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French Bugey nuclear cuts likely from 25 June: EdF

  • Spanish Market: Electricity
  • 19/06/25

High temperatures on the River Rhone are "likely" to drive production cuts from nuclear plants along the river, especially Bugey, according to French utility EdF.

The potential cuts will be reviewed on 24 June, and a specific publication will detail the cuts if they are confirmed, EdF said.

France is about to see a combination of a heatwave and dry spell, with daily highs in Grenoble forecast to remain mostly above 30°C until the beginning of July.

The combination of heat and a lack of rain in the Alps has increased the chance of hotter water and lower flows on the Rhone, which could have a knock-on effect on France's nuclear fleet. Eight of the country's 57 reactors discharge their cooling water directly into the river, and environmental regulations limit the temperature at which they can do this, meaning if the river's flow is low and temperatures high, the units can be forced to reduce output.

Flows out of Lake Geneva — where the Rhone leaves Switzerland and enters France — have remained at 239-328 m³/s since 2 June. Earlier in the month this was within the 25th to 50th percentile of historical values, but is now slightly below the 25th percentile, as flows typically increase in June to peak at the end of the month and into July.

The low outflows are reflective of low inflows, as the lake's level is regulated by the Seujet dam at the lake's exit to the Rhone, which keeps its level about 1m all year. The lake's level typically falls in the first quarter and rises in the second to a peak in June and July, and the level has been creeping up over June in line with the historical trend.

The outflow's average temperature of 20.9°C on Wednesday was between the 75th and 95th percentile for the date.

A convention between France and Switzerland guarantees that the flow of the Rhone upstream of Bugey, the first nuclear plant on the river, is to remain above 150 m³/s, with the potential for release of water from the Emosson reservoir in Switzerland to the Arve River to achieve this. In recent days, flows at Bugey — combining outflows from Lake Geneva and tributaries of the Rhone, which have brought more than 100 m³/s — have been well above this minimum.

And thermal limits for Bugey are set at a maximum temperature downstream of the plant of 26°C and a maximum temperature difference between upstream and downstream of 5°C. If grid operator RTE determines that the plant is necessary to maintain supply, this maximum limit can increase to 27°C, but with only a 1°C temperature difference allowed.

Only two of Bugey's four units discharge their cooling water directly into the Rhone, with the other two using cooling towers, which sharply reduce their thermal impact on the river, and so the extent to which the regulations affect them.

If water flows were at their minimum of 150 m³/s, and at a temperature of 21°C upstream of the plant, this stream would have the capacity to carry 3.14GW of waste heat away from the plant before hitting the regulatory limit of 5°C of temperature difference and 26°C maximum temperature downstream. This is less than the roughly 3.8GW of waste heat generated by Bugey 2 and 3 operating at full power, including their thermal power of 5.6GW less their electrical power of 1.8GW. Bugey 4 and 5 contribute a small amount of extra waste heat downstream, as their cooling towers do not completely eliminate waste heat.

Both units have had to stop at moments in the past two years because of heat-related constraints. In the last period when Bugey was constrained, in mid-August, flows leaving Lake Geneva were significantly hotter than now, roughly 24-26°C. At that point, output from Bugey 2 was reduced to zero, before a sharp fall in water temperature to roughly 20°C by 18 August allowed constraints to be lifted. But air temperatures in the region are forecast to remain elevated for the next two weeks, which will boost water temperatures over time. Daily highs in Sion, Switzerland, are seen at 3-4°C above the norm through to the beginning of July.

Temperatures and flows at reactors further downstream which do not possess cooling towers — 2.6GW Saint Alban and 3.6GW Tricastin — are affected by other flows on tributaries to the Rhone, which cool the river down and increase its volume after passing Bugey.


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09/07/25

Japan’s 75MW Sodegaura biomass power plant starts up

Japan’s 75MW Sodegaura biomass power plant starts up

Tokyo, 9 July (Argus) — The 75MW Sodegaura biomass-fired power plant started commercial operations on 8 July, after it was delayed from coming on line because of a silo fire in January 2023. The plant in eastern Japan's Chiba prefecture is operated by Japanese gas company Osaka Gas' subsidiary Daigas Gas and Power Solution, and burns around 300,000 t/yr of wood pellets, mainly imported from southeast Asia. It is designed to generate up to 520GWh/yr of electricity, which will be sold under Japan's feed-in-tariff (FiT) scheme at ¥24/kWh (16¢/kWh). The plant was previously scheduled to come on line in February 2023, but the start-up was delayed by a fire in January that year . The fire happened during test runs at the plant, and the cause was likely the self-heating of wood pellets stored for more than six months in two silos. Osaka Gas only managed to put the fire out completely in May 2023, and finished removing all remaining wood pellets from the silos in April 2024, as the pellets had absorbed sprayed water and swelled. The company has put in place safety measures after the incident. Osaka Gas also operates the 75MW Hirohata biomass-fired power plant in Japan. The company also plans to start commercial operations at the 50MW Gobo plant in September this year. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Heatwave eats into Japanese utilities’ LNG stocks


