Montel Magazine 3 - 2020 - Page 13

Market talk

Cez targets Finnish market for PPA expansion Czech utility Cez sees Finland as a major growth target for entering power purchase agreements ( PPAs ), as it aims to expand its presence in the Nordic region . The country had several large wind power projects in the pipeline and consumers willing to enter large deals , Paulius Gineitis , the group ’ s head of trading operations in the Baltic market , told Montel . “ Finnish consumers also have a lower risk profile for structuring fully commercial PPAs … as opposed to the Baltic countries … where customers use much less electricity and rarely want to lock for a longer period than 1-2 years ,” he added . OV
Fortum to present joint strategy with Uniper by year end Finnish utility Fortum will present a joint strategy with German subsidiary Uniper by the end of the year , said new CEO Markus Rauramo . He refused , however , to comment on possible business areas that might be deemed surplus to requirements when the company tried to create synergies . “ We will continue to reduce our coal-based production and pursue decarbonisation through growth in clean energy . At the same time , we will continue to provide security of supply through gas , which we will make clean over time ,” he said .. OV
Sweden , Norway agree to end Elcert scheme in 2035 Sweden and Norway will end the payment of renewables subsidies through their joint Elcert scheme in 2035 . The countries ’ energy ministers signed an agreement in Oslo formalising the plan which brings an end to the scheme 10 years earlier than previously planned . The Swedish government proposed a bill to end the scheme in 2035 last
month but an agreement with Norway was a condition of the change . The legislation is expected to be put to the Swedish parliament during the autumn . Power plants qualifying for Elcerts must be commissioned by the end of 2021 in order to receive support , with payment continuing for 15 years . RF
Alpiq to capitalise on green boom despite liquidity concerns Swiss utility Alpiq plans to expand in the Nordic renewables market despite the impact of Covid-19 , with this year ’ s power price crash no deterrent , though liquidity was a concern , said the firm ’ s head of Nordic origination . “ The most interesting thing right now is how digitalisation and the boom in renewables is moving the market more short term . Managing flexibility and short-term risk will be among the key issue we can help companies with ,” Matti Ahtosalo told Montel . OV
Alpiq expands Nordic presence with Helsinki office Swiss utility Alpiq has expanded its presence in the Nordic region by opening an office in Helsinki and hiring additional staff in Oslo . “ Alpiq is significantly expanding its presence and its origination expertise in these countries [ and Sweden ] in light of the rapid rise in the production of power from new renewable energies ,” it said . CD , OV
1.4 GW North Connect link can be privately owned – Norway The planned 1.4 GW North Connect power cable between Norway and Scotland will be exempt from new legislation requiring all Norwegian cross-border interconnectors to be owned by state-owned TSO Statnett , according to a draft proposal from the government . The energy ministry said in the draft proposal
that the new rules would only apply to projects that had applied for a licence after 1 January 2020 . North Connect , formed by Utilities Lyse , Agder Energi , Hafslund Eco and Vattenfall , applied in 2017 and will therefore be exempt from the new requirement . GOM
Oil demand may never fully recover from Covid-19 – BP Global oil demand may never fully recover from the drop in demand caused by the Covid-19 pandemic under two of three possible outlook scenarios , energy firm BP said . All scenarios saw the global appetite for oil erode over the next 30 years – by 10 %, 55 % or 80 % – with the levels of decline largely dependent on the efficiency and growth of electric road transportation . But the pandemic ’ s impact on oil demand was also a key driver , potentially reducing demand 3m bbl / day by 2025 due to the weaker economic environment and various behavioural changes . “ Many of these behavioural changes [ such as travelling less and avoiding public transport ] are likely to dissipate over time as the pandemic is brought under control … but some changes , such as increased working from home , may persist ,” it said . LW
La Nina return set to threaten coal output , exports The likely return of a La Nina weather pattern this year may hinder coal production and exports over the winter , exacerbating existing supply risks and potentially leading to higher European prices . Australia ’ s bureau of meteorology said key indicators were at , or approaching , La Nina thresholds . The event is generally associated with abovenormal
rainfall in affected areas , including Australia , Indonesia and Colombia – all important coal producers . The US National Oceanic and Atmospheric Administration forecast around a 75 % chance of the weather pattern ’ s returnt . LW
Chinese price reforms may slash gas demand – WoodMac China ’ s surging gas demand of recent years , a major source of support for the global LNG trade , could slow sharply due to new government price rules . Consultancy Wood Mackenzie estimated 8bcm / year of incremental Chinese gas demand may fail to materialise in coming years due to reforms that have slashed gasfired power generation profitability . New gas-fired power tariffs in four key coastal regions put at risk the development of around 7 GW of new power plant capacity . “ Most projects are now lossmaking or barely breaking even ,” said WoodMac consultant Frank Yu . China has rapidly become the world ’ s largest gas importer and second-biggest customer of LNG in its quest to improve air quality by displacing coal for heating and industry . NW
German BNA to fine 3 trading houses for manipulation Germany ’ s BNA is planning to fine three trading houses over accusations of market manipulation . The regulator said it evaluated more than 100m pieces of data concerning trading and balancing during three days in June 2019 . “ There are indications in 21 trading situations that false or misleading signals regarding the supply of electricity were sent by sales bids ,” a BNA statement said . CD
Montel Magazine 3 – 2020