September was an interesting month to understand the challenges of Germany's so called "Energiewende".

At first, it may not look unusual. Germany was able to export 2,076 GWh of electricity for the month and covered peak loads most of the times.

1/n #Electricity
Isolating its wind & solar generation (RES) for the month of Sept however reveals future challenges.

GER had 9 days in Sept with little #wind. Not just Germany, all of Europe. On avg, GER used 2.7GW of its 62GW wind cap.

That is a capacity factor of 4.5%. Ouch!

2/n
While Sept turned GER into an importer for 2d (from CZE, SWE & DK) to cover consumption (FRA couldn't help; coal maxed out), RES also required it to export excesses during 15d.

Its Energiewende already turned GER into an imp/export "junky" as d-s are tough to match.

3/
So what?

Well, GER is scheduled to turn off all coal assets by 2035 (nukes by 2022; ex grid reserve) & replace it with wind & solar.

Only NatGas is permitted to complement intermittant RES in coming years - such are the directives of Germany's green energy laws today.

4/n
Many "experts" claim that this is a good thing, both for the climate and the consumer.

That is because RES will basically bring prices of electricity near-zero.

I kid you not - that is an official claim, among other, by its renewable lobby.

5/n
GER's Energiewende would require many conditions for it to work - none of which will be met by 2035, if ever.

One such condition is higher cross-border cap. In Sept it would have required 720GWh/d of imports (ex coal & nuclear) to cover its load. It has 52GW imp cap today.

6/
Did neighbours agree to increase cross-border cap with GER (future storage & transmissions should reduce total need) or is it uncoordinated?

Will neighbours have excess generation cap ex RES (same climate) to match future peaks? Today's c-border balancing doesn't suggests so!
U see, electricity was never only about energy assets (or their emissions) & always about timing & location too.

Wind will primarily be located offshore (north). Much of it will have to be transported south (industry). That will require a doubling of transmission lines.

7/
I'm afraid this target too will prove impossible to achieve by 2035 (despite a grid acceleration law since 2016) as nobody wants a new transmission line in the backyard.

At the current pace, GER would complete 50% of its grid expansion by 2035.

8/
We covered, among others, the challenges for more chemical storage in our thread here.

GER will require >15TWh of c-storage to cover so called "Dunkelflauten" - prolonged periods without wind or sunshine in Jan/Feb. It has a few MWh today.

9/
What went wrong?

For past 20y GER energy policy wasn't about emission.

Instead, ideology (Greens), campaign panic (CDU/CSU; Merkel’s nuclear exit post Fukushima) or personal entanglements (SPD; Schörder’s push for Russian gas) dominated decision making. Blame them all.

10/
For that purpose, the GER public was told that nuclear is an uncontrollable risk - a lie!

Its Energiewende, however, risks an "economic meltdown" if it doesn't allow for a nuclear renaissance to meet its de-carbonisation targets - a fact!

11/ Thx
ourworldindata.org/safest-sources…
For my German speaking audience, here is a recent clip which discusses the issues at hand in a most relevant and factual manner.

#Atomkraft

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More from @BurggrabenH

Sep 8
Let's talk electricity.

Europe is in danger of rolling electricity shortages from what I call a crisis of confidence.

I will explain why, back it with data & kindly ask YOU to share it as the fix lies in voting for balanced policies. We must adapt, urgently!

1/n
#Electricity
For those of you short of time, attached a brief summary of the issue at hand.

I was asked to compare the 1970ies energy crisis with today's for a Turkish newspaper. My answer below.

For those of you with time, please read on.

2/n #Greenflation #Stagflation @WifeyAlpha ImageImageImageImage
The European electricity grid is a modern miracle. It is the largest synchronous electrical grid (by connected power) in the world. It interconnects 520 million end-customers in 32 countries, including non-European Union members such as Morocco or Turkey.

3/n Image
Read 73 tweets
Sep 5
Let us look at the state of the European gas market.

We have worked hard to collect real time data where possible and are convinced to have a worldclass database by now.

What did we find out?

Thread 1/n
#TTF #LNG Image
Big picture first:

- Consumption: -12.2% yoy;
- RUS pipe imports: -48% yoy (inc. RUS LNG imports -42%);
- Local Production: +0.6% (Groningen could increase EU production by 10% alone within weeks);
- LNG imports: +70%.
- Net storage build: 45bcm!

2/n #Netherlands Image
Storage:

- ITA, FRA, GER, POL or CZE have done a great job saving gas to fill salt cavities et al "whatever it takes style".
- UK cannot b/c it lacks storage;
- EE struggles to access more flows;
- EU covers 51 of 180 winter days (<2 months).

So it needs flows!

3/n Image
Read 17 tweets
Aug 6
The European electricity crisis is deepens as it proves hard to save gas.

1) 🇫🇷 had to reduce nuclear output further due to high river temp (u can cool the reactor, but cannot let water back into the river to protect wildlife).

Result: Nuclear output (in MWh) collapses.

1/n
As I explained in the past days, 🇫🇷 has Europe's 2nd largest grid and was an exporter for as long as we can measure it. Not anymore.

In the context of the 🇩🇪 grid struggling too due to gas shortages, the list of issues gets longer by the week!

2/n
2) Meanwhile, Switzerland also has to reduce nuclear output due to high river temperatures.

Not a big issue because it will normalise once the heat wave ends in Sept. But it means that🇨🇭is unable to export electricity to 🇫🇷.

3/n
Read 9 tweets
Aug 3
Let's talk European electricity, shall we?

Thread
Part I (of many more to come); 1/n
European electricity prices are spiking for all major economies except for Spain. But also Spanish consumers pay 3x more compared with only May 2021.

2/n Image
In fact, most European power prices are 12-15x higher than they were in 2015. Needless to say, the European industry will go into a deep recession at these prices.

3/n Image
Read 30 tweets
Jul 24
We told you to sell base metal miners on 15/5/22. That was a good call.

As with other l/s call such as "short gold" in Nov 2020, it received critisism.

Let us now review what happened with Dr Copper (one proxy) since.

1/n 🧵👋 #copper
Starting June 2nd, Cu collapsed 29% in less than six weeks. How often did that happen?

Answer: not often! In past 25y Cu crashed only 8x >7% in a single week as in one week this June (stat below) & only 29x >5% (2x per week in June & July 2022).

Big quantamentel signals!

2/n
How is that possible, when global reported inventories (LME; Comex; Shanghai) are below their 10-year average? Aren't commodities priced on inventories?

Chart: Global Cu inventory (reported by exchanges); Source: Bloomberg
3/n
Read 10 tweets
Jun 30
French peak power prices for December 2022 explode well past their marginal cost of production.

They reached scary €1513/MWh!

Why?

1/3 #electricity #Inflation @kittysquiddy @WifeyAlpha @agnostoxxx @AndurandPierre
Because the market lost trust in EDF’s mgmt to fix the maintenance issues in time for the winter.

France’s nuclear power runs at a dismal 46.5% capacity utilisation.

Best to fix it @EmmanuelMacron. Oil is not your problem, power is!

2/3 #France Allez les bleus!
In other words, the price will climb to levels where it will reduce demand enough to meet supply.

Below a helpful cost curve graph by @LionHirth - h/t…!

3/3 End / Thx @JavierBlas
Read 4 tweets

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