Aug 23 2017

Sortable table of project status

New information

In Q2 2017, the European Commission published one-page factsheets on many NER300 projects (see article). They revealed for the first time the name of the Project Sponsor (the company behind the project) and the date, or expected date, of the Final Investment Decision on the project by the Project Sponsor. Often they contained a line or two on the status of the project. The factsheets stick closely to the text supplied by Project Sponsors as part of their 2016 reporting obligation to the EC.

Click inside the table below to see a sortable table summarising the essential points from those factsheets.

Flexible FIDs?

All projects from Call 1 (with five exceptions) claim to have reached Final Investment Decision by the EC’s deadline of December 2016. The EC understands Final Investment Decision as “the ultimate financial close on the proposed investment program, including a life cycle program baseline that establishes cost, schedule, performance, benefits, and risk-management boundaries for program execution” (FAQ 250). But the factsheets show that three CSP (concentrating solar power) projects spread over Greece and Cyprus intend to “complete financing”, “sign power purchase agreements” or reach “financing closure” only in 2017. Two wind projects also have work to do. One reports, “Financial close is expected for the middle of 2017;” the other that “definition of the detailed contractual framework and financing” is planned for this year. Confusing statements have been made concerning the FID of the Finnish Ajos BTL project.

All but two projects from Call 2 expect to reach FID on the last allowable date, June 2018.

Probability has included a column called “Probability” in the table. This contains a score from 1-5 (1 low; 5 high) for the likelihood that a project will enter into operation. The score is based in part on the info in the factsheet.

Missing data

Projects that are in operation are obliged to put certain specific datasets related to their operation into the public domain. This has not happened. Two of the three projects in this position also have no factsheet.

  1.’s comment

    The EC has not imposed its definition of “Final Investment Decision” too rigidly, relying mainly on the host Member State’s word that it has been reached. A Project Sponsor that claimed to have reached Final Investment Decision in December in 2016 has even used an EC-hosted and -chaired conference to say, “Our objective is to reach financial close by the end of September 2017” (see Windfloat in the table below). Although in a paper circulated to NER300 NCPs on 3 Feb 2017 the Commission wrote, “The full scale of NER300 undisbursed funds” was “expected to be known by the end of February 2017”, only in July did the Commission put pressure on companies to confirm whether they had complied with the Dec 2016 deadlines.

    Member States individually have little incentive to be strict on FID for their projects, although it might be in their common interest if they were. A stricter approach would likely allow more money to be recycled to more mature projects.

    Project Sponsors from Call 2 will take note of the EC’s leniency. They have an interest in making a premature declaration of Final Investment Decision if it allows them to present higher “relevant cost” than if they waited. “Relevant cost” has little meaning in real life, although it is derived from some of the quantities used in a project’s financial model. An NER300 award is capped at 50% of relevant cost. It may be revised down (but never up) if the relevant cost changes, but only up to the point that the FID is taken.

    Concerning the timing of the release of these factsheets, it is rather remarkable that it has taken 3-5 years, depending on the call, for the names of the companies behind the projects to be officially communicated. In other EU programmes for energy technology demonstration, such as FP7 or Horizon 2020, the names of beneficiaries are published as soon as grants are awarded.

