UK Renewable Output Falls By 46% On Last Year

Energy giant Centrica has today revealed that its UK renewable power generation has fallen by 46% in the first half of 2010, compared with the same period last year, from 386GWh to 209GWh.

According to the company's interim results up to the period June 30, weather patterns have resulted in lower generated volumes, "despite the high availability of our wind portfolio". This issue has been highlighted by other large energy companies, including Scottish and Southern Energy (see this NewEnergyFocus.com story).

In financial terms, the results show that the group has achieved revenues of £11.7 billion so far this year, representing a very small increase on 2009's half year result of £11.65 billion, and the group has recorded an operating profit of £1.5 billion, up from £936 million in 2009.

The company also notes that it in February this year it completed the joint venture agreement for the 270MW Lincs offshore wind farm project with DONG Wind UK and Siemens Project Ventures.

Centrica has sold 50% of the issued share capital and 50% of the shareholder debt of Lincs Windfarm Limited to the two comapnies for £55 million, while retaining 50% of its interests in Lincs, which owns a wind farm which is under construction off the Lincolnshire coast.

Commenting on the results, Sam Laidlaw, chief executive of Centrica, said: "Centrica has performed well in the year to date, with strong results underpinned by improved operational performance in each area of our business.

"We have a sound platform for growth with significant optionality in our investment programme. We are therefore well positioned to deliver long-term value for our shareholders while maintaining a competitive, high quality service for our customers."

Low carbon
Moving forward, Centrica claims that two of its priorities include growing British Gas to lead the transition to low carbon homes and businesses and delivering value from its "growing" upstream business, to secure sustainable energy for its customers.

The group claims that British Gas is leading in the low carbon world and draws attention to initiatives such as ‘solar for schools', as well as pointing out its capabilities in biomass, heating, solar, biomethane and fuel cell boilers.

On its plans for the future, in line with the government's energy policies, Centrica's results document states: "It is widely recognised that this is an important time for energy policy, if carbon targets and security of supply needs are to be met. We welcome the proposals the new coalition government has put forward in the Queen's Speech in respect of energy security and helping to decarbonise UK energy - both in power generation and in homes and businesses.

"Changes to the power market will be required to ensure that appropriate incentives are in place to enable investment in low carbon generation and, over time, to manage increased levels of intermittent and low marginal cost generation. A stable investment climate will be essential for industry to be able to make the long-term investments that will be required."