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Japan’s Hibikinada biomass plant to shut for conversion

  • Spanish Market: Biomass, Electricity
  • 08/04/24

Japanese housing and energy company Daiwa House Industry will close this week the 112MW biomass and coal co-fired generation unit at its Hibikinada power complex to fully convert it to biomass.

Daiwa plans to shut the unit at Kitakyushu city in south Japan's Fukuoka prefecture on 11 April, according to a notice by Japan Electric Power Exchange (Jepx). The unit plans to convert fully to biomass by April 2026, with the unit off line from this week for preparations to only burn biomass as a generation fuel, Daiwa said.

Japan's power producers plan to cut 189MW of thermal capacity during the week to 14 April, with the closure of 6.7GW outstripping the addition of 6.6GW, according to Argus' survey based on a notice by Jepx. The difference incorporates the net drop in oil-fired capacity of 700MW and the net increase in coal-fired capacity of 104MW and gas-fired capacity of 407MW.

Mild spring weather has finally arrived in many areas of the country that has capped electricity demand. Japan's total power demand averaged 88GW during 1-7 April, down by 6pc from the previous week, show data from nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators.


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14/02/25

Brazil’s offshore wind gains momentum

Brazil’s offshore wind gains momentum

New York, 14 February (Argus) — Brazil is preparing for its first offshore wind projects following the approval of legislation that establishes a regulatory framework for investments in the sector. Industry leaders anticipate that this legal foundation will accelerate development, with the first auction for offshore wind areas expected soon. The move comes as Brazil seeks to leverage its vast wind resources and address slowing growth in its onshore wind sector. "The offshore wind law was approved at the right moment," said Elbia Gannoum, president of Brazilian wind association Abeeolica. "Brazil has one of the largest wind generation potentials, and without this law, the country risked missing investment opportunities." The new legislation comes as onshore wind expansion slows. After nearly 5GW of new wind capacity was added in 2023, investment declined, with capacity expanding by just 3.3GW last year, according to Abeeolica. A lack of demand from power distributors in energy auctions and an oversupply of power generation capacity have contributed to the slowdown. With limited demand for new projects, equipment suppliers have scaled back operations, and in some cases, suspended activities in Brazil. With the offshore wind law in place, the sector is optimistic that the government will hold its first auction for offshore wind areas this year or in early 2026. Awarding these areas would pave the way for Brazil's first offshore wind projects to begin operations by 2031 or 2032. Before the auction, the government must finalize regulations for the sector, which Gannoum expects will be complete this year. Companies have already begun preparing for the auction, conducting assessments of wind speeds, power transmission infrastructure and supply chains, according to Ricardo de Luca, Brazil country director for UK offshore wind developer Corio Generation. Once the areas are awarded, project development could take up to four years, followed by an auction for power purchase agreements in 2028, de Luca estimates. Corio plans to develop five offshore wind projects in Brazil, totaling 5GW of installed capacity. Wind developers warn that Brazil must also prepare its power transmission infrastructure for future offshore wind projects. "Even though areas haven't been awarded, the mines and energy ministry must start planning transmission infrastructure in regions with significant offshore wind potential," said Fernando Elias, regulatory director at Casa dos Ventos. "Without long-term planning, infrastructure bottlenecks could prevent projects from moving forward." While transmission constraints could pose challenges, Brazil has an advantage in developing offshore wind thanks to its established offshore oil and gas industry, said Renato Machado dos Santos, regional director of renewable energy at RES. "There is significant overlap in the supply chains for offshore wind and oil, which will not only accelerate investment but also make Brazil a more attractive destination for investors." Opportunities ahead? Despite potential hurdles, offshore wind developers remain cautiously optimistic. US president Donald Trump's 20 January executive order suspending offshore wind leasing and permitting could shift more investor interest toward Brazil. "Trump's policies have redirected attention to Brazil," de Luca said, adding that the Brazilian government has demonstrated a long-term commitment to renewable energy development. Beyond the offshore wind law, other recent legislation is expected to bolster demand for power from future offshore wind projects. This includes the approval of the low-carbon hydrogen law, which will drive demand for green fertilizer production. Additionally, the expansion of data centers for artificial intelligence and growing electricity demand from electric vehicle adoption will contribute to future power consumption in Brazil, a share of which will come from offshore wind projects, Gannoum said. Brazil’s onshore wind capacity GW Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Serbia aims to couple its electricity market in 4Q26


