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Nuclear issue splits Australia’s opposition coalition

  • Market: Electricity
  • 20/05/25

Australia's Liberal-National opposition coalition has split because of a nuclear energy disagreement, leaving the ruling Labor Party in a stronger position to push through its renewable energy agenda and possibly ushering in a period of energy policy stability.

The Nationals leader David Littleproud announced the split at a press conference at parliament house on 20 May. He said the parties are no longer aligned on nuclear forming part of the energy grid and its proposed A$20bn ($12.8bn) future fund for regional Australia. The Liberal party did not confirm whether it would support nuclear energy or the future fund, Littleproud added.

Australia's opposition coalition — comprising of the right-leaning National and Liberal parties — has separated after an 80-year alliance, further affirming the Labor government's majority after its landslide win on 3 May.

Neither the Liberal nor the National party is likely to form government in the future without each other's support, so the split hands more power to the Labor party to pursue its energy transition policies and could allow the Liberal party to move towards the middle of the political spectrum.

It could also see the Labor and Liberal parties forming a consensus, after many years of disagreement on energy policy as well as resources and energy tax regimes.

The Liberal party needs time to "reinvent" themselves after their massive loss, he added. The party lost 15 seats in the House of Representatives in the last election, while the Nationals lost just one.

Littleproud said he will work with the Liberal party leader Sussan Ley to rebuild their relationship and potentially reform a coalition before the next election. "We will be pragmatic and work constructively with Sussan Ley and her team to bring down the Albanese government after next election," he said.


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18/06/25

TC Energy targets brownfield expansion growth

TC Energy targets brownfield expansion growth

Washington, 18 June (Argus) — Canada-based TC Energy intends to focus on expansions of its existing natural gas pipeline network in North America to serve growing demand for natural gas service until the mid-2030s, chief executive Francois Poirier said today. TC Energy has a $32bn backlog in capital projects and is looking at an additional $30bn of projects that may not all come to fruition, Poirier said. The company's focus is on increasing capacity through existing pipelines and pipeline corridors, he said, rather than pursuing greenfield projects that require entirely new routes. "Our view is that we're going to be able to prosecute all of that with brownfield expansions," Poirier said in an interview on the sidelines of the Atlantic Council's Global Energy Forum. "The industry has been quite innovative in finding the nooks and crannies to move gas around. So I don't see a need for a big greenfield pipeline until the mid-2030s." Pipeline developers since 2020 have prioritized brownfield projects, after permitting delays and lawsuits delayed or halted proposed pipelines across the eastern US, such as the now-canceled $8bn Atlantic Coast Pipeline. President Donald Trump has pushed to restart new pipeline development, and last month US midstream operator Williams said it was restarting work on the 124-mile (200km) Constitution pipeline and the Northeast Supply Enhancement project. Last month, TC Energy announced a $900mn expansion of its ANR pipeline system in the US Midwest, known as the Northwoods project. TC Energy will focus on those types of brownfield projects until at least the mid-2030s, Poirier said, when the company forecasts gas production in the Hayettesville and Permian basins will reach maturity. At that point, he expects there will more need to transport Appalachian gas to the US Gulf coast, where demand from LNG export terminals is set to increase. "Then the question is going to be, is it economical?" Poirier said. "It's going to depend on the price for Henry Hub [gas]. Right now, the Henry Hub price doesn't support a new greenfield pipeline." Data centers are among the largest drivers of demand growth, Poirier said. In the last three months, TC Energy has seen "quite an acceleration" in demand for gas transportation service from utilities serving that demand, he said. Gas-fired plants are still the fastest way to reliably serve those data centers even though such plants take 3-5 years to build, he said, because renewable power is intermittent and nuclear plants take at least a decade to build. "If you look at the 660 or so data centers under development and construction in the US, about two-thirds are within 50 miles of our pipelines," Poirier said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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TSO error, generation loss led to blackout: Spain VP


