Latest news with #energymarket
CNA
5 days ago
- Business
- CNA
Energy Market Authority chairman Richard Lim to step down in September
SINGAPORE: Energy Market Authority (EMA) chairman Richard Lim will step down in September after leading the energy authority's board for five years. Mr Lim will relinquish his appointment as chairman on Sep 30, the Ministry of Trade and Industry (MTI) said on Friday (May 30) in a press release. He will be succeeded by Mrs Tan Ching Yee, former Permanent Secretary (Finance). 'Under Mr Lim's leadership, EMA has undertaken important moves to strengthen Singapore's energy security,' said the ministry. These include the set-up of Meranti Power to develop fast-start power generation and the establishment of the centralised gas procurement framework. 'He has also been instrumental in advancing Singapore's energy transition, such as the deployment of solar energy, the pursuit of low-carbon electricity imports from the region and ongoing studies on the feasibility of other low-carbon technologies such as hydrogen and geothermal energy.' Dr Beh Swan Gin, Permanent Secretary at MTI, expressed the ministry's 'deep appreciation' for Mr Lim's contributions. Mr Lim 'has been instrumental in guiding EMA since April 2020 as chairman', he said. 'I am confident that Ching Yee will build on Richard's contributions and steer EMA to new heights.' NEW CHAIRPERSON Mrs Tan, 60, will be appointed EMA's deputy chairperson from Jun 1 to Sep 30, before assuming the role of chairperson from Oct 1, said MTI. Her appointment in the position ends on Mar 31, 2027. Mrs Tan has held various appointments at MTI, the Ministry of Education, the Ministry of Health and the former Ministry of Information, Communications and the Arts. In 2016, she was concurrently appointed as Permanent Secretary (Finance) and Permanent Secretary (Prime Minister's Office) (Special Duties). During the COVID-19 pandemic, she oversaw critical relief measures for families and businesses through the use of reserves, said MTI. She also represented Singapore as G20 Finance Deputy and Sherpa for nine years, advancing Singapore's international interests at global and regional forums. 'In her various leadership roles, she has consistently emphasised people and leadership development," said the ministry, adding that she nurtured a culture of excellence and teamwork. Mrs Tan, who began her career in public service in 1986, retired from the sector on May 1. She was awarded the Public Administration Medal (Gold) in 2008 and the Meritorious Service Medal in 2018.
RNZ News
15-05-2025
- Business
- RNZ News
Transpower warns of higher blackout risk in winter 2026
The draft Security of Supply Assessment makes sobering reading for power suppliers. Photo: Transpower is warning of higher risks of electricity outages starting in winter 2026. The national grid operator's draft Security of Supply Assessment predicts an elevated risk of shortages will arrive four years earlier than thought as recently as a year ago. It found solar, wind and battery storage isn't coming online fast enough to make up for dwindling supplies in the country's gas fields. The assessment found, if every electricity generation project in the pipeline was built, supply would be much more reliable, but Transpower said there was a risk of some proposed solar, wind and battery projects falling over. Previously, Transpower thought its lower security standard - a measure of the safety margin between expected demand and supply - would be met until 2030. Now, it says that will be breached in 2026, much earlier than expected. "It doesn't mean there will actually be outages, but it does signal an increased risk," said Transpower chief executive James Kilty. "It is telling us things are getting tighter and next year is looking tight." He said companies in the electricity market could challenge the draft assessment, which said, if all potential solar, wind and battery projects in the development pipeline were built, the country would be in a much more secure position, but many projects didn't have consent yet. The main factor behind the changed outlook was worse-than-expected results from gas producers. Not only have yields from the country's gasfields dropped faster than expected, independent experts have also downgraded the size of estimated gas reserves in existing fields since the previous assessment a year ago. Transpower now expects lower demand from industrial users than previously forecast, with more electricity generation projects committed to being built than a year ago. Commercial rooftop solar has also helped alleviate some pressure, but while those factors improved the buffer, they weren't enough, the assessment found. A solar farm. Photo: Supplied / Genesis Energy Transpower says, to get the reliable supply the country needs, more renewable generation projects need to progress from possible to locked-in. "The more speculative part of the supply pipeline... has increased," the