Storm Bella swept through part of the United Kingdom on December 27 and then through northern and central France with wind gusts of up to 143 km/h in coastal areas. AFP
Storm Bella swept through part of the United Kingdom on December 27 and then through northern and central France with wind gusts of up to 143 km/h in coastal areas. AFP
Storm Bella swept through part of the United Kingdom on December 27 and then through northern and central France with wind gusts of up to 143 km/h in coastal areas. AFP
Storm Bella swept through part of the United Kingdom on December 27 and then through northern and central France with wind gusts of up to 143 km/h in coastal areas. AFP

Storm Bella helps power UK to renewables record


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Britain’s power generation industry is headed for its greenest year yet as more renewable capacity is added and coal plants are needed less often.

The carbon intensity – a measure of the environmental impact of generating electricity – has dropped 60 per cent in the UK in the six years to 2019 and is on track to reach another low this year, according to data from National Grid Plc.

The figures show the success of government efforts to pare back emissions and push coal plants off the grid, part of a broader plan to zero out net fossil-fuel pollution by the middle of the century.

With electricity demand set to double by 2050, politicians need to make sure there are enough clean sources of power to supply the grid as environmental rules tighten.

UK wind generation hit a record last week, a benchmark that’ll be bested again as the nation aims to triple its offshore wind capacity in the next nine years. In 2019, renewables generated 37 per cent of the country’s electricity.

For the first time ever, more than half of UK electricity came from the wind on December 26 as Storm Bella blew through the country, according to data from Drax PLC’s Electric Insights.

The surge in renewable power has happened at the same time that fossil fuels, coal in particular, have disappeared from the energy mix. This year saw the longest period without coal in power since the Industrial Revolution. The fuel will be totally off the power system by 2025 at the latest.

Carbon intensity is usually higher in winter when more generation from gas and nuclear is needed to meet heating demand. On November 26 renewables were 7 per cent of total generation, according to analysis by Hartree Solutions.

  • Water subsides at properties lining the River Great Ouse in Clapham, Bedfordshire, England. Getty Images
    Water subsides at properties lining the River Great Ouse in Clapham, Bedfordshire, England. Getty Images
  • A family look at high water from a bridge looking over the River Great Ouse in Pavenham, England. Getty Images
    A family look at high water from a bridge looking over the River Great Ouse in Pavenham, England. Getty Images
  • A family look at high water from a bridge looking over the River Great Ouse in Pavenham, England. Getty Images
    A family look at high water from a bridge looking over the River Great Ouse in Pavenham, England. Getty Images
  • A couple wearing Christmas hats look at high water from a bridge looking over the River Great Ouse towards the village of Harrold in Pavenham, England. Getty Images
    A couple wearing Christmas hats look at high water from a bridge looking over the River Great Ouse towards the village of Harrold in Pavenham, England. Getty Images
  • The River Great Ouse bursts its banks in Bedford, England. Getty Images
    The River Great Ouse bursts its banks in Bedford, England. Getty Images
  • The River Great Ouse bursts its banks in Bedford, England. Getty Images
    The River Great Ouse bursts its banks in Bedford, England. Getty Images
  • The River Great Ouse bursts its banks in Pavenham, England. Getty Images
    The River Great Ouse bursts its banks in Pavenham, England. Getty Images
  • Swans swim in the flood water of the River Severn in Worcester, England. AP
    Swans swim in the flood water of the River Severn in Worcester, England. AP
  • People take a dip at Barassie Beach in Troon, on the west coast of Scotland, as Storm Bella brings rain and high winds to the UK. AFP
    People take a dip at Barassie Beach in Troon, on the west coast of Scotland, as Storm Bella brings rain and high winds to the UK. AFP

“The reality is that the UK network is some years away from being able to provide economic solutions for 24/7 low carbon generation,” Hartree Partners said in a report. “Material carbon reductions from a change of fuel type or technology are not on the immediate horizon in the same way we have experienced over the last five years.”

Britain still gets about 40 per cent of its power from gas. Carbon capture technology will need to be deployed at to make the cleanest fossil fuel carbon neutral.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Founder: Omar Onsi

Launched: 2018

Employees: 35

Financing stage: Seed round ($12 million)

Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners

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