PJM moves to curb data center grid disruptions

Spanish Market: Electricity
10/09/26

Electric grid opreator PJM Interconnection is proposing new reliability requirements for data centers and other large power users following an event this summer in which nearly 4,000MW of load unexpectedly disconnected from the grid in northern Virginia.

The proposal would require large loads to remain connected through transmission disturbances that are normally cleared by system operators, rather than automatically disconnecting and switching to on-site backup generation. The requirements are intended to prevent sudden load losses that can create imbalances between load and generation and trigger voltage and frequency shifts, PJM said Thursday.

The proposal follows a July 22 event in which nearly 4,000MW of data center load disconnected from the PJM system and switched to backup generation. The sudden drop off forced operators to manage resulting imbalances between load and generation, as well as spikes in transmission voltage and system frequency.

PJM's proposal mirrors a growing effort by grid operators to address operational risks associated with large computing loads. The Electric Reliability Council of Texas implemented similar ride-through requirements for large data centers and cryptocurrency mining facilities on 1 August, after a similar event occurred in its operating region.

PJM said the incident was the third measurable large-load disconnection event in the past two years. "This type of operation is unsustainable and needs to be addressed," said David Souder, executive director of system operations at PJM Interconnection.

Earlier this year, the Federal Energy Regulatory Commission (FERC) directed PJM to identify gaps in how it evaluates the reliability impacts of large loads, including ride-through requirements. PJM said it expects to file proposed ride-through standards with FERC in November.

By Jasmina Kelemen

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10/09/26

FERC approves more gas pipelines in southeast US

Washington, 10 September (Argus) — The $1bn Kosciusko Junction pipeline expansion and an uprate of a pipeline supplying Plaquemines LNG are the latest major natural gas projects the US Federal Energy Regulatory Commission (FERC) has approved in the southeast US. FERC approved the two projects on Thursday, the latest action in a continued build-out of gas pipeline capacity in southeastern states that are facing surging gas demand from power plants and LNG export terminals. On 31 July, the agency separately approved Kinder Morgan's $3.5bn South System Expansion 4 project and its $1.7bn Mississippi Crossing project , two related projects that will transport up to 2.1 Bcf/d of gas from Mississippi to Georgia. The White House finished federal permitting of the Mississippi Crossing project earlier this week. "There's a clear need to expand the natural gas pipeline network in the region to secure affordable, reliable energy for the families and businesses located there," FERC chairman Laura Swett said Thursday at the agency's open meeting. The Kosciusko Junction project, backed by US midstream operator Boardwalk Pipeline Partners, is set to add 1.2 Bcf/d of capacity to company's existing Gulf South system, transporting more gas from shale production areas to delivery markets in the southeast. US utility Southern Company has signed a 20-year deal for two-thirds of the new capacity, which it plans to use to meet rising demand for electricity. Swett said the agency expedited its review to approve the project within a year. The uprate to the gas pipeline supplying Plaquemines LNG will not require new construction but instead allow project developer Venture Global to increase gas flows on its existing Gator Express pipeline. Venture Global said it has found the "frictional loss" of the pipeline was lower than expected based on actual operations, which will allow the company to increase its design capacity by 627mn cf/d to 4.6 Bcf/d. FERC has stopped "weaponizing" federal environmental reviews to slow down pipeline approvals, agency commissioner David LaCerte, a Republican, said. "There is no longer a never-ending swamp of cumulative effects analysis to force industry to navigate," he said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

