Reactor shutdown opens door to Russia plans

By Associated Press


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To the European Union, Lithuania's Soviet-built nuclear power plant is a gigantic safety hazard that needs to finally shut down this New Year's Eve.

To Lithuanians, however, the twin concrete reactor blocks of the Ignalina plant, rising amid lakes and oak forests near the country's eastern border, have been a symbol of energy independence since the small Baltic country regained its freedom after the 1991 Soviet collapse.

That is why the EU-ordered shutdown of the plant's last working reactor — considered too similar to the one that exploded at Chernobyl in 1986 — is making Lithuanians uneasy. They now face the prospect of importing energy from Russia, considered an unreliable energy partner by many after its state-owned gas company shut off supplies through Ukraine last year and in 2006 over price disputes.

Lithuania will wake up January 1 with 40 percent less generating capacity, a gap that has set off a race to build new, safer nuclear plants to supply electricity to the Baltics and Eastern Europe, a race Moscow is trying mightily to win.

On top of that, Lithuanians will pay more for electricity at a time when their economy is in a deep recession.

"We'll have to pay two or three times more for energy, and our competitiveness in European markets will be damaged," said Bronislovas Lubys, CEO of the Achema Group, a chemical consortium. The country's central bank says the loss of the plant will cost the economy an additional 1 percent a year.

In the eastern town of Visaginas, where the Ignalia plant is located, the mood is grim. Some 80 percent of of the town's residents are Russian speakers who moved there in the 1980s to build the hulking twin concrete reactor blocks.

"Lithuania's economy and energy industry are not prepared to live without a nuclear power plant," plant chief Viktor Shevaldin told The Associated Press. "Prices for consumers will increase starting in 2010, and this will undoubtedly affect the population's standard of living, industry and the economy as a whole."

The shutdown comes even as the EU seeks more energy independence from Russia, though it refused Lithuanian efforts to revisit the Ignalina shutdown.

The EU wanted the 1980s plant shut down as a condition of EU membership because the two RBMK-1500 model reactors are too similar to the RBMK-1000 version that exploded at Chernobyl on April 26, 1986, casting a radioactive cloud over Europe. Ignalina's first reactor was shut down in 2004, while the second will be disconnected from the power grid an hour before midnight December 31.

Come January 1, the country will cover the shortfall by buying kilowatts on the open market — from Estonia, Belarus, Ukraine and Russia. By 2013 it hopes to build a new natural-gas power plant, but that would fall short of meeting its own energy needs.

Russia is ready to fill the gap, and is gearing up to build a two-reactor nuclear plant just 10 miles from the Lithuanian border in Russia's exclave of Kaliningrad, wedged between Poland and Lithuania.

The planned $5 billion Baltic Nuclear Power Plant, to be built near town of Sovetsk, would be overkill for Kaliningrad, a region of 1 million people whose future energy are already taken care of by a planned a planned gas-fired power plant to be built by 2012.

"We'll export all the output from the nuclear power plant... we've never concealed that fact," Kaliningrad's regional governor, Georgy Boos, told The Associated Press in his office in the exclave. "By 2016, when we launch the first reactor, there will be a huge energy shortage" throughout the Baltic Sea region, he said.

To assuage European fears about reliance on Russian kilowatts, Russia is offering foreign investors a minority stake in the new plant.

The problem is, Lithuania is essentially courting the same pool of investors for its own planned new plant in Visaginas. If the Russian plant is already established, Lithuania will be hard pressed for a market for its own future plant.

Because Lithuania still functions on the old Soviet power grid, it is isolated from Europe's — though the EU is working over the long term on building new connections to change that.

Lithuania is pinning its hopes on two possible alternatives: a 600 million euro underwater power cable with Sweden, and a 1.1 billion euro grid connection beween Alytas, Lithuania and Elk in northern Poland.

But the link with Sweden will require eight years, and the one with Poland a decade, according to a new EU study. This is why Ignalina plant boss Shevaldin thinks Lithuania's chances of finding investors "aren't very good."

