RES auctions postponed throughout Europe

Governments throughout Europe are postponing RES auctions as a result of the coronavirus pandemic’s impact on markets.

Germany, France and Ireland have already taken steps back to protect new RES projects, currently at various development stages, according to a Green Tech Media report.

Germany had planned seven RES auctions for this year. The country has so far offered 400 MW for solar energy projects and 675 MW for wind farms, while a further 2.9 GW for onshore wind farms and 1.4 GW for solar energy facilities remain pending. Strong investment interest had been expressed prior to the postponements.

In France, a RES auction for solar energy projects has been postponed by two months. In Ireland, a session that had been planned for April 2 has now been rescheduled for April 30. Portugal has also postponed a RES auction offering 700 MW for solar energy projects.

On the contrary, Dutch authorities intend to press ahead with a RES auction at the end of this month, offering 700 MW for wind farms. Swedish multinational power company Vattenfall’s Dutch subsidiary has announced it will not participate.

 

 

 

Local retail electricity prices register EU’s 4th biggest dip

Retail electricity prices in Greece registered the EU’s fourth largest reduction in the first half of 2019, compared to the equivalent period a year earlier, falling by 1.3 percent, latest Eurostat data has shown, primarily as a result of more aggressive discount policies by independent suppliers for households and enterprises.

Denmark was ranked first with a 4.3 percent price fall, followed by Portugal with a 4.1 percent drop, and Poland, where retail electricity prices slid 3.1 percent.

The average EU price rose by one cent. The Netherlands posted the biggest price increase, averaging 20.3 percent. Cyprus followed with a 16.4 percent increase, Lithuania was next on the list with an average price hike of 14.4 percent and the Czech Republic was fourth with a 12 percent price increase.

Retail electricity prices in the Greek market are among the EU-28’s lowest, the Eurostat data showed. Greece was ranked 18th in this category with an average tariff price per KWh of 0.16 euro. Germany is the most expensive with an average tariff price per KWh of 0.30 euro. The EU average is 0.21 euro and the Eurozone average 0.22 euro, according to the Eurostat data.

Despite the more aggressive pricing policies of independent suppliers in Greece, power utility PPC maintained its dominant position with a retail market share ranging between 77 and 80 percent during the first half. PPC not only avoided dropping its prices but reduced a punctuality discount offered to customers paying their electricity bills on time.

Electricity prices in Greece and other EU member states could have been lower if it were not for the considerably sized surcharges and taxes added to electricity bills, Eurostat noted. Over one-third of total electricity costs go to state coffers and electricity transmission and distribution network operators, Eurostat added.

Engie, Terna, Energean join for underground gas storage facility

Three major firms, each specializing in its own respective field, have formed a consortium to seek a contract to develop and operate a depleted natural gas field in northern’s Greece’s offshore South Kavala region as an underground gas storage facility, energypress sources have informed.

Storengy, belonging to France’s Engie group, Energean Oil & Gas, holder of a license for the South Kavala field, and technical firm Gek Terna are the three players joining forces for this contract, to be offered through a tender being prepared by the privatization fund TAIPED.

Greece remains the only country European country without an underground gas storage facility. All others maintain storage facilities covering over 20 percent of their annual natural gas consumption needs. At present, many countries in Europe are planning to develop additional such projects over the next five years.

Underground gas storage facilities play a key role in subduing carbon emissions as a result of the flexibility they offer to renewable energy sources.

Consortium member Storengy is Europe’s biggest developer and operator of underground gas storage facilities. It currently operates 21 such facilities of all types on the continent.

Offering a capacity of between 360 and 720 million cubic meters, or 10 percent of annual natural gas consumption in Greece, the South Kavala underground gas storage facility will require an investment of between 300 and 400 million euros to develop. The project has been granted PCI status by the European Commission, enabling EU funding support.

