Power consumers must become more savvy ‘shoppers’

Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

• The impact of the COVID-19 electricity demand shift on operations and revenues;
• State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
• The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
• The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
• The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
• Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
• Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
• Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
• Advancements in technology;
• Additional competition in electric and natural gas markets and continued industry consolidation;
• The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
• The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
• The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
• Operational interruptions to our natural gas distribution and transmission activities;
• The availability of adequate interstate pipeline transportation capacity and natural gas supply;
• The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
• The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
• The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
• The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
• Credit ratings of the Duke Energy Registrants may be different from what is expected;
• Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
• Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
• Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
• The ability to control operation and maintenance costs;
• The level of creditworthiness of counterparties to transactions;
• The ability to obtain adequate insurance at acceptable costs;
• Employee workforce factors, including the potential inability to attract and retain key personnel;
• The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
• The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
• The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
• The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
• The impacts from potential impairments of goodwill or equity method investment carrying values; and
• The ability to implement our business strategy, including enhancing existing technology systems.
• Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Vogtle Units 3 and 4 are Westinghouse AP1000 nuclear reactors under construction in Waynesboro, Georgia, led by Southern Nuclear, Georgia Power, and Bechtel, adding 2,234 MWe of carbon-free baseload power with DOE loan guarantees.

Key Points

Vogtle Units 3 and 4 are AP1000 reactors in Georgia delivering 2,234 MWe of low-carbon baseload electricity.

✅ Each unit: Westinghouse AP1000, 1,117 MWe capacity.

✅ Managed by Southern Nuclear, built by Bechtel.

✅ DOE loan guarantees support financing and risk.

Construction is ongoing for two new nuclear reactors, Units 3 and 4, at Georgia Power's Alvin W. Vogtle Electric Generating Plant in Waynesboro, Ga. the first new nuclear reactors to be constructed in the United Stated in 30 years, mirroring a new U.S. reactor startup that will provide electricity to more than 500,000 homes and businesses once operational.

Construction on Unit 3 started in March 2013 with an expected completion date of November 2021. For Unit 4, work began in November 2013 with a targeted delivery date of November 2022. Each unit houses a Westinghouse AP1000 (Advanced Passive) nuclear reactor that can generate about 1,117 megawatts (MWe). The reactor pressure vessels and steam generators are from Doosan, a South Korean firm.

The pouring of concrete was delayed to 2013 due to the United States Nuclear Regulatory Commission issuing a license amendment which permitted the use of higher-strength concrete for the foundations of the reactors, eliminating the need to make additional modifications to reinforcing steel bar.

The work is occurring in the middle of an operational nuclear facility, and the construction area contains many cranes and storage areas for the prefabricated parts being installed. Space also is needed for various trucks making deliveries, especially concrete.

The reactor buildings, circular in shape, are several hundred feet apart from one another and each one has an annex building and a turbine island structure. The estimated total price for the project is expected in the $18.7 billion range. Bechtel Corporation, which built Units 1 and 2, was brought in January 2017 to take over the construction that is being overseen by Southern Nuclear Operating Company (SNOC), which operates the plant.

The project will require the equivalent of 3,375 miles of sidewalk; the towers for Units 3 and 4 are 60 stories high and have two million pound CA modules; the office space for both units is 300,000 sq. ft.; and there are more than 8,000 construction workers over 30 percent being military veterans. The new reactors will create 800 permanent jobs.

Southern Nuclear and Georgia Power took over management of the construction project in 2017 after Westinghouse's Chapter 11 bankruptcy. The plant, built in the late 1980s with Unit 1 becoming operational in 1987 and Unit 2 in 1989, is jointly owned by Georgia Power (45.7 percent), Oglethorpe Power Corporation (30 percent), Municipal Electric Authority of Georgia (22.7 percent) and Dalton Utilities (1.6 percent).

"Significant progress has been made on the construction of Vogtle 3 and 4 since the transition to Southern Nuclear following the Westinghouse bankruptcy," said Paul Bowers, Chairman, President and CEO of Georgia Power. "While there will always be challenges in building the first new nuclear units in this country in more than 30 years, we remain focused on reducing project risk and maintaining the current project momentum in order to provide our customers with a new carbon-free energy source that will put downward pressure on rates for 60 to 80 years."

