Rayan Kassis

Our New – #Business #Energy Market #Report is #live – As Jun24 saw the continuation of increased wholesale price movements across both tracked #gas and #power contracts, similar to the movements seen in April and May – with below-average temperatures for the majority of the month keeping a steady level of heating demand on the system, which would typically be lower at this time of the year.   Across the month, we saw day-ahead gas register a 6.8% gain month-on-month to average 81.95p/th. Similarly, front-month contracts registered price increases, up on average by 5.1% when compared to May24, with Jul24 seeing a 5.9% rise to 81.25p/th, and Aug24 growing 4.3% to 82.65 p/th. Gains were supported by restricted gas supply from the Norwegian and UK Continental Shelves acting to tighten system conditions, and as result of continued outages across several large Norwegian gas fields, shorter-dated gas contracts registered gains.   Moreover, prices found support from an outage across the Wheatstone LNG processing facility in Australia, which acted to impact global LNG supply levels and lead to increased Asian cargo competition. Longer-term contracts found support from the increased Asian cargo competition as competition for the procurement of LNG grows, however this remains subdued by strong gas storage stocks across Europe.   Seasonal gas contracts from Win24 to Win26 were, on average 2.5% higher in Jun24 when compared to May24 – despite some risk removed from these contracts as European gas storage levels remain well stocked. In continuation, more notable price gains across front-month contracts were offset by the notable stockpiles of European gas, which currently sit at 76% at the time of writing – boosting gas supply amid reduced Norwegian output.   This trend is anticipated to continue as the summer months progress and temperatures remain elevated – acting to lower gas-for-heating demand.   Rising front-month contracts in gas provided a bullish price direction for power to follow – with day-ahead power prices registering a 5.0% gain month-on-month to average £75.58/MWh. Additionally, these gains can also be attributed to tightened system margins following decreased gas supply, an outage across the Hartlepool 1 nuclear reactor, and below-average temperatures.   Similarly, both front-month power contracts registered gains, as Jul24 rose 4.3% to £74.32/MWh, and Aug24 grew 3.7% to £73.78/MWh. Moreover, much like its gas counterpart, seasonal power prices saw a collective upwards movement – rising 1.6% on average. Win 24 traded as the premium market, seeing a 3.0% increase to average £88.83/MWh.

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UK Energy Market Update – 19th August 2024 Gas Market: The UK gas market has opened today with the system 7 mcm/day short, driven by lower nominations from the Langeled pipeline, while UKCS production remains stable. Strong exports to the continent continue, incentivised by the NBP Day-Ahead discount to TTF. The NBP Day-Ahead price is up slightly, trading at 79.50 p/therm. On the curve, winter contracts remain firm, with continued focus on storage injections ahead of the winter season. Pan-European storage levels are strong, with a collective fill rate of 89.40%. Power Market: UK power prices are seeing mixed movements. The UK Day-Ahead Baseload is priced at £64.24/MWh, reflecting a slight firmness. However, renewable generation, particularly from wind, is expected to limit the need for gas-fired power this week, especially on Thursday, with forecasts showing up to 15,000 MWh/h of wind capacity. On the supply side, nuclear availability is impacted by planned outages at key sites, including Heysham and Torness, adding to the overall market tension. Oil & Coal: Brent crude is relatively stable, trading at $79.68/bbl, while ARA coal for Cal Y 1 remains elevated at $130.11/tonne, reflecting continued demand and supply-side constraints. Currency: The GBP/EUR exchange rate is currently at 1.1747, maintaining stability in the broader energy market context. Outlook: As we approach the end of August, the UK energy market remains focused on storage levels and the geopolitical risks that could impact supply. With cooling forecasts and robust wind generation expected, we might see some easing in power prices, but the gas market continues to be underpinned by storage and export dynamics.

