South Africa: Four Eskom Staff, Contractor Security Guard Arrested For Theft Of Heavy Fuel Oil At Camden Power Station
Four employees of Eskom, South Africa’s power utility company, and a contractor security guard have been arrested and charged for the theft of heavy fuel oil valued at R500 000(an equivalent of …. ) from the Camden Power Station.
The accused persons have been detained at the Ermelo Police Station under case number CAS 119/08/2024.
In a statement, Eskom said the initial arrests took place on Friday, 10th August 2024, at midnight, when two Eskom Weighbridge Operators were apprehended for their role in colluding to steal heavy fuel oil and defraud the company.
The company said further investigations on 16th August 2024, led to the arrest of two more Eskom employees, a Weighbridge Operator and a Control Room Operator as well as a contractor security guard.
All the accused persons have been remanded into police custody to reappear on 27th August 2024.
“Eskom is committed to safeguarding the security and integrity of its critical infrastructure.
“The ongoing collaboration between Eskom’s internal security investigations team and law enforcement agencies, coordinated by the National Energy Crisis Committee’s (NECOM) Safety and Security Priority Committee, is yielding positive results in our efforts to combat crime and corruption,” said Botse Sikhwitshi, Eskom’s Acting General Manager for Security.
“While the majority of our employees are hardworking and dedicated to enhancing Eskom’s performance, we are fully committed to eradicating corruption.
“The recent arrests are a positive step in our ongoing efforts to eliminate criminal activities within our organisation, reaffirming Eskom’s zero-tolerance approach to crime and corruption,” concluded Sikhwitshi.
Eskom urged the public to report any unlawful activities such as fraud, illegal electricity sales, theft of coal, fuel oil and crimes targeting critical infrastructure.
Source: https://energynewsafrica.com
USA: Oil Firm Halliburton Hit by Cyberattack
American oil and gas services firm, Halliburton, has been under cyberattack this week and is currently working to fix the problem, Reuters has reported, citing unnamed sources.
The cyberattack is said to have affected operations at the oilfield service major’s north Houston campus as well as some of its global connectivity networks.
“We are aware of an issue affecting certain company systems and are working diligently to assess the cause and potential impact. We have activated our pre-planned response plan and are working internally and with leading experts to remediate the issue,” a spokesman for the company said in a statement carried by Reuters.
The company has not confirmed or denied the issue it is experiencing as the result of a cyberattack.
Energy companies are an attractive target for cybercriminals because they operate strategic infrastructure. One such cyberattack took the Colonial Pipeline offline in May 2021.
The Colonial Pipeline is the biggest pipeline infrastructure in the United States, running 5,500 miles from Houston to Linden, New Jersey, carrying some 2.5 million barrels of gasoline and diesel daily.
The attack on Colonial led to panic along the East Coast, a run on gas stations, and a price jump until the owner and operator of the pipeline paid US$5 million in ransom to the cybercriminals.
“Critical infrastructure operators in the United States get to decide how well they do or do not employ cybersecurity controls,” Eric Noonan, CEO of cybersecurity company CyberSheath, told CNN in comments on the Halliburton report.
“This is a situation that cannot continue in perpetuity without enormous costs to the American people.”
Cybersecurity is garnering growing attention as the energy mix diversifies, too, since wind and solar infrastructure can be hacked, too, and so can EVs and EV chargers.
Source: https://energynewsafrica.com
Ghana: Energy Commission Boss Adjudged Best Head Of Covered Entity By Internal Audit Agency
The Executive Secretary of the Energy Commission, Ing Oscar Amonoo-Neizer, has been adjudged as the Best Head of Covered Entity, the MDAs Category by the Internal Audit Agency at its 2024 Annual Conference and Awards held at the UPSA in Accra, the capital of Ghana, on 22nd August 2024.
This award is presented to the head of Ministries, Departments, and Agencies of government that provide sufficient logistics and build the capacity of the internal audit unit of the organization he or she heads. It also makes sure that the internal control system is effective.
In brief remarks before the presentation of the award, Dr Oduro Osae, Director General of the Internal Audit Agency (IAA), lauded the commitment of Ing Oscar Amonoo-Neizer towards the Internal Audit Unit at the Energy Commission.
