Czech Republic continues net power exports to Germany
The Czech Republic has remained a net power exporter to Germany so far in August for the fifth consecutive month, as German wind and coal-fired generation have fallen steadily, while Czech nuclear output has increased to a five-month high.
Net power exports from the Czech Republic to Germany averaged around 800MW over 1-15 August — a fresh high for this year — with net exports from April-July ranging from 29MW to 179MW (see net export chart).
The rise in Czech net power exports to Germany owes in large part to increased power flows during mostly off-peak hours — 20:00-08:00 — as wind power generation in Germany is usually lower over this period, with Czech-German power flows switching in peak-load hours (see hourly export chart).
Net exports from the Czech Republic to Germany from 1 April-15 August during off-peak periods have averaged 478MW, with exports from Germany to the Czech Republic during peak hours over the same period averaging 362MW.
Offshore and onshore wind output in Germany has fallen sharply from the high so far this year of 23.37GW in January, declining to as low as 8.56GW in June, although output picked up in July and August at an average of around 13.5GW. And solar power generation has dropped steadily, averaging 8.63GW in August compared with 10.23GW in July and 12.26GW in June.
Lower coal-fired generation from lignite and anthracite in Germany owing to unfavourable operating margins has limited base-load generation in the country, with output falling to a low so far this year of just 7GW this month, declining from 8.22GW in July and 10GW in June.
In comparison, steady base-load generation from strong nuclear output in the Czech Republic has kept exports to Germany steady. Czech nuclear generation so far in August has averaged 3.46GW, up from 3.06GW in July and the highest since March.
But day-ahead power prices in Germany have remained at a discount to the Czech Republic, averaging €87.10/MWh from 1 April-16 August, while Czech power prices averaged €91.28/MWh over the same period.
Germany could switch back to being a net exporter to the Czech Republic next month as the Czech September contract closed at a €2.70/MWh premium to the German equivalent on 14 August, while wind power output in Germany typically increases in September from August.
![](https://public-assets.argusmedia.com/2023/08/15/czech-germanhourlyborderflows15082023052127.jpg)
![](https://public-assets.argusmedia.com/2023/08/15/czech-germannetpowerexports15082023052128.jpg)
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Greece expects 70pc fall in gas demand by 2050
Greece expects 70pc fall in gas demand by 2050
London, 28 August (Argus) — Greek gas demand will fall by nearly 70pc by 2050 as increasing renewable power installations displace gas in the power generation mix, according to Greece's revised National Climate and Energy Plan (NECP) put out for consultation last week. Gas consumption falls to 44.1TWh in 2030 and then to 16.2TWh by 2050 from 51.2TWh in 2022, under projections in the NECP. This will be driven by renewables displacing gas in the power mix, the replacement of gas units for heating in residential and industrial contexts through electrification, and a rise in the production of biogas and biomethane. Specifically for industry, the NECP assumes that gas demand will gradually decline to just 900GWh by 2050 from 6.6TWh in 2022, while in the commercial and public sector it will drop to 200GWh ( see gas table ). The NECP assumes a "dramatic increase in the electrification of building heating" through heat pumps, taking into account the ban on the sale of new oil and gas boilers from 2025, new EU laws on energy efficiency requirements in buildings, and the inclusion of building emissions in the EU emissions trading system. The power sector accounts for the majority of Greek gas demand. The NECP assumes that gas-fired power generation will decline to 10.4TWh by 2030 and 4.8TWh by 2050, far below 19.1TWh in 2022. Gas is displaced by solar and wind, with renewables contributing 96pc of domestic power generation by the middle of the century ( see power table ). But the NECP still foresees installed gas-fired capacity remaining high later into the decade, reaching a peak installed capacity of 7.9GW in 2030 before falling back to 6.4GW in 2050, slightly above 6.3GW in 2022. The