Romania withdraws power traders' profit margin cap bill

: Electricity
26/02/05

The Romanian energy ministry issued an emergency ordinance on Wednesday that would limit the level of profit that could be made from electricity and gas trading, but withdrew the document from its website later that day.

The ordinance envisaged the introduction from 1 April of a temporary mechanism that would limit the profit margin for electricity and gas trading activities to a maximum of 3pc, and for electricity and gas supply transactions to 5pc. Power and gas producers as well as transmission and distribution system operators would be exempt from this mechanism.

The ministry defined the commercial mark-up as the difference between the selling price and the sum of the purchasing price along with the operational costs associated with the trading activity. The scheme would be in place until 31 March 2027, aiming to address recent increases in electricity and gas prices for consumers. The bill indicates that the ministry is considering whether market participants have raised final prices to levels that do not reflect the real cost of production, making it increasingly challenging for consumers to be able to pay their bills, generating market distortions, reducing the competitiveness of the country's economy, and exacerbating the risk of energy poverty.

The bill has sparked uncertainty, despite its immediate withdrawal, because it shows the ministry's intentions, market participants told Argus on the sidelines of the Energy Week Black Sea conference in Bucharest. The introduction of such a scheme would reduce market liquidity and make the signing of power purchase agreements (PPAs) almost impossible by increasing exposure, market participants told Argus.

Romanian energy regulator Anre last year introduced a mechanism requiring market participants to provide a financial guarantee for each electricity purchase made on the country's forward trading platforms, in an attempt to discourage players from purchasing large volumes of electricity only to resell them before delivery to take advantage of price differentials.

By Apostolos Tsarikas

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26/02/05

Octopus acquires Australia battery storage projects

Singapore, 5 February (Argus) — Octopus Australia, a subsidiary of UK firm Octopus Investments, has acquired the Hanworth and Dunmore battery storage projects, as part of its plan to accelerate the direct replacement of retiring coal-fired plants with stable renewable energy sources. The 1.2GW/4.8GWh Hanworth battery energy storage system sits in New South Wales (NSW), while the 150MW/300MWh Dunmore battery project in Queensland comes with a 300MW solar farm. The acquisitions mark the newest additions to the company's A$16bn ($11.2bn) renewable project pipeline Octopus took over the Hanworth project from Australian energy developer Enervest, Octopus said on 4 February. The project connects to Transgrid's Bannaby Terminal Station and will help facilitate low-emission power supply at stable prices, it said. The company has also taken over the Dunmore project from Samsung C&T Renewable Energy Australia. Australia is turning to renewables to transition its electricity markets, and it has set a target to achieve an 82pc share of renewables in the grid by 2030. But slow transmission build-out to integrate wind and solar into its electricity grid is hampering progress. "While some investors are stepping back, we're stepping forward," said Octopus Australia's chief executive officer Sam Reynolds. "Australia still needs new power stations to replace ageing coal plants." The latest acquisition follows Octopus' purchase of the 100MW Coleambally battery storage project located at NSW's Murrumbidgee late last year from Australian renewable firm Risen Energy. The company also started the construction of two other projects — the Blind Creek project and the Fulham solar farm and battery storage project last year. The Blind Creek project has a 300MW solar farm with 243MW/486MWh battery storage, valued at around A$900mn. The Fulham project includes 80MW of solar capacity paired with 128MWh of battery storage, and is valued at over A$300mn. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Italian net imports from Switzerland at lowest in Jan