 

US reacts to Russian LNG in Boston, European shale battle rising

The delivery of Russian LNG to freezing Boston, a psychological blow for US authorities, has prompted American officials to highlight the country’s major shale gas and oil production prospects for 2018.

Pundits noted that Washington is finding it increasingly difficult to remind European countries such as the UK, Portugal and France, which have already purchased Russian LNG from the Yamal station in northern Siberia, that they cannot only use ecomomic criteria in their dealings with Russsia and, as a result, breach sanctions imposed on the country.

Walter Peeraer, president of TAP, the Trans Adriatic Pipeline project, whose development is now approaching completion, intervened by stressing the pipeline’s plans do not entail transmitting Gazprom gas, despite an interest expressed by the Russian giant to do so.

In preceding remarks, French and Dutch officials noted that incoming Russian LNG is not being used in their countries but, instead, was reloaded on tankers to be sold to other markets offering greater profit. These destinations were not specified.

According to Bloomberg, it is not certain whether the aforementioned Russian LNG shipment to Boston represents the order’s final destination. The order was shipped from the UK by French firm Engie.

Responding to this delivery, the US International Information Adminstration, which has spearheaded the wider American reaction, declared that US oil production is expected to reach an average of 10.3 million barrels per day in 2018, a 970,000 bpd increase compared to 2017. Such a performance would easily surpass the previous US record of 9.6 million bpd, set in 1970 under the Nixon administration. American shale oil production is expected to reach 11 million bpd in 2019.

The major US oil production level forecast for 2018 promises to undermine efforts by OPEC and Russia to reduce oil production by 1.8 million bpd in an effort to boost prices levels.

Last night, the price of Brent crude reached 69.24 dollars a barrel in New York, its highest level since 2014.

The International Information Adminstration believes Brent prices, which averaged 54 dollars a barrel in 2017, will reach an average of 60 dollars a barrel in 2018 and 61 dollars a barrel in 2019.

Though American shale oil and gas prospects appear rosy, the cross-Atlantic prospects in the UK are far less promising. Efforts made by petroleum firms to convince the UK government and public of the need to exploit shale gas deposits, which could offer energy supply to Great Britain for the next 25 years, continue to face major obstacles.

The Scottish government has already banned fracking as a means of extracting shale gas while the UK public’s environmental concerns are particularly acute.

Ineos, the petrochemicals group headed by Jim Ratcliffe, is preparing to file a legal case against the Scottish government for abuse of ministerial power. Further south, in central England, companies such as Cuadriilla, Third Energy and IGas Energy, are preparing to launch campaigns in 2018 with the aim of convincing the UK public that shale gas extraction is not environmentally hazardous.

All eyes on French energy system as Europe braces for colder weather

Europe’s energy sector enters a crucial period today and for the next few days as a result of the cold winter weather that has been forecast combined with maintenance and operational issues troubling France’s nuclear power facilities, which could lead to energy supply shortages.

Temperatures in Greece and other parts of Europe are forecast to drop by as much as 10 degrees Celsius this week, which will sharply increase energy demand for heating.

Weather conditions are not expected to be as extreme as they were last winter. Authorities have assured necessary measures have already been taken to a large degree.

Even so, the ongoing situation in France is worrisome. Throughout 2017, the country’s output at nuclear power stations has registered the lowest levels since the millennium. Nuclear power station capacity in France yesterday managed to climb to a level of 52 gigawatts.

As reported by Platts, the French power utility EDF has declared five units will resume production this week but, even so, was forced, once again, to reduce its output forecasts as a result of delayed returns to the grid of units undergoing maintenance work.

EDF’s nuclear power stations have generated electricity at an average level of 50 gigawatts this month, while, for the fourth quarter, output has fallen 14 gigawatts short of forecasts, a quantity equivalent to 28 LNG shipments.

Given the magnitude of France’s electricity production, as well as last year’s domino effect of energy shortages experienced by a series of European countries, stemming from problems at French nuclear power stations, all eyes are now on France.