European renewable GOO demand up by 8pc in 2020
Demand for European renewable guarantees of origin (GOO) rose by 8pc to a record high last year, despite lower power demand as a result of Covid-19, with Spain emerging as the single biggest source of GOO demand for the second consecutive year
Cancellation of renewable GOOs in the Association of Issuing Bodies (AIB) hub increased by 8pc year on year to 735.1TWh in 2020, a record high and up from 332.6TWh in 2015 and 182.4TWh in 2010. Demand continues to outstrip supply, with 761.8TWh of renewable GOOs issued in 2020, up from 649.8TWh in 2019, 367.9TWh in 2015 and 25.5TWh in 2010.
Spain emerged as the largest user of GOOs from all sources, cancelling 175.7TWh, an increase of nearly 15pc year on year. Germany was the second-largest single source at 110.5TWh, up by 6pc year on year.
Spanish power demand fell to 27.1GW last year from 28.6GW in 2019, while demand in Germany fell to 53.9GW from 55.5GW in 2019.
Estonia registered the sharpest year-on-year increase, cancelling 1.54TWh, an increase of 414pc year on year, followed by the Czech Republic, where total GOO demand increased by 129pc to 1.4TWh. Demand in the Netherlands increased by 67pc year on year as the country adopted full disclosure, where certificates must be declared for every MWh of power supplied. Power demand in the Netherlands increased last year, averaging 12.6GW compared with 11.6GW in 2019, although still lower than demand in 2017-18.
Slovakia cancelled 909.3GWh in its first year since joining the AIB hub. Slovak market operator OKTE launched GOO auctions late last year, with the next one due in May.
Nordic hydro GOOs for 2020 vintage fell from €0.17/MWh at the start of last year to just under €0.07/MWh by the end of the year, according to Argus' assessments, while European wind GOOs, tradeable in the AIB hub, fell to €0.09/MWh at the end of the year from €0.26/MWh at the beginning of 2020. European solar GOOS remained the premium product, with 2020 vintage ending the year at €0.10/MWh, while European biomass GOOs were the lowest-priced product for most of the year, but fell to parity with Nordic hydro by the end of the year.
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Mexico to tap economist for energy minister
Mexico to tap economist for energy minister
Mexico City, 27 June (Argus) — Mexican president-elect Claudia Sheinbaum appointed economist and lawyer Luz Elena Gonzalez to become energy minister in her government that will take office on 1 October. Gonzalez has a long record in public service and served as finance director of the Mexico City government during Sheinbaum's tenure as the capital's mayor from 2018-2024. She has no direct energy industry experience. Sheinbaum won a convincing victory in the 2 June presidential elections and will take office on 1 October when Morena political party founder and current president Andres Manuel Lopez Obrador ends his six-year term. Gonzalez will face a range of challenges as energy minister including completion of the long-delayed Olmeca refinery, development of a plan to tackle state-owned Pemex's enormous debt, expansion of Mexico's electricity generation and grid capacity with a renewed focus on clean energy and the construction of natural gas storage. She will also be in charge of policy decisions that will define the role of private-sector investors in the energy sector. Gonzalez will replace Miguel Angel Maciel, appointed following energy minister Rocio Nahle's resignation in October 2023 to pursue the Veracruz gubernatorial election. Nahle, who took office as energy minister in 2018, led efforts to build the Olmeca refinery and has been a strident supporter of Lopez Obrador's energy sovereignty policy that has sought to restrict private-sector investment. Sheinbaum also appointed Jesus Esteva as transport minister, Raquel Buenrostro as civil service minister, David Kershenobich as health minister and Edna Elena Vega as urban and rural development minister. All of the candidates appointed today have either worked with Sheinbaum during her period as Mexico City mayor or in Lopez Obrador's government. By Rebecca Conan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK election pledges show different paths to net zero
UK election pledges show different paths to net zero
The outcome of the election will have a significant impact on the pace of energy transition, particularly regarding North Sea gas production, writes Georgia Gratton London, 26 June (Argus) — The UK's two main political parties have set out their plans on energy and climate change in their manifestos, ahead of the country's general election on 4 July. Energy security and the cost to consumers is a common theme, but the two parties diverge on their approach to the energy transition. Both the incumbent Conservative and opposition Labour parties are committed to the country's goal of achieving net zero emissions by 2050, which is legally-binding and was passed with significant cross-party support under a Conservative government in 2019. The Conservatives have promised a "pragmatic and proportionate" route to achieve that target — guaranteeing "no new green levies or charges". Labour, which according to recent polls is on course to secure a sizeable majority, has pledged to accelerate the path to net zero, and has committed to a zero-carbon UK power system by 2030. Labour has pledged to "maintain a strategic reserve of gas power stations to guarantee security of supply", but its manifesto does not clarify whether that would involve building any new plants to replace ageing units. In contrast, the Conservative manifesto reiterates previously announced plans to build new gas-fired power stations. The party had previously committed to a decarbonised power network by 2035, in line with a