"Russia has the advantage since it already knows what kind of reactor it will build. In this sense they'll build their station quicker than Lithuania," Shevaldin, a native Russian who moved to Lithuania in the 1980s.

Belarus is also eager to join the competition and have Russia's Rosatom build its first nuclear plant, which would go up not far across the border from the Lithuanian capital of Vilnius. Russia has expressed willingness not only to build the plant but also to help with finance.

Still, the Russian plans face obstacles. There are no grid connections between Poland and Kaliningrad, and those that exist between Kaliningrad and Lithuania will need to be upgraded. Given their distrust of Russia, the Poles and Lithuanians might not cooperate.

With the three nuclear plants planned in the same region, things could get crowded.

"The construction of a nuclear power plant is very expensive — the economic costs of waste disposal and environmental risks are huge," said energy specialist Claudia Kemfert at the German Institute for Economic Research in Berlin. "So I do not believe that all the planned projects will be realized because of economic costs. I could imagine that one of the three will be."

The Russians have fast-tracked the Kaliningrad project, squeezing 4-7 years of environmental impact studies and licensing into less than two years.

Public opinion in Kaliningrad is against the project, says Alexandra Koroleyva, who heads the region's branch of Eco-Defense, an environmental group opposed to nuclear energy. "There's a lot of people who moved here from Chernobyl, so you'll rarely meet someone on the street who'll say they want an atomic power plant," said Alexandra Koroleva.

"I hope I'm not around when it begins operating," said resident Ivan Trutnev, 72. "I know they've got this advanced technology nowadays, but if one thing goes wrong, it'll all be over."

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Georgia Power customers to see $21 reduction on June bills

Georgia Power June bill credit delivers PSC-approved savings, lower fuel rates, and COVID-19 relief for residential customers, driven by natural gas prices and 2018 earnings, with typical 1,000 kWh users seeing June bill reductions.

 

Key Points

A PSC-approved one-time credit and lower fuel rates reducing June bills for Georgia Power residential customers.

✅ $11.29 credit for 1,000 kWh usage on June bills

✅ Fuel rate cut saves $10.26 per month from June to September 2020

✅ PSC-approved $51.5M credit based on Georgia Power's 2018 results

 

Georgia Power announced that the typical residential customer using 1,000-kilowatt hours will receive an $11.29 credit on their June bill, reflecting a lump-sum credit model also used elsewhere.

This reflects implementation of a one-time $51.5 million credit for customers, similar to Gulf Power's bill decrease efforts, approved by the Georgia Public Service Commission, as a result of

Georgia Power's 2018 financial results.

Pairing the June credit with new, lower fuel rates recently announced, the typical residential customer would see a reduction of $21.55 in June, even as some regions face increases like Pennsylvania's winter price hikes elsewhere.

The amount each customer receives will vary based on their 2018 usage. Georgia Power will apply the credit to June bills for customers who had active accounts as of Dec. 31, 2018, and are still active or receiving a final bill as of June 2020, and the company has issued pandemic scam warnings to help customers stay informed.

Fuel rate lowered 17.2 percent

In addition to the approved one-time credit in June, the Georgia PSC recently approved Georgia Power’s plan to reduce its fuel rates by 17.2 percent and total billings by approximately $740 million over a two-year period. The implementation of a special interim reduction will provide customers additional relief during the COVID-19 pandemic through even lower fuel rates over the upcoming 2020 summer months. The lower fuel rate and special interim reduction will lower the total bill of a typical residential customer using an average of 1,000-kilowatt hours by a total of $10.26 per month from June through September 2020.

The reduction in the company’s fuel rate is driven primarily by lower natural gas prices, even as FPL proposed multiyear rate hikes in Florida, as a result of increased natural gas supplies, which the company is able to take advantage of to benefit customers due to its diverse generation sources.

