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U.S. power grid needs to focus on resilience as extreme weather events rise- NERC

U.S. power grid needs to focus on resilience as extreme weather events rise- NERC

July 20 (Reuters) – The North American Electric Reliability Corp (NERC) on Wednesday said key entities of the U.S. power grid network were working to improve resilience of the power grid network as climate change drives more extreme weather.

The NERC’s “2022 State of Reliability” report said efforts were being made to improve the linkage between outages and weather by the Enterprise Electric Reliability Organization (ERO).

The ERO is made up of the NERC and six regional power entities.

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The U.S. power grid network is also implementing corrective action to avoid a repeat of widespread outages due to a cold snap last year.

“The February cold weather event demonstrated that a significant portion of the generation fleet in the impacted areas was unable to supply electrical energy during extreme cold weather,” the NERC’s report said.

These actions, based on recommendations by the Federal Energy Regulatory Commission (FERC) and NERC among others, would also help to develop standards for longer term grid planning, the NERC said.

The report also highlighted the growing risks from the inter-dependency of electricity and the natural gas industries, which has threatened the reliability of the Bulk Electric System in the past few years. The Bulk Electric System refers to the facilities needed to operate the electric energy transmission network, excluding local distribution.

Natural gas generators are now needed for the reliable integration of renewable power until new storage technology is fully developed and implemented at scale, the NERC said.

“At the same time, reliable electric power supply is often required to ensure uninterrupted delivery of natural gas to these balancing resources, particularly in areas where penetration levels of renewable generation resources are highest.”

The NERC report also flagged risks from geopolitical events, while “increasingly bold cyber criminals and hacktivists presented serious challenges to the reliability” of the bulk electric system.

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Reporting by Rahul Paswan in Bengaluru. Editing by Jane Merriman

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More extreme weather events expected to pummel China in July, August

More extreme weather events expected to pummel China in July, August

Buildings and farmlands are seen partially submerged in floodwaters following heavy rainfall in Poyang county of Jiangxi province, China July 17, 2020. China Daily via REUTERS

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BEIJING, June 28 (Reuters) – Extreme flooding that has battered southern and eastern provinces in China, leading to hundreds of thousands being evacuated and the highest rainfall in decades at the Pearl River basin, will likely continue in July and August, according to a government official.

“It is predicted that from July to August, there will be more extreme weather events in China, and regional flood conditions and drought conditions will be heavier than usual,” said Yao Wenguang, director of the Department of Flood and Drought Disaster Prevention of the Ministry of Water Resources, in an interview with Xinhua News Agency.

Images on social media, from cars trapped underwater to emergency rescues in floating rafts, reveal the widespread calamity in the country. A home collapsing into a river in Southern China recently went viral on Tik Tok.

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“From late May to mid-June, there were seven consecutive heavy rainfall processes in the Pearl River Basin, with relatively concentrated and overlapping rain areas, heavy rain intensity and heavy cumulative rainfall,” Yao Wenguang said.

China has been grappling with extreme weather contrasts, with Guangdong, Fujian and Guangxi provinces experiencing record rainfall while Shandong, Henan and Hebei provinces faced scorching heatwaves, pressuring the national power grid.

Meanwhile, drought conditions are also exacerbating problems with Yao Wenguang saying, “At present, drought has emerged in some parts of northern China and developed rapidly, mainly concentrated in Inner Mongolia, Henan, Shaanxi, Gansu and other provinces and regions.”

He said in response to the drought in four provinces and regions, the Ministry of Water Resources launched a drought defense level IV emergency response on June 25, sending three working groups to stricken areas in Inner Mongolia, Shaanxi and Gansu to help with measures to fight the drought.

Extreme weather events are making headlines across the globe, with flooding in China, India and Bangladesh and heatwaves in South Asia, Europe and the United States. Many scientists and experts point to climate change as the culprit.