He noted that the Executive Secretary attended all audit meetings, consulted the audit unit before any approval was given and virtually relied on the advice of the head of the internal audit unit.
He said this improved the internal control system at the Commission.
Commenting on the award, Ing Oscar Amonoo-Neizer told this portal: “This award means a lot. It shows that when one believes in a system…the system of transparency…the system that should render good accountability…the system that should be responsible for whatever money is given…supports the people to give their best.
This indeed helps us to be more efficient, make us more economical in whatever thing we have to spend on and this has impacted positively in our audit report.
If you see what our external auditors have done for the last few years, it has demonstrated very minimal infractions that occur at the Energy Commission.
“I desire that we will continue equipping and training internal auditors to be able to deliver their mandate because it is their work that makes us sit up. And that makes us do well.”
Source: https://energynewsafrica.com
Commenting on the award, Ing Oscar Amonoo-Neizer told this portal: “This award means a lot. It shows that when one believes in a system…the system of transparency…the system that should render good accountability…the system that should be responsible for whatever money is given…supports the people to give their best.
This indeed helps us to be more efficient, make us more economical in whatever thing we have to spend on and this has impacted positively in our audit report.
If you see what our external auditors have done for the last few years, it has demonstrated very minimal infractions that occur at the Energy Commission.
“I desire that we will continue equipping and training internal auditors to be able to deliver their mandate because it is their work that makes us sit up. And that makes us do well.”
Source: https://energynewsafrica.com Ghana: NPA Corrects Misleading Report That CRM Will Eliminate Cheating At Gas Refilling Stations
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has refuted a publication that misrepresented a statement made by its Head of Communications during a recent interview on an Accra-based radio station in Ghana’s capital.
The report, according to the NPA, erroneously suggested that Mr Mohammed Abdul-Kudus had claimed the Cylinder Recirculation Model Policy would eliminate cheating at LPG filling stations.
This supposed statement did not augur well with the LPG Marketing Companies Association since it [supposed statement by the NPA] suggested that they [LPG stations] cheat customers at the refilling stations.
A statement issued by the Corporate Affairs Directorate of the NPA clarified that during an interview on an Accra-based radio station, Mr Abdul-Kudus addressed customer concerns about the integrity of filled cylinders under the Cylinder Recirculation Model (CRM).
According to the regulator, Mr Abdul-Kudus sought to explain that the filling of the cylinders under the CRM was automated at the bottling plants and that customers were assured of the right quantity of LPG they would be paying for at the exchange points.
“He further assured that customers who are still doubtful will have access to scales at the exchange points to weigh their cylinders and verify the correct quantities,” the statement explained.
It added that the media house that conducted the interview carried the story on their online portal with the correct headline: ‘NPA allays fears of gas cheating under cylinder recirculation model’.
The NPA has since drawn the attention of the media house to the misrepresentation and the need for it to effect the correction to represent the explanation given by Mr Abdul-Kudus.
“The NPA is mindful of its regulatory mandate to be fair to all players in the country’s petroleum downstream industry and will, therefore, not pass any comments to antagonize or tarnish the reputation of any player.
“The Authority is also guided by its mandate to protect the interests of customers and attend to their concerns,” the statement concluded.
Source: https://energynewsafrica.com
Kenya: Kenya Pipeline Is Not Part Of Entities To Be Privatised – Energy CS
Kenya’s Cabinet Secretary for Energy and Petroleum Opiyo Wandanyi has stated that Kenya Pipeline Company is not part of government entities that have been earmarked for disposal.
This comes as the government continues with its privatisation agenda targeted mainly at loss-making entities and those with duplicating roles, to tame wastage.
The move that will see up to 200 state enterprises reorganised, with some having private shareholders on boarded, gained momentum after President William Ruto signed into law the Privatisation Bill 2023, in October last year, after it was passed by the National Assembly in September.
Eleven key state corporations, which include the Kenyatta International Convention Centre (KICC), Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK) and Kenya Pipeline Company (KPC), were on the cards as of this year.
Others are Kenya Seed Company Limited (KSC), Mwea Rice Mills Ltd. (MRM), Western Kenya Rice Mills Limited, New Kenya Cooperative Creameries Limited, Numeric Machining Complex Limited (NMC), Vehicle Manufacturers Limited (KVM) and Rivatex East Africa Limited.