09/07/25
09/07/25

Heatwave eats into Japanese utilities’ LNG stocks

Osaka, 9 July (Argus) — LNG inventories at Japan's main power utilities fell for the second consecutive week during the week to 6 July, as hotter than normal weather boosted electricity demand for cooling and increased gas-fired generation. The utilities held 2mn t of LNG inventories on 6 July, down by 7pc from a week earlier and by 12pc from the recent high of 2.27mn t on 22 June, according to a weekly survey by the trade and industry ministry Meti. But the latest volume was almost in line with the 1.99mn t recorded for 7 July 2024. A large part of Japan has experienced unusually hot weather since the middle of June, with the country's environment ministry, together with the Japan Meteorological Agency, occasionally issuing heatstroke alerts. This boosted the country's power demand to an average of 113GW during the 30 June-6 July period, up by 10pc on the week and by 7pc from a year earlier, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). Firm electricity demand encouraged power producers to raise gas-fired output by 9.1pc on the week to an average of 36GW during the week to 6 July, the Occto data showed. Coal- and oil-fired generation also rose by 22pc to 31GW and 49pc to 1GW, respectively. Generation economics for Japan's gas-fired power plants improved with higher wholesale electricity prices, which was supported by stronger bidding demand. Margins from a 58pc-efficent gas-fired unit running on spot LNG averaged ¥2.82/kWh ($19.18/MWh) across 30 June-6 July, up from the previous week's ¥0.88/KWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia — and Japan Electric Power Exchange' systemwide prices. The 58pc spark spread using oil-priced LNG supplies also rose by 35pc to an average of ¥3.90/kWh. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Multilateralism should steer climate finance: Brics


07/07/25
07/07/25

Multilateralism should steer climate finance: Brics

Sao Paulo, 7 July (Argus) — Developed countries must fully engage in climate finance to support developing countries trying to meet Paris agreement goals, top Brazilian officials said at the Brics summit held in Rio de Janeiro on 6-7 July. "One decade after the Paris agreement, [the world] lacks resources for a fair and planned transition," Brazilian president Luiz Inacio Lula da Silva said. "Developing countries will be the most affected by losses and damages, while they are also the ones that have fewer ways to fund mitigation and adaptation," Lula da Silva said during his keynote address Monday. The Brics summit discussed climate finance in anticipation of the UN Cop 30 climate summit , which will be also be held Brazil, in November. The group issued a declaration that reinforced its commitment to uphold multilateralism as a solution for climate actions, while it also emphasized developed countries' responsibility towards developing countries to financially enable just transition pathways and sustainable development aligned with the Paris agreement. The Cop 29 summit in Baku, Azerbaijan, in November 2024 managed to reach an agreement to allocate $300bn/yr in resources for climate action. But delegates to the upcoming UN Cop 30 summit are targeting at least $1.3bn/yr in public and private funds to tackle climate change, focusing especially on countries that are already dealing with extreme weather conditions and lack financial resources to mitigate it. The Brics also announced a memorandum of understanding on the Brics Carbon Markets Partnership focused on capacity building and multinational cooperation to support climate strategies such as mitigation efforts and emergency resource mobilization. The declaration opposes unilateral protectionist measures, arguing that they "deliberately disrupt the global supply and production chains and distort competition." Climate justice, the fight against desertification, strengthened climate diplomacy and subsidies to environmental services were the main topics of discussion during the Brics summit, Brazil's environment minister Marina Silva said. Brazil will launch its own initiatives to promote climate finance in Cop 30. One program already launched is the Tropical Forest Forever Facility (TFFF) fund that aims to raise $125bn to preserve 1bn hectares of global tropical forests across 80 developing countries. Brics' development bank NDB will target 40pc of its investments to promote sustainable development, such as energy transition. The bank has approved $40bn in investments for clean energy, environment protection and water supply, it said last week. Brazil accounts for $6.4bn of total investments, gathering resources to 29 projects under climate actions, according to the institution. Brazil currently holds the presidency of the Brics, which also includes Russia, China, India and South Africa. Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia and Iran are also members. Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, Nigeria, Vietnam and Uzbekistan act as partner nations. Heated speech During his keynote address, Lula criticized the International Monetary Fund (IMF) as an institution that promotes unilateralism and stressed his support for reforming institutions of the UN to promote multilateralism and political equity for developing countries. He also mentioned that 65 of the biggest banks in the world committed to a $869bn investment to the fossil fuels sector last year. "Market incentives run contrary to sustainability," he said. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IRA rollback to boost US natural gas demand


