering customers as well as other market players. Nonetheless, cooperation between DSOs and TSOs is key. Lots have been done to narrow our differences but still DSOs should be placed on an equal footing with TSOs when drafting future regulations.’

The four Brussels-based associations representing DSOs (CEDEC, EDSO for Smart Grids, EURELECTRIC and GEODE) recently highlighted that investment in smart grid technology will allow DSOs to become central platforms for the energy transition by connecting responsive consumers, renewables and flexibility sources. Peter Flosbach, Managing Director of DEW21 Dortmund, CEDEC, insisted that DSOs act as neutral market facilitators: they must increasingly integrate flexibility in the operation of the distribution system, while facilitating a customerfriendly retail market through effective data management and non-discriminatory data provision to market parties. With the rising share of decentralized renewables, handling flexibility – on the demand and the generation side – will become an essential part of grid management. The flexibility that energy storage provides can also be used by DSOs to secure the uninterrupted supply of energy to the consumers and to reduce the stress for the network. Reinhard Brehmer, President of GEODE, outlined that DSOs are facing today major technological challenges, which require huge investments. The majority of innovative investments are done in the distribution grid – such as smart metering, integration of decentralized RES and Demand Side Management/Response. Also, better economic regulation is needed to stimulate investments to replace conventional grid components - DSOs need to be allowed to undertake all needed investments, both innovative and conventional ones while guaranteeing the security and quality of supply. Regulatory revenue allowances should support the ‘smart’ evolution of distribution networks for DSOs to continue being innovative, applying the principle of an appropriate balance between cost reflectivity, efficient grid utilisation and fair contribution to network costs. Gian Carlo Scarsi, Head of Distribution, EURELECTRIC, concluded: “We advocate in favour of the completion of European legislation in the field of system operation and connections. We encouraged the European Commission to pursue DSO-relevant topics such as market facilitation, data handling, regulatory incentives to innovate and make distribution grids smarter, as well as the procurement of flexibility services in an open market context where everyone, including end users, is welcome to take part.”

INFRASTRUCTURE & TECHNOLOGY

CEDEC represents the interests of more than 1500 local and regional energy companies from ten European countries, serving 85 million electricity and gas customers and connections. These predominantly medium-sized local and regional energy companies have developed activities as electricity and heat generators, electricity and gas distribution system and metering operators, and energy (services) suppliers. The wide range of services provided by local utility companies is reliable, sustainable and close to the consumer. Through their high investments, they make a significant contribution to local and regional economic development. For more information, go to: http://www.cedec.com/ European Distribution System Operators for Smart Grids (EDSO) gathers leading European electricity distribution system operators (DSOs) cooperating to bring smart grids from vision to reality. The development of smart grids is a prerequisite to reaching the EU’s ambitious energy, climate, security of supply and internal market objectives. EDSO and its members are committed to taking on this huge challenge, while at the same time ensuring the reliability of Europe’s electricity supply to consumers and enabling them to take a more active part in our energy system. EDSO is a key interface between the DSOs and the European institutions, and is focused on RD&D, policy and member state regulation to support this development. For more information, go to: http:// www.edsoforsmartgrids.eu/

EURELECTRIC is the voice of the electricity industry in Europe. We represent the power sector in over 30 European countries, speaking for more than 3,500 companies in power generation, distribution, and supply. We also have affiliates and associates on several other continents. We stand for carbon-neutral electricity by 2050, competitive electricity for our customers and continent-wide electricity through a coherent European approach. Our permanent secretariat is based in Brussels. More information on our activities is available at www. eurelectric.org. GEODE is the voice of local energy distributors across Europe, representing the interests of 1200 private and public energy companies for both electricity and gas from 15 European countries, serving more than 100 million customers. These small and medium-sized companies are bringing intelligence to the grids and making thereby a major contribution to achieve Europe’s climate and energy policy goals. GEODE promotes fair and competitive conditions for network operators giving them a strong voice to secure core values - namely providing a customerfocused service, with a high quality of supply and energy efficiency to homes, businesses and local communities. With 25 years’ experience GEODE is recognised as a trusted partner by the European institutions. For more information, go to: www.geode-eu.org More energy-saving tips are available at tep.com/tips.

INFRASTRUCTURE & TECHNOLOGY

THE WORLD OF A RISK MANAGEMENT PROFESSIONAL? The Institute of Risk Management (IRM) asks its members what working in risk is really like and what hints and tips they’d share with people looking to move into the industry. Samuel Kibaara, the firm’s Head of Enterprise Risk Management at Kenya Power imparts his wisdom on the world of risk management and what he enjoys most about it. How did you get your job? I started off as a risk surveyor for insurance underwriters in Kenya and East Africa region. This was immediately after gaining my Diploma in Electrical- Telecommunication Engineering. The firm sought risk surveyor’s trainees with a technical background. I later studied Commerce and IRM qualifications while on job. Later I joined Aon Global risk Consulting as a risk consultant, where my exposure in ERM was expanded and challenged. My cumulative experience in Risk Management is 18 years. Currently I am the Head of Enterprise Risk Management at Kenya Power, the sole electricity distributor and retailer in Kenya, East Africa. What’s a typical day like as a Risk Management professional? As the head of Enterprise Risk Management, I start my day off by doing an external environmental scan from the media reports on all issues that are likely to affect the company’s strategic direction and/or risk profile. This may include Political, Environmental, Market, Legal and Regulatory issues. If there is a major change in any of the above areas, I immediately compile a report to the top Management indicating the impact on the Company’s risk profile for consideration. Thereafter I receive the daily operational reports indicating the performance of the various Key risk indicators (KRI) to determine if the risk events are within the required tolerances. If some are showing unusual decrease and or increase, I seek information on the same for monitoring or replication (if positive)

Periodically I will be involved in risk awareness training for staff, Conduct meetings with risk champions and also compile monthly Management reports as well as the Quarterly Board risk reports. What do you enjoy most in your job? Risk analysis and review of the various risk events and bring out some of the impacts that would not have been considered or thought about. What are the challenges? Quantification of the value of ERM to the operations and proving of the Business case especially when the Executive Management and/or Board are not fully risk aware. In what way are your IRM qualifications relevant? Very relevant; Having been one of the pioneer student in risk in this part of the World, the qualifications have proved very critical in defining my career as a risk professional. They have also been practical in developing and implementation of ERM frameworks and our organisation has become a pace setter in the public sector in the area of Risk Management. I have also been engaged as an independent consultant in many other external assignments because of my IRM qualifications. What would you say to others thinking about joining IRM as a member? I would encourage any person seeking to build a solid career in Risk Management to seriously consider joining IRM. The institute has relevant resources and offers structured and practical path for risk professionals.

INFRASTRUCTURE & TECHNOLOGY

How has your role developed and what are your career ambitions? Has being linked to IRM helped? As earlier mentioned I was engaged as a risk surveyor for Insurance underwriters. At that point qualifications in Insurance seemed most relevant until I encountered IRM. The institute helped me build an independent career in risk and the resources and papers available at IRM have also helped in keeping me up to date with developments in Risk management field across the globe. My career ambitions are to become a leading risk management professional for both public and private sector in Africa where I can help the field to grow and mature like in other parts of the world. Top tips First and foremost, it is important to acknowledge that risk professionals can be created from any background. So it does not matter which background you are coming from, but with the right attitude you can venture into risk profession.

Globally the subject of Risk management has become big and is now integrated in most other disciplines as a way of doing business. It is therefore important that anybody seeking to remain relevant in this field to seek appropriate professional qualifications. This is what IRM is offering and I thank the institute for creating a path that makes risk professionals stand out among other professionals. Secondly it is important for those seeking a career in Risk Management to consider carefully the path and they can seek information from IRM website to assist in this area. Lastly for those already in Risk professions, IRM offers some very practical resources that make you stand out in your performance and delivery of risk related aspects.

