French Nuclear Restarts Stalled // Brits Asked to Turn Down Boilers, Spare Gas // Utilities Sound Alarm Over Transformer Shortage

French Nuclear Restarts Stalled

France's nuclear sector is still struggling to recover from decades of neglect. The expected restart of two nuclear plant has been pushed to next year, leaving them unavailable for the cold months.

"EDF announced on Monday in notices on the downtime for France’s power generation that the Penley-2 restart is now expected for June 11, 2023, compared to an initial timeline of having the reactor operational by the end of January 2023," reports Oilprice.com. "The maintenance at the Golfech-1 reactor has also been pushed back to June next year, from the middle of February."

The availability crisis from France's nuclear sector anticipates a January supply crunch spelled out in an RTE report. Loading fuel into the Flamanville EPR has also been pushed to the nnext. "The company also announced that the estimated cost at completion for the plant has increased from EUR12.7 billion to EUR13.2 billion," reports Word Nuclear News..

Brits Asked to Turn Down Boilers, Spare Gas

The United Kingdom has begun to encourage consumers to cut their gas consumption in an effort to make it through the winter.

"Prime Minister Rishi Sunak’s government started its long-awaited public energy-saving campaign Saturday, just as the country emerges from a week of freezing temperatures that caused demand to surge," reports Bloomberg. "It includes advice such as lowering the temperature on home boilers and taking measures to reduce heat leaking through windows and doors."

The UK isn't just pursuing gas savings either. It's begun a demand response program to encourage customers to curb electricity usage as well.

"A separate program run by National Grid, which encourages UK households to curb electricity demand at peak times, showed that consumers are willing to change behavior to save energy," reports Bloomberg. "Five tests of the system delivered more than 780 megawatt-hours of demand reductions, equivalent to £2.8 million ($3.4 million) in savings."

Elsewhere, Germany has put limits on office space temperature and shut off the lights on monuments after dark. France recently unveiled a vast program aimed at cutting the country's electricity consumption by 10% over two years.

Utilities Sound Alarm Over Transformer Shortage

American utilities are suffering supply shortages of critical components like transformers. In a recent letter to lawmakers, utilities and industry trade groups warn that the depleting equipment stockpiles are delaying and in some cases cancelling electrification projects.

"Throughout 2022, the electric sector and representatives from residential and commercial building sectors have been calling attention to the unprecedented supply chain challenges both industries have been facing in procuring equipment used to maintain and grow the electric grid," reads the letter. "Specifically, electric utilities continue to have significant problems in procuring basic equipment – particularly distribution transformers – needed to operate the grid, provide reliable electric service, and restore power following severe storms and natural disasters."

The cost of large transformers has increased 20% to 50% over the last two years, while equipment procurements have swollen from 20 to 39 months as compared to 16 to 20 months just last year.

"A group of lawmakers led by Rep. Sean Casten, D-Ill., is urging the government to authorize $2.1 billion in disaster supplemental funding to address the shortage of electrical transformers and complementary grid security technologies through the Defense Production Act," reports Utility Dive.

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Conversation Starters

1. LNG tanker orders shattered records this year. "Clarksons Research has tallied a record total of 170 LNG carriers ordered so far in 2022, up 95% on the 2021 full year total, with records also broken in terms of prices paid for these most prized ship orders," reports Splash247. "Spot rates for LNG carriers soared to incredible highs this year, peaking at close to half a million dollars a day in October, and have since come off the boil. While LNG and car carrier orders were both notably up this year, order volumes in general have eased off. Clarksons tallies 1,306 ships ordered so far this year, against 2,123 ships ordered in full year 2021."

2. Holtec has re-applied for the Civilian Nuclear Credits program created by the Department of Energy to save nuclear plants forced off the grid by natural gas and subsidized renewables. "The company applied for funds through the U.S. Energy Department's Civil Nuclear Credit Program after the plant was officially shut down in May. It announced in November it had been denied," reports The Detroit News. "The repowering of Palisades is of vital importance to Michigan’s clean energy future," said Patrick O’Brien, Holtec's director of government affairs and communications. "As Michigan transitions from fossil-fuel generation to renewables and emerging advanced technologies, baseload nuclear generation is an essential backstop."

3. Latin American oil production, especially from Pemex, is lagging. "At current production rates, Latin America is underperforming its potential by about 12 million barrels a day, one expert estimates. That’s the equivalent of roughly $864 million of lost oil revenue every day at current prices — a monumental loss for a region that’s saddled with some of the worst wealth inequality in the world, and at a time when a huge supply crisis in global energy markets means that output is more needed than ever," reports Bloomberg. "Perhaps no other country better encapsulates the squandered opportunity than Mexico, where a potent combination of mismanagement, debt and failing projects have combined to drag down its storied state oil producer Petroleos Mexicanos, better known as Pemex."

Crom's Blessing