03/07/25
03/07/25

IRA rollback to boost US natural gas demand

New York, 3 July (Argus) — Cuts to renewable energy tax credits in the budget bill backed by President Donald Trump will likely increase demand for natural gas this decade to generate electricity, as those tax credits would otherwise subsidize the build-out of competing renewable generation infrastructure, according to analysts and industry insiders. Under the landmark bill, which was passed Thursday by the House after clearing the Senate on Tuesday, wind and solar projects only qualify for the clean energy tax credits in former president Joe Biden's Inflation Reduction Act if they begin construction within the next 12 months or are placed into service by the end of 2027. The accelerated timelines for renewable energy infrastructure "will likely slow the growth of renewable capacity," said FactSet senior energy analyst Trevor Fugita. "The legislation is likely to shift the focus from new renewable generation to new natural gas-fired generation, especially as AI data centers drive energy demand higher," he said. Toby Rice, chief executive of EQT, the second-largest US gas producer by volume, in an interview with Argus last week said the bill's effort at "slowing down some renewables could easily add another 1.5-2 Bcf/d" of US gas demand by 2030, especially as coal-fired power plants retire. "If solar and wind investments decrease, that [power] demand is not going away," said Rice, who identified the rollback of clean energy tax credits as key to the investment thesis for his company, alongside surging power demand for data centers and manufacturing and declining associated gas supply amid weak oil prices. EQT expects to produce 6-6.3 Bcf/d of natural gas equivalent this year. Under a previous House-passed version of Trump's One Big Beautiful Bill that required wind and solar projects to enter service by the end of 2027 to be eligible for IRA tax credits, Energy Aspects projected utility-scale solar installations falling from 32.9 GW in 2024 to 27.5 GW in 2027 and 20 GW by 2029. With the Senate's revised bill offering developers a "safer deadline" of alternatively securing the credits by beginning construction within 12 months of the bill's passage, the consultancy now expects a less steep downward trend through 2029, Energy Aspects head of North American power and emissions Michael Lawn told Argus . But utility-scale solar installations would have been on an upward trend through the end of the decade in the absence of the IRA rollback. Jason Grumet, chief executive of the trade group American Clean Power Association, on Tuesday lamented the Senate-passed bill's "very aggressive" 12-month phase out of clean energy tax credits, calling the bill "a step backward for American energy policy." By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU CBAM export plan only partial solution: Industry


03/07/25
03/07/25

EU CBAM export plan only partial solution: Industry

Brussels, 3 July (Argus) — Industry has continued to urge a more comprehensive export adjustment under the EU carbon border adjustment mechanism (CBAM) following the European Commission's announcement of a forthcoming proposal yesterday, with some calling for full free emissions trading system (ETS) allocations for production destined for exports. Norwegian fertilizer firm Yara said the CBAM solution is "not good enough". The commission yesterday announced plans to reduce the risk of carbon leakage for goods exported from the EU in CBAM sectors under proposals to be presented by the end of the year, with the aim of providing equal treatment for all goods, whether produced, sold in the EU, or imported and exported. The commission's stated plans are "not good enough" for Monica Andres, Yara's executive vice-president for Europe. "We need a watertight and timely CBAM implementation to level the playing field with more carbon-intensive imports," Andres added, noting the commission's new proposal does not offer sufficient predictability and leads to an "incomplete" CBAM applying from 1 January 2026. "We would have preferred a solution which maintains full free allocations for the part of the production destined for exports," said BusinessEurope director general Markus Beyrer, adding CBAM is "untested and still incomplete" in its design. European steel association Eurofer said the commission's announcement on CBAM exports lacks the actual legal proposal and details on its design. CBAM sectors had proposed a simple mechanism based on free allocation for exports, Eurofer said, noting a "very limited" impact in reversing industrial decarbonisation given the proposed EU greenhouse gas reduction target of 90pc by 2040 against 1990 levels. Refinery industry association FuelsEurope has similarly called for any CBAM changes to maintain sufficient levels of free carbon allowance allocations and include measures to protect exports, if the measure's scope is extended to the refining sector. The scope of the mechanism so far includes cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. The commission is consulting until 26 August on extending CBAM's scope to some downstream products and on circumvention risks. EU states and the European Parliament recently agreed to CBAM revisions exempting some 90pc of originally covered EU companies from reporting obligations. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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