14/02/25
14/02/25

Serbia aims to couple its electricity market in 4Q26

London, 14 February (Argus) — Serbia aims to couple its day-ahead power market with the European market through its borders with Hungary and Bulgaria by the fourth quarter of 2026, but whether it will receive an exemption from the EU's carbon border adjustment mechanism (CBAM) remains unclear, market operations specialist at Serbian electricity exchange Seepex Milos Mosurovic has told Argus . The fourth quarter of 2026 is the first available time slot for EU-led regulatory body Energy Community constituent states to join the EU's single day-ahead coupling scheme and was assigned by the market coupling steering committee, Mosurovic said. But market coupling is a prerequisite for exemption from the CBAM, which is planned to go into effect on 1 January 2026. Energy Community members previously agreed to the 2022 Electricity Integration Package, which would provide an exemption from the CBAM until 2030 if they coupled with the European market and met other requirements by 2026. But Energy Community Secretariat director Artur Lorkowski recently said in an interview with Argus that Energy Community constituent states probably will not receive a CBAM exemption , as they have not achieved market coupling, which is a precondition for exemption. But Lorkowski did acknowledge that "greater clarity is needed" on specific criteria to determine when a third country may be considered to have ''an electricity market that is integrated with the union". This lack of clarity, along with the procedural meetings, have created market uncertainty surrounding whether and how the CBAM could be applied to Energy Community constituent states. "All relevant participants in the energy sector are aware that [Energy Community] countries will not couple until [after] 1 January 2026," Mosurovic said. "This is why we do not know what to expect regarding the CBAM." If the CBAM was applied to electricity flows, an EU emissions trading system (ETS) equivalent would be applied to Serbian electricity flows beginning on 1 January 2026. The implementation of an EU ETS equivalent was deemed to be the most expensive of four models that could be introduced into the Energy Community region, as it would lead to an increase of 13-29pc more than the baseline scenario calculated on the electricity market as of July last year, an Energy Community ministerial council report published in December shows. The four proposed models are a regional ETS, a fixed-price ETS, a carbon tax and integration into the existing EU ETS. The final option was ranked the lowest for feasibility from a legal and technical standpoint. And the method of the application of the CBAM to electricity flows has not been revealed. According to an Energy Community report from October , it is not possible to separate electricity exports from transit flows based on currently available data, and therefore it is possible that both export and transit volumes will be subject to the CBAM, as transactions for electricity entering the EU from contracting parties were declared solely as imports regardless of origin. Thermal power plants among community contracting parties have benefited from access to the EU's integrated electricity market, but have not been subject to the EU ETS, despite all coal and lignite-fired thermal power plants in the region considered to be in breach of the requirements of the EU's large combustion plant directive. But thermal capacity remains key in the Balkans, despite more renewables entering the power mix. Coal-fired generation accounts for about 40pc of annual domestic generation in the region. By Annemarie Pettinato Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex cuts biomass-fired power output in January


14/02/25
14/02/25

Japan’s Erex cuts biomass-fired power output in January

Tokyo, 14 February (Argus) — Japanese renewable energy developer Erex's biomass-fired generation in January fell on the year, according to data released by the company on 13 February. Erex's combined electricity output from the 50MW Saiki, the 75MW Buzen, and the 49NW Nakagusuku biomass-fired power plants dropped by 8pc on the year to 113GWh in January 2025. The company does not publish data for the 75MW Ofunato plant. Erex's biomass-fired power generation capacity in January stood at 249MW, including Ofunato, burning mainly imported wood pellets and palm kernel shells (PKS). The 20MW Tosa plant has been shut down for an indefinite period since September 2024 because of aging facilities. The company plans to bring two more biomass-fired power plants in Japan on line — the 75MW Sakaide Hayashida in June 2025 and the 300MW Niigata Mega Bio around 2029-30. Erex plans to begin coal and biomass co-firing at the 149MW Itoigawa plant, which currently burns only coal. The plant has already conducted test runs using wood pellets, PKS, and sorghum pellets, but the company has not announced when it will start co-firing operations. Erex also aims to start operations at the 20MW Hau Giang biomass-fired power plant in Vietnam by the end of this month. The plant will burn around 130,000 t/yr of rice husks. By Takeshi Maeda Erex's biomass-fired generation in January 2025 Capacity(MW) Generation(GWh) Start of Operations Saiki 50 32 Nov-16 Buzen 75 48 Jan-20 Nakagusuku 49 32 Jul-21 Ofunato 75 - Jan-20 Total 249 113 Source: Erex Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil’s January inflation lowest since 1994


11/02/25
11/02/25

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Energy Transfer to supply gas to planned data center


10/02/25
10/02/25

Energy Transfer to supply gas to planned data center

Houston, 10 February (Argus) — US energy infrastructure company Energy Transfer has reached a long-term agreement to supply natural gas to an artificial intelligence data center in central Texas. Under that agreement — Energy Transfer's first direct supply contract with a data center — the company will provide about 450mn cf/d (13mn m³/d) to Denver, Colorado-based CloudBurst Data Center's planned data center campus near San Marcos, Texas, for at least 10 years. That deal is contingent on CloudBurst reaching a final investment decision, which is expected later this year. The data center is scheduled to begin operations in the third quarter of 2026, Energy Transfer said. New energy-intensive data centers that run artificial intelligence software will be a key source of power demand growth in the coming years. Data centers were forecast to drive power demand in the commercial sector 2pc higher this year and lead to another 2pc increase in 2026, according to the US Energy Information Administration. Those additional power needs could lift gas demand by 3 Bcf/d or more by the end of this decade, according to some analyst estimates. Energy Transfer will provide the gas via the Oasis pipeline, a 1.2 Bcf/d line that connects gas supplies from the Permian basin of west Texas to demand centers on the Texas coast. That supply will be used to generate 1.2GW of power exclusively for the data center. Energy Transfer is in talks to supply other data centers along its network of natural gas pipelines. It expects the CloudBurst agreement to be "the first of many," the company said. By Jason Womack Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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