CS Wandayi on Wednesday however struck off KPC, which falls under his ministry from the list, dimming hopes of the private sector, which had started angling to grab a pie in the refined petroleum products handling company, which serves the Kenyan market and the region.
“The matter of restructuring public operations is in the domain of the public service (Public Service Commission) but having said that, I must emphasise and actually clarify that KPC is not on the table in terms of any plans for privatisation,” the Star quoted CS in a report.
Wandayi termed Kenya Pipeline as a strategic institution with “serious national security implications.”
KPC is wholly owned by the government with 99.9 per cent shareholding by the National Treasury and less than 0.1 per cent by the Ministry of Energy and Petroleum.
“It is an institution that the government will have to hold on to for the foreseeable future for its strategic positioning,” said Wandayi.
Cabinet has so far considered and approved the proposed selling off subsidiary business interests of the state’s shareholding in six listed companies.
The companies include East African Portland Cement Limited (25.3 per cent), Nairobi Securities Exchange (3.36 per cent), Housing Finance Company of Kenya Limited (2.41 per cent), Stanbic Holdings-formerly CfC Stanbic Bank Limited (1.1 per cent), Liberty Kenya Holdings-formerly CfC Insurance Holdings (0.9 per cent) and Eveready East Africa PLC (17.2 per cent).
In November last year, Ruto announced that the government was poised to privatise 35 state companies.
There will also be a major restructuring in agencies that have “serious governance issues” and supplication.
Some of the ministries with a high number of state agencies include agriculture, roads, transport and infrastructure, tourism, energy and petroleum, trade and industrialisation and sports, culture and heritage, which could face a major rationalisation.
A huge number of these entities have remained in losses or yielded low dividends for the government, forcing the exchequer to bail them out.
Kenya Pipeline Company is among few entities that pay dividends to the government, alongside the likes of Safaricom, KCB and KenGen, which have private shareholding.
In March this year, it announced an interim dividend payment of Sh5 billion to the National Treasury for the financial year ended June 2023.
The dividend payment followed a 21 per cent increment in KPC’s profitability to Sh7.6 billion in the financial year 2022-2023, compared to Sh6.3 billion the previous year.
Management and the board have since committed to deliver not less than Sh12.5 billion in the current financial year.
Source: https://energynewsafrica.com
Iran Appoints New Oil Minister, Warns Reserves Are Limited
Iran has appointed a new oil minister, Mohsen Paknejad, following a vote of confidence in parliament on Wednesday, Azerbaijan’s Trend news agency reported.
Paknejad, an oil ministry veteran who previously held the position of deputy oil minister from 2018 to 2021, took the podium on Wednesday to bemoan the state of affairs in Iran’s oil industry.
The new oil minister called on Tehran to boost production, warning that fossil fuel reserves will remain limited over the next two decades, without significant development efforts.
As things stand now, Iran is expected to see its oil output rise by 400,000 barrels by the end of next year, according to Trend AZ.
Paknejad said the ministry would work to balance production and consumption to stabilize the industry.
In July, according to OPEC figures, Iran saw a month-on-month increase of 20% in crude oil production, hitting 3,271,000 barrels.
The country’s total fossil fuel reserves are set at 1.2 trillion barrels, according to Trend.
However, Iran needs help getting fossil fuels out of the ground, with the Azerbaijani news agency indicating that some 70% of its gas reserves remains trapped underground due to technological insufficiencies.
Iran has a total of 74 oilfields and 22 gas fields in operation.
While production and development remain an issue, sanctions continue to bite in terms of exports and revenues.
Iran, however, appears to have rounded up new buyers of its sanctioned crude, including Oman and Bangladesh, Reuters reports.
Iran’s oil production has been recently estimated to have hit its highest level since 2018 as Tehran looks to boost output and exports, and export revenues with these, despite the U.S. sanctions.
Last month, Iran’s Petroleum Minister Javad Owji claimed that Tehran is currently exporting its oil to as many as 17 countries.
Wasington is still considering ways of squeezing Iranian oil exports amid heightened Middle East tension following Tehran’s vow to avenge the death of Hamas leader Ismail Haniyeh on Iranian soil.