government expects Greece to become a net power exporter already in 2035, having been a net importer of 3.5TWh in 2022. Gas-fired plants will remain "essential to ensure, in all cases, the stability and security of supply of the electricity system throughout the energy transition period", the NECP says. The plan foresees the need for a national compensation mechanism for gas-fired plants, particularly given the likely expansion of energy storage such as batteries further displacing gas from the power mix in 2030-40. Even some oil plants will potentially need to remain in cold reserve in case of emergency, mostly to ensure supply to some of the Greek islands. And while the plan projects a nearly 70pc drop in gas demand by 2050, it still envisages the expansion of the national transmission system, mostly to facilitate Greece becoming "the main energy hub of the wider region". The plan lists seven main gas interconnector projects that are of "national, regional and international interest", including the doubling of the Trans-Adriatic pipeline's capacity to 10bn m³/yr, an expansion of the Interconnector Greece-Bulgaria's capacity to 5bn m³/yr, and the implementation of the Dioriga Gas LNG terminal, among others. If transmission system operator Desfa's expansion plans are fully carried out, transit capacity will increase to 8.5bn m³/yr by 2026 from 3.1bn m³/yr at present. However, these plans could be endangered "if the declared intention to fully decouple the EU from Russian gas is not implemented and if regional needs continue to be met mainly by Russian gas channelled through Turkey". To avoid significant increases in Greek transmission tariffs, "only the absolutely necessary investments in the expansion of gas infrastructure" are promoted, according to the plan. The NECP supports the development of small-scale LNG, enabled through the truck-loading services at Revithoussa and the under-construction bunkering jetty there. Small-scale LNG can displace oil in remote locations not connected to the gas grid, and is also important in decarbonising shipping and heavy land transport, the plan says. Annual biomethane production rises to 2.1TWh by 2030 and 4.6TWh in 2050 from zero at present under the plan. About 80 biogas plants currently produce 1.4 TWh/yr of biogas, and 38 of these adjacent to gas networks could be converted "relatively quickly" to biomethane production of about 900 GWh/yr. The remaining 1.2 TWh/yr targeted by 2030 will come from new plants. The NECP also aims to cut Greece's dependence on imports through the development of domestic gas production, if it proves to be commercially viable. Greece has awarded nine onshore and offshore exploration licences, and in April 2022 declared these projects to have national priority. In the past two years, "investigations have been accelerated" and drilling decisions are expected in the next two years. If final investment decisions are taken, new domestic production could come on line before the end of the decade. Preliminary estimates put potential and probable reserves in Greece at about 680bn m³, which if exploited would make Greece an exporter already by 2030, according to the NECP. More domestic production increases revenues for the Greek state, which can partly be used to implement the energy transition, the government said. By Brendan A'Hearn Projected annual power production by source TWh/yr 2022 2025 2030 2035 2040 2045 2050 Lignite 5.8 4.5 - - - - - Natural gas 19.1 12.2 10.4 4.3 4.4 4.4 4.8 Oil 5.1 1.9 0.4 0.3 0.2 - - Biomass and biogas 0.1 0.5 0.4 - - - - Solar 7.1 12.5 20.3 27.0 37.1 43.8 49.2 Onshore wind 10.9 15.8 20.7 21.9 25.5 30.3 30.2 Offshore wind - - 0.6 14.7 21.7 30.6 43.6 Hydro 3.9 5.8 6.4 7.4 7.7 8.6 9.1 Net imports 3.5 3.2 1.8 -3.7 -6.7 -11.1 -6.6 — Greek NECP Industrial and residential/commercial gas demand TWh/yr 2022 2030 2035 2040 2050 Industrial gas demand 6.6 4.9 4.6 1.4 0.9 Residential/commercial gas demand 1.3 1.2 0.9 0.2 0.2 — Greek NECP Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan seeks $11bn green budget funding
Japan seeks $11bn green budget funding
