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(Bloomberg) -- The UK's grid operator issued an electricity market notice warning that there isn't enough of a buffer between predicted supply and demand.The notice period begins at 4:30 p.m. Monday, when the buffer drops below the threshold set out in capacity market rules, according to the National Energy System Operator's website.Wind generation is forecast to fall below 3 gigawatts, according to Bloomberg's model.©2024 Bloomberg L.P.By Rachel MorisonReported by Author [Extracted from the article]

South Africa has achieved 200 consecutive days of uninterrupted electricity supply since March 26, thanks to an operational recovery plan implemented by state power utility Eskom Holdings SOC Ltd. This milestone is seen as a significant step towards ensuring energy security and attracting investment to the country. Additionally, Transnet SOC Ltd. has improved truck turnaround times by 24% at the Durban Container Terminal Pier 2, and there are plans for a liquefied natural gas terminal at Richards Bay to help South Africa avoid a shortage of the fuel. [Extracted from the article]

The remnants of Hurricane Kirk are causing high wind generation in Europe, with wind levels reaching their peak on Sunday. Germany is experiencing winds of up to 65 kilometers per hour in some areas, and more extreme conditions are expected throughout the weekend. As a result, power prices in Germany are trading at their lowest level since early July. Negative prices are common on windy days in European markets like Germany, and the blustery conditions are coinciding with cooling temperatures and increased heating demand in Europe. [Extracted from the article]

The remnants of Hurricane Kirk are causing high wind generation in Europe, with wind levels reaching their peak on Sunday. Germany is experiencing winds of up to 65 kilometers per hour in some areas, and more extreme conditions are expected throughout the weekend. As a result, power prices in Germany have dropped to their lowest level since early July. Negative prices are common on windy days in European markets like Germany, and this trend is expected to continue as wind power plays a larger role in the winter. The blustery conditions also coincide with cooling temperatures in Europe, leading to increased heating demand. [Extracted from the article]

According to a report by BloombergNEF, delays in restarting nuclear reactors and a slowdown in solar installations are causing Japan's power supply to tighten, leading to an increase in electricity prices next year. The report predicts that monthly prices will peak at around 16 yen ($0.11) per kilowatt hour in January. The restart of nuclear reactors is a major uncertainty in Japan's power market, and each month of delay requires additional liquefied natural gas shipments. The government has been working to restart reactors to reduce fossil fuel imports, but strict regulations and local opposition have hindered progress. BNEF also revised down its power capacity outlook and expects overall consumption to slightly increase due to rising demand from data centers and semiconductor factories. [Extracted from the article]

The increase in solar capacity in Europe is expected to meet most of the growth in electricity demand during the winter months. Power consumption from October to March is projected to rise by 2.2%, with new solar generation supplying up to 20 terawatt-hours. The expansion of solar power, particularly in Germany, has disrupted traditional energy economics in Europe, as it is cheaper and has a more favorable regulatory framework compared to nuclear and fossil-fuel generation. With renewable capacity outpacing consumption, the European power market is well-supplied for the peak demand season. Different weather scenarios could impact prices, with a colder winter potentially leading to a 14% increase in prices in Germany. [Extracted from the article]

Gas-fired power plants in the UK are running at their lowest levels since 2017 due to an influx of wind, solar, and imported power from Norway and France. Even during the most profitable hours, less than half of the capacity of combined cycle gas turbines (CCGT) were online in 2024. This poses a challenge for grid operators in determining how to compensate gas plants for their role in providing power when renewable output is low. Similarly, in Germany, gas plants are unprofitable throughout the year, despite the country's goal of obtaining 80% of its electricity from green sources by 2030. Germany plans to phase out coal and expand gas power plants, with a capacity market expected to be introduced by 2028 to subsidize this expansion. [Extracted from the article]

European natural gas prices have dropped as milder temperatures replace a recent cold snap, allowing fuel inventories to continue building up while demand remains low. The continent has ample fuel supplies heading into winter, with liquefied natural gas imports increasing and inventories full from Germany to Italy. Concerns about industrial demand in Europe and its trade partners, as well as weak industrial activity and renewable output, have also contributed to the decline in gas prices. However, the development of weather over the winter remains a potential risk. [Extracted from the article]

