Montel Magazine 3 2022 - Pipeline sabotage 3 - Page 8

Market talk

EU “ past point of no return ” in ditching Russian gas – Icis Europe has passed the “ point of no return ” in exiting Russian gas , with flows from the region ’ s former main supplier unlikely to be accepted in the coming years , the head of gas analytics at Icis said . “ Whatever happens in Ukraine , whenever the situation in Ukraine finishes , [ Europe ] will not want to go back to having relations with Russia in terms of being dependent on its energy sources ,” said Tom Marzec-Manser . In 2021 , Russia exported 380mcm / day to Europe , according to International Energy Agency estimates but flows have dropped to just over 10 % of last year ’ s average . “ A lot of people out there , particularly in eastern Europe – who ’ ve been living in the shadow of Russia – have been screaming their heads off over the last two decades that this was always coming ,” Marzec-Manser said . LW
Europe on track for 15 % gas demand cut – Rystad Europe has already cut gas demand by 12 % in the first half of 2022 , compared with last year and is on track to achieve the EU-wide target of a 15 % reduction as soaring prices deter consumption , said Rystad analyst Nikoline Bromander . The reduction was mainly due to demand destruction in both the power and industrial sectors , she noted . Bromander said chemical and fertilizer industries had reduced demand the most due to the skyrocketing gas prices following a significant cut in Russian supplies in the wake of the country ’ s invasion of Ukraine .
Even though gas storage levels were healthy ahead of the winter , demand reduction was necessary in “ all scenarios ”, she addedy . AT
Fortum can ’ t rule out “ further pressure on liquidity ” – CEO European developers of renewable assets are struggling to meet “ voracious ” demand from corporates eager to lock in soaring electricity prices via power purchase agreements ( PPA ), platform provider LevelTen Energy said . Headwinds including supply chain , interconnection and regulatory delays were hindering progress at a time when some countries were seeking to accelerate the deployment of renewables following Russia ’ s invasion of Ukraine , LevelTen added in a report . “ PPA prices are sky high , reversing years of price declines at a time when procurements need to accelerate dramatically ,” said Flemming Sorensen , vice president for Europe at LevelTen . Italy , Germany and Spain were highlighted in the report as having “ onerous ” and lengthy permitting processes . In Spain , only around 20 % of more than 73 GW of solar projects had received environmental construction consent , according to industry data . CEW
Banks struggling to finance Nordic power companies – SEB Banks are struggling to finance Nordic power companies amid soaring collateral demands , Swedish bank SEB said . Recent market volatility had constrained the ability of the likes of SEB to contribute more capital due to the risks involved , added Jouni Jarviluoma , head of energy at SEB Finland . “ Clients who used to bring margins of tens of millions of euros , now brought hundreds of millions and the ones who used to brings hundreds of millions , brought billions ,” he said . “ We as a bank and a part of this whole system [ were also affected ] – if the clients brought a wheelbarrow ’ s worth of money , we had to forward a truckload of money .” CEW
Finland , Sweden face winter blackouts , TSOs warn Finland should get ready for power outages this winter , with the risk of controlled blackouts increasing due to reduced power supplies in southern Sweden , TSO Fingrid said . Power imports from southern Sweden had weakened due to an extended outage at nuclear reactor Ringhals 4 ( 1.1 GW ), said Fingrid in an update to its winter supply outlook . “ Simultaneous disruptions in power-producing units or interconnectors create challenges for ensuring enough power supply ,” it added . Meanwhile , Sweden itself faces an increased risk it would have to disconnect up to 2 % of supply in southern parts of the country to meet peak demand in the December-March period , said TSO Svenska Kraftnat . This meant the TSO could be forced to order some end-users to reduced demand , with the risk of a capacity shortage in southern Sweden going from “ low to real ”, Erik Ek , its head of strategic operations , said in a statement . Consumers could help avoid such a situation if they turned down thermostats and moved consumption to offpeak hours , he added . CEW , OV
Price spike reveals Baltic import dependence – experts A recent power price spike to EUR 4,000 / MWh in the Baltic region indicates that it is highly dependent on electricity imports and has a lack of flexibility in power consumption , experts told Montel . Volue attributed the extremely high prices to a tight supply-demand situation across the region , as wind power levels in Lithuania were operating at only 1 % of full capacity and some thermal power

EDF targets doubling of nuclear capacity by January – Levy

EDF is targeting a doubling of French nuclear capacity to 50 GW by early January , outgoing CEO Jean-Bernard Levy said . The state-owned French utility “ hoped ” atomic output would reach the level of a “ high ” scenario outlined earlier in a report by TSO RTE . “ Our aim is to have the same production this winter as last winter when there was no particular [ supply ] problem ,” the CEO said , though output across the whole of 2022 had been forecast at a record low 280-300 TWh by the firm . CE
Montel Magazine 3 – 2022