26/02/04

Italian net imports from Switzerland at lowest in Jan

London, 4 February (Argus) — Italian net imports from Switzerland fell to a record low in January as Switzerland faced tight supply and higher generating margins for Italian gas-fired units incentivised more domestic gas burn. Italy net imported about 860MW from Switzerland last month, falling nearly threefold from the 2.4GW net imported in January 2025. The Italian January forward contract expired at a €2.60/MWh discount to Switzerland, compared with a €8.50/MWh premium for January last year. And the Italian single national price (Pun) index delivered nearly €0.50/MWh below the Swiss spot over 1-31 January 2026. The north zone delivered less than €0.10/MWh below Switzerland. Overall Italian net imports fell significantly on the year — down to 4.4GW from 6.6GW in January 2025 — as exports hit their highest since 2020 at 1.1GW and imports were the lowest since 2022 at 5.6GW. Exports to Switzerland were the highest in three years for any given month in January at 424MW. Exports peaked on average over 11:00-12:00 local time, coinciding with peak Italian wind generation, which averaged 4GW across all hours, nearly doubling on the year. Milan was hit by a cold spell at the beginning of the month, with overnight lows 4.3°C below seasonal norms on 1-12 January, bottoming out at minus 8.7°C on 8 January. Overall, demand in January averaged 34.1GW, around 1GW above the five-year average. While demand was up on the year, so was domestic generation, which increased by about 10GW to 30GW — the highest for January since 2022 — as gas burn was around 5GW above the five-year January average at 18GW. Each hour recorded higher gas-fired generation on the year on average in January, with output peaking over 16:00-19:00 local time. Working day-ahead clean spark spreads for 55pc-efficient units in January averaged €36.74/MWh, compared with €25.41/MWh over the same month last year, as working day-ahead PSV gas averaged over €10/MWh lower on the year — cushioned by expectations of looser global LNG supply — despite increased EU emissions trading system (ETS) allowances. Meanwhile, Swiss nuclear generation was around 1GW lower on the year last month, according to Fraunhofer ISE data, as the 1.02GW Gosgen nuclear plant remained off line in an outage. And hydro run-of-river and reservoir output were down by 540MW and 140MW, respectively, as rainfall in Sion averaged 1.6 mm/d lower than in January 2025. Although pumped storage output recorded a small 20MW increase — likely on higher demand and to make up for the drop in baseload capacity — hydropower stocks continued to widen their deficit to the long-term average over last month. Swiss load was up by around 330MW, supported by minimum temperatures around 1.6°C lower on the year on average in Zurich. And Switzerland flipped on the year to net exporting 117MW to Austria last month — after net importing 351MW in January 2025 — due in part to tightness in eastern and central-eastern Europe, with Ukrainian net imports reaching a record January high , as well as a 243MW curtailment at Hungary's 2GW Paks nuclear plant over last month. But net imports from Germany and France rose by around 225MW and 614MW, respectively, from January 2025. Gosgen's scheduled return to the grid at the end of February will likely ease tightness in Switzerland, potentially allowing for a better accumulation of hydropower reserves owing to the additional baseload capacity buffer. And minimum temperatures and rainfall in Sion are forecast at a respective 1.6°C and 3.6 mm/d above the norm over 1-20 March, which could provide additional price pressure. Similarly, minimum temperatures in Milan are forecast to be 1.6°C above seasonal norms for the first three weeks of March, possibly limiting some heating demand. And rainfall in Malpensa is expected to be 1.3 mm/d above averages over the same period, likely contributing to national reserves, which are currently at a large deficit to the norm. Clean spark spreads for 55pc-efficient units for March were last assessed by Argus at €21.65/MWh, slightly up on the year. But Switzerland's front-quarter discount to Italy has widened by €3.10/MWh over the past month as the latter has made faster gains. While low snowpack at the Donin du Jour and L'Ecreuleuse stations — both below the historical average as of 4 February — currently points to below-average second and third-quarter snowmelt in Switzerland, further decreasing the chance of the country replenishing its hydropower reserves over summer, even weaker hydro conditions later in the year could be expected in Italy. Italian snow water equivalent has remained consistently below seasonal norms since November, according to meteorological association Cima. Widespread snowfall in late December helped tighten the national deficit to the 2011-24 average to approximately 33pc as of 10 January, from 52pc on 13 December, the latest data show. And snow accumulation at higher elevations, which contributes more to the spring and summer water reserves, has remained well below expectations. By Bea Leverett and Ilenia Reale Swiss January net exports GW Italian wda clean sparks for 55pc-efficient units €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan eyes Qatar for emergency LNG supply

26/02/04

Japan eyes Qatar for emergency LNG supply

Osaka, 4 February (Argus) — Japan's trade and industry ministry Meti on 3 February signed a non-binding initial agreement with the country's largest power producer Jera and state-owned QatarEnergy (QE) to establish a trilateral co-operation framework enabling the supply of additional LNG cargoes during emergency situations. The deal allows Meti to request QE to consider supplying additional LNG to Japanese buyers, including Jera, if tight global LNG markets or large-scale domestic disruptions threaten Japan's energy stability. The parties will then consult on appropriate response measures. Qatar, one of the world's largest LNG producers, has been a key supplier to Japanese utilities for nearly three decades. It provided emergency LNG cargoes to Japan following the Fukushima nuclear disaster in 2011 to help mitigate the impact of nuclear reactor shutdowns — an experience that helped shape the new framework, Jera said. These potential buffer LNG volumes from Qatar are in addition to a recent 3mn t/yr long-term contract signed by Jera and QE. The firms signed a 27-year supply agreement on 3 February to buy up to 3mn t/yr of LNG from 2028. The LNG will be supplied on a delivered ex-ship (des) basis, likely from the 16mn t/yr North Field South expansion, which is due to start production in 2027. Jera has declined to comment on the price formula and destination flexibility. Jera also currently holds a term contract with state-owned Qatargas to purchase 700,000 t/yr of LNG through 2028. This deal was originally signed in 2012 by Jera's 50pc shareholder Chubu Electric Power for 15 years, covering 1mn t/yr from 2013-17 and 700,000 t/yr for 2018-28. The company used to have a term contract for 5.5mn t/yr from Qatar, which expired in December 2021. Japan received 3.4mn t of LNG from Qatar in 2025, which accounted for 5.3pc of the country's total imports, according to data from the finance ministry. This is down from 18.4pc in 2013. Jera is gearing up to build an LNG portfolio that exceeds its downstream obligations, because underestimating demand and being forced to buy spot cargoes would pose a greater risk. The company aims to maintain its LNG handling volumes at no less than 35mn t/yr with diversified supply sources until the April 2035-March 2036 fiscal year. It signed multiple deals for 5.5mn t/yr of US LNG in 2025, with some of these deals extending to 2050. LNG could continue playing a vital role in ensuring stable electricity supplies in Japan, even during energy transition toward the 2050 net-zero emissions goal, because the rapid adoption of artificial intelligence would boost power demand. Renewable capacity is expected to increase, but weather-dependent solar and wind output still require back-up thermal capacity. It is also unclear how many nuclear reactors will return over the next decade. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Dutch government focuses on power grids

