Europe’s energy grids face first major winter stress test as Arctic blast takes hold

Published

2 years ago

December 8, 2022

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Temperatures across the Nordic countries and central and eastern Europe are also set to drop to close to or below freezing over the coming days.

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LONDON — Temperatures in Northern Europe are expected to fall sharply over the coming days as cold air blows in from the Arctic, posing the first major winter test of the region’s energy grids.

The U.K.’s Met Office on Wednesday issued a number of severe national weather warnings for snow and ice, with temperatures set to fall as low as -10 degrees Celsius (14 degrees Fahrenheit) in some isolated spots by the end of the week.

Temperatures across the Nordic countries and central and eastern Europe are also set to drop to close to or below freezing over the coming days.

The projected cold snap is thought to represent a significant stress test for Europe’s fragile energy market systems.

For several months, European governments have been racing to fill underground storage facilities with natural gas supplies in order to secure enough fuel to keep homes warm during winter.

The latest data from industry group Gas Infrastructure Europe shows the EU’s gas storage is estimated to be roughly 90% full. It comes as Russia has sharply cut gas supplies to Europe throughout 2022 following the Kremlin’s invasion of Ukraine in late February and the resulting sanctions.

Energy analysts told CNBC that while Europe’s gas storage levels were in a relatively strong position for winter, southern Germany may be “particularly vulnerable” to freezing temperatures partly due to nuclear outages in France. The U.K. could face problems early next year too if energy exports from the EU fall.

Risk of periodic rationing

Raad Alkadiri, managing director for energy, climate, and sustainability at Eurasia Group, said Europe is “well prepared” for the dip in temperatures, helped by this year’s record buildup of natural gas supplies and the late onset of winter temperatures.

“If the period of freezing temperatures is extensive, there remains a risk that gas demand will need to be curbed further in some parts of Europe through periodic rationing,” Alkadiri told CNBC via email.

The U.K.s Met Office on Wednesday issued a number of severe national weather warnings for snow and ice, with temperatures set to fall as low as -10 degrees Celsius (14 degrees Fahrenheit) in some isolated spots by the end of the week.

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Deep-rooted problems with France’s nuclear-heavy energy strategy have raised serious questions about its preparedness for the colder months.

In the event of further curbs, Alkadiri said European capitals would seek to ensure they are skewed to industry and preserving supplies to residential households, “which remain their number one priority.”

Government warnings

The French government last week warned strained tensions in the energy market could lead to power outages and rolling electricity outages in the coming weeks.

Britain’s National Grid chief has previously warned of the possibility that households could face blackouts between 4 p.m. and 7 p.m. on “really, really cold” weekdays in January and February if gas imports are reduced. This scenario, which is seen as “unlikely,” follows a statement from the U.K.’s energy regulator Ofgem that Britain faces a “significant risk” of winter gas shortages.

In Finland, meanwhile, national grid operator Fingrid has reportedly suggested that the winter ritual of people warming the cabins of their cars before they get in may have to be considered as a luxury in order to minimize strain on the power grid.

The Nordic country’s energy authority also warned earlier this month that the risk of short power outages had increased due to uncertainty in domestic production and foreign imports.

“Energy markets feel a bit like boiling the frog at the moment,” Lukas Bunsen, head of research for Central Europe at Aurora Energy Research, told CNBC via email.

“The situation is quite bad — colder weather or any more unexpected outage could lead to power shortages in France,” he added. “Next to this, high prices are damaging to both industry and consumers.”

Bunsen underlined the point that the situation in Europe is not as bad as it could be, however, citing the 27-nation bloc’s “well filled” gas storage facilities.

Environment

U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears

Published

7 hours ago

April 6, 2025

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U.S. crude oil falls below a barrel to lowest since 2021 on tariff-fueled recession fears

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.

Pavel Mikheyev | Reuters

U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.

Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.

Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.

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Oil futures, 5 years

The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.

Environment

What EV sales slump? Illinois’ EV sales outpace the nation by 4:1

Published

11 hours ago

April 6, 2025

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What EV sales slump? Illinois' EV sales outpace the nation by 4:1

Chicago Drives Electric | ComEd Press Conference

Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.

Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.

Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)

What’s going on in Illinois?

File:Illinois Governor J. B. Pritzker (33167937268).jpg — Illinois Governor JB Pritzker at the Chicago Auto Show; by Ray Cunningham.

While President Trump and Elmo were running for re-election, they campaigned on the ~~threat~~ promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.

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At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).

We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.

SOURCES: Chicago Business, Ray Cunningham; featured image by the author.

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Environment

XCMG launches XE215EV battery swap electric excavator ahead of bauma

Published

12 hours ago

April 6, 2025

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

he XE215EV, XCMG’s fully electric hydraulic excavator, powers a new materials processing base in Guangxi with its green energy.

The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.

Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.

XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.

We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).

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XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?

Easy in, easy out

XCMG battery swap crane; via Etrucks New Zealand.

The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.

You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.

SOURCE | IMAGES: XCMG.

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