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The Herald Scotland
01-05-2025
- Business
- The Herald Scotland
There's no need for energy bills to be so high. We need zonal pricing
In Scotland where most of the electricity is generated by renewables there is no need for us to be charged at the cost of using gas, especially when our energy requirements can be over 50% more because of the cold weather. The constant reference to constraint payments is a red herring as it is assessed as being likely to be 'only' £1.8bn in 2025 according to the National Energy System Operator (NESO) and the vast majority of constraint costs (76%) relate to gas generators, which are typically paid to increase output at certain times and replace constrained generation from other sources to ensure demand is met. The biggest driver of constraint cost variation is the wholesale price of electricity – not because wind farms are paid more to turn down, but because gas generators are paid more to turn up when prices are high. Because the wind-generated electricity is governed by the strike price there will be no loss of income for the wind turbine operators and even if the strike price is increased by £20 per MWh at the next round of government auctions for new wind farms as suggested, wind-generated electricity will still be half the cost of gas-generated electricity. The suggestion that the South of England will need to pay more is also misleading as they like other areas already pay for their electricity at gas generation costs and any change should be minimal and certainly nowhere near the 66% more currently paid in the North of Scotland for their higher energy use. Scotland should be paying a more realistic price for electricity and this would lead to more energy-intensive companies locating here, more households changing to air-sourced heat pumps because they would be cheaper than gas to run and more people changing to electric vehicles, all of which would use a lot of the excess electricity generated in Scotland until the national grid is upgraded. The only section which would lose out would be the wholesale energy companies, no doubt comprising most of the 55 energy companies, which would lose some of their excess unearned profit and the UK Government which would lose tax from the windfall profits which it doesn't use to help those in Scotland who use more energy. Europe's association of power grid operators (ENTSO-E) has recommended that Germany, which has a single large power market zone with a unified price including Luxembourg, should be split into at least two zones to stop high prices in one region bleeding across the entire country. Iain McIntyre, Sauchie. Read more letters Buy back the National Grid Norman McNab's letter (April 28) gave a very good summary of the present sad state of our electricity industry resulting from privatisation in 1990. The government (both UK and Scottish) targets to reduce CO2 emissions in the energy sector are failing and the long-term aims are unlikely to be achieved. This is in spite of the fact that oil and gas are heavily taxed and electricity is taxed at 21% which amounts to approximately £21 billion being paid to the Treasury each year. All these taxes are paid by consumers and with energy prices increasing each year the tax take by the Treasury will increase. The electricity grid is a key part of the electricity supply industry and Mr McNab suggests it is 'very unlikely we could ever afford to buy it back again". This a reasonable assessment but I believe that where there is a will there is a way. One way would be to use the approximate £21 billion tax, or part of it over say five years, to buy back the electricity part of the National Grid Co. This is a way to use consumers' money to buy back what they should own in the first place. A further step could be taken by the Government to build and own all new generating plants using government borrowing. This infrastructure investment should be ring-fenced in the Treasury and the borrowing repaid from a proportion of the price of electricity, not from taxation. These issues could be resolved satisfactorily if government were open to new ideas and not locked in to rigid policies. Charles Scott, Edinburgh. Rethink the River City axe Steve Barnet (Letters, April 30) is perfectly correct in his comments regarding news reporting on the BBC, but I would suggest that he is scraping the top of the iceberg regarding the BBC's saturation coverage about what is happening in England, sometimes including items of trivia, while all too often ignoring or distorting what is happening in the other nations of the UK. On Tuesday I watched an episode of River City and thought the acting of all the cast throughout a distressing and harrowing episode, especially the performances of the young actors and actresses, was superb. All credit to them, and all shame on the BBC for wielding the axe on River City. Scotland cannot afford to lose such talent; the BBC should think again. Ruth Marr, Stirling. A scene from River City (Image: BBC Scotland) Sorry, what did you say? I once said to my wife: "Your hearing is getting very dull." She replied: "I know: I'm going to the jeweller to get it seen to." The jeweller will fix your hearing ?" "Not my hearing, my earring, you deaf old bat." But it's not just us oldies. My son asked his wife to pick up some artesian water. On her return she said: "I couldn't find any Cartesian water." Just think: if old Descartes had been a supplier of water he might famously have said "I drink, therefore I am", though I had a boozy old relative who would just as famously have said "I am, therefore I drink." These mishearings are terribly widespread. During one lively debate about doctors one lady said: "OK, doctors can make mistakes like the rest of us – but can't do wrong deliberately. They have to swear that they will 'First do no harm'. I think it's called the Hypocritical Oath." Well, there's a comfort. Donald M Manson, Prestwick.
