Latest Market News

Belarus to start nuclear power plant ahead of schedule

  • Spanish Market: Electricity
  • 11/08/20

The first 1.2GW unit of Belarus' new nuclear power plant in Astravyets will come on line in "the next few days", the country's energy ministry has said following long-standing president Alexander Lukashenko's disputed victory in 9 August's election.

Lukashenko said before the vote that the 2.4GW facility would have enormous significance for the country's security of supply and economy. Over 95pc of the country's electricity generation is gas-fired, and only 15pc of its overall energy demand was met by domestic production in 2018, making it one of the world's least energy self-sufficient countries, according to the IEA.

Tensions are rising between Belarus and long-term gas supplier Russia, with Lukashenko baulking at Russian president Vladimir Putin's proposal of closer economic and political integration as a condition for continuing to subsidise Belarus with gas supplies on favourable terms. A disagreement between the two countries led to a temporary cut in Russian gas transit through Belarus to EU countries at the start of this year.

Lithuania has voiced the most vocal objections to the nuclear plant, which is only 45km from its capital Vilnius. Lithuanian authorities have called for measures to "prevent countries with unsafe nuclear power plants" from exporting electricity to Lithuania, and has legislatively barred imports of Belarusian electricity.

But Lukashenko said that: "We do not need to point out and poke at security issues. We are the Chernobyl republic, we have gone through a lot. We ourselves know the cost of the consequences."

All equipment at the plant has been tested and made ready for the launch, and the plant's personnel are ready to carry out fuel loading, Belarus' energy ministry said. A total of 163 fuel rod arrays will be placed inside the reactor.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

09/12/24

Australia’s QPM to buy Moranbah gas-fired power station

Australia’s QPM to buy Moranbah gas-fired power station

Sydney, 9 December (Argus) — Australian independent QPM Energy will buy the 12.8MW gas-fired Moranbah power station (MPS) as the firm pivots from battery materials to being a central Queensland-focused gas developer. Carbon Logica signed an agreement to acquire the power plant from Sustainable Energy Infrastructure, owned by infrastructure management firm Whitehelm Capital, for A$10.5mn ($6.7mn), QPM said on 9 December. QPM will then lease the facility from Australian mining services firm Carbon Logica, before it takes ownership of the plant. The sale will settle over a four-year period, with operations and maintenance to be conducted by QPM, which will also receive all MPS' electricity sales. QPM also owns the 64 TJ/d (1.74mn m³/d) Moranbah gas project. QPM renamed itself from Queensland Pacific Metals last month, and in April announced it would cut spending on its Townsville Energy Chemicals Hub project which aims to produce 16,000 t/yr of nickel and 1,750 t/yr of cobalt sulphates from imported laterite ore, citing the slumping global nickel price. The company is seeking to increase waste gas production from the Bowen basin's coal mines to 35 TJ/d by late 2024, up from October-December 2023's 28 TJ/d. Coal mines captured under Australia's greenhouse emissions reduction laws must reduce methane gas flaring under stricter laws to be imposed from 1 July 2025. QPM signed a revenue-sharing deal for excess power generated from Thai-owned Ratch Australia's Townsville Power Station (TPS) on 4 December. The 10-year agreement begins on 1 July next year and will cover revenue from the plant above QPM gas supply levels of 12 TJ/d, with operating costs for TPS and the 108 TJ/d North Queensland gas pipeline to be recovered first. Gas peaking plants can generate significant profits as Australia's electricity markets transition supply from thermal to renewable generators, particularly during the evening peak when wholesale spot electricity market prices can soar above A$1,000/MWh. QPM wants to develop 300MW of new gas-fired power generation at its Moranbah project, because of the state government's policy for an additional 3GW of new gas-fired generation as it retires coal-fired plants in the coming years. Only 2.2GW of the presently installed 2.9GW of capacity is being dispatched, mainly owing to a lack of domestic gas supply, QPM said on 14 November. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Denmark's wind tender flop linked to H2 network doubts


