UK IPE mulls weather, emissions, power contracts

By Reuters


NFPA 70e Training - Arc Flash

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:
$199
Coupon Price:
$149
Reserve Your Seat Today
The London-based International Petroleum Exchange is looking at launching weather derivatives and greenhouse gas emissions trading contracts as well as reviving its UK electricity futures market, chief executive Richard Ward said.

"We are in discussions with a partner about how we can develop a weather business on the IPE," Ward said.

"We are actively looking into the emissions market again and electricity's back on the agenda. We are seeing whether the market is ripe for a relaunch of the electricity contract."

The IPE, which trades Brent crude, gas oil and natural gas, suspended its electricity futures contract in March 2002 after it attracted little interest amid tough competition from over-the-counter brokers.

The exchange also faces competition from the recently merged UKPX and APX power bourses.

While these exchanges have attracted reasonable volumes in short-term trading, they have struggled to establish liquid markets in longer-term forward contracts.

The UKPX said recently that its volumes had improved after the launch last year of revamped futures contracts.

Carbon dioxide emissions trade is set to take off with the launch early next year of the European Union emissions trading scheme, the centrepiece in the bloc's efforts to meet its obligation to curb pollution under the Kyoto protocol on climate change.

Few trades have been done so far, all through brokers, but last month Austria's EXAA power exchange said it wanted to start trading carbon dioxide emission certificates. Weather derivatives trading has also been thin. London's Euronext.

Liffe financial market launched European weather derivatives contracts in late 2001 but suspended them last summer after just a single deal was done.

Related News

Louisiana power grid needs 'complete rebuild' after Hurricane Laura, restoration to take weeks

Louisiana Grid Rebuild After Hurricane Laura will overhaul transmission lines and distribution networks in Lake Charles, as Entergy restores power after catastrophic outages, replacing poles, transformers, and spans to stabilize critical electric infrastructure.

 

Key Points

Entergy's project replacing transmission and distribution in Lake Charles to restore power after the Cat 4 storm

✅ 1,000+ transmission structures and 6,637 poles damaged

✅ Entergy targets first energized line into Lake Charles in 2 weeks

✅ Full rebuild of Calcasieu and Cameron lines will take weeks

 

The main power utility for southwest Louisiana will need to "rebuild" the region's grid after Hurricane Laura blasted the region with 150 mph winds last week, top officials said.

The Category 4 hurricane made landfall last Thursday just south of Lake Charles near Cameron, damaging or destroying thousands of electric poles as well as leaving "catastrophic damages" to the transmission system for southwest Louisiana, similar to impacts seen during Typhoon Mangkhut outages in Hong Kong that left many without electricity.

“This is not a restoration," Entergy Louisiana president and CEO Phillip May said in a statement. "It’s almost a complete rebuild of our transmission and distribution system that serves Calcasieu and Cameron parishes.”

According to Entergy, all nine transmission lines that deliver power into the Lake Charles area are currently out service due to storm damage to multiple structures and spans of wire.

The transmission system is a critical component in the delivery of power to customers’ homes, and failures at substations can trigger large outages, as seen in Los Angeles station fire outage reported recently, according to the company.

Of those structures impacted, many were damaged "beyond repair" and require complete replacement.

Broken electrical poles are seen in Holly Beach, La., in the aftermath of Hurricane Laura, Saturday, Aug. 29, 2020. (AP Photo/Gerald Herbert)

Entergy said the damage in southwest Louisiana includes 1,000 transmission structures, 6,637 broken poles, 2,926 transformers and 338 miles of downed distribution wire, highlighting why proactive reliability investments in Hamilton are being pursued by other utilities.

Some 8,300 workers are now in the area working to rebuild the transmission lines, but Entergy said that it will be about two to three weeks before power is available to customers in the Lake Charles area, a timeline similar to Tennessee outages after severe storms reported recently in other states.

"Restoring power will take longer to customers in inaccessible areas of the region," the company said. "While not impacting the expected restoration of service to residential customers, initial estimates are it will take weeks to rebuild all transmission lines in Calcasieu and Cameron parishes."

Entergy Louisiana expects to energize the first of its transmission lines into Lake Charles in two weeks.

