Greece to tax power generators’ windfall profits
The Greek government will tax the windfall profits of domestic power producers, created by the exceptionally steep increases in power prices since October, the Greek energy ministry has announced.
The Greek government will impose a 90pc tax on large power producers' windfall profits generated in October 2021-March 2022, which totalled €591mn ($623mn), Greek energy regulator RAE has calculated. The government will use the revenue generated by the tax to further support consumers, the energy ministry said.
The legislation also includes a new compensation mechanism for power plants that is based on their operating costs and is disconnected from wholesale power prices. The new mechanism will come into effect in July and will prevent power producers from generating windfall profits, the ministry announced.
The European Commission permitted EU member states to tax energy firms' windfall profits from March.
The Greek Henex spot averaged €235.55/MWh in the first quarter of 2022, up by €181.94/MWh from the same period last year. The spot cleared at a record high of €426.90/MWh on 8 March.
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UK launches global clean power alliance
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London, 17 September (Argus) — The UK has announced the formation of an alliance designed to speed up the "clean transition" in developing countries, as well as a renewed focus on increased and reformed climate finance. The alliance, which will be built using a "phased and inclusive approach", aims to accelerate the roll-out of renewables across the globe, UK foreign minister David Lammy said today, highlighting the importance of clean power in decarbonising key sectors such as transport. The alliance is also looking to unlock much more global finance to "close the energy gap by allowing more countries to leap-frog fossil fuels to renewable power systems", Lammy said. Other focus areas for the group will include boosting innovative clean energy deployment and diversifying critical mineral production and supply, Lammy said. The recently elected Labour government has pledged to decarbonise the UK's own power supply by 2030. Climate finance Unlocking "much, much more" climate and nature finance is critical to Lammy's approach to the climate crisis, he said, and the UK will push for an "ambitious" new climate finance goal, known as the NCQG, at November's UN Cop 29 climate conference. The NCQG is the next stage of the $100bn/yr target that developed countries agreed to deliver to developing countries over 2020-25. The UK is examining how the country can deliver its existing climate finance commitments "given the dire financial inheritance from the last government" ahead of its upcoming spending review, Lammy said. Lammy also called for more innovation in development finance, particularly concerning multilateral development banks. The UK supports a capital increase for the International Bank for Reconstruction and Development subject to reforms, Lammy said, while a guarantee for the Asian Development Bank will be laid before the UK parliament next month, which the foreign minister said would "unlock $1.2bn" for developing countries in the region. The UK will also appoint new special representatives for climate change and nature to support its diplomatic work in the areas, Lammy announced today. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Von der Leyen puts forward EU commissioner candidates
Von der Leyen puts forward EU commissioner candidates
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Energy firms on alert after flooding in Europe: Update
Energy firms on alert after flooding in Europe: Update
Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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