The Vogtle and Hatch nuclear plants currently provide more than 20 percent of Georgia's annual electricity needs. Vogtle will be the only four-unit nuclear facility in the country. The energy is needed to meet the rising demand for electricity as the state expects to have more than four million new residents by 2030.

The plant's expansion is the largest ongoing construction project in Georgia and one of the largest in the state's history, while comparable refurbishments such as the Bruce reactor overhaul progress in Canada. Last March an agreement was signed to secure approximately $1.67 billion in additional Department of Energy loan guarantees. Georgia Power previously secured loan guarantees of $3.46 billion.

The signing highlighted the placement of the top of the containment vessel for Unit 3, echoing the Hinkley Point C roof lift seen in the U.K., which signified that all modules and large components had been placed inside it. The containment vessel is a high-integrity steel structure that houses critical plant components. The top head is 130 ft. in diameter, 37 ft. tall, and weighs nearly 1.5 million lbs. It is comprised of 58 large plates, welded together with each more than 1.5 in. thick.

"From the very beginning, public and private partners have stood with us," said Southern Company Chairman, President and CEO Tom Fanning. "Everyone involved in the project remains focused on sustaining our momentum."

Bechtel has completed more than 80 percent of the project, and the major milestones for 2019 have been met, aligning with global nuclear milestones reported across the industry, including setting the Unit 4 pressurizer inside the containment vessel last February, which will provide pressure control inside the reactor coolant system. More specialized construction workers, including craft labor, have been hired via the addition of approximately 300 pipefitters and 350 electricians since November 2018. Another 500 to 1,000 craft workers have been more recently brought in.

A key accomplishment occurred last December when 1,300 cu. yds. of concrete were poured inside the Unit 4 containment vessel during a 21-hour operation that involved more than 100 workers and more than 120 truckloads of concrete. In 2018 alone, more than 23,000 cu. yds. of concrete were poured part of the nearly 600,000 cu. yds. placed since construction started, and the installation of more than 16,200 yds. of piping.

Progress also has been solid for Unit 3. Last January the integrated head package (IHP) was set inside the containment vessel. The IHP, weighing 475,000 lbs. and standing 48 ft. tall, combines several separate components in one assembly and allows the rapid removal of the reactor vessel head during a refueling outage. One month earlier, the placement of the third and final ring for containment vessel, and the placement of the fourth and final reactor coolant pump (RCP, 375,000 lbs.), were executed.

"Weighing just under 2 million pounds, approximately 38 feet high and with a diameter of 130 feet, the ring is the fourth of five sections that make up the containment vessel," stated a Georgia Power press release. "The RCPs are mounted to the steam generator and serve a critical part of the reactor coolant system, circulating water from the steam generator to the reactor vessel, allowing sufficient heat transfer for safe plant operation. In the same month, the Unit 3 shield building with additional double-decker panels, was placed.

According to a construction update from Georgia Power, a total of eight six-panel sections have been placed, with each one measuring 20 ft. tall and 114 ft. wide, weighing up to 300,000 lbs. To date, more than half of the shield building panels have been placed for Unit 3. The shield building panels, fabricated in Newport News, Va., provide structural support to the containment cooling water supply and protect the containment vessel, which houses the reactor vessel.

Building the reactors is challenging due to the design, reflecting lessons from advanced reactors now being deployed. Unit 3 will have 157 fuel assemblies, with each being a little over 14 ft. long. They are crucial to fuelling the reactor, and once the initial fueling is completed, nearly one-third of the fuel assemblies will be replaced for each re-fuelling operation. In addition to the Unit 3 containment top, placement crews installed three low-pressure turbine rotors and the generator rotor inside the unit's turbine building.

Last November, major systems testing got underway at Unit 3 as the site continues to transition from construction toward system operations. The Open Vessel Testing will demonstrate how water flows from the key safety systems into the reactor vessel ensuring the paths are not blocked or constricted.

