UK mulls GB Energy forced labour PV panels plan

Spanish Market: Electricity
23/04/25

The UK government is mulling steps to position the state-owned GB Energy investment vehicle as a "sector leader" in preventing solar panels produced by forced labour from entering the supply chain.

The department for energy security and net zero (Desnz) is "considering" how the government can "go further" to ensure forced labour is removed from the solar supply chain. The ministry states that "no industry in the UK should rely on forced labour", a Desnz spokesperson told Argus.

The government previously voted down a Lords amendment introduced by David Alton on 11 February that would have prevented the Secretary of State from disbursing GB Energy funds "if there exists credible evidence of modern slavery".

The government defended rejecting the amendment on 25 March, arguing that the existing "debarment list" mechanism — introduced by the Procurement Act 2023 — was adequate "to ensure that suppliers with unethical supply chains cannot participate in [GB Energy] procurement", according to energy minister Michael Shanks. He added that the amendment would "force the government to cease all [GB Energy's] activities".

The ministry has now revised that view "having listened carefully to the views of MPs and peers", and expects to "provide an update shortly" on revised guidance.

Domestic industry body Solar Energy UK "welcomed" the government's move to push on with a plan to strip modern slavery from industry supply chains and added that it "look[s] forward to seeing the [amendment] text and responding in more detail." The body also stated its confidence that removing forced labour solar panels from the supply chain would produce "no slowdown in solar deployment".

By Daniel Craig

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22/05/25

UK N2EX peak-load discount reaches record in May

London, 22 May (Argus) — Peak-load power on the UK's N2EX day-ahead spot market has cleared at its widest discount to the base load this month, driven by rising solar generation and falling national demand. The N2EX has cleared at £75.92/MWh ($85.66/MWh) for base load so far this month, while peak-load hours have delivered at £70.23/MWh. This is on track to be the widest peak-base discount on record in the UK, surpassing the peak discount of £4.40/MWh in August last year — which came amid record low peak demand for the month and unseasonably strong wind output. UK solar generation has averaged 7GW in peak hours so far this month, up from 6.2GW last month and 4.7GW in May last year. In these hours, solar has accounted for around 22.5pc of domestic generation, the highest share for any month on record. Embedded solar output during peak hours for the remainder of the month is currently forecast at 6.1-10.4GW, peaking on 23 May and bottoming out on 24 May. And national demand is forecast to range 16.0-22.4GW over the same period, with peak demand ranging 14.1-23.9GW. Solar output is on track to generate more power than gas-fired units during peak-load hours for the second time on record after August last year. Gas-fired generation has been 6.2GW in peak-load hours so far this month, around 800MW below solar. In comparison, peak-load gas burn was just 50MW below solar in August last year. The rise in solar generation has also continued to weigh heavily on the UK's net imports in the hours around midday. Net imports during base-load hours have stood at 3.9GW so far this month, down from 4.3GW in April and well below 4.8GW in May last year. Imports have only been around 4.6GW in settlement periods 27-28, between 13:00-14:00 local time, below 5.9GW during the same interval last year and 5.1GW in 2023. A decline in peak-load demand compared with previous years has also weighed on power prices in these hours. UK national demand has been 22GW so far in May, the lowest for the month aside from May 2020. But demand in peak hours has been around 200MW lower than in May 2020 at 21.7GW, while late-night and early morning demand has been 1GW above 2020 levels. This has largely been driven by a rapid increase in embedded solar for self-consumption in recent years, which could accelerate further with the recently passed Great British Energy Act, allocating £200mn for rooftop solar and other renewable energy schemes in 7,000 schools, hospitals and community buildings. The bulk of solar installations in the UK are between 0-4kW, totalling 1.4mn as of March and equivalent to 4.2GW, or 23pc of the UK's total solar capacity, government data shows. Some 73pc of the new solar installations in March were on residential buildings, adding a total of 68MW. And 3.3GW between transmission and distribution-connected solar projects won contracts for difference in the last allocation round held last year. Almost 1.1GW of this is due on line in 2026-27 and 2.2GW in 2027-28. By Timothy Santonastaso N2EX monthly peak-base spread £/MWh May solar output GW Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US could undermine global climate co-operation: Podesta

22/05/25

US could undermine global climate co-operation: Podesta

London, 22 May (Argus) — The global climate community will have to pay close attention to the fact that the administration of US president Donald Trump "may do whatever they can to undermine global co-operation in the energy transition" in forums such as the G7 and the UN Cop 30 climate summit, former US government climate advisor John Podesta told the Financial Times Climate and Impact Summit Europe today. "I hope people will resist them," he said, after pointing out that during Trump's first term, the US administration was "essentially… passive" on the climate on a global stage. Podesta said that through Trump's attacks on former president Joe Biden's clean energy-supporting Inflation Reduction Act , the US has "handed a victory particularly to China". The act had become an energy transition model around the world, Podesta said, pointing to the EU's Green Industrial Deal. "The way to decarbonise and deal with climate change is through investment, innovation and technology… and what we have done is thrown in the towel and thrown in the hand", he said. "There was I think, bi-partisan consensus in the US and consensus in Europe that we need to react to [China's domination in the green industry sector]," he added, saying that there is an economic security dimension with leaving China in a dominant position. Clean energy deployment in the US is likely to stay robust in the short term, he said. Some Republican state governors have raised objections to the administration's rollback of clean energy support, but business investing in that area is keeping its collective head down, Podesta said, largely because "the administration has been engaged in a process of intimidation". Podesta said that there remains significant sub-national action in the US, but warned that the Trump administration is trying to undermine that too. The administration has moved to "attack the underlying science" and the "human capital" in institutions such as US climate and weather agency the National Oceanic and Atmospheric Administration, Podesta said. "If you eliminate all the information sources maybe the problem goes away", he added. The government has already pulled the US out of the Paris climate agreement and could withdraw from the UN Framework Convention on Climate Change (UNFCCC) — the UN's climate body. But there are legal issues around this, including whether the government may need a "supermajority" in the Senate, Podesta said. "The law has not been a constraint on this government," Podesta added. By Georgia Gratton, Caroline Varin & Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iraq signs integrated energy deal with China’s Geo-Jade

