Brazil considers daylight savings time return
The Brazilian mines and energy ministry requested that grid operator ONS evaluate reestablishing daylight savings time.
Brazilian president Jair Bolsonaro ended daylight savings time in 2019. The policy had existed since 1931 and previous president Michel Temer had also considered terminating it.
At the time, government technical experts assessed that turning clocks back by an hour during the summer did little to save electricity based on the power demand curve during the day.
But the expansion of distributed generation into the power matrix is changing the power demand curve, making daylight savings time relevant again, a source at the government told Argus.
Brazil faces a dilemma in its power grid expansion. The country has a large potential for wind and solar power generation, but these sources are interruptible and cannot be fully controlled. Therefore, power sector authorities must find ways to meet peak demand.
According to a government source, the preliminary study by ONS shows that bringing back daylight savings time could help the operator meet power peak demand in the interconnected power system this year.
ONS told Argus the Ministry requested a study about the return of the daylight savings time due to the shifting of the maximum power demand caused by the increase in the solar power generation. The outlook for meeting power demand in 2022 is "much more favourable" than in the previous two years, ONS said, and that there is no problem meeting domestic power demand.
Bolsonaro's decision to end daylight savings time in the beginning of his mandate pleased his supporters. But polls at that time showed that Brazil's poorer population did not appreciate the policy, since it meant that it was still dark when they left their homes to work in the morning. Also, some people felt more exposed to theft by being in the streets in a dark morning.
Mines and energy minister Adolfo Sachsida is not opposed to the daylight savings time and wants to evaluate whether resuming the policy can help the country meet power demand, according to the source.
But Bolsonaro would have to issue a decree to reestablish the policy, which could be unpopular with the population that supported his decision in 2019. Presidential elections in Brazil will be held in October and Bolsonaro is trailing in the polls to former president Luiz Inacio Lula da Silva.
In the past, daylight savings time started every third Sunday of October.
Related news posts
India’s Gail seeks swap for August-loading LNG
India’s Gail seeks swap for August-loading LNG
Singapore, 3 July (Argus) — Indian state-controlled gas distributor Gail is offering a LNG cargo loading in the US in August, in exchange for a cargo for delivery to India in the same month. Gail is offering a cargo loading on 9 August from the US' 33mn t/yr Sabine Pass terminal in exchange for a 15-18 August delivery to the 5mn t/yr Dhamra terminal, through a tender that will close on 4 July. The firm was last in the market to seek a swap just last month, for the exact same delivery windows. Gail already issued this tender twice in June, but may have been unsuccessful in awarding the tender both times. Gail remains focused on issuing destination swap tenders to optimise its contracted US volumes. But falling spot prices may compel the firm to emerge for outright spot purchases in time to come. Indian state-controlled firm Gujarat State Petroleum (GSPC) likely purchased a 20-31 August delivery to the 5mn t/yr Mundra terminal at around $11.60-11.70/mn Btu, through a tender that closed on 2 July, traders said. The requirement was likely to fulfil captive demand from its subsidiary city gas supplier Gujarat Gas, they added. This transaction level is markedly lower than the previous spot transaction to India just last week. Indian state-controlled refiner BPCL purchased a delivery either on 30 July or 7, 8, 9, 11 August at around low-$12s/mn Btu, through a tender that closed on 26 June. Spot demand from India will likely fall in the weeks and months to come as the monsoon season has began in the country. More rains will increase hydropower generation, weigh on the need for additional gas-fired power generation as well as lower temperatures and reduce cooling demand, traders said. The Argus -assessed price for deliveries to India and the Middle East was last at $11.89/mn Btu for the second half of August on 2 July, about 3¢/mn Btu higher than a week earlier, but 20¢/mn Btu lower than a recent peak on 27 June. By Rou Urn Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
French EdF develops more nuclear supply contracts
French EdF develops more nuclear supply contracts
Paris, 2 July (Argus) — French state-owned utility EdF has signed five letters of intent for long-term nuclear supply contracts for power-intensive industries, EdF executive director Marc Benayoun said at the Europ'Energies conference in Paris today. The five nuclear power supply contracts represent over 10 TWh/yr of consumption and will last for at least 10 years. Payment will be upfront. "We are still far from the [24TWh] maximum that we were aiming for but, in a context of low prices, some actors prefer medium-term contracts", Benayoun said. The utility had signed three letters of intent for nuclear power supply contracts as of April, including one with steel manufacturer Arcellor Mittal and another with green iron consortium GravitHy . French nuclear power supply contracts — or CAPNs — are designed for power-intensive industries, defined by the share of energy expenses in their revenue. French state-owned rail company SNCF consumes an average of 9 TWh/yr of power so does not fall under the power-intensive category, making it ineligible for a CAPN. Discussions on widening the scope of CAPNs have been ongoing with EdF, SNCF operations director Khadidja Haned Bouaddou told Argus . Nuclear supply contracts will partly replace France's Arenh scheme, under which EdF is obliged to sell nuclear power at a fixed price to competitors. The Arenh mechanism is due to expire at the end of next year. The French state reached a deal with EdF at the end of last year that sets a price for nuclear power sales, but the agreement has not yet become law. The prices of the contracts could be renegotiated, French economy minister Bruno Le Maire said recently. France's current parliamentary elections add further uncertainty to the future of the mechanism. EdF has concluded 2,000 contracts for around 40TWh, or 11.7 TWh/yr, of power over 4-5 years, with the power coming not only from its nuclear fleet. This compares with the 20TWh of power that the utility had sold as of the beginning of April . In parallel, the utility is conducting pay-as-clear auctions for delivery in 2028-29, offering 1-5MW. But the auction has not cleared, as prices have decreased and bids received by EdF were below its reserve price, Benayoun said. Power-intensive industries union Uniden president Nicolas de Warren welcomed the initiative of the auctions and said they represent a complementary source of supply. By Tatiana Serova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Italy’s NECP eyes 11pc of power demand from nuclear
