Montel Magazine 3 2022 - Pipeline sabotage 3 - Page 10

Market talk

plants were offline for maintenance . Imports from Sweden , Finland and Poland were also reduced by around 350 MW at the time of the price spike , according to Nord Pool figures . “ If there is one thing we can learn from this incident , it is that small restrictions on interconnectors can lead to critical situations and drive prices to the edge ,” Morten Pindstrup , director at Danish TSO Energinet told Montel . HM
Norway may curb power exports from new year – minister Norway will finalise a regulatory mechanism this autumn that could limit power exports from the new year , said energy minister Terje Aasland . The government was working with national energy agency NVE on defining how low hydropower reservoirs would have to be to trigger the restriction , he added . Aasland maintained curbing exports would not breach EU rules as it ensured domestic electricity supply , saying it was the same principle as the EU saving gas to fill up stocks . “ We would only do this in a situation where reservoir levels are very low … to ensure security of supply .” TFP
Denmark , Germany reach deal on 3 GW “ energy island ” Denmark and Germany have reached an agreement to connect the Danish energy island Bornholm , with an installed capacity of 3 GW , to the German mainland via an interconnector . The agreement to boost renewables was “ crucial for Europe ’ s energy independence from Russia ”, said climate and energy minister Dan Jorgensen . A broad political alliance in Denmark reached an agreement to boost green energy capacity at Bornholm from 2 GW to 3 GW . The countries expect the energy island to be operational by 2030 . HM
France needs power imports to avoid winter blackouts – TSO France would need rolling power cuts to avoid blackouts unless neighbours maintained power flows to the country this autumn and into winter , French TSO RTE said in a report . The risk remained that power flows across Europe would be limited due to cuts in supplies of gas from Russia , it added . October and November could be “ as risky ” in terms of power supply as January , said RTE president Xavier Piechaczyk . In its report on winter supply , RTE outlined three scenarios on how autumn and winter might play out . In a worst-case scenario , France would need to trigger emergency measures such as rolling power cuts and interrupting demand from energy-intensive industries . It would also use an alert to warn firms and households to cut power use at peak times . CE , MB
France to halve building times for renewables – Macron France is aiming to halve the time it takes to build wind and solar capacity , said president Emmanuel Macron . At present it takes twice as long to build wind and solar capacity compared to in other European countries , with building times for offshore wind averaging 12 years and those for solar averaging six years . At current rates , the country is likely to miss its targets to boost onshore wind capacity by 4 GW to 24.3 GW and solar by about 5 GW to 20.1 GW by the end of next year . Parliamentarians would examine a draft bill that would cut administrative and legal red tape and improve public acceptance of renewable projects , Macron said . MB
UK to address liquidity problems in energy market The UK government will launch a joint scheme with the Bank of England to address the “ extraordinary liquidity requirements ” faced by energy firms . The Treasury ’ s scheme would help companies operating in UK wholesale gas and electricity markets , it said . “[ The scheme would ] provide resilience to both energy and financial markets , and the economy , and reduce the eventual cost for businesses and consumers .” High and volatile prices had resulted in large amounts of collateral being required to enter contracts that firms use to insure themselves from price fluctuations , it added . “ Otherwise , firms must accept large credit exposures to their counterparties .” LW
“ Absolutely wrong to attack ETS ” – Timmermans The EU ETS system is working as it should do and therefore should not be targeted in any efforts to reform Europe ’ s energy markets , European Commission executive vice president Frans Timmermans said . Criticism of the system was “ mostly done by people who want to get rid of the ETS and they wanted to get rid of [ it ] from the very beginning ”, he added . Poland , for example , had previously called for a EUR 30 / t price cap on carbon prices . Carbon prices had constantly
Green transition need not be painful or costly – study
Completely replacing fossil fuels with clean energy by 2050 need not be “ painful ” and would in fact save trillions of dollars globally , an Oxford University study showed . “ There is a pervasive misconception that switching to clean , green energy will be painful , costly and mean sacrifices for us all – but that ’ s just wrong ,” said Doyne Farmer , of the Institute for New Economic Thinking at the Oxford Martin School . He pointed out that renewable energy costs have been trending down for decades and some technologies were already cheaper than fossil fuels . “ Our research shows that they will become cheaper than fossil fuels across almost all applications in the years to come and if we accelerate the transition , they will become cheaper faster .” LW
Montel Magazine 3 – 2022