22/05/25

Iraq signs integrated energy deal with China’s Geo-Jade

Dubai, 22 May (Argus) — Iraq's oil ministry has signed an agreement with China's Geo-Jade Petroleum and local firm Basra Crescent to expand the capacity of the 20,000 b/d Tuba oil field and develop a suite of downstream and power assets, in a move that mirrors recent integrated energy deals with international partners. A key component of the South Basrah Integrated Energy Project will be to raise Tuba's production capacity to 100,000 b/d, oil minister Hayan Abdulghani said at the signing ceremony in Baghdad on 21 May. The project will also include processing of up to 50mn ft³/d of associated gas. Downstream components include a 200,000 b/d refinery, a 620,000 t/yr petrochemical plant and a 520,000 t/yr fertilizer facility. A 650MW thermal power plant and a 400MW solar plant will also be part of the project, Abdulghani said. No financial details or project timelines were disclosed. The agreement marks a further step in Geo-Jade's expansion in Iraq, following its successful participation in the country's fifth and sixth licensing rounds. While the company now holds multiple upstream assets in Iraq, it has yet to bring any into production. The deal follows a similar multi-billion dollar agreement signed with TotalEnergies in 2023 , which bundled gas processing, water treatment and solar power with development of the Ratawi field. In February this year, BP signed a major upstream deal with Iraq that also includes power, water and potentially exploration. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to walk tightrope in Cop 30 fossil fuel talks

20/05/25

Brazil to walk tightrope in Cop 30 fossil fuel talks

Rio de Janeiro, 20 May (Argus) — Brazil is arguing that its developing country status allows it to consolidate its position as a major crude producer and is likely to lean on developed countries during much-awaited discussions on moving away from fossil fuels at the UN Cop 30 climate conference in November. Attempts to reach an ambitious outcome on mitigation — cutting greenhouse gas emissions — and actions to move away from fossil fuels were quashed at Cop 29 in Baku last year, and all eyes are on Brazil to bridge divides on this issue . Cop 30 president-designate Andre Correa do Lago has failed to address fossil fuels in his two letters outlining priorities for the summit, but members of the Cop 30 team have indicated the issue will be on the agenda. With geopolitical tensions and energy security questions redirecting government priorities away from the energy transition, the outlook is more challenging than when Cop parties agreed the global stocktake (GST) conclusion on fossil fuels and energy in 2023 . But Brazil is well-placed to take the lead. It is a respected player in climate discussions and has one of the cleanest energy mix — 49pc of its energy and 89pc of its electricity comes from renewables. Its own mitigation efforts prioritize slashing deforestation, which accounts for the lion's share of Brazil's greenhouse gas (GHG) emissions. Non-profit World Resources Institute Brazil describes the emissions reduction target in Brazil's nationally determined contribution (NDC) — climate plan — as "reasonable to insufficient" and notes that energy emissions are expected to increase by 20pc in the decade to 2034. Its NDC avoids any concrete steps towards winding down crude. After you The government's view on fossil fuels is that Brazil's developing country status, the oil and gas industry's importance in its economy and comparatively low fossil fuel emissions justify pushing ahead with oil production. Correa do Lago said earlier that Belem was picked as a venue for Cop 30 to show that Brazil is still a developing country, adding that any decision on oil and gas should be taken by Brazil's citizens. President Luiz Inacio Lula da Silva said that oil revenue will fund the energy transition. It is a position that has earned Brazil accusations of hypocrisy from environmentalists at home and abroad, but which also places it as a possible model for other hydrocarbon-producer developing countries. Brazil's diplomatic tradition of pragmatically balancing seemingly opposing positions could serve it well here, said Gabriel Brasil, a senior analyst focused on climate at Control Risks, a consultancy. He does not see Brazil's attempt to balance climate leadership with continued oil production as hurting its standing among fellow parties or energy investors. Civil society stakeholders hope pre-Cop meetings will help bring clarity on how Brazil might broach the fossil fuel debate. Indigenous groups, which are set to be given more space at Cop, are demanding an end to fossil fuel extraction in the environmentally sensitive Foz do Amazonas offshore basin. Meanwhile, Brazilian state-owned Petrobras moved one step closer to being authorized to begin offshore drilling there . During meetings of the UN climate body — the UNFCCC — in Panama City this week, the Cop 30 presidency will present ideas for the summit "with a focus on the full implementation of the GST". But it has to wait for countries to update their NDCs to gauge what is achievable on mitigation. Only 20 have submitted new NDCs so far, with the deadline pushed back to September. Brazil's own NDC gives some clues. It welcomes the launch "of international work for the definition of schedules for transitioning away from fossil fuels in energy systems" and reiterates that developed countries should take the lead. And a report commissioned by Brazil's oil chamber IBP and civil society organization ICS to be given to negotiators ranks Brazil as a "mover" in the transition away from oil and gas, ahead of "adapters" like India and Nigeria but behind "front-runners" Germany and the US. The research develops the idea of a country-based transition plan, using criteria such as energy security and institutional and social resilience, as well as oil and gas relevance. By Constance Malleret 2023 Brazil emissions sources Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nuclear issue splits Australia’s opposition coalition

20/05/25

Nuclear issue splits Australia’s opposition coalition

Sydney, 20 May (Argus) — 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. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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