Utilities Beyond Fossil Fuels

While governments are creating the regulatory environment necessary to achieve these objectives, this is not the only solution. The private sector must also accept responsibility and take affirmative action to adapt its objectives, behaviours and impact.

Ember’s report published today examines ENGIE’s global strategy to transition from coal-fired power generation and assesses the associated limitations and risks.

ENGIE is a France-based global energy company that employs 170,000 people globally and is the world’s largest independent electricity producer.  It has approximately 100GW of installed electricity generation capacity. ENGIE announced in 2016 that it would stop producing electricity from coal.  At that time, coal accounted for 15% of its electricity mix compared to around 4% today.  Fossil gas is its primary electricity fuel source at 54%.

ENGIE’s strategic reports, submissions and announcements have been analysed in the context of their regulatory, economic and climate risks and impact.

• ENGIE announced in 2016 that it would stop producing electricity from coal, however it still does not have confirmed shutdown dates for 70% of its remaining coal-fired power fleet.
• ENGIE’s goal is to have renewables providing 58% of its total power generation by 2030.
• ENGIE intends to convert coal-fired plants to fossil gas and biomass as a key component of its global electricity transition.
• ENGIE may source shale gas with high levels of methane emissions for its fossil gas plants.
• ENGIE’s Science Based Target initiative (SBTi) accreditation is for 2°C. This is not aligned with the Paris Agreement objective of well below 2°C and, in October 2019, the SBTi stopped accepting target submissions for 2°C.
• Our assessment of the current outlook for climate policy, investor preferences and the cost of renewable electricity alternatives, such as wind and solar, identifies key risks in ENGIE’s transition strategy.