February bill credit due to tax law savings

Georgia Power completed earlier this year the third and final bill credit associated with the Tax Cuts and Jobs Act of 2017, resulting in credits totaling $106 million. The typical residential customer using an average of 1,000 kilowatt-hours per month received a credit of approximately $22 on their February Georgia Power bill, a helpful offset as U.S. electric bills rose 5% in 2022 according to national data.

 

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For Hydro-Québec, selling to the United States means reinventing itself

Hydro-Quebec hydropower exports deliver low-carbon electricity to New England, sparking debate on greenhouse gas accounting, grid attributes, and REC-style certificates as Quebec modernizes monitoring to verify emissions, integrate renewables, and meet ambitious climate targets.

 

Key Points

Low-carbon electricity to New England, with improved emissions tracking and verifiable grid attributes.

✅ Deep, narrow reservoirs cut lifecycle GHGs in cold boreal waters

✅ Attribute certificates trace source, type, and carbon intensity

✅ Contracts require facility-level tagging for compliance

 

For 40 years, through the most vicious interprovincial battles, even as proposals for bridging the Alberta-B.C. gap aimed to improve grid resilience, Canadians could agree on one way Quebec is undeniably superior to the rest of the country.

It’s hydropower, and specifically the mammoth dam system in Northern Quebec that has been paying dividends since it was first built in the 70s. “Quebec continues to boast North America’s lowest electricity prices,” was last year’s business-as-usual update in one trade publication, even as Newfoundland's rate strategy seeks relief for consumers.

With climate crisis looming, that long-ago decision earns even more envy and reflects Canada's electricity progress across the grid today. Not only do they pay less, but Quebeckers also emit the least carbon per capita of any province.

It may surprise most Canadians, then, to hear how most of New England has reacted to the idea of being able to buy permanently into Quebec’s power grid.

​​​​​​Hydro-Québec’s efforts to strike major export deals have been rebuffed in the U.S., by environmentalists more than anyone. They question everything about Quebec hydropower, including asking “is it really low-carbon?”

These doubts may sound nonsensical to regular Quebeckers. But airing them has, in fact, pushed Hydro-Québec to learn more about itself and adopt new technology.

We know far more about hydropower than we knew 40 years ago, including whether it’s really zero-emission (it’s not), how to make it as close to zero-emission as possible, and how to account for it as precisely as new clean energies like solar and wind, underscoring how cleaning up Canada's electricity is vital to meeting climate pledges.

The export deals haven’t gone through yet, but they’ve already helped drag Hydro-Québec—roughly the fourth-biggest hydropower system on the planet—into the climate era.

Fighting to export
One of the first signs of trouble for Quebec hydro was in New Hampshire, almost 10 years ago. People there began pasting protest signs on their barns and buildings. One citizens’ group accused Hydro of planning a “monstrous extension cord” across the state.

Similar accusations have since come from Maine, Massachusetts and New York.

The criticism isn’t coming from state governments, which mostly want a more permanent relationship with Hydro-Québec. They already rely on Quebec power, but in a piecemeal way, topping up their own power grid when needed (with the exception of Vermont, which has a small permanent contract for Quebec hydropower).

Last year, Quebec provided about 15 percent of New England’s total power, plus another substantial amount to New York, which is officially not considered to be part of New England, and has its own energy market separate from the New England grid.

Now, northeastern states need an energy lynch pin, rather than a top-up, with existing power plants nearing the end of their lifespans. In Massachusetts, for example, one major nuclear plant shut down this year and another will be retired in 2021. State authorities want a hydro-based energy plan that would send $10 billion to Hydro-Québec over 20 years.

New England has some of North America’s most ambitious climate goals, with every state in the region pledging to cut emissions by at least 80 percent over the next 30 years.

What’s the downside? Ask the citizens’ groups and nonprofits that have written countless op-eds, organized petitions and staged protests. They argue that hydropower isn’t as clean as cutting-edge clean energy such as solar and wind power, and that Hydro-Québec isn’t trying hard enough to integrate itself into the most innovative carbon-counting energy system. Right as these other energy sources finally become viable, they say, it’s a step backwards to commit to hydro.

