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Brazil considers daylight savings time return

  • Spanish Market: Electricity, Natural gas
  • 19/08/22

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.


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19/11/24

UK launches global clean power group at G20

UK launches global clean power group at G20

Rio de Janeiro, 19 November (Argus) — UK, Brazil and 10 other countries have signed on to a new initiative to support renewable power project development in both developed and developing countries. The Global Clean Power Alliance, launched during the G20 summit in Rio de Janeiro, Brazil, by UK prime minister Keir Starmer, aims to have countries share expertise to meet UN Cop 28 climate summit commitments to triple renewable energy and double energy efficiency. The alliance will "... accelerate the transition to clean energy, reduce energy bills, increase energy security and reduce emissions around the world," Starmer told journalists at the G20 summit. Among the first of several 'missions' the alliance will tackle to address energy transition challenges will be the finance mission, which will co-chaired by Brazil. It will "harness the political leadership needed to unlock private finance on a huge scale, so that no developing country is left behind," the UK said. "Brazil signing up to our finance mission is a huge vote of confidence ahead of the crucial Cop 30 summit in Belem next year," British energy minister Ed Miliband said. Other alliance members are Australia, Barbados, Canada, Chile, Colombia, France, Germany, Morocco, Norway, Tanzania, the African Union. The US and the EU are also expected to join the initiative. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LNG diversions to Europe reach double digits


19/11/24
19/11/24

LNG diversions to Europe reach double digits

London, 19 November (Argus) — At least 11 LNG carriers have likely diverted to Europe from Asia and Egypt over the past week, as European delivered prices now offer higher returns than Asian delivered prices, and operational issues delay deliveries in Egypt. Of the 11 cargoes, seven have diverted away from sailing for Asia round the Cape of Good Hope towards Europe, and four have diverted from Egypt, judging by shiptracking data from Vortexa (see table) . This does not include the 173,400m Myrina , which was idling in the mid-Atlantic today. One carrier — 174,000m³ Aristos I — had already passed the Cape of Good Hope, before turning back towards the Atlantic basin. Assuming all carriers are holding full cargoes, this totals around 860,000t, or 13.2TWh of LNG. Northwest European delivered prices rose above corresponding northeast Asian prices last week , prompting diversions from Asia to Europe. The inter-basin arbitrage was already closed, although firms with surplus shipping capacity that they viewed as a sunk cost because of long open vessel lists were still willing to send Atlantic basin cargoes to Asia as the opportunity cost of the longer journey time was limited to the cargo loss through higher boil-off during the voyage. But Europe's discount to Asia has narrowed, and even inverted late last week, with the spread between the two markets less than the boil-off cost difference between US deliveries to Europe and to Asia, incentivising diversions to Europe. The extra boil-off losses amount to around 39¢/mn Btu when shipping a cargo from Sabine Pass to Incheon via the Cape of Good Hope instead of Rotterdam, assuming a northeast Asian delivered price of $14.05/mn Btu, a sailing speed of 17 knots and a 160,000m³ cargo with a 0.1pc daily boil-off rate. The Argus Northeast Asia (ANEA) January delivered price closed at a 49¢/mn Btu premium to the northwest European December des price on 7 November, enough to incentivise deliveries to northeast Asia instead of Europe for firms with sunk shipping capacity as the spread was wider than boil-off losses. But the ANEA January price on 14 November fell to a discount to prompt northwest European des prices, incentivising diversions to Europe. And four carriers have diverted away from Egypt, where delays to a tight delivery schedule have been created by operational issues at the country's 6mn t/yr Ain Sukhna terminal, according to market participants. One of the terminal's two regasification trains has been experiencing operational difficulties, halving the terminal's regasification capacity, they said. The country last imported a cargo on 16 November — nine days after the previous delivery. The terminal's Hoegh Galleon floating storage and regasification unit has a peak regasification rate of 750mn ft³/d (7.7bn m³/yr), equivalent to about 16,500 t/d, meaning that it could regasify a 72,000t standard-sized cargo in 4-5 days when operating at full capacity. By Martin Senior Diversions to Europe m³ Carrier Capacity Diversion date Approx diversion location Diversions from Asia BW Lesmes 174,000 13-Nov West Africa Gaslog Windsor 180,000 14-Nov West Africa Vivirt City LNG 174,000 15-Nov West Africa LNGShips Empress 174,000 18-Nov Carribean Diamond Gas Crystal 174,000 14-Nov Carribean Flex Vigilant 174,000 14-Nov Carribean Aristos I 174,000 18-Nov Madagascar Diversions from Egypt British Listener 173,000 13-Nov Mediterranean LNG Harmony 174,000 14-Nov Mid-Atlantic Axios II 174,000 14-Nov Mid-Atlantic Pacific Success 174,000 16-Nov South of Suez — Vortexa, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Countries join fossil fuel subsidy phase-out group


