Japan's utilities to increase oil use by 10.5% in 2009-10

By Platts


Arc Flash Training - CSA Z462 Electrical Safety

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
Japanese power utilities are expected to lift their oil consumption by 10.5% year on year in fiscal 2009-2010 (April-March) despite a drop in power demand as they switch from gas to oil as their preferred feedstock.

Lower nuclear power generation rates have also propped up the total oil demand estimate for the current fiscal year, a survey of the 10 major power companies showed.

Total oil demand by nine of the 10 utilities is expected to be 18.71 million kiloliters (117.6 million barrels) in 2009-2010 compared with 16.92 million kl in 2008-2009, according to data released by them.

LNG demand from these nine utilities is expected to be down 7.4% at 34.18 million metric tons in 2009-2010 compared with 36.92 million mt in the previous fiscal year.

The above figures exclude data from Kansai Electric, Japan's second largest power company, which did not give its feedstock breakup.

Kansai Electric officials said the company's coal, oil and LNG demand is expected to slip 23% year on year to 8.55 million kl of oil equivalent in fiscal 2009-2010 from 11.09 million kl in 2008-2009 due to a slowdown in power demand.

Tokyo Electric Power Company, Japan's largest power utility with a total generation capacity of 61,835 MW, on March 31 said it would use more oil and less LNG in fiscal 2009-2010 as there was more flexibility in adjusting oil purchases vis-a-vis LNG.

Tepco said it expected oil demand to go up 22.7% year on year to 10.8 million kl in the new fiscal year, while the utility's LNG demand is expected to fall 9% to 17.4 million mt. Tepco's higher oil demand estimate has accounted for most of the 10.5% jump in total oil demand by utilities.

Tepco's higher oil demand projections are also based on the assumption that the company's earthquake-hit 8.212 GW Kashiwazaki-Kariwa nuclear power plant will remain shut through fiscal 2009-2010. The plant has been shut since July 2007.

However, there are strong chances that two of the nuclear reactors at the power plant could start up within this fiscal year, local industry sources said, adding that they did not think Tepco's oil demand would surpass 10 million kl in 2009-2010.

In fact, Tepco has only placed orders for 3.5 million kl of crude and fuel oil for fiscal 2009-2010 with Japanese refiners and trading houses, Platts reported earlier.

Tohoku Electric, the country's fifth-largest, has almost doubled its oil demand projections from 1.09 million kl in 2008-2009 to 2 million kl in the current fiscal year to compensate for a 18.20% drop in LNG demand to 2.7 million mt, the company said.

Shikoku Electric, meanwhile, has lifted its oil demand estimates by 26% to 870,000 kl for 2009-2010 due to lower generation from its coal and nuclear power plants.

However, not all power utilities are shifting away from LNG. Chugoku Electric said it will consume 1.9 million mt of LNG in 2009-2010, up 20% from 1.58 million mt in the previous fiscal as it brings online a new 285 MW gas-fired power plant in Mizushima this month. Chugoku's oil demand is expected to fall 3% to 1.95 million kl in the current fiscal year.

Separately, Hokuriku Electric and Hokkaido Electric have cut oil use by 12.5% and 50%, respectively due to higher nuclear power generation rates.

Looking at overall oil and LNG demand estimates by Japanese power utilities, excluding Kansai Electric, the data shows that power producers are expected to consume 93.56 million kl of oil and LNG in 2009-2010, down 4.3% from 97.77 million kl in 2008-2009.

The drop can be attributed to a slowdown in power demand led by the economic downturn, said to be the most severe in the country's postwar history.

Most power utilities have forecast a drop in power sales in fiscal 2009-2010.

In February 2009, the total power generated by the 10 utilities fell 15.8% year on year to 74,468 GWh as demand from large industrial customers fell, the Federation of Electric Power Companies said in its latest report.

This was the seventh consecutive year-on-year decrease in total power output by the utilities since August 2008. The 10 power companies have a combined electricity generation capacity of 201,333 MW.

