Death hole formed in England

Death hole formed in England

Sergey Savchuk

Before winter had time to turn the first leaf on the calendar, rather gloomy news began to come from Europe. In particular, the UK media expects that this winter will be cold and because of this, the cost of electricity production in the country will continue to rise, and this will lead to a 3.2 billion pound financial hole in the market, which will have to be plugged by the wallets of the population.
Experts in the British energy sector warn: due to record prices for classic energy sources – gas, oil and coal – the cost of electricity production, if it does not set new historical records, will certainly not fall to the values of this spring. They also remind that just two weeks ago another calm happened over the British Isles and the generating companies began to ask for the production of one megawatt-hour just a mind-boggling 3,200 pounds (4,295 dollars). This is the price that was fixed in the daily trading on the Epex Spot exchange, and the irony for the British is that it is the cost of electricity at the Ratcliffe coal power plant.
A little later, the wind blew again, and the price dropped to 1,500 pounds, which, of course, is much more pleasant, but still hard for the state budget and ordinary Britons, especially if you remember that in mid-September the same megawatt-hour cost 540, and also a month earlier – 170 pounds.
By the end of November, the share of renewable energy dropped significantly. In the structure of the kingdom’s energy balance, wind stations produced only six percent instead of the previously proudly announced twenty-five. It is logical that traditional sources immediately entered the empty places. The British produced 55 percent of all electricity last month on the basis of natural gas, while coal consumption skyrocketed from two to five percent.
Official London had high hopes for the French company Electricite de France, the monopolist of the domestic market and its permanent supplier, but the latter – even if we forget the protracted political crisis between France and Engl-and over fishing off the co-ast of Britain – simply physically could not provide the necessary crossflows.
On this side of the English Channel, power workers are on strike every day, to which both nuclear scientists and workers of the Cordemais coal power plant have joined. As a result, the French generation sank by as much as two gigawatts in just a couple of days. To put it quite simply, Paris itself lacks energy, what kind of help is there for a neighbor. The French justify the impossibility of increasing supplies by the fact that if the British mass heating system operates mainly on natural gas, then in France the lion’s share of heating is electric heaters, and the average daily temperature is firmly fixed around zero degrees.
In advanced daily trading on the same Epex Spot, the cost of a megawatt-hour for French consumers rose to 302 euros (338 dollars), and this is an anti-record since 2012.
Undoubtedly, the British government is well aware of these numbers and trends. But while the average layman is reassured by promises of wind and two hundred euros per megawatt, 1.7 billion pounds has been allocated from the state budget to save the operator Bulb Energy, which provides light and heat to almost two million British homes.
This amount is included in the aforementioned more than three billion. Local analysts reasonably believe that no charity is involved, and therefore unplanned expenses will be evenly distributed among all consumers. Residents of England, Scotland and Wales should be prepared that the average bill for electricity payments per household will grow to one thousand three hundred pounds a year, that is, more than one hundred and twenty thousand rubles.
Russian mass media, relaying such news, are usually scolded for a fair amount of malevolence in the presentation. In fact, there is nothing good for our citizens in the galloping European prices for electricity, this blood of modern industry, there is no. The European market is small, and any sharp distortions affect all participants in the process. The consequences of record European prices in Russia can be observed everywhere, for example, if we compare the current cost of foreign-made cars or components for them with the prices of the first half of the year.
Therefore, let us refrain from bravura motives, but still allow ourselves to note a certain positive.
While the Old World lulls itself into lullabies about the green transition and unsuccessfully tries, like the notorious Trishkin caftan, to reshape the long-established and well-functioning energy system, Russia is working ahead of the curve.
Recently, within the framework of the III Russian-Chinese Energy Business Forum, an agreement between Novatek, China National Petroleum Corporation and China National Offshore Oil Corporation, which are among the three largest Chinese oil companies, became public. The agreement provides for the construction of three lines for the production of liquefied natural gas with a capacity of 6.6 million tons per year each.
France’s TotalEnergy and Japan’s Japan Arctic LNG are also going to join the $ 21.3 billion Arctic LNG-2 project. According to preliminary information, Novatek will own 60 percent of the shares of the joint venture, the rest of the participants, who have to invest over $ 9 billion of their own funds, will get blocks of shares of ten percent. The participation of all three countries is highly symptomatic.
Our country maintains stable friendly relations with China, in addition, it is the fastest growing market for LNG consumption. At the end of 2020, the PRC spent 94 billion cubic meters of LNG to cover its electricity needs (in terms of the usual values). This is only slightly less than Japan consumed, which accounted for 102 billion. France, with an indicator of 19 billion cubic meters, takes a confident seventh place.
That is, in 2023, when the first stage of Artik LNG-2 will be commissioned according to the plan, Russian gas in a much larger volume will go not only to premium markets in Asia, but, very likely, will occupy its own niche in the European market. And even if in the coming years the quotes of natural gas will not perform furious pirouettes, Russia will receive not only impressive profits, but also one more argument in favor of the fact that it is better to be friends and trade with it. Especially those who have it raining, then cold, then calm outside the window.

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