Italian spot power hits record low

Spanish Market: Electricity
06/05/20

Italian power demand fell in April amid the Covid-19 pandemic, pushing the national single price (Pun) to a record low. Consumption is expected to increase this month as lockdown measures ease.

Demand totalled 17.4TWh in April, preliminary data from European transmission system operators association Entso-E show, down by 3.8TWh on March and by 21pc on the year.

Entso-E's data are revised daily, but its figures are usually lower than those in grid operator Terna's report, generally published in the second half of the subsequent month.

In March, Italian demand was 23.7TWh, about 12pc higher than the 21.2TWh reported by Entso-e, but still 10pc lower on the year.

Consumption was reduced by Covid-19 restrictions. The lockdown was in place for all of April, although there were exemptions, particularly in the second half of the month. Italy introduced nationwide restrictions on business activities and the movement of people on 12 March, closing all non-essential industries from 23 March.

This put pressure on the Pun, which averaged €24.81/MWh last month, down by €7.18/MWh from March and €1.19/MWh lower than the April over-the-counter contract's expiry price at the end of March.

This was the lowest for any month since the creation of the Italian power market in April 2004, according to market operator GME.

Higher solar generation — at 1.8TWh, up by 0.1TWh year on year — added pressure to the spot. This and low demand pushed the peak-load price below base load for 13 days.

But wind generation dropped to 983GWh from 1.5TWh in April 2019, run-of-river hydro output fell by 0.3TWh to 2.1TWh, and gas-fired generation stood at 4.5TWh, the lowest since May 2018, Entso-E data show.

Lower demand weighed on net imports. Imports from France and Switzerland totalled 554GWh and 926GWh respectively, the lowest since at least the beginning of 2018, Entso-E data show.

Power consumption is expected to rise this month, after restrictions were relaxed from 4 May.

Much of the industrial sector can now resume operations and restrictions on the movement of people have eased. Demand totalled 1.32TWh on 4-5 May, slightly higher than 1.27TWh on 27-28 April, according to Entso-E. But consumption this week is expected to be 20.2-33.2GW, up from 18.2-30.5GW expected for 27 April-3 May, Entso-E data show.

By Fabio Roccon

Italian national single price (Pun) €/MWh

Italian power demand TWh

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20/04/26

Industry mulls Asian readiness on regional, hourly RECs

Singapore, 20 April (Argus) — Asia's power industry can adopt nascent granular renewable energy certificates (RECs) with infrastructure upgrades, although the extent of time-matching would depend on each country's generation mix, participants said at the Argus Asia Carbon conference. Cross-border transfers could help expand options and there are early trials to learn from, but the industry will also need to tackle regulatory uncertainties, they added. Granular RECs — able to track renewables generation on an hourly basis or in even finer detail — would involve higher costs, given the need for more sophisticated data tracking. "For project developers and grid operators lacking the infrastructure for granular tracking, the upfront costs are significant. These include replacing or upgrading inverters, cloud-based monitoring platforms, and legacy grids to enable hourly tracking," said Nesa Albeper, head of sustainability and corporate strategy at Malaysian clean energy firm Cenergi. Customers will also need to pay a premium, she added. Momentum for granular RECs has been growing globally. The European Union's Carbon Border Adjustment Mechanism requires importers to submit hourly-matched power contracts if they are to be used as proof for lower embedded emissions. Industry standard-setter Greenhouse Gas Protocol has also been consulting on requiring granular matching of RECs with power consumption. "Malaysia, Singapore, China, and to some extent Taiwan, are well-positioned to transition toward time-matched, granular certificates," Albeper said. Granular RECs have been trialled in China, Taiwan and Singapore. Malaysia's power regulator already tracks generation and consumption in 30-minute intervals, though energy certificates are still generally tracked by vintage years. While some industry participants have communicated 100pc hourly matching aspirations, actual feasible levels could differ by geography. It would to be challenging to conduct time-based RECs matching in Singapore because the only renewable energy source is solar power, said managing director of Singapore-based Asia Green Capital Edgare Kerkwijk. "Between 12-2pm the RECs price could be lower, but in periods when there is less solar energy generation, such as 8-10am or 3-5pm, supply will drop and RECs prices will go up," Kerkwijk said. There is some battery storage but regulators are hesitant to install more in the system, he added. It is easier to match at a higher percentage in countries with biogas, hydro, wind, solar and more batteries, Kerkwijk said. Singapore's ambition to import renewable energy from southeast Asian countries could expand the types of technology available. Some of these projects include wind energy form Vietnam, hydropower from Malaysia and solar from Indonesia. In addition to that, Singapore's work on a cross-border RECs framework also mentions the possibility of hourly tracking. A 50MW renewable energy trade from Malaysia to Singapore, via Malaysia's Enegem programme, was conducted on the I-Track registry and involves power dispatch on a half-hourly basis, Albeper noted. "This transaction offers many valuable lessons for future implementations," she said. Still, there are open questions on the ownership of RECs from cross-border transactions in Southeast Asia. "If we import solar from say Batam, Indonesia, would those certificates come to Singapore? Or would the Indonesian government say, 'these certificates are ours, we will sell you electrons but not renewables?'" said Kerkwijk. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Earthquake hits northeast Japan; impact limited: Update