High demand drives EEX new Bess hedging products

10/09/26

High demand drives EEX new Bess hedging products

London, 10 September (Argus) — "High client demand" was behind Leipzig-based power exchange EEX's decision to launch battery-focused Top-to-Bottom (TBx) futures, EEX chief executive Tobias Paulun told Argus today on the sidelines of a press briefing. These new products, which will go live on 21 September, will allow participants to hedge the difference between the highest and lowest-priced hours within a day. This provides a certain degree of optionality and a hedge for battery energy storage systems (Bess) providers and utilities, Paulun said. The clearing house is launching a two-hour TB2 version across a handful of markets, including Germany, France, Italy and the UK, as well as a four-hour TB4 version in Italy and Spain. If the launch is "successful", EEX will extend to other markets, Paulun added. EEX senior business developer Viviana Ciancibello told Argus that the exchange is not planning on extending to a six-hour TB6 version because it would be too similar to the peak profile and would break up liquidity. She added that a four-hour product could be a suitable enough hedge for a six-hour battery. European Bess capacity is expected to exceed 150GWh this year, according to lobby group SolarPower . And the group forecasts that capacity could grow by 42pc/yr in 2027-30 to 582GWh, based on its 'medium' scenario, and to as much as 735GWh under the 'optimal' scenario. BNP Paribas' head of exotic gas and power trading, Yiwen Wu, said batteries are strategic assets for Europe. "Everyone is hearing about gas storage, but I would say batteries are equally important and will be more important in the future for the security of energy supply and for grid stabilisation," he said. The combination of inflated gas prices, prolonged heatwaves and droughts stressed Europe's power system this summer, Centrica Energy flexibility portfolio manager Jeroen Gillis said. "That's created a lot of additional spreads on these short-term power markets. With batteries, that translates into higher revenues as this flexibility is more valuable," he added. Paulun said the exchange also constantly discusses the addition of weather derivatives with market participants, as renewables play a growing role in energy systems and the impact of weather patterns increases. "So far, the consensus has been that ultimately the impact of weather patterns is best reflected in the market price for electricity," he said. "If we provide more specific products, then you naturally have also a smaller client base. So that's why we haven't decided to launch [weather derivatives] so far, but that may well change in the future." By Ilenia Reale Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

August was joint-hottest month on record: EU Copernicus

10/09/26

August was joint-hottest month on record: EU Copernicus

London, 10 September (Argus) — Last month was the hottest August globally on record, and tied with July 2023 as the joint-hottest month recorded, data from EU earth-monitoring programme Copernicus show. The global average surface air temperature in August was 16.96°C, 0.85°C above the 1991-2020 average and 1.65°C above the pre-industrial average, Copernicus data show. It was the first month since November which was recorded as above 1.5°C higher than the pre-industrial era. The Paris climate agreement seeks to curb the global rise in temperature to "well below" 2°C above pre-industrial levels, and pursues a 1.5°C limit. Western Europe experienced its warmest summer on record, surpassing the previous record set in 2003, Copernicus said. The region recorded "further heatwaves" in August, "continuing an exceptional run of extreme heat that began in May", Copernicus noted. Severe drought conditions were reported across much of Europe, including in France, the UK, Hungary, Romania and Serbia, affecting power output , transport and agriculture. European river flows were "exceptionally low", including for the Rhine , Danube, Southern Bug and Dnieper rivers, Copernicus added. The joint-highest monthly average sea surface temperature for non-polar oceans was recorded in August. It stood at 21.07°C, on par with March 2024, Copernicus said. The highest daily sea surface temperature was also recorded in August, at 21.11°C for non-polar oceans. Ocean temperatures are also extremely high in much of the tropical Pacific, where El Nino conditions "are present and forecast to further strengthen in the coming months", Copernicus said. The current El Nino event is widely expected to be one of the strongest ever recorded. El Nino, a naturally-occurring weather pattern, typically leads to higher global temperatures. Its effects — and those of its opposite pattern, La Nina — vary across regions, but can significantly shift rainfall and temperature patterns. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US squeezes Cuba's renewable power efforts

