Energy Trader Mercuria Eyes 2GW of Renewables Projects With CWP
(Bloomberg) -- Power and gas trader Mercuria Energy Group Ltd. joined forces with CWP Global with a view to building 1.9 billion euros ($2.2 billion) of renewable energy projects.
The 50/50 joint venture with CWP Europe allows Mercuria to further its expansion in clean energy, after the Geneva-based firm pledged earlier this year to channel half of its investments into renewables by 2030. It joins rival commodity traders Vitol Group and Trafigura Group in broadening its focus as governments and consumers demand efforts to speed up the energy transition.
Mercuria and CWP plan as much as 2 gigawatts of projects including solar, wind and battery storage in southeast Europe, CWP Europe Chief Executive Officer Dimitar Enchev said in an interview. Mercuria will provide financing and energy trading expertise, with the proposed developments in Bulgaria, Romania, Serbia and Ukraine coming online over five years, replacing coal-fired power.
“In this brave new world of subsidy-free renewables, there is plenty of opportunity but also there is plenty of complexity,” Enchev said. “Our partnership with Mercuria is going to allow us to better manage that complexity.”
Australian renewables developer CWP has 760 megawatts of capacity and a further 2.5 gigawatts of wind, solar, and storage under development in a joint venture with another Swiss firm, Partners Group. None of its planned projects in Europe have begun construction but are expected to break ground next year.
Mercuria is a major trader not only of gas and power but also derivatives linked to raw materials. Backed by bank loans, it also offers structured finance deals to customers.
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