Water and wastewater company Pennon, which serves the south west, says it has identified renewable energy generation investment opportunities of around £60 million over the period to 2030. It said it is considering reinvesting totex outperformance in these “commercially compelling opportunities”. The projects are in addition to £20 million associated with projects “within the envelope of regulatory allowances”.
The company previously described maximising self-generation from renewables at its sites as “A cornerstone of our journey to 2030 and beyond,” highlighting the region’s potential for hydropower from rainfall on the high moors, wind power from the “second windiest region in the UK” and solar power from “one of the sunniest areas of the UK“. It is aiming to achieve up to 50% self-generated energy by 2030. The plan comes three months after the company announced, in July, that it would achieve net zero carbon emissions by 2030.
Pennon has 2000 sites that use electricity, of which 400 sites account for 90% of the electricity consumed and these are being prioritised, based on consumption, to identify the most viable options for renewables.
Including self-supplied energy, the group said it used 357GWh of energy in 2020/21. In its annual report for 2020/21 Pennon said it currently operates more than 60 renewable energy installations, a mixture of hydroelectric power, wind, solar and biogas schemes, and said it is on track to add 13 solar sites to its portfolio.
In 2020/21 around 21GWh of electricity came from renewable sources, with more than 11.5GWh self-generated. In 2021/22 the company said it would increase its target renewable energy generation by 4%.
Under a new electricity supplycontract starting in April 2022, Pennon’s South West Water area will use 100% certified UK renewable energy. The company said South West Water has hedged the majority of its wholesale power costs through to March 2022 and the new contracts would maximise hedging opportunities, to mitigate the risk of volatility in the energy markets.
Last year higher power costs, along with pay increases, accounted for inflationary impacts of £8 million. Pennon also paid fuel excise duty of £1 million related to transport costs.