Osaka, 28 August (Argus) — The Japanese government is expected to request around a ¥1.6 trillion ($11bn) budget for 2025-26 and the following fiscal years to help drive the country's green transformation (GX) strategy to achieve its net zero emissions goal by 2050. The GX implementation council led by premier Fumio Kishida on 27 August unveiled its draft budgetary request plan for sectors involved in the GX, which aims at securing at least ¥1.6 trillion, excluding projects whose costs are unspecified. Tokyo is considering seeking ¥1.2 trillion for 2025-26, while asking for the remaining budget to be allocated for 3-5 years. The initial GX-related budget for 2024-25 was around ¥1.7 trillion, including a supplementary budget for the previous fiscal year. The government plans to allocate ¥255.5bn, or 22pc, of its total budget request for 2025-26, to help set up domestic supply chains to drive its decarbonisation efforts. This includes further development of perovskite solar cells, offshore wind power, storage batteries, water electrolysers and fuel cells. Japan is anticipated to require more than ¥150 trillion of public-private investment to promote energy transition over 10 years from 2023-24. Tokyo plans to issue around ¥20 trillion of GX economic transition bonds over the decade to support the investment. Tokyo is now working on formulating the GX vision toward 2040, aiming to complete it by the end of this year. The council on 27 August proposed specific areas to accelerate discussions, including efforts to restart existing nuclear reactors and development of next-generation reactors, as well as renewable energy expansion, LNG and future fuel supply security and industry relocations. Kishida has promoted nuclear reactors to enhance the country's energy security under his GX strategy, updating the country's nuclear policies since he took office in October 2021. The nuclear-pro GX discussions may influence the continuing review of the country's strategy energy plan (SEP), which was last formulated in 2021 and calls for a reduction of the dependence on nuclear reactors as much as possible. Tokyo should clearly state in its new SEP that it is necessary to not only restart existing nuclear reactors but also build new ones, said Japan's Federation of Electric Power Companies previously. Kishida has decided to step down from his position as leader of the ruling Liberal Democratic Party next month. But he has emphasised he will make an effort to advance the GX strategy during the rest of his tenure, especially for nuclear restoration in east Japan where no reactors are currently operating. Kishida plans to hold a nuclear-related ministerial meeting next week to work on details of the government support to secure approval by local authorities to restart the 1,356MW Kashiwazaki-Kariwa No.7 reactor. The Kashiwazaki-Kariwa nuclear plant is owned by Tokyo Electric Power (Tepco). It is Tepco's sole nuclear plant, after the Fukushima-Daiichi and its nearby Fukushima-Daini nuclear plants were scrapped in the wake of the country's 2011 nuclear disaster following a devastating earthquake and tsunami. By Motoko Hasegawa Japan 2025-26 draft GX-related budget request (¥bn) Introduction of EVs, PHEVs, FCVs 144.4 Introduction of highly insulated windows, high-efficiency water heaters 188.0 Retrofitting existing buildings 26.6 SAF production and supply chain 83.8 R&D of next generation nuclear reactors 82.9 Introduction of energy storage system 31.0 Establishing domestic supply chains such as: 255.5 Perovskite solar cells, Offshore wind power, storage batteries, water electrolysers, fuel cells Support for hard-to-abate industries 87.0 Introduction of production facility for zero emissions vessel 14.3 Support for advanced energy saving measures by small to medium enterprises 174.3 Circular economy 12.0 Support for deep-tech, start-up companies related to GX 40.0 Grant for regional decarbonisation, such as private micro grid 10.0 Total 1,149.8 Source: Japan cabinet secretariat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Batteries, oil reserves top Korea’s trade budget focus
Batteries, oil reserves top Korea’s trade budget focus
