Japan's Tepco delays No.6 nuclear reactor reactivation

Spanish Market: Electricity
20/01/26

Japanese utility Tokyo Electric Power (Tepco) has decided to postpone the reactivation of its long-idled 1,356MW No.6 reactor at the Kashiwazaki-Kariwa nuclear power plant because of a technical issue.

Tepco had originally aimed to reactivate the No.6 reactor on 20 January. But on 17 January, the company detected that an alarm designed to ensure the safe management of the control rods — which are key to regulate nuclear fission — was not working correctly. Tepco identified errors in the control rod settings and completed repairs on 18 January.

It plans to take one to two days to inspect and ensure safety of all control rods before reactivation. The utility is unsure when it can reactivate the No.6 reactor as it will depend on whether the company can obtain permission from Japan's nuclear regulation authority (NRA). Tepco also said that it can absorb this unexpected delay to restart the plant's commercial operation on 26 February as initially planned, but it could also depend on permission from NRA.

The errors in the control rods settings had been present since the No.6 reactor first entered service in 1996.

Restarting the Kashiwazaki-Kariwa No.6 reactor would represent a milestone for Tepco's efforts to return nuclear power generation after the 2011 Fukushima disaster, marking the utility's first reactor to be resume operations since the meltdown.

The Kashiwazaki-Kariwa plant comprises of seven reactors with a combined capacity of 8,212MW. The No.6 and No.7 units have cleared the stricter post-Fukushima safety inspections. The No.7 unit will be required to remain shut until August 2029 for the installation of anti-terrorism facilities.

Under Japan's stricter nuclear regulations, operators are required to build dedicated anti terrorism facilities — known as specified severe accident response facilities or Tokuju — designed to serve as an independent backup in case of deliberate attacks such as an aircraft crash, ensuring reactors can be safely shut down even if main control systems are compromised. The No.7 unit must remain offline until August 2029 to complete installation of these systems, in line with NRA requirements.

By Nanami Oki

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20/01/26

Origin extends Australia’s Eraring coal plant to 2029

Sydney, 20 January (Argus) — Australian utility and upstream gas firm Origin Energy will continue running the 2,880MW Eraring coal-fired power station in New South Wales (NSW) state until 2029, out from 2027 previously, in the second such extension of the plant's lifetime. Origin's decision comes after the Australian Energy Market Operator's (Aemo) Transition Plan for System Security in December 2025 found that the generator would need to be kept on line beyond its 2027 retirement date due to insufficient replacement capacity. The plant was previously expected to close in 2025 but this was pushed back in 2024, due to insufficient replacement capacity. Keeping Eraring on line until April 2029 will allow for development of more renewables, storage and transmission projects, Origin said in its 20 January announcement. The firm also highlighted "uncertainty regarding the reliability of Australia's aging coal and gas fleet". Origin does not plan to invest in further major maintenance ahead of the plant's closure and will maintain its 2030 target of cutting 20mn t of CO2 equivalent (CO2e) emissions by 2030, based on 2018-19 levels. Eraring's scope 1 emissions were 13.5mn t CO2e in the year to 30 June 2025, Origin reported. The company also holds a 27.5pc share of emissions from the 9mn t/yr Australia Pacific LNG (APLNG) joint venture in Queensland state where it is the upstream operator of the project. No more subsidies The NSW state government's offer to underwrite Eraring's operations for two years will end in 2027 as previously announced. Australia is attempting to transition its electricity markets to become majority renewables-based. Canberra is focusing on a goal of 82pc renewable grid penetration by 2030. But this timeline is unlikely to be realised due to a slow build out of new transmission to connect wind and solar to the grid, many analysts said, while the 2,200MW Snowy 2.0 pumped hydro project — designed to provide longer term storage capacity — has been delayed multiple times due to problems drilling new tunnels. Victoria state, Australia's second largest by population after NSW, is also expected to miss its 2030 renewable energy goal of 65pc generation . Queensland is meanwhile planning to continue to run its coal-fired plants into the 2040s after its state government dumped the previous administration's plans for a giant pumped hydro scheme. Meeting Australia's 2030 emissions reduction target of 43pc below 2005 levels is contingent on the retirement of major CO2 emitters such as Eraring , according to a 2025 government report. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

