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EU needs future power grids task force: Ember

  • Market: Electricity
  • 18/09/24

The EU must put in place a future grid task force to bring together scattered legislation and directives, so the bloc can better implement its power grid roadmap and integrate renewable capacity, according to UK-based think-tank Ember.

Integrating intermittent renewables into the power grid adequately will require substantial upgrades to the power network across the continent. This is a political priority for the EU but responsibility is shared across a number of European governmental bodies, Ember said. Most of the 80 action points laid out in EU policy and legislation are the European Commission's responsibility, but some objectives are overseen by EU distribution system body DSO Entity, European grid operators association Entso-E, energy regulators' agency Acer, the EU's High-Level Forum on European Standardisation, and individual member states.

The policy framework is a "positive step", Ember said. But significant grid work and modernisation are needed, which would be best met through a single body that can ensure "timely and effective" delivery, according to Ember. A dedicated task force would centralise policy support and monitoring through a single channel, provide access to financing from the European Investment Bank and European Bank for Reconstruction and Development, and develop a clear roadmap for all actions that are currently in the commission's remit. The need for a roadmap is significant as several of the commission's targets do not have scheduled completion dates, Ember said.

The EU must centralise funding access for member states and grid operators to ensure stakeholders can use as much of the funding available to them as possible, according to Ember. Funding is currently underutilised and spread across several financial instruments. In addition to uniting these instruments, the access mechanisms should be streamlined and administrative burdens reduced so that stakeholders of varying sizes can utilise these funds.

The EU should provide targeted funding for pilot projects on grid digitalisation, and then create a "technical toolbox" to support the digitalisation of distribution grids. The toolbox would detail best practice approaches, standardisation guidelines and interoperability technologies to ease digitalising the power network. These innovative grid technologies (IGTs) or grid-enhancing technologies (GETs) use existing infrastructure to improve renewable integration while reducing overall investment needs. IGT and GET technologies could improve renewable integration with costly network upgrades by as much as 40pc, according to a study by Latvian grid operator AST.


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09/07/25

Market eyes grid balance as Europe tests granular GOOs

Market eyes grid balance as Europe tests granular GOOs

London, 9 July (Argus) — Irish and Danish electricity suppliers have recently tested the use of granular guarantees of origin (GOOs), matching production and consumption on an hourly basis. But as concerns about grid balance remain among participants in the wider European GOO market, a gradual approach might be key. Software provider Granular Energy this week announced the results of a pilot with Irish suppliers Electric Ireland, Flogas and SSE Airtricity and GOO registry provider Grexel — part of EEX group. This aimed to test a "hybrid system", in which hourly matched GOOs are used alongside less granular certificates. Participating suppliers received hourly GOOs for output from selected renewables assets, and cancelled them on behalf of users for their April 2025 consumption. Granular Energy acted as the issuing body, while Grexel provided a "sandbox version" of the national GOO registry, enabling the coexistence of certificates at different levels of granularity. One of the key findings of the study was that "allowing a phased, opt-in rollout" can help reduce overall data volumes and preserve compatibility with the rest of the Association of Issuing Bodies (AIB) hub, according to Granular Energy. "This kind of optionality creates a clear path for Ireland and EU member states to gradually transition to hourly systems independent of an EU-wide overhaul," Granular Energy co-founder and chief operating officer Bruno Menu said. The pilot follows a late-2024 report by the Sustainable Energy Authority of Ireland that recommended an upgrade of the national GOO system to enhance emissions reporting for "large energy users", such as data centres. Grexel has recently been awarded funds to help interested GOO issuing bodies develop hourly tracking infrastructure. Meanwhile, Danish electricity supplier Reel also recently completed a pilot with Granular Energy and national transmission system operator Energinet, with the results announced at the end of June. As part of this, five Danish companies matched their electricity consumption to GOOs on an hourly, weekly and monthly basis. Wider push The 24/7 Carbon-Free Coalition — part of international non-profit Climate Group — in June released its first technical criteria for companies claiming to use carbon-free electricity (CFE) globally, recommending the use of hourly matching for all claims based on certificates. In addition to that, standard-setting group Greenhouse Gas Protocol has been conducting a review of its reporting standards. Based on initial feedback , the technical group working on scope 2 emissions — covering indirect emissions from purchased energy — is updating inventory rules with greater granularity, with a public consultation to be launched later this year. A fine balance Some GOO market participants are concerned about 24/7 CFE matching creating a new system of incentives that could ignore the needs of the wider electricity network, where consumption and production must be balanced at all times. In a 24/7 CFE system, players could make decisions based on their contracted renewable assets, rather than respond to real-time signals from the grid, independent originator Axel Baudson told Argus . For example, power oversupply "on a beautiful sunny afternoon" — when renewables production is high — could increase if renewables generators are contractually obliged to deliver hourly matched certificates, he explained. For this reason, granular matching should be expanded "with a perspective of dynamic grid balancing", Baudson said. These "suboptimal" scenarios are minimised "once a larger pool of consumers and producers is involved", Granular Energy's Menu told Argus in response, explaining that the ultimate aim is to move from individual corporate strategies for procuring granular GOOs to "a broader optimisation at the country level". This creates price signals and drives better alignment with the needs of the grid, he added. Under the annual disclosure regime — the most common across European countries — consumption can be matched to output at any point during the disclosure year to reach zero emissions. This is often not possible when first moving to hourly disclosure, Menu explained, because of the reality of physical power flows during the day. This, in turn, creates more incentives to decarbonise the wider grid and invest in storage capacity. Annually (mis)matched Even within the current annual system, disclosure rules and certificates' expiry periods differ across European countries . Some national registries allow GOO cancellations for 12 months from the energy production, while others extend this to 18 months. A harmonised framework for annual disclosure should be the priority, several GOO traders told Argus , before gradually adopting more specific timeframes, such as quarterly and monthly. France has the most granular disclosure system in the AIB hub, requiring monthly matching, with certificates typically commanding a premium to Europe-wide contracts. Current-year French GOOs from solar, wind and hydropower traded at an average of €0.93/MWh at the end of June, above average Argus assessments of €0.74/MWh for 2025 European wind and solar and Nordic hydro GOOs. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s 75MW Sodegaura biomass power plant starts up