Italy’s NECP eyes 11pc of power demand from nuclear
London, 2 July (Argus) — Italy aims to generate at least 11pc of its power demand from nuclear energy by 2050 and could double that amount if necessary as part of efforts to meet its climate goals. In its new national energy and climate plan (NECP) sent to Brussels yesterday, Rome said its "conservative" scenario envisioned installing 8GW of nuclear power capacity using mainly small modular reactors but also fusion plants. Italy could build as much as 16GW of nuclear capacity depending on developments across the energy system, according to the document. The ‘with-nuclear' option would provide savings of around €17bn ($18.3bn) compared with not using it. It would also mean less gas consumption tied to carbon capture and storage (CCS) technology. Italy banned nuclear power in a referendum in 1987 after the Chernobyl disaster, but the current right-wing government of Giorgia Meloni has voiced its support for the technology. Last year it set up the national platform for sustainable nuclear power to map out a timeline for a possible return to nuclear power. In confirmation of targets set last year , Rome said it aimed to install a total of 131GW of renewable energy capacity by 2030, compared to 58GW in 2021, with a view to meeting 63pc of power demand and 39.4pc of total energy consumption. Most of the new capacity will be solar photovoltaic (PV), with 79GW expected to be installed driven by new subsidies and easier permitting. Wind capacity is expected to contribute 28GW, with offshore wind providing just 2.1GW. The plan envisages the development of contracts for difference (CfDs) through auctions for larger plants, as well as a framework to boost power-purchasing agreements (PPAs). Italy's NECP also maps out the development of electricity grids and cross-border interconnections. "The long-term risk is that the tight renewables penetration targets and the CfD mechanism established by the EU to deliver incentives could lead to a negative impact on spot prices, currently driven in Italy by the price of natural gas and carbon allowances," Italian broker Equita said. The current final revision of Italy's NECP comes after a cross-sector and public consultation. It was submitted to the European Commission for approval on 1 July, a day after the deadline required by EU law. By Steven Jewkes and Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US judge halts 'pause' on LNG export licenses
US judge halts 'pause' on LNG export licenses
Washington, 1 July (Argus) — A federal judge in Louisiana has ordered President Joe Biden's administration to end its five-month-old "pause" on the approval process for new LNG export licenses until the resolution of a lawsuit by states that said the policy is unlawful. The US Department of Energy (DOE) and other administration officials are immediately "enjoined and restrained" from "halting and/or pausing the approval process" for LNG export applications requesting licenses to export to countries without a free trade agreement with the US, federal district court judge James Cain wrote today. DOE did not immediately respond to a request for comment. The court's ruling is a potential blow for the Biden administration, which had said it would need until the first quarter of 2025 — after the November elections — to finish a more thorough review of the economic and climate-related effects of fully licensing LNG terminals, beyond the 48 Bcf/d of US liquefaction capacity that is fully permitted today. DOE officials have cited concerns that licensing more LNG projects could end up increasing natural gas prices for consumers. "So much has changed, including the volumes of what we're exporting," US deputy energy secretary David Turk said last week at a congressional hearing. "So we said, 'Let's take a step back, let's update our economic analysis." Biden announced the LNG licensing pause in January, delighting climate groups that have argued that approving additional projects would amount to a "climate bomb." But the pause enraged gas industry officials that worried the pause could threaten investments in a set of projects that were nearing a final investment decision. The pause raised uncertainty on the status of LNG export projects that have yet to obtain licenses, including Venture Global's proposed 28mn t/yr CP2 project in Louisiana that last week cleared a key part of the federal permitting process. The court's ruling does not explicitly require DOE to issue new LNG export licenses, or set an explicit deadline for the agency to take final action on pending applications. But the judge said that under the Natural Gas Act, DOE is required to act "expeditiously" once it receives an export application. Before Biden formally announced the pause, some LNG export applications were already subject to reviews that industry officials said amounted to a de facto freeze. In the ruling, Cain said that Louisiana and other states that challenged the LNG licensing pause were likely to succeed on the merits in showing Biden's policy was arbitrary and capricious, in part because DOE failed to provide a "detailed explanation" for its halt of the approval process. Cain said that DOE had made a "complete reversal" from its position in July 2023, when it defended its licensing process in its rejection of a complaint from environmentalists. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more