(LONDON) ONS REPORT: Soaring food costs and the energy bill crisis are driving up prices at their fastest rate in almost 30 years, squeezing living standards #AceNewsDesk report

#AceNewsReport – Jan.20: The last time inflation was higher was in March 1992, when it was 7.1%…………And with gas and electricity costs set to increase further soon, analysts warned it could reach that level again: Households have seen their energy bills kept in check by the government’s price cap, which limits the amount suppliers can charge, but this is set to be revised on 1 April: As a result, fuel bills could increase by another 50% in the next few months, the energy industry has warned.

#AceDailyNews says the latest rise was announced by the Office for National Statistics, which said increases in prices of furniture, food and clothing also contributed to December’s rise in the cost of living.

A person shops in a supermarket

BBC Business News Report: Inflation surged to 5.4% in the 12 months to December, up from 5.1% the month before, to families budgets: By Robert Plummer
Business reporter, BBC News

‘Alarming rise in food banks’

At the same time, there are signs that the high cost of food is proving too much for many people.

Richard Walker, boss of supermarket chain Iceland, said he was seeing an “alarming” rise in the use of food banks.

“There may be some people facing a choice between heating or eating. We’re losing customers to hunger,” he said.

He added that his stores served some of the UK’s most deprived communities. 

“Some of our customers only have £25 a week to spend on food, so they’re already struggling to make ends meet,” he said.

“When you have real wages falling, Universal Credit top-up withdrawal, food inflation, tax rises, that obviously will hit hard.”

Chancellor Rishi Sunak said he understood the pressures people were facing, but the opposition Labour party said working families faced an impending “triple whammy” of financial pressures.

The latest figures will increase pressure on the government, already under fire over tax rises set to take effect in April.

They will also fuel calls for the Bank of England to raise interest rates in a bid to dampen consumer spending and bring inflation closer to its 2% target.

What is inflation?

Inflation is the rate at which prices are rising. If the price of a bottle of milk is £1 and it rises by 5p, then milk inflation is 5%.

You may not notice price rises from month to month. But right now, prices are rising so quickly that the money people earn does not go as far.

Separate official figures issued on Tuesday showed that average pay rises are failing to keep up with the rise in the cost of living.

Regular pay, excluding bonuses and adjusted for inflation, fell 1% in November compared with the same month in the previous year.

Paul Johnson, director at the Institute for Fiscal Studies think tank, said people on low incomes would be particularly hard hit by the squeeze on living standards.

“Everyone, particularly those on modest incomes, has had a long period of wages not really growing any faster than prices over the last decade, so another increase at this point is going to be particularly painful,” he told the BBC.

Stress for young people

Inflation at this level is a new phenomenon for many young people, who were not even born when prices were last rising this fast.

One worker, 24-year-old Alfie Kearns from Liverpool, told the BBC he believed inflation was making it harder to save money so that he can move out of his family home.

“Energy bills and gas and everything has been going up,” he said. “A big thing for me right now is I want to move out, I want my own home and that’s the next step for me and it’s just impossible in the current climate.”

However, there is little sign of a respite for him and others like him, say analysts.

Paul Dales of Capital Economics said inflation was now expected to hit 7% by April.

“That would be higher than the peak of 6% that the Bank of England was forecasting when it raised rates in December,” he added. 

“And although inflation will fall back thereafter, we think it will stay above 4% for all of this year and won’t drop to the 2% target until April 2023.”

As a result, he said, the Bank of England’s rate-setting Monetary Policy Committee was likely to raise interest rates faster than most people expected, with the next increase to 0.5% expected in February.

Already-high prices for gas, electricity, food and used cars are set to climb further in the coming months, said BBC economics editor Faisal Islam.

Meanwhile, the Retail Price Index, an inflation measure which is still widely used by government and some businesses, including for wage bargaining, is already at 7.5%. 

The concern is not only that the predicted peak of inflation is getting higher, but that it will prove “stickier” than expected, he added.

Businesses squeezed

Kate Greig helps run the Kent Food Hub in Ashford

Businesses, who face soaring wholesale prices, now face the dilemma of whether to pass on those costs to squeezed consumers.

One businesswoman, Kate Greig, helps run Kent Food Hubs, a co-operative that helps traders and producers in the county to sell direct to customers.

She said her suppliers are seeing increases in their material costs, as well as things such as energy bills.

“Food is more expensive, fuel is more expensive,” she told the BBC. “For my traders, raw materials are more expensive, whether that’s the lentils to make a meal or the cardboard they use to package it.”

Political pressure

Commenting on the crisis, Chancellor Rishi Sunak said: “I understand the pressures people are facing with the cost of living, and we will continue to listen to people’s concerns as we have done throughout the pandemic.”

He said the government was providing support worth about £12bn this financial year and next to help families cope.

Shadow Treasury secretary Pat McFadden said: “These figures show that the cost-of-living crisis is only going to get worse in the coming months.

“Working families are already feeling the crunch. But the triple whammy of an imminent rise in the energy price cap, real wages falling and Tory tax rises coming down the tracks are going to make this crisis even worse.”

#AceNewsDesk report …………..Published: Jan.20: 2022:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#costs, #energy, #food, #london, #ons, #prices

(LONDON) Energy Price Report: Twenty Conservative MPs and peers have called on the prime minister to tackle the spiralling cost of living #AceNewsDesk report

#AceNewsReport – Jan.03: The government says it is meeting suppliers and the regulator regularly to work out how to help consumers.

#AceDailyNews says according to BBC Business News Report: Five ex-ministers are among those who have written to the Sunday Telegraph arguing for a cut in environmental levies and the removal of energy taxes: Their call follows big increases in wholesale gas prices. Experts say average bills could hit £2,000 in 2022.

A stock photo of a man looking worriedly at his energy bills
https://www.express.co.uk/finance/personalfinance/1540083/energy-prices-crisis-bills-evg

By Rob Corp Published: Jan.02: 2021: BBC News

Health minister Edward Argar told Times Radio there were a range of measures to help those who “feel the squeeze with particular house bills”, adding that the economy was “bouncing back”.

The letter to the Telegraph has been organised by the Net Zero Scrutiny Group of Conservatives, which keeps an eye on the potential consequences of the government’s environmental commitments. 

The group’s chairman Craig Mackinlay is one of the letter’s signatories, along with former Work and Pensions Secretary Esther McVey and senior MPs Robert Halfon and Steve Baker.

“We hardly need to point out that high energy prices, whether for domestic heating or for domestic transport, are felt most painfully by the lowest paid,” the letter states.

It argues that by scrapping the 5% VAT rate on energy bills and suspending environmental levies which fund renewable energy schemes, the average household could save £200 on their energy bill.

Mr Halfon said he had “huge worries” about the rising energy costs for people across the country.

“I strongly believe that given that the price cap is going to go this year in the spring that the government should look at other measures and one of those could be… to suspect the green levies which are actually 25% of everybody’s energy bill,” he said.

He added that he was not saying to “get rid of them forever” but to suspend them at a time when people could really struggle.

Labour has also called for the lifting of VAT on fuel bills for the winter to help households, while Ovo Energy firm boss Stephen Fitzpatrick last week suggested that some “environmental social policy costs” should be removed by the government.

Other suppliers including Good Energy, EDF and trade body Energy UK have called for government intervention, after the cost of gas in wholesale markets rose by more than 500% in less than a year.

More than 20 energy suppliers have gone out of business since the start of September, with their customers shifted to new providers.

But many will find themselves on a different – and potentially more expensive – tariff than their previous energy deal.