INFRASTRUCTURE & TECHNOLOGY

NEXT GENERATION DATA MANAGEMENT FOR ENERGY CONSUMERS Digitalisation is transforming the energy architecture and profoundly impacting business strategies and relations between consumers and utilities. While providing all players with new opportunities, digitalisation also poses signification challenges in terms of DSO and retail supply regulation and policy-making. In its recently published paper, EURELECTRIC maps out the data of the energy sector, examines the implication of digitalisation for all energy players and makes several recommendations about the regulatory rules, which govern data access and data exchange. The digitalisation of the energy system and the advent of smart meters can bring benefits to all energy players. In the short term, consumers will gain more control over their energy use and benefit from additional services. Suppliers will optimise their business, tailor new offers and target their communication. System operators will benefit from new tools to manage their grids more efficiently and integrate an increasing amount of variable renewables in the system. In the long term, interaction between intelligent appliances, smart grids and home platforms – mediated by or on behalf of consumers – will usher in a new era with radically different consumption patterns centred on automation and remote controls. The road to digitalisation, however, is a winding one. The roll-out of smart meters at European level is often slower than expected because of varying cost-benefit analysis outcomes in different European countries as well as data privacy and security concerns. Digital appliances and services may not yet be attractive enough for many consumers – not simple enough or too expensive. For businesses,

a lack of standardisation and interoperability may slow down the commercialisation of new appliances, and learning to process and convert reams of unstructured data into concrete action takes time. Markets and innovation will solve some of these issues. However, many will only be mastered if the regulatory framework is fit for purpose. In order to understand the opportunities and challenges at stake with digitalisation and big data, it is necessary to clarify the different types of data and how they are treated by regulation. In this report EURELECTRIC proposes to distinguish between (smart) meter data, (smart) grid data and (smart) market data and to divide data uses into regulated obligations and commercial services. EURELECTRIC reiterates that there is no ‘one size fits all’ model applicable in all European countries for smart meter data management. However, common principles must be set at EU level: neutrality, nondiscrimination, transparency, cost-efficiency, high quality, security and privacy.

INFRASTRUCTURE & TECHNOLOGY

Whilst horizontal legislation on data protection exists at EU level â&#x20AC;&#x201C; the EU data protection regulation has just been adopted - the energy sector remains a best practice example when it comes to giving customers control over their data. At a time where inter-industry demarcation lines are getting blurry, EURELECTRIC considers that the same regulatory principles should apply to all data directly collected from customers. Thus, transparency and data privacy for customers would be guaranteed and a level playing field for market players assured, even if they come from different sectors. Moreover, regulation should ensure that smart grid data exchange between system operators and market players is enhanced in all relevant timeframes (network

planning, operational planning and scheduling, dayahead, intraday etc.). This is necessary to prevent and solve grid congestion - both at transmission and distribution level â&#x20AC;&#x201C; but also to ensure the balancing of production/ consumption at national level. Mutual processes, data management models, data formats and communication protocols for data exchange should be agreed upon at EU level when applicable and efficient. Where this is not possible, Member States should strive for standardisation at national level as a minimum. The EURELECTRIC report concludes with several case studies of innovative data services by retail suppliers and DSOs. Web Address: www.eurelectric.org

INFRASTRUCTURE & TECHNOLOGY

PSA GROUP PRESENTS ELECTRIFICATION SOLUTIONS FOR ITS FUTURE HYBRID AND ELECTRIC VEHICLES PSA Group presented its new electrification strategy at the Innovation Day event held on 25 May 2016. In order to meet all its customers’ mobility and usage needs, PSA Group is consolidating the development of its models on two global modular platforms, which will allow it to offer a wide range of internal combustion, electric and plugin hybrid petrol models as from 2019. Both platforms will be compatible with the manufacturing resources put in place as part of the Plant of the Future programme.

The Common Modular Platform (CMP), which was developed in partnership with DFM (Dongfeng Motors), is dedicated to compact city cars, core sedans and compact SUVs. The all-electric e-CMP format cofinanced by PSA Group and DFM will allow the two parties to offer a new generation of spacious, multipurpose electric vehicles with a driving range of up to 450 km and ultra-fast charging solutions providing up to 12 km of driving per minute of charging. Four electric models will be introduced by 2021, the first of which will reach the market in 2019. The Efficient Modular Platform (EMP2), which is dedicated to compact and premium models, was launched first in 2013 with the new Citroën C4 Picasso and Peugeot 308 and then in 2014 in China. From 2019 onwards, its innovative design will enable the deployment of the first plug-in hybrid petrol models equipped with the best of hybrid technology: • • • •

SUVs and CUVs with high-performance electric four-wheel drive a 60 km driving range in all-electric mode a large interior that does not compromise on passenger comfort or boot space leading-edge fuel efficiency in urban driving conditions (40% efficiency gains versus internal combustion models)

To facilitate use, the plug-in hybrid models will come with a four-hour charging system as well as an optional feature for recharging the battery more quickly, in less than two hours. Seven plug-in hybrid vehicles will be gradually introduced between 2019 and 2021. On Innovation Day, Gilles Le Borgne said: “These next-generation hybrid and electric technologies will complement our range of internal combustion engines, thereby enabling PSA Group to offer its customers a diversified line-up of technologies that meet all of their mobility needs. This innovative strategy clearly demonstrates the Group’s commitment to global, sustainable solutions that will allow us to take on the energy transition challenge.” To learn more, please see: www.youtu.be/rlj944NM6YE, www.youtu.be/fDdSB55gnYE and groupe-psa.com/en

INFRASTRUCTURE & TECHNOLOGY

OIL & GAS

DIGITAL TRANSFORMATION SOLVES INEFFICIENCIES IN OILFIELD SERVICES WHILE TURNING TIDES IN TIMES OF DECLINE

The impact of volatile oil prices in the global market have forced oil and gas companies to optimise lifting costs, maximise operational efficiencies and leverage new business models to drive profitability. As the ‘low for long’ scenario continues, it has become strategically imperative for operators to adopt outcome-based solution offerings (Machine learning, neural networks and digital assistants) and alternative business model approaches. Technology and new business model aspects are analytically poised to disrupt, collapse and transform the future of oilfields.

New analysis from Frost & Sullivan, Convergence Impact on Oilfield Services—Disrupting a $250 Billion Market, (http://frost.com/nfe2) finds that traditional business models will transform into service/performance-centric and outcomes-based models, as convergence takes over the market, with enhanced focus required to drive sustainable profit margins. A case in point is the emergence of cognitive virtual assistants revolutionising the market. Solutions such as Amelia, IBM Watson are poised to prevent write-off’s that have plagued the industry earlier.

High operational expenditure outlook is steering the industry to adopt new and alternative business models. Applications such as predicting asset failure, machinery performance centres, remote diagnostics and prescriptive actions will become mainstream as operators look to arrive at smarter and digital management of production operations. Advancements such as these are why the oil and gas industry is poised to become the next hi-tech industry.

Despite the benefits of digital transformation in oil and gas, operators are sceptical to implement solutions due to lack of corporate support, weak awareness, unclear ROI benefits and lack of visible technology roadmaps. As solution providers continue to expand and offer a diverse portfolio of value-offerings, changes in customer procurement models will create a challenging situation. Furthermore, the convergence of IT and OT is creating an interesting paradigm of opportunities, but knowing ‘where to grow, whom to partner with, how to position and who to position with’ are key attributes to engineer lasting success. “Digital transformation, as much as it comes with benefits, comes with strong headwinds such as cybersecurity, data loss and safety issues,” said Frost & Sullivan Research Manager, Visionary Innovation – Convergence, Ram Ramasamy. “In addition, while overall efficiency improvement in the short-term is important, the need to adopt a digital vision and an integrated security model will stoke innovation in the long-term.”

