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Shell plans for green portfolio
1 October 1998
The Danish division of oil giant Shell is not only looking to become an electricity supplier on the newly liberalised market in Denmark, it is also intending to include environmentally friendly fuel sources in its power supply portfolio, reports national newspaper Jyllands Posten. Danish Shell is currently one of just six companies in Denmark consuming more than 100 gigawatt hours a year. These companies are already allowed to buy electricity from abroad, selling any surplus to third party customers in Denmark. Shell has now gone one step further in a deal with ScanEnergi A/S, a grouping of ten local electricity suppliers in western Denmark. For the remainder of the year, ScanEnergi is buying 5% of its power directly from Nord Pool, the Swedish and Norwegian electricity exchange, but Shell is taking the market risk. While ScanEnergi buys from Nord Pool at a set low price, Shell is shouldering the associated risk of an unexpected price rise on the exchange. But if the price continues to fall because of the reserves of hydro built up in Norway and Sweden following this year's wet summer there, Shell stands to score extra profits. The deal is the first of its kind in Denmark, reports Jyllands Posten, and has resulted in slightly lower electricity prices for ScanEnergi consumers.
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