Last week the Resolution Foundation think tank warned that millions of UK families face a “year of squeeze” in 2022 thanks to rising energy bills, stagnant wages and tax rises.

It says that an increase in National Insurance contributions from April, along with an expected rise in energy bills in the same month could amount to a £1,200 hit to household finances.

And the foundation warned that poorer families will bear the brunt of these rises as they spend a greater proportion of their income on electricity and gas.

The government says it has taken steps to help, including reducing the Universal Credit taper, providing cold weather payments and freezing alcohol and fuel duty.

#AceNewsDesk report …………Published: Jan.03: 2022:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#energy, #london, #prices

(BERLIN) LATEST: Nuclear Energy Crisis Report: Germany shut down three nuclear power plants on Friday, in a move to halve the country’s remaining nuclear capacity. The measure comes despite the worst ever energy crises the European region has experienced #AceNewsDesk report

#AceNewsReport – Jan.02: The closures, which come as a result of decision to completely phase out atomic energy, taken by Angela Merkel after the Fukushima nuclear disaster in 2011, is expected to tighten the current squeeze on gas and energy prices.

#AceDailyNews says according to RT Business News Germany shuts half of its nuclear plants amid energy crisis as Russia said not delivering enough gas to Europe is ‘a pack of lies’ according to Gazprom and Merkel’s decision to phase out atomic energy ….

Berlin is planning to completely wind down atomic energy by the end of 2022, when its final three plants in Neckarwestheim, Essenbach and Emsland shut.

German state officials can’t prevent the shutdown of nuclear power plants, since they are in somewhat of a bind when it comes to the “green economy,” according to Alexey Mukhin, director of the Center for Political Information.

“Angela Merkel’s decision to shut down nuclear reactors after the disaster at Fukushima has been denounced as bureaucratic,” the analyst said.

“The federal government should have taken very serious efforts to prevent the next scheduled shutdown, but, apparently, they are not allowed to do this by the so-called new rules of the green economy.”

With energy prices across the continent soaring to the unseen levels, the timing of the German plan’s coming to fruition could hardly be worse. In December, Dutch TTF reached €187.78 per megawatt hour, which is 10 times higher than at the start of the year, while electricity prices are soaring as well.

According to Mukhin, the country’s authorities fell into a trap that had been set by Berlin.The expert expressed bewilderment over the dogged attempts by the EU at pushing green energy policies forward amid the worst energy crunch that is most markedly straining the wallet of the European citizens.

“The energy crisis should correct the global economy and ‘green’ policy, but this does not happen, due to the stubbornness, pride and prejudice, even the snobbery and tenacity, of European partners,” Mukhin said.

#AceNewsDesk report ……….Published: Jan.02: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#russia, #berlin, #energy, #gazprom, #germany, #nuclear

(LONDON) Energy Crisis Report: UK households will be paying much higher energy bills, which will rise not only because of high power & gas prices but also because of the collapse of Bulb, the biggest victim of the energy crisis so far, according to OFGEM cited by Bloomberg #AceNewsDesk report

#AceNewsReport – Dec.05: This was after Bulb, a power and gas supplier serving 1.7 million customers, said at the end of November that it would enter into special administration.

#AceDailyNews Energy Latest Report: UK Grim Prospects Over Surging Energy Bills Just Got Worse according to the UK’s energy regulator Ofgem, cited by Bloomberg the energy crisis and soaring wholesale power and natural gas prices claimed its biggest victim …..

SEE VIDEO BELOW:

The collapse of Bulb, and more than 20 other energy providers in the UK since the summer, will cost a UK household between $106 (80 pounds) and $113 (85 pounds) on top of their energy bills next year and in 2023, according to the regulator’s initial assessment of the cost of the crisis.

This crisis is not over yet, with winter coming and threatening to put more suppliers out of business.

Two dozen power and gas suppliers in the UK have already exited the retail energy market, and more are likely to do so. Another 20 energy providers in the UK could go bust in what looks like a “massacre” in the coming months unless the government reviews the energy price cap, Keith Anderson, chief executive at one of the largest providers, ScottishPower, said last month.

High energy prices drove inflation in the UK to a 10-year high in October. The Consumer Prices Index (CPI) rose by 4.2 percent in the 12 months to October 2021, up from 3.1 percent in September, the Office for National Statistics said. Energy is expected to fuel additional price hikes next year when the energy regulator is set to raise the so-called price cap on energy bills.  

Nearly half of Britons worry more about their soaring energy bills than the COVID pandemic and a potential new wave in the UK, a poll for MailOnline showed last month. As colder temperatures in the winter approach, a total of 49 percent of Brits polled said they were more concerned about high gas and electricity bills than COVID, according to the survey by Redfield and Wilton Strategies for MailOnline.  

By Charles Kennedy for Oilprice.com

#AceNewsDesk report ……….Published: Dec.05: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#electricity, #energy, #gas, #london, #oil, #uk, #youtube

(WORLDWIDE) IMF REPORT: Clean energy needs may cause years of high prices for copper, nickel, cobalt, and lithium under a net-zero emissions scenario #AceNewsDesk report

#AceNewsReport – Nov.14: The world’s historic pivot toward curbing carbon emissions is likely to spur unprecedented demand for some of the most crucial metals used to generate and store renewable energy in a net-zero emissions by 2050 scenario.

#AceDailyNews says according to a post in IMF Blog …..Soaring Metal Prices May Delay Energy Transition with unprecedented demand for some crucial metals to store renewable energy …..

2021-11-11T16:01:43-05:00(Photo: Petmal/iStock by Getty Images)

By Lukas BoerAndrea Pescatori Martin Stuermer and Nico Valckx

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Prices could reach historical peaks for an unprecedented length of time—and even delay the energy transition itself.

A resulting surge in prices for materials such as cobalt and nickel would bring boom times to some economies that are the biggest exporters—but soaring costs could last through the end of this decade and could derail or delay the energy transition itself.

Prices for industrial metals, an important foundation for the global economy, have already seen a major post-pandemic rally as economies re-opened, as we recently wrote. Our latest research, included in the October World Economic Outlook and a new IMF staff paper, details the likely effects of the energy transition for metals markets and the economic impact for producers and importers.

For example, lithium, used in batteries for electric vehicles, could rise from its 2020 level around $6,000 a metric ton to about $15,000 late this decade—and stay elevated through most of the 2030s. Cobalt and nickel prices would also see similar surges in coming years.

Net-zero scenario

We look specifically at the goal of limiting global temperature increases to 1.5 degrees Celsius, which requires a transformation of the energy system that could substantially raise metals demand as low-emission technologies—including renewable energy, electric vehicles, hydrogen, and carbon capture—require more metals than fossil-fuel counterparts.

Our focus is on four important metals among the variety being used for the transition. They are copper and nickel, major established metals that have traded on exchanges for decades, and minor-but-rising lithium and cobalt, which have traded on exchanges only recently but are gaining popularity because they are important for the energy transition.

The fast pace of change needed to meet climate goals, such as the International Energy Agency’s (IEA) Net Zero by 2050 Roadmap, implies soaring metals demand in the next decade. Under the roadmap’s ambitious scenario, lithium and cobalt consumption jumps more than sixfold to satisfy needs for batteries and other clean energy uses. Copper use would double and nickel’s would quadruple, though this includes meeting needs unrelated to clean energy.