European natural gas prices have dropped due to milder temperatures following a recent cold snap. This has allowed fuel inventories to continue building up while demand remains low. The continent has ample fuel supplies heading into winter, with liquefied natural gas imports increasing and inventories full. Concerns about industrial demand from Europe and its trade partners, as well as slowing industrial output in China, are also keeping global gas prices low. The Dutch front-month futures, Europe's gas benchmark, have slumped, and German year-ahead power prices have reached their lowest point since April. However, the development of winter weather remains a potential upside risk for the market. [Extracted from the article]

YTL Power International Bhd. shares have fallen as Malaysia's Anti-Corruption Commission investigates the company's unit, YTL Communications, over a government project to install high-speed internet in Malaysian schools over a decade ago. YTL Power stated that YTL Communications is cooperating fully with the anti-graft agency. The company won the project through an open tender in 2011 and was selected for being the most technically compliant and cost-effective bid. YTL Power is a utility firm with power generation assets in Singapore and operates Wessex Water in the UK. [Extracted from the article]

Electricite de France (EDF) has increased its domestic nuclear production forecast for 2024, expecting output to be within a range of 340 to 360 terawatt hours. This increase is due to improved maintenance performance and the absence of major weather events. EDF's nuclear fleet has been reconnected to the grid ahead of schedule, helping to keep wholesale prices stable. The company has also received approval to start up the Flamanville 3 plant, although the first grid connection will be delayed until the end of autumn due to recent issues. The commissioning of the Flamanville unit is a relief for EDF after facing construction problems and delays. [Extracted from the article]

Electricite de France (EDF) has raised its French nuclear production forecast for 2024, citing improved maintenance performance and the absence of major weather events during the summer. This increase in nuclear output is helping to keep wholesale prices stable and reverse bill increases during the region's energy crisis. However, the connection of a new reactor in Flamanville to the grid has been delayed until the end of autumn. The commissioning of this reactor will be a relief for EDF, as it has faced construction problems and doubts about its ability to build reactors on schedule. [Extracted from the article]

Indian shares are on track to achieve a historic feat as the NSE Nifty 50 Index is poised to record gains for the 12th consecutive day. The index has been reaching new highs recently, driven by local funds and retail investors, as well as a global market rebound fueled by the possibility of lower interest rates. With strong domestic inflows and expectations of improved earnings growth, Indian equities are expected to continue their upward trend. Local institutions have invested over $6 billion in shares this month, while foreign outflows have amounted to $518 million. [Extracted from the article]

The UK's antitrust regulator, the Competition and Markets Authority (CMA), has closed its investigation into Google's Play Store and Apple's App Store. This decision comes as the UK prepares to implement new digital markets laws aimed at curbing the dominance of major tech companies. The CMA will reconsider the case once the new laws are in place, which will grant the authority broader powers to impose significant fines for rule violations. The new regulations will allow the CMA to investigate specific activities of companies designated as having "strategic market status." The CMA has not yet determined which digital activities it will prioritize under the new framework, but app stores are expected to be included. Companies falling under the scope of the regulations must have significant digital market power in the UK, strategic importance, and meet certain revenue thresholds. The CMA's goal is to ensure a fair and competitive app ecosystem that benefits UK consumers. [Extracted from the article]

The South African government and Business for South Africa (B4SA) are working together to address the country's infrastructure and governance problems. B4SA leaders met with President Cyril Ramaphosa and pledged to address issues in areas such as energy, logistics, crime, and corruption. The energy sector has already seen improvements, with power cuts being significantly reduced. The next focus will be on transmission of power, reforming the electricity market, and addressing issues at municipalities. B4SA has received support from over 130 CEOs and aims to achieve 3-5% GDP growth by 2030. [Extracted from the article]

The New Zealand government is considering intervening in the country's electricity market to address high wholesale power prices. Associate Energy Minister Shane Jones expressed concerns about the structural makeup of the market and accused energy generators of "profiteering." The government is exploring short-term measures to address any deeper structural failings in the rules and regulations governing the energy market. The government holds majority stakes in three of the four major energy generators. [Extracted from the article]