20/04/26

Earthquake hits northeast Japan; impact limited: Update

Updates with information on nuclear, thermal power plants Tokyo, 20 April (Argus) — A 7.7-magnitude earthquake struck northeastern Japan today, but no major damage has been reported so far to domestic refineries, nuclear power plants or thermal power facilities, according to industry sources contacted by Argus . The earthquake occurred offshore Iwate prefecture at around 16:52 Japan time (07:52 GMT), according to the Japan Meteorological Agency. The agency issued tsunami alerts for the Pacific coastal areas of Iwate, Aomori and Hokkaido prefectures. An 80cm tsunami was observed in Iwate, while smaller waves were recorded in Hokkaido, Aomori, Iwate and Miyagi. Nuclear facilities not affected The earthquake did not impact nuclear power facilities. Tohoku Electric Power's Onagawa No. 2 reactor in Miyagi prefecture was unaffected, as it has been shut for a regular turnaround since 14 January. Japan's Nuclear Regulation Authority said no abnormalities were detected at Onagawa No. 2 or Higashidori No.1 and Onagawa No.3 reactors, which have remained offline since the Fukushima disaster. The Onagawa No.1 reactor was undergoing decommissioning. A Japanese government spokesperson said no abnormalities were reported at nuclear facilities near the epicentre following the earthquake and subsequent tsunami. Some minor disruptions to lifeline infrastructure were reported, including power outages affecting around 100 households in the Tohoku region, as well as partial suspensions of Shinkansen services and road closures on some expressways. Thermal power generation has also remained unaffected so far. All thermal power plants in the Tohoku region are operating normally, according to the Japan Electric Power Exchange. The electricity reserve margin in the region stood at above 9pc at 20:00-20:30 Japan time on 20 April, exceeding the 8pc level generally considered necessary for stable supply. Refineries not damaged No damage has been reported at oil facilities. Refiners including Idemitsu, Eneos and Cosmo Oil told Argus that their refineries were not affected by the earthquake. Japanese refiner Idemitsu has a 140,000 b/d refinery in Hokkaido prefecture which was not impacted by the earthquake, Idemitsu said, adding that the Hokkaido refinery has continued operations and the refiner's other refineries were not affected either. Fellow refiner Eneos also has a 145,000 b/d Sendai refinery in the Miyagi prefecture which has been halted since 16 April after a gas leak. Eneos reported no damage to its refineries, including the Sendai refinery. Japanese refiner Cosmo Oil's refineries were also not affected, the firm said. By Fumito Nagase,Nanami Oki, Reina Maeda,Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Electrification, US shape Swiss chemical, pharma demand