G7 pledge, although that is not mentioned in its manifesto. Both parties are considering measures that could reduce residential gas demand in the long term. They have pledged to invest similar amounts of public money in energy efficiency schemes — £6.6bn ($8.3bn) over the next parliament for Labour, which it says will be used to upgrade 5mn homes, against £6bn over the next three years for the Conservatives, which their manifesto says will "make a million homes warmer". Labour also plans to work with the private sector, including banks and building societies, to facilitate the provision of further private finance in such schemes. The Conservative Party announced that it will fund an "energy efficiency voucher scheme", without providing further details. The different pace of the parties' energy transition plans is apparent from their respective renewable energy targets. Labour's plans to "double onshore wind, triple solar power, and quadruple offshore wind by 2030" would result in installed capacity of 31GW, 48GW and 59GW, respectively, against an end of 2023 baseline. The Conservatives' target to triple offshore wind by the end of the next parliament would put installed capacity at 44GW in 2029 — below the 50GW target for 2030 set in 2022 — while it said it supports solar and onshore wind in some circumstances. The two main parties support nuclear power, including small modular reactors, although those are unlikely to be operational until after 2030. And both pledge to cut planning bureaucracy and tackle grid connections. Diverging upstream The parties have adopted markedly different positions with regard to North Sea oil and gas production. Labour is clear that it "will not revoke existing licences" in the North Sea, but it will not issue any new licences for oil, gas or coal exploration or production, and has pledged to "ban fracking for good". The Conservatives have restated their aim to legislate for annual North Sea licensing rounds, and to "retain the current moratorium on fracking". The Conservative Party aims to keep the windfall tax — which effectively results in a 75pc rate — on oil and gas producers' profits in place "until 2028-29, unless prices fall back to normal sooner". Labour has confirmed plans to lift the rate to 78pc and to retain the tax until the end of the next parliament, which is likely to be mid-2029. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Western Australia’s Strike plans gas-fired power plant
Western Australia’s Strike plans gas-fired power plant
Sydney, 24 June (Argus) — Australian independent Strike Energy plans to build and operate an 85MW peaking gas-fired power plant that could come on line by October 2026 near its South Erregulla operations in Western Australia (WA). Strike applied to the Australia Energy Market Operator (Aemo) for capacity credits and network access to develop the power plant. It is targeting a final investment decision in November this year subject to Aemo's decision. Gas supplies of around 1.3 PJ/yr (34.7mn m³/yr) would come from Strike's South Erregulla reserves . The power plant would be on land owned by Strike 280km north of Perth and around 15km of existing power transmission lines within the South West Interconnected System, the electricity network that covers Perth and the southwest region of WA. The WA system will need around 3.9GW of new flexible gas-fired power capacity by 2042 to firm increasing renewable generation as the state exits coal-fired power generation, the state government said last year. It plans to close the two remaining state-owned coal-fired power plants by 2030 , while the private-sector Bluewaters coal-fired power plant is expected to retire by 2030-31, according to Aemo. Aemo has identified a supply shortfall of 391MW emerging in 2027-28 because of a progressive coal-fired power phase-out and increasing electricity demand. The shortfall could reach as high as 2.88GW by 2033-34, highlighting the need for continued capacity investment particularly from 2027 onwards, Aemo said in its latest electricity statement of opportunities for WA's Wholesale Electricity Market, which is not connected to east Australia's National Electricity Market. Strike estimates total annual revenues of A$40mn-50mn ($26.6mn-33.2mn) for the gas-fired peaking plant over the first five years of operation, of which almost 40pc would come from payments under WA's capacity credit scheme. The plant would operate for over 25 years, with investment costs currently estimated between A$120mn-160mn. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan's Hokuriku starts biomass co-firing test runs
Japan's Hokuriku starts biomass co-firing test runs
Tokyo, 21 June (Argus) — Japan's utility Hokuriku Electric Power started coal and wood pellet co-firing test runs in April, the company said today. Hokuriku has been conducting co-firing test runs using coal and imported wood pellets at the 700MW Tsuruga No.2 unit in Fukui prefecture since April, with the 700MW Nanao-Ohta No.2 unit in Ishikawa prefecture to follow suit. The company also plans to increase biomass co-combustion rates at these two major coal-fired power plants to 15pc by the April 2030-March 2031 fiscal year, which means a total of 210MW of capacity and 1.5mn MWh/yr of output based on biomass-fired generation. Hokuriku expects its increased biomass co-firing rates to reduce CO2 emissions by 1mn t/yr compared with emissions from coal-firing for the same output, although it did not disclose the volume of wood pellets that will be burned. The company has been co-firing with coal and domestically-produced wood chips at Tsuruga since 2007 and at Nanao-Ohta since 2010, but its total biomass ratio was under 1pc. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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