Cathie Wood, the founder of Ark Investment Management, purchased shares of tech companies such as Amazon, Advanced Micro Devices, and Roku during a market downturn. This came as her flagship fund, ARK Innovation ETF, reached its lowest point of the year. The purchases were made in response to concerns about the economy following weaker-than-expected US employment data. Despite her success in 2020, Wood has faced challenges in recent years, with her funds experiencing significant outflows in 2021 and 2022. [Extracted from the article]

Siemens Energy AG has raised its cash flow outlook due to increased demand for grid technologies and gas services. The company now expects pre-tax cash flow of up to €1.5 billion in fiscal 2024. Orders for gas services have more than doubled, leading to a record backlog of contracts. Despite issues with faulty wind turbines in the past, Siemens Energy is seeking to rebound and has seen growth in its grid and gas turbine businesses. The company plans to invest in its grid unit and create new jobs in the division. [Extracted from the article]

South Africa's plan to expand its renewable power capacity is in jeopardy as the regulator has rejected a bid by generators to access the electricity grid, according to the South African Wind Energy Association. This rejection could potentially derail the Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme. The lack of grid capacity may also put at risk 66 gigawatts of wind and solar plants that are currently in development, potentially reversing progress made in addressing the country's rolling blackouts. The association warns that the grid challenges will continue to undermine the open electricity market envisioned by the Electricity Regulation Act Amendment Bill. [Extracted from the article]

European electricity networks have been advised to improve their communications after a technical glitch caused German electricity prices to spike by 550% last month. The incident occurred on June 25 when the EPEX Spot exchange experienced a problem in its trading system, leading to pricing turmoil in day-ahead power markets. The Market Coupling Steering Committee has recommended that operators of electricity markets and high-voltage power lines review their procedures to enhance communication during incidents and ensure the successful application of fallback measures in the future. The glitch resulted in over €300 million ($325 million) of losses in German power alone and impacted industries such as steel manufacturing. The committee, composed of market operators and transmission system operators, has already made improvements to regional procedures to enhance communication. [Extracted from the article]

European electricity networks have been advised to improve their communications after a technical glitch caused German electricity prices to spike by 550% last month. The incident occurred on June 25 when the EPEX Spot exchange experienced a problem in its trading system, leading to pricing turmoil in day-ahead power markets. The Market Coupling Steering Committee has recommended that operators of electricity markets and high-voltage power lines review their procedures to enhance communication during incidents and ensure the successful application of fallback measures in the future. The glitch resulted in over €300 million ($325 million) of losses in German power alone and impacted industries such as steel manufacturing. The committee, composed of market operators and transmission system operators, has already made improvements to regional procedures to enhance communication. [Extracted from the article]

Hedge funds such as Balyasny Asset Management and Squarepoint Capital are hiring traders and analysts who specialize in natural gas and power due to increased volatility in those markets. Balyasny has hired Joe Constantinou, a former power trader at Bank of America, while Squarepoint has hired Ben Chu as a quantitative researcher focused on gas. BlueCrest Capital has also tapped Chase Allen, who previously led North American trading at Trailstone Group. Hedge funds and commodity merchants are entering power and natural gas markets due to factors such as renewable energy output, unstable grids, and turbulent weather. While volatility can lead to profits, it can also result in losses for firms. Other hedge funds, such as Brevan Howard Asset Management and Citadel, have also expanded their commodities teams. [Extracted from the article]

Poland is planning to revamp its energy market to meet the increasing demand for clean power capacity from global technology giants like Alphabet and Microsoft. The country's grid operator, PSE, aims to provide stable and reliable delivery of clean energy to attract customers who want uninterrupted electricity for their data centers. Microsoft and Google have already announced plans to develop cloud computing services and data centers in Poland. Poland is also considering a transition to weather-dependent wind and solar power as part of its energy policy. The country's largest steelworks, ArcelorMittal SA, is also seeking to replace coking coal with green energy. Poland is urging the EU to introduce a new capacity market that guarantees income for power plants while transitioning to cleaner fuel. The country is also planning to build its first nuclear plant to meet the surging demand for stable energy supply. [Extracted from the article]

Epex Spot, Europe's largest power exchange, has admitted that an IT glitch caused German electricity prices to surge while prices in neighboring France plummeted. Epex Spot CEO Ralph Danielski expressed regret for the incident and acknowledged that it may have shaken trust and confidence in the power market. In response, Danielski plans to establish a task force to implement improvements. The glitch occurred on June 25 and resulted in the widest price disparity on record between Germany and France. [Extracted from the article]

