If the asset swap of RWE and E.ON goes ahead, the resulting companies would have “unprecedented market power”, say Ines Zenke from energy law firm Becker Büttner Held. In 2018, E.ON agreed to buy RWE's subsidiary innogy and the two utilities agreed to exchange large parts of their assets. The swap will leave E.ON focused on regulated distribution grid with stable returns, while RWE takes on E.ON's and innogy's renewable business, on top of fossil power plants.
Natural gas is bound to gain importance in the German power mix starting from the mid-2020s when coal-fired capacity is gradually being phased-out. Energy Aspects says Germany’s coal exit will help more of the global LNG oversupply find a home in Northwest Europe. The 2022 start-up of the Wilhelmshaven FSRU will support this trend.
Analysts say carbon prices in the European Emissions Trading System (EU-ETS) could exceed €38 per ton by 2020 as emission certificates taken out by Germany will get cancelled as it exits coal-fired power generation. A subsequent surge in carbon prices will accelerate coal-to-gas switching in Europe.
Texas could not solely rely on green energy sources without putting supply security at risk. Replacing all installed coal power capacity cost-effectively would only work with a combination of renewables, natural gas-fired generation and battery storage. Gas generally outcompetes coal generation in ERCOT if the price of gas falls below $3/MMBtu.
Rapidly evolving exports of LNG and liquid fuels will turn the United States into a net energy exporter next year. As gas demand grows in Asia and Henry Hub prices remain competitive, US LNG export capacity is expected to rise further before levelling off after 2030, when rival supplies are set to enter global markets.
Strong order intake and some very large orders support Siemens’ overall business, although Q1 net profits plunged 49% and revenue growth is seen to stay moderate. “There is still much to do before we achieve industry-leading margins in all our businesses,” CEO Joe Kaeser said in an analyst call today.
A new ‘Distributed Resource’ Desk, just launched by UK’s National Grid, allows for faster dispatch instructions to small gensets, battery storage and demand-side response. In the first 24 hours of operation, the number of bids and offers accepted from these aggregated providers was 87 MWh, up 113% on average.
Contrary to U.S. President Trump’s policies to strengthen the role of coal in America’s energy mix and support cash-strapped mining companies, the use of coal is falling faster than in the Obama-era. According to EIA estimates, the coal share of total power generation reached a new low of 28%, well below the 35% share of natural gas.
Russia’s Gazprom has decided to invest another RUB 17.7 billion ($266m) on top of an earlier RUB 120.9 billion ($1.8bn) spent on the Sakhalin-III project in Russia’s Far East. The Sakhalin project is at the heart of Gazprom’s Eastern Gas Program, designed to establish a new export route for Russian gas to Asia-Pacific.