Metal prices

While metals demand could soar, supply typically reacts slowly to pricing signals, partly depending on production. Copper, nickel, and cobalt come from mines, which require intensive investment and take on average more than a decade from discovery to production according to the IEA. In contrast, lithium often is extracted from mineral springs and brine via salty water pumped from below ground. That shortens lead times for new production to average roughly five years. Supply trends also are influenced by extraction technology innovation, market concentration, and environmental regulations. The combination of soaring demand and slower supply changes can spur prices to climb. In fact, if mining had to satisfy consumption under the IEA’s net-zero scenario, our recent analysis shows prices could reach historical peaks for an unprecedented length of time—and those higher costs could even delay the energy transition itself.

Specifically, cobalt, lithium, and nickel prices would rise several hundred percent from 2020 levels and peak around 2030. However, copper is less of a bottleneck as its demand increases are not as steep. We estimate prices would peak as in 2011, though be elevated for longer.

The demand surge under a net-zero scenario is frontloaded because renewable energy components such as wind turbines or batteries need metals upfront. On the supply side, however, production is slow to react due to the long lead times for opening mines, and only eventually eases market tightness after 2030.

Macro-relevancy

Under a net-zero emissions scenario, booming demand for the four energy transition metals alone would boost their production value sixfold to $12.9 trillion over two decades. This could rival the roughly estimated value of oil production in a net-zero scenario over that period. The four metals could affect the economy via inflation, trade and output, and provide significant windfalls to commodity producers.

The concentrated supply of metals implies some top producers may benefit. Usually, countries with the largest output have the greatest reserves, and likely would be major prospective producers. The Democratic Republic of the Congo, for example, accounts for about 70 percent of global cobalt output and half of reserves. Other standouts include Australia, for its lithium, cobalt, and nickel; Chile, for copper and lithium; along with Peru, Russia, Indonesia and South Africa.

A long-lasting metals boom could also bring substantial economic gains, especially for large exporters. In fact, we estimate that a persistent 10 percent rise in the IMF metal price index adds an extra two-thirds of a percentage point to the pace of economic growth experienced by metals exporting countries relative to importing ones. Exporters also would see a similar magnitude of improvement for government fiscal balances from royalties or tax revenues.

Policy implications

The high uncertainty surrounding demand scenarios is an important caveat. Technological change is hard to predict, and the speed and direction of the energy transition depends on the evolution of policy decisions. Such ambiguity is detrimental because it may hinder mining investment and raise the odds that high metal prices derail or delay the energy transition.

A credible, globally coordinated climate policy; high environmental, social, labor, and governance standards; and reduced trade barriers and export restrictions would allow markets to operate efficiently. This would direct investment to sufficiently expand metal supply, avoiding unnecessarily cost increases for low-carbon technologies and aiding the clean energy transition.

Finally, an international body with a mandate covering metals—analogous to the IEA for energy or the UN Food and Agriculture Organization—could play a key role in data dissemination and analysis, setting industry standards, and fostering global cooperation.

#AceNewsDesk report …………..Published: Nov.14: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here:  https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#carbon, #emissions, #energy, #imf, #metals, #worldwide

(LONDON) Green Energy Report: Rolls-Royce has been backed by a consortium of private investors and the UK government to develop small nuclear reactors to generate cleaner energy #AceNewsDesk report

#AceNewsReport – Nov.11: The investment by Rolls-Royce Group, BNF Resources, Exelon Generation and the government will go towards developing Rolls-Royce’s SMR design and take it through regulatory processes to assess whether it is suitable to be deployed in the UK.

#AceDailyNews says according to a BBC Business report: Rolls-Royce gets funding to develop mini nuclear reactors: The creation of the Rolls-Royce Small Modular Reactor (SMR) business was announced following a £195m cash injection from private firms and a £210m grant from the government.

Artist's impression of a small nuclear power station

It is hoped the new company could create up to 40,000 jobs by 2050.

However, critics say the focus should be on renewable power, not new nuclear.

Currently, about 16% of UK electricity generation comes from nuclear power.

Small modular reactors are nuclear fission reactors but are smaller than conventional ones.

It will also identify sites which will manufacture the reactors’ parts and most of the venture’s investment is expected to be focused in the north of the UK, where there is existing nuclear expertise.

Rolls-Royce’s share price jumped by 4.2% to 147.85p each following the announcement.

‘Cleaner energy’

Rolls-Royce SMR said one of its power stations would occupy about one tenth of the size of a conventional nuclear plant – the equivalent footprint of two football pitches – and power approximately one million homes.

The firm said a plant would have the capacity to generate 470MW of power, which it added would be the same produced by more than 150 onshore wind turbines.

Warren East, Rolls-Royce chief executive, said the company’s SMR technology offered a “clean energy solution” which help tackle climate change.

Business and Energy Secretary Kwasi Kwarteng said SMRs offered opportunities to “cut costs and build more quickly, ensuring we can bring clean electricity to people’s homes and cut our already-dwindling use of volatile fossil fuels even further”.

“This is a once in a lifetime opportunity for the UK to deploy more low carbon energy than ever before and ensure greater energy independence”, he added.

SMRs are thought to be less expensive to build than traditional nuclear power plants because of their smaller size. Due to the nature of Rolls-Royce’s reactors, it is understood parts could be produced in factories and transported to sites by road, which would reduce construction time and costs.

At an expected cost of around £2bn each, SMRs would cost less than the £20bn each for the larger plant under construction at Hinkley Point and an anticipated, but not yet approved, sister plant at Sizewell in Suffolk.

If approved for use in the UK, it is understood Rolls-Royce SMR could build up to 16 reactors across the UK for electricity production.

Tom Samson, chief executive Rolls-Royce SMR, said the company had been established to “deliver a low cost, deployable, scalable and investable programme of new nuclear power plants”.

“Our transformative approach to delivering nuclear power, based on predictable factory-built components, is unique and the nuclear technology is proven,” he added.

However, Paul Dorfman, chairman of the Nuclear Consulting Group think tank, told the BBC’s Today programme there was danger that the money spent on nuclear power would hit funding for other power sources.

“If nuclear eats all the pies which it is looking to be doing… we won’t have enough money to do the kind of things we need to do which we know practically and technologically we can do now,” he said.

Greenpeace’s chief scientist Dr Doug Parr said SMRs were still more expensive than renewable technologies and added there was “still no solution to dispose of the radioactive waste they leave behind and no consensus on where they should be located”.

“What’s worse, there’s not even a prototype in prospect anytime soon,” he added. “The immediate deadline for action is sharp cuts in emissions by 2030, and small reactors will have no role in that.”

Friends of the Earth’s head of policy, Mike Childs, said government support should be “aimed at developing the UK’s substantial renewable resources, such as offshore wind, tidal and solar, and boosting measures to help householders cut energy waste”.

As part of a “10-point plan” to dramatically reduce greenhouse gas emissions to reach a target of net zero by 2050, the government has said nuclear power provides a “reliable source of low-carbon electricity” and that it is “pursuing large-scale nuclear”, while also looking to invest in SMRs.

Tony Danker, director-general of the Confederation of British Industry, said the investment for Rolls-Royce was a “hugely promising milestone for a technology that can not only boost the economy but help deliver a greener and more secure energy system overall”.

Meanwhile, Tom Greatrex, chief executive of the Nuclear Industry Association, added the funding sent a “huge signal to private investors that the government wants SMRs alongside new large-scale stations to hit net zero”.

#AceNewsDesk report ……………Published: Nov.11: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#energy, #london, #reactors

(BRUSSELS) E.C. Press Release Statement Report: The European Commission has announced a package of measures to alleviate an energy price surge that has sent bills skyrocketing across Europe #AceNewsDesk report

#AceNewsReport – Oct.14: The Communication includes a “toolbox” that the EU and its Member States can use to address the immediate impact of current prices increases, and further strengthen resilience against future shocks. Short-term national measures include emergency income support to households, state aid for companies, and targeted tax reductions. The Commission will also support investments in renewable energy and energy efficiency; examine possible measures on energy storage and purchasing of gas reserves; and assess the current electricity market design.

