Montel Weekly

By pledging to “max out” oil and gas reserves and criticising “loony” green policies, UK prime minister Rishi Sunak appears to be driving a wedge between his government and the opposition Labour party. Listen to a discussion on the country’s faltering climate goals, why offshore wind farms are proving challenging and the fierce debate around urban low-emission zones (Ulez). And, will Britons really be cooking their turkeys on new nuclear power in 2028 (11 years later than originally planned)?Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Antony Froggatt, Senior Research Fellow, Chatham House

Algorithmic trading has rapidly developed in Europe’s short-term power markets with about 85% of transactions now performed by robots. Listen to a discussion on how machines react to challenging market conditions and why it is important to keep them in check via human oversight. We also touch on the issues of data transparency and how some of Europe’s short-term markets may be prone to insider trading.Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Amani Joas, Managing Director, CF Flex Power

A temporary EU ban on Icelandic GOs stirred the guarantees of origin market, raising questions about the credibility of the system amid double counting concerns. Listen to a discussion about why the EU renewables watchdog, the Association of Issuing Bodies (AIB), rattled the GO market and what the utility on the island did to lift the suspension.Host: Snjólfur Richard Sverrisson, Editor-in-Chief, MontelGuest: Tinna Traustadóttir, Executive Vice President Sales and Customer Service, Landsvirkjun

In the final episode before the summer break, we look at policy developments in Brussels and Berlin. As the energy crisis appears to be easing, we discuss the main policy issues of the past six months from the European Commission and Germany. Why is a spat brewing over plans to issue contracts for difference to existing nuclear plants and why is there opposition to Poland’s proposal to subsidise its coal plants? In addition, has Germany managed to secure gas supply ahead of the winter?Host: Richard Sverrisson, Editor-in-Chief, MontelGuests: Siobhan Hall, Correspondent Brussels, Montel;                   Nathan Witkop, Correspondent Germany, Montel.

This week’s episode discusses the hydrological situation in the Nordic and Alpine regions. Reservoir levels in Norway, Sweden and Finland are lower than average, but do not currently pose concerns for winter supply. Listen to a discussion with Mr Hydrology about power exports from Norway, and the outlook for river flows and temperatures in central Europe. Will cooling issues plague France’s nuclear fleet again this summer?Host: Richard Sverrisson, Editor-in-Chief, Montel Guest: Eylert Ellefsen, Analyst, Energy Quantified

Finland's Olkiluoto 3 reactor – Europe's largest power plant – came online in April boosting capacity in the country by 1.6 GW. In addition, record wind power additions mean the country is currently oversupplied with power, for the first time in decades. But consumption has not kept pace, meaning the country needs a rise in demand to avoid sustained low, and even negative prices. Listen to a discussion on the transformation in Finland's power system.  Host: Richard Sverrisson, Editor-in-Chief, Montel  Guests: Marko Nieminen, Senior Expert, Fingrid; Riku Merikoski, Senior Power Analyst, Axpo; Heidi Paalatie, Director of Operations, Finnish Wind Power Association.

European electricity prices have spiked from more than EUR 1,000/MWh last year to below EUR 100/MWh this year. Hourly prices recently plunged below zero – as low as EUR -400/MWh in some countries – during periods of robust intermittent renewable supply and low demand. Listen to a discussion why negative prices could be the new normal for the next two to three years, what the consequences will be, and how policymakers should react.Richard Sverrisson, Editor-in-Chief, MontelGuests: Sigbjørn Seland, Chief Analyst, Storm Geo; Ana Barillas, Head of Iberia, Aurora Energy Research; Jean-Paul Harreman, Director, EnAppSys BV 

Without energy storage the energy transition will flounder. As Europe exits coal and gradually reduces gas use, the continent will require back-up green power to keep the lights on. Listen to a discussion on batteries, big and small, and what incentives are needed to boost the expansion of storage to help balance the transmission grid. Will batteries be a crucial element in a centralised or distributed energy system, or a combination of both? Host: Richard Sverrisson, Editor-in-Chief, MontelGuests: Matt Harper, CCO Invinity Energy Systems; Mike Longson, Commercial Associate, Gore Street Capital.

Increased renewables generation and lower gas prices will add pressure to European carbon prices in the months ahead but in the medium to long term the market is expected to tighten amid very ambitious climate targets. Listen to a discussion on the main factors driving prices and why we are unlikely to return to EUR 100/t. In addition, who are the “carbon bogeymen” and will policymakers blame them in case of a sharp rise in prices? Host: Richard Sverrisson, Editor-in-Chief, MontelGuests: Florian Rothenberg, Senior Analyst EU Power and Carbon Markets, ICIS; Paula VanLaningham, Director, Carbon Research, LSEG.