Yahoo
29-04-2025
- Business
- Yahoo
Germany advised to split power market to reflect regional cost differences
Germany should contemplate dividing its electricity market into distinct five price zones to more accurately represent varying regional costs, according to a report by the European Network of Transmission System Operators for Electricity (ENTSO-E). The current unified power market zone, inclusive of Luxembourg, faces grid congestion and disparities in renewable energy distribution, prompting the recommendation. ENTSO-E's examination of different scenarios for segmenting Germany's market indicated that all options could be economically advantageous. A division into five bidding zones could be the most economically efficient strategy, estimated to cost between €251m ($285.5m) and €339m for 2025. This segmentation could potentially reduce prices in the northern regions, where renewable energy is plentiful, but might increase costs in southern areas,where industrial consumption is higher, according to a Reuters report. The debate over the need for German market segmentation has affected cross-border infrastructure projects. Sweden, which has split its electricity market into four zones, has stated that it will withhold approval for a new power cable to Germany unless the latter restructures its market. EU member states have a six-month window to deliberate on ENTSO-E's findings, after which the European Commission may propose amendments to the bidding zones if a consensus is not reached. Contrary to ENTSO-E's recommendations, Germany's newly formed coalition government has expressed opposition to the market split, fearing it could lead to price hikes in the south, affecting industrial activity. Supporting the government's position, Germany's primary transmission operators – 50hertz, Amprion, TenneT and TransnetBW – have criticised the report for its reliance on outdated data and minimal projected benefits when compared to the overall system costs. They warned that a market division could diminish market liquidity and escalate expenses. In April 2025, Germany's energy grid regulator, the Bundesnetzagentur, proposed a plan that could lead to savings of €1.5bn ($1.71bn) for power customers from 2026 to 2028 by removing payments to small conventional power generation units "Germany advised to split power market to reflect regional cost differences" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
29-04-2025
- Business
- Reuters
Explainer: What's behind the request for Germany to split its power market?
FRANKFURT, April 29 (Reuters) - Germany has been landed with demands to split its 25 year-old single electricity market into up to five price bidding zones by European power grid lobby ENTSO-E, that wants to stop intra-German price differences leaking to neighbouring countries. Here are facts and considerations around the issue as a six-month consultation period started on Monday. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. WHY HAS THE TOPIC COME TO THE FORE? In its Bidding Zone Review, the European network companies' group argues that dividing Germany's huge market area into a number of zones would bring more efficiency and reduce management costs in Germany and outside. A scenario modelled on 2019 conditions showed a five-way zonal split could save up to 339 million euros of grid management costs a year, reduce bottlenecks, and help more renewable power to be transmitted, it said. German grid handling costs ran to 2.8 billion euros ($3.19 billion) in 2024, standing in the way of steering producers' and consumers' behaviour. WHAT ENTSO-E HOPES TO ACHIEVE High renewable generation in Germany's north, while industry demand is concentrated in the south, distorts prices in a single zone over a large geography, say some organisations, economists, northern federal states, and Germany's EU partners such as Sweden, which operates a connecting cable. Northern areas cannot benefit from cheap local power as everyone pays too much when the entire national grid bill is spread around all, they say. Local zones with realistic prices would encourage better participation in battery storage, electric cars and heat pumps. WHY GERMANY IS OPPOSED Germany concedes its network expansion is slow but it has clear targets for building north-south transmission highways to overcome the structural problems. It cannot ditch these now to adopt an entirely new system, say the