#AceDailyNews reports that the Commission adopted a Communication on Energy Prices, to tackle the exceptional rise in global energy prices, which is projected to last through the winter, and help Europe’s people and businesses….

European Commissioner for Energy Kadri Simson gives a press conference on the energy price crisis
European Commissioner for Energy Kadri Simson said the onus was on EU member states to take action

The European Commission has announced a package of measures to alleviate an energy price surge that has sent bills skyrocketing across Europe.

Energy prices

Presenting the toolbox, Energy Commissioner Kadri Simson said: “Rising global energy prices are a serious concern for the EU. As we emerge from the pandemic and begin our economic recovery, it is important to protect vulnerable consumers and support European companies. The Commission is helping Member States to take immediate measures to reduce the impact on households and businesses this winter. At the same time, we identify other medium-term measures to ensure that our energy system is more resilient and more flexible to withstand any future volatility throughout the transition. The current situation is exceptional, and the internal energy market has served us well for the past 20 years. But we need to be sure that it continues to do so in the future, delivering on the European Green Deal, boosting our energy independence and meeting our climate goals.

A toolbox of short- and medium-term measures

The current price spike requires a rapid and coordinated response. The existing legal framework enables the EU and its Member States to take action to address the immediate impacts on consumers and businesses.

Priority should be given to targeted measures that can rapidly mitigate the impact of price rises for vulnerable consumers and small businesses. These measures should be easily adjustable in the Spring, when the situation is expected to stabilise. Our long-term transition and investments in cleaner energy sources should not be disrupted.

Immediate measures to protect consumers and businesses:

  • Provide emergency income support for energy-poor consumers, for example through vouchers or partial bill payments, which can be supported with EU ETS revenues;
  • Authorise temporary deferrals of bill payments;
  • Put in place safeguards to avoid disconnections from the grid;
  • Provide temporary, targeted reductions in taxation rates for vulnerable households;
  • Provide aid to companies or industries, in line with EU state aid rules;
  • Enhance international energy outreach to ensure the transparency, liquidity and flexibility of international markets;
  • Investigate possible anti-competitive behaviour in the energy market and ask the European Securities and Markets Authority (ESMA) to further enhance monitoring of developments in the carbon market;
  • Facilitate a wider access to renewable power purchase agreements and support them via flanking measures.

The clean energy transition is the best insurance against price shocks in the future, and needs to be accelerated. The EU will continue to develop an efficient energy system with high share of renewable energy. While cheaper renewables play an increasing role in supplying the electricity grid and setting the price, other energy sources, including gas, are still required in times of higher demand. Under the current market design gas still sets the overall electricity price when it is deployed as all producers receive the same price for the same product when it enters the grid – electricity. There is general consensus that the current marginal pricing model is the most efficient one, but further analysis is warranted. The crisis has also drawn attention to the importance of storage for the functioning of the EU gas market. The EU currently has storage capacity for more than 20% of its annual gas use, but not all Member States have storage facilities and their use and obligations to maintain them vary.

Medium-term measures for a decarbonised and resilient energy system:

  • Step up investments in renewables, renovations and energy efficiency and speed up renewables auctions and permitting processes;
  • Develop energy storage capacity, to support the evolving renewables share, including batteries and hydrogen;
  • Ask European energy regulators (ACER) to study the benefits and drawbacks of the existing electricity market design and propose recommendations to the Commission where relevant;
  • Consider revising the security of supply regulation to ensure a better use and functioning of gas storage in Europe;
  • Explore the potential benefits of voluntary joint procurement by Member States of gas stocks;
  • Set up new cross-border regional gas risk groups to analyse risks and advise Member States on the design of their national preventive and emergency action plans;
  • Boost the role of consumers in the energy market, by empowering them to choose and change suppliers, generate their own electricity, and join energy communities.

The measures set out in the toolbox will help to provide a timely response to the current energy price spikes, which are the consequence of an exceptional global situation. They will also contribute to an affordable, just and sustainable energy transition for Europe, and greater energy independence. Investments in renewable energy and energy efficiency will not only reduce dependence on imported fossil fuels, but also provide more affordable wholesale energy prices that are more resilient to global supply constraints. The clean energy transition is the best insurance against price shocks like this in the in the future, and needs to be accelerated, also for the sake of the climate.

Background

The EU, like many other regions in the world, is currently experiencing a sharp spike in energy prices. This is principally driven by increased global demand for energy, and in particular gas, as the economic recovery after the height of the COVID-19 pandemic gathers speed. The European carbon price has also risen sharply in 2021, but at a lesser rate than gas prices. The effect of the gas price increase on the electricity price is nine times larger than the impact of the carbon price increase.

The Commission has been consulting widely on the appropriate response to the current situation, and has participated in debates on this issue with Members of the European Parliament and Ministers in the Council of the European Union, while also reaching out to industry and to international energy suppliers. Several Member States have already announced national measures to mitigate price rises, but others are looking to the Commission for guidance on what steps they can take. Some international partners have already indicated plans to increase their energy deliveries to Europe.

The toolbox presented today allows for a coordinated response to protect those most at risk. It is carefully designed to tackle the short-term needs of bringing down energy costs for households and businesses, without harming the EU internal energy market or the green transition in the medium-term.

Next Steps

Commissioner Simson will present the Communication and toolbox to Members of the European Parliament on Thursday 14 October and to Energy Ministers on 26 October. European Leaders are then due to discuss energy prices at the upcoming European Council on 21-22 October. This Communication is the Commission’s contribution to the continued debate among EU policy makers. The Commission will continue its exchanges with national administrations, industry, consumer groups and international partners on this important topic, and stands ready to respond to any additional requests from Member States.

For More Information

Communication on Energy Prices

Questions and Answers on the Communication on Energy Prices

Factsheet on the EU Energy Market and Energy Prices

Factsheet on the toolbox

EU energy prices webpage

*: updated on 13/10 – 13.15

#AceNewsDesk report ………………Published: Oct.14: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#brussels, #electric, #energy, #gas, #pricing

(BRUSSELS/MOSCOW) E.U Policymakers and some traders blame Russia for the low volume of gas stored across the region which has sent both gas and electricity prices surging to record highs but #Gazprom says they met all commitments #AceNewsDesk report

#AceNewsReport – Oct.10: Some policymakers and traders have speculated additional gas has been deliberately withheld to make a diplomatic point and accelerate the approval of the Nord Stream 2 pipeline….

#AceDailyNews says according to media report Russia’s pipeline gas export monopoly #Gazprom has met commitments for long-term contracts, its clients confirm. But it has not raced to book extra pipeline capacity for spot buyers, despite European calls for more supplies now they want a license for ‘Nordstream2‘ according to RT News and will provide all the Gas needed for prices to fall …

Nord Stream

Others say Russia has withheld gas to create a shortage, drive up prices and increase export revenues, similar to the way the OPEC+ producer group raises oil prices and its revenues: The other possibility is Russia has not supplied more gas because it faces its own shortage and wants to rebuild domestic stocks after they were depleted by a cold winter in 2020/21.

Why Europe faces steep winter energy bills

LONDON, Oct 8 (Reuters) – Households across Europe face much higher winter energy bills due to a global surge in wholesale power and gas prices and consumer groups have warned the most vulnerable in the region could be hit by fuel poverty as a result.

WHY THE HIGH PRICES?

