European Council agrees stance on electricity market reform : Nuclear Policies

The Europa Building in Brussels (Image: European Council)
Following months of negotiations, the European Council has reached an agreement on a proposal to amend the EU's electricity market design, agreeing to include existing nuclear plants in the reform. The agreement could result in France dropping a scheme forcing state-controlled utility EDF to sell a portion of its nuclear energy production to competitors below market-level prices.

The European Council said the reform aims to "make electricity prices less dependent on volatile fossil fuel prices, shield consumers from price spikes, accelerate the deployment of renewable energies and improve consumer protection". The proposal is part of a wider reform of the EU's electricity market design which also includes a regulation focused on improving the EU's protection against market manipulation through better monitoring and transparency.

"The reform aims to steady long-term electricity markets by boosting the market for power purchase agreements (PPAs) generalising two-way contracts for difference (CfDs) and improving the liquidity of the forward market," the European Council said. "The Council agreed that member states would promote uptake of power purchase agreements by removing unjustified barriers and disproportionate or discriminatory procedures or charges. Measures may include among other things, state-backed guarantee schemes at market prices, private guarantees, or facilities pooling demand for PPAs."

The European Council - which is made up of representatives of the governments of EU member states - agreed that two-way CfDs would be the mandatory model used when public funding is involved in long-term contracts, with some exceptions. They would apply to investments in new power-generating facilities based on wind energy, solar energy, geothermal energy, hydropower without reservoir and nuclear energy.

The Council also agreed to remove the temporary nature of capacity mechanisms, support measures that member states can introduce to remunerate power plants in order to guarantee medium and long-term security of electricity supply.

The European Commission adopted the proposals on the reform of the EU's electricity market design on 14 March. However, a dispute between France and Germany over the role of nuclear power in European climate action has dominated negotiations for months.

Under the terms of the agreement, France will now be able to finance the extension of the operation of its existing fleet of reactors with two-way CFDs, in line with the Commission's initial proposal.

Currently, under the so-called Regulated Access to Incumbent Nuclear Electricity (Accès Régulé à l’Electricité Nucléaire Historique, ARENH) mechanism set up to foster competition, rival energy suppliers can buy electricity produced by EDF's nuclear power plants located in France that were commissioned before 8 December 2010. Under such contracts, between July 2011 and December 2025, suppliers can buy up to 100 TWh - or about 25% of EDF's annual nuclear output - at a fixed price of EUR42 (USD47) per MWh. EDF operates 57 reactors in France, with a total capacity of 62.3 GWe, which together provide about 75% of the country's electricity.

Under the agreement reached by the European Council, the ARENH mechanism - which has attributed to lost earnings for EDF - could be replaced by CfDs when it expires at the end of 2025.

The Council's agreement will serve now as a mandate for negotiations with the European Parliament on the final shape of the legislation. The outcome of the negotiations will have to be formally adopted by the Council and the Parliament.Researched and written by World Nuclear News. European Council agrees stance on electricity market reform : Nuclear Policies - World Nuclear News:

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India hands over G20 presidency to Brazil

President of Brazil Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi at the G20 summit held in New Delhi Sept. 9 and 10. Brazil took over the presidency from India. PHOTO: X @India’s Ministry of External Affairs

NEW DELHI (Reuters) – India on Sunday, Sept. 10, 2023, formally handed over the G20 presidency to Brazil at the closing ceremony of the annual summit of the grouping, that was held in New Delhi this weekend. India Prime Minister Narendra Modi completed the transition by handing over the ceremonial gavel of the presidency to Brazil President Luiz Inacio Lula da Silva. India has had the presidency of the G20 since Dec. 1, when it took over from Indonesia, and will continue to hold the position until Nov. 30. During the two-day summit, the bloc adopted a consensus declaration that made commitments on several issues, including that of food and energy security, climate change and global debt vulnerabilities. Modi, on Sunday, also proposed a “virtual summit” of the grouping at the end of November to assess the status of the suggestions and proposals put forth by members and determine “how their progress can be accelerated”.“In that session, we can review the topics decided during this summit,” Modi said, adding that details would be shared with members. Source: https://www.newsindiatimes.com/
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At G-20, Biden announces ambitious corridor connecting India, Europe

President Biden with PM Modi at Raj Ghat Sept. 10, 2023. PHOTO: X @narendramodi

NEW DELHI – President Biden and several other world leaders announced plans here Saturday afternoon for a new rail and shipping corridor that would connect India and Europe through the Middle East, an ambitious proposal aimed at further connecting a volatile region and countering China’s years-long backing of massive infrastructure projects around the world.

The announcement solidified a preliminary agreement among a range of participants – including the United States, India, Saudi Arabia, Jordan, Israel, the United Arab Emirates and the European Union – and came as leaders of the world’s largest economies tried to work through divisions on a range of thorny issues.

By midafternoon, the leaders here had reached consensus on a 37-page joint declaration on 83 points, several of which referred to Russia’s war in Ukraine. The debate over the war led some to predict that such a statement would prove elusive, particularly given that Russia is a member of the G-20. But they arrived at language that stated that “all states must refrain from the threat or use of force to seek territorial acquisition,” and also stated that “the use or threat of use of nuclear weapons is inadmissible.” The language was not as pointed as it was during last year’s conference and did not explicitly name Russia as the aggressor in the war.

The leaders did highlight the “suffering and negative added impacts of the war in Ukraine” on a range of issues, including global food supply and energy security. But in the dry language of diplomacy, the statement added, “There were different views and assessments of the situation.”

