Daily Energy News
Policy & Regulatory
The United States offers US$8.25bn in loans for power grid upgrades
29 Apr 2021
The US Department of Energy has announced the availability of up to US$8.25bn in loans from its Loan Programs Office (LPO) and the Western Area Power Administration (WAPA) to expand and improve the US power transmission network. Adding power transmission capacities is crucial as the country has committed to reach 100% clean electricity by 2035 and as renewable power capacities are often located far away from the consumption centres.
France plans to invest €20.7bn on energy transition in 2021-2027
29 Apr 2021
French authorities have presented the country’s national plan under the EU’s pandemic recovery package, which amounts to a total of €100bn, with €39.4bn being financed by EU grants and the remainder by national borrowing. Through its FFR recovery facility («facilité pour la reprise et la résilience»), France plans to allocate €20.7bn to climate-related investments, including €6.5bn to green infrastructure and mobility, €5.8bn to building renovation (total cost of €6.7bn), €5.1bn to the green energies and technologies, and €0.9bn in decarbonising industry and agriculture.
Spain will invest €55bn on energy transition in 2021-2027
28 Apr 2021
The Spanish Council of Ministers has approved the country’s €140bn National Recovery, Transformation and Resilience Plan. Around 39% of the amount will be allocated to the ecological transition. The authorities plan to invest in renewables, including biomass and offshore wind, transmission infrastructures, smart grids, storage, and hydrogen. The reform program will be submitted to the European Commission on 30 April 2021 as part of the Next Generation EU, a €750bn temporary recovery instrument (2021-2027) aimed at addressing the economic crisis caused by the COVID-19 pandemic.
France shortlists 6 bidders for the 1 GW Cotentin offshore wind project
28 Apr 2021
The French government has shortlisted 6 companies and consortia to take part in the competition to develop a 1 GW offshore wind project off the coast of Cotentin in Normandy (north-western France). The selected candidates include Éoliennes en Mer Manche Normandie, a project company of EDF Renouvelable and Maple Power (a joint venture of Enbridge and CPPIB); Iberdrola Renovables France; Ocean Winds (a offshore wind joint venture owned by Engie and EDPR); Shell; a consortium formed by Total and RWE; and a consortium of Vattenfall, wpd, and the Banque des Territoires.
Companies
Engie will stop using coal at three power units totalling 725 MW in Chile
29 Apr 2021
Engie has decided to stop using coal at three thermal power units totalling 725 MW in Chile and to convert them to gas or biomass by 2025. Engie Energia Chile plans to invest US$75m to switch by 2025 two units of the Mejillones coal-fired power (350 MW) to biomass and the IEM coal-fired unit (375 MW) to natural gas. In addition, the group plans to raise its renewable portfolio in Chile by another 1 GW (on top of the 1 GW announced in 2019, of which 0.6 GW is already under construction), as part of a €1.5bn (US$1.8bn) investment by 2025.
Energy & Climate Markets
The OPEC+ maintains increase of oil output by 1,141 kb/d over May-July 2021
29 Apr 2021
The OPEC+ has decided on the continued implementation of the production adjustment decision of early April 2021, when the cartel agreed to gradually increase oil production in May 2021 by 350 kb/d, in June 2021 by 350 kb/d and in July 2021 by 441 kb/d. Saudi Arabia had committed to voluntary outputs cuts of 1 mb/d as of February 2021; these volumes will gradually return on the market over the May-July 2021 period. The OPEC+ is seeking to adjust overall crude production to the pace of the oil demand recovery.
Global gas flaring declined by 5% in 2020 to 142 bcm
29 Apr 2021
According to the World Bank, the total volume of gas flared in the world decreased by 5% in 2020, from 150 bcm in 2019 to 142 bcm in 2020. The United States accounts for 70% of the global decline (-5.5 bcm), with gas flaring falling by 32% in 2020, due to an 8% drop in US oil production combined with new infrastructure to use gas that would otherwise be flared.
Fukui (Japan) authorises 3 nuclear reactors older than 40 years to restart
29 Apr 2021
The Governor of Fukui (Japan) has authorised Kansai Electric to resume operations at units 1 and 2 of the Takahama nuclear power plant (2 x 780 MW) and unit 3 at the Mihama nuclear power plant (780 MW). This is the first time reactors older than 40 years are approved to restart.
Russia’s Arctic LNG 2 project signs 20-year SPAs for its total production
29 Apr 2021
Novatek’s Arctic LNG 2 has concluded 20-year LNG Sales and Purchase Agreements (SPAs) with all the project’s participants for the total LNG production volumes. The 19.8 Mt/year Arctic LNG 2 project is owned by Novatek (60%), Total, CNOOC, CNPC and Japan Arctic LNG (10% each). The LNG offtake volumes are set in proportion to the respective participants’ ownership stakes in the project and LNG will be supplied on a FOB basis (FOB Murmansk and FOB Kamchatka) with pricing formulas linked to international oil and gas benchmarks.
Infrastructure & Investments
The Bay of Biscay interconnection project (France/Spain) moves forward
29 Apr 2021
The Spanish power transmission system operator (TSO) Red Eléctrica de España (REE) has presented the preliminary project and the environmental impact study of the new power interconnection between Spain and France through the Bay of Biscay.
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