assessment says. "However, with so much of the supply pipeline unconsented, there is risk that these projects could be delayed, deferred or dropped." The risk of shortfall out to 2034 can't be met by coal and gas, even at their maximum levels. "Even with the highest plausible energy contribution from thermal [coal and gas], we require a rapid and sustained build of new generation, exceeding the large amount currently consented, to maintain energy margins above the security standards over the full ten-year horizon," the assessment said. Eighty-five percent of planned new generation is solar and wind, with most of the rest battery projects. Batteries can be used to store solar or wind power, and switched on and off to boost supply at stretched times, taking some pressure off the nation's hydro dams. Octopus Energy's Margaret Cooney said the risks could be alleviated before next winter, if the government acted quickly. "What the report's saying is actually, yes, that risk of outages is increasing," she said. "We do have opportunities to take action now that could reduce that, so more batteries more quickly, more demand response - both of those could help solve that situation and avoid the blackouts." "We're not getting enough new generation coming in fast enough to compensate for the fact that we've lost the firmness or certainty you've had with gas. The government really needs to focus on making sure more supply is coming into the market as soon as possible." Cooney said the government could take steps now that would make a difference within a year. One of those was changing the market, so companies could be paid to lower their demand at peak times, helping the country survive the short-term risk of outages. Octopus' UK arm made those payments in the United Kingdom and the company also wants to offer it here . "I'm not talking about shutting down plants for whole seasons, it's literally just to manage the supply imbalance that happens for a few hours," Cooney said. "When you look at markets abroad, they have incentive payments... so in those situations, where you're approaching peak scenarios, they get called on and if they reduce their usage at that time, they get paid. "It's something Fonterra and other major energy users have highlighted they are open to doing, but the current market structure doesn't support it. "There is potential to quickly spin up a solution and examples in other markets we could replicate quite quickly." Cooney said overall productivity need not be impacted. "They could time maintenance over the peak period, but ultimately not impact their own production." The country's biggest electricity user, Rio Tinto, has agreed to reduce its electricity use during tight winters, but in that case, the hiatus impacts production of aluminum. Likewise, the country's biggest gas user, Methanex, has committed to selling its gas to electricity generators this winter, if needed, to shore up dwindling gas supplies during a potentially dry winter for the hydro power lakes. Methanex has agreed to forfeit production of methanol for export for the second year in a row, because it was considered more profitable to onsell its gas supply to the likes of Contact and Genesis Energy. Managing director Stuart McCall told RNZ that its core business remained methanol production and it intended to get back to it. "Recent gas sales to New Zealand's electricity sector reflect targeted support during a period of energy supply stress, not a shift away from our core business," he said. "Our priority remains manufacturing methanol, a key ingredient in everyday products such as mobile phones, pharmaceuticals, construction materials, wind turbines, solar panels and an increasingly important lower-emissions fuel for the global shipping industry." Kilty said the hydro lakes looked a little fuller than feared going into winter 2024, and deals struck with Rio Tinto and Methanex also helped lower the risk of shortages this winter, but the sector needed to respond again to lower the risks in 2026. The draft assessment looks ahead 10 years and forecasts fossil fuel supplies, new power stations, new build of factories and demand sources, and assesses how much buffer there may be in the electricity supply. "We need to keep working hard to bring new electricity to market as soon as possible and make sure existing stations are well-fuelled going into next winter," he said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Zawya
12-05-2025
- Business
- Zawya
Abrupt solar subsidy changes can destabilise power markets