In a Facebook post, Ukraine’s Foreign Ministry spokesman Oleg Nikolenko said the G-20 has “nothing to be proud of” on the language over Russian aggression in Ukraine, and he offered his own edits of how the portions regarding Ukraine should have been written.

The declaration in another section also formalized that the United States would host the G-20 in 2026, overcoming some late opposition from China.

“This is a significant milestone for India’s chairmanship and vote of confidence that the G-20 can come together to address a pressing range of issues and also to deal with hard issues that actually very much [divided] some members from others – including, obviously, Russia’s brutal war against Ukraine,” Jake Sullivan, the national security adviser, said shortly after the deal was reached.

“I have got good news. From our team’s hard work, we have reached an agreement on the G-20 declaration,” Prime Minister Narendra Modi, the summit’s host, said in Hindi, prompting a long round of applause from the G-20 leaders.

Biden came to the conference determined to try to showcase that the G-20 can maintain its relevance even after Chinese President Xi Jinping and Russian President Vladimir Putin sent deputies instead of attending themselves, amid tensions over the war in Ukraine.

Asked whether Xi’s absence affected the summit, Biden said, “It would be nice to have him here but, no, the summit is going well.”

Shortly after the declaration was announced, Biden joined other leaders to announce the rail corridor.

“This is a big deal,” he said. “This is a real big deal.”

The cost of the project was unclear, but senior Biden administration officials view it as a way to link key areas of the world, India to Europe, opening up new trading partnerships and a flow of energy and digital information. Also significant is having Israel working with a historical adversary such as Saudi Arabia; Biden is separately hoping to broker a deal to normalize relations between the two countries.

Deputy national security adviser Jon Finer noted the significance of reaching an agreement in an area that “has, obviously often been a net exporter of turbulence and insecurity.”

“Linking these two regions, we think, is a huge opportunity, building on our broader efforts over the last couple of years to turn the temperature down across the region,” Finer said.

Officials in the countries involved are expected within 60 days to come up with a timeline for the projects – linking energy grids, laying undersea and overland cables, and providing more digital connections. Some of the tasks involve installing hydrogen pipelines from Israel to Europe, which administration officials hope will advance clean energy goals.

The summit took place against the backdrop of a city that largely has been shut down amid tight security, with police officers standing at nearly every intersection and shops and restaurants closed.

Most of the conference meetings were closed to the news media, but Biden entered the opening session planning to outline his opposition to Russia’s invasion of Ukraine.

American officials unsuccessfully lobbied to have Ukrainian President Volodymyr Zelensky address the conference, something he did in person during a Group of Seven gathering in Hiroshima, Japan, and which he did virtually during last year’s G-20 in Bali.

“Our view is that it is fundamentally a good thing when President Zelensky is able to make his case and Ukraine’s case for, you know, how damaging this conflict has been to his people and to his country,” Finer said. “He is the most effective messenger for that. And it’s certainly in a format in which, you know, Russian representatives will be able to give their views about the conflict that is appropriate for Ukraine to be able to offer its perspective.”

Biden arrived at the summit on Saturday morning, walking down a long corridor to greet Modi. “How are you?” he asked as he approached, appearing to jog up a slight incline before the two leaders shook and held hands while examining a G-20 logo that had the motto, “One Earth. One Family. One Future.”

They later met in a large room with three rows of desks in an oval, a chandelier hanging above them and small flags denoting where each country’s leader was to sit.

During the first session, Biden was between British Prime Minister Rishi Sunak and Indonesian President Joko Widodo. Before Biden sat down, several others greeted him, among them leaders from Australia, the Netherlands, Germany and Nigeria.

“This period in the 21st century is a time to give the entire world a new direction. It is a time when age-old problems are demanding new solutions from us,” Modi said in an address to the global leaders as he sat behind a nameplate reading not India but Bharat – the Hindi name for the country – signaling a branding shift that has been the source of controversy for many in the nation.

The negotiations over a joint communiqué had been difficult, especially around language regarding the Ukraine war.

While it did note the harm of the war and the importance of territorial sovereignty, it did not name Russia as the perpetrator and was less direct in some of the language than was agreed to last year during the G-20 in Bali. At that meeting, while noting there were some disagreements, it referred to a U.N. resolution that “deplores in the strongest terms the aggression by the Russian Federation against Ukraine and demands its complete and unconditional withdrawal from the territory of Ukraine.”

When asked about the change in text over the course of a year, Indian Foreign Minister S. Jaishankar said that some conditions have changed in the war.

“Bali was Bali and New Delhi was New Delhi,” he said. “Bali was a year ago and the situation was different. Many things have happened since then.”

He went on to add, “One should not have a theological view of this. New Delhi declaration is responding to the situation of today just as the Bali declaration did to the situation a year ago.”

The language also was the result of a lengthy negotiation. India’s chief G-20 coordinator, Amitabh Kant, said that Brazil, South Africa and Indonesia were helpful in reaching consensus.

“It was a tough, ruthless negotiation that went on for several days nonstop,” he said.

Indian officials expressed frustration that the war has overshadowed other issues, such as successfully negotiating the African Union’s acceptance into the G-20. For the first time, a representative of the African Union joined the gathering, with the chairman of the 55-member bloc, Comoros President Azali Assoumani, being introduced by Modi.“For all our moral idealism in foreign policy, we accept things as they are and find a way around it,” said India expert Aparna Pande of the Hudson Institute. “At the end of the day, you work with what you got.”At G-20, Biden announces ambitious corridor connecting India, Europe
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