Montel

Italy's gas consumption in July dropped by 4.3% year-on-year to 44.2 TWh, marking its lowest level for this month in eight years, according to GME. Despite this, July's consumption was 20% higher than June's decade-low 36.2 TWh.   Gas-fired generation decreased by 4% to 23 TWh, while industrial demand rose 3% to 10.5 TWh. Household and business consumption increased by 2% to 9.6 TWh.   Gas imports fell 3% to 53.5 TWh, with Algerian supplies down 13%. However, imports from Azerbaijan and Russia surged by 12% and +579%, respectively. LNG regasification also saw declines, with significant drops at the Cavarzere and Panigaglia terminals.   Italy's gas exports plunged 62% in June, and domestic production fell 11%. Gas storage levels reached just over 89% of capacity, above the EU average.   The link to the full article by Alfredo Spalla can be found in the comments section. #energymarkets #Italy #gasmarkets #LNG #gasprices

Montel Weekly podcast – Curbs to French power exports   Cuts to French electricity exports began earlier this year and will continue into the autumn. Listen to a discussion on why grid operator RTE impose the export limits and the reaction from inside France and the wider market? The TSO said the cuts are likely to continue into the autumn amid ample supply from renewables and nuclear and dwindling demand, but is the issue more structural? Link to the podcast in comments section.   Host: Snjólfur Richard Sverrisson, Editor-in-Chief, Montel Guests: Frank Boerman, TenneT; Clément Bouilloux, Montel Analytics; Muriel Boselli, Montel News. #energymarkets #France #nuclear #renewables #energyprices

Gas price jump to 2024 highs on Ukraine transit jitters. European gas prices surged to their highest levels since early December due to intense fighting near a key transit pipeline between Ukraine and Russia. The Dutch TTF front-month contract peaked at EUR 39.46/MWh, later falling back to EUR 38.64/MWh, while the UK NBP contract reached 97p/th, but eased again to 94.90p/th.   Russian President Vladimir Putin accused Ukraine of provocation after Ukrainian troops entered the Kursk region. Concerns over potential pipeline damage heightened market anxiety. Despite this, Ukrainian gas flows remained unaffected, with nominations slightly down but within the normal range.   LNG supply to northwest Europe has also declined, reaching potentially multi-month lows. However, overall gas supply in Europe remains ample, supported by strong pipeline flows and high storage levels at over 86% capacity. Norwegian nominations rose slightly, contributing to a stable market outlook.   The full article by Laurence Walker can be found in the comments section. #energysector #gasprices #LNG #Europe #energyprices #Ukraine

An investigation into South Africa's “ghost trains” – operating without the permission of state-owned rail operator Transnet – has exceeded a year, with regional sources now suggesting the number of incidences may be on the decline thanks in part to falling coal export prices and improved management of the rail system Full story in the comments below... #coal #energy #southafrica #freight

Epex fears fraud in Norway power market on “outdated” VAT rules. Norway's physical power market is highly susceptible to fraud because of outdated VAT regulations, an Epex official told Montel. Unlike the harmonised VAT systems in the EU, UK, and Switzerland, Norway's framework is impractical, according to Ina Schjelderup, head of Nordic public and regulatory affairs at Epex. Epex, in a letter to the finance ministry, requested a meeting to discuss these concerns. Signed by Epex CEO Ralph Danielski and ECC head Tobias Paulun, the letter highlighted the risk of carousel or missing trader fraud in Norway's power trading market. Epex advocates for a reverse charge mechanism where the customer pays VAT directly. Norway is the only EEA country yet to adopt this rule, making it particularly vulnerable. Montel has reached out to the Norwegian Ministry of Finance for a comment but has not received a response yet. Link to full article by Petter Marius Udland can be found in the comments section. #energymarkets #norway #regulation #energyprices #montelnews

We're less than a month away from the Nordic Energy Day 2024! Join industry leaders on August 29 in Oslo for a day of insightful discussions on market trends, energy security, and more, followed by a networking dinner cruise. Don't miss this key event in the Nordic power market! Register now to secure your spot: https://lnkd.in/erM_dRKC #NED2024 #energymarkets #energysector #marketinsights #norway

Italy offers heavily discounted power to energy-intensive firms. Italy is set to auction 20 TWh of power to energy-intensive industries at EUR 60/MWh, roughly half the current wholesale rate, to curb rising energy costs. This initiative, covering about 7% of the country's power demand, will span three years, though a start date is yet to be announced. Launched by Energy Minister Gilberto Pichetto Fratin, the scheme aims to support the transition towards renewable energy. Companies benefiting from the discount must commit to building or upgrading renewable units and sell back the same amount of electricity at the original discounted price over 20 years. Currently, Italy's baseload power prices stand at around EUR 125/MWh, among the highest in Europe. Reporting by Alina Trabattoni. To read the full article, click the link in the comments section. #Italy #renewableenergy #energysector #energyprices #montelnews

EDF's annual nuclear output is set to hit 315-345 TWh, with nuclear production rising by 19.4 TWh to 177.4 TWh in the first half, thanks to fewer outages and better control. Hydropower and renewables also saw growth, with output at 31.1 TWh and a 13.1% increase in wind and solar. EDF is planning six new reactors by 2050 and EDF aims to start its Flamanville EPR Project "this summer" after lengthy delays and huge cost overruns.  In her recent report, my colleague Caroline Pailliez noted EDF CEO Luc Rémont's latest comments: “We are in the final stages for the first nuclear reaction at Flamanville, which is imminent. I won’t specify exactly what 'imminent' means because our teams are working tirelessly on it.” What does the return of nuclear output mean for Europe's power market and can EDF deliver on its ambitious plans to build new reactors? To read the full reporting, click the link in the comments section. #energymarkets #Frenchnuclear #EDF #solargeneration #renewables

The European spot power markets narrowly avoided full decoupling following an incident involving the Czech Republic. The Joint Allocation Office (JAO) confirmed the issue's resolution, announcing that final market results were published despite delays. The disruption, caused by an unspecified technical issue in the Czech market, led to over an hour's delay in auction results for Thursday's power delivery. This incident highlights the importance of robust systems to maintain market stability. Follow us for more energy market insights and updates. Reporting by Marcin Czekanski. Click the link in the comments section to follow Montel News for the latest breaking news in the European Energy Sector. #EnergyMarkets #PowerTrading #EuropeanMarkets #MarketStability

Bid zone split won’t solve German grid congestion – analyst Germany’s power market is facing grid congestion issues, particularly in transporting wind-generated power from the north to the industrial south. The EU regulatory agency Acer has suggested splitting the market into up to four bidding zones. However, Tobias Federico, managing director at Montel Analytics, argued that splitting the market wouldn't address the core issue of grid bottlenecks. He emphasized that investment in grid expansion is crucial, as price zone divisions alone do not incentivize necessary infrastructure or appropriate power generation location investments. While some economists believe that separate zones could reflect market realities better and enhance flexibility, industry groups like VIK, BDEW, VKU, and Efet support maintaining a single price zone for long-term price transparency and investment stability. They argue that smaller zones could lead to more volatile prices and reduced investment in grid and renewable energy. Reporting by Julia Demirdag. For more details, the full article link can be found in the comments section. #energymarkets #germany #windgeneration #energyprices #renewableenergy