09/07/25
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09/07/25

Japan’s 75MW Sodegaura biomass power plant starts up

Tokyo, 9 July (Argus) — The 75MW Sodegaura biomass-fired power plant started commercial operations on 8 July, after it was delayed from coming on line because of a silo fire in January 2023. The plant in eastern Japan's Chiba prefecture is operated by Japanese gas company Osaka Gas' subsidiary Daigas Gas and Power Solution, and burns around 300,000 t/yr of wood pellets, mainly imported from southeast Asia. It is designed to generate up to 520GWh/yr of electricity, which will be sold under Japan's feed-in-tariff (FiT) scheme at ¥24/kWh (16¢/kWh). The plant was previously scheduled to come on line in February 2023, but the start-up was delayed by a fire in January that year . The fire happened during test runs at the plant, and the cause was likely the self-heating of wood pellets stored for more than six months in two silos. Osaka Gas only managed to put the fire out completely in May 2023, and finished removing all remaining wood pellets from the silos in April 2024, as the pellets had absorbed sprayed water and swelled. The company has put in place safety measures after the incident. Osaka Gas also operates the 75MW Hirohata biomass-fired power plant in Japan. The company also plans to start commercial operations at the 50MW Gobo plant in September this year. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Heatwave eats into Japanese utilities’ LNG stocks


09/07/25
News
09/07/25

Heatwave eats into Japanese utilities’ LNG stocks

Osaka, 9 July (Argus) — LNG inventories at Japan's main power utilities fell for the second consecutive week during the week to 6 July, as hotter than normal weather boosted electricity demand for cooling and increased gas-fired generation. The utilities held 2mn t of LNG inventories on 6 July, down by 7pc from a week earlier and by 12pc from the recent high of 2.27mn t on 22 June, according to a weekly survey by the trade and industry ministry Meti. But the latest volume was almost in line with the 1.99mn t recorded for 7 July 2024. A large part of Japan has experienced unusually hot weather since the middle of June, with the country's environment ministry, together with the Japan Meteorological Agency, occasionally issuing heatstroke alerts. This boosted the country's power demand to an average of 113GW during the 30 June-6 July period, up by 10pc on the week and by 7pc from a year earlier, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). Firm electricity demand encouraged power producers to raise gas-fired output by 9.1pc on the week to an average of 36GW during the week to 6 July, the Occto data showed. Coal- and oil-fired generation also rose by 22pc to 31GW and 49pc to 1GW, respectively. Generation economics for Japan's gas-fired power plants improved with higher wholesale electricity prices, which was supported by stronger bidding demand. Margins from a 58pc-efficent gas-fired unit running on spot LNG averaged ¥2.82/kWh ($19.18/MWh) across 30 June-6 July, up from the previous week's ¥0.88/KWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia — and Japan Electric Power Exchange' systemwide prices. The 58pc spark spread using oil-priced LNG supplies also rose by 35pc to an average of ¥3.90/kWh. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Multilateralism should steer climate finance: Brics