“Consequently, the fragmented oilfield services ecosystem (OFSE) is consolidating to create better synergies through mergers and partnerships,” noted Frost & Sullivan Senior Analyst Ashay Abbhi. “OEMs are evolving by selling performance in addition to equipment, while automation companies have realised the need to add analytics and digital services to their portfolios. For companies to remain relevant in the near future despite low oil prices, the digitalisation of the OFSE industry must be embraced and applied throughout the sector.” Convergence Impact on Oilfield Services—Disrupting a $250 Billion Market Frost & Sullivan’s related studies include: Competing and Differentiating in the MACDriven Global Oil and Gas Industry All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. For complimentary access to more information on this research, please visit: www.frost.ly/bv

OIL & GAS

GREATER SECURITY FOR NORTH SEA OIL AND GAS AS ENERGY BILL BECOMES LAW The Energy Act is designed to help drive forward the government’s energy goals and commitments. This includes new powers for the Oil and Gas Authority (OGA) to better support North Sea industry, giving local communities the say on new onshore windfarm planning decisions and bringing forward the closure of costly subsidies for new onshore wind developments across Great Britain.

The OGA is being established on the recommendations of the Wood Review into North Sea Oil and Gas, in order to maximise collaboration and management of resources from the UK Continental Shelf. Secretary of State for Energy and Climate Change Amber Rudd said: “The Energy Act is a vital part of our plan to ensure our families and businesses have access to secure, affordable and clean energy supplies they can rely on, while keeping bills down. By strengthening the Oil and Gas Authority and giving it powers to drive greater collaboration and efficiency in the industry, this Act shows that the broad shoulders of the UK are committed to helping our oil and gas industry attract investment, support jobs and remain competitive for the future.” Andy Samuel, Chief Executive of the OGA said: “We welcome the news that the Energy Bill has now received Royal Assent. This is an important step in establishing the OGA as an independent government company with the necessary powers, working closely with the industry and government to help maximise the economic recovery of the UK’s oil and gas resources.” In summary the Act: • Creates the framework to formally establish the OGA as an independent regulator, taking the form of a government company, so that it can act with greater flexibility and independence. It gives the OGA new powers including: access to external meetings; data acquisition and retention; dispute resolution; and sanctions. It also enables the transfer of the Secretary of State’s existing regulatory powers in respect of oil and gas to the OGA. The Secretary of State’s environmental regulatory functions in relation to oil and gas are not transferred to the OGA. •

Enables more comprehensive charging of the offshore oil and gas industry in relation to environmental regulatory functions carried out by DECC.

•

Makes local communities the primary decision makers on new onshore wind developments, alongside measures taken by the Department for Communities and Local Government. It removes the need for the Secretary of State’s consent for large onshore wind farms (over 50 megawatt) in England and Wales under the Electricity Act 1989.

•

Brings forward the early closure of the Renewables Obligation subsidy scheme to new onshore wind developments in Great Britain.

Web Address: www.gov.uk/government/organisations/ oil-and-gas-authority

OIL & GAS

HIGH DEMAND FOR OIL AND NATURAL GAS BY TRANSPORTATION, INDUSTRIES, AND POWER PLANTS WILL FUEL THE GLOBAL OIL AND GAS MARKET THROUGH 2020, REPORTS TECHNAVIO Technavio research analysts are forecasting positive growth for many segments of the global oil and gas market over the next four years as several markets including biodiesel, syngas, and oilfield services, will witness an increase in revenues. Based on the far-reaching analysis conducted by Technavio researchers, the global syngas market is expected to grow significantly and post a CAGR of over 14% during the period 2016-2020. This growth is due to the growing demand for industrial chemicals, fuels, agriculture products, and electricity from across the globe. Growing environmental concerns and increasing initiatives by governments to reduce emissions has also contributed to the growth of this market.

Apart from syngas market, Technavio also labels the global biodiesel market as another fast-growing segment in the oil and gas market. The global biodiesel market is predicted to post a CAGR of about 10% during the period 2015-2019. The fluctuating oil prices and the unstable economic conditions in several developing and developed countries have amplified the interest in biofuels over the last decade. The high dependence on non-renewable fuels has created environmental concerns like the rising greenhouse gas (GHG) levels. According to the US EPA, biodiesel produces nearly 80% lesser greenhouse gas emissions than conventional fuels, into the atmosphere and reduces hydrocarbon emissions by more than 60%. These benefits over the conventional diesel usage are driving the demand and making biodiesel into a mainstream fuel across the globe. Another trending segment is the global oilfield services market which is projected to grow at a CAGR of about 5% during the period 2016-2020. The increased consumption of oil and natural gas by various end-users such as transportation, industries, and power plants is creating high demand for energy. To meet this demand, governments and vendors are investing in exploration and production activities for increasing the production of oil and gas. Technavio researchers segment the oilfield services market into three key regions: The Americas, EMEA, and APAC. The Americas accounted for close to 65% of the market share during 2015. The deep-water productions are driving the oil field services market in the Americas, and this trend is likely to follow into 2020. Some of the key vendors for the oil and gas market include Schlumberger, Baker Hughes, and Halliburton for oilfield services; Dakota, General Electric, and Sasol for syngas; and Cosan, Diester, and INEOS for biodiesel. Web Address: www.technavio.com

In terms of geography, the APAC region is estimated to account for the largest share of the market by 2020. Due to economic sourcing and reduced manufacturing costs, the vendors in this region have achieved a low-cost advantage. This low-cost advantage allows the vendors to increase the number of installations, which in turn results in this region’s profound market share of more than 75% by 2020. “The global syngas market is further classified into four major end-user segments, including chemicals, liquid fuel, power, and gaseous fuel. Of these four segments, the chemicals segment is expected to lead the market through 2020 by contributing more than half of the overall market share,” says Sayani Roy, a lead analyst at Technavio for research on energy.

OIL & GAS

HOWARD ENERGY PARTNERS COMPLETES SUCCESSFUL OPEN SEASON FOR DOS ÁGUILAS PIPELINE PROJECT Howard Midstream Energy Partners, LLC (HEP) announced on 24th May that its subsidiary, Dos Águilas Pipeline, LLC completed a successful open season on the Dos Águilas project, receiving more than sufficient customer interest to proceed with the project as planned. The Dos Águilas project is an open access system of refined products terminals and pipelines spanning from Corpus Christi, Texas to northern Mexico. Pending all government approvals, the project is on schedule to be in service the first half of 2018.

