Montel Magazine 4 2021 - Nordic power spat - Page 11

Market talk

being produced from electrolysis . “ In the power sector , gas-fired power stations increasingly operate as peaking plants to support renewable output ,” National Grid said in its latest 10-year outlook . LW
Hydroption becomes 1st French supplier to go bankrupt French power supplier Hydroption has become the country ’ s first independent supplier to go bankrupt , amid spiralling energy prices . “ We fell victim to market prices at EUR 400 / MWh because , like many other small-scale independent suppliers , we lacked cash , [ in a situation in which ] the financial demands were enormous ,” said CEO Michel de Kerever , adding the firm ’ s small remaining portfolio had been transferred to back-up supplier EDF . Europe ’ s energy price crisis had seen gas and power skyrocket , which had led to numerous small suppliers going bankrupt , particularly in the UK . ST
Italian power system faces inadequacy risk by 2025 – TSO Italian TSO Terna said the country ’ s power system faced risks of “ inadequacy ” by 2025 due to a reduction of conventional generation capacity . There were concerns about whether the country would have enough available production capacity , including imports and storage , to sufficiently meet demand , it
added in its latest annual report . Italy held its last capacity market auction in 2019 – which would compensate producers for building new capacity – for 6 GW to be delivered by 2022-23 but it had been beset by delays with some facilities unable to secure approval before the deadline . The inadequacy risk was particularly marked due to the effect of decarbonisation and the country ’ s coal phase-out , said the TSO . ET
Largest floating wind farm ( 50 MW ) starts up off Scotland The “ world ’ s largest ” floating offshore wind farm ( 50 MW ) has started up near the Scottish coast . Kincardine – located 15km off Aberdeenshire – would generate more than 200 GWh of green electricity a year , enough to power more than 50,000 Scottish households , said developer Cobra Wind . “ The project proves that floating wind can play a vital role in tackling climate change not only in Scotland and the UK but also around the world ,” said project director Jaime Altolaguirre . OV
No quick fix for global gas supply crisis – Cedigaz The gas market will see “ no quick fix ” to undersupply this winter , which has driven prices to record highs in recent months , European gas lobby Cedigaz said in a report . “ The market should stay tight during the winter season
, before falling in 2022 with higher gas production ,” it said . That would depend on deliveries of additional supply , reductions in industrial demand and switching to alternative fuels . “ Norway , the US , and Russia are expected to deliver more gas to the global and European markets , although questions remain about how much more gas [ Russian exporter ] Gazprom would send to Europe until Nord Stream 2 is approved ,” the report said . A suspension of German regulator BNA ’ s certification process for the contested Russia- Germany Nord Stream 2 gas pipeline could see the procedure stretching until next autumn , analysts have said . LW
Nord Stream 2 may face delay until next autumn – think tank A suspension of German regulator BNA ’ s certification process for the contested Russia-Germany Nord Stream 2 gas pipeline could see the procedure stretching until next autumn , the Oxford Institute for Energy Studies said . Authors Katja Yafimava and Mike Fulwood said in a report that the decision had triggered an “ avalanche of questions ” about the potential impact on the certification process and the timing of the start of gas flows . “ It seems unrealistic to expect the final certification decision being issued before summer 2022 … and it cannot be ruled out that it will only be issued in autumn 2022 ,” they said .
The network operator had begun the certification procedure on 8 September and was then expected to issue a draft certification decision within a four-month period . But the suspension of the procedure means the timing has been “ put on hold ”. LW
Enel plans to exit gas generation by 2040 to meet net zero Italian utility Enel plans to exit gas-fired generation by 2040 , replacing its thermal fleet with new renewables capacity , bringing forward its net-zero emission commitments by 10 years . To achieve its decarbonisation and electrification goals , the utility was planning to invest EUR 210bn globally to 2030 – EUR 10bn more than announced in 2020 – to triple its green capacity to 154 GW by 2030 . ET
Spain industry eyes output cuts if gas hits EUR 100 – Mibgas Industrial production in Spain could face cuts if gas prices hit EUR 100 / MWh , said the country ’ s Mibgas exchange . If prices were to rise above this level “ for a certain period of time there will be a [ reduction in demand ]”, said the bourse ’ s president Raul Yunta . Currently “ demand is very strong , stronger than ever and for the electricity sector as well . So far we are not seeing significant demand destruction ”, he added . BB
Montel Magazine 4 – 2021
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