“We understand going without power for this extended period will be challenging, and this is not the news customers want to hear. But we have thousands of workers dedicated to rebuilding our grid as quickly as they safely can to return some normalcy to our customers’ lives,” May said.

According to power outage tracking website poweroutage.us, over 164,000 customers remain without service in Louisiana as of Thursday morning, while a Carolinas outage update shows hundreds of thousands affected there as well.

On Wednesday, the Edison Electric Institute, the association of investor-owned electric companies in the U.S., said in a statement to FOX Business that electricity has been restored to approximately 737,000 customers, or 75% of those impacted by the storm across Louisiana, eastern Texas, Mississippi, and Arkansas, even as utilities adapt to climate change to improve resilience.

At least 29,000 workers from 29 states, the District of Columbia and Canada are working to restore power in the region, according to the Electricity Subsector Coordinating Council (ESCC), which is coordinating efforts from government and power industry.

“The transmission loss in Louisiana is significant, with more than 1,000 transmission structures damaged or destroyed by the storm," Department of Energy (DOE) Deputy Secretary Mark Menezes said in a statement. Rebuilding the transmission system is essential to the overall restoration effort and will take weeks given the massive scale and complexity of the work. We will continue to coordinate closely to ensure the full capabilities of the industry and government are marshaled to rebuild this critical infrastructure as quickly as possible.” 

At least 17 deaths in Louisiana have been attributed to the storm; more than half of those killed by carbon monoxide poisoning from the unsafe operation of generators, and residents are urged to follow generator safety tips to reduce these risks. Two additional deaths were verified on Wednesday in Beauregard Parish, which health officials said were due to heat-related illness following the storm.

 

Related News

View more

Solar changing shape of electricity prices in Northern Europe

EU Solar Impact on Electricity Prices highlights how rising solar PV penetration drives negative pricing, shifts peak hours, pressures wholesale markets, and challenges grid balancing, interconnection, and flexibility amid changing demand and renewables growth.

 

Key Points

Explains how rising solar PV cuts wholesale prices, shifts negative-price hours, and strains grid flexibility.

✅ Negative pricing events surge with higher solar penetration.

✅ Afternoon price dips replace night-time wind-led lows.

✅ Grid balancing, interconnectors, and flexibility become critical.

 

The latest EU electricity market report has confirmed the affect deeper penetration of solar is having on wholesale electricity prices more broadly.

The Quarterly Report on European Electricity Markets for the final three months of last year noted the number of periods of negative electricity pricing doubled from 2019, to almost 1,600 such events, as global renewables set new records in deployment across markets.

Having experienced just three negative price events in 2019, the Netherlands recorded almost 100 last year “amid a dramatic increase in solar PV capacity,” in the nation, according to the report.

Whilst stressing the exceptional nature of the Covid-19 pandemic on power consumption patterns, the quarterly update also noted a shift in the hours during which negative electric pricing occurred in renewables poster child Germany. Previously such events were most common at night, during periods of high wind speed and low demand, but 2020 saw a switch to afternoon negative pricing. “Thus,” stated the report, “solar PV became the main driver behind prices falling into negative territory in the German market in 2020, as Germany's solar boost accelerated, and also put afternoon prices under pressure generally.”

The report also highlighted two instances of scarce electricity–in mid September and on December 9–as evidence of the problems associated with accommodating a rising proportion of intermittent clean energy capacity into the grid, and called for more joined-up cross-border power networks, amid pushback from Russian oil and gas across the continent.

Rising solar generation–along with higher gas output, year on year–also helped the Netherlands generate a net surplus of electricity last year, after being a net importer “for many years.” The EU report also noted a beneficial effect of rising solar generation capacity on Hungary‘s national electricity account, and cited a solar “boom” in that country and Poland, mirroring rapid solar PV growth in China in recent years.

With Covid-19 falls in demand helping renewables generate more of Europe's electricity (39%) than fossil fuels (36%) for the first time, as renewables surpassed fossil fuels across Europe, the market report observed the 5% of the bloc's power produced from solar closed in on the 6% accounted for by hard coal. In the final three months of the year, European solar output rose 12%, year on year, to 18 TWh and “the increase was almost single-handedly driven by Spain,” the study added.