“The Dos Águilas project has been in development for a long time; it is the result of years of relationship-building and market analysis,” said Howard Energy Partners Chairman and Chief Executive Officer Mike Howard. “The customer response we received during the open season exceeded our expectations. It validates the need for the project and confirms the Howard Energy philosophy that what is good for Mexico is good for South Texas.” Dos Águilas Project Details and History The Dos Águilas pipeline project will offer direct and seamless transportation services for gasoline, ultra-low sulphur diesel, and jet fuel from the Corpus Christi refinery complex to Laredo, Texas and on to northern Mexico markets through deliveries to Nuevo Laredo, Tamaulipas and Monterrey, Nuevo León. While Dos Águilas customers will experience seamless transportation service, for permitting and regulatory purposes, the project is broken down into four pipelines, with different names: • • • •

Border Express Pipeline, originating in Corpus Christi, Texas delivering to Laredo, Texas Borrego Pipeline, originating in Laredo, Texas terminating at the International Border Crossing (U.S.) Poliducto Frontera Pipeline, originating at the International Border Crossing (Mexico), delivering to Nuevo Laredo, Tamaulipas Poliducto del Norte Pipeline, originating in Nuevo Laredo, Tamaulipas, delivering to Monterrey, Nuevo Leon

On March 10th 2016, Mexico’s Comisión Reguladora de Energía (CRE) authorised Dos Águilas Pipeline to conduct an open season from April 25 to May 23, 2016, to secure volume commitments on the Poliducto Frontera and the Poliducto del Norte pipelines, to transport refined products from the International Border Crossing to Nuevo Laredo, Tamaulipas and Monterrey, Nuevo Leon. Concurrently with the CRE-authorised open season, Dos Águilas Pipeline conducted open seasons consistent with the Federal Energy Regulatory Commission’s (FERC) policies for oil pipelines on the affiliated U.S. pipelines, Border Express and Borrego, soliciting requests-for-service to transport refined products from the Corpus Christi refineries to Laredo, Texas and the International Border Crossing. This is the first simultaneous, conforming CRE and FERC open season process to be conducted. For full project details, please visit the Dos Águilas project website, www.dosaguilaspipeline.com For more information on Howard Energy Partners, please visit www.howardenergypartners.com

RENEWABLE ENERGY

HIGH ALTITUDE WIND POWER GENERATION MARKS A NEW MILESTONE IN THE RENEWABLE ENERGY ROADMAP, FINDS FROST & SULLIVAN High altitude wind energy, if developed and executed effectively, has the potential to replace a significant percentage of the power generated from oil and traditional wind turbines. Turbines in conventional windmills are located at heights ranging from 100 meters to 200 meters; however, wind flow is more consistent and quicker at altitudes above 500 meters. Therefore, winds at this altitude could act as a reliable source of energy that can be harnessed using kites, buoyant turbines and sails.

New analysis from Frost & Sullivan, High Altitude Wind Energy – Visionary Outlook (http://www.frost.com/sublib/ display-report.do?id=D6A8-01-00-00-00&src=PR), finds that the focus of ongoing research programs is twofold: tapping kinetic energy from high winds and enhancing generation techniques. Ground-based and airborne generators are the prototypes currently used in pilot projects. “Several power firms are employing the yo-yo concept of energy production, wherein kite- or balloon-mounted generators harness wind power mid-air, and then transmit it to the ground station,” said TechVision Research Analyst Guhan Sriram R V. “A few have adopted power train-based methods in which the kite structure draws a powertrain across a circular track to generate power.”

While the power generation procedures are sound, the nascent industry is still struggling to find ways to quantify and substantiate results to attract further investments. Actual outcomes in terms of power generation, market size and disruption potential remain unclear. Publicising results from pilot projects and demonstrations could help companies evaluate the system performance against the promises made. In a field that is still in the research and demonstration stages and where most companies employ similar designs, this open approach will encourage innovations. Funds from the governments of the United States and from the European Union are already aiding the development of new technologies. The involvement of premier research institutes such as TU Delft in Netherlands and EMPA in Switzerland will also be a game-changer in this space. Apart from governments, the high altitude wind power market has drawn big investors such as Google and Mitsubishi. Prominent participants in the conventional wind turbines market too are showing interest in this area. “If the performance of pilot projects in high altitude wind power systems validate the theoretical numbers provided by researchers, the industry will deploy commercial units in or post 2017,” observed Sriram. “Subsequently, the technology will account for a significant share of the energy market post 2021.” High Altitude Wind Energy – Visionary Outlook, a part of the TechVision (www.ww2.frost.com/research/ technology/sustainable-energy) subscription, offers a detailed account of high altitude wind technology in terms of generation techniques, cost and material usage. The study gives a snapshot of the industry value chain and a region-wise outlook of the market’s future. It provides details of the key participants in the market as well as strategic analyst insights. TechVision is a global technology innovation-, disruptionand convergence-focused practice of Frost & Sullivan that provides a variety of technology-based alerts, newsletters and research services as well as growth consulting services. Its premier offering, the TechVision program, identifies and evaluates the most valuable emerging and disruptive technologies enabling products with near-term potential. A unique feature of the TechVision program is an annual selection of 50 technologies that can generate convergence scenarios, possibly disrupt the innovation landscape, and drive transformational growth. View a summary of our TechVision program by clicking on the following link:www.ifrost.frost.com/TechVision_Demo. For complimentary access to more information on this research, please visit: bit.ly/1nvCs6C

RENEWABLE ENERGY

PIONEERING RENEWABLE ENERGY

The EBRD is the largest investor in renewable sources of energy in the regions where it operates. Since 2006 the EBRD had invested €4.6 billion in renewable energy generation. In many countries the Bank has pioneered the use of renewable energy resources. In each region where the EBRD works, it is leading the way.

This is good for the economy and good for the environment. “[It] is certain that increased use of renewable energy will play a central role in helping countries meet their climate commitments [under the Paris COP21 agreement]. Just as crucial will be the role of the private sector in financing the next stage of the renewables revolution,” says Riccardo Puliti, EBRD Managing Director for Energy and Natural Resources.

financing programme for the generation of renewable energy in Egypt, Jordan, Morocco and Tunisia.

In 2014, the Bank’s investments in renewables overtook those for thermal power generation. The EBRD finances larger renewables directly and smaller projects through special credit facilities via local partner banks. Renewables without borders Renewable energy strengthens energy security by providing local energy sources for domestic consumption. But it can also flow across borders, helping out neighbours in need. The EBRD has financed one cross-border transmission line, the Black Sea Transmission Line (BSTL), and is working on another, CASA-1000. BSTL brings hydro-generated electricity from Georgia to Turkey, which has a large and growing energy market.

This framework is only the beginning and will act as a catalyst for significant amounts of private investment. Central Asia The EBRD is a renewable energy pioneer in Central Asia, where investment has increased on the back of significant policy reform. In Kazakhstan, the government adopted a renewable energy law in 2013 following cooperation with the EBRD. In June 2015 the EBRD financed the first commercial-scale solar park and first privately owned renewable-energy generator in the country. The Burnoye Solar Plant is cofinanced by the EBRD and the Clean Technology Fund (CTF) with loans of well over €80 million. Also in June 2015, the Yereymentau wind project received the AmCham Award for “environment and safety”, an honour that the American Chamber of Commerce in Kazakhstan awards to outstanding projects every year.

The high-voltage line spurred a wave of private investment, including foreign funding, in Georgia’s hydropower sector. The largest of these is the Shuakhevi hydropower plant (HPP). Meanwhile, a host of smaller private investors were able to build mini hydropower plants.

In Tajikistan, the EBRD has allocated a total of US$ 88 million – its largest financing in the country by far – to the modernisation and capacity increase of the Qairokkum HPP. The project includes an innovative mechanism to make sure the dam and power plant continue operations under a range of climate change scenarios.

CASA-1000 is an ambitious multilateral project which aims to deliver surplus hydropower from Tajikistan and the Kyrgyz Republic into Afghanistan and Pakistan during the summer season.

The prestigious US Treasury Development Impact Honors Award recognised the Salkhit wind farm, the first largescale renewables project in Mongolia, which came onstream in 2013.