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SolarPower Europe has just released it's Global Market Outlook for Solar Power 2024 - 2028 with a focus on the world leader in most Solar PV disciplines, China. But working for a European renewable solar and storage utility having invested in solar PV in 10 European countries for 10 years, I am proud to see seven European countries following the No1 Australia on the per capita rank list. The rank list also contains one minor flag error - but according to the VAR referee, it is Belgium being No4 and not Denmark who is No5 and still doing better in solar PV than the current European football championship 😎 The report can be downloaded here: https://lnkd.in/dAXA-tSm

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VaasaETT is honoured to announce our continued contribution to the latest #EuropeanCommission quarterly reports on electricity and gas markets. These comprehensive reports provide valuable insights into the industry trends. Check them out here: https://lnkd.in/gxem58ct #energy #electricity #gas #marketinsights

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Nuclear Power's Green Financing Milestone: EDF Secures €5.8 Billion for Plant Upgrades Key Points: ·      €5.8 billion in green financing: EDF has secured significant funding to support the life extension of its nuclear power plants. ·      Alignment with EU taxonomy: The financing demonstrates the growing market for nuclear investments that meet the EU's green standards. ·      Safety-focused upgrades: The funds will support crucial safety improvements in response to the Fukushima-Daiichi accident. ·      Controversy and potential: While nuclear power's green classification is debated, EDF's deal highlights its potential role in a low-carbon future with the right frameworks in place. In a significant development for the future of nuclear energy, French utility company EDF has obtained €5.8 billion in green loans to fund the life extension of its nuclear power plants across France. This financing, arranged with major banks including BNP Paribas and Société Générale, underscores the growing financial market for nuclear investments aligned with the EU's green taxonomy. The funds will support EDF's "Grand Carénage" program, launched in 2011, which aims to spend €55 billion by 2025 on upgrading its plants to improve performance and enable continued operation beyond 40 years. The program includes crucial safety upgrades in response to the Fukushima-Daiichi accident. While the green classification of nuclear power remains controversial, EDF's successful securing of green loans demonstrates that with the right financing and regulatory frameworks, nuclear could play a larger part in Europe's low-carbon future. As the energy transition accelerates, the role of nuclear power will undoubtedly remain a point of contention. However, EDF's deal serves as a powerful signal of the potential for nuclear to contribute to our shared climate goals when paired with stringent safety standards and responsible waste management. Read more: https://lnkd.in/gWXhWdGZ https://lnkd.in/eb8mpp2E Questions for Discussion: How do you think nuclear power should be balanced in our transition to a low-carbon economy? What conditions should be in place for nuclear to be considered a "green" investment? Let's discuss in the comments!

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Below a a link to recommended summer reading for decision makers at European grid system operators and regulators being tired of rejecting grid access and considering how to deal with a 225 to 1,150 GW solar PV increase from 2025 to 2050? Working in a utility investing in a European solar PV and storage where challenge No. 1 for adding more renewables and storage is grid capacity, it is amazing to read this new report not just looking at possible super conductor technologies for the next decade but also mature solutions available for grid operators to increase capacity within a year or three. E.g.: - storage as a transmission asset (SATA) which also can be conducted with private battery energy storage system (BESS) investors making it possible for system operators to loosen their back-up (N-1) reservations and increase supply and demand instead - flexibility management software solutions utilising the flexibility of BESS, interruptible solar PV, heat pumps and other assets to increase flexibility and capacity in the grid - the German NOVA principle: grid optimisation has priority over grid reinforcement, which has priority over grid expansion. We will need both expansion, reinforcement and optimisation to get to 2050 but to realise the opportunities of tomorrow before 2030, more optimisation and reinforcement is needed.

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The new state-owned company, Great Britain Energy (GB Energy), was launched by the new #labour government to boost local renewable energy. With a planned investment of £5bn for large developments, and £3.3bn for small-scale projects in local communities, GB Energy is here to accelerate the transition by: 🚀 Leading projects: Fast-tracking project development and delivery  💲 Investing: Partnering with the private sector to fund new energy projects  🏘 Local power plan: Supporting community energy projects with local authorities This initiative will support businesses with energy infrastructure portfolios, potentially through minority equity stakes or partnerships for project planning and grid connections.  We’re already seeing progress through GB Energy’s partnership with the Crown Estate, providing land for #OffshoreWind development. This collaboration aims to ease market entry and cut development time by half.  Greater investment in #RenewableEnergy will reduce reliance on costly imports and could save consumers £35 billion by 2050. We’re eager to see what #GBEnergy has planned to further our decarbonized electricity future! 🌱⚡️ 

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#Egypt targets #45GW of renewables, to consider #floatingsolar Egypt targets #45GW of #renewableenergycapacity, including developments under construction and future projects, Mahmoud Esmat, the newly elected Minister of #Electricity and #RenewableEnergy, said today. #solar #floatingsolar #renewable #renewableenergy #electricity #solarPV https://lnkd.in/gr7jcRdN

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