08/09/26

US squeezes Cuba's renewable power efforts

Kingston, 8 September (Argus) — Cuba's efforts to increase renewable power production and mitigate the impact of tightened US sanctions on its weakened electricity system are being undermined by Washington's threats against shipping companies supplying the equipment, foreign minister Bruno Rodriguez said on Monday. Cuba has been rapidly developing solar power capacity, but further progress is being curbed as "shipping companies that should bring solar panels or batteries for the new photovoltaic parks are being intimidated, threatened and harassed" by Washington, Rodriguez said. Solar parks developed mainly with Chinese equipment deliver about 10pc of Cuba's power, according to the government that has set a target of 24pc by 2030. Cuba lost access to crude imported mainly from Venezuela following the US' 3 January overthrow of Venezuelan president Nicolas Maduro. The US blockade to force political and economic change in Cuba deprived the island of about 100,000 b/d of imports, causing extensive fuel shortages and frequent and long power blackouts as it depends on domestic production of 40,000 b/d. Cuba's power plants delivered 1.16GW on Monday to meet demand of 2.79GW, according to state power utility UNE. "The US threatens shipping companies and prohibits them from transporting even parts and pieces for thermoelectric plants or photovoltaic systems, even those that have been already paid for," Rodriguez said. The US earlier imposed charges against Cuba's state oil company Cupet and its subsidiaries and on the island's oil industry equipment importers. "These designations reflect [US president Donald] Trump's unwavering vision for a free Cuba," US state secretary Marco Rubio said last week in announcing new sanctions. "Cuba's communist regime elites preside over a failed state where ordinary Cubans go hungry." Havana and Washington "have been holding talks and we continue communicating with the US, but there has been no progress in the negotiations due to the lack of political will on the part of the US", Rodriguez said. Cuba received 730,000 bl of crude from Russia in April — the first imports since January — that was processed and exhausted in May, according to state media. "A diagnosis of the Cuban electro-energy system at the end of May reflects that there are around 1.4GW of capacity that does not generate electricity due to a lack of fuel," Rodriguez said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Oil services giant SLB steps up bet on data centre boom

08/09/26

Oil services giant SLB steps up bet on data centre boom

New York, 8 September (Argus) — SLB, the world's biggest oil field services contractor, expanded its push into data centres last week after agreeing to buy German cooling-equipment maker Kelvion for $3.4bn. The deal marks the latest example of how oil services firms are making steady inroads into the fast-growing data centre business underpinning the artificial intelligence (AI) boom, leveraging their manufacturing and engineering expertise built up through developing large-scale energy projects over decades. The acquisition of Kelvion, which provides thermal management and heat exchange technologies, will more than double SLB's revenue potential per gigawatt of delivered capacity. Kelvion is seen by analysts as a natural fit for SLB as the latter seeks a bigger role in the data centre space and looks to expand its technology offerings. The acquisition will allow SLB to "add more revenue breadth but also get into more of the thermal management, which they can package into their modular-type of product", US-based Melius Research analyst James West says. SLB is focusing on the infrastructure needs of data centres, while close rival Baker Hughes has so far targeted the power generation side of the market. Oil and gas will continue to be the key driver of growth for SLB and its rivals, but they are increasingly positioning themselves as industrial and energy technology companies. Data centres are a natural extension of their talent base. "You have to consider that they are one of the biggest employers of engineers on the planet," West says. "A lot of the data centre infrastructure is engineering and construction-type jobs — it's something they already do." The deal was announced at a time when data centres are facing growing opposition from local communities in the US, spurred by concerns over noise pollution, rising utility bills and high water consumption. This resistance is only set to intensify ahead of November's midterm elections, leading some lawmakers to withdraw their support and back a regulatory crackdown, including pauses in project approvals. As a long-time champion of data centres, US president Donald Trump recently warned that local communities risk ending up "backwards and poor" if their protests cause projects to be cancelled. Diversification strategy But public pushback is unlikely to dissuade the oil field services sector from looking to diversify beyond its core oil and gas business and tap the growth potential of data centres. With forecasts showing electricity demand is set to soar in the coming years due to the AI boom, more deals may lie ahead. In July, SLB teamed up with smaller rival Liberty Energy on data centre infrastructure and power projects. SLB is also serving as the modular design partner for US chip manufacturer Nvidia's AI factories, and has been selected by technology giant Meta to support a major data centre development in Canada. SLB is acquiring Kelvion from funds managed by majority owner Apollo and minority holder Triton. The transaction is expected to close in the first half of 2027 and includes about $700mn in debt. Following the acquisition, SLB is targeting revenue of $4.5bn-$5bn from its combined data centre solutions business in 2028. The deal will not affect spending allocated to SLB's core oil services business or digital operations. And investments in its data centre unit will be funded by cash flows generated by the business as well. While the investment case for the oil services sector has been buoyed by this year's rally in oil prices and prospects for the re-opening of Venezuela to international oil companies, the data centre business offers another revenue opportunity. "It's accretive to earnings, it creates cash flow, it's low capital intensity," says West at Melius. "There's just a lot of very positive momentum right now." By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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