News 20111205 winter


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News 20111205 Winter

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News 20111205 winter

  1. 1. News December 5th, 2011 Winter nightmare for the energy sector The drought has halved hydropower production, and a reactor at Cernavodă could be off Friday. Cold in January to increase gas imports, which reached a record price. In addition, Petrom expensive domestically produced gas. Severe drought in the last 6 months has already raging in the energy sector and the situation will worsen with the onset of winter, when it’s expected to increase the consumption of electricity and gas. The situation is difficult on all levels. The hardest hit is the hydropower production, the cheapest in the country, which has halved since September. Hidroelectrica had to activate the force majeure clause in its contracts, so as to reduce the production deliveries. Trihenea Constantin, general manager, estimated that this situation will last until spring. Problems in Cernavodă And NPP has already serious problems of reactor cooling water. Danube since last week fell to a level of -163 cm, representing the first stage warning within restrictions plan.Eng. Paul Keisch Page 1
  2. 2. News December 5th, 2011 "If it doesn’t rain in the coming days and the level continues to fall further, Friday, December 9th, will take the decision to close 1 of 2 nuclear reactors at Cernavodă", said sector sources. That has not happened since 2003. According to submitted data by the Romanian Waters as was requested by the newspaper "Adevărul", the Danube at Cernavodă will continue to fall next few days and will arrive Friday at - 186 cm. "Today, at the hydrometric station Cernavodă, Danube levels ranged at -177 cm, below warning stage I (-162 cm) of the water use and restrictions plan in poor times, and will reach, on December 9th, a level of -186 cm, being 24 cm below the first warning level. Thereafter, Danube levels will register a slight increase, respectively by 3 cm, reaching on December 11th to a level of -183 cm, which will be situated 21 cm below the first warning level", show data from the Romanian Waters. Very low temperatures in January Yesterday, Danube flow from entering the country was 1,850 cubic meters per second (m3/s), representing 35% of the multiannual average in December (5,200 m3/s) and the filling degree of 36 major reservoirs is 54%. The problem is that hydro and nuclear energy deficit, which is the cheapest, has to be supplemented by electricity from coal and gas, much more expensive and pollutants sources, which puts a greater pressure on final price. This however, given that the final price for the population will increase by about 2.5% on January 1st only because of subsidies for renewable energy, without taking into account the problems caused by drought. Speaking of gas, also here is expected a difficult winter. December will be quiet, but in January we expect very low temperatures of -15˚C to -20˚C, energy sector sources have said. Under these conditions, gas consumption for heating will increase greatly. Additional requirements will be imported from Russia, where prices have now reached record levels, with 25% higher than in early. Romanian gas more expensive In addition, from October 1st, Petrom expensive domestic gas production by 6%. GDF Suez, former Distrigaz Sud, accepted the new conditions and requested further from National Regulatory Authority of Energy (ANRE) to increase final tariffs to cover costs. "This increase in the domestic gas production prices –due to higher imported gas prices under the necessary conditions to increase gas imports in winter – will be reflected in regulated tariffs, in the shortest time", said GDF Suez officials. Instead, according to information held by newspaper "Adevărul", those from E. ON did not accept the increase and are in negotiations with several importers to ensure their gas needs. "We analyze the market to see what solutions we can call, so as not to be needed to ask an additional price increase", said company sources. The final price of gas and energy for industrial consumers should be increased by 2 digits, for operators to cover all costs, says the head of E.ON Romania, Frank Hajdinjak, in late October. For population, gas prices won’t increase by April 1st, 2012 according to an ordinance adopted by the government last summer.Eng. Paul Keisch Page 2