IOCs see opportunity in utility fragmentation in Nigeria, Europe

International oil companies (IOCs) returning to the utility business has been a clear trend over several years, with the European headquartered majors at the forefront.

Shell’s installed generating capacity in North America is now above 10GW, of which one-third is from renewable sources, and it has also invested in Dutch offshore wind.

In the UK, its acquisition of supplier First Utility sees it supplying 100pc renewable power, as well as gas and energy services, to domestic consumers, while, through MP2 Energy, it has also entered the US supply market. Shell has also bought into the US and Asian solar, while it has made three investments in electric vehicle (EV) charging firms and

In Nigeria, Shell has contributed in small measure towards ensuring that the country enjoys a steady power supply with  the  establishment of the 650 megawatts Afam VI power plant   which  contributes about 13 percent o the nation’s grid-connected electricity.

Aside from this, it has also been  very active  in the areas  of renewable by providing  capitals  for start-ups  to install     solar powers with the aim of boosting  the social-economic growth of the indigenes  of Niger Delta through  the introduction of All On partnerships for energy access.

All On invest in off-grid energy solutions spanning Solar, wind, hydro, biomass and gas technologies  deployed by both foreign and local access to energy companies that compliment available grid power across  the country and help bridge the significant energy gap.

Also in Nigeria, Eni, the Italian oil giant is very much into power generations as it has almost upgraded the 450 megawatts Okpai Power plant to 1000megawatts in the next few weeks.

Total oil company has also launched solar-powered service station. Built-in line with its commitment to better energy ambition, it is the first of its kind in West Africa.

Meanwhile institutional investors are increasingly being required to factor climate change into their decision-making

UK pension schemes have for a couple of decades spoken about taking environmental, social and governance (ESG) factors into consideration in their investment decisions—and then largely proceeded to invest regardless.

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