MUSCAT: France's energy regulator has urged governments to avoid abrupt changes to renewable energy support schemes, warning that even the announcement of reform plans can undermine investor trust and create long-term uncertainty in the power sector. Speaking at the 22nd Annual Conference of the Energy Regulators Regional Association (ERRA) held in Muscat last week, Ivan Faucheux, Commissioner at the French Energy Regulatory Commission, said that altering support contracts without careful system-level consideration can destabilise power markets. 'When you say, 'I will change the contract,' that alone sends a negative signal,' Faucheux said during a session on solar capture rates and support mechanisms. 'There is a risk of mistrust towards public support — which is intended to be long-term and stable.' He noted that France's own energy market had revealed inefficiencies in previous subsidy schemes. While some of the corrections benefited producers, Faucheux stressed that greater emphasis should now be placed on encouraging renewables to respond to real-time grid demands, especially through participation in balancing markets and ancillary services. 'The key is to expose renewable energy facilities to system constraints,' he explained. 'If a producer can adapt and shift surplus electricity to the balancing market — instead of relying only on the day-ahead market — that can generate added value for the system.' However, he warned of the consequences of long-term negative electricity prices, which are becoming more common in countries with high renewable penetration. 'Developers are very aware that prolonged periods of negative pricing reduce the capacity to capture market value,' he said. 'This makes it harder to finance new projects.' Faucheux also pointed to a broader technical concern: increasing system instability due to limited storage and the need for real-time balancing. 'We've used much of our available storage. The system now requires continuous adjustments between production and demand, which creates a highly complex and volatile market,' he said. He explained that abnormal pricing is not necessarily a market flaw. 'Markets reflect economic value. When we see very low or negative prices, it's not a failure of the market's design — it's a reflection of how actors behave and whether incentives are aligned,' he said. Rather than launching entirely new frameworks, Faucheux advocated for modifying earlier contracts that distort market dynamics. 'Often, the same developers who built projects five years ago are now planning new ones,' he said. 'Fixing past contracts — even with limited gains — helps maintain investor confidence.' Faucheux noted that the policy approach should be tailored to each country's specific electricity system. 'There's no single solution,' he said. 'Sweden, with its hydropower-based system, faces different challenges from France, which relies on nuclear and gas. Solar and wind also behave differently — wind has inertia, while solar is more variable.' He concluded with a call for practical dialogue and contextual understanding: 'It's not about copying someone else's policy. It's about understanding your own system and deciding whether a solution that worked elsewhere fits your problem. We may face different challenges, but the technical foundation of our systems is the same.' 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Reuters
07-05-2025
- Business
- Reuters
EU warns Romania to remove gas price cap or face legal action
BRUSSELS, May 7 (Reuters) - The European Commission warned Romania on Wednesday to remove its cap on gas prices or potentially face legal action over the policy, which the EU executive branch said violates the bloc's energy market rules. Gas and power bills for Romanian households, small businesses and public institutions have been capped up to certain monthly consumption levels since November 2021, with suppliers compensated for the difference. In a notice published on Wednesday, the European Commission said the policy violates EU rules on the free formation of wholesale gas prices, since Romania's measure obliges firms to sell part of their production at a fixed wholesale price. "Regulated prices at the level of the EU-wide wholesale market distort price signals and effective market functioning," the Commission said. European wholesale gas prices began climbing in 2021 after Russia limited deliveries. Prices soared to record highs the following year when Moscow further slashed supplies after its February 2022 invasion of Ukraine. Romania's government has two months to respond to the EU warning, after which the Commission can refer the case to the EU's top court, if the matter is unresolved. Ahead of its May 18 presidential election run-off, Romania currently has an interim government which cannot issue decrees or introduce policies. Former Prime Minister Marcel Ciolacu resigned on Monday after hard-right eurosceptic George Simion won the first round of the presidential election re-run. The president elected this month will appoint a new prime minister. In February, the former government extended the gas price cap for a year, and prolonged the power price limits until June, to rein in consumers' bills. Romania produces almost all the gas it consumes domestically, through producers OMV Petrom, state-owned Romgaz and offshore producer Black Sea Oil & Gas.
