Zero-cost electricity disrupts traditional power-generation models in U.S., Europe and Australia

first_img FacebookTwitterLinkedInEmailPrint分享Bloomberg News:Bright and breezy days are becoming a deeper nightmare for utilities struggling to earn a return on traditional power plants.With wind and solar farms sprouting up in more areas — and their power getting priority to feed into the grid in many places — the amount of electricity being generated is outstripping demand during certain hours of the day.The result: power prices are slipping to zero or even below more often in more jurisdictions. That’s adding to headaches for generators from NRG Energy Inc. in California to RWE AG in Germany and Origin Energy Ltd. in Australia. Once confined to a curiosity for a few hours over windy Christmas holidays, sub-zero cost of electricity is becoming a reality for hundreds of hours in many markets, upending the economics of the business in the process.“There is no time pattern for having negative prices in Belgium,” said Marleen Vanhecke, an official at the nation’s grid manager, Elia System Operator SA. “This phenomena is mainly determined by high wind generation in Germany and enough import capacity towards Belgium.”Periods with negative prices occur when there is more supply than demand, typically during a mid-day sun burst or early morning wind gust when demand is already low. A negative price is essentially a market signal telling utilities to shut down certain power plants. It doesn’t result in anyone getting a refund on bills — or in electric meters running backward.Instead, it often prompts owners of traditional coal and gas plants to shut down production for a period even though many of the facilities aren’t designed to switch on and off quickly. It’s left the utilities complaining that they can’t earn the returns they expected for their investment in generation capacity.“Energy market price signals are critical to telling generators where to build new resources,” said Abe Silverman, deputy general council at NRG Energy, which is concerned about the anomaly in California. “As negative prices become more prevalent, we’ll have to evolve our energy market price formation strategies to ensure that we will continue to drive efficient investment.”Prices are below zero most often in Germany, which was the first major economy to make a big push into renewables. It’s phasing out nuclear reactors and coal power, leading to more frequent swings in the electricity market. It also exported its negative costs to surrounding markets. Denmark, Belgium, the Czech Republic, Switzerland and even France have all registered negative hours during this year or last.More: Power Worth Less Than Zero Spreads as Green Energy Floods the Grid Zero-cost electricity disrupts traditional power-generation models in U.S., Europe and Australialast_img read more

Agencies detail new CECL standard

first_imgNCUA, the FDIC, the Federal Reserve Board and the Office of the Comptroller of the Currency issued a joint statement Friday detailing the key elements and scope of the final current expected credit loss standard from the Financial Accounting Standards Board.FASB issued the final standard Thursday; it is effective for credit unions beginning for fiscal years after Dec. 15, 2020. As urged by NAFCU, this is one year later than originally planned for credit unions.The statement notes that the standard applies to all banks and credit unions, regardless of asset size, and it includes a table with the effective dates for different institutions. The statement also details the regulators’ initial supervisory stances regarding the standard.“The agencies’ goal is to ensure consistent and timely communication, delivery of examiner training, and issuance of supervisory guidance pertaining to the new accounting standard,” the statement said. “The agencies will be especially mindful of the needs of smaller and less complex institutions when developing supervisory guidance describing the expectations for an appropriate and comprehensive implementation of this standard. The guidance will not prescribe a single approved method for estimating expected credit losses.” continue reading » 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

Former Lancashire players heap praise on Clive LLoyd

first_imgCLIVE Lloyd, whose West Indies side dominated international cricket, has been knighted in the New Year Honours. The Guyana-born batsman, now 75, has been honoured for his service to the game.He captained the West Indies from 1974 until 1985 and played for Lancashire from 1968 until 1986, later settling in the Greater Manchester area.Since retiring, he has coached West Indies and worked for the International Cricket Council (ICC).The left-handed middle-order batsman made his Test debut aged 22 against India and scored 7 515 runs at an average of more than 46 in 110 appearances.His former Lancashire team-mate Farokh Engineer, who also played for India, said the honour was “well overdue because a lot of his colleagues were knighted, so I am so glad”.“He’s a great guy, he’s a character and we complemented each other and we contributed to Lancashire’s success,” said Engineer, who now works as a cricket pundit.“I am delighted; he’s been my best friend. We played against each other, we enjoyed our cricket.“We were the two overseas professionals at Lancashire – he was raw from Guyana and I was raw from India so we had to prove ourselves.”Lloyd’s West Indies side went 26 matches without defeat and thrashed England 5-0 in what became known as the 1984 ‘Blackwash’ series.He also led the West Indies to victory in the first cricket World Cup in 1975 scoring 102 at Lord’s against an Australia side with feared bowlers Dennis Lillee and Jeff Thomson spearheading their pace attack.Lloyd became a folk hero in Lancashire as a key player in the 1970s side that became known as the ‘Kings of One Day Cricket’.A true statesman – Jonathan Agnew, BBC cricket correspondent:He is obviously best known for his role in bringing the West Indies team together in a very factional part of the world.He got them playing as a team unit, fiercely proud of their region and who were feared and respected.Yet at the same time he has been an absolute star for Lancashire.My early cricketing years were spent marvelling at this incredibly athletic, graceful, loose-limbed left-handed batsman who could smash the ball all over the place.He was the first prowler in the covers; a beautiful mover who could pick the ball up with one hand and throw it at the stumps.He is cricket through and through.The same crowds who cheered Best, Law and Charlton at Manchester United in the winter brought football-style chants to cricket when Lloyd batted at the other Old Trafford in the summer.The team won three successive Gillette Cup finals and two successive Sunday league titles with Lloyd scoring a memorable 126 in the 1972 Gillette final against Warwickshire.Ex-Lancashire player John Abrahams, who captained the county in the 1980s, said: “I made my debut in 1973 and Lancashire were a team of stars. Clive was very good to me taking me under his wing in a very informal way.“As a batsman he changed the face of the game – there was a real buzz around the ground when he came in to bat.“He hit shots the rest of us could only dream of playing.” (BBC Sport)last_img read more