Singapore, 28 August (Argus) — South Korea's trade, industry and energy ministry (Motie) today announced its 2025 budget proposal, which has a focus on fostering high-tech industries such as batteries and semiconductors, and bolstering oil reserves. Other key areas include ensuring reserves of key metals, as well as expanding low-carbon energy. Motie's proposed 2025 budget totals W11.5 trillion ($8.6bn), up by 0.2pc or W21.8bn from the previous year. The budget proposal will be submitted to the National Assembly in early September for approval and will be confirmed in December. High-tech industries Motie will expand funding for developing high-tech strategic industries such as semiconductors and secondary batteries by 17pc to W2.09 trillion in 2025. The ministry will extend support totalling W31.2bn to further develop battery management system technology and infrastructure to assess the safety of electric vehicle (EV) batteries, with the ministry citing recent heightened safety concerns following multiple fires involving EVs. The incidents had prompted domestic EV manufacturers to disclose otherwise confidential battery information. Resource security Motie will raise funding to boost economic security by 1.4pc to W1.85 trillion in 2025, which includes developing resources, as well as bolstering stockpiles of oil and key minerals. Of the W1.85 trillion, investment in developing oil fields will rise by 5.2pc to W50.6bn. This includes funds to support the first exploration drilling in the deep-sea gas field in the east sea , with results expected by the first half of 2025. The country plans to invest W79.9bn in 2025, up by 20pc from 2024, in oil storage, and to expand oil reserves to over 100mn bl. Stockpiling of key minerals such as lithium, cobalt and rare earth elements will continue, but the South Korean government is shifting its focus to building and maintaining stockpile infrastructure given stable mineral prices. Its budget for key minerals stockpiling will be lowered by 58pc from this year's W233.1bn to W96.9bn for 2025, but the allocated budget for construction and maintenance will surge by over sixfold to W116.3bn from this year's W18.7bn. The country will also support concluding supply deals for urea and further develop technology to cut import dependence. Low-carbon energy Motie's "carbon-free" energy budget is largely focused on developing the nuclear power industry as a key export driver, with W11.6bn allocated. The Czech government in July selected Korea Hydro and Nuclear Power (KHNP) as the preferred bidder for the installation of two nuclear reactors at the site of its 2GW Dukovany power plant, although US nuclear developer Westinghouse and French utility EdF are challenging the tender results . The government is also extending W198.4bn in funds to expand renewable energy supply. Of this, W42bn will be allocated to support low-carbon energy projects, which Motie expects to attract funding of up to W525bn in the renewable energy market. By Tng Yong Li and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s NRA rejects restart for Tsuruga No.2 reactor
Japan’s NRA rejects restart for Tsuruga No.2 reactor
Tokyo, 28 August (Argus) — Japan's Nuclear Regulation Authority (NRA) today rejected a draft safety clearance for Japan Atomic Power's (JAPC) 1,160MW Tsuruga No.2 reactor to restart operations. This is the first time the NRA has rejected a draft safety clearance for a nuclear reactor since it was set up in 2012. The NRA plans to receive technical and scientific comments from the public for 30 days from 29 August and then will make an official, final decision. It is unclear when NRA will make this final decision. A NRA committee on 26 July dismissed a claim by JAPC arguing that an earthquake fault line under Tsuruga in west Japan's Fukui prefecture is unlikely to be active, so operating the Tsuruga No.2 reactor will be safe even if a disaster occurred. The NRA on 28 August said that there were many mistakes and falsifications of documents and data submitted by JAPC, resulting in it taking around 10 years to assess the safety of the reactor. JAPC said it will continue to attempt a restart of the Tsuruga No.2 reactor. Japan's guidelines prohibit any reactors from being built above an active fault line. The NRA and seismologists in 2015 concluded that JAPC's Tsuruga No.1 and No.2 reactors were located above such a fault line. But JAPC said in 2015 that NRA's conclusion was unacceptable, claiming its own assessment showed the fault line was inactive. Japan, which is one of the world's most seismically active countries, has been checking the status of tectonic fault lines underneath reactors since a devastating earthquake and tsunami sparked a nuclear disaster at Tokyo Electric Power's Fukushima power plant in March 2011. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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