On Tuesday, a team of climate scientists published a study in the journal Environmental Research: Climate, looking into the role climate change has played in individual weather events over the past two decades. The findings confirm warnings of how global warming will change our world – and also make clear what information is missing. read more

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Reporting by Beijing newsroom; Writing by Bernard Orr; Editing by Bernadette Baum

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LME appoints Oliver Wyman to review events that led to nickel suspension

LME appoints Oliver Wyman to review events that led to nickel suspension

Traders work on the floor of the London Metal Exchange in London, Britain, September 27, 2018. REUTERS/Simon Dawson

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LONDON, June 23 (Reuters) – The London Metal Exchange said on Thursday it had appointed Oliver Wyman to carry out an independent review of events that led to the suspension of nickel trading in March.

The exchange suspended nickel trading on March 8 after prices spiked by more than 50% to hit $100,000 a tonne. Activity resumed on March 16 when the exchange launched daily price limits and the provision of OTC nickel trading data.

“The independent review will review the factors that contributed to market conditions… in the period leading up to, and including, 8 March 2022 and make recommendations to reduce the likelihood of similar events occurring,” the exchange said in a release.

The assessment will not cover the decision-making processes and governance arrangements at the LME and at its clearing house, LME Clear, it said.

Decision-making and governance will be a part of the regulatory reviews to be undertaken by the UK Financial Conduct Authority and the Bank of England.

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Reporting by Pratima Desai; editing by John Stonestreet and Barbara Lewis

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Beijing halts offline sports events from June 13 due to COVID outbreak

Beijing halts offline sports events from June 13 due to COVID outbreak

A medical worker in a protective suit collects a swab from a resident at a makeshift nucleic acid testing site, during a mass testing for the coronavirus disease (COVID-19) in Chaoyang district of Beijing, China June 13, 2022. REUTERS/Carlos Garcia Rawlins

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BEIJING, June 13 (Reuters) – Beijing will suspend all offline sports events starting from June 13 citing high transmission risks of a recent COVID-19 outbreak linked to a bar in the city, Beijing Municipal Bureau of Sports said in a statement on Monday.

As of June 12, some 166 cases have been linked so far to the outbreak at the Chaoyang Heaven Supermarket Bar, which emerged last week.

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Reporting by Albee Zhang and Ryan Woo; Editing by Jacqueline Wong

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South Africa’s rand steady, focus on global events

South Africa's rand steady, focus on global events

A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

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JOHANNESBURG, April 5 (Reuters) – South Africa’s rand was flat early on Tuesday, as prospects of more sanctions against Russia and possibly bigger interest rate hikes by the U.S. Federal Reserve to rein in inflation supported the safe-haven dollar.

At 0630 GMT, the rand traded at around 14.5700 against the dollar, largely unchanged from its previous close.

The United States and Europe were planning new sanctions on Tuesday to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders. read more

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The price of commodities such as gold and platinum, of which the country is an exporter, also eased on Tuesday, limiting any potential gains in the local currency. Higher commodity prices tend to support the rand.

Traders said global factors were the main focus, as the rand showed little reaction to news that South Africa’s national state of disaster, in place for more than two years in response to COVID-19, has ended. read more

The national state of disaster had been the government’s main mechanism for managing the pandemic. Removing it dealt away with the vast majority of COVID-19 restrictions, aside from a few that will remain in place on a transitional basis.

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Reporting by Olivia Kumwenda-Mtambo

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Indian shares subdued as investors weigh oil prices, global events

Indian shares subdued as investors weigh oil prices, global events

Clouds are seen over the Bombay Stock Exchange (BSE) building in Mumbai, India May 25, 2016. REUTERS/Danish Siddiqui

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BENGALURU, March 23 (Reuters) – Indian shares were little changed on Wednesday as cautious investors kept an eye on crude prices and geopolitical events in the absence of any major domestic triggers.

By 0504 GMT, the blue-chip NSE Nifty 50 index (.NSEI) was up 0.11% at 17,334.45, while the benchmark S&P BSE Sensex (.BSESN) had gained 0.10% to 58,046.43.

After falling nearly 1% on Monday and extending those losses into the first half of Tuesday — due to higher oil prices — both the indexes staged a mid-day reversal to end more than 1% higher as investors bought into the dip.

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While the Nifty and Sensex built on the upbeat momentum in early trading on Wednesday, markets have now given up most gains.

“Markets are not going to be that bullish today and there could be some kind of consolidation,” said Devarsh Vakil, deputy head of retail research at HDFC Securities.