Source: Oilprice.com
PETRONAS Achieves First Gas Production From Kasawari Field Offshore Malaysia
PETRONAS recently commenced its first gas production at the Kasawari field, located in Block SK316, approximately 200 km offshore Malaysia, at an initial flow rate of 200 MMcfd.
Block SK316 is operated by PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), which holds a 90% participating interest, while the remaining 10% is held by Exploration and Production Malaysia Venture (EPMV).
Discovered in 2011, the Kasawari field is a crucial feed source for both the PETRONAS LNG Complex in Bintulu and in addressing the increasing domestic demand for gas.
The field contains approximately 10 Tcf, with a gas sales rate of 545 MMcfd.
The Kasawari Gas Field Development (GFD) project includes a Central Processing Platform (CPP), a Flare Platform, and a Wellhead Platform (WHP), all interconnected to the CPP via bridges.
Gas from the Kasawari field is exported to a new riser platform at the E11 production hub through an 81 km carbon steel pipeline for further gas delivery to customers in Bintulu.
The fabrication works for the Kasawari platforms and bridges were carried out locally by Malaysia Marine & Heavy Engineering Holdings Berhad (MHB) in Pasir Gudang and Ocean Might Sdn Bhd (OMSB) in Kuching.
The CPP for the field is listed in the Malaysia Book of Records as the Heaviest Offshore Structure Platform, with a total weight of 53,893 metric tonnes (MT).
Malaysia Petroleum Management Senior Vice President Datuk Ir. Bacho Pilong said, “Kasawari is a testament to our local capabilities in executing large-scale projects.
This accomplishment, involving more than 450 local subcontractors and vendors, was achieved within 26.6 million man-hours.”
Source: worldoil.com
Ghana: What Bawumia’s Presidency Will Do For The Energy Sector If Elected
Ghana’s Vice President and flag-bearer of the governing New Patriotic Party (NPP) Dr Mahamudu Bawumia has promised to do several things in both the petroleum and power sectors of Ghana if elected as President of Ghana in the upcoming general elections scheduled for December 7.
On pages 174, 175, 176, 177, 178, and 179 of the NPP’s 2024 Manifesto which was launched last Sunday, August 18, 2024, the party highlighted the achievements of the government in the energy sector for the past seven years and pledged to build on the successes chalked so far.
Below are the pledges as captured in the NPP Manifesto 2024
Under a Bawumia presidency, we will:
- address issues in the power sector, including inadequate infrastructure development, insufficient investment in renewable energy sources, aging power generation facilities, transmission and distribution losses, and inefficiencies in the supply chain, which contribute to persistent electricity shortages, unreliable service delivery, and high electricity tariffs
- address both upstream and downstream challenges in the petroleum sector, including issues relating to dwindling discoveries and explorations, increased costs at the pump, and
- providing leadership and investments in energy transition, local content, and cybersecurity preparedness of the energy sector
- incentivise solar power users through the net metering system under which households and other producers of solar power get “credits” for excess power they provide the national grid, against which they can use grid power when not on solar
- implement a significant shift in electricity tariffs structure to a regime in which commercial rates are either equal to, or lower than residential rates, never higher, to power industries and businesses
- develop a framework to allocate reliable and affordable power pricing to aid the development of the emerging lithium, and integrated iron, steel, aluminium and manganese industries
- introduce a framework to streamline the procurement of fuel for power generation. This framework will encourage Independent Power Producers (IPPs) to buy their own fuel to improve power security and efficiency, transfer financial risk and cost efficiency responsibilities to IPPs, foster market competition, allow the government to focus on core responsibilities, reduce the fiscal burden, enhance transparency and accountability, and attract investments into the sector
- introduce measures to accelerate national electrification to achieve a universal access by 2028
- introduce Private sector participation (PSP) into the retail power sector, to improve efficiency and customer satisfaction, especially in metering, billing, and collection
- institute governance requirements similar to those in highly regulated sectors like finance and banking, to ensure board members’ fiduciary responsibilities, and potential sanctions, are clearly spelt out
- strengthen regulatory oversight within the power sub- sector, and implement institutional rearrangements, including the merger of Public Utilities Regulatory Commission (PURC) and the Energy Commission (EC), to empower the regulatory body and promote consistency in regulatory policies and standards, and