With coal and lignite-fired power plunging 22% last year across the bloc, it is estimated the European power sector reduced its carbon footprint 14% as part of Europe's green surge although the quarterly report warned cold weather, lower wind speeds and rising gas prices in the opening months of this year are likely to see carbon emissions rebound.

There was good news on the transport front, though, with the report stating the scale of the European “electrically-charged vehicle” fleet doubled in 2020, to 2 million, with almost half a million of the new registrations arriving in the final months of the year. That meant cars with plug sockets accounted for a remarkable 17% of new purchases in Q4, twice the proportion seen in China and a slice of the pie six times bigger than such products claimed in the U.S.

 

Related News

View more

Nova Scotia Power says it now generates 30 per cent of its power from renewables

Nova Scotia Power Renewable Energy delivers 30% in 2018, led by wind power, hydroelectric and biomass, with coal and natural gas declining, as Muskrat Falls imports from Labrador target 40% renewables to cut emissions.

 

Key Points

It is the utility's 30% 2018 renewable mix and plan to reach 40% via Muskrat Falls while reducing carbon emissions.

✅ 18% wind, 9% hydro and tidal, 3% biomass in 2018

✅ Coal reliance fell from 76% in 2007 to 52% in 2018

✅ 58% carbon emissions cut from 2005 levels projected by 2030

 

Nova Scotia's private utility says it has hit a new milestone in its delivery of electricity from renewable resources, a trend highlighted by Summerside wind generation in nearby P.E.I.

Nova Scotia Power says 30 per cent of the electricity it produced in 2018 came from renewable sources such as wind power.

The utility says 18 per cent came from wind turbines, nine per cent from hydroelectric and tidal turbines and three per cent by burning biomass.

However, over half of the province's electrical generation still comes from the burning of coal or petroleum coke. Another 13 per cent come from burning natural gas and five per cent from imports, even as U.S. renewable generation hits record shares.

The utility says that since 2007, the province's reliance on coal-fired plants has dropped from 76 per cent of electricity generated to 52 per cent last year, as Prairie renewables growth accelerates nationally.

It says it expects to meet the province's legislated renewable target of 40 per cent in 2020, when it begins accessing hydroelectricity from the Muskrat Falls project in Labrador.

"We have made greener, cleaner energy a priority," utility president and CEO Karen Hutt said in a news release.

"As we continue to achieve new records in renewable electricity, we remain focused on ensuring electricity prices stay predictable and affordable for our customers, including solar customers across the province."

Nova Scotia Power also projects achieving a 58 per cent reduction in carbon emissions from 2005 levels by 2030.

 

Related News

View more

DOE Announces $34 Million to Improve America?s Power Grid

DOE GOPHURRS Grid Undergrounding accelerates ARPA-E innovations to modernize the power grid, boosting reliability, resilience, and security via underground power lines, AI-driven surveying, robotic tunneling, and safer cable splicing for clean energy transmission and distribution.

 

Key Points

A DOE-ARPA-E program funding undergrounding tech to modernize the grid and improve reliability and security.

✅ $34M for 12 ARPA-E projects across 11 states

✅ Underground power lines to boost reliability and resilience

✅ Robotics, AI, and safer splicing to cut costs and risks

 

The U.S. Department of Energy (DOE) has earmarked $34 million for 12 innovative projects across 11 states to bolster and modernize the nation’s power grid, complementing efforts like a Washington state infrastructure grant announced to strengthen resilience.

Under the Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security (GOPHURRS) program, this funding is focused on developing efficient and secure undergrounding technologies. The initiative is aligned with President Biden’s vision to strengthen America's energy infrastructure and advance smarter electricity infrastructure priorities, thereby creating jobs, enhancing energy and national security, and advancing towards a 100% clean electricity grid by 2035.

U.S. Secretary of Energy Jennifer M. Granholm emphasized the criticality of modernizing the power grid to facilitate a future powered by clean energy, including efforts to integrate more solar into the grid nationwide, thus reducing energy costs and bolstering national security. This development, she noted, is pivotal in bringing the grid into the 21st Century.