IMF warns of major risk to growth from US-EU tensions

19/01/26

IMF warns of major risk to growth from US-EU tensions

London, 19 January (Argus) — The IMF has upgraded its global economic growth forecast for 2026 but warned an escalation in trade tensions between the US and Europe is a "major risk." US president Donald Trump on 17 January threatened tariffs on several European countries in a bid to acquire the Danish territory of Greenland. This has raised concerns about a potential trade war between Europe and the US. "If we were to enter a phase in which there would be escalation and tit-for-tat policies… that would certainly have even more of an adverse effect on the economy, both through direct channels, but also through confidence, investment, and potentially through a repricing by [financial] markets," IMF chief economist Pierre-Olivier Gourinchas said at the launch of the IMF's World Economic Outlook Update (WEO) today. The IMF raised its global growth forecast for 2026 by 0.2 percentage points to 3.3pc, citing improvements in the US and China, and kept its projection for 2027 unchanged at 3.2pc. It puts 2025 economic growth at 3.3pc, from a previous 3.2pc. IMF forecasts are used by many economists to model oil demand projections. The IMF has repeatedly upgraded its growth projections since April 2025 and now sees 2025 and 2026 growth higher than when US-led tariff disruptions started in early 2025. The outlook's economic assumptions are current as of 31 December so do not take into account the US' latest tariff threat against European countries. It assumes an effective tariff rate of 18.5pc for US imports from the rest of the world. Any change to this would be a major risk," Gourinchas said. "This is something that could materially impact growth if we have higher levels of tariffs, if we have higher levels of geopolitical tension." The IMF said the US-led investment boom in AI and strong fiscal stimulus in China and Germany was offsetting economic losses associated with higher tariffs. But Gourinchas warned that debt financing in the AI sector was becoming more prevalent, and this could "amplify shocks if returns failed to materialise." He said any correction in AI stock market valuations would have far reaching negative effects or the global economy. The IMF said fiscal discipline is weakening across the globe, particularly in advanced economies. "The risk here [is] that countries will be unable to face the significant challenges ahead in terms of population aging, climate transition, national security or ability to support the economy, should a large shock occur," Gourinchas said. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Fortescue starts building 133MW Australian wind farm

16/01/26

Fortescue starts building 133MW Australian wind farm

Sydney, 16 January (Argus) — Australian metal and energy producer Fortescue has started building its 133MW Nullagine wind farm in Western Australia to decarbonise its terrestrial iron ore operations by 2030. The 17-turbine wind farm is expected to be completed by mid to late-2027, a Fortescue spokesperson told Argus on 16 January. Fortescue's Nullagine project will help it achieve its 2030 target of zero terrestrial iron ore-related scope 1 and scope 2 CO2 equivalent (CO2e) emissions. The company generated 2.6mn t of CO2e scope 1 emissions over the July 2024–June 2025 financial year. It expects to surrender 240,000 Australian Carbon Credit Units or Safeguard Mechanism Credits to meet 2024-25 regulatory requirements under the Safeguard Mechanism — Australia's excess carbon pricing scheme. Fortescue will build 2-3GW of renewable generation and storage by 2030 to support its decarbonisation target, it said. The company plans to spend $900mn-1.2bn on decarbonisation investments in 2025-26, with a focus on fleet electrification and renewable energy projects. Fortescue installed a five-hour, 250MWh battery system in Western Australia in December 2025. It is also building a 190MW solar farm at its Cloudbreak mine , which is expected to slash diesel consumption by 125mn litres/yr. "Wind — alongside solar and batteries — provides the dependable, low-cost power we need to electrify our haul trucks, drills, processing plants and rail across the Pilbara," Fortescue Metal and Operation's chief executive office Dino Otranto said. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Laos-Singapore renewable power trade resumes

15/01/26

Laos-Singapore renewable power trade resumes

Singapore, 15 January (Argus) — Three southeast Asian national utilities have settled terms to send 100MW of renewable energy generated in Laos to Singapore, the firms announced on 14 January, resuming cross-border power trade that ended in 2024. Power from Laos will be transmitted through existing interconnections in Thailand and Malaysia before reaching Singapore, under a two-year agreement between Malaysia's Tenaga Nasional Berhad, Laos' Electricite Du Laos and Thailand's Electricity Generating Authority of Thailand signed on 14 January and effective as of the same day. A similar scheme titled LTMS-PIP existed in 2022-24, and about 280GWh of hydropower was transacted as of late 2023. The new scheme LTMS-PIP 2.0 had been under discussion but was not fully implemented until now. Total capacity traded under LTMS-PIP 2.0 will be up to 200MW, with 100MW of additional supply from Malaysia announced in 2024. Malaysia also has a separate scheme, Enegem, for selling renewable power to Singapore. The first 50MW deal was signed in 2024. A second auction round of undisclosed capacity opened late last year, and the results have not been announced. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Viewpoint: Coal plant extensions not always easy

14/01/26

Viewpoint: Coal plant extensions not always easy

Houston, 14 January (Argus) — US generators are starting this year with more coal-fired power plants open than previously planned, following a series of US Department of Energy (DOE) emergency orders, but maintaining generation from these facilities might not be easy. Since late May, US energy secretary Chris Wright has signed orders to keep at least parts of five coal plants running beyond their planned 2025 retirement dates. These facilities have a combined generating capacity of 2,128MW. Wright also has indicated he may continue issuing such orders to address near-term reliability issues and potential energy supply shortages in the next few years. While some power plant operators may welcome the orders, others are more reticent. "I think the executive orders make for lots of questions in our current environment," one market participant said. "As with anything, there are lots of legal challenges that will arise, and it all could change again in a few years" under a new administration. The nature of the orders also raises logistical concerns that some power plant operators warned could affect their ability to comply. Last year, Wright issued the orders shortly before the facilities were scheduled to close. That kind of timetable can be challenging for plant operators who typically have spent months winding down fuel orders and making other preparations to permanently close a facility. The orders also have 90-day limits that can be extended, and Wright has not shied away from renewing directives to keep plants operating. Several coal plants that were either scheduled to close recently or are slated to be retired in the near future have not received adequate maintenance and upgrades in the last few years that would allow them to keep running sustainably long-term, one operator told Argus . That suggests operators could face higher rates of unexpected coal unit outages this year or more frequent planned outages as companies catch up on maintenance. For example, unit 1 of the Craig Station coal plant in Colorado, the most recent unit ordered to stay on line for another 90 days, has been out of service since 19 December, following a mechanical failure of a valve. The plant will need repairs and additional investments to continue running into 2026, Tri-State Generation & Transmission — one of the co-owners of the plant — said on 31 December. Some of the utilities that have received emergency orders to keep coal plants open also warned that delaying the facilities' closures could interfere with previous energy transition plans and investments. But Indiana utility NiSource, which received an order to keep its RM Schahfer coal plant on line until at least 23 March 2026, said "our long-term plan to transition to a more sustainable energy future remains unchanged". Other utilities also remain committed to transitioning from coal-fired generation. One operator said the recent emergency orders have merely put the coal industry on "life-support", rather than providing a substantial lifeline beyond the next few years. Many other coal market participants asserted that DOE's orders only require the plants to remain available during their extension periods and, at least so far, have not specified a minimum capacity factor at which they must run. Most of the plants operating in compliance with the emergency orders may just run as peaker plants, only operating at maximum capacity during extreme periods of generation demand. Still, the prospect of keeping the facilities open for an unknown period of time can be a challenge for planning fuel purchases. While some plants that received a DOE order still have a small quantity of coal stockpiled on site, those volumes will only sustain a few more weeks of coal burn, necessitating additional shipments. Other utilities are faced with buying more coal and deciding whether to purchase enough for just the extent of existing orders or to enter into longer-term agreements. Some operators have already opted into multi-year deals because they expect DOE's emergency orders on their plants will keep getting renewed well into the back half of this decade. Many utilities, especially by the end of 2025, found pricing in longer-term purchases to be more stable and economical because constrained supply in most US basins had prompted producers to offer spot coal at higher prices. Tight US coal supply also has led producers to be less willing to agree to options in newer coal contracts that would allow buyers to opt out of taking all of their volume commitments. Because of this, some utilities that have received orders from DOE have limited their additional coal purchases to deliveries only in 2026. Some utilities also said that they can not justify issuing longer-term requests for proposals to state regulators and ratepayers, since the DOE orders are only issued for 90 days. The US House of Representatives in mid-December passed a bill that aims to address some utility concerns. The Power Plant Reliability Act of 2025 would authorize the US Federal Energy Regulatory Commission (FERC) to require an owner or operator to continue running a power plant for up to five more years if the commission finds that its closure could threaten grid reliability. The bill would protect plant operators from penalties for potentially violating state or federal environmental laws while FERC's order is in place. And it would authorize FERC to renew an order by another five years if requested by a transmission organizer, state commission or public utility. The US Senate has not yet scheduled any action on the bill. And even if the measure is enacted, it will only address some of the uncertainties power plant operators face. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Japan's Tepco delays No.6 nuclear reactor reactivation

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