Prices European Electricity Exchange (EEX) have tripled to over €90/MWh since the end of Covid-related lockdowns, as the economic rebound pushed up prices for coal natural gas and carbon emissions. China’s hunger for hard coal in turn drove up the price to €15/MWh in Europe, while gas prices at the TTF hub surpassed €36/MWh.
Mitsubishi Heavy Industries (MHI) will absorb the business operations and employees of Mitsubishi Power by October 1, 2021. Design, manufacturing, sale, installation and engineering of thermal power generation systems will be transferred to MHI while the management of the two companies will be unified to become more efficient and dynamic.
Capital expenditure of oil and gas companies will rise around 3% in 2021 before accelerating to 9% in 2022, Fitch Rating forecasts, though this is “not enough” to recover to pre-crisis levels. The pandemic had reduced 2020 corporate Capex by €36 billion, or about 7% compared to 2019 amid crippling lockdowns.
Regardless of US approval, the Nord Stream 2 pipeline still needs to be given a license to operate by the German regulator BNetzA which is “unlikely to materialise before mid-October,” Energy Aspects assumes. LNG imports will have to make up for the missing supply, pushing up prices at the Dutch TTF gas trading hub.
Despite early signs of a recovery, Wärtsilä has faced a 13% plunge in net sales to €2,078 million in the first half of this year as many investments in new power plant capacity continue to be postponed. The build-out of energy storage was “at a good level,” especially when linked to thermal balancing power units.
Despite a rapid build-out, renewables cannot keep up with the pace of global electricity demand growth which requires more fossil generation. After falling by about 1% in 2020 due to the pandemic, demand is set to grow by nearly 5% in 2021 and 4% in 2022, the International Energy Agency (IEA) finds.
Utilities in the United States switch to burning thermal coal as gas deliveries to power stations get more expensive amid rising Henry Hub prices, currently around $3.22/MMBtu. Coal power consequently gained 4% in market share to 24% while the share of gas power fell 3% to around 36%, according to US government analysis.