With the Japanese economy forecast to contract by 6.6% in 2009 and business confidence at a record low, power demand is unlikely to recover anytime soon. The economy shrank by 12% in the last quarter of 2008.

Related News

ACCIONA Energía Launches 280 MW Wind Farm in Alberta

Forty Mile Wind Farm delivers 280 MW of renewable wind power in Alberta, with 49 Nordex turbines by ACCIONA Energía, supplying clean electricity to the grid, lowering carbon emissions, and enabling future 120 MW expansion.

 

Key Points

A 280 MW ACCIONA Energía wind farm in Alberta with 49 Nordex turbines, delivering clean power and cutting carbon.

✅ 280 MW via 49 Nordex N155 turbines on 108 m towers

✅ Supplies clean power to 85,000+ homes, reducing emissions

✅ Phase II could add 120 MW, reaching 400 MW capacity

 

ACCIONA Energía, a global leader in renewable energy, has successfully launched its Forty Mile Wind Farm in southern Alberta, Canada, amid momentum from a new $200 million wind project announced elsewhere in the province. This 280-megawatt (MW) project, powered by 49 Nordex turbines, is now supplying clean electricity to the provincial grid and stands as one of Canada's ten largest wind farms. It also marks the company's largest wind installation in North America to date. 

Strategic Location and Technological Specifications

Situated approximately 50 kilometers southwest of Medicine Hat, the Forty Mile Wind Farm is strategically located in the County of Forty Mile No. 8. Each of the 49 Nordex N155 turbines boasts a 5.7 MW capacity and stands 108 meters tall. The project's design allows for future expansion, with a potential Phase II that could add an additional 120 MW, bringing the total capacity to 400 MW, a scale comparable to Enel's 450 MW U.S. wind farm now in operation. 

Economic and Community Impact

The Forty Mile Wind Farm has significantly contributed to the local economy. During its peak construction phase, the project created approximately 250 jobs, with 25 permanent positions anticipated upon full operation. These outcomes align with an Alberta renewable energy surge projected to power thousands of jobs across the province. Additionally, the project has injected new tax revenues into the local economy and provided direct financial support to local non-profit organizations, including the Forty Mile Family & Community Support Services, the Medicine Hat Women’s Shelter Society, and the Root Cellar Food & Wellness Hub. 

Environmental Benefits

Once fully operational, the Forty Mile Wind Farm is expected to generate enough clean energy to power more than 85,000 homes, supporting wind power's competitiveness in electricity markets today. This substantial contribution to Alberta's energy mix aligns with ACCIONA Energía's commitment to sustainability and its goal of reducing carbon emissions. The project is part of the company's broader strategy to expand its renewable energy footprint in North America and support the transition to a low-carbon economy. 

Future Prospects

Looking ahead, ACCIONA Energía plans to continue its expansion in the renewable energy sector, as peers like TransAlta add 119 MW in the U.S. to their portfolios. The success of the Forty Mile Wind Farm serves as a model for future projects and underscores the company's dedication to delivering sustainable energy solutions, even as Alberta's energy future presents periodic headwinds. With ongoing developments and a focus on innovation, ACCIONA Energía is poised to play a pivotal role in shaping the future of renewable energy in North America.

The Forty Mile Wind Farm exemplifies ACCIONA Energía's commitment to advancing renewable energy, supporting local communities, and contributing to environmental sustainability, and it benefits from evolving demand signals, including a federal green electricity contract initiative in Canada that encourages clean supply. As the project continues to operate and expand, it stands as a testament to the potential of wind energy in Canada's clean energy landscape.

 

Related News

View more

Europe's Worst Energy Nightmare Is Becoming Reality

European Energy Crisis shocks markets as Russia slashes gas via Nord Stream, spiking prices and triggering rationing, LNG imports, storage shortfalls, and emergency measures to secure energy security before a harsh winter.

 

Key Points

Europe-wide gas shock from reduced Russian flows drives price spikes, rationing risk, LNG reliance, and emergency action.

