Montel Magazine 1 2022 - Uproar over green investm Montel Magazine 1 2022 - Uproar over green investm - Page 8

Swedish power use may rise 15 % by 2026 – TSO

Market talk

Low stocks to underpin gas prices this year – Cedigaz Gas prices will likely soften over the coming year as increased supply enters the market but persisting low stocks and growing demand will keep them at relatively high levels , European gas lobby Cedigaz said . “ Expectations for increased US LNG supplies , the existence of healthy Asian LNG storage , robust and flexible Norwegian gas deliveries and higher than expected production in the Netherlands contribute to a backwardation structure of the futures [ market ],” it said in a report . But Cedigaz noted the forward curve was still at “ very high levels ”, from a historical viewpoint . “ Historically low European stocks are a major factor of tensions in the market and may result in [ extremely ] low levels of stocks … at the end of winter ,” it said . “ This situation contributes to a significant bullish effect on 2022 gas prices in Europe because of the expected increased demand for storage injections between April and October , in anticipation of the winter [ demand ].” LW
European PPAs signed in 2021 jump 69 % to 6.1 GW The amount of European corporate power purchase agreements signed in 2021 surged 69 % from a year earlier to 6.1 GW , the eighth-straight record annual increase , according to RE-Source renewable energy platform . That compared with 3.6 GW signed in 2020 , 2.7 GW in 2019 and 2.1 GW in 2018 . Spain was by far the largest European market , with 36 % ( 2.2 GW ) of the total volume . It was followed by Germany with 13 % ( 0.8 GW ), the Netherlands with 10 % ( 0.6 GW ) and the UK with 9 % ( 0.5 GW ). ET
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Shipyards fully booked to 2025 on LNG demand – shipbroker Shipyards are fully booked until 2025 as vessel owners rush to take advantage of growing LNG demand , the world ’ s largest independent shipbroker , Simpson Spence Young ( SSY ), said . “ From 2024 onward , the LNG market will see a serious uptick in LNG production coming online ,” said SSY ’ s head of LNG , Toby Dunipace . “ As a result , [ vessel ] owners in the last six months have moved aggressively with the yards in South Korea to book slots and to try and secure competitive prices .” In response , he said new-build vessel prices in July-December had increased to more than USD 10m for a single unit . “[ But ] the issue is not only price ,” he said . “ Due to LNG markets being so strong , as well as very healthy container shipping orders , yard slots are now fully booked until 2025 .” This added further supportive sentiment to the vessel chartering market , while it raised questions about whether there would be sufficient shipping capacity to satisfy the expanding LNG market in the nearer term , he said . LW
Nordic financial power volumes to drop 23-year low in 2021 Nordic financial power volumes traded and cleared on the Nasdaq Commodities exchange slumped to their lowest point since 1998 last year , falling 14 % to 801.9 TWh . Trades conducted directly on the exchange slid from 506.2 TWh in 2020 to 440.7 TWh last year , amid a very volatile autumn with record high prices , said the exchange . The volume of cleared OTC trades dived 15.2 % over the period to 361.2 TWh . In December , Nasdaq saw order book trades in the Nordic market of 29.4 TWh , a steep decline from 50.5 TWh in December 2020 . In 1998 , 497.6 TWh was cleared and traded on the exchange , while a 21-year low of 814.2 TWh was hit in 2019 . GOW
Finland to start offshore wind auctions by 2024 The Finnish government plans to start auctioning state-owned sea areas to offshore wind developers during 2023-24 but companies should not expect any subsidies . Winners of upcoming tenders would have to pay the state a land lease rent for the duration of the development and the lifespan of the farm , typically 40-50 years , it said . Finland has yet to see any major offshore wind developments but the ministry expected that technological advancements would make offshore wind more economically attractive going forward , even without any financial support . CEW
Obstacles remain to Swedish nuclear investments – experts The political and economic risks of investing in conventional nuclear power capacity in Sweden are currently perceived as being too high , though small-scale reactors ( SMRs ) could become viable if regulation changes , experts told Montel . Their comments came in the wake of calls by several political parties for more nuclear power with electricity prices having hit record levels well above EUR 100 / MWh in the south of the country this winter inflated by the high cost of imports . However , Carl Berglof , nuclear power expert at the Swedish Energy Association said it was impossible to make “ firm conclusions on a limited period of very high prices ”. “ Investments in nuclear plants need long-term profitability , maybe for 80 years ,” he added . “ Going forward , we may also see long periods of very low prices because of all the new renewable capacity coming online .” Nevertheless , German utility Uniper announced plans in December to invest in a pilot SMR at existing nuclear site Oskarshamn later this decade . AT
German power set to continue bull run this year – analysts Strong European gas and carbon prices should drive Germany ’ s front-year power contract above

Swedish power use may rise 15 % by 2026 – TSO

Sweden ’ s annual power consumption could rise by 15 % from 2022 to 2026 as power-intensive industry boosts demand , TSO Svenska Kraftnat said . It estimated power use would be 142 TWh this year and rise to 157 GWh in 2026 . However , if lead times for building new power lines were cut , enabling more industry to connect to the grid , the 2026 figure could reach 163 TWh , it said in its annual short-term forecast . Among those industrial companies planning to open in primarily northern Sweden are steel producer H2 Green Steel and steel venture Hybrit , which both hope to use hydrogen to manufacture “ carbon-free ” steel , while battery manufacturer Northvolt plans to expand its recently opened operations . The TSO said it also expected existing industrial demand to recover from the pandemic . WZ
Montel Magazine 1 – 2022