As Hydro-Québec will point out, many of these critics are legitimate nonprofits, but others may have questionable connections. The Portland Press Herald in Maine reported in September 2018 that a supposedly grassroot citizens’ group called “Stand Up For Maine” was actually funded by the New England Power Generators Association, which is based in Boston and represents such power plant owners as Calpine Corp., Vistra Energy and NextEra Energy.

But in the end, that may not matter. Arguably the biggest motivator to strike these deals comes not from New England’s needs, but from within Quebec. The province has spent more than $10 billion in the last 15 years to expand its dam and reservoir system, and in order to stay financially healthy, it needs to double its revenue in the next 10 years—a plan that relies largely on exports.

With so much at stake, it has spent the last decade trying to prove it can be an energy of the future.

“Learning as you go”
American critics, justified or not, have been forcing advances at Hydro for a long time.

When the famously huge northern Quebec hydro dams were built at James Bay—construction began in the early 1970s—the logic was purely economic. The term “climate change” didn’t exist. The province didn’t even have an environment department.

The only reason Quebec scientists started trying to measure carbon emissions from hydro reservoirs was “basically because of the U.S.,” said Alain Tremblay, a senior environmental advisor at Hydro Quebec.


Alain Tremblay, senior environmental advisor at Hydro-Québec. Photograph courtesy of Hydro-Québec
In the early 1990s, Hydro began to export power to the U.S., and “because we were a good company in terms of cost and efficiency, some Americans didn't like that,” he said—mainly competitors, though he couldn’t say specifically who. “They said our reservoirs were emitting a lot of greenhouse gases.”

The detractors had no research to back up that claim, but Hydro-Québec had none to refute it, either, said Tremblay. “At that time we didn’t have any information, but from back-of-the envelope calculations, it was impossible to have the emissions the Americans were expecting we have.”

So research began, first to design methods to take the measurements, and then to carry them out. Hydro began a five-year project with a Quebec university.

It took about 10 years to develop a solid methodology, Tremblay said, with “a lot of error and learning-as-you-go.” There have been major strides since then.

“Twenty years ago we were taking a sample of water, bringing it back to the lab and analyzing that with what we call a gas chromatograph,” said Tremblay. “Now, we have an automated system that can measure directly in the water,” reading concentrations of CO2 and methane every three hours and sending its data to a processing centre.

The tools Hydro-Québec uses are built in California. Researchers around the world now follow the same standard methods.

At this point, it’s common knowledge that hydropower does emit greenhouse gases. Experts know these emissions are much higher than previously thought.

Workers on the Eastmain-1 project environmental monitoring program. Photography courtesy of Alain Tremblay.
​But Hydro-Québec now has the evidence, also, to rebut the original accusations from the early 1990s and many similar ones today.

“All our research from Université Laval [found] that it’s about a thousand years before trees decompose in cold Canadian waters,” said Tremblay.

Hydro reservoirs emit greenhouse gases because vegetation and sometimes other biological materials, like soil runoff, decay under the surface.

But that decay depends partly on the warmth of the water. In tropical regions, including the southern U.S., hydro dams can have very high emissions. But in boreal zones like northern Quebec (or Manitoba, Labrador and most other Canadian locations with massive hydro dams), the cold, well-oxygenated water vastly slows the process.

Hydro emissions have “a huge range,” said Laura Scherer, an industrial ecology professor at Leiden University in the Netherlands who led a study of almost 1,500 hydro dams around the world.

“It can be as low as other renewable energy sources, but it can also be as high as fossil fuel energy,” in rare cases, she said.

While her study found that climate was important, the single biggest factor was “sizing and design” of each dam, and specifically its shape, she said. Ideally, hydro dams should be deep and narrow to minimize surface area, perhaps using a natural valley.