16/04/26

Electrification, US shape Swiss chemical, pharma demand

London, 16 April (Argus) — Electrification is likely to boost electricity demand in Switzerland's chemical and pharmaceutical industry, but high power prices and US trade policy could accelerate offshoring, according to experts from chemical and pharmaceutical industry association Scienceindustries. Power demand from the chemical and pharmaceutical sector accounts for around 10pc of Switzerland's total industrial power demand and around 5pc of total Swiss demand, Sciencesindustries environment and sustainability head Anna Bozzi told Argus . Power demand is comparable between the two sub-sectors. Demand from the two sectors rose by almost 20pc over 2016-22, before falling by around 10pc in 2022-24, according to the latest data from Swiss energy office BFE. Rising electrification and increasing energy efficiency have "shaped" the sectors' demand over the past 10 years, Bozzi said. Power prices big issue for chemicals But there is an "acute" danger that high power prices will cause chemicals production to relocate abroad, in particular to the US and China, the association's deputy director and energy head, Michael Matthes, said. Power prices play a less decisive role in overall production costs for pharmaceuticals. Power prices in Switzerland have fallen significantly since the energy crisis of 2022, but industry is still feeling its impact, most notably in the increase in the country's power reserve tariff, Matthes said. This was introduced in 2024 to finance Switzerland's winter energy reserve and protect against power shortages. It equates to an additional 0.01 Swiss francs/kWh (1.3¢/kWh) in grid costs, or SFr3mn/yr (€3.25mn/yr) for a company with 300 GWh/yr of power consumption, Bozzi said. A successful power agreement with the EU could stabilise prices by improving market integration, increasing grid efficiency and opening up access to a broader range of grid reserve capacities, she said. The agreement was signed and submitted to parliament last month, but will likely go to a public referendum if passed. But geopolitical tensions in the Middle East are adding uncertainty to global energy markets, which "reinforces" existing challenges for the chemical and pharmaceutical industry, including "persistently elevated energy costs" and uncertainty surrounding long-term investment and location choices, Bozzi and Matthes said. Swiss spot prices averaged €95.95/MWh over 2023-25, but jumped to around €120/MWh following the start of the Iran war — the highest for the period since 2022. Prices for 2027 have risen by around 11.5pc since 27 February — the last session before the outbreak of the conflict — but remain around €12/MWh above 2028 prices. And 2028 prices are around €5/MWh above recent trades for 2029, according to the latest assessment. This backwardation in the forward years reflects expectations of growing renewable energy capacity and increased LNG supply availability in the coming years. The median final power price for businesses decreased over 2024-26, according to federal power regulator Elcom, and transmission system operator Swissgrid tariffs will fall on the year in 2027 , owing partially to a reduction in the power reserve tariff. But the tariff for solidarity-based costs — covering grid enhancements, among other things — will rise next year, and Swissgrid expects the power reserve tariff to increase in future years because of the country's new reserve power plants set to be commissioned over 2027-30. Peak shaving not on the cards, but storage possible Large-scale chemicals production cannot be shifted to nighttime or weekends, Matthes said. Sites tend to either run at full capacity or not at all, some for 48 weeks a year, and only smaller companies have processes where shifting production in time is possible. Halting production would destroy the micro-organisms and bioactive substances involved in biotechnological process, and any subsequent restart could take weeks and incur enormous costs, Bozzi explained. Nevertheless, storage solutions such as power-to-chemicals — synthetic methane or methanol, for example — could help increase system flexibility in the longer term by allowing electricity storage in chemical form, she said. Empty threats? Power prices are a structural "push factor" and play a key role in long-term location decisions. But threats of punitive export tariffs from the US add an "additional source of uncertainty", Matthes said. The US was the largest single destination of Scienceindustries member company exports last year, accounting for SFr36.7bn (€39.8bn) of exports. US tariff threats will not lead to an overnight shutdown of Swiss production, but will harm the investment climate and could accelerate relocation trends that would have happened anyway, Matthes said. Chemicals sector production, indexed to 2021, was largely flat over 2004-24, the latest data from federal statistical office BfS show. Pharmaceuticals sector production rose sharply over this time, peaking in the first quarter of 2025 ( see chart ). Some companies have announced long-term investment plans and are committed to remaining in Switzerland. The US labour market also faces constraints and finding the skilled personnel for production processes could be "challenging", Matthes said. Technological developments trump Trump Technological developments point to a "slight upward trend" in future industrial power demand, Bozzi and Matthes said. The "next steps" for the chemical and pharmaceutical industry involve the electrification of processes, Bozzi said. Switzerland's focus on new and highly energy-intensive carbon capture technologies will add further strain to power demand. In a worst-case scenario, production could move away from Switzerland, but this "disruptive" factor is something that cannot be assessed yet, Matthes said. Technological developments will produce a "larger, more dominant effect" that would lead to a slight increase in power demand, he said. By Bea Leverett Swiss spot vs forward curve, 2023-28 €/MWh Chem, pharma output and demand, indexed to 2013 Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

