Greenvolt’s CEO, João Manso Neto, assumes that the new legislation, which guarantees tariffs for new biomass plants, makes the construction of up to two new biomass plants attractive in Greenvolt’s eyes.
“We are going to make the necessary efforts to present a project” for new biomass plants, indicated Manso Neto, at the presentation of the Greenvolt brand redesign, this Thursday, in Lisbon. On the same occasion, he mentioned that the company would consider building “one or two more plants”.
The recent decree-law provides a remuneration for plants that contributes to fighting fires, indicated Manso Neto. “I’m not going to say we win, but we have clear ideas of where there can be biomass plants: always close to areas where there is a lot of biomass, such as the Algarve mountains or the north of the country. These are interesting zones,” he considered.
Without this legislation, the construction of new plants would be “impossible”, says the leader of Greenvolt, because the market price is lower than the marginal costs. “Why do you deserve a fee? There is a social effect here, of fighting fires that has to be remunerated”, he defends.
Asked if there is enough raw material, João Manso Neto says he believes so, although “in small quantities and in localized areas”.
Limits on Renewables Earnings Do Not Affect Greenvolt
After the CEO of EDP admitted that a new tax on renewable energy producers in Romania could have a triple-digit impact for the company, Manso Neto indicates that Greenvolt is safe from these impacts. He considers the legislative proposal being discussed in Romania to be “poorly made” insofar as it takes into account the coverage (hedging) and, “if the law goes ahead like this, [the electric company] will have to pay the difference between the price spot that he did not receive and the maximum price”, he explains.
With regard to the ceiling of 180 euros per megawatt-hour that the European Commission has defined, it also does not affect Greenvolt “at all” in the European Union, as it only has power stations operating with a tariff. In England, however, there may be some impact, depending on the decision the country takes. “When we did the project we were expecting a market price of £40. So if there is a tax or a cap [ceiling] far above 40 pounds, I always feel better. I’d rather there not be, but if there is, is it unfair? Not. This is not just the economy, one has to be sensible. In England I don’t know what they’re going to wear but I’m not worried”, he concludes.
At the same time, the supply of materials seems to be balanced, with no noticeable disruptions resulting from the pandemic. There are “a few bad lucks but it’s not dramatic. More worrying is the issue of labor”, he accuses. To circumvent this effect, the company has signed medium-term contracts with some installers.
Licensing simplification “helps but not enough”
The new rules that simplify the licensing of renewable projects, presented a few months ago, “help, but it is not enough. The laws are well made, then on the ground is that organisms sometimes do not have the necessary human resources”, he pointed out.