Hydro-Québec’s first generation of dams, the ones around James Bay, were built the opposite way—they’re wide and shallow, infamously flooding giant tracts of land.


Alain Tremblay, senior environmental advisor at Hydro-Québec testing emission levels. Photography courtesy of Alain Tremblay
Newly built ones take that new information into account, said Tremblay. Its most recent project is the Romaine River complex, which will eventually include four reservoirs near Quebec’s northeastern border with Labrador. Construction began in 2016.

The site was picked partly for its topography, said Tremblay.

“It’s a valley-type reservoir, so large volume, small surface area, and because of that there’s a pretty limited amount of vegetation that’s going to be flooded,” he said.

There’s a dramatic emissions difference with the project built just before that, commissioned in 2006. Called Eastmain, it’s built near James Bay.

“The preliminary results indicate with the same amount of energy generated [by Romaine] as with Eastmain, you’re going to have about 10 times less emissions,” said Tremblay.

Tracing energy to its source
These signs of progress likely won’t satisfy the critics, who have publicly argued back and forth with Hydro about exactly how emissions should be tallied up.

But Hydro-Québec also faces a different kind of growing gap when it comes to accounting publicly for its product. In the New England energy market, a sophisticated system “tags” all the energy in order to delineate exactly how much comes from which source—nuclear, wind, solar, and others—and allows buyers to single out clean power, or at least the bragging rights to say they bought only clean power.

Really, of course, it’s all the same mix of energy—you can’t pick what you consume. But creating certificates prevents energy producers from, in worst-case scenarios, being able to launder regular power through their clean-power facilities. Wind farms, for example, can’t oversell what their own turbines have produced.

What started out as a fraud prevention tool has “evolved to make it possible to also track carbon emissions,” said Deborah Donovan, Massachusetts director at the Acadia Center, a climate-focused nonprofit.

But Hydro-Québec isn’t doing enough to integrate itself into this system, she says.

It’s “the tool that all of our regulators in New England rely on when we are confirming to ourselves that we’ve met our clean energy and our carbon goals. And…New York has a tool just like that,” said Donovan. “There isn’t a tracking system in Canada that’s comparable, though provinces like Nova Scotia are tapping the Western Climate Initiative for technical support.”

Hydro Quebec Chénier-Vignan transmission line crossing the Outaouais river. Photography courtesy of Hydro-Québec
Developing this system is more a question of Canadian climate policy than technology.

Energy companies have long had the same basic tracking device—a meter, said Tanya Bodell, a consultant and expert in New England’s energy market. But in New England, on top of measuring “every time there’s a physical flow of electricity” from a given source, said Bodell, a meter “generates an attribute or a GIS certificate,” which certifies exactly where it’s from. The certificate can show the owner, the location, type of power and its average emissions.

Since 2006, Hydro-Québec has had the ability to attach the same certificates to its exports, and it sometimes does.

“It could be wind farm generation, even large hydro these days—we can do it,” said Louis Guilbault, who works in regulatory affairs at Hydro-Québec. For Quebec-produced wind energy, for example, “I can trade those to whoever’s willing to buy it,” he said.

But, despite having the ability, he also has the choice not to attach a detailed code—which Hydro doesn’t do for most of its hydropower—and to have it counted instead under the generic term of “system mix.”

Once that hydropower hits the New England market, the administrators there have their own way of packaging it. The market perhaps “tries to determine emissions, GHG content,” Guilbault said. “They have their own rules; they do their own calculations.”

This is the crux of what bothers people like Donovan and Bodell. Hydro-Québec is fully meeting its contractual obligations, since it’s not required to attach a code to every export. But the critics wish it would, whether by future obligation or on its own volition.

Quebec wants it both ways, Donovan argued; it wants the benefits of selling low-emission energy without joining the New England system of checks and balances.

“We could just buy undifferentiated power and be done with it, but we want carbon-free power,” Donovan said. “We’re buying it because of its carbon content—that’s the reason.”