coalition government, southern states and industries, namely energy, cars and chemicals. Germany's export-geared industries are struggling with recession and, if burdened with even higher costs in the south, might decamp, withdraw employment. Meanwhile, transmission companies (TSOs), under the watch of the energy regulator, are clearly making progress with big new transport lines. POSSIBLE CONSEQUENCES OF AN ESCALATION If the EU Commission, led by German national Ursula von der Leyen, adopted ENTSO-E's stance and pitted itself against Berlin, the row could rattle the bloc's biggest economy and give rise to right-wing and anti-EU sentiments. Or, if Germany persisted in its opposition to a reconfiguration, it could face retaliation at a time when it needs good relations with its EU trade partners. If member states do not agree how to proceed within six months, the Commission has a further six months to decide on a course of action. HOW THE ISSUE COULD BE SILENTLY REMEDIED Germany can hope to maintain its unified price zone if it adheres to a long-term requirement under an EU internal energy market regulation for 70% of its border interconnection capacity being ready for tradable power flows by year-end. TSOs are optimistic they can prove their progress on this target, a bid supported by Germany's power bourse, the European Energy Exchange ( opens new tab. "Then, there would be no reason to break up this large liquidity pool (Germany's status quo)," said EEX chief executive, Peter Reitz, in a call with reporters on Monday.
Euronews
29-04-2025
- Euronews
Spain, Portugal and parts of France hit by massive power outage
ADVERTISEMENT Spain and Portugal experienced a widespread power outage on Monday, leaving millions without electricity in a snap blackout. In Portugal, official sources told domestic media that the outage, which hit around late morning local time, was nationwide, while similar reports emerged from Spain. Madrid's Barajas International Airport and Lisbon's Humberto Delgado were closed after being left without power, and telecommunications have also been affected, with residents across the two countries saying they have no access to mobile networks. Meanwhile, other airports have come to a standstill throughout the Iberian Peninsula, and flights from Brussels and other European cities to Spain and Portugal have been cancelled, leaving hundreds stranded, Euronews has learned. Related What could have caused the major power outage in Spain and Portugal? Experts weigh in Numerous passengers have also been left stranded in the metro systems of the Spanish and Portuguese capitals, with trains stuck in tunnels between stations, Euronews Portugal reports. The blackout has affected hospitals, too, including Madrid's La Paz and multiple medical facilities in Portugal, with some being forced to cancel surgeries. A Metro station in Madrid remains shut down during a blackout on Monday, 28 April 2025 Euronews/Clea Skopeliti A source at a hospital in Setúbal told Euronews that the facility has a backup generator capable of operating for 8-12 hours in the hospital's critical departments. However, there is currently no water supply. The hospital has still not received any information on when the power supply will be back or how to proceed, and it has also lost its internet access. Citizens have been asked not to dial 112 unless in a genuine emergency to avoid overloading the lines. The Spanish government has convened an emergency session at Moncloa and is monitoring the situation as it develops, and Prime Minister Pedro Sánchez has visited the control centre of Red Electrica, the company that operates Spain's electric grid, according to our colleagues at Euronews Spain. The European Commission issued a statement on Monday afternoon, saying it was "in contact with the national authorities of Spain and Portugal as well as (European electricity transmission system operators' network) ENTSO-E to understand the underlying cause and the impact of the situation." "As per EU legislation in place ... there are protocols in place to restore the functioning of the system," the statement read. "Following the massive blackout, we stand ready to support Spain and Portugal in putting their systems back on track," European Commissioner for Energy and Housing Dan Jørgensen said in a post on X. "Power is already back in some regions. Network operators and ENTSO-E (are) doing everything possible on the ground. Solidarity and unity are key for our Energy Union.' 