Latest News
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The 50Hertz CEO says that grid fees in Germany would cost $6.5 billion annually
The head of grid operator 50Hertz stated on Monday that plans by parties seeking to form Germany's new government to reduce electricity network fees could cost up to 6 billion euros per year. According to an agreement document, the conservatives in Germany and the Social Democrats (SPD), to lower electricity prices, agreed to reduce electricity taxes for all consumers by half and to halve transmission network fees. This was a first step to permanently cap network fees. In a press conference, CEO Stefan Kapferer stated that six billion euros was the amount needed to halve network fees for transmission system operators. He also said it was crucial to reduce the overall costs. "Because on the long-term, it won't be easy to mobilise 6 billion Euros in subsidies each year," he said. The highest electricity prices in Europe are in Germany, due in part to the high grid fees and levies that account for around 50% of total costs. Reporting by Tom Kaeckenhoff and Riham Alkousaa Editing by Miranda Murray
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Britons who live near new pylons will get discounts on their energy bills
The government is trying to get support for the necessary infrastructure to add clean energy sources to the grid. British households who live near the new pylons can expect to receive discounts on their energy bills. The government announced in a Monday statement that residents living within 500 meters of new or upgraded electricity poles may receive a reduction of up to 3,230 pounds over ten years. The government will introduce the Planning and Infrastructure Bill in parliament this week. It is aimed at helping to meet the target of decarbonising country's electricity sector by 2030, through the addition of renewable power capacity. To meet this target, the country will need to significantly increase its transmission network. In the past, expansion was a slow and difficult process as local support for plans has not been strong. The government stated that the discounted bills will help reduce opposition to planning and delays. In a press release, Ed Miliband, energy minister said: "This will be beneficial to the entire country as it ensures we build the clean electricity system we need." The companies that build new pylons or upgrade existing pylons will be required to finance local projects, such as sports clubs and leisure facilities, in the affected communities. According to government figures, the average household energy bill for 2024 will be 2,252 pounds. Of this, 1,143 pounds will be electricity and 1,109 pounds gas. $1 = 0.7739 pounds (Reporting and editing by Sarah Young, Christina Fincher and Sam Tabahriti)
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Greece Reaffirms Commitment to Subsea Power Link to Cyprus
ATHENS, 10 March - Greece reaffirmed its commitment on Monday to build a subsea cable that will link continental Europe with the East Mediterranean. This follows reports that the project had been halted due to financial and geopolitical issues. The Greek power grid operator IPTO has begun construction of the Great Sea Interconnector cable (GSI), which will connect transmission networks in Europe with Cyprus. This project, costing 1.9bn euros (2.12bn dollars), is expected to extend to Israel via the Mediterranean Sea. The dispute between Greece, Turkey and NATO, which has lasted for many years, over the boundaries of their continental shelf in the Mediterranean Sea, has slowed progress. The vessels leased by Nexans for research in the sea waters near the island of Crete, to determine the route of cable, were forced to leave this year earlier than planned after Turkey challenged Greece’s jurisdiction. Cyprus has sought assurances about the viability of the project, which is a cause for unusual disagreements between Greece and Cyprus. The shares of French cable manufacturer Nexans dropped last Thursday, after a Greek paper reported that IPTO had not made a payment for a while. Nexans said that it received substantial payments which allowed it to continue the production of the cable. It also stated that it would honor the contractual obligations. Pavlos Marinakis, a Greek government spokesperson, was asked about the fate the link at a weekly news conference held on Monday. "I reaffirm the commitment of all stakeholders to the successful completion of this infrastructure project, which is of strategic importance." The issue is to be discussed by the Greek, Cypriot, and Israeli Foreign Ministers in Athens this Thursday. (Reporting and editing by Sharon Singleton; Angeliki Koutantou)
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Envoy: US hopes for mineral deal after seeing progress in Ukraine talks
Steve Witkoff, the Middle East envoy for President Donald Trump, said that the U.S. hopes to make significant progress with Ukraine in this week's talks and is hopeful of a signing a deal involving critical minerals. U.S. negotiators are set to meet Ukrainians in Saudi Arabia this week. In an interview with Fox News, Witkoff stated that he believed that the United States would make significant progress in Iraq. Witkoff responded, "I'm really hopeful." When asked if he believed Ukrainian President Volodymyr Zelenskiy would sign a mineral deal in the U.S. this week, Witkoff replied, "I'm really hopeful." All signs are positive. Witkoff stated that security protocols for Ukrainians and territorial questions will be important topics on the table. Witkoff, just before departing for the Middle East to hold talks about Gaza, told Fox News that intelligence sharing would also be discussed during this week's meeting. He said that the U.S. has never stopped providing intelligence to Ukraine for any defensive purposes. (Reporting and editing by Susan Heavey, Paul Simao and Doina Ciacu)
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EU Trade chief: U.S. is not looking for a deal to avoid tariffs
The Trump administration doesn't seem to be engaged in talks to avoid a trade conflict with Europe, said the EU's Trade chief on Monday, just two days before tariffs are set to be imposed by the United States on all imports of steel and aluminum. Maros Sefcovic, European Trade Commissioner, told reporters in Brussels he travelled to Washington to start a dialogue with the goal of avoiding "the unnecessary pain and suffering of measures and countermeasures". Sefcovic stated that the two sides had identified some areas where they could benefit from each other. But in the end one hand can't clap. He continued, "The U.S. government does not appear to be engaged to make a bargain." Sefcovic stated that the European Union is ready for constructive engagement. He also said that tariffs are not a good thing and that partners who have 1.6 trillion euro ($1.7 trillion) in mutual trade should "extremely cautious". "Our doors are now open." "But of course, we will protect European businesses and workers from unjustified duties if the result is not positive," he added. "I know that they are expecting nothing less than what we have done."
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Gold Reserve's'stalking-horse' bid for Citgo's parent shares
Gold Reserve, a Canadian miner, said that its Delaware-based subsidiary, Dalinar Energy has made an offer which could be selected as the opening bid at a court auction for shares of Citgo Petroleum, whose parent company is owned by Venezuela. The federal court in Delaware that is conducting the auction on behalf of Citgo parent PDV Holding is expected to accept the bid as a "stalking horse" bid. This is the minimum or starting offer. Gold Reserve reports that if the court decides to accept rival bids for the sale, the topping-off period begins. The final hearing is scheduled for July. The terms of the bid will remain confidential until the company has reviewed all the offers. Citgo, based in Houston, is the crown jewel among Venezuela's overseas assets. Creditors are seeking compensation from Venezuela for the nationalization wave of late President Hugo Chavez and the failure of President Nicolas Maduro to pay his debts. Last year, the Delaware court found Citgo parent PDV Holding responsible for debt defaults and expropriations. The auction of shares launched in October 2023 is being pursued by 18 creditors who have court and arbitration cases involving Venezuela and the state company PDVSA that total $21.3 billion. However, the first round of bidding last year did not meet the expectations of the creditors.
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Greenland holds its parliamentary elections amid renewed US interest
Greenland is a semi-autonomous Danish territory that will hold parliamentary elections on 11 March. Independence will be a major campaign theme, after U.S. president Donald Trump stated he wanted control over the largest island in the world. Greenland was formally incorporated into the Kingdom of Denmark as a territory in 1953. Copenhagen now controls foreign affairs, defence, and monetary policies. Since 2009, Greenland has been able to hold a referendum to determine its independence. Some locals view the vote as an opportunity to secede. WHAT IS AT STAKE A majority of Greenlanders support political and economic independence. Denmark contributes just under $1 billion to the local economy each year. However, opinions differ about the timing of the transition and its potential impact on living conditions. The island is rich in resources that are largely untapped, including rare earth minerals. Trump considers Greenland to be a strategic location that is the shortest way from Europe to North America for the U.S. missile warning system. What will Election Day look like? The polls will be open from 1100 GMT on 11 March and close at 2220 GMT. There will not be any exit polls. The results are expected between 0100 GMT - 0300 GMT on March 12. Who can vote? Greenland’s Ministry of Internal Affairs reports that out of Greenland’s 57,000 residents, approximately 40,500 citizens are eligible to vote. In the 2021 general election, around 27,000 people voted. Greenland has 31 seats, but 16 are required for a majority. What parties are running? Inuit Ataqatigiit Greenland’s ruling party is the socialist Inuit Ataqatigiit, a left-leaning party led by Prime Minister Mute Edde. They advocate for a politically and economically independent Greenland but have not yet presented a plan. IA is opposed to mining for uranium or other radioactive material due to environmental risks. Aaja Chenitz, the party's representative in Denmark's Folketing and one of Greenland’s two seats, currently holds 11 seats within Greenland’s parliament. IA said that it would not rush to vote for independence after the general elections, citing possible economic and social implications. Siumut Erik Jensen leads Greenland’s largest social-democratic party, Siumut. The Siumut supports a gradual transition from Denmark and suggests a referendum within the next four years. As Greenland gains independence, the party proposes to reduce the annual economic contribution from Denmark of approximately $17.500 per resident. Siumut holds 10 seats currently in the Greenland parliament. Naleraq The largest opposition party is Naleraq (left-wing), led by PeleBroberg. It advocates a rapid transition to independence. Naleraq said that Greenland's becoming a sovereign nation will create new business opportunities. It also wants to expand opportunities in industries like fishing, which is responsible for over 95% of Greenland's exports. It also stated that it wanted to pursue a defense agreement with the U.S., and could choose "free association", where Greenland receives U.S. protection and support in exchange for military rights without becoming a U.S. Territory. You could also explore this option with Denmark or another country. Naleraq has five seats in the parliament. Demokraatit The Social-liberal Demokraatit party, led by Greenland’s Minister of Industry and Raw Minerals Jens Frederik Nielsen envisions an independent Greenland, with a market-based economy. It warns against taking premature action in order to protect the economy and people from a possible decline in living standards. Demokraatit currently has three seats in the parliament. Atassut Atassut is a conservative centre-right party led by Aqqalu Jerimiassen. It advocates unity with Denmark and opposes an unplanned transition to independence. Atassut says that Greenland has not achieved independence yet. The party has two members in the Parliament. Qulleq Qulleq is a new left-wing party led by Karl Ingemann. It advocates rapid independence, and claims that full control over the island's natural resources could ease social and economic hardships among Greenlanders.
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Copper is under pressure due to tariffs and concerns about growth.
Copper prices fell on Monday, as investors focused on the impact of U.S. tariffs on global economic growth and the demand for industrial metals. By 1033 GMT, the benchmark copper price on London Metal Exchange was down by 0.8% to $9,533 per metric tonne. Last week, it reached a four-month peak of $9 739 after U.S. president Donald Trump granted automakers an exemption from 25% tariffs against Canada and Mexico for a month. The relief, however, was only temporary. Copper is now under pressure again from tariffs and trade wars. Edward Meir, Marex consultant, said: "We'd be cautious heading into March because we believe the markets don't pay enough attention to a slowed U.S. economic growth picture. This could more than offset worries about tight supply." This is one of the effects of tariffs. It effectively freezes business activities." China consumes around half of the global copper supply annually. Stocks of copper, which is used in many industries including power and construction, are showing signs of a weaker demand. Shanghai Futures Exchange monitors the market. Stocks are up 220%, or nearly 270,000 tonnes, since the beginning of the year. Shanghai's bond warehouses Since the beginning of January, copper stock levels have increased by nearly 200%. The Yangshan premium is still a concern for traders , suggests stronger Chinese demand. This measure of China's appetite to import copper, at $50 per ton has increased by more than 40% from early March. Stocks in LME registered warehouses Metal prices have fallen as the metal has been shifted to COMEX, in anticipation of U.S. duties on copper imports. More copper is expected to leave LME's warehouses in the next few days, based on the number of cancelled warrants (metal earmarked for deliveries) at over 40% of total stock. The weaker dollar also helped industrial metals. Aluminium fell 0.2%, to $2 699 per ton. Zinc lost 1%, to $2 858. Lead rose 1.1%, to $2 041. Tin gained 0.2%, to $32,595. Nickel advanced 0.3%, to $16,560.
Norway Energy Minister: Domestic subsidies don't disturb Nordic power market
Terje Aasland, the Norwegian Energy Minister, said that the government's plan to offer consumers a fixed-price, subsidised power contract in order to protect them from fluctuations in electricity prices does not distort wholesale power market signals.
The "Norway Price" plan, first introduced at the end January, envisages that the government will guarantee private consumers a fixed price power contract of 0.40 crowns (0.0342 euros) per Kilowatt Hour (kWh).
Aasland presented the finer details of the scheme on Monday, as it was being sent out for consultation. Aasland refuted critics who claimed that the scheme would distort Nordic wholesale electricity markets, eliminate price signals, and reduce incentives to conserve energy.
Aasland, a reporter, said: "We don't make any adjustments to our power market."
He added that the scheme, which is aimed at the end user market, does not affect incentives for power producers to increase capacity or to manage supply and demand on the wholesale market.
Voters are focused on higher energy prices ahead of the September elections.
Norway's domestic energy generation is dominated largely by hydropower. It has some of Europe's lowest electricity prices, but they also increased in the wake the European Energy Crisis in 2022. This fueled voters' concerns over the cost of living.
The majority of Norwegian households have flexible spot power contracts that follow the hourly prices set on the wholesale energy markets and are exposed to price fluctuations.
The government has already implemented a subsidy in 2022 that will reduce 90% of the wholesale electricity prices above 0.75 crowns/kWh.
Norway prices will also apply to second homes and vacation cabins.
According to the consultation document, local grid companies would administer the Norway price. However, consumers will still have a separate contract to sign with an electricity supplier.
(source: Reuters)