Welcome to Grid Brief! Here’s what we’re looking at today: Georgia Power adds new fossil generators to meet rising demand, EU natural gas prices leap, and more.

Georgia Power Gets OK For 1.4 GW of Gas

American power demand is growing, so how will it be satisfied? Georgia Power answers, “Natural gas and oil.” The Georgia Public Service Commission agrees. On Tuesday, the regulator approved the Southern Company subsidiary’s updated integrated resource plan, which included 1.4 GW of new fossil generation.

“The approved Integrated Resource Plan authorizes Georgia Power to build three new methane gas and oil-burning units at Plant Yates and purchase 750 MW of power from a Mississippi Power coal-fired plant through a PPA,” reports Utility Dive.

GP isn’t only investing in new fossil fuel generators, though. It is also adding battery storage, renewables, and a pilot program for residential solar coupled with batteries.

“Based on the company’s energy expansion plan in the 2023 IRP Update, the company anticipates adding a total of approximately 10,000 MW of new renewable resources by 2035, which is nearly double the 6,000 MW projected in the 2022 IRP,” the utility said in a press release from when it updated its IRP last year.

But the PSC denied 200 MW of the new solar that GP wanted to add.

Year-to-Date EU Gas Loses Disappear

Fear of an escalating conflict between Iran and Israel shot European gas prices up, vaporizing a year’s worth of losses since last April.

“Benchmark futures closed up 6.4% on Tuesday, in a fourth straight daily advance,” reports Bloomberg. “While contracts at one point lost about 30% of their value since the start of the year — with an exceptionally mild winter weighing on gas demand — they’re now up slightly in 2024.”

According to Bloomberg, Europe doesn’t source very much of its fuel from the Middle East; but now that seaborne LNG sold on a global market has replaced so much of the continent’s gas supplies, geopolitical tensions make for more volatile prices.

And it’s not just Middle Eastern tension that’s sending prices up. Norway’s flows have dampened after a surprise pause for maintenance at some of its facilities.

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Conversation Starters

• The European Commission readies itself to sue Germany over its Gas Tariffs. “Unnamed Reuters sources said on Wednesday that the European Commission is preparing to sue Germany over its fees for purchasing gas from German storage in contravention of the European Union’s single market rules,” reports Oilprice.com. “In a matter of days, the European Commission is expected to file its infringement procedure lawsuit against the German tariff, Reuters reports, citing two unnamed sources, though a spokesman for the Commission told Reuters that talks were ongoing. The tariff, according to an EU energy regulator who spoke with Reuters, is creating higher gas prices in some EU countries.” 

• Uniper pumps brakes on Rotterdam hydrogen plant. “Uniper has pushed back the startup of the first 100-MW phase of its planned H2Maasvlakte green hydrogen plant in Rotterdam, the Netherlands, after failing to secure a power purchase agreement for the facility, and amid high grid fees and uncertainty over sufficient offtake interest,” reports S&P Global. “Phase one is now expected to be completed in 2028, from a previously indicated start date of 2026, though the full 500 MW capacity is still scheduled to come online in 2030. The company has also withdrawn from the EU Innovation Fund financing it had been granted, "because it did not foresee the possibility of meeting the original date communicated for 'financial closure' before August 2024," a company spokesperson told S&P Global Commodity Insights by email April 14. Part of the reason for this was being unable to secure a PPA, the spokesperson said.”

• Washington to re-impose Venezuela sanctions. “The Biden administration is potentially gearing up to reimpose oil sanctions on Venezuela, as President Nicolas Maduro violates the conditions of the existing temporary sanctions relief in his attempt to quash the opposition ahead of this year’s elections. On Wednesday, the Biden administration signaled that sanctions could be implemented anew when the six-month temporary deal expires on Thursday,” reports Oilprice.com. “Elections in Venezuela are scheduled for July 28, and Maduro has tirelessly worked to ban opposition candidates by using trumped-up criminal charges to keep them off the ballot, along with arresting many opposition figures for allegedly plotting a coup against him. While the Biden administration has been following a strategy of re-engagement with Venezuela, certain conditions must be met for the continuation of sanctions relief.” 

Crom’s Blessing

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