Energy companies pay a wholesale price to buy gas and electricity, which they then sell to consumers. As in any market, this can go up or down, driven by supply and demand.

Prices typically rise in response to more demand for heating and people turning lights on earlier in winter, while those in the summer period are usually lower.

But prices have sky-rocketed due to low gas storage stocks, high European Union carbon prices, low liquefied natural gas tanker deliveries due to higher demand from Asia, less gas supplies from Russia than usual, low renewable output and infrastructure outages.

Benchmark European gas prices at the Dutch TTF hub have risen by more than 400% since January, while benchmark German and French power contracts have more than doubled.

#AceNewsDesk report ………………Published: Oct.10: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#russia, #brussels, #energy, #europe, #gas

(NEW DELHI) JUST IN: North Indian states have suffered electricity cuts and face further outages because of a lack of coal, an analysis of government data and interviews with residents found, contradicting government assurances there is enough power #AceNewsDesk report

#AceNewsReport – Oct.10: Over half of India’s 135 coal-fired power plants, which in total supply around 70% of India’s electricity, have fuel stocks of less than three days, data from the federal grid operator showed…..

#AceDailyNews says according to Reuters Indian states suffer power cuts as coal stocks shrink but government says their are plenty of stocks ……The shortages in India – the world’s largest coal consumer after China – follow widespread outages in neighbouring China, which has shut factories and schools to manage the crisis.

India’s power ministry did not immediately respond to a request for comment.

On Wednesday, the Indian Express newspaper quoted power minister R.K. Singh as saying: “There is nowhere that we have not been able to supply the quantity of power demanded.”

#AceNewsDesk report …………..Published: Oct.10: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#china, #coal, #energy, #india, #new-delhi

(LONDON) ENERGY REPORT: British wholesale gas for day-ahead delivery breached 3 pounds/therm for the first time on Wednesday morning amid an extended global energy market rally #AceNewsDesk report

#AceNewsReport – Oct.08: Both British and Dutch wholesale gas prices have experienced fresh surges this week due to low gas stocks, lower supply from Russia, colder temperatures, lower wind output and lower generation from some French nuclear plants due to a strike.

#AceDailyNews says that according to Reuters Business report: British wholesale gas exceeds 3 pounds/therm for first time the British day-ahead contract rose by 0.41 pounds, or 14.7%, to a new all-time high of 3.20 pounds/therm by 0807 GMT.

Flames from a gas burner on a cooker are seen February 1, 2017 in this illustration photo taken in a private home in Nice, France.  Picture taken February 1, 2017.    REUTERS/Eric Gaillard
Reuters: By Nina Chestney and Nora BuliOctober 6, 20215:45 PM BSTLast Updated 17 hours ago

Dutch wholesale gas at the TTF hub broke the 100 euro level yesterday and the front-month contract is now trading at around 138.60 euros per megawatt hour.

“Low gas inventories across the globe as winter approaches have been pushing up demand in the physical market whilst supplies have been slower to respond,” said analysts at ING.

But European energy commissioner Kadri Simson said on Wednesday that EU countries have enough gas in storage to last through winter, and the surge in prices shows the need to quickly switch to renewable sources and reform the EU gas market. [nL8N2R21HX]

“Gas underground storage is above 75% across Europe. This level is lower than the ten-year average, but adequate to cover the winter season needs,” she told the European Parliament.

Simson plans to present a plan to overhaul the gas market by the end of the year.

In wider energy markets, prices are also rallying.

Oil hit a multi-year high on Wednesday above $83 a barrel, supported by OPEC+’s refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.

European power and coal prices are also at multi-year or record highs.

Regional natural gas markets in the United States are seeing prices for this winter surge and Asian liquefied natural gas (LNG) prices are at record highs on sustained demand from China amid a power crunch and competition with Europe for LNG cargoes.

“We are currently living exceptional circumstances because the world gas market has never been in a situation where Asia and Europe were obliged to compete fiercely for the marginal LNG cargo available (as the latter was supposed to benefit from comfortable pipeline supply),” said analysts at Engie EnergyScan.

Reuters: Reporting by Nina Chestney and Nora Buli

#AceNewsDesk report …………….Published: Oct.08: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#energy, #gas, #london, #pricing

(LONDON) OFGEM ENERGY REPORT: Price Cap has been raised thus allowing ‘Energy Companies’ to raise their prices by a further 12% as consumers prepare for Winter #AceNewsDesk report

#AceNewsReport – Oct.02: Those on standard tariffs, with typical household levels of energy use, will see bills go up by £139 to £1,277 a year, but the more energy a household uses, the higher their bill will be: Prepayment meter customers with average energy use will see a £153 increase…..

#AceDailyNews says according to BBC Business report ‘Energy Price Cap’ raised on Friday as millions of households face higher gas and electricity bills that will put a squeeze on household finances and will become more acute as a new, higher energy price cap takes effect.

By Kevin Peachey
Personal finance correspondent, BBC News

Woman at desk with bill

Households on fixed tariffs will be unaffected, but those coming to the end of a contract are automatically moved to a default tariff set at the new level. In the past customers have been able to shop around for cheaper deals, but currently, they won’t find anything cheaper, due to the high price of gas.

The cap has come under the spotlight owing to the crisis among suppliers, which saw the collapse of nine suppliers in recent weeks……

The cap limits how much providers can raise prices. Even so, the current increase is the biggest jump, to the highest amount, seen since the backstop was introduced in January 2019.

It represents a 12% rise in energy prices at a time of the year when, charities point out, people are about to use more heating and lighting during colder, darker days. It also coincides with other price rises hitting family budgets and the withdrawal of Covid support schemes, although the government has promised to continue financial help for the poorest households.

About 15 million households in England, Wales and Scotland are affected by the changes. 

The cap does not apply in Northern Ireland where prices are overseen by a regulator.

How the cap works

The regulator Ofgem sets a price cap for domestic energy twice a year. The latest level kicked in on 1 October.

It is a cap on the price of energy and charges that suppliers can levy. A household’s total bill is still determined by how much gas and electricity is used. 

  • Those on standard tariffs, with typical household levels of energy use, will see an increase of £139 – from £1,138 to £1,277 a year – to their bill
  • People with prepayment meters, with average energy use, will see an annual increase of £153 – from £1,156 to £1,309
  • Households with larger than average energy use will have a higher annual bill

Adam Scorer, from fuel poverty charity National Energy Action, said: “The massive devastating increases in energy prices will drive over 500,000 more households into fuel poverty, leaving them unable to heat or power their homes.”

Usually the introduction of more expensive energy bills is accompanied with advice to consumers on standard tariffs to switch to a cheaper deal.The current crisis in the sector means that, this time, there is no availability of better offers. A tariff set at the price cap limit is the most competitive available.Instead, residents are being encouraged to save money by looking at the energy efficiency of their homes…….

The Energy Saving Trust said that the price rise could be more than outstripped by changes to our homes and habits.Mr Scorer, from National Energy Action, said: “We can’t lose sight of the long-term solution to reduce the energy waste in our homes. We have some of the least efficient housing in Europe. “

This has left the UK more exposed to the current soaring gas price than many other countries and we are wasting billions of pounds each year as heat escapes through leaky roofs, floors and ceilings.“Price cap is tough for suppliersThe new cap was decided in August and is designed to reflect the unavoidable costs faced by energy suppliers……………This came slightly ahead of a massive jump in wholesale gas prices which has led to the collapse of nine suppliers in recent weeks. They have been unable to keep to the price promises they made to their customers, and were uninsured against the increasing costs.Avro Energy, for example, confirmed on Friday that it had fallen into administration. Its customers will be transferred to Octopus Energy, while its 103 staff will be kept on “in the short-term” to help with the change.The tariffs that will be charged for the 1.7 million customers moving to new suppliers after their previous provider collapsed are being set at the same level as the new price cap. Senior executives of bigger suppliers have argued that the price cap is making the situation worse. They say they are shouldering billions of pounds in additional costs by providing customers with energy that costs more to buy than they are allowed to sell it for under the retail price cap.

