Risks of large-scale UK power generation units not being operational next winter have substantially increased National Grid’s procurement target in the latest capacity market auction. This, in turn, pushed up the clearing price in the T-1 auction Round 6 for deliver year 2021-22 to a record price of £45 per kW.
A sudden and critical drop in electrical frequency brought the EU power grid at the brink of collapse on January 8, 2021, when grid operators had to split up the integrated power system to avert blackouts. 4,000 fast-start Jenbacher gas engines helped TSOs to regain grid frequency within a few minutes.
US LNG export have notched up amid rising buying interest in Asia and Brazil, where more and gas peaking power plants are being dispatched as drought condition limits baseload hydropower generation. Several cargoes also set sail for Asia where the JKM price for North Asian spot cargoes for April increased to $6.000 per MMBtu, up from last week’s $5.805 per MMBtu.
Natural gas production across the United States has fallen by 1% over the course of 2020, despite rising output from Marcellus and Utica Shale where production kept growing despite low regional spot prices. Within the Appalachia region, West Virginia saw the largest rise in gas production, up by 1.2 billion cubic feet per day (Bcf/d), or 20%, to reach 7.1 Bcf/d.
The 2021 February cold freeze has claimed the first victim, with Brazos Electric Power Cooperative filing for Chapter 11 bankruptcy protection. Brazos said in a statement it was hit by “excessively high invoices” of $2.1 billion from the Electric Reliability Council of Texas (ERCOT) for purported cost electricity service during February 13 and 19.
US gas demand spiked in the mid-February cold freeze, was pushing up storage withdrawals to record highs. Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, according to EIA figures, and a record 156 Bcf of natural gas was withdrawn in the South Central region which includes Texas.
An affordable and largely CO2-free European power supply by 2050 can only be realised with renewables as the main energy source and a well-connected electricity grid across the EU. A report by Connect Energy Economic finds wind and solar power could cover nearly 50% of Europe’s power demand, if the grid becomes flexible enough to handle intermittency challenges.
Energy-related carbon dioxide emissions in the United States will decline in most years through the mid-2030s but then start to rise slightly from the mid-2030s through 2050, according to the US Energy Information Administration (EIA). In its AEO2021 Reference case, the EIA projects that by 2050, energy-related emissions will be 5% higher than 2020 levels.
Excelon Corp will split into two publicly traded companies. The plan is to carve out its six regulated electric and gas units as Exelon Utilities (RemainCo) and separate it from Exelon Generation (SpinCo) – set to become the largest clean energy provider in the United States with 31 GW generating assets.
German construction firm Bilfinger and the infrastructure finance arm of Munich Re have both withdrawn from work related to the construction of the Nord Stream 2 pipeline through the Baltic Sea, due to looming US sanctions. Bilfinger had been contracted to deliver and operate process control systems and supply a gas-fired heat and power unit.