2024-08-27 11:35

Aug 27 (Reuters) - PJM Interconnection, the largest U.S. power grid operator, issued a maximum generation alert for Tuesday due to expected hot weather across parts of the Eastern Interconnection. PJM is issuing the alert as a precautionary measure and no customer actions are required, the company said in a statement on Monday. WHY IT'S IMPORTANT PJM manages a large electric grid and competitive wholesale electricity market for parts of 13 states and the District of Columbia. A maximum generation alert is issued in advance of conditions that may require all generators to operate at their maximum output capability and that the use of additional emergency procedures may be implemented. This alert is aimed at owners of transmission and generation equipment, who will assess whether any scheduled maintenance or testing can be postponed or canceled to ensure the availability of all resources. CONTEXT The Biden administration said earlier this month that it was investing $2.2 billion to revamp the nation's power grid to protect it against growing threats of extreme weather events. BY THE NUMBERS PJM anticipates a peak load of approximately 149,100 megawatt (MW) on Tuesday and 151,300 MW on Wednesday. This summer's highest peak load so far was 153,400 MW, recorded on July 16. Last year’s peak demand was approximately 149,000 MW. Sign up here. https://www.reuters.com/business/energy/us-grid-operator-pjm-issues-maximum-generation-alert-ahead-hot-weather-2024-08-27/

2024-08-27 11:33

TOKYO, Aug 27 (Reuters) - Japan's Prime Minister Fumio Kishida said on Tuesday the relevant ministers will meet next week to discuss steps needed to secure local consent for restarting Tokyo Electric Power's (9501.T) , opens new tab Kashiwazaki-Kariwa nuclear power plant. Last December, the national nuclear regulator lifted an operational ban imposed in 2021 on the Kashiwazaki-Kariwa plant in northern Japan due to safety breaches, allowing Tepco to work towards gaining local permission to restart. Tepco has been eager to bring the world's largest nuclear power plant back online to slash operating costs, but still requires local consent. "The operator and the government must work together to gain local community support for the restart," Kishida told the Green Transformation implementation conference, a government official said. Kishida, who will step down in September, said: "I will make every effort during my remaining term to advance the green transformation, including preparing for the restart of a nuclear reactor in eastern Japan," according to public broadcaster NHK. It is rare for a ministerial meeting to focus on a specific power plant. The Kashiwazaki-Kariwa plant in Niigata prefecture has been offline since 2012, following the 2011 Fukushima Daiichi disaster, which led to the shutdown of all nuclear plants in Japan at the time. While Tepco received in 2017 initial regulatory approval to restart two reactors of the plant, it had not obtained local consent. Tepco needs consent from Niigata prefecture governor to resume operations. In March, the prefecture's governor said that more talks were needed over the possible restart of the plant. Japan has been able to restart only 12 reactors since 2011, with many operators still going through a re-licensing process to comply with stricter safety standards imposed after the 2011 Fukushima disaster. Sign up here. https://www.reuters.com/world/japan/japan-pm-kishida-hold-ministerial-meeting-tepco-nuclear-plant-restart-2024-08-27/

2024-08-27 11:15

Middle Eastern banks to provide funds by next fiscal year Talks to secure IMF bailout 'advanced', says central bank chief Pakistan's medium-term financing needs should be smoothly met Central bank 'understands' fiscal consolidation will continue KARACHI, Aug 27 (Reuters) - Pakistan aims to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year, the country's central bank chief told Reuters on Tuesday, as the country looks to plug its external financing gap. In a wide-ranging interview, his first with any media organisation since taking office in 2022, State Bank of Pakistan Governor Jameel Ahmad said Pakistan was also in the "advanced stages" of securing $2 billion in additional external financing required for International Monetary Fund approval of a $7 billion bailout program. Pakistan and the IMF reached an agreement on the loan program in July, subject to approval from the IMF's executive board and it obtaining "timely confirmation of necessary financing assurances from Pakistan's development and bilateral partners". Ahmad said he expected the country's gross financing needs would be smoothly met - both over the next fiscal year and in the medium term. In the past, Pakistan has relied on long-time allies such as China, Saudi Arabia and United Arab Emirates to 'rollover' debt rather than force a repayment crunch. Ahmad said he expected similar assurances would be given for the next three years, giving the government more time to get its finances in order. In addition, Ahmad said the central bank reckoned Pakistan's gross financing needs for the coming years would be lower than the 5.5% of gross domestic product projected by the IMF in its latest country report in May. "Pakistan’s external gross financing needs have been declining in the past few years," he said. "Since (the IMF's) assessment was based on a higher current account deficit than realized in fiscal 2024 and now projected for the next few years, we assess the ratio of gross financing needs to GDP to be lower than the 5.5% level." RATES AND INFLATION Asked about monetary policy, Ahmad said recent interest rate cuts in Pakistan have had the desired effect, with inflation continuing to slow and the current account remaining under control, despite the cuts. Pakistan's annual consumer price index inflation was 11.1% in July, having fallen from highs of over 30% in 2023. "The Monetary Policy Committee will review all these developments," Ahmad said, adding that future rate decisions could not be pre-determined. Pakistan's central bank cut rates for two straight meetings from a historic high of 22% to 19.5%, and will meet again to review monetary policy on September 12. There have been some concerns in markets that the government might take advantage of lower interest rates to borrow more, but the central bank chief said this was not his expectation. "We understand that the government will continue on the path of fiscal consolidation, notwithstanding the reduction in interest rates," said Ahmad. OVERCOMING CHALLENGES Ahmad, who was appointed governor of Pakistan's central bank for a five-year term in August 2022, said his first year had been 'quite difficult'. In 2023, Pakistan faced an acute balance of payments crisis with only enough central bank reserves to cover a month of imports. After eight months of tough negotiations over fiscal discipline, the IMF threw Pakistan a lifeline in the form of a nine-month $3 billion bailout program. "Last year was much better," said Ahmad. "Now everything is under control from an external account management perspective." Ahmad said the central bank would now focus on growth, digitalisation and financial inclusion. "Those are also equally important for job creation and other socioeconomic issues," said Ahmad, noting the bank's mandate was to ensure price and financial stability before shifting its focus to growth. Sign up here. https://www.reuters.com/world/asia-pacific/pakistan-aims-secure-4-bln-middle-eastern-banks-says-central-bank-chief-2024-08-27/