07/07/25
News
07/07/25

Multilateralism should steer climate finance: Brics

Sao Paulo, 7 July (Argus) — Developed countries must fully engage in climate finance to support developing countries trying to meet Paris agreement goals, top Brazilian officials said at the Brics summit held in Rio de Janeiro on 6-7 July. "One decade after the Paris agreement, [the world] lacks resources for a fair and planned transition," Brazilian president Luiz Inacio Lula da Silva said. "Developing countries will be the most affected by losses and damages, while they are also the ones that have fewer ways to fund mitigation and adaptation," Lula da Silva said during his keynote address Monday. The Brics summit discussed climate finance in anticipation of the UN Cop 30 climate summit , which will be also be held Brazil, in November. The group issued a declaration that reinforced its commitment to uphold multilateralism as a solution for climate actions, while it also emphasized developed countries' responsibility towards developing countries to financially enable just transition pathways and sustainable development aligned with the Paris agreement. The Cop 29 summit in Baku, Azerbaijan, in November 2024 managed to reach an agreement to allocate $300bn/yr in resources for climate action. But delegates to the upcoming UN Cop 30 summit are targeting at least $1.3bn/yr in public and private funds to tackle climate change, focusing especially on countries that are already dealing with extreme weather conditions and lack financial resources to mitigate it. The Brics also announced a memorandum of understanding on the Brics Carbon Markets Partnership focused on capacity building and multinational cooperation to support climate strategies such as mitigation efforts and emergency resource mobilization. The declaration opposes unilateral protectionist measures, arguing that they "deliberately disrupt the global supply and production chains and distort competition." Climate justice, the fight against desertification, strengthened climate diplomacy and subsidies to environmental services were the main topics of discussion during the Brics summit, Brazil's environment minister Marina Silva said. Brazil will launch its own initiatives to promote climate finance in Cop 30. One program already launched is the Tropical Forest Forever Facility (TFFF) fund that aims to raise $125bn to preserve 1bn hectares of global tropical forests across 80 developing countries. Brics' development bank NDB will target 40pc of its investments to promote sustainable development, such as energy transition. The bank has approved $40bn in investments for clean energy, environment protection and water supply, it said last week. Brazil accounts for $6.4bn of total investments, gathering resources to 29 projects under climate actions, according to the institution. Brazil currently holds the presidency of the Brics, which also includes Russia, China, India and South Africa. Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia and Iran are also members. Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, Nigeria, Vietnam and Uzbekistan act as partner nations. Heated speech During his keynote address, Lula criticized the International Monetary Fund (IMF) as an institution that promotes unilateralism and stressed his support for reforming institutions of the UN to promote multilateralism and political equity for developing countries. He also mentioned that 65 of the biggest banks in the world committed to a $869bn investment to the fossil fuels sector last year. "Market incentives run contrary to sustainability," he said. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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IRA rollback to boost US natural gas demand


03/07/25
News
03/07/25

IRA rollback to boost US natural gas demand

New York, 3 July (Argus) — Cuts to renewable energy tax credits in the budget bill backed by President Donald Trump will likely increase demand for natural gas this decade to generate electricity, as those tax credits would otherwise subsidize the build-out of competing renewable generation infrastructure, according to analysts and industry insiders. Under the landmark bill, which was passed Thursday by the House after clearing the Senate on Tuesday, wind and solar projects only qualify for the clean energy tax credits in former president Joe Biden's Inflation Reduction Act if they begin construction within the next 12 months or are placed into service by the end of 2027. The accelerated timelines for renewable energy infrastructure "will likely slow the growth of renewable capacity," said FactSet senior energy analyst Trevor Fugita. "The legislation is likely to shift the focus from new renewable generation to new natural gas-fired generation, especially as AI data centers drive energy demand higher," he said. Toby Rice, chief executive of EQT, the second-largest US gas producer by volume, in an interview with Argus last week said the bill's effort at "slowing down some renewables could easily add another 1.5-2 Bcf/d" of US gas demand by 2030, especially as coal-fired power plants retire. "If solar and wind investments decrease, that [power] demand is not going away," said Rice, who identified the rollback of clean energy tax credits as key to the investment thesis for his company, alongside surging power demand for data centers and manufacturing and declining associated gas supply amid weak oil prices. EQT expects to produce 6-6.3 Bcf/d of natural gas equivalent this year. Under a previous House-passed version of Trump's One Big Beautiful Bill that required wind and solar projects to enter service by the end of 2027 to be eligible for IRA tax credits, Energy Aspects projected utility-scale solar installations falling from 32.9 GW in 2024 to 27.5 GW in 2027 and 20 GW by 2029. With the Senate's revised bill offering developers a "safer deadline" of alternatively securing the credits by beginning construction within 12 months of the bill's passage, the consultancy now expects a less steep downward trend through 2029, Energy Aspects head of North American power and emissions Michael Lawn told Argus . But utility-scale solar installations would have been on an upward trend through the end of the decade in the absence of the IRA rollback. Jason Grumet, chief executive of the trade group American Clean Power Association, on Tuesday lamented the Senate-passed bill's "very aggressive" 12-month phase out of clean energy tax credits, calling the bill "a step backward for American energy policy." By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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