"This is a significant step on our path towards operations," said Glen Chick, Vogtle 3 & 4 construction executive vice president. "[This] will prepare the unit for cold hydro testing and hot functional testing next year both critical tests required ahead of initial fuel load."

It also confirms that the pumps, motors, valves, pipes and other components function as designed, a reminder of how issues like the South Carolina plant leak can disrupt operations when systems falter.

"It follows the Integrated Flush process, which began in August, to push water through system piping and mechanical components that feed into the Unit 3 reactor vessel and reactor coolant loops for the first time," stated a press release. "Significant progress continues ... including the placement of the final reinforced concrete portion of the Unit 4 shield building. The 148-cubic yard placement took eight hours to complete and, once cured, allows for the placement of the first course of double-decker panels. Also, the upper inner casing for the Unit 3 high-pressure turbine has been placed, signifying the completion of the centerline alignment, which will mean minimal vibration and less stress on the rotors during operations, resulting in more efficient power generation."

The turbine rotors, each weighing approximately 200 tons and rotating at 1,800 revolutions per-minute, pass steam through the turbine blades to power the generator.

The placement of the middle containment vessel ring for Unit 4 was completed in early July. This required several cranes to work in tandem as the 51-ft. tall ring weighed 2.4 million lbs. and had dozens of individual steel plates that were fabricated on site.

A key part of the construction progress was made in late July with the order of the first nuclear fuel load for Unit 3, which consists of 157 fuel assemblies with each measuring 14 ft. tall.

On May 7, Unit 3 was energized (permanently powered), which was essential to perform the testing for the unit. Prior to this, the plant equipment had been running on temporary construction power.

"[This] is a major first step in transitioning the project from construction toward system operations," Chick said.

Construction of the north side of the Unit 3 Auxiliary Building (AB) has progressed with both the floor and roof modules being set. Substantial work also occurred on the steel and concrete that forms the remaining walls and the north AB roof at elevation.

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Community Power Tariff UK delivers clean electricity from community energy projects, sourcing renewable energy from local wind and solar farms, with carbon offset gas, transparent provenance, fair pricing, and reinvestment in local generators across Britain.

Key Points

UK energy plan delivering 100% community renewable power with carbon-offset gas, sourced from local wind and solar.

✅ 100% community-generated electricity from UK wind and solar

✅ Fair prices with profits reinvested in local projects

✅ Carbon-offset gas and verified, transparent provenance

UK homes will soon be able to plug into community wind and solar farms from anywhere in the country through the first energy tariff to offer clean electricity exclusively from community projects.

The deal from Co-op Energy comes as green energy suppliers race to prove their sustainability credentials amid rising competition for eco-conscious customers and “greenwashing” in the market.

The energy supplier will charge an extra £5 a month over Co-op’s regular tariff to provide electricity from community energy projects and gas which includes a carbon offset in the price.

Co-op, which is operated by Octopus Energy after it bought the business from the Midcounties Co-operative last year, will source the clean electricity for its new tariff directly from 90 local renewable energy generation projects across the UK, including the Westmill wind and solar farms in Oxfordshire. It plans to use all profits to reinvest in maintaining the community projects and building new ones.

Phil Ponsonby, the chief executive of Midcounties Co-operative, said the tariff is the UK’s only one to be powered by 100% community-generated electricity and would ensure a fair price is paid to community generators too, amid a renewable energy auction boost that supports wider deployment.

Customers on the Community Power tariff will be able to “see exactly where it is being generated at small scale sites across the UK, and, with new rights to sell solar power back to energy firms, they know it is benefiting local communities”, he said.

Co-op, which has about 300,000 customers, has set itself apart from a rising number of energy supply deals which are marked as 100% renewable, but are not as green as they seem, even as many renewable projects are on hold due to grid constraints.

Consumer group Which? has found that many suppliers offer renewable energy tariffs but do not generate renewable electricity themselves or have contracts to buy any renewable electricity directly from generators.

Instead, the “pale green” suppliers exploit a loophole in the energy market by snapping up cheap renewable energy certificates, without necessarily buying energy from renewables projects.

The certificates are issued by the regulator to renewable energy developers for each megawatt generated, but these can be sold separately from the electricity for a fraction of the price.