✅ Nord Stream cuts deepen supply insecurity and storage gaps

✅ LNG imports rise but terminal capacity and shipping are tight

✅ Policy tools: rationing, subsidies, demand response, coal restarts

 

As Russian gas cutoffs upend European energy security, the continent is struggling to cope with what experts say is one of its worst-ever energy crises—and it could still get much worse. 

For months, European leaders have been haunted by the prospect of losing Russia’s natural gas supply, which accounts for some 40 percent of European imports and has been a crucial energy lifeline for the continent. That nightmare is now becoming a painful reality as Moscow slashes its flows in retaliation for Europe’s support for Ukraine, dramatically increasing energy prices and forcing many countries to resort to emergency plans, including emergency measures to limit electricity prices in some cases, and as backup energy suppliers such as Norway and North Africa are failing to step up.

“This is the most extreme energy crisis that has ever occurred in Europe,” said Alex Munton, an expert on global gas markets at Rapidan Energy Group, a consultancy. “Europe [is] looking at the very real prospect of not having sufficient gas when it’s most needed, which is during the coldest part of the year.”

“Prices have shot through the roof,” added Munton, who noted that European natural gas prices—nearly $50 per MMBTu—have eclipsed U.S. price rises by nearly tenfold, and that rolling back electricity prices is tougher than it appears in the current market. “That is an extraordinarily high price to be paying for natural gas, and really there is no immediate way out from here.” 

Many officials and energy experts worry that the crisis will only deepen after Nord Stream 1, the largest gas pipeline from Russia to Europe, is taken down for scheduled maintenance this week. Although the pipeline is supposed to be under repair for only 10 days, the Kremlin’s history of energy blackmail and weaponization has stoked fears that Moscow won’t turn it back on—leaving heavily reliant European countries in the lurch. (Russia’s second pipeline to Germany, Nord Stream 2, was killed in February as Russian President Vladimir Putin prepared to invade Ukraine, leaving Nord Stream 1 as the biggest direct gas link between Russia and Europe’s biggest economy.)

“Everything is possible. Everything can happen,” German economy minister Robert Habeck told Deutschlandfunk on Saturday. “It could be that the gas flows again, maybe more than before. It can also be the case that nothing comes.”

That would spell trouble for the upcoming winter, when demand for energy surges and having sufficient natural gas is necessary for heating. European countries typically rely on the summer months to refill their gas storage facilities. And at a time of war, when the continent’s future gas supply is uncertain, having that energy cushion is especially crucial.

If Russia’s prolonged disruptions continue, experts warn of a difficult winter: one of potential rationing, industrial shutdowns, and even massive economic dislocation. British officials, who just a few months ago warned of soaring power bills for consumers, are now warning of even worse, despite a brief fall to pre-Ukraine war levels in gas prices earlier in the year.

Europe could face a “winter of discontent,” said Helima Croft, a managing director at RBC Capital Markets. “Rationing, industrial shut-ins—all of that is looming.”

Unrest has already been brewing, with strikes erupting across the continent as households struggle under the pressures of spiraling costs of living and inflationary pressures. Some of this discontent has also had knock-on effects in the energy market. In Norway, the European Union’s biggest supplier of natural gas after Russia, mass strikes in the oil and gas industries last week forced companies to shutter production, sending further shockwaves throughout Europe.

European countries are at risk of descending into “very, very strong conflict and strife because there is no energy,” Frans Timmermans, the vice president of the European Commission, told the Guardian. “Putin is using all the means he has to create strife in our societies, so we have to brace ourselves for a very difficult period.”

The pain of the crisis, however, is perhaps being felt most clearly in Germany, which has been forced to turn to a number of energy-saving measures, including rationing heated water and closing swimming pools. To cope with the crunch, Berlin has already entered the second phase of its three-stage emergency gas plan; last week, it also moved to bail out its energy giants amid German utility troubles that have been financially slammed by Russian cutoffs. 

But it’s not just Germany. “This is happening all across Europe,” said Olga Khakova, an expert on European energy security at the Atlantic Council, who noted that France has also announced plans to nationalize the EDF power company as it buckles under mounting economic losses, and the EU outlines gas price cap strategies to temper volatility. “The challenging part is how much can these governments provide in support to their energy consumers, to these companies? And what is that breaking point?”