26/02/02

Dutch government focuses on power grids

London, 2 February (Argus) — The new Dutch government is focusing on power grid congestion as its "top priority" for energy and climate, according to its coalition agreement released last week. The government will create a grid congestion "crisis act" to accelerate permitting and intervene if construction stagnates, it said. It has committed to a target of 40GW of offshore wind by 2040, with contracts for difference to be rolled out to support this goal, on the higher end of the 30-40GW range the previous government mooted in July to replace a goal of 50GW. And the SDE++ programme of subsidies for renewable generation is being extended, with six new tender rounds to come. The coalition document represents a compromise between the positions of the partners , left-wing D66 and centre-right CDA and VVD. D66's proposals to increase the country's carbon tax was not adopted, with the tax to be scrapped. But no more gas extraction permits are to be issued for the Wadden Sea, in line with the party's manifesto. The giant Groningen gas field, which shut down in October 2024, will remain closed. The coalition agreement includes a role for "blue" hydrogen made from gas in "scaling up the Dutch hydrogen supply chain" and commits to building at least four new nuclear power plants. Dutch grid operator association Netbeheer Nederland and energy association Energie Nederland welcomed the coalition document's focus on grids, but both warned that a focus on green electricity supply needed to be paired with an increase in demand. The coalition government holds 66 out of 150 seats in the lower house of parliament and will need the support of other parties to implement its agenda. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Slow UN carbon market advance on removals

26/02/02

Slow UN carbon market advance on removals

Berlin, 2 February (Argus) — The emerging UN carbon market under Article 6.4 of the Paris Agreement, Pacm, saw slow progress last week on draft rules for carbon removals accounting, as experts tasked with working on new Pacm methodologies convened at the UN climate arm's headquarters in Bonn, Germany. The panel made some decisions on the so-called reversal assessment tool, which aims to determine the number of Pacm credits to contribute to the market's reversal risk buffer account, acting as a form of insurance for removal projects. The tool will help calculate individual risk factors, combined risks and the reduction in reversal risk factors, based on any remediation measures implemented by activity proponents. A buffer factor, expressed as a percentage of credited carbon, would then be calculated, depending on the choices made by project proponents. The higher the percentage, the more credits must be set aside for an activity. The panel will also determine specific activity risks, with an initial focus on forest carbon storage, geological carbon storage and biochar. These are not only the most prevalent removal activities in the carbon market, but also dominate those transitioning from Pacm's precursor, the Clean Development Mechanism (CDM). The panel and the Article 6.4 supervisory body were tasked by countries at the UN Cop 30 climate summit in Brazil in November with prioritising CDM transitions . The panel will consider other types of removal activities at a later stage. More progress was made last week on the draft rules for renewable electricity generation, on which the panel released a draft methodology for supervisory body approval. It would become the second approved Pacm methodology, if adopted. The first methodology for generating carbon credits, on flaring or use of landfill gas, is regarded as substantially stricter than its CDM predecessor. Pacm's downward adjustment factor ensures that baseline emissions decline more significantly over time than under the CDM. South Korea-based carbon project developer Ecoeye said under the Pacm landfill gas methodology, flaring-only projects carried out in host countries outside least developed countries are likely to experience a 52–76pc reduction in credited emission reductions, compared with CDM-based estimates, over a five-year period, while for electricity generation and heat production it projects a 34–42pc reduction. The potential third Pacm methodology to be adopted, on clean cooking, considers new submissions while carrying over some elements from an existing CDM methodology. Another methodology under consideration, on nitrous oxide abatement from nitric acid production, might also see a draft proposal at the next expert panel meeting in March. Six new Pacm methodologies in total are under consideration. The latest entry is on fertiliser production with renewables-based ammonia, for which a call for public input closed on 27 January. The panel is considering merging this methodology — the development of which was financed by the Germany-supported International Hydrogen Ramp-Up Programme — with another for ammonia production through electrolysis. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Romania withdraws power traders' profit margin cap bill

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