NER300 call Name Country Operational data missing? Final Investment Decision Final Invesment Decision comment Project Sponsor Notable comments Probability of getting operational (1-5) Project website Official fiche
1 BIO – Ajos BTL FI Dec-2016 reached (but statements to the press cast doubt: Sunshine Kaidi New Energy Co. Ltd (one of the biggest bioenergy companies in China) The first construction activities are expected to start in 2017. 4
1 BIO – BEST IT Yes operating since 1 Jun 2013 n/a under preparation
1 BIO – CEG Plant Goswinowice PL 1 officially, "under preparation"; unofficially, project is dead
1 BIO – Verbiostraw DE Yes operating since 3 Jan 2014 n/a under preparation
1 CSP – HeliosPower CY Dec-2016 P.F.X.T. THERMOSOLAR RENEWABLES LT In 2017, "Financing finalization and the initiation of the construction phase." 2
1 CSP – Maximus EL Dec-2016 A.N. MAXIMUS SOLAR THERMAL LTD In 2017, "Complete signing of Power Purchase Agreement, Connection Agreement, Legally binding Instrument and financing closure, in order to proceed to the project construction commencement within 2017." 2
1 CSP – Minos EL Dec-2016 NUR-MOH Heliothermal S.A. In 2017, "Complete financing" 2
1 GEO – South Hungarian Enhanced Geothermal System Demonstration HU Dec-2016 EU-FIRE EGS Hungary Kft. 3
1 OCN – Sound of Islay UK 2 unofficially
under preparation
1 OCN – Stroma Tidal Turbine Array UK Dec-2016 MeyGen Limited Entry into operation Dec 2017 5 unofficially
1 WIN – Nordsee One DE Dec-2014 85 % NPEW North S.à r.l. and 15 % Nordsee Windpark Beteiligungs GmbH Entry into operation Dec 2017 5
1 WIN – Veja Mate DE Jun-2015 Highland Group Holding (59,293%), Siemens Financial Services (40,707%) and Copenhagen Infrastructure II K/S (0,001%) Entry into operation Jul 2017 5
1 WIN – Vertimed FR Jul-2016 EDF EN In 2017, "Definition of the detailed contractual framework and financing" 2
1 WIN – Windfloat PT Dec-2016 WindPlus S.A Recent reorganising of the shareholders; "Financial close is expected for the middle of 2017." 3
1 WIN – Windpark Blaiken SE Yes Feb-2014 operating since 1 Jan 2015 BlaikenVind AB n/a
1 WIN – Windpark Handalm AT Dec-2014 Energie Steiermark A Turbines should be being installed now, finished by Oct 4
2 BIO – Bio2G SE Jun-2018 E.ON Biofor Sverige AB 2
2 BIO – CHP Biomass pyrolysis LV Jun-2018 FID postponed to this date SIA Fortum Latvia Construction should be started in Q3 2018. 2
2 BIO – Fast pyrolysis EE Jun-2018 FID postponed to this date Fortum Eesti AS 2
2 BIO – MET DK Jun-2018 Konsortiet for etablering af Maabjerg Energy Concept I/S (MECO l/S) 2
2 BIO – TORR EE Jun-2018 Baltania OÜ 3
2 BIO – W2B ES Jun-2018 Abengoa Bioenergia Nuevas Tecnologias, S.A. (ABNT) As of January 2017, the project sponsor is awaiting for the competitive public tender process to be called by the local authorities. 2
2 CSP – EOS GREEN ENERGY CY Jun-2018 Alfa Mediterranean Enterprises Limited Still no legally binding instrument has been signed; "terms to be finalised with EPC (Engineering, Procurement, and Construction) contractor up to 30 June 2017"; significant parts of the equipment from China; "Solastor Pty Ltd from Australia (being the suppliers of the project’s technology) will supervise production and assembly of the equipment" 3
2 CSP – Mazara Solar IT 1 under preparation
2 DRM – Green+ CY Jun-2018 Electricity Authority of Cyprus (EAC) 3
2 DRM – Puglia Active Network IT Feb-2015 E-distribuzione S.p.A. Electric vehicle charging infrastructure is installed; "smart info devices under delivery" 5
2 GEO – Geothermae HR Mar-15 AAT Geothermae d.o.o. za proizvodnju energije 4
2 OCN – NEMO FR Jun-2018 New Energy for Martinique and Overseas The preparation of project finance process should be launched by September 4
2 OCN – SWELL PT Jun-2018 Eneólica – Energias Renováveis e Ambiente S The project described here –
– "plays an important role in securing the subsequent final investment decision"
2 OCN – WestWave IE Jun-2018 ESB 3
2 PV – Santa Luzia Solar Farm PT Jun-2018 "Lagos Solar Power, Unipessoal Lda, under HYPERION, a solar investment company" In 2016 the project relaunched the main permitting procedures. 3
2 WIN – BALEA ES Jun-2018 EVE – Ente Vasco de la Energía All efforts focused on ensuring the financial viability of the project. 2
2 WIN – FloCan5 ES Jun-2018 Cobra Instalaciones y Servicios S.A Still working on the design: "Certification of the detailed design by DNV-GL" 4
2 CCS – White Rose UK 1 officially, "under preparation"; unofficially, project is dead