The situation has also complicated many countries’ climate goals, even as some call it a wake-up call to ditch fossil fuels for Europe. In late June, Germany, Italy, Austria, and the Netherlands announced they would restart old coal power plants as they grapple with shrinking supplies. 

The potential outcomes that European nations are grappling with reveal how this crisis is occurring on a scale that has only been seen in times of war, Munton said. In the worst-case scenario, “we’re talking about rationing gas supplies, and this is not something that Europe has had to contend with in any other time than the wartime,” he said. “That’s essentially where things have got to now. This is an energy war.”

They also underscore the long and painful battle that Europe will continue to face in weaning itself off Russian gas. Despite the continent’s eagerness to leave Moscow’s supply behind, experts say Europe will likely remain trapped in this spiraling crisis until it can develop the infrastructure for greater energy independence—and that could take years. U.S. gas, shipped by tanker, is one option, but that requires new terminals to receive the gas and U.S. energy impacts remain a factor for policymakers. New pipelines take even longer to build—and there isn’t a surfeit of eligible suppliers.

Until then, European leaders will continue to scramble to secure enough supplies—and can only hope for mild weather. The “worst-case scenario is people having to choose between eating and heating come winter,” Croft said. 

 

Related News

View more

Electricity deal clinches $100M bitcoin mining operation in Medicine Hat

Medicine Hat Bitcoin Mining Deal delivers 42 MW electricity to Hut 8, enabling blockchain data centres, cryptocurrency mining expansion, and economic diversification in Alberta with low-cost power, land lease, and rapid construction near Unit 16.

 

Key Points

A pact to supply 42 MW and lease land, enabling Hut 8's blockchain data centres and crypto mining growth in Alberta.

✅ 42 MW electricity from city; land lease near Unit 16

✅ Hut 8 expands to 60.7 MW; blockchain data centres

✅ 100 temporary jobs; 42 ongoing roles in Alberta

 

The City of Medicine Hat has agreed to supply electricity and lease land to a Toronto-based cryptocurrency mining company, at a time when some provinces are pausing large new crypto loads in a deal that will see $100 million in construction spending in the southern Alberta city.

The city will provide electric energy capacity of about 42 megawatts to Hut 8 Mining Corp., which will construct bitcoin mining facilities near the city's new Unit 16 power plant.

The operation is expected to be running by September and will triple the company's operating power to 60.7 megawatts, Hut 8 said, amid broader investments in new turbines across Canada.

#google#

"The signing of the electricity supply agreement and the land lease represents a key component in achieving our business plan for the roll-out of our BlockBox Data Centres in low-cost energy jurisdictions," said the company's board chairman, Bill Tai, in a release.

"[Medicine Hat] offers stable, cost-competitive utility rates and has been very welcoming and supportive of Hut 8's fast-paced growth plans."

In bitcoin mining operations, rows upon rows of power-consuming computers are used to solve mathematical puzzles in exchange for bitcoins and confirm crytopcurrency transactions. The verified transactions are then added to the public ledger known as the blockchain.

Hut 8's existing 18.7-megawatt mining operation at Drumheller, Alta. — a gated compound filled with rows of shipping containers housing the computers — has so far mined 750 bitcoins. Bitcoin was trading Tuesday morning for about $11,180.

Medicine Hat Mayor Ted Clugston says the deal is part of the city's efforts to diversify its economy.

We've made economic development a huge priority down here because we were hit very, very hard by the oil and gas decline," he said, noting that being the generator and vendor of its own electricity puts the city in a uniquely good position.

"Really we're just turning gas into electricity and they're taking that electricity and turning it into blockchain, or ones and zeroes."

Elsewhere in Canada, using more electricity for heat has been urged by green energy advocates, reflecting broader electrification debates.

Hut 8 says construction of the facility is starting right away and will create about 100 temporary jobs. The project is expected to be finished by the third-quarter of this year.

The Medicine Hat mining operation will generate 42 ongoing jobs for electricians, general labourers, systems technicians and security staff.