17/06/25
News
17/06/25

TSO error, generation loss led to blackout: Spain VP

London, 17 June (Argus) — Programming mistakes from Spain's transmission system operator (TSO) and "improper" disconnection of generating units by utilities contributed to Spain's 28 April blackout, according to Spain's vice-president and ecological transition minister, Sara Aagesen. Aagesen addressed the public following a meeting with the council of ministers, in which she presented a report on the government's findings from its investigation into the blackout that affected the Iberian peninsula on 28 April . Poor planning for voltage controls may have contributed to the blackout on 28 April. The day before the Iberian outage, Spanish TSO Red Electrica requested that 10 thermal plants be available in case of voltage issues on 28 April, Aagesen said. Market mechanisms meant the plants were not expected to be part of the 28 April generation mix, but the TSO often selects thermal units spread across Spain for back-up in case of an extraordinary event, in exchange for financial compensation. At 20:00 local time (18:00 GMT) on the night before the blackout, one of the thermal plants informed the TSO that it would not be able to operate the next day, and the TSO decided not to select another plant to take its place. The TSO "decided to reprogramme [for the next day], but not replace the need for a thermal plant", which meant the TSO went into the day of the blackout with "resources for voltage control that were inferior to what they had calculated the previous morning for the middle hours [of 28 April]". Some of the generation that disconnected from the grid in the initial stages of the blackout happened in an "improper manner". While some units automatically disconnected to protect themselves from voltage fluctuations, it was suggested that some generation units should not have done so. This created a wider "wave of over-voltage", amplifying the effects. And generation loss was detected not only in the Badajoz, Granada and Sevilla provinces as previously believed, but also in Caceres, Huelva and Segovia. This phase of the blackout took place within the space of 21 seconds. There is still no indication that a cyber attack took place on 28 April. The minister reiterated the government's stance on the matter, ruling out external influences on the events during the blackout. The full report covering the government's investigation into the blackout, approved by the council of ministers, will be published this evening. Aagesen will hold a meeting with her Portuguese counterpart, Maria da Graca Carvalho, in Portugal this evening at 20:00 local time (20:00 BST). By James Doran Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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World Bank backs Indonesia's $2.128bn clean energy push


17/06/25
News
17/06/25

World Bank backs Indonesia's $2.128bn clean energy push

Singapore, 17 June (Argus) — The World Bank has approved a $2.128bn blended finance package for Indonesia to support its financial sector reforms and accelerate investment in clean energy, it announced on 16 June. Indonesia will channel $1.5bn of the package into strengthening its financial services sector by expanding the use of digital financial tools and removing credit infrastructure constraints. It will also help remove obstacles in obtaining renewable energy technologies by reducing local content requirements. The remaining $628mn in funding — comprising a $600mn loan from the International Bank for Reconstruction and Development (IBRD), $12mn from the IBRD surplus-funded liveable planet fund, and $16mn from partners under the Sustainable Renewables Risk Mitigation Initiative — is aimed at enabling greater energy access. This blended finance programme aims to generate 540MW of solar and wind power. It is also expected to reduce power generation costs by 8pc and cut greenhouse gas emissions by 10pc, particularly in Kalimantan and Sumatra, the World Bank said. This energy programme is the first to use the World Bank's step-up loan product, which has a repayment scheme designed to attract long-term private investments, with incentives including lower interest rates during the implementation phase and further reductions if projects are refinanced after completion. By Haridas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EEX seeks daily Nordic power trades from 25 players