Southern and eastern Mediterranean The sun-drenched countries of the southern and eastern Mediterranean region hold enormous potential for solar energy. But a sunny climate on its own will not draw in financing; investors also need an enabling business climate. The EBRD is bringing in its own finance and also working to improve business conditions in order to attract additional funding. In late 2015 the Bank approved a US$ 250 million

Nandita Parshad, EBRD Director for Power and Energy Utilities, says: “[The Salkhit wind farm’s] electricity will displace a generation of coal-fired plants, providing about five per cent of the nation’s needs from this clean, renewable resource instead. In time, other wind farms will follow.”

RENEWABLE ENERGY

Central and south-eastern Europe The EBRD has funded investment programmes with commercial investors in wind power in Bulgaria, Poland, Romania and the Western Balkans. For instance, the Bank financed 12.5 per cent of Romania’s installed renewable energy capacity. After successfully launching the first privately owned wind farm in Montenegro, work is now under way on the first wind farm in Serbia. Eastern Europe and the Caucasus In Ukraine, the EBRD has financed the first solar plant in the country, as well as wind farms and biomass plants. An ambitious programme to rehabilitate the country’s powerful hydropower plant network, launched in 2011, has a volume of US$ 300 million. In Georgia, the EBRD promoted private investment in the hydropower sector thanks to BSTL, and is working on the first-ever wind farm in the country. Turkey Almost half of the EBRD’s current portfolio in Turkey is in sustainable energy, including renewables. Since 2009 the EBRD has invested about €867 million in 29 renewable investment projects, including two of the country’s largest wind farms – Bares and Rotor.

Turkey’s significant potential for geothermal energy is a particular focus. In 2015, the EBRD extended a loan of US$ 200 million for the largest geothermal power plant (GPP) in Turkey (and the second-largest in Europe), Efeler. Previously, the EBRD financed six GPPs through Turkish commercial banks. Together with the Clean Technology Fund (CTF), the Bank launched a US$ 125 million initiative to provide finance and advice to private developers to help minimise risk in the early stages of projects. Late last year, the EBRD took a 20 per cent stake in the renewable arm of Turkey’s Akfen Holding. Donors Donor support for technical cooperation and project implementation is crucial for the success of the EBRD’s renewables programme. Over the years, the Bank has won many strong and active partners. Among these are the Climate Investment Funds (CIF) – which include the Clean Technology Fund, the Scaling Up Renewable Energy Program, the Forest Investment Program and the Pilot Program for Climate Resilience – and the Global Environment Facility (GEF), as well as the governments of Austria, UK and other international donors. Web Address: www.ebrd.com

RENEWABLE ENERGY

GROWTH IN RENEWABLE INSTALLATIONS AND SMART DISTRIBUTION NETWORKS IN ASIAPACIFIC PROVIDE OPPORTUNITIES FOR SWITCHGEAR MARKET

Southeast Asia is the biggest gainer from East Asia’s shrinking market size, as energy companies are increasingly shifting operations to the former region through acquisitions and joint ventures. These companies, including switchgear original equipment manufacturers (OEMs), are looking to tap the opportunities created by the expected growth in renewable integration as well as transmission and distribution (T&D) development projects.

New analysis from Frost & Sullivan, Asia-Pacific Switchgear Market—2015 Update (www.frost.com/sublib/displayreport.do?id=P8C4-01-00-00-00&src=PR), finds that the switchgear market earned revenue of US$5.93 billion in 2014 and estimates this to reach US$6.81 billion in 2019. The ambitious plans to increase renewable installations in Asia-Pacific region and urban planning and development are set to have a positive impact in the medium- and highvoltage (MV and HV) switchgear markets.

“Chinese switchgear manufacturers, on the other hand, are capitalising on the constant flux in the global economy and significant budget cuts,” noted Visveswaran. “This economic environment has compelled utilities to demand low-priced electrical products, causing Chinese OEMs to flood the Asia-Pacific market.”

As Asia-Pacific rolls out significant electrification projects across the region to cope with the surge in peak power demand, there will be enhanced demand for switchgears. Besides, as renewable energy projects in Asia-Pacific are still in the growth phase, there has been a sizeable expansion of the installed capacity base, translating to greater sales opportunities. “Countries such as Singapore and Japan have been especially active in implementing smart city concepts,” said Frost & Sullivan Energy & Environment Research Analyst Adwaith Visveswaran. “This has prompted OEMs to produce switchgear products with intelligent communication, remote operation and feedback systems.” Additionally, with stringent technical specifications ruling major industries and sectors in Asia-Pacific, it is imperative that switchgear OEMs conform with the latest IEC 61439 standard. However, the country that holds the most sway over the Asia-Pacific market is China. Since most countries in the region rely on exports to China, the volatility in oil price coupled with China’s currency devaluation has weakened commodity prices and sent economic tremors across Asia-Pacific.

In order to stay afloat in the highly fragmented and costcompetitive market, global players are adopting a mix of market-entry strategies. While some have acquired or signed joint ventures with established local players, others have expanded their sales distribution channels. However, owing to preference given to local companies, joint ventures are seen as the best way forward. Asia-Pacific Switchgear Market—2015 Update is part of the Energy & Power (http://ww2.frost.com/research/industry/ energy-power-systems/energy-power) Growth Partnership Service program. Frost & Sullivan’s related studies include: China Natural Gas Outlook, Asia-Pacific Smart Grid Market 2015 Update, Global Smart Electricity Meter Market and US Digital Protective Relay Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. For complimentary access to more information on this research, please visit: www.corpcom.frost.com/forms/SEA_ PR_DJeremiah_P8C4_15Feb16

RENEWABLE ENERGY

NEW EBRD FINANCING FOR TURKISH RENEWABLE ENERGY PROJECTS VIA AKBANK It is part of the EBRD strategy to help Turkey meet growing demand for electricity and diversify away from expensive imported fuel, while addressing climate change. EBRD funds are extended through an investment in investment grade rated senior US dollar-denominated notes issued under Akbank’s Diversified Payment Rights (DPR) programme, an established market instrument used by Turkish banks to raise long-term funding in the capital markets. The financing – supported by the Turkish Ministry of Energy and Natural Resources and a €1.9 million grant from the European Union – will benefit renewable energy and resource efficiency projects in Turkey including solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency as well as water saving and waste minimisation projects. The investment comes under the EBRD’s recently expanded Mid-size Sustainable Energy Financing Facility (MidSEFF) now totalling €1.5 billion. So far 47 projects have been financed through seven Turkish banks, helping to build over 800 MW of additional renewable energy capacity. The European Union is supporting the programme with a combined €6.8 million in grant funding which enables the EBRD to provide expert advice to both partner banks and their clients. Akbank – one of the largest lenders in Turkey, publicly traded and with large market capitalisation – has a strong track record of on-lending MidSEFF funds. Last year it received US$ 110 million in financing in addition to US$ 100 million in 2011. So far, Akbank has successfully allocated these funds to industrial energy efficiency measures, as well as hydropower, wind and waste-to-energy projects. Akbank’s Executive Vice President of Treasury, Kerim Rota, said that Akbank is glad to partner yet again with the EBRD: “Akbank continues to be a pioneering force in the Turkish banking sector in providing fresh funding to the private sector for renewable energy and resource efficiency projects in our country. We firmly believe that our efforts will also help Turkey meet its growing energy demand

