Statkraft Switches Off CCGTs in 2Q
Statkraft generated next to no gas-fired power in 2Q 2018, citing negative gas spark spreads as the reason.
The Norwegian firm said it generated "0.0 terawatt-hours" of gas-fired power in 2Q2018, compared with 0.3 TWh in 2Q2017; it generated 2.2 TWh of such power in full year 2018 and 0.4 TWh in 1Q2018.
The reason for its "limited" gas-fired power generation in 2Q2018 was the "mostly negative spark spreads"; the state-owned generator operates four combined cycle gas-fired power plants (CCGTs) in Germany and has interests in two other gas-fired plants, one in Germany and one in Norway. It noted that an increase in the German average power of €36/MWh in 2Q2018, up 6% year on year, was driven by higher coal, gas and CO2 prices. It also reaped a higher price from its UK wind assets for similar reasons.
Statkraft is principally a hydro-power generator. Its net profit fell sharply to kroner 271mn ($34mn) in 2Q, down 86% from Nkr 1,886mn in 2Q 2017, largely because dry weather in Scandinavia constrained its capacity to generate from its hydro-plants which generated 2.7 TWh less power year on year in 2Q. Of its 11.5 TWh total generation in 2Q 2018, 10.9 TWh was hydro, 0.6 TWh wind power, and 0.1 TWh ‘other’.