Still, the requirements are slowly increasing. Under Hydro-Québec’s future contract with Massachusetts (which still has several regulatory steps to go through before it’s approved) it’s asked to sell the power’s attributes, not just the power itself. That means that, at least on paper, Massachusetts wants to be able to trace the energy back to a single location in Quebec.

“It’s part of the contract we just signed with them,” said Guilbault. “We’re going to deliver those attributes. I’m going to select a specific hydro facility, put the number in...and transfer that to the buyers.”

Hydro-Québec says it’s voluntarily increasing its accounting in other ways. “Even though this is not strictly required,” said spokeswoman Lynn St. Laurent, Hydro is tracking its entire output with a continent-wide registry, the North American Renewables Registry.

That registry is separate from New England’s, so as far as Bodell is concerned, the measure doesn’t really help. But she and others also expect the entire tracking system to grow and mature, perhaps integrating into one. If it had been created today, in fact, rather than in the 1990s, maybe it would use blockchain technology rather than a varied set of administrators, she said.

Counting emissions through tracking still has a long way to go, as well, said Donovan, and it will increasingly matter in Canada's race to net-zero as standards tighten. For example, natural gas is assigned an emissions number that’s meant to reflect the emissions when it’s consumed. But “we do not take into account what the upstream carbon emissions are through the pipeline leakage, methane releases during fracking, any of that,” she said.

Now that the search for exactitude has begun, Hydro-Québec won’t be exempt, whether or not Quebeckers share that curiosity. “We don’t know what Hydro-Québec is doing on the other side of the border,” said Donovan.

 

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Californians Learning That Solar Panels Don't Work in Blackouts

Rooftop Solar Battery Backup helps Californians keep lights on during PG&E blackouts, combining home energy storage with grid-tied systems for wildfire prevention, outage resilience, and backup power when solar panels cannot supply nighttime demand.

 

Key Points

A home battery paired with rooftop solar, providing backup power and blackout resilience when the grid is down.

✅ Works when grid is down; panels alone stop for safety.

✅ Requires home battery storage; market adoption is growing.

✅ Supports wildfire mitigation and PG&E outage preparedness.

 

Californians have embraced rooftop solar panels more than anyone in the U.S., but amid California's solar boom many are learning the hard way the systems won’t keep the lights on during blackouts.

That’s because most panels are designed to supply power to the grid -- not directly to houses, though emerging peer-to-peer energy models may change how neighbors share power in coming years. During the heat of the day, solar systems can crank out more juice than a home can handle, a challenge also seen in excess solar risks in Australia today. Conversely, they don’t produce power at all at night. So systems are tied into the grid, and the vast majority aren’t working this week as PG&E Corp. cuts power to much of Northern California to prevent wildfires, even as wildfire smoke can dampen solar output during such events.

The only way for most solar panels to work during a blackout is pairing them with solar batteries that store excess energy. That market is just starting to take off. Sunrun Inc., the largest U.S. rooftop solar company, said some of its customers are making it through the blackouts with batteries, but it’s a tiny group -- countable in the hundreds.

“It’s the perfect combination for getting through these shutdowns,” Sunrun Chairman Ed Fenster said in an interview. He expects battery sales to boom in the wake of the outages, as the state has at times reached a near-100% renewables mark that heightens the need for storage.

And no, trying to run appliances off the power in a Tesla Inc. electric car won’t work, at least without special equipment, and widespread U.S. power-outage risks are a reminder to plan for home backup.

 

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Hydro One bends to government demands, caps CEO pay at $1.5M

Hydro One CEO Pay Cap sets executive compensation at $1.5 million under Ontario's provincial directive, linking incentives to transmission and distribution cost reductions, governance improvements, and board pay limits at the electricity utility.

 

Key Points

The Hydro One CEO Pay Cap limits pay to $1.5M, linking incentives to cost reductions and defined targets.