 

Related News

View more

Westinghouse AP1000 Nuclear Plant Breaks A First Refueling Outage Record

AP1000 Refueling Outage Record showcases Westinghouse nuclear power excellence as Sanmen Unit 2 completes its first reactor refueling in 28.14 days, highlighting safety, reliability, outage optimization, and economic efficiency in China.

 

Key Points

It is the 28.14-day initial refueling at Sanmen Unit 2, a global benchmark achieved with Westinghouse AP1000 technology.

✅ 28.14-day first refueling at Sanmen Unit 2 sets global benchmark

✅ AP1000 design simplifies systems, improves safety and reliability

✅ Outage optimization by Westinghouse and CNNC accelerates schedules

 

Westinghouse Electric Company China operations today announced that Sanmen Unit 2, one of the world's first AP1000® nuclear power plants, has set a new refueling outage record in the global nuclear power industry, completing its initial outage in 28.14 days.

"Our innovative AP1000 technology allows for simplified systems and significantly reduces the amount of equipment, while improving the safety, reliability and economic efficiency of this nuclear power plant, reflecting global nuclear milestones reached recently," said Gavin Liu, president of the Westinghouse Asia Operating Plant Services Business. "We are delighted to see the first refueling outage for Sanmen Unit 2 was completed in less than 30 days. This is a great achievement for Sanmen Nuclear Power Company and further demonstrates the outstanding performance of AP1000 design."

All four units of the AP1000 nuclear power plants in China have completed their first refueling outages in the past 18 months, aligning with China's nuclear energy development momentum across the sector.  The duration of each subsequent outage has fallen significantly - from 46.66 days on the first outage to 28.14 days on Sanmen Unit 2.

"During the first AP1000 refueling outage at the Sanmen site in December 2019, a Westinghouse team of experts worked side-by-side with the Sanmen outage team to partner on outage optimization, and immediately set a new standard for a first-of-a-kind outage, while major refurbishments like the Bruce refurbishment moved forward elsewhere," said Miao Yamin, chairman of CNNC Sanmen Nuclear Power Company Limited. "Lessons learned were openly exchanged between our teams on each subsequent outage, which has built to this impressive achievement."

Westinghouse provided urgent technical support on critical issues during the outage, as international programs such as Barakah Unit 1 achieved key milestones, to help ensure that work was carried out on schedule with no impact to critical path.

In addition to the four AP1000 units in China, two units are under construction at the Vogtle expansion near Waynesboro, Georgia, USA.

Separately, in the United States, a new reactor startup underscored renewed momentum in nuclear generation this year.

 

Related News

View more

Notley announces plans to move Alberta's electricity grid to net-zero by 2035 if elected

Alberta NDP Net-Zero Electricity Plan targets a 2035 clean grid, expands renewable energy, cuts emissions, creates jobs, and boosts economic diversification and rural connectivity, aligning Alberta with Canada's 2050 climate goals.

 

Key Points

A policy to achieve a net-zero electricity grid by 2035, advance renewable energy, cut emissions, and grow jobs.

✅ Net-zero electricity grid target set for 2035

✅ Scales renewable energy and emissions reductions

✅ Focus on jobs, rural connectivity, and diversification

 

Ahead of the NDP’s weekend convention, Alberta’s Opposition leader has committed to transforming the province’s energy sector and moving the province’s electricity grid to net-zero by 2035, despite debate over the federal 2035 net-zero electricity grid target in other provinces, should an orange crush wash over Alberta in the next election.

NDP Leader Rachel Notley said they would achieve this as part of the path towards Canada’s 2050 net-zero emissions goal, aligning with broader clean grids trends, which will help preserve and create jobs in the province.

“I think it’s an important goal. It’s a way of framing the work that we’re going to do within our energy industry and our energy sector, including how Alberta produces and pays for electricity going forward,” said Notley. “We know the world is moving toward different objectives and we still have the ability to lead on that front, but we need to lay down the markers early and focus on reaching those goals.”