- digitise the revenue platform that will apply Cash Waterfall Mechanism (CWM) sharing ratio at the point of all electricity tariff payment, to enhance liquidity within the electricity value chain, increase transparency and reduce indebtedness
- review the Petroleum Act, 2016 (Act 919) in the following areas:
- commit to simplifying approval processes for appraisals and production programmes, to reenergise upstream activities
- review and strengthen the Petroleum Revenue Management Act, to streamline government allocation of oil funds and address gaps in the law
- fully implement the Infrastructure-Led Exploration (ILX) strategy, to unlock the full potential of Ghana’s offshore reserves
- expand the Gold for Oil (G4O) Programme to increase its penetration of the oil market to further reduce the forex pressure on Bank of Ghana, and to further stabilise the prices of petroleum products New Patriotic Party (NPP)
- implement regulations that will improve the financial sustainability of the fuel supply chain in the downstream market, to minimise the credit system and improve liquidity for the procurement of petroleum products
- implement new policies to incentivise private sector participation in the petroleum and petrochemicals hub
- strengthen the regulatory capacity of the National Petroleum Authority (NPA), to develop regulations to promote an export-oriented petroleum hub
- partner the private sector to build and maximise our gas processing infrastructure for power generation, ammonia for fertiliser, and gas to petrochemical liquids
- introduce policy that will encourage and facilitate International Oil Companies to partner local universities, to collaborate on Research and Development for our upstream activities, and
- implement regulations to guide Regulator-Operators’ relationships to minimise regulatory overreach close collaboration for industrial harmony
- review and strengthen local content laws to close the gaps and deepen the role of Ghanaians and Ghanaian companies in our upstream activities, including introducing measures to promote local capacity development, technology transfer, employment opportunities in the upstream sector, and
- introduce a dedicated National Ghanaian Content Fund, and National Data Acquisition Fund, to help Ghanaian enterprises enhance their competitiveness, and to effectively participate in the upstream sector
- roll out 2000 MW of solar power to diversify our energy mix, increase the use of our natural resources, and improve our energy security. This will be supported by:
- align the addition of new generation capacity with the Integrated Power System Master Plan (IPSMP), and the National
- develop a Biofuel value chain policy to include:
- incentivise the private sector to develop waste-to-energy projects which will also help in controlling and disposing of waste, reducing sanitation-associated health risks, and
- accelerate the work of the Ghana Nuclear Power Authority, with our developmental partners, in choosing a Vendor/ Strategic Partner to commence the next phase of our nuclear power development
- implement mandatory cybersecurity training for all employees within the Energy Sector, to ensure staff are equipped with the knowledge and skills to identify and mitigate cyber threats effectively, and
- introduce a cybersecurity compliance certification scheme for firms operating in the energy sector, which will require companies to meet specific cybersecurity standards and undergo regular audits to ensure compliance.
Ghana: Man Climbs Power Transmission Pylon To Commit Suicide
The timely intervention of fire officers and police personnel in the Ashaiman area prevented a 48-year-old man who had climbed a power transmission pylon from committing suicide at Adjei Kojo, a suburb of the West Tema Municipality.
The 48-year-old man, identified as Yehowa Nagbeh, climbed the 33kV transmission line ostensibly to commit suicide.
After being rescued from the top of the pylon, he told the officers that he was suffering from a kidney disease and finding it difficult to raise money to undergo treatment.
He said he first visited the Ashaiman Municipal Hospital but was referred to the Tema General Hospital.
“At Tema General Hospital, they also directed me to go to UGMC. I have walked for a while now, and I’m tired. I don’t know what to do. I decided to go there (UGMC), but they told me I wouldn’t be able to pay the bills,” he recounted in pain.
In a post on Facebook, the Ghana National Fire Service wrote: “At 0842 hours on Monday, August 19, 2024, a distress call was received, reporting a man trapped on a 33kV transmission line at Adjei Kojo near Ashaiman.
“A rescue team from the Motorway Fire Station, led by ADO II Enoch Bedu Essel, arrived at 0856 hours.
“The team, along with ECG staff and the Ghana Police, found 48-year-old Yehowa Nagbeh clinging to the pylon.
“After a 23-minute negotiation, the man was safely harnessed and lowered.
“This rescue highlighted the strong collaboration between agencies in the Tema Region.
“The police are working to reunite him with his family,” the post concluded.
Source: https://energynewsafrica.com
Uganda: Oil Exploration Underway In Two New Regions
The Republic of Uganda is exploring for oil in two new regions where potential discoveries of crude could increase the East African country’s proven reserves of 6.5 billion barrels, Dr. Ruth Ssentamu Nankabirwa, Minister for Energy and Mineral Development said on Wednesday
Commercial quantities of crude oil were discovered in the Albertine Graben basin in Uganda’s west near the border with the Democratic Republic of Congo nearly two decades ago, but production is not projected to start until next year.
Government geologists are exploring two new regions located in Uganda’s north and northeast, Energy Minister Ruth Nankabirwa said at a press conference in the capital Kampala, according to Reuters.
“The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have started in the Kyoga Basin,” she said, referring to the two new regions.
“Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”
Uganda has five basins where hydrocarbon potential is suspected, with only one, the Albertine, successfully explored so far, the energy ministry says.
The two oil fields in the Albertine basin – Tilenga and Kingfisher – are majority-owned by TotalEnergies with a 56.7% stake, while China’s CNOOC and the Uganda national oil company UNOC own the remaining share.
Commercial production has been delayed by various factors including disagreements with oil firms over field development strategy and taxation, and a lack of infrastructure and funding to develop it.
Only 72 of 457 planned wells have been drilled in the Tilenga and Kingfisher oilfields, Nankabirwa said, and oil firms had submitted a plan for a liquefied petroleum gas (LPG) facility for which the government planned to issue a license.
The government expects a decision next month from Chinese funders, including EXIM bank and SINOSURE, that Uganda has been wooing to provide credit for the proposed East African Crude Oil Pipeline (EACOP), Nankabirwa said.
The 1,445-kilometer (895-mile) EACOP will help Uganda export its crude via a port on Tanzania’s Indian Ocean coast.
Source: https://energynewsafrica.com
South Africa: Eskom Removes Over 35 Illegally Connected Transformers In Gauteng
South Africa’s power utility company, Eskom, in collaboration with various law enforcement agencies have successfully removed over 35 illegally connected transformers in Diepsloot Extension 6, Gauteng.
This joint operation is part of Eskom’s ongoing efforts to reclaim its network and alleviate the strain caused by unauthorised and illegal electricity connections.
In the 2022/23 financial year, Eskom experienced non-technical losses of around R5 billion due to illegal connections, meter bypasses, and other electricity-related criminal activities within its supply area.
These illegal practices compromise Eskom’s financial health and its ability to deliver a dependable electricity supply to legitimate customers.
Illegally connected transformers not only destabilise the network, causing frequent supply interruptions, extended outages and substandard service for paying customers but also pose significant safety risks to Eskom technicians working on the system.
“We are deeply appreciative of the collaboration with the South African Police Service (SAPS), Joburg Metropolitan Police Department (JMPD), Red Ants, Eskom Protective Services, and private security companies, in ensuring the success of this operation,” Monde Bala, Eskom’s Group Executive for Distribution said in a statement after the exercise on Tuesday, August 20,2024.
“These efforts are crucial in safeguarding Eskom’s assets, ensuring public safety, and mitigating the severe energy losses caused by illegal connections, meter bypasses, and acts of theft and vandalism, concluded Bala.
While most of our employees are dedicated and committed to delivering their daily job outputs and striving to enhance Eskom’s performance, we maintain a clear stance of zero tolerance towards crime and corruption.
Consequently, we are currently investigating allegations from community leaders that some Eskom employees are allegedly involved in the sale of illegal transformers.
“We will update community leaders on the outcomes of these investigations once they are concluded,” Eskom said.
Source: https://energynewsafrica.com
Negative Power Prices Hit Europe As Renewable Energy Floods The Grid
European power markets are experiencing a notable shift as renewable energy sources, particularly wind and solar, become a larger part of the energy mix.
On Tuesday, power prices in several European markets, including Germany, dipped below zero due to a surge in green electricity production.
In Germany, wind generation is expected to hit 22.7 gigawatts, the highest level in four months.