✅ Base salary set at $500,000 per year.

✅ Incentives capped at $1,000,000, tied to cost cuts.

✅ Board pay capped: chair $120,000; members $80,000.

 

Hydro One has agreed to cap the annual compensation of its chief executive at $1.5 million, the provincial utility said Friday, acquiescing to the demands of the Progressive Conservative government.

The CEO's base salary will be set at $500,000 per year, while short-term and long-term incentives are limited to $1 million. Performance targets under the pay plan will include the CEO's contributions to reductions in transmission and distribution costs, even as Hydro One has pursued a bill redesign to clarify charges for customers.

The framework represents a notable political victory for Premier Doug Ford, who vowed to fire Hydro One's CEO and board during the campaign and promised to reduce the annual earnings of Hydro One's board members.

In February, the province issued a directive to the board, ordering it to pay the utility's CEO no more than the $1.5 million figure it has now agreed to, as part of a broader push to lower electricity rates across Ontario.

Hydro One and the government had been at loggerheads over executive compensation, with the company refusing repeated requests to slash the CEO pay below $2,775,000. The board argued it would have difficulty recruiting suitable leaders for anything less, even as customers contend with a recovery rate that could raise hydro bills.

Further, the company agreed to pay the board chair no more than $120,000 annually and board members no more than $80,000 — figures Energy Minister Greg Rickford had outlined in his directive last month, amid calls for cleaning up Ontario's hydro mess from policy commentators.

"Hydro One's compliance with this directive allows us to move forward as a province. It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency," Rickford said in a statement issued Friday morning.

 

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European gas prices fall to pre-Ukraine war level

European Gas Prices hit pre-invasion lows as LNG inflows, EU storage gains, and softer oil markets ease the energy crisis, while recession risks, windfall taxes, and ExxonMobil's challenge shape demand and policy.

 

Key Points

European gas prices reflect supply, LNG inflows, storage, and policy, shaping energy costs for households and industry.

✅ Month-ahead hit €76.78/MWh, rebounding to €85.50/MWh.

✅ EU storage 83.2% filled; autumn peak exceeded 95%.

✅ Demand tempered by recession risks; LNG inflows offset Russian cuts.

 

European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages and as coal demand dropped across Europe during winter.

The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, amid EU talks on gas price cap strategies that could shape markets, before closing higher at €83.70, according to Refinitiv, a data company.

The invasion roiled global energy markets, serving as a wake-up call to ditch fossil fuels for policymakers, and forced European countries, including industrial powerhouse Germany, to look for alternative suppliers to those funding the Kremlin. Europe had continued to rely on Russian gas even after its 2014 annexation of Crimea and support for separatists in eastern Ukraine.

On Tuesday 83.2% of EU gas storage was filled, data from industry body Gas Infrastructure Europe showed. The EU in May set a target of filling 80% of its gas storage capacity by the start of November to prepare for winter, and weighed emergency electricity measures to curb prices as needed. It hit that target in August, and by mid-November it had peaked at more than 95%.

Gas prices bounced further off the 10-month low on Thursday to reach €85.50 per megawatt hour.

Europe has several months of domestic heating demand ahead, and some industry bosses believe energy shortages could also be a problem next winter, with a worst energy nightmare still possible if supplies tighten. However, traders have also had to weigh the effects of recessions expected in several big European economies, which could dent energy demand.

UK gas prices have also dropped back from their highs earlier this year, and forecasts suggest UK energy bills to drop in April. The day-ahead gas price closed at 155p per therm on Wednesday, compared with 200p/therm at the start of 2022, and more than 500p/therm in August.

Europe’s response to the prospect of gas shortages also included campaigns to reduce energy use – a strategy belatedly adopted by the UK – and windfall taxes on energy companies to help raise revenues for governments, many of which have started expensive subsidies to cushion the impact of high energy prices for households and consumers. Energy companies have enjoyed huge profits at the expense of businesses and households this year, as EU inflation accelerated, but costs remained much the same.

