Top 10 energy stories of the past week

This week, we once again bring you a carefully selected list of the ten most important articles we published on oEnergetice.cz. If you missed any of them, here is a selection of the articles that attracted the most interest from our readers. Best of luck in the new week!

1. Denmark’s offshore wind auction fails completely. Developers don’t want to pay the state

Denmark’s offshore wind auction was a major disappointment, with not a single bid submitted. Analysts say the current design no longer reflects market conditions. Developers were not competing for guaranteed purchase prices for their projects; instead, they were competing to offer the state the most for the right to build them. A similar trend is emerging in auctions in other countries, as investors’ willingness to pay for the right to build a power plant is falling rapidly.

Denmark’s latest offshore wind auction was a major disappointment, with not a single bid submitted. Like several other countries, Denmark has in recent years shifted to a model that offers no support to new offshore wind farms. Instead, developers compete for the rights to build their projects and then pay the state for them.

Read the full article HERE.

2. Temelín generates more electricity than ever since the launch of the hot-water pipeline to České Budějovice

Since the launch last year of the hot-water pipeline supplying heat to České Budějovice, the Temelín nuclear power plant has been generating more electricity than ever before. Cold weather and upgrades are helping boost output. Appropriate operating settings are also important, and the plant has been using artificial intelligence to optimise them for several years. The higher output also coincides with a period of increased energy consumption, Temelín spokesperson Marek Sviták said today.

The recently reconnected second unit is currently operating above 1100 MWe. The first unit, which supplies heat to České Budějovice, Týn nad Vltavou and the power plant as well as generating electricity, is producing more than 1090 MWe per hour.

Read the full article HERE.

3. Söder’s plans for nuclear cooperation with Czechia face criticism in Bavaria

Berlin/Munich, 12 December (ČTK correspondent) – Bavarian Premier Markus Söder’s plans to discuss nuclear energy cooperation with Czech Prime Minister Petr Fiala during a visit to Prague today have come under criticism in Bavaria. The opposition Green Party has called them dangerous. An energy expert quoted by DPA today said the plans Söder has announced are unrealistic.

Before travelling to Czechia, Söder said he wanted to discuss the development of friendly relations between the two countries and cross-border cooperation with Fiala in Prague. He singled out nuclear energy in particular, even speaking of creating a “nuclear alliance”. He said he wanted to secure electricity supplies from Czech nuclear power plants for Bavaria. “We want to discuss the possible use of Czech nuclear energy to ensure better supplies and stabilise the grid – perhaps through a preferential right to purchase electricity,” he said.

Read the full article HERE.

4. Germany’s plan to support new gas-fired power plants derailed by government collapse

Germany’s outgoing government failed to pass a law establishing support for the construction of new gas-fired power plants. The German energy industry association says this critical issue must be included on the new government’s agenda within its first 100 days in office. Plans to launch auctions for the plants in the first half of 2025 are therefore unrealistic.

Chancellor Olaf Scholz’s outgoing government failed to pass a law establishing support for the construction of new gas-fired power plants. They are intended to ensure sufficient capacity in Germany’s electricity system during periods when the sun isn’t shining and the wind isn’t blowing.

Read the full article HERE.

5. Russia secures a firm position in India’s oil market for the next 10 years

Russian state oil company Rosneft and Indian private refiner Reliance have agreed to oil supplies of nearly 500 000 barrels per day. News agency Reuters reported the deal. It is the largest agreement ever between the two countries. India became the biggest importer of Russian oil after the European Union, previously its main buyer, imposed sanctions on Russian oil imports in response to the 2022 invasion of Ukraine.

The 10-year agreement represents 0.5 % of global supply and is worth approximately 13 billion dollars a year at current prices. Imports on this scale will further strengthen energy ties between India and Russia, which is currently facing tough Western sanctions over its invasion of Ukraine and seeking alternative markets for its energy commodities. Russian oil imports already account for more than a third of India’s total imports of energy commodities.

Read the full article HERE.

6. Reuters: Czechia, Slovakia and Austria urge Berlin to scrap gas fee

The Czech Republic, Slovakia and Austria have urged Berlin to pass an amendment this month that would abolish the fee for gas transit through Germany. Reuters reported this today, citing a document it had obtained.

In May, following criticism from the Czech Republic and other countries, Germany promised to abolish the controversial fee from January. It prepared an amendment that the Bundestag approved at first reading in September. However, Germany’s governing coalition collapsed in early November, complicating the amendment’s further passage.