In response to growing demand, the European Bank for Reconstruction and Development (EBRD) is providing US$ 110 million in new funds to Turkish lender Akbank to finance private companies investing in renewable energy and resource efficiency projects in Turkey. with a positive spillover for the financing of the country’s current account deficit, as renewable energy generation will diminish dependency on imported fuels while also addressing climate change. Going forward, Akbank will continue supporting Turkey’s goal of increasing the share of renewable energy sources in total production as well as diversifying the country’s energy sources.” Noel Edison, Director of Financial Institutions at the EBRD, said: “We are impressed with the response to the previous two rounds of financing we offered to Akbank under our MidSEFF programme. The lender has financed eight projects helping create 73 MW in additional renewable capacity. The bank has a strong pipeline for further successful renewable energy and resource efficiency investments by Turkish corporates.” Investing in sustainable energy and resource efficiency is a strategic priority for the EBRD in Turkey. Almost half of the Bank’s total portfolio in Turkey is in sustainable energy and since 2009 the EBRD has invested over €3 billion in more than 75 such projects, including two of the country’s largest wind farms – Bares and Rotor – and the largest geothermal power plant in Turkey (and second largest in Europe), Efeler. The Bank is also working closely with the Turkish Ministry of Energy and Natural Resources and has helped develop the country’s first National Renewable Energy Action Plan to attract more investment in renewable energy projects. It has also supported the preparation of a National Energy Efficiency Action Plan, which is expected to include a wide range of sector-based resource efficiency measures aimed at achieving Turkey’s 2023 energy efficiency targets. The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date, it has invested over €7 billion in the country through more than 180 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised about €17 billion for these ventures from other sources of financing. In 2015, Turkey was the top destination for EBRD financing, with €1.9 billion invested that year alone. Web Address: www.ebrd.com

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FORMER RWE NPOWER CFO JENS MADRIAN TO JOIN INTELLIGENT ENERGY MANAGEMENT INNOVATOR

Reactive Technologies, a leading UK-based smart grid and demand-side management (DSM) company, has appointed Jens Madrian as both Chief Financial Officer (CFO) and Chief Commercial Officer (CCO) as part of its plan to lead the smart power transformation taking place in the UK energy sector. Jens will officially take up his dual role as CFO and CCO with Reactive Technologies on 1st June. His main responsibilities will include driving the strategic, financial and commercial development and growth of the company in the UK and overseas. Jens joins at a significant stage in Reactive Technologies’ expansion as it grows its team of energy and technology specialists to support the widespread deployment of ‘Tradenergy’ – a patented, cloud-based, intelligent energy management platform. Through the deployment of smart power technologies, such as intelligent energy management services, the National Infrastructure Commission estimates that UK consumers could save around £8 billion a year by 2030. Commenting on his decision to leave RWE, one of Europe’s largest utilities, and join Reactive Technologies, Jens said: “For several years I have witnessed the gradual transformation of the energy sector in the UK and other European countries. The transition from a centralised energy generation industry, that continues to rely heavily on polluting fossil fuels, to one that will inevitably involve decarbonisation, decentralisation and digitalisation – or ‘3Ds’ – is turning the industry on its head. “For me personally, it’s all about making a positive difference for our customers and the UK overall. When I asked myself which companies were best placed to introduce and lead transformational change in the energy sector, I was impressed by those demonstrating the ability to adapt quickly and introduce valuable experience and expertise from other industry sectors. “The ‘democratisation’ of energy and the power shift towards energy customers that can generate and store their own electricity (prosumers) creates opportunities

Pioneering intelligent energy management company – Reactive Technologies helps shape how decarbonisation, decentralisation and digitalisation will drive UK energy sector transformation.

for innovative companies to change how to think about energy. Reactive Technologies is one such organisation that is driving serious technology-enabled disruption in the market. It does this through the deployment of its cloudbased software platform. Tradenergy is capable of securely managing millions of assets in real-time, unlocking their operational flexibility by intelligently managing them to provide the maximum value to consumers, grid operators, generators and energy suppliers.” Jens continued: “Large corporate utilities are mostly illequipped to deal with the rapid cultural and strategic changes combined with high innovation and the changing landscape of competitors as we’re seeing it in the energy industry. The UK’s energy sector is now at the cusp of structural transformation. The challenges we face during this fundamental re-organisation are exciting and ones that we, at Reactive Technologies, are well equipped to lead. Joining Reactive Technologies is simply the most exciting challenge I can imagine to take on.” Reactive Technologies will continue to bring highly sophisticated communications engineering technology products and services to the energy space, enabling a fundamentally more intelligent use of energy in all parts of the value chain of electricity. Marc Borrett, CEO and co-founder of Reactive Technologies said: “I am delighted that Jens has joined us at this critical stage of our development. His background and understanding of the energy industry make him a great addition to our senior management team. Jens brings with him a wealth of strategic, financial and commercial experience from his work both in the UK and Europe. “Jens knows better than anyone the energy consumption and risk management needs of large industrial and commercial customers, having turned around that division at RWE npower. He shares our vision about how energy can be better used and managed by all stakeholders within the industry. His deep understanding of the energy sector will ensure that our innovative intelligent energy management capabilities will be at the heart of addressing our customers’ most imminent needs.”

DEALS

BBIP AND EROCK FORM TEXAS MICROGRID WITH SIGNED CONTRACTS IN EXCESS OF 50 MWS

Texas Microgrid will provide backup power to a portfolio of creditworthy commercial and industrial customers using highly reliable and ultra-clean distributed natural gas generators. Additional revenues will be earned through sales of electricity and ancillary services in ERCOT. Texas Microgrid represents BBIP’s second investment in North America, further increasing the geographic diversity of its portfolio. Currently Texas Microgrid has signed customer contracts totalling over 50 MWs. BBIP has partnered with ERock, a highly experienced EPC, O&M and energy management partner with a strong track record in originating, constructing and operating micro grid power assets for backup power service. ERock is responsible for the design, installation, and commissioning of 225 MWs, and field and market operations of 167 MWs of reliability sites, comprising the largest dispatchable distributed generation fleet in Texas. Commenting for BBIP, Managing Partner Rob Gregor said: “As long term investors, we are committed to delivering the highest level of performance for customers and electricity markets and view Texas Microgrid as a strong fit with BBIP’s investment strategy. We were attracted by Enchanted Rock’s unique approach to providing reliable backup power while building long term customer relationships. We believe Texas Microgrid, with ERock’s innovative expertise in backup power and energy management, provides an attractive solution to customers who place a high value on electrical reliability.” Thomas McAndrew, Founding Partner and Managing Director of Enchanted Rock said, “The BBIP team has shown a dedication to the space and an ability to think creatively to develop long term infrastructure projects with attractive returns. We are proud to have them as partners and look forward to building out Texas Microgrid together.” Bracewell LLP acted as BBIP’s legal advisor for this transaction and Elder Bray & Bankler PC acted as Enchanted Rock’s legal advisor. For more information, visit www.erockhold.com

Balfour Beatty Infrastructure Partners LP (BBIP) and Enchanted Rock, Ltd. (ERock) announced in late May the closing of an equity financing to fund the construction of microgrid power assets in the state of Texas. The microgrid assets will be owned through a newly created entity, Texas Microgrid, LLC (Texas Microgrid), and operated by ERock.