However, the US oil company ExxonMobil on Wednesday launched a legal challenge against EU plans for a windfall tax on oil companies, according to filings by its German and Dutch subsidiaries at the European general court in Luxembourg. ExxonMobil argued that the windfall tax would be “counter-productive” because it said it would result in lower investment in fossil fuel extraction, and that the EU did not have the legal jurisdiction to impose it.

ExxonMobil’s move has prompted anger among European politicians. A message posted on the Twitter account of Paolo Gentiloni, the EU’s commissioner for the economy, on Thursday stated: “Fairness and solidarity, even for corporate giants. #Exxon.”

Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday.

Oil prices dropped by 1.7% on Thursday. Prices had risen from 12-month lows in early December as traders hoped for increased demand from China after it relaxed its coronavirus restrictions. However, Covid-19 infection numbers are thought to have surged in the country, prompting the US to require travellers from China to show a negative test for the disease and tempering expectations for a rapid increase in oil demand.

 

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A new nuclear reactor in the U.S. starts up. It's the first in nearly seven years

Vogtle Unit 3 Initial Criticality marks the startup of a new U.S. nuclear reactor, initiating fission to produce heat, steam, and electricity, supporting clean energy goals, grid reliability, and carbon-free baseload power.

 

Key Points

Vogtle Unit 3 Initial Criticality is the first fission startup, launching power generation at a new U.S. reactor.

✅ First new U.S. reactor to reach criticality since 2016

✅ Generates carbon-free baseload power for the grid

✅ Faced cost overruns and delays during construction

 

For the first time in almost seven years, a new nuclear reactor has started up in the United States.

On Monday, Georgia Power announced that the Vogtle nuclear reactor Unit 3 has started a nuclear reaction inside the reactor as part of the first new reactors in decades now taking shape at the plant.

Technically, this is called “initial criticality.” It’s when the nuclear fission process starts splitting atoms and generating heat, Georgia Power said in a written announcement.

The heat generated in the nuclear reactor causes water to boil. The resulting steam spins a turbine that’s connected to a generator that creates electricity.

Vogtle’s Unit 3 reactor will be fully in service in May or June, Georgia Power said.

The last time a nuclear reactor reached the same milestone was almost seven years ago in May 2016 when the Tennessee Valley Authority started splitting atoms at the Watts Bar Unit 2 reactor in Tennessee, Scott Burnell, a spokesperson for the Nuclear Regulatory Commission, told CNBC.

“This is a truly exciting time as we prepare to bring online a new nuclear unit that will serve our state with clean and emission-free energy for the next 60 to 80 years,” Chris Womack, CEO of Georgia Power, said in a written statement. 

Including the newly turned-on Vogtle Unit 3 reactor, there are currently 93 nuclear reactors operating in the United States and, collectively, they generate 20% of the electricity in the country, although a South Carolina plant leak recently showed how outages can sideline a unit for weeks.

Nuclear reactors, which help combat global warming and support net-zero emissions goals, generate about half of the clean, carbon-free electricity generated in the U.S.

Most of the nuclear power reactors in the United States were constructed between 1970 and 1990, but construction slowed significantly after the accident at Three Mile Island near Middletown, Pennsylvania, on March 28, 1979, even as interest in next-gen nuclear power has grown in recent years. From 1979 through 1988, 67 nuclear reactor construction projects were canceled, according to the U.S. Energy Information Administration.

However, because nuclear energy is generated without releasing carbon dioxide emissions, which cause global warming, the increased sense of urgency in responding to climate change has given nuclear energy a chance at a renaissance as atomic energy heats up again globally.

The cost associated with building nuclear reactors is a major barrier to a potential resurgence in nuclear energy, however, even as nuclear generation costs have fallen to a ten-year low. And the new builds at Vogtle have become an epitome of that charge: The construction of the two Vogtle reactors has been plagued by cost overruns and delays.
 

 

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