'Nobody was expecting a thing like this' Juan Muñoz, the owner of a butcher's shop in the centre of Madrid, said the situation was uncertain for his products. Like everyone else, he had been caught off guard by the blackout: 'I was very surprised, as I imagine everyone else was – nobody was expecting a thing like this.' Muñoz said he had taken what action he could but was concerned about how long the outage would last. 'We've taken all the meat and put it in the walk-in fridge, and have kept it shut to retain the temperature for as long as possible,' he said. 'We've no idea how long this will last. Listening to the radio, they say they don't know. I've heard that in some areas, some power is starting to return. But we'll see – if it's a question of several hours, the chicken will be destroyed.' ADVERTISEMENT Juan Muñoz in front of his shop that has been closed due to a blackout, in Madrid, 28 April 2025 Euronews/Clea Skopeliti Mariana Guzman, an employee at an ice-cream shop and cafe in the city centre, said the business would stand to lose dozens of vats of ice-cream if the power didn't return within the next hour. Standing over the counter, she told Euronews: 'We're just waiting to see what will happen because realistically, if it doesn't return by then, we'll have a big loss – they'll start to melt and once that happens, it's very dangerous to refreeze them. It's already been more than an hour.' 'The street is closed and the businesses are concerned … [because] you could stand to lose a lot.' Gradual restoration in the works Residents of Andorra and parts of France bordering Spain were also reporting being hit by the blackout. Further outages have been reported as far as Belgium, according to the latest information. ADVERTISEMENT The electricity service has since been restored in France after some areas suffered a partial outage, sources from the national grid manager RTE said, as quoted by the Spanish news agency Efe. The sources added that RTE is exploring ways to relocate the electricity to help reconnect Spain. The Basque Country has also had its power restored, according to reports. By Monday afternoon, Red Eléctrica stated that it had begun gradually restoring power in both the north and south of Spain. However, the process of getting everyone back on the grid might take between 6 and ten hours for technical reasons, it added. According to Red Eléctrica, electricity consumption across Spain dropped by 50% at around 12:30 pm on Monday, indicating the widespread scale of what the company said was an "exceptional and completely extraordinary" blackout. ADVERTISEMENT The cause is yet unclear. Endesa and Iberdrola, Spain's two major electricity providers, continue to investigate the incident. Domestic media said in the immediate aftermath of the blackout that it might be related to issues with the European electric grid, which affected national grids in the Iberian Peninsula. A fire in the south-west of France, on the Alaric mountain, which damaged a high-voltage power line between Perpignan and eastern Narbonne, has also been identified as a possible cause, Portugal's national electric company REN said. Reports on a rare atmospheric phenomenon which have also been circulating have been denied by REN to private channel SIC. ADVERTISEMENT Meanwhile, the Spanish National Intelligence Centre has not ruled out the possibility of a cyberattack, while the Portuguese government has also suggested the same. However, "no evidence has yet been identified that points to a cyberattack" to justify the blackout, Portugal's National Cybersecurity Centre (CNCS) said in a statement on Monday. "Such a widespread grid failure is extremely unusual and could be caused by a number of things: there could be a physical fault in the grid which brings down power, a coordinated cyber attack could be behind it, or a dramatic imbalance between demand and supply has tipped the grid system over the edge," Taco Engelaar, managing director at energy infrastructure experts Neara told Euronews. "If it's a system fault, then the interconnectivity between different regional and national grids could be leading to the large footprint of outages we're seeing today," he added. ADVERTISEMENT "The same goes for a cyber attack - lots of these systems are connected and share assets - taking down one could take down many."