LNG stocks at Japan's power utilities rise

15/04/26

LNG stocks at Japan's power utilities rise

Osaka, 15 April (Argus) — LNG stocks at Japan's main power utilities increased in the week to 12 April, and gas-fired generation edged higher given lower output from base-load nuclear and coal-fired fleets. The utilities held 2.29mn t of LNG inventories on 12 April, up by 3.2pc from the previous week's revised 2.22mn t, according to a weekly survey by Japan's trade and industry ministry Meti. This was also higher by 7.5pc compared with 2.13mn t on 13 April 2025 and up by 8pc against the end-April average of 2.12mn t over 2021-25. Japan's gas-fired generation climbed to around 4.1TWh over 6-12 April, up by 3.1pc from a week earlier, according to the country's power agency the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). The increase is estimated to have raised LNG consumption by about 16,080t, assuming an average gas-fired generation efficiency of 50pc. Higher gas-fired output came despite softer electricity demand given a seasonal rise in temperatures. Utilities were encouraged to increase gas-fired utilisation, as coal-fired generation fell by 16pc from a week earlier to 3.4TWh during 6-12 April, after several coal-fired units were shut for regular maintenance. Oil-fired output also dropped by 28pc to 35.4GWh. Power supply from nuclear reactors totalled 1.7TWh during the week to 12 April, down by 4.2pc from a week earlier. Utility Kansai Electric Power shut the 870MW Takahama No.3 reactor on 7 April for regular turnaround, which prompted the utility to boost replacement gas-fired output. Overall gas-fired output in the Kansai area rose by 49pc on the week to 581GWh over 6-12 April. The increase in LNG inventories despite higher gas-fired output indicates that utilities received more LNG than they consumed last week. Japan imported 1.16mn t of LNG over 6-12 April, including volumes for city gas production, up from 1.13mn t a week earlier, data from oil analytics firm Vortexa show. Japan's power demand averaged 86GW during 6-12 April, down by 0.7pc from a week earlier, Occto data show. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

France pushes for electrification on Mideast Gulf war

13/04/26

France pushes for electrification on Mideast Gulf war

London, 13 April (Argus) — French prime minister Sebastien Lecornu has called for rapid electrification in response to the rise in fossil fuel prices caused by the Middle East war, and unveiled new measures to reach the goal. "As long as we depend on crude and gas we will continue to pay for others' wars," he said on Friday, 10 April presenting his electrification plan that the government began working on before the Iran crisis. France will double its annual spending on electrification to €10bn ($11.8bn) from €5.5bn, Lecornu said on 10 April. For residential heating, gas boilers will be banned in new buildings from the end of the year. Heating systems relying solely on gas were already de facto banned in new builds, and hybrid systems were becoming increasingly less common. The government will also choose 100 local areas to put on a "zero gas" trajectory by 2030. It aims to reduce gas consumption by 85 TWh/yr by 2030, or roughly a quarter of current consumption. The government wants to install 1mn heat pumps a year by 2030. Sales previously reached this level over 2021-23 before falling back, and French president Emmanuel Macron in 2023 announced a previous target to reach 1mn heat pumps produced in France each year by 2027. The government also wants two-thirds of new vehicles to be electric by 2030, compared with 28pc in March, a record high. And French manufacturers should build 400,000 EVs a year by 2027, and 1mn by 2030, up from about 200,000 last year. A new subsidised EV leasing scheme covering 50,000 vehicles will be introduced, alongside an existing scheme that leases 50,000 vehicles/yr to people on low incomes. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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