Emma Pinchbeck, chief executive of Energy UK, the trade association for the energy industry, told the BBC’s Today programme: “It costs around £600 to take on a new customer at the moment because of the astonishing price of gas in the market and that’s the main issue.”She added that more energy suppliers were expected to fail given the current “volatile” gas market.Firms have criticised Ofgem, claiming that it should have known many smaller suppliers would not be resilient in the face of gas price rises.Jonathan Brearley, chief executive of Ofgem, rejected the criticism, saying that nobody could have predicted the huge rise in the cost of wholesale gas.He accepted that the cost of protecting customers from failing energy providers could lead to higher bills in the future…..

Ofgem will decide the level of the next price cap – which analysts predict to be considerably higher – in February, before it takes effect at the start of April: A spokeswoman for the regulator said: “We are doing all we can to make sure consumers, especially people in vulnerable circumstances, do not pay more than is absolutely necessary this winter.”Higher energy costs are never welcome news to anyone and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic…..

Anyone struggling to pay their energy bills should get in touch with their supplier to access the help that is available.”

#AceNewsDesk report …………Published: Oct.01: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts from Twitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/ and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#consumer, #electricity, #energy, #gas, #london, #ofgem, #price-cap

(NEW YORK) Stock Markets Report: Goldman Sachs has become the latest banking giant to cut its growth forecast for China, as the country struggles with energy shortages #AceNewsDesk report

#AceNewsReport – Sept.28: The firm says major industrial output cuts caused by power outages add “significant downside pressures: It estimates as much as 44% of China’s industrial activity has been affected.

#AceDailyNews says according to media reports Goldman Sachs has cut China growth forecast over power outages as it now expects the world’s second largest economy to expand by 7.8% this year, down from its previous prediction of 8.2%.

Smoke is pouring out of the chimneys of the power plant.
Energy shortages are clouding China’s economic outlook

The power supply crunch, caused by environmental controls, supply constraints and soaring prices, has left some factories and homes without electricity.

The energy shortage at first affected manufacturers across the country, many of whom have had to curb or stop production in recent weeks.

A document seen by the BBC shows that the largest port in northern China at Tianjin has been affected by a shortage of electricity. Power rationing for cranes that lift cargo between ships and the shore is expected to continue until the end of the week.

The shortage has now spread to some homes, with residents in north-east China experiencing unannounced power cuts in the past few days.

People living in Liaoning, Jilin and Heilongjiang provinces have complained on social media about the lack of heating, and lifts and traffic lights not working. Provincial authorities have been scrambling to guarantee electricity and heating for residents.

China remains highly dependent on coal for electricity generation: China’s struggle to move away from coal

Japanese finance giant Nomura, Wall Street investment bank Morgan Stanley and China International Capital Corporation have also either downgraded their economic growth forecasts for China or warned of lower growth because of the power disruptions.

The Chinese economy is already grappling with the impact of tough new regulations of some of the country’s biggest industries such as property developers and technology companies.

Evergrande concerns

Concerns over the fate of the heavily-indebted real estate giant Evergrande are also weighing on investor sentiment.

“Considerable uncertainty remains with respect to the fourth quarter, with both upside and downside risks relating principally to the government’s approach to managing the Evergrande stresses, the strictness of environmental target enforcement and the degree of policy easing,” Goldman said.

On Monday, without mentioning Evergrande by name, China’s central bank promised to protect consumers exposed to the housing market.

The announcement by the People’s Bank of China has been seen as a signal that authorities are ready to act to stop any fallout from the Evergrande crisis spreading to other parts of the economy.

Global markets have been rocked in recent days as investors fret about the company’s ability to make interest repayments on its more than $300bn (£219bn) of debt.

#AceNewsDesk report ……….Published: Sept.28: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#china, #coal, #energy, #new-york, #stock-markets

(LONDON) GOVUK Statement Report: Biggest ever renewable energy support scheme backed by additional £265 million according to Dept for BEIS #AceNewsDesk report

#AceNewsReport – Sept.14: Details of how the UK will get more electricity from renewable sources will be published today (Monday, 13 September), as the Government announces the biggest-ever round of its flagship renewable energy scheme.

#AceDailyNews reports that details of how the UK will get more electricity from renewable sources will be published, Monday as the Government announces the biggest-ever round of its flagship renewable energy scheme more soon ….

  • Latest round of support for businesses aims to secure record extra renewable energy capacity
  • Offshore wind backed by £200 million with additional £24 million ringfenced for floating offshore wind projects

The Contracts for Difference (CfD) scheme is the Government’s primary method of encouraging investment in low-carbon electricity. It is open to projects operating in Great Britain.

It incentivises investment in renewable energy by providing developers of projects with high upfront costs and long lifetimes with protection from volatile wholesale prices. This in turn ensures consumers don’t pay increased costs when electricity prices are high.

£265 million per year will be provided to businesses in the fourth round of the scheme, which aims to double the renewable electricity capacity secured in the third round and generate more than the previous three rounds combined. The additional offshore wind capacity resulting from the funding alone could power around 8 million homes.

Today’s announcement contains £200 million to support offshore wind projects. This will help meet the manifesto commitment to ensure the UK has 40GW of capacity by 2030. There will also be £55 million available for supporting emerging renewable technologies. £24 million of that is ringfenced for floating offshore projects for the first time, showing commitment to the development of this high-potential, innovative technology.

For the first time since 2015, established technologies, including onshore wind and solar, will also be able to bid. The Government is seeking up to 5GW of capacity from these technologies, with a £10m budget. This will support investment in all parts of Great Britain, particularly Scotland and Wales.

The CfD scheme has boosted the success of the UK’s world-leading offshore wind industry. As set out in the Prime Minister’s Ten Point Plan for a Green Industrial Revolution, the offshore wind sector could support up to 60,000 jobs by 2030.

The previous round of the CfD scheme delivered record-low prices and secured enough clean energy to power over 7 million homes. The scheme’s competitive design also protects consumers and thanks to the investment of successive governments the price of offshore wind has been reduced by around 65%.

These costs continue to fall as green technology advances, with solar and wind now cheaper than coal and gas in most of the world. Ahead of the COP26 Climate Change Summit, the Government has committed to supporting green technology and the high quality jobs it creates to help the UK build back better from the pandemic.

Energy Minister Anne-Marie Trevelyan said:

The Contracts for Difference scheme has helped the UK become a world leader in clean electricity generation and lowered prices for consumers.

The new plans set out today deliver on the Prime Minister’s Ten Point Plan and will support the next generation of renewable electricity projects needed to power our homes and meet our world-leading climate change targets.

CfD contracts are allocated through a competitive auction process where the cheapest projects in each technology group are awarded contracts first.

Today’s announcement establishes Government support that will be available for renewable projects, along with levels of electricity generation capacity that are anticipated to be delivered by the fourth CfD round. Final levels of support and capacity could be higher and will be announced ahead of the round opening in December.

Updated guidance is also being published for onshore wind projects in England, to ensure local communities are given a more effective voice on local development. Renewable projects are subject to strict planning controls that afford protections to local communities and the environment and guidance will ensure communities are engaged with and are able to benefit from renewable infrastructure in their area.