Marine Le Pen's energy plans, proposed by the National Rally party, have raised concerns among political and business leaders in France and neighboring countries. The party's proposals include policies that could disrupt power flows across national borders, weaken Electricite de France SA, and make the region's energy supplies less secure. The National Rally wants to take back control of electricity prices in France by ending market-based cross-border transactions and replacing them with bilateral or multilateral contracts with neighboring countries. However, there are doubts about the plan's legality within European Union rules, and experts warn that re-introducing energy barriers within Europe could lead to supply problems and higher prices. [Extracted from the article]

Trafigura Group, a trading house, has purchased a gas-fired power plant in Texas in partnership with Frontier Group of Companies. This marks Trafigura's first major investment in power generation and reflects a trend of trading firms investing in volatile electricity markets. The power plant, located near Dallas, will support Trafigura's gas and power business in the US and provide a flexible energy source for the growing Texas market. The aging power grid in Texas has faced challenges due to increased demand and the growth of renewables, creating opportunities for traders in the market. [Extracted from the article]

Trafigura Group, a trading house, has purchased a gas-fired power plant in Texas in partnership with Frontier Group of Companies. The acquisition of the Mountain Creek power plant will support Trafigura's gas and power business in the US and provide a flexible energy source to the growing Texas market. The terms of the deal were not disclosed. The 808 megawatt power plant is located near Dallas. [Extracted from the article]

Traders in the German power market are expressing frustration over losses incurred due to an IT glitch that caused the day-ahead power price to rise significantly. The glitch has raised concerns about the reliability of the market and its impact on industries, with a steel manufacturer temporarily shutting down its plant to limit losses. Epex Spot SE, the exchange overseeing the market, has initiated an investigation, but traders are dissatisfied with the lack of explanation provided. The glitch affected the algorithm that matches supply and demand across borders, leading to a spike in prices in Germany and a drop in prices in France. [Extracted from the article]

Traders in the German power market are expressing frustration over losses incurred due to an IT glitch that caused the day-ahead power price to rise significantly. The glitch has shaken trust in the market and had an impact on industries, with a steel manufacturer temporarily shutting down its plant to limit losses. Epex Spot, the largest exchange for short-term power trading in Europe, has stated that backup procedures were successfully executed and an investigation is underway. Traders have criticized the lack of explanation provided by Epex Spot regarding the incident. [Extracted from the article]

An IT glitch on Europe's largest power exchange caused the German power price to reach its highest level since August 2022. This glitch resulted in several countries, including France, Germany, Austria, Belgium, the Netherlands, and Poland, becoming disconnected. As a result, the day-ahead power price in Germany cleared at €492.04 per megawatt-hour, while in France, it dropped to €2.96, creating the largest spread on record between the two countries. This incident disrupted the market coupling process, which matches supply and demand across borders, and impacted the use of low-cost wind or solar energy in the region. [Extracted from the article]

Engie SA CEO, Catherine MacGregor, has warned that if France were to exit the European Union's single energy market, it would face the risk of higher power prices and potential blackouts. In an opinion piece, MacGregor emphasized the benefits of the EU's energy market, which has allowed France to access supplies from other countries during times of low domestic production. The issue of the EU's power market has gained attention in French politics, particularly with the far-right National Rally party advocating for a re-introduction of French pricing and an exit from the European gas market. [Extracted from the article]

The S&P 500 reached a new high as big tech companies led a rally in US stocks, offsetting concerns about weak economic data. The Nasdaq 100 is on track for its eighth consecutive day of gains, the longest winning streak since November. However, fewer stocks are participating in the rally, with a third of S&P 500 constituents hitting a one-month low. The 10 largest stocks in the index have seen gains, while the rest have experienced losses. Traders are also betting on the Bank of England cutting interest rates in August. [Extracted from the article]

The Nasdaq 100 has experienced its eighth consecutive day of gains, driven by a rally in big tech companies. The S&P 500 is also approaching another all-time high. However, concerns about weak economic data, such as little change in initial jobless claims and a slump in new home construction, could impact corporate profits. While the overall market is performing well, fewer stocks are participating in the rally, raising questions about its sustainability. Additionally, there are expectations of interest rate cuts by the Bank of England and the Swiss National Bank. [Extracted from the article]