Germany’s plans to cap electricity prices for industry at EUR 60/MWh until 2030 is creating controversy and is even unwelcome by some large industrial firms. Why is there such opposition to a stable and secure power price for almost seven years? Listen to a discussion on the outlook for companies operating in Europe’s industrial heartland. Will gas demand in the EU’s biggest economy return to pre-crisis levels? Host: Richard Sverrisson, Editor-in-Chief, Montel Guests: Tobias Federico, Managing Director, Energy Brainpool Stefanie Müller, Stefanie Mueller, Director Power Trading & Portfoliomanagement, BASF

In a follow-up to the episode on 5 May, we hear why Denmark's energy consumers are up in arms over the profits made by the country’s trading houses. Details over bonuses – promised, then withdrawn – have only added to the uproar. Listen to a discussion on profits, bonuses and allegations of market abuse from the perspective of energy consumers. Is there, or should there be, a more equitable way of sharing the vast proceeds of these Danish firms?Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Mogens Pilgaard Sørensen, MPS Solutions

The looming end of temporary interventions in Europe’s wholesale market has triggered a wave of activity in power purchase agreements (PPAs), as companies rush to secure green energy. What has been the impact of the European Commission’s market design proposal on PPAs and the expansion of renewables? Listen to a discussion of why storage will increasingly be a key part of long-term energy deals and why analysis regarding the costs of solar power is outdated almost as soon as it is published.  Host: Richard Sverrisson, Editor-in-Chief, Montel Guest: Luca Pedretti, Co-Founder and Chief Operating Officer, Pexapark

In this special live podcast, hosted by Nord Pool at their special event in Bergen, Norway, we discuss how to accelerate the energy transition through the electrification of transport and the use of batteries. What sectors can be electrified and which ones will be more challenging? How likely is it that large ships or planes could run fully on electricity in the years to come? And what should you do if you run out of power far out at sea? Listen to a discussion on range anxiety and the requirements for charging infrastructure.Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Marit Meland, Business Development Manager, Eviny - Mobil EnergyMaria Bos, CEO, PlugTherese Gjerde, Vice President Global Sustainability, World Kinect Energy Services

Several Danish trading companies have posted record high profits in recent weeks. What's the secret to their success? Listen to a discussion on the reasons behind the massive rise in earnings and how they have been received in Denmark amid a cost of living crisis. In addition, a row over huge bonuses and allegations of market manipulation are likely to increase the chances of a regulatory backlash. Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Anders Plejdrup Houmøller, CEO, Houmoller Consulting ApSMartin Dam Wied, Head of Department, Green Power Denmark

Europe has ambitious plans to become net zero by 2050. This will not only require a massive roll out of wind and solar energy, but also flexible capacity for those dark, cold, and windless winter days. Listen to a discussion on the need to speed up permitting, cannibalisation and why large nuclear and coal fired plants are not a good match for renewable energy. Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Anja Frada, Chief Operating Officer, Wärtsilä Energy

European gas prices have fallen – and should continue to drop in the weeks ahead – amid ample supply, milder weather and increased electricity generation from renewables. However, problems at French nuclear plants in combination with rising demand in Asia pose risks for winter prices. Listen to a discussion on the reasons why prices could fall in the short-term, but remain elevated in the medium-term. What is the nuclear conundrum, and is Gazprom preparing a final roll of the dice? Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Wayne Bryan, Director European Gas Research, LSEG

Amid surging gas prices, many countries in Europe and beyond turned to the dirty fuel in an attempt to keep a lid on prices. But the increased demand for the dirty fuel triggered a massive rise in global coal prices, which in turn was boon to illegal transport of the commodity in South Africa. Recently, train operator Transnet issued a warning about the rise in so-called "ghost trains", or unchartered, off-timetable shipment of coal to the port of Richard's Bay. Listen to a discussion of the phenomenon and potentially how much of the fuel has found its way to Europe.Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Laurence Walker, Gas and Coal Editor, Montel

There have been mounting concerns over the stability of the global banking system after the failure of Silicon Valley Bank and the rescue of Credit Suisse. Listen to a discussion on the causes of the turmoil and what may happen next. Are we in danger of a broader banking crisis, and what could the consequences be for the energy sector and the rollout of renewables? Host: Richard Sverrisson, Editor-in-Chief, Montel Guests: Thina Margrethe Saltvedt, Chief Analyst, Sustainable Finance, Nordea and Lucy Eve, Senior Strategist, Eurasia Group

Many market participants expressed relief that the European Commission did not meddle with the marginal price-setting mechanism in its proposals for energy market reform. But plans to protect customers from volatile and soaring prices through encouraging long-term contracts and a capacity mechanism will impact the internal energy market. Listen to a discussion on plans for virtual trading hubs and why this complex but innovative idea will be challenging to implement.Host: Richard Sverrisson, Editor-in-Chief, Montel Guests: Michela Beltracchi, Senior Advisor Public & Regulatory Affairs, Nord Pool; Georg Zachmann, Senior Fellow, Bruegel

The European Commission has loosened state-aid rules in a bid to compete with the US Inflation Reduction Act in providing subsidies for green technology. The move comes in the wake of several high-profile European battery manufactures having indicated they are considering building factories in the US. Listen to a discussion on the main hurdles facing the battery and storage sector and how fresh regulation may spur manufacturers to stay in Europe.Host: Richard Sverrisson, Editor-in-Chief, MontelGuest: Giorgio Corbetta, EU Affairs Director, Eurobat