Additional Notes:

Key points (£ budgets in 2011/12 prices):

Pot 1: Established technologies (includes Onshore wind, Solar and Hydropower):

  • £10 million pot budget
  • Cap of 5GW on total capacity
  • Maximum capacity limits of 3.5GW imposed on both onshore wind and solar PV

Pot 2: Less-established technologies (includes Floating Offshore Wind, Tidal Stream, Geothermal and Wave):

  • £55 million pot budget
  • No capacity cap imposed
  • £24 million ringfenced support for floating offshore wind projects

Pot 3: Offshore wind:

  • £200 million pot budget
  • No capacity cap

Further information:

  • Contracts for Difference are 15-year private law contracts between renewable electricity generators and the Low Carbon Contracts Company (LCCC), a Government-owned company that manages CfDs at arm’s length from Government.
  • Contracts are awarded in a series of competitive auctions, known as allocation rounds, which have been run every two years since 2015. In the auction process, the lowest price bids are successful, which drives efficiency and cost reduction.
  • CfDs give greater certainty and stability of revenues to electricity generators by reducing their exposure to volatile wholesale prices, while protecting consumers from paying for higher costs when electricity prices are high.
  • More information on how the Contracts for Difference scheme operates can be found here.
  • The scheme has delivered substantial new investment and helped deliver significant reductions in the costs of capital for some renewable technologies, such as helping to reduce the price of offshore wind by around 65%.
  • Alongside the Draft Budget Plan, the Government is also publishing today:
  • A Draft Allocation Framework, which sets out the rules for the fourth CfD round, and the eligibility requirements applicants must satisfy.
  • An Administrative Strike Price Methodology Note, setting out the methodology used to determine the maximum backstop prices available to individual renewable technologies in the fourth round.
  • Monetary support (pot budget) estimates in this notice, including the £265 million total figure and split across the three pots, are presented in 2011/12 prices in line with the Control for Low Carbon Levies. These figures are an estimate of annual support in the most expensive year in the first four years following deployment. Actual annual figures will vary over the lifetime of the contract depending on future wholesale electricity prices, and outcomes of the competitive auction process.

Information on methodology behind ‘homes powered’ estimates:

  • The ‘8 million homes’ estimate is based on the estimated consented pipeline for offshore wind (around 7 GW). Actual generation secured through this allocation round will vary based on the outcome of the competitive auction process, and given the large number of projects from other technologies competing in the round.
  • This has been calculated using load factor estimates for offshore wind commissioning in 2025 from the published 2020 BEIS Generation Costs Report, and published estimates of average household electricity consumption.
  • Importantly, wind generation is intermittent – it is not possible to continuously power a home through wind alone.

#AceNewsDesk report ………Published: Sept.14: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#business, #energy, #govuk, #press-release

(LONDON) JUST IN: Initial results from a UK experiment could help clear a hurdle to achieving commercial power based on nuclear fusion, experts say #AceNewsDesk report

#AceNewsReport – May.27: The system, which has been likened to a car exhaust, resulted in a tenfold reduction in the heat:

LONDON: Mast Upgrade: UK experiment could sweep aside fusion hurdle: The researchers believe they now have a better way to remove the excess heat produced by fusion reactions: This intense heat can melt materials used inside a reactor, limiting the amount of time it can operate for…..

By Paul Rincon
Science editor, BBC News website

Mast upgrade
Artwork: Mast Upgrade has been testing an innovative designhttps://www.bbc.co.uk/news/science-environment-57232644

The tests were carried out at the Mast (Mega Amp Spherical Tokamak) Upgrade nuclear fusion experiment at Culham in Oxfordshire. The £55m device began operating in October last year, after a seven-year build.

Nuclear fusion is an attempt to replicate the processes that power the Sun – and other stars – here on planet Earth.

Elusive goal

But the trick is getting more energy out of the reactions than you put in. This goal continues to elude teams of scientists and engineers around the world, who are working to make fusion power a reality.

Existing nuclear energy relies on a process called fission, where a heavy chemical element is split to produce lighter ones. Fusion works by combining two light elements to make a heavier one. 

One common fusion approach uses a reactor design called a tokamak, in which powerful magnetic fields are used to control charged gas – or plasma – inside a doughnut-shaped container.

John LawrenceInside the tokamak, where plasmas are controlled by magnetic fields

An international fusion megaproject called Iter is currently under construction in southern France. Prof Ian Chapman, chief executive of the United Kingdom Atomic Energy Authority (UKAEA), said it would be crucial for demonstrating the feasibility of bringing fusion power to the grid. 

But he added that Iter’s size and cost meant that “if every time you wanted to build a unit, you had to raise that sum of money, then the penetration into the market would be determined by economics, not technology”. 

‘Hotter than the Sun’

Mast Upgrade is one attempt to come up with a template for more compact, cheaper fusion reactors. It makes use of an innovative design known as a spherical tokamak to squeeze the fuel into a 4.4m-tall, 4m-wide space. By comparison, the containment vessel Iter will use to control its fusion reactions is 11.4m tall and 19.4m wide.

But Mast Upgrade’s bijou dimensions come at a price: “You’re making something that’s hotter than the Sun… in a smaller volume. How you then get the heat out becomes a big challenge,” said Prof Chapman.

The core of the plasma within the tokamak reaches temperatures of 100 million C. Without an exhaust system that can handle this unimaginable heat, materials in the design would have to be regularly replaced – significantly affecting the amount of time a power plant could operate for.

The new exhaust system being trialled at Culham is known as a Super-X divertor. This would allow components in future commercial tokamaks to last for much longer; greatly increasing the power plant’s availability, improving its economic viability and reducing the cost of fusion electricity.

Tests at Mast Upgrade have shown at least a tenfold reduction in the heat on materials with the Super-X system.

Researchers said the results were a “game-changer” for the promise of fusion power plants that could provide affordable, efficient electricity. Against the background of climate change, fusion could offer a clean and virtually limitless source of energy.

Dr Andrew Kirk, lead scientist on Mast Upgrade, said the results were “the moment our team at UKAEA has been working towards for almost a decade”.

“We built Mast Upgrade to solve the exhaust problem for compact fusion power plants, and the signs are that we’ve succeeded.

“Super-X reduces the heat on the exhaust system from a blowtorch level down to more like you’d find in a car engine. This could mean it would only have to be replaced once during the lifetime of a power plant.”

The success of the exhaust system for Mast Upgrade delivers a boost to plans for a prototype fusion power plant in the UK called Step. It is expected to come online sometime in the 2040s.

The Mast Upgrade facility will have its official opening ceremony on Wednesday, where guest of honour, astronaut Tim Peake, will create his own artificial star by running a plasma test on the machine.

#AceNewsDesk report ………Published: May.27: 2021:

Editor says #AceNewsDesk reports by https://t.me/acenewsdaily and all our posts, also links can be found at here for Twitter and Live Feeds https://acenewsroom.wordpress.com/ and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#energy, #fusion, #heating, #lighting, #london

‘ RUSSIAN DELEGATION ARRIVE OVER TALKS WITH VENEZUELA, MEXICO & SAUDI ARABIA ‘

#AceWorldNews – VIENNA – Nov.25 – The Russian delegation arrived in Vienna on Tuesday for a meeting over oil output with Venezuela, Mexico and Saudi Arabia.

Igor Sechin, the head of Russian state oil company Rosneft and Energy Minister Aleksandr Novak will discuss the situation on the oil market, RIA Novosti said.

The meeting comes amid hints that Moscow could cut output or exports if OPEC does the same, Reuters said.

Analysts are divided on the outcome of OPEC’s meeting on Thursday in Vienna.