Daily Mail
29-04-2025
- Climate
- Daily Mail
From Spain's heavy reliance on solar and wind to ‘anomalous oscillations' in power lines, scientists reveal what's to blame for the Iberian Peninsula's cascading power outage
As widespread power outages cause chaos in Spain and Portugal, authorities are scrambling to determine what caused one of Europe's biggest blackout. Described as 'catastrophically bad', the outage grounded flights, sent roads into gridlock as traffic lights failed, and left entire cities without power or telecommunications. Now, scientists reveal the true reason for the massive outage - and why the chaos is so widespread. Experts say the blackout is likely due to a combination of factors including Spain 's reliance on green energy and 'anomalous oscillations' in power lines. While authorities say that a cyberattack is not likely, the possibility of malicious interference has not yet been ruled out. According to the Portuguese electricity operator Redes Energéticas Nacionais (REN), the blackouts began at 11:33 am BST on Monday. Almost all of Spain and Portugal were affected as the Iberian Peninsula's power grid was cut off from the wider European grid (ENTSO-E). As of Tuesday morning, Spain's biggest electricity operator, REE, says 92 per cent of Spain has had power restored while 80 per cent of customers in Portugal have electricity. 'RARE ATMOSPHERIC PHENOMENON' On Monday, REN, Portugal's grid operator, said the widespread blackouts over Spain and Portugal had been caused by a 'rare atmospheric phenomenon'. Extreme temperature variations along the grid caused 'anomalous oscillations' in high-voltage power lines, beginning in Spain and spreading into Portugal. In a statement, REN said: 'Due to extreme temperature variations in the interior of Spain, there were anomalous oscillations in the very high voltage lines.' However, even the experts say it isn't entirely clear what this might actually mean, and REN hasn't given any extra details. Professor Victor Becerra, Professor of Power Systems Engineering at the University of Portsmouth suggests that it could be related to the extreme wind created by temperature variations. Professor Becerra says these high winds could have caused the cables to shake in an effect known as 'galloping'. This could have led to 'potential mechanical failure, such as snapped conductors, short circuits, or damage to key infrastructure like transmission towers.' Others have argued that, in extremely high temperatures, power cables can interact with induced electrical charges in the atmosphere - triggering vibrations. Professor Chenghong Gu, an electrical engineering expert at the University of Bath, said: 'This vibration can cause fatigue of conductors and in very extreme cases, failures of conductors.' However, most of the scientific literature on the effects of temperature variations suggests that problems are likely to be caused by an imbalanced drain on the grid. When one area is significantly hotter than another, its power demand is much greater as people use air conditioning to cool their homes. This causes the voltage and frequency of some parts of the grid to get out of sync with the rest of the grid. The differences between the different sections can lead to irregular or excessive power flow to some areas, damaging equipment and triggering widespread power failures. In reality, the source of the cascading failure might have been a combination of different factors. Professor David Brayshaw, Professor of Climate Science and Energy Meteorology at the University of Reading, says: '[Power systems] must balance supply and demand almost instantaneously, and generators need to stay precisely in sync. 'If something on the network - a generator, a power line, or even a large electricity user - suddenly disappears, it creates a supply-demand imbalance, and the system frequency starts to shift. 'If that shift becomes too large, other components can trip offline, creating a snowball effect that worsens the imbalance and can trigger a major blackout - sometimes within seconds.' RELIANCE ON SOLAR AND WIND The bigger question is why a localised fault was able to trigger such widespread disruption and cause one of Europe's largest-ever blackouts. Some have suggested that an extreme reliance on renewable energy sources including solar and wind may be responsible for the scale of the chaos. Spain is uniquely dependent on renewable sources of power and has transitioned to a green network with exceptional speed. Just two decades ago, 80 per cent of the country's power came from fossil fuels such as coal and gas while renewables made up just five per cent. But pandemonium struck at lunchtime yesterday when solar power and wind were together making up more than 80 per cent of electricity generation. Traditional forms of power generation, including green options like nuclear or hydroelectric power, use spinning parts which build up 'inertia' as they move. When there are changes to demand on the grid, these spinning parts can speed up or slow down to help keep the power frequency consistent. This essentially acts like suspension for the power grid, helping it to absorb shocks from changes like sudden temperature variations. Since solar panels and wind turbines don't generate inertia, a grid heavy in these sources is more vulnerable to rapid changes. Because Spain has very little power storage and lots of renewables, some experts believe a cascading issue was more likely to occur. Kathryn Porter, an independent energy analyst, told The Telegraph: 'In a low-inertia environment the frequency can change much faster. 