The S&P 500 reached a new high as big tech companies led a rally in stocks, despite concerns about weak economic data. The Nasdaq 100 is on track for its eighth consecutive day of gains, the longest winning streak since November. Dell Technologies announced plans to build a "Dell AI factory" for Elon Musk's startup xAI, and Treasuries retreated after nearly erasing this year's losses. However, while the S&P 500 continues to rise, fewer stocks are participating in the rally, raising concerns about market breadth. In addition, traders are betting on a Bank of England interest rate cut in August. [Extracted from the article]

The European Energy Exchange (EEX) is facing an in-depth investigation by the European Union (EU) regarding its plans to acquire Nasdaq Inc.'s European power arm. The EU is concerned that the deal could create a dominant player in the spot market for electricity. EEX has expanded globally in recent years, offering trading in power, emissions, and agricultural commodities. The EU's decision on whether to escalate the probe is expected by June 26. [Extracted from the article]

The European Energy Exchange (EEX) is facing an in-depth investigation by the European Union (EU) regarding its plans to acquire Nasdaq Inc.'s European power arm. The EU is concerned that the deal could create a dominant player in the spot market for electricity. EEX has expanded globally in recent years, offering trading in power, emissions, and agricultural commodities. The EU's decision on whether to escalate the probe is expected by June 26. [Extracted from the article]

India is set to see the largest increase in coal-fired power capacity in almost a decade, as the country seeks to meet growing electricity demand. Despite pursuing clean-power targets, India still relies heavily on coal, which generates about three-quarters of its electricity. The country has added over 100 gigawatts of renewable energy capacity in the past decade, but the lack of affordable energy storage options is hindering further expansion. India plans to add close to 90 gigawatts of coal-fired capacity by 2032. [Extracted from the article]

Chilly Arctic winds have caused temperatures in Europe to drop below levels seen on Christmas Eve, leading to an increase in demand for heating. London, Paris, and Berlin experienced temperatures as low as 5C and 7C, respectively. The colder weather in the UK has coincided with a decrease in wind generation, resulting in higher day-ahead power prices. Power demand in France and Germany has also increased. While power prices have dropped this year, Europe's power markets remain vulnerable to disruptions, especially if the winter starts colder than usual. Temperatures are expected to remain low this week but rise significantly in the second half of June. [Extracted from the article]

Global tech shares, including Nvidia, are experiencing a surge in value, with Nvidia becoming the first computer chip company to surpass $3 trillion in market capitalization. This optimism in the tech sector is accompanied by growing confidence in monetary policy easing, with expectations of a rate cut from the European Central Bank and the Bank of Canada. However, bond yields in Europe have ticked higher ahead of the ECB meeting, and caution remains regarding further rate cuts. In addition to tech stocks, Lululemon Athletica Inc. has seen a rise in value after posting strong earnings. [Extracted from the article]

Global tech shares, including Nvidia, are experiencing a surge in value, with Nvidia becoming the first computer chip company to surpass $3 trillion in market capitalization. This optimism in the tech sector is accompanied by growing confidence in monetary policy easing, as the European Central Bank is expected to deliver the first rate cut since 2019. However, bond yields in Europe have ticked higher ahead of the ECB meeting, and traders are waiting for more guidance from President Christine Lagarde. Other stock movements include Lululemon Athletica Inc. rising after posting better-than-expected earnings, and Julius Baer Group Ltd dropping on speculation of a takeover. [Extracted from the article]

Global tech shares, including Nvidia, are experiencing a surge in value due to expectations of interest rate cuts and the ongoing excitement surrounding artificial intelligence. European stocks reached a new all-time high ahead of an anticipated rate cut by the European Central Bank. Other tech companies, such as Micron Technology and Advanced Micro Devices, also saw increases in value. This optimism in the tech sector aligns with growing investor confidence in central banks' ability to ease monetary policy. [Extracted from the article]