“As such, we have risen a lot from (recent) lows. So, it is better to digest these gains,” he added.

Earlier this month, the indexes hit their lowest levels since late-July, but they have since risen about 11% each.

In Mumbai, gains in pharmaceutical and metal stocks offset losses in automobile companies.

The Nifty Pharma Index (.NIPHARM) was up 1.27%, with pharma major Dr Reddy’s Laboratories (REDY.NS) rising 3% and topping the Nifty 50 percentage gainers.

The Nifty Metal Index (.NIFTYMET) rose 0.49%, with aluminium and copper producer Hindalco Industries (HALC.NS) adding 2.3%. Global commodity prices remained high on potential supply hits due to the Ukraine conflict.

The Nifty Auto Index (.NIFTYAUTO) dropped 0.56% and was on track for its second session of losses in three.

Meanwhile, broader Asian markets hit their highest levels since March 4 as investors moved cash back into equities from bonds in preparation for the U.S. Federal Reserve’s aggressive approach to combat inflation.

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Reporting by Anuron Kumar Mitra in Bengaluru; editing by Uttaresh.V

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CERAWEEK OPEC has no control over events roiling global oil markets -Sec Gen

CERAWEEK OPEC has no control over events roiling global oil markets -Sec Gen

OPEC Secretary General Mohammad Barkindo speaks during the CERAWeek conference in Houston, Texas, U.S., March 7, 2022. REUTERS/Daniel Kramer

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HOUSTON, March 7 (Reuters) – OPEC has no control over the events that have led to the run up in global oil prices and there is not enough capacity worldwide to compensate for the loss of Russian supply, OPEC Secretary General Mohammad Barkindo said on Monday.

Benchmark Brent crude prices surged on Monday, touching a 14-year high of over $139 a barrel as the United States and European allies considered banning Russian oil imports following Russia’s invasion of Ukraine.

Russia is the world’s top exporter of crude and fuel, shipping around 7 million bpd or 7% of global supplies.

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“There is no capacity in the world that could replace 7 millions barrels per day,” Barkindo told reporters at an industry conference in Houston.

“We have no control over current events, geopolitics, and this is dictating the pace of the market,” he said.

U.S., European and other governments exempted energy trade from sanctions to prevent already tight markets rallying further, but that has failed.

Traders have avoided Russian oil to avoid running afoul of future sanctions or unwittingly violating sanctions already imposed on Russian banks, companies and individuals.

With an outright ban, some analysts posit prices could rocket even higher. JPMorgan predicted Brent could hit $185 by year-end. A supply shortage would require prices to rise enough to cut demand. read more

“I have heard from several speakers here at CERAweek that current tightness in the market condition might be creating some demand destruction,” said Barkindo.

“Even as that might be the case, the other side of the equation is probably more critical at the moment, which is supply is increasingly lagging behind.”

When asked why the Organization of the Petroleum Exporting Countries (OPEC) and its allies did not just end all restrictions on output at their meeting last week, Barkindo told Reuters the situation in oil markets had developed since the group met on March 2.

“Let’s see what happens at the next meeting,” he said.

OPEC and allies led by Russia, a group known as OPEC+, said after that meeting in a statement that markets were well balanced, and OPEC+ sources reaffirmed that earlier on Monday. read more

OPEC+ remained committed to market stability, Barkindo said. The group continued to unwind the deep cuts imposed at the height of the pandemic, he said. Production should be fully restored from the cuts in September, he said.

OPEC+ stuck to a plan for a modest output rise in April at the March 2 meet and ignored the Ukraine crisis in their talks. read more

The situation in the markets was likely to be a game-changer in the energy transition, Barkindo told reporters.

Access to capital for the oil industry has become more challenging, he said, but the crisis was showing the world could not afford to stop investing in oil and gas.

Most OPEC+ members have little spare oil production capacity at the moment, with the bulk of the extra capacity available in the Gulf states of Saudi Arabia and the United Arab Emirates, according to the International Energy Agency.

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Reporting By David Gaffen and Marianna Parraga; Writing by Simon Webb; Editing by David Gregorio

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