A survey conducted last year found that one in 10 people believe that a renewables tariff means that the supplier generates at least some of its electricity from its own renewable energy projects.

Ponsonby said the wind and solar schemes that generate electricity for the Community Power tariff “plough the profits they make back into their neighbourhoods or into helping other similar projects get off the ground”.

Greg Jackson, the chief executive of Octopus Energy, said being able to buy locally-sourced clean, green energy is “a massive jump in the right direction” which will help grow the UK’s green electricity capacity nationwide.

“Investing in more local energy infrastructure and getting Britain’s homes run by the sun when it’s shining and wind energy when it’s blowing can end our reliance on dirty fossil fuels sooner than we hoped,” he said.

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OEB Hydro One Rate Decision 2023-2027 sets approved transmission and distribution rates in Ontario, with a settlement reducing revenue requirement, modest bill impacts, higher productivity factors, inflation certainty, DVA credits, and First Nations participation measures.

Key Points

OEB-approved Hydro One 2023-2027 transmission and distribution rates settlement, lowering costs and limiting bill impacts.

✅ $482.7M revenue reductions vs. original proposal

✅ Avg bill impact: +$0.69 trans., +$2.43 distr. per month

✅ Faster DVA refunds; productivity and efficiency incentives

The Ontario Energy Board (OEB) issued its Decision and Order on an application filed by Hydro One Networks Inc. (Hydro One) on August 5, 2021 seeking approval for changes to the rates it charges for electricity transmission and distribution, beginning January 1, 2023 and for each subsequent year through to December 31, 2027. 

The proceeding resulted in the filing of a settlement proposal that the OEB has now approved after concluding that it is in the public interest. 

The negotiated reductions in Hydro One's transmission and distribution revenue requirements over the 2023 to 2027 period total $482.7 million compared to the requests made by Hydro One in its application.

The OEB found that the reductions in Hydro One's proposed capital expenditure and operating, maintenance and administration costs were reasonable, and should not compromise the safety and reliability of Hydro One's transmission and distribution systems. It also concluded that the estimated bill impacts for both transmission and distribution customers are reasonable, and that the January 1, 2023 implementation and effective date of the new rates is appropriate.

In the broader Canadian context, pressures on utility finances at other companies, such as Manitoba Hydro's debt provide additional background for stakeholders.

Bill Impacts

This proceeding related to both transmission and distribution operations.

Transmission

The new transmission revenue requirement will affect Ontario electricity consumers across the province because it will be incorporated into updated transmission rates, which are paid by electricity distributors and other large consumers connected directly to the transmission system, and distributors then pass this cost on to their customers.

As a result of the settlement approved on the transmission portion of the application, it is estimated that for a typical Hydro One residential customer with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $0.69 per month or 0.5%, which follows the 2021 electricity rate reductions that affected many businesses.

Distribution

The new OEB-approved distribution rates will affect Hydro One's distribution customers, including areas served through acquisitions such as the Peterborough Distribution sale which expanded its customer base.

As a result of the settlement reached on the distribution portion of the application, it is estimated that for a typical residential distribution customer of Hydro One with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $2.43 per month or 1.5%.
This proceeding included 24 approved intervenors representing a wide variety of customer classes and other interests. Representatives of 18 of those intervenors participated in the settlement conference. Having this diversity of perspective enriches the already thorough examination of evidence and argument that the OEB routinely undertakes when considering an application.

Other features of the settlement proposal include:

• A commitment by Hydro One to include, in future operational and capital investment plans, a discussion of how the proposed spending will directly support the achievement of Hydro One's climate change policy.
• Eliminating further updates to reflect changes to inflation in 2022 and 2023 as originally proposed, to provide Hydro One's customers with greater certainty as to the potential impacts of inflation on their bills.
• Increases in the productivity factors and supplemental stretch factors for both the distribution and transmission business segments which will provide Hydro One with additional incentives to achieve greater efficiencies during the 2023 to 2027 period.
• Undertaking certain measures to seek economic participation or equity investment opportunities from First Nations.
• Disposition of net credit balances in deferral and variance accounts (DVAs) owed to customers will be returned over a shorter period of time:
• Transmission DVA – $22.5M over a one-year period in 2023 (versus five years)
• Distribution DVA – $85.9M over a three-year period – 2023-2025 (versus five years)
• Undertaking certain measures to continue examining cost-effective transmission and distribution line losses
• In the decision, the OEB acknowledged the efforts involved by parties to participate in this entire proceeding, including the settlement conference, considering the number of participants, the complexity of the issues, and the challenging logistics of a "virtual" proceeding. The OEB commended the parties and OEB staff for achieving a comprehensive settlement on all issues.

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TotalEnergies Africa Energy Strategy 2025 spotlights oil, gas, LNG, and renewables, with investments in Namibia, Congo, Mozambique, Uganda, Morocco, and South Africa, driving upstream growth, clean energy, and energy transition partnerships.

Key Points

An investment roadmap uniting oil, gas, LNG, and renewables to speed Africa's upstream growth and energy transition.

✅ Keynote by Mike Sangster at IAE Paris 2025.

✅ Oil, gas, LNG projects across Namibia, Congo, Mozambique, Uganda.

✅ Scaling renewables: solar, wind, green ammonia for export.

Mike Sangster, Senior Vice President for Africa at TotalEnergies, will play a pivotal role in the upcoming Invest in African Energy (IAE) Forum, which will take place in Paris on May 13-14, 2025. As a key figure in one of the world’s largest energy companies, Sangster's participation in the forum is expected to offer crucial insights into Africa’s evolving energy landscape, particularly in the areas of oil, gas, and renewable energy.

TotalEnergies' Role in Africa's Energy Landscape

TotalEnergies has long been a major player in Africa’s energy sector, driving development across both emerging and established markets. The company has a significant footprint in countries such as Namibia, the Republic of Congo, Libya, Mozambique, Uganda, and South Africa. TotalEnergies’ investments span both traditional oil and gas projects as well as renewable energy initiatives, reflecting its commitment to a more diversified energy future for Africa.

In Namibia, for instance, TotalEnergies is advancing its Venus-1 discovery, with plans to produce its first oil by the end of the decade. The company is also heavily involved in the Orange Basin exploration. Meanwhile, in the Republic of Congo, TotalEnergies is investing $600 million to enhance deepwater production at its Moho Nord field.

Beyond oil and gas, the company is expanding its renewable energy portfolio across the continent. This includes significant solar, wind, and hydropower projects, such as the 500 MW Sadada solar project in Libya, a 216 MW solar plant with battery storage in South Africa, and a 1 GW wind and solar project in Morocco designed to produce green ammonia for export.

The Invest in African Energy Forum

The IAE Forum, which TotalEnergies’ Sangster will headline, is an exclusive event aimed at facilitating investment between African energy markets and global investors, including discussions on COVID-19 funding for electricity access mechanisms that emerged, and their relevance to current capital flows. With a focus on fostering partnerships and discussions about the future of energy in Africa, the event will bring together industry experts, project developers, investors, and policymakers for two days of intensive engagement.

The forum will also serve as a crucial platform for sharing perspectives on the role of private investment, as outlined in the IEA investment outlook for Africa's power systems, in Africa’s energy future, strategies for unlocking new upstream opportunities, and the transition to a more sustainable energy system. This makes Sangster's participation, as someone directly involved in both conventional and renewable energy projects across the continent, particularly significant.

TotalEnergies' Diversified Strategy in Africa

Sangster’s keynote address and participation in an exclusive fireside chat will provide an in-depth look into TotalEnergies’ strategy for Africa. His insights will touch upon the company's ongoing projects in the oil and gas sectors, as well as its renewable energy investments. TotalEnergies has committed to making its portfolio more sustainable, underscored by its recent VSB acquisition to expand renewables capabilities, while continuing to be a leader in the energy transition.

One of the company’s notable projects is the Mozambique LNG initiative, a $20 billion venture aimed at supplying liquefied natural gas to international markets. Additionally, TotalEnergies is gearing up for the first oil from its Tilenga field in Uganda, which will be transported through the East African Crude Oil Pipeline (EACOP), the longest heated crude oil pipeline in the world.

In South Africa, TotalEnergies is constructing one of the largest renewable energy projects, a 216 MW solar power plant with integrated battery storage. This project is expected to significantly contribute to the country’s clean energy ambitions. Furthermore, in Morocco, TotalEnergies is developing a major wind and solar facility that will produce green ammonia, aligning with its broader strategy to provide solutions for Europe’s energy needs.

Africa’s Energy Transition

The forum’s timing could not be more critical, given the pressing need for an energy transition in Africa. While the continent remains heavily reliant on fossil fuels for its energy needs, there is growing momentum toward incorporating renewable energy sources, a point reinforced by the IRENA renewables report on decarbonisation and quality of life, which highlights the transformative potential. Africa’s vast natural resources, combined with global investments and partnerships, position the continent as a key player in the global shift toward sustainable energy.

However, Africa faces unique challenges in transitioning to renewable energy, reflecting a broader Sub-Saharan electricity challenge that also presents opportunity, across many markets. These challenges include a lack of infrastructure, financial constraints, and the need for increased political stability in certain regions. The IAE Forum provides an opportunity to address these barriers, with industry leaders like Sangster offering solutions based on real-world experiences and investments.

As the energy sector continues to evolve globally, and even if electricity systems are unlikely to go fully green this decade according to some outlooks, Africa's potential remains vast. The continent’s diverse energy resources, from oil and gas to renewables, offer a unique opportunity to build a more sustainable and resilient energy future. The Invest in African Energy Forum serves as an important platform for global stakeholders to collaborate, learn, and invest in the energy transformation taking place across the continent.

Mike Sangster’s insights at the forum will undoubtedly shape discussions on how companies like TotalEnergies are navigating the intersection of universal electricity access goals, sustainability, and economic growth in Africa. With Africa’s energy needs expected to increase exponentially in the coming decades, ensuring that these needs are met sustainably and equitably will be a priority for both policymakers and private investors.

As the global energy landscape continues to shift, the Invest in African Energy Forum provides a critical space for shaping the future of Africa’s energy sector, offering invaluable opportunities for investment, innovation, and collaboration.

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Ukraine Power Grid Restoration accelerates across liberated Kharkiv, restoring electricity, heat, and water amid missile and drone strikes, demining operations, blackouts, and winterization efforts, showcasing resilience, emergency repairs, and critical infrastructure recovery.

Key Points

Ukraine's rapid push to repair war-damaged grids, restore heat and water, and stabilize key services before winter.

✅ Priority repairs restore electricity and water in liberated Kharkiv.

✅ Crews de-mine lines and work under shelling, drones, and missiles.

✅ Winterization adds generators, mobile stoves, and large firewood supplies.

On the freshly liberated battlefields of northeast Ukraine, a pile of smashed glass windows outside one Soviet-era block of apartments attests to the violence of six months of Russian occupation, and of Ukraine’s sweeping recent military advances.

Indoors, in cramped apartments, residents lived in the dark for weeks on end.

Now, with a hard winter looming, they marvel at the speed and urgency with which Ukrainian officials have restored another key ingredient to their survival: electric power, a critical effort to keep the lights on this winter across communities.

Among those things governments strive to provide are security, opportunity, and minimal comfort. With winter approaching, and Russia targeting Ukraine’s infrastructure, add to that list heat and light, even as Russia hammers power plants nationwide. It’s requiring a concerted effort.

“Thank God it works! Electricity is civilization – it is everything,” says Antonina Krasnokutska, a retired medical worker, looking affectionately at the lightbulb that came on the day before, and now burns again in her tiny spotless kitchen.

“Without electricity there is no TV, no news, no clothes washing, no charging the phone,” says Ms. Krasnokutska, her gray hair pulled back and a small crucifix around her neck.

“Before, it was like living in the Stone Age,” says her grown son, Serhii Krasnokutskyi, who is more than a head taller. “As soon as it got dark, everyone would go to sleep.”

He shows a picture on his phone from a few days earlier, of a tangle of phone and computer charging cables – including his – plugged in at a local shop with a generator.

“We are very grateful for the people who repaired this electricity, even with shelling continuing,” he says. “They have a very complicated job.”

Indeed, although a lack of power might have been a novel inconvenience during the warm summer season, it increasingly has become a matter of great urgency for Ukrainian citizens and officials.

Coping through Ukraine’s winter with dignity and any degree of security will require courage and perseverance, as the severity and suffering that the season can bring here are being weaponized by Russia, as it seeks to compensate for a string of battlefield losses.

In recent days, Russian attacks have specifically targeted Ukraine’s electrical and other civilian infrastructure – all with the apparent aim of making this winter as hard as possible for Ukrainians, even as Moscow employs other measures to spread the hardship across Europe, while Ukraine helps Spain amid blackouts through grid support.

Ukrainian President Volodymyr Zelenskyy said Monday that Russian barrages across the country with missiles and Iran-supplied kamikaze drones had destroyed 30% of Ukraine’s power stations in the previous eight days, including strikes on western Ukraine that caused outages. Thousands of towns have been left without electricity.

Kharkiv’s challenges
Emblematic of the national challenge is the one facing officials in the northeast Kharkiv region, where Ukraine recaptured more than 3,000 square miles in a September counteroffensive. Ukrainian forces are still making gains on that front, as well as in the south toward Kherson, where Wednesday Russia started evacuating civilians from the first major city it occupied, after launching its three-pronged invasion last February.

Across the Kharkiv region, Ukrainians are stockpiling as much wood, fuel, and food as possible while they still can, and adopting new energy solutions as they prepare, from sources as diverse as the floorboards of destroyed schools and the pine forests in Izium, which are pockmarked with abandoned Russian trenches adjacent to a mass burial site.

“Of course, we have this race against time,” says Serhii Mahdysyuk, the Kharkiv regional director in charge of housing, services, fuel, and energy. “Unfortunately, we probably stand in front of the biggest challenge in Ukraine.”

That is not only because of the scale of liberated territory, he says, but also because the Kharkiv region shares a long border with Russia, as well as with the Russian-controlled areas of the eastern Donbas.

“It’s a great mixture of all threats, and we are sure that shelling and bombings will continue, but we are ready for this,” says Mr. Mahdysyuk. “We know our weak spots that Russia can destroy, but we are prepared for what to do in these situations.”

Ukraine’s battlefield gains have meant a surging need to pick up the pieces after Russian occupation, even as electricity reserves are holding if no new strikes occur, to ensure habitable conditions as more and more surviving residents require services, and as others return to scenes of devastation.

Restoring electricity is the top priority, amid shifting international assistance such as the end of U.S. grid support, because that often restarts running water, too, says Mr. Mahdysyuk. But before that, the area beneath broken power lines must be de-mined.

Indeed, members of an electricity team reconnecting cables on the outskirts of Balakliia – one of the first towns to see power restored, at the end of September – say they lost two fellow workers in the previous two weeks. One died after stepping on an anti-personnel mine, another when his vehicle hit an anti-tank device.

Ukrainian electricity workers restore power lines damaged during six months of Russian military occupation in Balakliia, Ukraine, Sept. 29, 2022. Ukrainians in liberated territory say the restoration of the electrical grid, and with it often the water supply, is a return to civilization.
“For now, our biggest problem is mines,” says the team leader, who gave the name Andrii. “It’s fine within the cities, but in the fields it’s a disaster because it’s very difficult to see them. There is a lot of [them] around here – it will take years and years to get rid of.”

Yet officials only have a few weeks to execute plans to provide for hundreds of thousands of residents in this region, in their various states of need and distress. Some 50 field kitchens capable of feeding 200 to 300 people each have been ordered. Another 1,000 mobile stoves are on their way.

And authorities will provide nearly 200,000 cubic yards of firewood for those who have no access to it, and may have no other means of keeping warm – or where shelling continues to disrupt repairs, says Mr. Mahdysyuk.

“The level of opportunity and resources we have is not the same as the level of destruction,” he says. People in districts and buildings too destroyed to have services restored soon, such as in Saltivka in Kharkiv city, may be moved.

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