Thailand is planning to give its market regulator, the Security and Exchange Commission (SEC), the power to investigate criminal activities in the country's securities markets. This move comes after a series of corporate scandals that have eroded investor confidence. The proposed legal changes will allow the SEC to probe suspected illegal conduct, speeding up the process of imposing charges and punishment against violators. The Thai authorities are looking to strengthen rules and controls on listed companies and stock trading to restore investor confidence after significant market value was lost in 2023. [Extracted from the article]

Thailand is planning to give its market regulator, the Security and Exchange Commission (SEC), the power to investigate criminal activities in the country's securities markets. This move comes after a series of corporate scandals that have eroded investor confidence. The proposed legal changes will allow the SEC to probe suspected illegal conduct, speeding up the process of imposing charges and punishment against violators. The Thai authorities are aiming to strengthen rules and controls on listed companies and stock trading to restore investor confidence. [Extracted from the article]

Iceland is set to establish its first organized power market, which will increase transparency in electricity rates. Nord Pool ASA, in collaboration with local company Elma, will launch a day-ahead contract by late 2024 or early 2025, with same-day trading to follow. The market will provide a centralized platform for the secure and transparent exchange of electricity in Iceland, benefiting investors and meeting the growing demand from industries such as data centers and food production. Iceland is the world's largest energy producer per capita, but its grid is not connected to any other country, with 80% of its energy sold to energy-intensive industries. [Extracted from the article]

American Electric Power Co. (AEP) is requiring data center developers to commit to purchasing at least 90% of the energy they request before AEP builds the necessary equipment. This is in response to the increasing demand for electricity caused by data centers, factories, and the electrification of cars and home heating. AEP's central Ohio region is expected to see a doubling of power demand from data centers by 2030, with five gigawatts of new demand already set to connect to the grid. AEP currently has a queue of 30 gigawatts of additional data center developments requesting connection. [Extracted from the article]

Stocks in the S&P 500 started the week positively, with investors awaiting comments from Federal Reserve speakers for insight into interest rate expectations. The S&P 500 surpassed its 50-day average price, which is considered a significant level for maintaining positive momentum. Investors are increasingly betting on policy easing this year, leading to gains in yields on two-year notes. However, inflation remains a concern, potentially limiting the central bank's actions. The week is light on economic data but heavy on speeches from Fed members, which traders will closely analyze for any hints of rate cuts. Defensive sectors like consumer staples are recommended due to mixed economic data and market volatility. [Extracted from the article]

Stocks in the S&P 500 started the week positively, with investors awaiting comments from Federal Reserve speakers for insight into interest rate expectations. The S&P 500 surpassed its 50-day average price, which some consider a crucial level for maintaining positive momentum. The market is anticipating the Fed's Senior Loan Officer Opinion Survey (SLOOS) to gauge the impact of higher funding costs on bank lending. Investors are cautiously increasing their bets on policy easing, and yields on two-year notes are leading market gains. Despite signs of deceleration in some areas of the US economy, inflation remains a concern, potentially limiting the central bank's actions. [Extracted from the article]

Stocks in the S&P 500 started the week positively, with investors awaiting comments from Federal Reserve speakers for insight into interest rate expectations. The S&P 500 surpassed its 50-day average price, which is considered a significant level for maintaining positive momentum. Investors are cautiously increasing their bets for policy easing this year, and yields on two-year notes are leading market gains. However, inflation remains a concern, potentially limiting the central bank's actions. The week is light on economic data but heavy on speeches from Fed members, which traders will closely analyze for potential rate cut indications. [Extracted from the article]

Trafigura Group, a global trading company, is optimistic about the demand for electricity and is expanding its power trading business. Richard Holtum, Trafigura's global head of gas, power, and renewables, highlighted the power-intensive nature of electrification and technologies like AI. As electricity markets become more open, traders are establishing power desks worldwide. Trafigura has increased its power trading volumes and secured offtake deals with power plants. Holtum believes that as more grids are liberalized, the trading sphere will continue to grow. [Extracted from the article]

Stocks rose after a strong jobs report indicated that the US economy is continuing to grow, despite expectations of higher interest rates. The S&P 500 recovered from losses earlier in the week caused by concerns about the Federal Reserve's plans and geopolitical tensions. The report showed that job growth in March was the highest in nearly a year, and the unemployment rate dropped to 3.8%. Some experts believe that the report may delay the expected rate cuts by the Fed, while others still anticipate a rate cut in June. [Extracted from the article]