DEALS

BLUEJACK ENERGY SOLUTIONS SECURES $100 MILLION PRIVATE EQUITY COMMITMENT FROM ENERGY SPECTRUM CAPITAL Formed in the third quarter of 2015, BlueJack provides oil and gas producers with a full suite of waste stream management solutions including saltwater transmission and disposal, solids processing and disposal and wastewater recycling. BlueJack’s initial operations are focused in the Permian Basin and the Marcellus and Utica shale plays. BlueJack has signed multiple contracts with Laredo Petroleum Inc. for water disposal services in the Permian Basin. Laredo will send to BlueJack a portion of Laredo’s produced and flowback water production from wells drilled within an area encompassing approximately 110,000 acres in Glasscock and Reagan counties in West Texas. To accommodate production from the dedicated acreage, BlueJack constructed two saltwater disposal facilities that will inject into the Ellenburger formation near Big Lake, Texas. Strategically located in Reagan County in the heart of the Permian’s Midland Basin, BlueJack’s Schwinn 5280 facility came into service in February 2016. BlueJack’s Merida 5280 facility is located in Glasscock County and came into service in April 2016. Both facilities serve producers targeting the Spraberry and Wolfcamp formations. Each facility has a permitted capacity of approximately 25,000 barrels per day (BPD). The facilities in place at the Schwinn and Merida sites are large enough to accommodate additional customers and also may be expanded as demand grows. BlueJack is led by a management and advisory team with more than 100 years of experience in the energy industry. BlueJack Founder, President and CEO Ted Lopez has extensive experience in wastewater management. A proven leader, he also serves as president of an independent company that designs and builds waste management facilities to meet the needs of large public and private companies. Joining Mr. Lopez on the BlueJack management team are Chief Commercial Officer Chris Valenti, Chief Financial Officer Peter Lee and Regional Director of Business Development, Marcellus & Utica, Andrew Kilgore.

BlueJack Energy Solutions, LLC (“BlueJack”) on 24th May announced that it has secured an initial equity commitment of up to $100 million from Energy Spectrum Capital through Energy Spectrum Partners VII LP (“Fund VII”).

CEO Perspective “Despite the dramatic shift in the commodities price environment, the opportunity for large-scale development of waste stream management and supplyside infrastructure continues to grow and expand,” said BlueJack CEO Ted Lopez. “Producers are focusing on plays with the best economics and are seeking relationships with reliable partners that have specific expertise and the ability to help them optimize operations and reduce lease operating costs. We established BlueJack alongside Energy Spectrum to combine and leverage our deep experience in waste stream management with their history of backing successful, growth-oriented midstream service providers.” From Energy Spectrum Capital “Energy Spectrum Capital is excited to partner with BlueJack,” said partner Mark Honeybone. “We are confident that the management team’s experience and successful track record of delivering oilfield infrastructure and outstanding service provides a strong foundation to build a new company and pursue a multibasin strategy. Ted and Chris have established several attractive anchor projects and have assembled a very talented team that will develop and operate high-quality assets, which is the cornerstone of our business model.” For more information, please visit www.bluejackenergy. com and www.energyspectrumcapital.com

DEALS

BRAVIDA HOLDING AB: BRAVIDA STRENGHTENS ITS POSITION IN STOCKHOLM BY ACQUIRING THE BJÖRNBERG GROUP

Bravida acquired the installation and service company Björnberg Group in Stockholm in early June. The company, a leading provider of heating and plumbing in the region, has about 170 employees and a turnover of around SEK 290 million. Bravida has entered upon an agreement to acquire all shares in the Björnberg Group, including the four subsidiaries AB CJ Björnbergs, Björnbergs Industri AB, Effektrör AB and Ejnar Björklunds Rör AB.

The Björnberg Group, founded in 1928, is a leading integrated supplier of installation and service within the areas of heating, plumbing and industrial pipes in Stockholm and the Mälardalen region, and, with its industrial products, also nationally.

Initially, Bravida will acquire 79 percent of the shares. The remaining shares will be acquired within 2.5 years. The acquisition requires approval from the Swedish Competition Authority. Bravida estimates to assume ownership as per 1 July 2016.

For Bravida, this is a strategically important step. The Björnberg Group complements us well. Besides providing a stronger position in Stockholm and the Mälardalen region, two areas of rapid growth, the acquisition gives us a substantial addition of competencies in heating and plumbing. Also, this strengthens our role as a supplier to Swedish industrial companies, says Mattias Johansson, CEO and Group President of Bravida.

Bravida is a leading multi-technical service provider in the Nordics, with about 9,000 employees. Bravida delivers specialist services as well as complete electrical, heating and plumbing, and HVAC solutions, offering everything from design and project planning to installation, operation and maintenance. Bravida is represented in around 140 locations in Sweden, Norway, Denmark and Finland.

The company is currently owned by Evolver Investment Group Ab, an investment company from the Finnish Åland islands, and a number of key employees within the Björnberg Group.

Web Address: www.bravidagroup.com/en

The transaction is an important recognition of the successful development and consolidation that have been made within the Björnberg Group during the past three years. It is with pride and joy that we hand over the ownership to one of the leading suppliers of installation and service in the Nordics. We see Bravida as an optimal new owner for Björnbergsgruppen, says Erik Flodin, partner at Evolver Investment Group and a board member of the Björnberg Group. With Bravida as our new owner, our overall offering will become considerably stronger, thereby increasing our possibilities to create greater value for our customers. At the same time, our employees will be able to keep developing within the company, says Anders Mattsson, CEO and Group President of the Björnberg Group.

DEALS

GE ENERGY FINANCIAL SERVICES AND VIRGINIA SOLAR GROUP COMMISSION PACIFICO ENERGY KUMENAN MEGA SOLAR PLANT IN OKAYAMA PREFECTURE, JAPAN

As one of largest solar power plants in the prefecture and in Japan’s Chugoku region, Kumenan Solar Project has been operating with enough power to meet the demands of 11,000 Japanese households since March 2016 when it was formally commissioned. The asset manager of Kumenan Solar Project is Pacifico Energy K.K.

GE Energy Financial Services and Virginia Solar Group have commenced commercial operations in mid-May on its jointly owned 32-megawatt Pacifico Energy Kumenan Mega Solar Project (“Kumenan Solar Project”), located in the Okayama prefecture of Japan.

Kumenan Solar Project sells its power to Chugoku Electric Company, the local utility in the Chugoku area of Japan, through a 20–year power purchase agreement at a fixed tariff. Okayama-based Asahi Dengyo Corporation will provide ongoing operations and maintenance services for the solar plant.

Engineering, procurement and construction of Kumenan Solar Project has been carried out by Tokyo-based Toyo Engineering Corporation and was completed one month ahead of schedule. The project was specially designed and constructed on mountainous terrain to leverage accessible slopes, which help maximize power output and cost efficiencies.

Kumenan Solar Project was the first project in the country to introduce the global standard of non-recourse project financing with a JPY ¥11 billion loan from The Bank of Tokyo–Mitsubishi UFJ and The Chugoku Bank Ltd. It was also GE Energy Financial Services’ first investment in Japan. “We are pleased to see our first ever investment in Japan come to life and start generating clean power that helps the country meet its renewables energy targets,” said Sushil Verma, Managing Director and Head of Asia Pacific at GE Energy Financial Services. “This 32-megawatt project has been a great first step for us. We challenged the design, procurement, construction, and finance to optimize the project and increase its viability as a sustainable energy source in the Japanese solar market.” said Kazuomi Kaneto, representative director of Pacifico Energy Kumenan G.K. Kumenan Solar Project marks the first solar plant in Japan that GE Energy Financial Services and Virginia Solar Group have led to commercial operation. Together they have invested in two other projects in the country, which are currently under construction; Mimasaka Musashi (42-megawatt) and Hosoe (96-megawatt) are scheduled to begin operating in the second half of 2016 and first half of 2018, respectively. For more information, please see: www.pacificoenergy.jp, www.geenergyfinancialservices.com and www.ge.com hcho@pacificoenergy.jp

DEALS

GREAT PLAINS ENERGY TO ACQUIRE WESTAR ENERGY, CREATING LONG-TERM VALUE FOR SHAREHOLDERS AND COST SAVINGS FOR CUSTOMERS

Great Plains Energy Incorporated, the parent company of KCP&L, and Westar Energy, Inc. in late May announced a definitive agreement for Great Plains Energy to acquire Westar in a combined cash and stock transaction with an enterprise value of approximately $12.2 billion, including total equity value of approximately $8.6 billion. Upon closing, Westar will become a wholly owned subsidiary of Great Plains Energy.