'If you have had a significant grid fault in one area, or a cyber-attack, or whatever it may be, the grid operators therefore have less time to react.' CYBER ATTACK As the chaos spread, suspicion immediately turned to a cyberattack as a possible source of the disruption, while cannot be ruled out. Steve Sandford, partner at cybersecurity firm CyXcel, told MailOnline: 'While the exact cause of the outage is still under investigation, there are several factors that suggest that the blackouts could be caused by a cyber-related incident. 'The sudden and dramatic drop in electricity demand, the widespread impact on critical infrastructure, and the disruption extending to parts of southern France and Andorra suggest a coordinated cyber-related incident.' Mr Sandford adds: 'Airports, metro systems, telecommunications networks, and traffic lights were all affected, which aligns with typical critical infrastructure targets.' Although attacks on national infrastructure are rare, this would not be the first time that a nation's electricity grid has been disrupted by a digital attack. Jake Moore, global cybersecurity advisor at ESET, told MailOnline: 'Power grids are tightly secured but all systems naturally have their vulnerabilities. 'Outdated, legacy computers still feature in our critical national infrastructure and even in our banks which can often become an interesting target.' In 2015, computers in the Ukrainian energy grid became infected by a malware called BlackEnergy which had been specifically designed to target industrial systems. Once inside the network, the virus allowed hackers to remotely operate circuit breakers and erase key files on the target systems, rendering them inoperable. While BlackEnergy is still causing issues for many in Western Ukraine, the initial attacks left approximately 225,000 people without power. However, if cybercriminals truly were behind the attack, Spain and Portugal's blackouts would be on a far grander scale. Currently, experts and national authorities say there is no evidence that a cyberattack has taken place, but malicious interference is not being ruled out. Adam Pilton, cybersecurity advisor at Heimdal Security and former cybercrime Detective Sergeant with Dorset Police, told MailOnline: 'The department of national security has said that it is still too early to know what caused the power outage and nothing is ruled out. 'It was only last month that we heard that a Chinese threat actor Volt Typhoon had hacked into a small public power utility in Massachusetts and then rather worryingly, the attackers sat there unnoticed for 300 days effectively spying on the power suppliers' daily operations.' Yet most experts, including Mr Pilton, currently believe that a cyberattack is not likely. The European Council president, António Costa, who was Portugal's prime minister from 2015 to 2024, said 'there is no evidence that it was a cyber-attack'. Likewise, European Commission vice-president Teresa Ribera told Spain's Radio 5 that there was no evidence of criminals having caused the outage. James Bore, managing director of cyber technology firm Bores Group, told MailOnline: 'I can state, with 90 per cent certainty that it wasn't a cyberattack.' Mr Bore explains that the attack was 'too poorly timed' and included 'no real sign of any way to profit' - which makes a criminal attack unlikely. Likewise, an attack on this scale would almost certainly require the resources and expertise of a nation-state or at least a nation-state-backed threat group - which is also extremely unlikely. Mr Bore says: 'The only places we've seen nation-state cyberattacks are as a support tactic for kinetic warfare, such as in Ukraine. 'With the capabilities nation-states have and the potential damage that could be done in retaliation, there's a reluctance to push conflicts into the cyber sphere where it comes to critical national infrastructure.' How extreme weather event could cause Spain blackouts REN, Portugal's grid operator says that the widespread blackouts over Spain and Portugal have been caused by a 'rare atmospheric phenomenon'. The operator says that extreme temperature variations along the grid had led to 'anomalous oscillations' in very high-voltage power lines. This effect, known as 'induced atmospheric variation' leads to power oscillations throughout the grid. This causes the voltage and frequency of some parts of the grid to get out of sync with the rest of the grid. The differences between the different sections can lead to irregular or excessive power flow to some areas, damaging equipment and triggering widespread power failures. According to REN, these oscillations lead to 'successive disturbances across the interconnected European network' which caused today's blackouts. Temperature differences lead to oscillations in the grid, primarily due to the sudden imbalance of electricity demand. When one area on the grid is exceptionally hot, the demand for electricity increases as people turn on air conditioning units to cool their homes.