19/11/24
19/11/24

Cop: Countries join fossil fuel subsidy phase-out group

Baku, 19 November (Argus) — Colombia, New Zealand and the UK today joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. They made the announcement at the UN Cop 29 climate summit in Baku, Azerbaijan. The coalition was first formed at Cop 28 in December last year. Member countries that sign up to the coalition commit to publish an inventory of their fossil fuel subsidies a year after joining, and to develop a plan to phase them out. Countries agreed at Cop 26, in 2021, to phase out inefficient fossil fuel subsidies, and reaffirmed this a year later at Cop 27. G20 members first pledged in 2009 to do the same. But global fossil fuel consumption subsidies hit over $1.2 trillion in 2022 and more than $600bn in 2023, IEA data show. "We truly feel that this is something we should tackle at a European level as well", EU energy commissioner Wopke Hoekstra said today. "This is something the next Commission will push; this is something I will personally push", he added. New Dutch climate and green growth minister Sophie Hermans admitted that phasing out fossil fuel subsidies is a "sensitive topic", but that the country is working on a plan. The first step is to make transparent which fossil fuels subsidies are in countries' systems, she said. The coalition now has 16 members — Austria, Antigua and Barbuda, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, Spain and Switzerland, as well as the three countries that joined today. Four members have made their national inventory of fossil fuel subsidies transparent — Belgium, France, Ireland and the Netherlands. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Norway spending $740mn on Paris carbon credits


19/11/24
19/11/24

Cop: Norway spending $740mn on Paris carbon credits

Baku, 19 November (Argus) — Norway on Tuesday launched a new initiative to buy carbon credits from developing nations under the Paris climate agreement, which will help it meet its emissions goals while financing decarbonization in other countries. The Norwegian Global Emission Reduction Initiative, with initial funding of $740mn, will use Article 6.2 agreements — bilateral agreements on carbon mitigation projects — to support emissions mitigation actions in developing countries. This is in turn will generate Paris agreement carbon credits known as internationally transferred mitigation outcomes (Itmos). Norway can use the Itmos toward its Paris emissions targets. In addition, the country believes its use of the agreements will help close the financing gap for emissions reductions in developing countries. "By working together, we can raise our collective climate ambition and increase the speed of green growth", Norwegian environment minister Tore Sandvik said at the programme's launch at the UN Cop 29 climate talks in Baku, Azerbaijan. The first agreements under the initiative are with Benin, Jordan, Senegal and Zambia. Zambian officials said the country will use the money it receives to support a plan it launched earlier this year to build more renewables such as wind and solar, lessening its dependence on hydropower, which accounts for more than 80pc of its electricity generation. "Our anticipation for Article 6 is that it will be concluded and operationalised at this Cop 29 so that it becomes part of our core financing for grid connected renewable power generation", said Douty Chibamba, permanent secretary of the country's ministry of green economy and environment. Article 6 of the Paris accord aims to help set rules on global carbon trade. A number of final issues for implementing Articles 6.2 and 6.4 still need to be finalised in Baku, but countries are allowed already to enter into bilateral agreements. Zambia signed one with Sweden in August . Norway said the credits will help support its goal of becoming carbon neutral by 2030. The credits could also be used to cover any shortfall in the country's nationally determined contribution (NDC), or emissions reduction pledge, under the Paris Agreement in the event the EU does not meet its 55pc by 2030 reduction target. Norway is not a member of EU but is counting on cooperation between the two to achieve its NDC. Under Article 6.2 of the Paris agreement, an exported Itmo can no longer be put towards the project host country's NDC. Sandvik said the program will set strict requirements to ensure the integrity of projects "and includes strong safeguards against corruption and human rights violations." Funding for the program could increase beyond $740mn as early as next year, if Norway's parliament agrees to the government's budget request. Norway also pledged up to $100mn to a fund in collaboration with the Global Green Growth Institute (GGGI) that will help the country develop programs and manage payments when emissions reductions are achieved. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 mayors call for $800bn/yr to address climate change


19/11/24
19/11/24

G20 mayors call for $800bn/yr to address climate change

Rio de Janeiro, 19 November (Argus) — Mayors from G20 countries are asking for at least $800bn/yr in investments by 2030 to tackle the effects of climate change. "We need better and faster access to international financing to ensure infrastructure that supports the socioeconomic security of our communities," Rio de Janeiro's mayor Eduardo Paes said. The joint statement from nearly 60 mayors and urban leaders was drafted during the Urban20, a G20 forum that includes leaders from major cities worldwide, and was delivered to Brazilian president Luiz Inacio Lula da Silva. The statement will also be delivered to other G20 members during the ongoing G20 summit in Rio de Janeiro. Climate change is one of the main topics being debated at the G20 summit. Brazil, which holds the G20 presidency this year, has set the energy transition as one of its goals for the year. The group reaffirmed its support for the Paris Agreement climate goals , saying it "fully subscribes" to the Cop 28 deal struck last year, which included language on transitioning away from fossil fuels. Urban investments such as low-emission transport, clean energy, and climate-resilient infrastructure can "significantly reduce emissions" and boost economic growth, according to the statement. The funding could unlock around $23.9 trillion in returns by 2050, it said. The $800bn/yr would cover around 20pc of urban climate finance needs and "serve as a catalyst for additional private sector funding," according to the Global Covenant of Mayors for Climate and Energy, a non-government organization for climate leadership that comprises over 13,000 cities worldwide. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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