16/06/25
News
16/06/25

EEX seeks daily Nordic power trades from 25 players

London, 16 June (Argus) — German exchange EEX believes its liquidity drive can be considered successful if around 25 participants initially close daily trades for the system and some zonal futures, sales director Tim Greenwood told Argus . The exchange has long highlighted its ambition to increase liquidity, and has now introduced specific measures to address this along with an indication of what higher liquidity would entail. EEX last week launched a package of measures to encourage activity on its Nordic offering, which covers system and zonal futures for the 12 Nordic zones. The package includes a year-long trade fee waiver scheme and clearing cost cover. The scheme is based on past successes in stimulating activity in similarly illiquid or mostly over-the-counter markets, such as Spain, Greenwood said, and will be complemented by a focus on local engagement with stakeholders. The initiative follows dramatically lower trading across its Nordic book on the year, with liquidity down by 99pc on the year in January and by 92pc in February. By delivering on its ambition to bring 25 participants onto the exchange, then rising to around 40, the exchange hopes it can demonstrate to the market it and liquidity are moving forward, so the conversation regionally can change from "what can we do" about liquidity to "how are we progressing", Greenwood said. The Nordics are primarily dominated by the state-owned utility in each country, particularly in Sweden and Norway, Sweden's Vattenfall and Norway's Statkraft. EEX is confident these participants would welcome a market that is "seven or eight times" the size it is today and that, ultimately, "the big fish go where the small fish go." EEX also hopes to demonstrate to the market its zonal futures are a tool in and of themselves for re-energising Nordic liquidity by allowing firms to trade while recognising the increasingly divergent fundamentals between zones. The Nordic system price, by papering over this divergence, has "a lot to do" with the regional liquidity decline, Greenwood said, adding the price "is not reflecting the underlying needs" of traders. The system price is part of a broader regional issue, Greenwood said, acknowledging that while participants in most other markets consider fundamentals on a market-by-market basis, the system price leads people to consider the Nordics as a whole. That is despite the Nordics comprising "different countries, with different fundamentals" and that the "ideal situation would be to focus on the different markets". EEX highlighted the system price issue by emphasising that its Danish zonal futures and their higher liquidity are representative of the problem, noting that Denmark's fundamentals and price alignment are more correlated with neighbouring Germany than the other Nordic countries. The German exchange also reaffirmed that it welcomes the competition offered by the incumbent Nord Pool-owned Nasdaq exchange, noting that until EEX's entrance, the region had "the dominance of one exchange and [liquidity] has gone down", rebutting some fears that two exchanges could further split the already low liquidity, Greenwood said. He added changes to Nasdaq clearing rules, as they come fully under the Nord Pool umbrella, provide a "bit of a wake-up [call]" to participants and a good opportunity to take advantage of EEX's "good coverage of clearing banks and cross margining", Greenwood said. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s Erex lifts biomass-fired power output in May


16/06/25
News
16/06/25

Japan’s Erex lifts biomass-fired power output in May

Tokyo, 16 June (Argus) — Japanese renewable energy developer Erex's biomass-fired power generation in May rose from a year earlier, according to data published by the company on 13 June. Erex's combined electricity output from the 50MW Saiki, the 75MW Buzen, and the 49MW Nakagusuku biomass-fired power plants in May increased by 2pc on the year to 98GWh. The company does not disclose the output of the 75MW Ofunato plant. Erex's biomass-fired power generation capacity in May was 249MW, including the Ofunato plant, with the firm burning mainly imported wood pellets and palm kernel shells (PKS). The Buzen plant was halted from 1-6 June because of regular maintenance. The 20MW Tosa plant has been shut down for an indefinite period because of aging facilities, according to the company. Erex started commercial operations at the 75MW Sakaide biomass-fired power plant on 2 June. The company plans to start up the 300MW Niigata Mega Bio around 2029-30. Erex's 20MW Hau Giang biomass-fired power facility in Vietnam came on line in April, with the plant burning rice husks. The company aims to build up to 18 biomass plants in the country, following Hau Giang. Erex also plans to start constructing a 50MW biomass plant in Cambodia in this year. By Takeshi Maeda Erex's Biomass-fired Generations in May 2025 Capacity(MW) Generation(GWh) Start of Operations Saiki 50 30 Nov-16 Buzen 75 36 Jan-20 Nakagusuku 49 32 Jul-21 Ofunato 75 - Jan-20 Total 249 98 Source: Erex Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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