Premier Jason Kenney has previously called the 2050 target “aspirational,” and, as the electricity sector faces profound change in Alberta, Notley said, once the work begins, it’s likely they would meet the objective earlier than proposed to reduce greenhouse gas emissions that contribute to global warming.

This is just one key issue that will be addressed at the party’s online convention, which is the first since the NDP’s defeat by the UCP in the last provincial election. Notley said other key issues will address economic diversification, economic recovery, job creation and social issues, as Alberta’s electricity market is headed for a reshuffle too. The focus, as she puts it, is “jobs, jobs, jobs.”

Attendees will also debate more than 140 policy resolutions over the weekend, including the development of a safe supply drug policy, banning coal mining in the Rocky Mountains and providing paid sick leave for workers.

Outside the formal agenda, debate over electricity market competition continues in Alberta as stakeholders weigh options.

Notley said an area of growing focus for the NDP will be rural Alberta, which is typically a conservative stronghold. One panel presentation during the convention will focus on connecting and building relationships with rural Albertans and growing the NDP profile in those areas.

“We think that we have a lot to offer rural Alberta and that, quite frankly, the UCP and (Kenney), in particular, have profoundly taken rural Alberta for granted,” she said. “Because of that, we think with a renewed energy amongst our membership to go out to parts of the province where we haven’t been previously as active, and talk about what they have been subjected to in the last two years, that we have huge opportunities there.”

Delegates will be asked to support a call for high-speed internet coverage across Alberta, which would remove barriers to access in rural Alberta and Indigenous communities, said the convention guidebook.

The convention comes as the NDP has a wide lead on the UCP, according to the latest polls. A Leger online survey of 1,001 Albertans conducted between March 5 to 8 found 40 per cent of respondents support the NDP, compared to just 20 per cent for the UCP.

Notley said it’s “encouraging” to see, but they aren’t taking anything for granted.

“I’ve always believed that Alberta Democrats have to work twice as hard as anybody else in the political spectrum, or the political arena,” she said. “So what we’re going to do is continue to do exactly what we have been, not only being a strong and I would argue fearless Opposition, but also trying to match every oppositional position with something that is propositional — offering Albertans a different vision, including an Alberta path to clean electricity where possible.”

 

Related News

View more

Brazilian electricity workers call for 72-hour strike

Eletrobras Privatization Strike sparks a 72-hour CNE walkout by Brazil's electricity workers, opposing asset sell-offs and grid privatization while pledging essential services; unions target President Wilson Ferreira Jr. over energy-sector reforms.

 

Key Points

A 72-hour CNE walkout by Brazil's electricity workers opposing Eletrobras sell-offs, while keeping essential services.

✅ 72-hour strike led by CNE unions and federations

✅ Targets privatization plans and leadership at Eletrobras

✅ Essential services maintained to avoid consumer impact

 

Brazil's national electricity workers' collective (CNE) has called for a 72-hour strike to protest the privatization of state-run electric company Eletrobras and its subsidiaries.

The CNE, which gathers the electricity workers' confederation, federations, unions and associations, said the strike is to begin at Monday midnight (0300 GMT) and last through midnight Wednesday, even as some utilities elsewhere have considered asking staff to live on site to maintain operations.

Workers are demanding the ouster of Eletrobras President Wilson Ferreira Jr., who they say is the leading promoter of the privatization move.

Some 24,000 workers are expected to take part in the strike. However, the CNE said it will not affect consumers by ensuring essential services, a pledge echoed by utilities managing costs elsewhere such as Manitoba Hydro's unpaid days off during the pandemic.

#google#

Eletrobras accounts for 32 percent of Brazil's installed energy generation capacity, mainly via hydroelectric plants. Besides, it also operates nuclear and thermonuclear plants, and solar and wind farms, reflecting trends captured by young Canadians' interest in electricity jobs in recent years.

The company distributes electricity in six northern and northeastern states, and handles 47 percent of the nation's electricity transmission lines, even as a U.S. grid pandemic warning has highlighted reliability risks.

The government owns a 63-percent stake in the company, a reminder that public policy shapes the sector, similar to Canada's future-of-work investment initiatives announced recently.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified