October 6, 2022

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Industry could push to shut down power this winter - E24

Industry could push to shut down power this winter – E24

Statnett could offer money to energy-intensive industries to shut down their production. It is a very objective measure if the energy situation in southern Norway becomes so bad this winter that the next step is rationing.

Using energy options that have been rolled out with energy-intensive industries, Oil and Energy Minister Terje Asland can ensure that Norwegian households do not have to think about rationing electricity this winter.
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– I think I can now say that families will be protected from rationing until next winter.

This was the promise made by Minister of Oil and Energy Terje Asland at the beginning of August.

Asland added that the situation is now better than it was at the beginning of the summer.

Instead, the power situation in Europe has deteriorated sharply since then.

It became especially bad after Russia at the end of August completely shut down the most important gas pipeline, Nord Stream 1, to Europe.

But despite this, Aasland still has to have every opportunity to make good on its promise.

Read on E24 +

Simply explain the price of electricity

– Possibility to release 18 terawatt-hours

That’s the opinion of electricity expert and brokerage director Pareto Securities, Lars of Scorpene.

He has compiled how much electricity the ten largest consumers of this country consume in one year. These are ten large industrial groups dealing with everything from smelting aluminum and silicon to producing petrochemical products and paper.

The ten together used just over 34 TWh of electrical energy last year. Of this, just over half was used in a total of 15 industrial facilities located south of Sognefjorden and Dovre. This is where the power situation can get perilous this winter.

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In a crisis situation, Aasland can release up to 18 TWh. It’s the amount of electricity used by the top 10 power-demanding companies in regions with potential power shortages this winter, says Scorpin.

The ten represent 25 percent

Skorpen believes it will never be necessary to release much energy from energy-intensive industry. But the squad he created shows that there is great potential.

We are in a completely different and better position than all the other countries in Europe when it comes to pushing energy-intensive industry to not use electricity. Scorpin says there is no other country where so much energy is used by so few power-hungry players.

The combined 34.3 TWh used by the 10 last year accounted for 25 percent of Norway’s total electricity consumption of 139.5 TWh. This equates to 86 percent of household consumption of 40 TWh.

Statnett buys options

The way in which electricity can be freed from energy-intensive industry, and instead used to heat Norwegian homes, is as follows:

Statnett buys so-called power options from some companies. This gives Statnett, if necessary, the right to demand that they cut off the electricity. And then, for an agreed period, they either stop production at the plant completely or reduce it.

If options are used, Statnett must also pay a rate for each kilowatt-hour released.

A 2014 report by Statnett describes the options as: An insurance scheme where the focus is on reducing the likelihood of rationing in larger regions or the country as a whole.

According to what is supported He said from the floor of Parliament on MondayStatnett will then give the NVE and him a report on current measures this winter by October 1.

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Measures must be used if we come to the so-called High tension power mode (scissors). We haven’t gotten there yet.

– Nearby to look

It is already known that it may become appropriate to launch the Equinor inert gas power plant in Mongstad. In this case, this will be the SAKS scale that increases production Power.

Perhaps the only realistic SAKS scale for reduce consumption Both are important and fast, power options.

– This is clearly one of the measures that we have come close to taking into account in our work, says Henrik Gallett, Director of Communications at Statnett.

However, Glette will not yet confirm that such options will be widely bought this fall.

All of the SAKS actions we want to propose will be combined into a single report before October 1, Gillette says.

Hydro is in a special class, the largest

When Statnett purchased power options before the winter of 2013/2014, it received bids from eight industrial groups totaling 17 facilities.

At that time, the total released electricity supply was “only” 1.06 TWh. Perhaps we are talking about completely different sizes than the options that may become relevant this winter.

Norway’s largest energy consumer in a special category is Norsk Hydro. With 16.8 TWh last year, Hydro uses 3.5 times more electricity at number two on the list. It is an American owned Alcoa company.

However, both are involved in aluminum smelting. And these fuses are the most demanding of shutdown.

CIO Halvor Moland says Hydro has delivered significant amounts of power in previous rounds of power options. But Statnett chose other providers at the time.

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So, many other big users of electricity may be a good fit for Statnett to approach this fall.

For example, Eramet and Ineos have all of their production, and therefore electricity consumption, in the price range of nitrogen dioxide in the far south of Norway. Together, these two industrial groups use approx. 3.4 TWh per year.