06/12/24
06/12/24

Denmark's wind tender flop linked to H2 network doubts

London, 6 December (Argus) — Denmark's failure to attract bids in an offshore wind tender was partly caused by the country's lack of firm commitment to a hydrogen pipeline network, according to Danish and European hydrogen associations. For Denmark's hydrogen industry the failed tender is raising concerns that Copenhagen might resort to state aid for offshore wind, which could jeopardise renewable hydrogen production that is compliant with EU rules. Denmark unsuccessfully offered three areas totalling 3GW in a first part of the auction that ended on 5 December, and will offer another 3GW in a second part ending in April 2025. The "very disappointing" result will now be investigated by the Danish Energy Agency to discover why market participants failed to bid, energy minister Lars Aagaard said. Wind project developers may have worried that low electricity prices in an increasingly saturated power market and inadequate export routes — either via power cables or as hydrogen via pipeline — would deny a return on investments, industry participants said. Ample offshore wind potential could allow Denmark to generate power far in excess of its own needs. But in order to capitalise on this the country would need to find a way of getting the energy to demand markets. Turning offshore wind into renewable hydrogen for export was "a very attractive solution" for developers, Hydrogen Europe chief policy officer Daniel Fraile said, but would rely on timely construction of a network "all the way from the coast to Germany's hydrogen-hungry industry." Denmark's hydrogen network was recently pushed back to 2031-32 from an initial 2028, partly because of an impasse over funding that provoked anger from industry. The government has said it will only help fund the hydrogen transport network if there are sufficient capacity bookings guaranteeing its use. But this approach increases risks for developers, according to Fraile. "You need to handle the risk of winning the offshore tender, finding a hydrogen offtaker in Germany and commit to inject a large amount of hydrogen over several years. Then deliver the project on time and on cost," he said. "This is a hell of an undertaking." Industry association Hydrogen Denmark's chief executive Tejs Laustsen Jensen agreed, calling the failed tender "a gigantic setback". "The uncertainty about the hydrogen infrastructure has simply made the investment too uncertain for offshore wind developers," he said. "Now the task for politicians is to untie this Gordian knot." "Of course, the tender must now be re-run, but if the state does not guarantee in that process the establishment of hydrogen infrastructure, we risk ending up in the same place again," he said. The booking requirement as a prerequisite for funding the network "must be completely removed," Jensen said. Green energy association Green Power Denmark said "there is still considerable uncertainty about the feasibility of selling electricity in the form of hydrogen," but pointed to other factors that may have led to the tender failing to attract bids. Wind turbines and raw materials have become more expensive because of inflation while interest rates have risen sharply, reducing the viability of such projects, the group's chief executive Kristian Jensen said. Unlike some other countries, Denmark does not intend to fund grid connections or provide other subsidies, he said. Unwanted help Hydrogen Denmark's Jensen warned against the government resorting to subsidies to help get offshore wind farms built. "State support for offshore wind would be the death knell" for the hydrogen sector and would "de facto kill all possibilities for a green hydrogen adventure in Denmark," he said. Granting state support for offshore wind farms would mean these assets would not comply with the additionality requirement of the EU's definition for renewable fuels of non-biological origin (RFNBO), which are effectively renewable hydrogen and derivatives. EU rules state renewable assets are only considered 'additional' if they have "not received support in the form of operating aid or investment aid," although financial support for grid connections is exempt from this. "If state aid is provided for the offshore wind that is to be used to produce the hydrogen, we will lose the RFNBO stamp, and the Danish hydrogen cannot be used to meet the green EU ambitions for, among other things, industry and transport, and the business case is thus destroyed," Jensen said. By Aidan Lea and Stefan Krumpelmann Geographical divisions of Denmark's H2 network plan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK fuel mix disclosure ‘no longer fit for purpose’


05/12/24
05/12/24

UK fuel mix disclosure ‘no longer fit for purpose’

London, 5 December (Argus) — UK company Smartest Energy presented a paper at today's RECS-led UK Rego Day seminar in London, calling for urgent reform of the electricity certification scheme to support decarbonisation goals. Smartest Energy is calling for a shift to full production and consumption disclosure, with generators receiving a certificate of origin for every MWh they send into the grid — regardless of the fuel source. This would allow renewable and non-renewable generation to be tracked and enable consumers to make informed decisions, the paper argues. Another proposal is to gradually move away from the current methodology for fuel mix disclosure, which is based on annual matching — this system effectively means consumption within a specific timeframe can be matched to output in any other period during the disclosure year. The paper suggests an initial shift to quarterly matching, followed by monthly and daily matching. Closer temporal alignment would "encourage investment in grid development and deeper decarbonisation", according to Smartest Energy. It would also give a clearer picture of seasonal and daily energy demand and the physical reality of electricity flows. The paper suggests that more transparency is particularly important now that European guarantees of origin (GOOs) are no longer recognised in the UK, and while electricity continues to flow from the continent through interconnectors. Argus assessments for non-biomass Regos generated in the current compliance period 23 (CP23) — April 2024-March 2025 — averaged £4.19/MWh in November, while CP23 biomass was assessed at an average of £3.88/MWh. In Europe, full disclosure has already been implemented in Austria, Switzerland and the Netherlands. Dutch GOOs tend to trade at a premium to the rest of the continent, with consumer preference for local certificates driving demand. France moved to monthly certificate matching at the beginning of 2021. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's economy accelerates to 4pc growth in 3Q