Oil prices have fallen 30 percent since June to around $80 per barrel.

#ANS2014 

#energy, #exports, #oil, #state

UPDATE: ‘ COLUMBIAN PRESIDENT SUSPENDS PEACE TALKS OVER FARC KIDNAPPINGS ‘

#AceWorldNews – COLUMBIA – Nov.18 – Updated News – Earlier l posted a news article over the kidnapping of General Ruben Alzate on Sunday, by suspected FARC rebelsAt the time there was a threat to the fragile peace talks.

The latest information is that Colombian President Juan Manuel Santos has suspended peace talks with FARC rebels on Monday after their kidnapping of an army general.

General Ruben Dario Alzate was captured the day before with another military official and a civilian during a visit to the site of an energy project in the northern province of Choco.

” Negotiators were to travel to another round of talks in Havana,” President Santos said on Sunday, Reuters reports.

“I will tell them not to go and that the talks are suspended until these people are released.” he said at a press conference. 

The Revolutionary armed forces of Colombia, or the FARC, a military Marxist organization, and the government have been holding peace talks for two years, though this bloody conflict dates back to the 1960’s. 

#ANS2014 

#choco, #energy, #general, #havana, #kidnap, #peace-talks

NORTH AMERICA: ‘ Task-Force Recommends Prioritising Canada-Mexico-US Foreign Policy ‘

#AceNewsServices  NORTH AMERICA: On October 02 a new CFR-sponsored Independent Task Force report, North America: Time for a New Focus, asserts that elevating and prioritizing the Canada-Mexico-U.S. relationship offers the best opportunity for strengthening the United States and its place in the world.

“It is time to put North America at the forefront of U.S. policy,” the report says. “The development and implementation of a strategy for U.S. economic, energy, security, environmental, and societal cooperation with its two neighbours can strengthen the United States at home and enhance its influence abroad.”

The Task Force proposes a comprehensive set of recommendations for deepening North American integration, concentrating on four pivotal areas—energy, economic competitiveness, security, and community. These include:

ENERGY: 

Capitalizing on North America’s promising energy outlook. The North American countries need a regional energy strategy to strengthen the continent’s energy infrastructure, expand energy exports, support Mexico’s historic reforms, improve safety, and encourage harmonized policies to promote energy conservation and reduce carbon emissions.

“For economic, environmental, and diplomatic reasons, the Task Force recommends that the U.S. government encourage increased energy connections with Canada and Mexico. The U.S. government should approve additional pipeline capacity, including the Keystone XL pipeline,” the report says. “The Task Force also proposes that the United States end restrictions on energy exports, including oil and LNG (liquefied natural gas).”

ECONOMIC: 

Bolstering economic competitiveness through the freer movement of goods and services across borders. Upgrading infrastructure and policies across borders would interconnect national economies securely and efficiently. Recognizing trilateral economic interests, the United States should also include Canada and Mexico in its negotiations for the Transatlantic Trade and Investment Partnership (TTIP) and other free trade agreements.

“The United States’ ability to compete in a dynamic and competitive world economy would be strengthened by enhanced economic ties with Canada and Mexico,” the report explains. “The Task Force recommends working toward the free and unimpeded movement of goods and services across North America’s common borders.”

SECURITY: 

Strengthening security through a unified continental strategy and “continuous border innovation.” While working toward the goal of a unified security strategy for North America, the United States and Canada should support Mexican efforts to strengthen the democratic rule of law, dismantle criminal networks, contribute to the development of resilient and cohesive communities, and reduce arms smuggling and drug consumption.

“The United States should shift from border-centric security toward a strategy of combining perimeter protection with security in depth through the use of intelligence, risk assessment, shared capabilities, and joint actions throughout the region,” the report says.

IMMIGRATION: 

Fostering a North American community through comprehensive immigration reform, workforce development, and the creation of a mobility accord to facilitate the movement of workers. The U.S. Congress should pass comprehensive immigration reforms. To better aid the movement of North American workers, the three countries should also create a North American Mobility Accord, expand visas for skilled workers, streamline recognition of professional credentials, and develop a regional educational innovation strategy.

“The Task Force strongly recommends the passage of comprehensive federal immigration reform that secures U.S. borders, prevents illegal entry, provides visas on the basis of economic need, invites talented and skilled people to settle in the United States, and offers a pathway to legalization for undocumented immigrants now in the United States,” the report says.

CHAIRED BY: 

Chaired by David H. Petraeus, retired U.S. Army general and chairman of the KKR Global Institute, and Robert B. Zoellick, former president of the World Bank Group and chairman of Goldman Sachs’s International Advisors, the Task Force is composed of a diverse and distinguished group of experts that includes former government officials, scholars, and others. The project is directed by CFR Senior Fellow for Latin America StudiesShannon K. O’Neil.

Source:

#ANS2014 

#canada, #canada-mexico-us, #economic, #energy, #immigration, #mexico, #north-america, #security, #us

` United States prepares a $1 Billion Energy Subsidy Package for the Ukraine ‘

#AceWorldNews says the Obama administration announced a $1 billion energy subsidy package in Washington as Kerry was arriving in Kiev.

The fast-moving developments came as the United States readied economic sanctions amid worries that Moscow was ready to stretch its military reach further into the mainland of the former Soviet republic.

#ANS2014

#energy, #john-kerry, #kiev, #moscow, #obama, #united-states, #washington

#AceNewsServices says here are the latest Food…

#AceNewsServices says here are the latest “Food and Health News” from our resident #Chefs-tip posts.
1. How to avoid Salmonella Poisoning from eggs http://wp.me/p2QGMH-ez
2. Benefits of Broccoli http://wp.me/p2QGMH-ew
3. Eating Oatmeal is Gives you Energy and is Slow Burning http://wp.me/p2QGMH-eH
4. Beauty of Eating Cabbage http://wp.me/p2QGMH-fz
Courtesy of #AceFoodNews

#benefits, #broccoli, #cabbage, #eggs, #energy, #oatmeal, #salmonella, #slow-burning

“Eat or Heat as Keeping UK Homes Warm is Becoming a Bigger Problem”

UK energy-related grapic

UK energy-related grapic (Photo credit: Wikipedia)

#AceNewsServices says the recent planned rise in the energy bills by the big six energy companies is becoming a bigger and more difficult problem, as the cold snaps of the last few days start to bite.

Then add in the fact as this video shows that “Energy Costs” have risen by just 1.7% whilst the costs of consumers bills have risen by 75% over the past two years.

Our UK Prime Minster and his Chancellor tells us they can do nothing other than to make bills even clearer and offer great choice to the consumer, with the added bonus of them taking away their “Green Levy” with of course replacing it with added back tax to people receiving the “Warm Front Incentive” of just £135.00 per annum.

The fact that the average “UK Energy Bill ” is over a £1,000 and some even more in some cases, with a planned 6% rise in the offing, it would mean families being worst off to the tune of another £60.00 per year.

Of course our illustrious Prime Minister has all the answers he says ” Just Put on Another Jumper ” but as one “Elderly Pensioner” retorted on the video – ” You Can only Wear So Many Jumpers” – she is quite right.

Maybe he could dip into his “Private Trust Fund ” and give all those that need it a helping hand, at least his hands will be warm not like so many more!  

 

#aceconsumernews, #aceconsumerviews, #aceenergynews, #conservation, #david-cameron, #department-of-energy-and-climate-change, #energy, #energy-in-the-united-kingdom, #energy-industry, #environment, #fuel-poverty, #government, #member-of-parliament, #national-energy-action, #scottish-power, #technology