The U.S. electric power distribution system, comprising over 5.5 million line miles and over 180 million power poles, is increasingly vulnerable to weather-related damage, contributing to a majority of annual power outages. Extreme weather events, intensified by climate change impacts across the nation, exacerbate the frequency and severity of these outages. Undergrounding power lines is an effective measure to enhance system reliability for transmission and distribution grids.

Managed by DOE’s Advanced Research Projects Agency-Energy (ARPA-E), the newly announced projects include contributions from small and large businesses, national labs, and universities. These initiatives are geared towards developing technologies that will lower costs, expedite undergrounding operations, and enhance safety. Notable projects involve innovations like Arizona State University’s water-jet construction tool for deploying electrical cables underground, GE Vernova Advanced Research’s robotic worm tunnelling construction tool, and Melni Technologies’ redesigned medium-voltage power cable splice kits.

Other significant projects include Oceanit’s subsurface sensor system for avoiding utility damage during undergrounding and Pacific Northwest National Laboratory’s AI system for processing geophysical survey data. Prysmian Cables and Systems USA’s project focuses on a hands-free power cable splicing machine to improve network reliability and workforce safety, complementing state efforts like California's $500 million grid investment to upgrade infrastructure.

Complete descriptions of these projects can be found on the ARPA-E website, while a recent grid report card highlights challenges these efforts aim to address.

ARPA-E’s mission is to advance clean energy technologies with high potential and impact, playing a strategic role in America’s energy security, including military preparedness for grid cyberattacks as a priority. This commitment ensures the U.S. remains a global leader in developing and deploying advanced clean energy technologies.

 

Related News

View more

Electricity prices may go up by 15 per cent

Jersey Electricity Standby Charge proposes a grid-backup fee for commercial self-generators of renewable energy, with a review delaying implementation; potential tariff impacts include 10-15 percent price rises, cost recovery, and network reliability.

 

Key Points

A grid-backup fee for Jersey self-generating businesses to share network costs fairly and curb electricity price rises.

✅ Applies to commercial self-generation using renewables or not

✅ Excludes full exporters and pre-charge installations

✅ Aims to recover grid costs and avoid 10-15% price rises

 

Electricity prices could rise by ten to 15 per cent if a standby charge for some commercial customers is not implemented, the chief executive of Jersey Electricity has warned.

Jersey Electricity has proposed extending a monthly fee to commercial customers who generate their own power through renewable means but still wish to be connected to Jersey’s grid as a back-up, echoing Ontario energy storage efforts to shore up reliability.

The States recently unanimously backed a proposal lodged by Deputy Carolyn Labey to delay administering the levy until a review could be carried out, as seen in the UK grid's net-zero transformation debates influencing policy. The charge, was due to be implemented next month but will now not be introduced until May, or later if the review has not concluded.

But Chris Ambler, JE chief executive, warned that failing to implement the standby charge could lead to additional costs for customers.

Some of JE’s commercial customers have already been charged a standby fee after generating their own power through non-renewable means.

The charge does not apply to businesses which export all of their electricity back into the system as part of a buy-back scheme or those which install self-generation facilities before the charge is implemented.

Deputy Labey argued that the Island had done ‘absolutely nothing’ to support the use of renewable energies and instead were discouraging locally generated power by allowing JE to set a standby charge.

She added that she was pleased that the Council of Ministers had already starting reviewing the charges but the debate needed to go ahead to ensure the work continued after the May election.

During a States debate last month, she said: ‘It is increasingly concerning that we, as an island in the 21st century, are happy for our electricity to be provided to us by an unregulated, publicly listed for-profit company with a monopoly on energy.

‘I also think that introducing a charge on renewables at a time when the world is experiencing a revolution in renewable energies, including offshore vessel charging solutions, which are becoming increasingly economic, is something that needs to be investigated.

‘Jersey should be looking to diversify our electricity production and supply, to help protect us from price and currency fluctuations and to ensure that we, as an island, receive the best deal possible for Islanders.’

Mr Ambler said that any price increase would be dependent on the future take-up and use of renewable-energy technology in Jersey.

He said: ‘The cost impact would not be significant in the short term but in the long term it could be significant. I think that we are obliged to let our customers know that.