04/12/24
04/12/24

Brazil's economy accelerates to 4pc growth in 3Q

Sao Paulo, 4 December (Argus) — Brazil's economic growth accelerated to an annual 4pc in the third quarter, led by stronger consumer spending, according to government statistics agency IBGE. The economy accelerated from 3.3pc annual growth in the second quarter and posted the fastest growth since the first quarter of 2023. Household consumption grew by 5.5pc in the third quarter from a year earlier, while government spending increased by 1.3pc. Services grew by 4.1pc. The industry sector grew by an annual 3.6pc, driven by civil construction and five-year high automotive production in July , according to the national association of vehicle manufacturers. Exports rose by 2.1pc, while imports grew by 18pc. The oil, natural gas and mining industry contracted by 1pc, thanks to lower oil and gas exploration and production. Brazil produced 4.35mn b/d of oil equivalent (boe/d) in the third quarter, down from 4.51mn boe/d in the July-September 2023, according to oil and gas regulator ANP. The electricity and gas, water and sewage management sector increased by 3.7pc from July-September 2023, favoured by higher demand despite higher power tariffs. Brazil faced a severe drought in the first two quarters of the year that lowered river levels at hydroelectric plants and increased power charges in September. But the agriculture and cattle raising sector fell by 0.8pc, with expected production of significant crops such as corn and sugarcane dropping from a year prior also because of adverse weather. Still, output of cotton, wheat and coffee increased by 14.5pc, 5.3pc and 0.3pc, respectively, according to IBGE. The investment rate — the percentage of a country's total production that is invested — grew to 17.6pc in the third quarter, an increase of 1.2 percentage points from the same period in 2023. Brazil's GDP growth in the third quarter was up by 0.9pc from the second quarter, reaching R3 trillion ($494bn). By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Biogas takes record share of EU gas demand in 2023


04/12/24
04/12/24

Biogas takes record share of EU gas demand in 2023

London, 4 December (Argus) — Biogas production in Europe was enough to cover 6.6pc of the EU's natural gas demand in 2023, according to figures from the European Biogas Association (EBA)'s latest statistical report. Combined biogas and biomethane production in Europe was 234TWh, or 22bn m³, last year, the EBA said, while latest Eurostat data show the EU's total natural gas demand was 3,519TWh, or 294bn m³. The EBA has revised its 2023 biomethane production estimate upwards to 4.9bn m³, from 4.6bn m³ in its January report . This amounts to an increase of 0.8bn m³ compared with 2022, the biggest yearly rise on record, with year-on year growth reaching 21pc in the EU and 18pc in Europe as a whole. The number of biomethane plants in the region rose sevenfold last year to 1,510, leaving Europe with installed capacity of 6.4bn m³/yr by the first quarter of 2024. Biogas and biomethane made up 6pc of the EU's renewable electricity consumption last year, which in turn accounted for 40pc of total electricity consumed in the bloc. Italy, France, Denmark and the UK had the fastest production growth rates in Europe in 2023, but Germany remained the region's biggest biogas and biomethane producer at 100TWh. If growth rates continue at last year's pace, most European countries are likely to meet the biomethane targets in their 2030 National Energy and Climate Plans (NECPs), said the EBA. However, there is a significant gap between the volumes committed in the NECPs — which add up to 14.6bn m³/yr — and the 35bn m³/yr target in the EU's REPowerEU plan. The shortfall is partly because of insufficient investment . The EBA's report highlights the role of biogas in replacing Russian gas and LNG. According to Eurostat, 98pc of the EU's natural gas demand in 2022 was covered by imports. The bloc has the potential to produce 111bn m³/yr of biomethane by 2040 , representing over 30pc of EU gas consumption in 2022. Last year, 23pc of European biomethane was used for transport, 17pc for buildings, 15pc for power generation and 13pc for industry. Most German, UK, French, Danish, Dutch and Swiss biomethane is still generally used for heating or electricity, while Norway, Italy, Sweden, Estonia and Finland mainly use biomethane for transport. In France alone, a further 1,232 projects are at various stages of development, although French plants continue to be "on the smaller side" at an average capacity of 197 m³/h, compared with an average 468 m³/h in the rest of Europe, the EBA said. Denmark and the UK have larger plants with average capacity of 1,443 m³/h and 961 m³/h, respectively. Denmark also has the highest ratio of biomethane to natural gas in its grid — by August 2024, the share of biomethane in the Danish gas grid had reached 37.5pc. No new plants have been established to run on energy crops as the main feedstock since 2020, and there is a clear EU-wide trend towards waste feedstocks, in line with regulation that aims to phase out crop-based biofuels by 2030, the EBA said. But the feedstock mix currently used in biogas plants varies between countries and a significant portion is still crop-based, it said. Barriers to growth In a poll of network members, the EBA identified the main factors regarded as the greatest barriers to sector growth. These include market availability, low costs of natural gas, regulatory instability, the lack of a single market for biomethane, the lack of mature voluntary schemes, a political push for other solutions and long-term supply contract hurdles. To ensure 2030 targets are met, the association called for increased regulatory stability , long-term goals to boost investment, cuts to red tape and technology-neutrality under EU rules. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more