As Germany exits both nuclear and coal generation simultaneously over the next few years, more flexible gas-fired generating capacity and energy storage will be required to balance the grid. The gas industry hence urges the Government to introduce regulation to launch capacity markets to incentivize enough new-build gas power units by 2030.
Lawmakers in the U.S. Congress are preparing to hit European investors in the Nord Stream 2 pipeline with a new set of sanctions in an effort to derail the project. Uniper, Winterhall, Engie, OMW and Shell are invested in the Baltic Sea interconnector, and the sanctions could come as soon as February or March.
Concerns over China’s gas demand grow after the government said it would hand out ‘force majeure’ certificates to domestic companies if they cannot fulfill their offtake obligations. Beijing apparently tries to mitigate potential losses of state-owned gas companies though the impact on LNG imports is still unclear.
Spain’s new government has revised the 2021-2030 Energy Plan, speeding up the country’s coal exit and stepping up solar PV targets. Coal-fired power units will “cease to be competitive by 2030,” the plan reads, given that CO2 prices in Europe are likely to rise to €35 per ton and considering the relative price of gas.
The German renewables energy surcharge (EEG) has swept a record payout into the coffers of wind, solar, biomass and hydropower producers. Proceeds totaled 27.5 billion Euros 2019, triple the amount paid in the previous year which sparked anger amongst end-users who have to pay the EEG surcharge with their electricity bills.
Utilities, trade unions and Germany’s federal and regional policy makers have agreed a landmark €40 billion deal to phase out all coal-fired power plants by 2038. The latest coal exit adds to the earlier agreed nuclear exit, under a scheme to compensate electric utilities, workers and coal-mining regions.
Self-reliance of German electric vehicle produces needs to increase substantially, according to government advisors. "If the need to import battery cells and e-cars grows in line with the roll-out, effects on the employment would be significant," analysts noted. Under the most pessimistic scenario, there could be up to 410,000 fewer jobs in the sector by 2030.
Germany’s second largest utility RWE could receive up to two billion Euros in compensation for closing its lignite power station under a coal exit agreement currently drawn up by the economy ministry. The Czech energy holding EPH, however, is asking for significantly more compensation for its power assets in eastern Germany than the government is willing to pay.
Adani Power and NTPC, two of India’s largest power producers, have pleaded to the government in Delhi to extend the deadlines of retrofitting coal power stations by two to three years. High costs for retrofits and India’s continued reliance on cheap thermal coal now needs to be weighed up against rampant air pollution.
‘Wider Access’ – the latest project launched by National Grid ESO to increase accessibility to the UK balancing mechanism – is already attracting new market entrants. Aggregated power units, notably hybrid and battery-based units, are increasingly being dispatched in this regulated market, providing the grid operator with much-needed flexibly.