Power Solutions

Centrica seeks clarification ahead of plans for closer nuclear ties with France

Mark — Tue, 21 Feb 2012 08:00:27 +0000

Centrica is seeking clarification from the Government on key financing and cost issues before making decisions about whether to continue its nuclear power partnership with EDF and build four new nuclear plants in Britain at an estimated cost of £20bn.

The British Gas parent wants more details about how the Government’s electricity market reforms will affect the programme and is pressing for further guidance on the fiscal framework and the complex contracts for differences.

It is also in detailed talks with its French partner and consortium leader about the total costs of the first station, Hinkley Point C in Somerset where contracts worth £250m have already been let to British companies.

Centrica which has a 20pc share of the partnership is expected to provide more details of the outstanding issues with the release of full year financial figures this week. Hinkley still needs planning approval and clearance for the reactor technology and a decision to go ahead is not expected before the end of the year.

Weekly Gas Curve – 20/02/2012

Mark — Mon, 20 Feb 2012 09:28:05 +0000

Gas Curve – We saw an increase last week due to Iran announcing that it would be stopping the supply of oil to six European countries

Weekly Electricity Curve – 20/02/2012

Mark — Mon, 20 Feb 2012 09:25:21 +0000

Electricity Weekly Curve

Scotland could raise £30bn energy fund over 20 years, says Salmond

Mark — Thu, 16 Feb 2012 10:43:14 +0000

An independent Scotland could reap a £30bn dividend from a “reindustrialised” green energy sector over the next 20 years, Alex Salmond said on Wednesday night, raising the stakes in his economic case for a break from the union.

The first minister told an audience of academics, students and members of the public at the London School of Economics Scotland’s “unparallelled energy resources” would give a fully independent Holyrood “a huge competitive advantage” over the rest of Europe.

Salmond also said if Scotland had had full fiscal control since 1979, the nation would now have assets worth between £87bn and £117bn.

“Under independence we would make the best use of our unparalleled energy resources,” he said. “We have 25% of Europe’s tidal power potential, 25% of its offshore wind potential and 10% of its wave power potential – not bad for a nation with less than 1% of Europe’s population.

“Scotland has a huge competitive advantage. We will be able to produce energy better and cheaper than anywhere else – and in deeper waters”.

Salmond cited research by the thinktank Reform Scotland that suggested Scotland could export half the electricity generated by 2020 because of the Scottish government’s renewable energy targets.

Wholesale Gas Price Update

Mark — Mon, 13 Feb 2012 13:00:17 +0000

Gas prices peaked last Wednesday due to the cold weather across Europe, however the market softened towards the end of week and throughout Monday. With the warmer weather forecast throughout Europe, we should see the market stabilise.

Power Solutions save Laundry £40,000 on energy costs

Mark — Tue, 07 Feb 2012 11:06:22 +0000

Independent laundry services provider, StarCounty Textiles Ltd is set to save more than £40,000 on its energy bills thanks to a commercial energy consultant based in North West England.

Read our article in the latest issue of Laundry and Cleaning Today

Electricity Price Curve Update

Mark — Mon, 06 Feb 2012 13:38:39 +0000

The 2 graphs above show the price of electricity over the past 7 days and since January 1st 2012.

The recent cold snap and ongoing tensions in the Middle East have contributed to a spike in prices and raising uncertainty for long term pricing

Freezing Europe hit by Russian gas shortage

Mark — Sat, 04 Feb 2012 08:24:57 +0000

Freezing weather sweeping across Europe has led to a shortage of vital Russian gas supplies to several countries, officials say.

An EU energy spokeswoman said eight countries had seen a reduction in gas due to increased demand in Russia.

She said the situation was not an emergency but was being monitored.

The cold snap is being blamed for scores of deaths in eastern Europe where temperatures have plunged to below -35C.

Freezing temperatures have spread to Italy and France, and the UK is also on alert for snowfall over the weekend.

http://www.bbc.co.uk/news/world-europe-16883560

Power and Gas Markets Driven Upwards

Mark — Mon, 30 Jan 2012 11:35:23 +0000

There were significant gains on the wholesale energy market this morning. The power and gas markets were driven upwards by colder forecast temperatures and concerns about gas supply. Day-ahead power climbed £0.60/MWh to £44.00/MWh as demand is expected to increase. Longer-term prices saw the most movement. Summer 12 power rose by a notable £3.10/MWh to £45.30/MWh, a five-week high. International energy markets were up as a result of the uncertainty surrounding Iran. Month-ahead Brent crude oil was up $0.41/bl to $111.0. But coal saw a significant $5.75t rise to $119.00/t as EU power prices increased.

Oil prices rise over sanctions on Iran

Mark — Tue, 24 Jan 2012 15:27:20 +0000

Oil prices edged up 94 cents to $110.80 a barrel yesterday as the EU imposed its widely-expected embargo on crude exports from Iran, and Tehran reiterated its threat to close the Strait of Hormuz.

Foreign ministers for the 27-nation European bloc agreed to ban all new contracts to import, buy or transport Iranian crude with immediate effect, in an attempt to halt Iran’s nuclear programme.

However, existing oil contracts will be allowed to continue until July 1 to give time to those countries most reliant on Iranian exports – Greece, Italy and Spain, which together buy about 450,000 barrels per day (bpd) – to find other supplies.

Earlier this month the Saudi Arabian oil minister said his country was willing and able to increase supplies “almost immediately” to meet the demand from countries no longer able to buy from Iran in the event of sanctions.

Iran exports about 2.5m bpd and Saudi Arabia produces around 10m bpd but has capacity to increase that to 12.5m bpd.

The embargo saw Iran repeat its threat to close the Strait of Hormuz, the key route through which about 17m barrels of oil is exported from the Middle East daily.