Read the full article HERE.

7. Canada considers financing Poland’s first nuclear power plant

Polish company Polskie Elektrownie Jądrowe (PEJ) has received a letter of intent from Canadian government agency Export Development Canada (EDC). The document envisages possible financial support of up to 2,02 billion Canadian dollars (approx. 34,6 billion CZK) for the construction of Poland’s first nuclear power plant.

The aim of the Canadian government agency EDC’s initiative is to support exports of goods and services from Canadian companies involved in the project. However, the financing is conditional on the successful completion of a detailed due diligence process and loan approval.

Read the full article HERE.

8. Low electricity prices and nuclear support threaten renewables development in Sweden

Wind power in Sweden is struggling to attract investment due to an unusual paradox. Renewable electricity is so abundant in northern Europe that electricity prices and the lack of government incentives are not enough to motivate investors.

Electricity prices in Sweden are at their lowest level since the country’s wind boom began two decades ago, Bloomberg reported. The country relies almost entirely on wind, hydro and nuclear power for its electricity supply, with wind accounting for around a quarter of generation.

Read the full article HERE.

9. Siemens Energy shares have risen faster than Nvidia’s this year despite problems in its wind power division

Siemens Energy has made an impressive comeback. After falling in 2023, the company’s shares have this year risen faster than some of the stock market’s biggest names, including Nvidia, which has benefited from the rise of artificial intelligence. Siemens Energy, still weighed down by troubled subsidiary Siemens Gamesa, has managed to offset losses in its wind power business with other areas of its portfolio.

Siemens Energy shares have risen by more than 300 % this year, increasing its market capitalisation by approximately 30 billion euros and making it the best-performing company in the European Stoxx 600 index. By comparison, Nvidia shares have risen by 187 % since the start of the year.

Read the full article HERE.

10. Prices rise again in Germany’s rooftop solar auction despite record interest

Germany has held its third and final auction this year to support the construction of photovoltaic installations on rooftops and noise barriers. Interest in these auctions is strong, with bid volumes in recent rounds exceeding the auctioned capacity by more than half. Despite a record volume of submitted projects, rooftop solar prices in German auctions have not fallen this year. After an initial drop, they have instead stabilised or even risen slightly.

At the beginning of October, Germany held the last of this year’s three separate auctions for photovoltaic installations outside ground-mounted sites. In addition to rooftop systems, developers of photovoltaic systems on noise barriers can also compete in these auctions. As in the previous round, the regulator offered 258 MW of capacity for tender this time as well.

Read the full article HERE.

Feature

ČEZ has a very good nuclear energy strategy

Last week, a panel discussion on small modular reactors was held at ÚJV a.s. in Řež in cooperation with E15. Panellists from ČEZ, SÚJB, MPO and ÚJV presented a clear strategy for developing small modular reactors in Czechia. Against the backdrop of this seminar, I would like to assess ČEZ’s vision for the development of nuclear energy.

You can watch a recording of the seminar, held on 5 December 2024, on the E15 website. I would like to use it as a backdrop for an overview of ČEZ’s approach and strategy in nuclear energy. ČEZ was represented in the discussion by board member Tomáš Pleskač; SÚJB by Štěpán Kochánek, Director of the Nuclear Safety Section; MPO by Tomáš Ehler, Director of the Nuclear Energy and New Technologies Section; and ÚJV Řež by its CEO, Martin Ruščák. I was encouraged by the panellists’ emphasis on how intensively all their organisations communicate with one another and work to address issues related to the future deployment of small modular reactors in the Czech Republic.

Read the full article HERE.

State support for renewables may be cut as Chamber of Deputies approves restrictions

State-budget support for renewable energy sources may be reduced. The law is likely to introduce more precise, individual assessments of the profitability of solar power plants with capacities above 30 kilowatts that were commissioned in 2009 and 2010. Their operators will, for example, have to inform the market operator by 15 December each year whether they will be entitled to support in the following year. These measures are included in government amendments that the Chamber of Deputies added to an amendment to the Energy Act today. They still need approval from the Senate and the president’s signature. The original purpose of the amendment was primarily to introduce rules for electricity storage and aggregation into legislation.

As it did this year, the state plans to allocate 8,5 billion korun to renewables next year. The opposition ANO movement is not the only one opposing cuts to state support; renewable energy representatives have also warned against them. Some investors are already planning to initiate arbitration proceedings against the state as a result.

Read the full article HERE.

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