This spike in renewable output has overwhelmed the grid, leading to negative prices during six separate hours on Tuesday, as recorded by Epex Spot SE.
Negative pricing occurs when there is more electricity supply than demand, a scenario becoming more frequent as Europe continues its aggressive push toward renewable energy.
The rapid expansion of wind and solar capacity is reshaping the continent’s energy landscape.
On days when both sources are generating at high levels, the market can become saturated with inexpensive power, driving prices down to the point where they even turn negative.
While this benefits consumers in the short term, it also highlights the challenges of managing an energy grid increasingly reliant on intermittent renewable sources.
On the flip side, when wind and solar are lacking, it can starve the grid of needed energy.
In the long term, integrating battery storage systems is crucial to addressing these fluctuations.
By storing excess energy generated during periods of high wind and solar output, batteries can release power when renewable generation is low, stabilizing prices and ensuring a consistent supply of electricity.
As Europe continues its transition to green energy, the frequency of negative pricing events is likely to increase, showcasing the need for energy storage investments as a way to manage a grid dominated by renewables while ensuring energy security.
Source: Oilprice.com
Ghana: My Government Will Digitise ECG’s Revenue Platform To Apply Cash Waterfall Mechanism At The Point Of Electricity Tariff Payment-Bawumia
Ghana’s Vice President and flag-bearer of the governing New Patriotic Party (NPP) Dr Mahamudu Bawumia has promised to resolve the challenges with the implementation of the Cash Waterfall Mechanism (CWM) if elected as President of Ghana in the upcoming General Election scheduled for December 7.
On page 176 of the NPP Manifesto which was launched last Sunday, August 18, 2024, the party announced several measures to deal with the challenges in the power sector.
“Under a Bawumia presidency, we will digitise the revenue platform that will apply Cash Waterfall Mechanism (CWM) sharing ratio at the point of all electricity tariff payment to enhance liquidity within the electricity value chain, increase transparency and reduce indebtedness,” the NPP 2024 Manifesto captured.
The Cash Waterfall Mechanism was proposed by the current government in 2017 when Boakye Agyarko was the Energy Minister to address liquidity challenges in the sector. However, its implementation was delayed until 2020.
It was to ensure fair and transparent distribution of revenues to all the players in the electricity supply value chain.
In June 2023, the President, Nana Akufo-Addo, and Vice President Mahamadu Bawumia directed revisions to the Cash Waterfall Mechanism (CWM) under the Energy Sector Recovery Programme due to ECG’s challenges in adhering to existing guidelines.
The directive aimed to enforce CWM guidelines and enhance its effectiveness.
As part of this, the PURC was tasked with appointing independent auditors for quarterly audits of ECG and NEDCo collections and disbursements to validate declared collections and ensure CWM compliance.
The ECG was instructed to use CWM as the sole payment mechanism for customer revenues and operate a single holding account for collections. Quarterly audits of ECG’s collections and disbursements were also mandated.
The PURC would validate revenue collections and payments according to CWM guidelines and reconcile quarterly with MoF and the CWM team to identify any payment shortfalls to be covered by the Finance Ministry.
Source: https://energynewsafrica.com
Senegal: Gov’t Sets Up Commission To Review Oil And Gas Contracts
Senegalese government has set up a commission of legal, tax, and energy sector experts to review its oil and gas contracts and work to rebalance them in the national interest, Prime Minister Ousmane Sonko said on national television on Monday, Reuters reported.
President Bassirou Diomaye Faye, who defeated the ruling coalition candidate in a landslide victory in March, ordered an audit of the oil, gas and mining sectors after coming into office, and vowed to renegotiate the terms of contracts with foreign operators in the country if needed.
Authorities have not shared details on the audit or updates on any renegotiation plans.
Sonko said they were committed to their promise to the Senegalese people “to come back to these various agreements to re-examine them and work to rebalance them, obviously in the national interest.”
He said the commission will have sufficient resources to look into the contracts and hire experts from abroad if necessary.
He did not say how long the review would take.
The move comes soon after Senegal became an oil producer for the first time.
Australia’s Woodside Energy announced in June that its Sangomar oil and gas field had produced its first oil.
Gas production is also due to begin by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.
Source: Reuters.com