‘It is very difficult to assess but if we are not able to levy a fair charge, then, as electricity shortages in Canada have shown, we could see prices rise by ten to 15 per cent over time.’

Mr Ambler added that his company was in favour of the use of renewable energy, with a third of the company’s electricity being generated by hydroelectric sources, but that the costs of implementing it needed to be fairly distributed, given how big battery rule changes can affect project viability elsewhere in the market.

And he said that, while it was difficult to quantify how much could be lost if the standby charge was not implemented, it could cost the company over £10 million.

‘In 2014, we only increased our prices by one per cent,’ he said. ‘We are reviewing our prices at the moment but if we did put an increase in place it would be modest and it would not be linked to the standby charge.’

 

Related News

View more

Bruce Power awards $914 million in manufacturing contracts

Bruce Power Major Component Replacement secures Ontario-made nuclear components via $914M contracts, supporting refurbishment, clean energy, low-cost electricity, and advanced manufacturing, extending reactor life to 2064 while boosting jobs, supply chain growth, and economy.

 

Key Points

A refurbishment program investing $914M in advanced manufacturing to extend reactors and deliver low-cost, clean power.

✅ $914M Ontario-made components for steam generators, tubes, fittings

✅ Extends reactor life to 2064; clean, low-cost electricity for Ontario

✅ Supports 22,000 jobs annually; boosts supply chain and economy

 

Today, Bruce Power signed $914 million in advanced manufacturing contracts for its Major Component Replacement, which gets underway in 2020, as the reactor refurbishment begins across the site and will allow the site to provide low-cost, carbon-free electricity to Ontario through 2064.

The Major Component Replacement (MCR) Project agreements include:

  • $642 million to BWXT Canada Inc. for the manufacturing of 32 steam generators to be produced at BWXT’s Cambridge facility.
  • $144 million to Laker Energy Products for end fittings, liners and flow elements, which will be manufactured at its Oakville location.
  • $62 million to Cameco Fuel Manufacturing, in Cobourg, for calandria tubes and annulus spacers for all six MCRs.
  • $66 million for Nu-Tech Precision Metals, in Arnprior, for the production of zirconium alloy pressure tubes for Units 6 and 3.

 

Bruce Power’s Life-Extension Program, which started in January 2016 with Asset Management Program investments and includes the MCRs on Units 3-8, remains on time and on budget.”

#google#

By signing these contracts today, we have secured ‘Made in Ontario‘ solutions for the components we will need to successfully complete our MCR Projects, extending the life of our site to 2064,” said Mike Rencheck, Bruce Power’s President and CEO.

“Today’s announcements represent a $914 million investment in Ontario’s highly skilled workforce, which will create untold economic opportunities for the communities in which they operate for many years to come.”We look forward to growing our already excellent relationships with these supplier partners and unions as we work toward our common goal, supported by an operating record, of continuing to keep Canada’s largest infrastructure project on time and on budget."

By extending the life of Bruce Power’s reactors to 2064, the company will create and sustain 22,000 jobs annually, both directly and indirectly, across Ontario, while investing $4 billion a year into the province’s economy, underscoring the economic benefits of nuclear development across Canada.

At the same time, Bruce Power will produce 30 per cent of Ontario’s electricity at 30 per cent less than the average cost to generate residential power, while also producing zero carbon emissions, aligning with Pickering NGS life extensions across the province.The Hon. Glenn Thibeault, Minister of Energy, said today’s announcement is good news for the people of Ontario.”

Bruce Power’s Life-Extension Program makes sense for Ontario, and the announcements made today will create good jobs and benefit our economy for decades to come,” Minister Thibeault said.

“Moving forward with the refurbishment project is part of our government’s plan to support care and opportunity, while producing affordable, reliable and clean energy for the people of Ontario.”Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and MP for Northumberland-Peterborough South, offered her support and congratulations.”

Related planning includes Bruce C project exploration funding that supports long-term nuclear options in Ontario.

Canada’s nuclear industry, including its advanced manufacturing capability, is respected internationally,” Rudd said. “Bruce Power’s announcement today related to the advanced manufacturing of key components throughout Ontario as part of its Life-Extension Program will allow these suppliers to have a secure base to not only meet Canada’s needs, but export internationally.”

 

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

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.