Once the transaction is complete, Great Plains Energy will have more than 1.5 million customers in Kansas and Missouri, nearly 13,000 megawatts of generation capacity, almost 10,000 miles of transmission lines and over 51,000 miles of distribution lines. In addition, more than 45 percent of the combined utility’s retail customer demand can be met with emission-free energy.

Great Plains Energy has an established track record of successful integration with adjacent electric utilities. In 2008, Great Plains Energy completed its acquisition of Aquila, an electric utility serving customers in adjacent areas of Missouri. That successful acquisition has delivered – and continues to deliver – significant savings for customers, which exceeded initial expectations and was reviewed and approved by both the Missouri Public Service Commission and the Kansas Corporation Commission.

“Westar and KCP&L are trusted neighbors and have worked together for generations in Kansas. The combination of our two companies is the best fit for meeting our region’s energy needs,” said Terry Bassham, chairman and chief executive officer of Great Plains Energy and KCP&L. “This is an important transaction for Kansas and our entire region. By combining our two companies, we are keeping ownership local and management responsive to regulators, customers and regional needs, while enhancing our ability to build long-term value for shareholders.” Currently, Great Plains Energy and Westar jointly own and operate the Wolf Creek Nuclear Generating Station, as well as the La Cygne and Jeffrey power plants. With the addition of Westar’s generation fleet, Great Plains Energy will have a more diverse and sustainable generation portfolio. This will provide increased flexibility to mitigate the potential customer impacts from future carbon regulation. In addition, among investor-owned utilities in the United States, the combined company will have one of the largest portfolios of wind generation in the country. “This is an important day for Westar, our customers, employees, shareholders, the communities we support and for the state of Kansas,” said Mark Ruelle, president and chief executive officer of Westar. “Our commitment to reliability, customer satisfaction, safety and sustainability is consistent with Great Plains Energy’s values, which makes them our ideal partner. We’re eager to join the Great Plains Energy team, and excited about this new chapter that combines the unique strengths of our respective organizations to form an even stronger company for our state.”

“The utility industry is facing rising customer expectations, increasing environmental standards and emerging cyber security threats. These factors, coupled with slower demand growth for electricity, are driving our costs and customer rates higher. Our acquisition of Westar will create operational efficiencies and future cost savings that will benefit all involved – customers, shareholders, employees and the communities we serve. These savings also will help reduce future rate increase requests,” said Bassham. “Combining our two companies will result in cost savings and operational benefits for our more than 900,000 Kansas and 600,000 Missouri customers.” Transaction terms and financing profile Under the terms of the agreement, which was unanimously approved by the boards of directors for both companies, Westar shareholders will receive $60.00 per share of total consideration for each share of Westar common stock, consisting of $51.00 in cash and $9.00 in Great Plains Energy common stock, subject to a 7.5 percent collar based upon the Great Plains Energy common stock price at the time of the closing of the transaction, with the exchange ratio for the stock consideration ranging between 0.2709 to 0.3148 shares of Great Plains Energy common stock for each Westar share of common stock, representing a consideration mix of 85 percent cash and 15 percent stock. The transaction enterprise value is expected to be approximately $12.2 billion, inclusive of approximately $8.6 billion in total stock and cash consideration to be received by Westar’s shareholders and the assumption

DEALS

Leadership and headquarters Upon completion of the transaction, Bassham will be chairman and chief executive officer of the combined company. Ruelle will remain in his current role with Westar until the closing of the transaction. In addition, Great Plains Energy will add one director from the Westar Board of Directors to the Great Plains Energy Board of Directors. “We understand the importance of Westar to the communities it serves and the meaningful contributions it makes as a major employer in Kansas,” said Bassham. “We are committed to maintaining the operating headquarters for our Kansas service territory in downtown Topeka. We also know that Westar has a reputation as a strong supporter of community and charitable initiatives. We will continue this legacy and are committed to maintaining a strong presence in all of the communities Westar serves.” Sustainability Customers today expect their utility providers to identify and advance energy efficiency options that give them greater control and choice. The combined company will have a greater, more diverse portfolio of energy solutions that give customers the opportunities to better manage their individual energy needs. In addition, Great Plains Energy operates the nation’s largest utility-owned electric vehicle charging network, which can be expanded to benefit Westar’s customers.

of approximately $3.6 billion in Westar’s debt. Great Plains Energy has secured approximately $8.0 billion of committed debt financing from Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC in connection with the transaction for the full cash portion of the transaction consideration. Great Plains Energy has also secured a $750 million mandatorily preferred convertible equity commitment from the Ontario Municipal Employees Retirement System (OMERS), to be funded at the closing of the transaction. Great Plains Energy plans to issue long-term financing consisting of a combination of equity, equity-linked securities and debt prior to closing of the transaction. This financing mix will allow Great Plains Energy to maintain its solid, investment grade credit ratings. Great Plains Energy expects savings generated from combining the two companies to be consistent with recent comparable transactions, and its own recent experience. Great Plains Energy expects the acquisition will be neutral to earnings-per-share in the first full calendar year of operations and significantly accretive thereafter. The longterm earnings growth target of the combined company is expected to grow to six to eight percent—better than either company on a standalone basis.

Regulatory Approval The companies anticipate making the required regulatory filings with the Kansas Corporation Commission and other regulatory entities during June and July of 2016. In addition, Great Plains Energy and Westar will seek shareholder approvals later this year. The transaction is subject to approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The transaction also is subject to the notification, clearance and reporting requirements under the Hart-Scott-Rodino Act by the Federal Trade Commission and the U.S. Department of Justice. The companies anticipate closing in the spring of 2017. In the coming months, the companies will work together to develop a robust integration plan. Advisors Goldman, Sachs & Co. served as the exclusive financial advisor and Bracewell LLP served as legal advisor to Great Plains Energy. Guggenheim Securities, LLC served as the sole financial advisor and Baker Botts LLP served as legal advisor to Westar Energy. More information about the companies is available on the internet at www.greatplainsenergy.com or www.kcpl.com For more information about Westar Energy, visit us at www.WestarEnergy.com

DEALS

ADDLESHAW GODDARD STRENGTHENS OMAN CAPABILITY WITH TWO NEW APPOINTMENTS

Addleshaw Goddard has strengthened its offering in Oman with the appointment of Oliver Stevens and Jamie Kellick. The pair who were originally based in the firm’s Dubai office, join at a significant time for the Oman office as it looks to continue to grow its corporate and litigation offerings.

Oliver joins as Head of Corporate for Oman and has worked in the region since 2012. With over twelve years’ experience, he advises companies on the regional and international aspects of mergers & acquisitions, joint ventures, private equity investments and general corporate governance matters. Jamie, who will relocate to Oman in 2017, specialises in commercial disputes advising government entities, local companies and foreign investors on construction law, project disputes, financial crime, fraud and regulatory matters. Commenting on the appointments, Head of the Oman office, Roger Byrne stated: “I am delighted to welcome both Oliver and Jamie. Their appointments significantly bolster our capabilities in Oman and this latest investment by us into two growth areas is a further commitment of our intent to deliver the best for our clients in this market. “Oman continues to be a destination for foreign investment, with an emphasis on diversifying its economy away from the oil & gas sectors and with an increase in infrastructure and development projects, we are well positioned to advise clients and local businesses on largescale, high profile and value transactions that will continue to help drive Oman’s local economy.” AG in Oman provides quality legal services in association with Nasser Al Hasbi & Saif Marmari Law Firm, which is a fully integrated practice forming part of the wider AG group.

DEALS