2024-08-27 11:13

Aug 27 (Reuters) - U.S. Customs and Border Protection has detained nearly $43 million in shipments of electronics equipment from India since October under a 2022 law banning goods made with forced labor, according to agency data, representing a new focus for the trade enforcement agency. While CBP does not specify what types of electronic equipment it has detained, polysilicon, a raw material in solar panels, is identified as a high-priority sector in the Uyghur Forced Labor Prevention Act (UFLPA), and solar panels have historically made up most of the stopped shipments in that category, according to industry sources. The CBP did not immediately respond to a request for comment. The law bans goods made in China's Xinjiang region where Chinese authorities are reported to have established labor camps for ethnic Uyghur and other Muslim groups. China denies any abuses. No Indian electronics shipments were detained under the UFLPA in previous years. Nearly a third of the detained Indian electronics shipments were denied, according to CBP. By comparison, just 5.4% of shipments from top U.S. solar component suppliers Malaysia, Vietnam and Thailand were denied entry over that period. The Indian detentions represent a small share of the $3 billion in electronics shipments CBP has stopped at the border under the UFLPA in the last two years. But they are a setback for Indian producers seeking to cast themselves as an alternative for U.S. solar project developers weary of navigating tariffs and UFLPA enforcement delays on panels made by mainly Chinese companies. "If the solar cells for Indian panels are coming from China, then there is likely a good reason why detentions of Indian products may be increasing," said Tim Brightbill, a trade attorney with Wiley Rein LLP. "My sense is that Customs and Border Protection did not realize for a while that many Indian solar panels contained Chinese solar cells, and therefore the UFLPA risks were (and are) high." Imports of solar products from India have soared in recent years, hitting $2.3 billion last year, according to U.S. trade data. In the second quarter of 2024, India accounted for 11% of U.S. panel imports, more than double its share in the previous quarter, according to S&P Global Market Intelligence. As recently as 2018, the U.S. was not importing any solar panels from India. The increased scrutiny of Indian shipments is a reflection of the border agency's recent efforts to broaden UFLPA enforcement beyond just the biggest China-based solar panel makers, which have replaced their Chinese polysilicon suppliers with sources from the United States and Europe in a bid to avoid their shipments being detained, according to a trade attorney. "Indian module manufacturers found an opportunity to import more at a time when the Chinese manufacturers were being held up because of UFLPA," Richard Mojica, a trade attorney with Miller & Chevalier in Washington said. Waaree Technologies (WAAR.BO) , opens new tab and Adani Enterprises (ADEL.NS) , opens new tab are the top Indian solar suppliers to the U.S. market. A spokesperson for Adani confirmed that some of its shipments had been detained and that all had been released. "This outcome reaffirms that our products imported into the U.S. fully comply with UFLPA regulations, reinforcing customer confidence in the quality, reliability and legal adherence of our products and manufacturing," the spokesperson said. Waaree did not respond to requests for comment. Sign up here. https://www.reuters.com/business/energy/indian-solar-panels-face-us-scrutiny-possible-links-china-forced-labor-2024-08-27/

2024-08-27 10:59

BENGHAZI, Aug 27 (Reuters) - Several oilfields across Libya have halted output as closures spread, engineers said on Tuesday, amid a dispute over control of the central bank and oil revenue. Presidency Council head Mohammed al-Menfi in Tripoli had issued a decision to replace central bank head Sadiq al-Kabir and the bank's board - which the parliament in the east rejected. On Monday, authorities in the east, where most of the oilfields lie, threatened to close them all, stepping up their standoff with the internationally recognised government in Tripoli, which depends heavily on the fields for its revenues. There has still been no confirmation of any closures from the Tripoli-based government, or from the National Oil Corp (NOC), which is in charge of oil resources. However, engineers at the southeastern Amal and Nafoora oilfields told Reuters production had been halted, while engineers at Abu Attifel, also in the east, said output was reduced. Engineers at the southwestern El Feel oilfield also said output had been halted. The field, which has a capacity of 70,000 barrels per day, is operated by Mellitah Oil and Gas, which is a joint venture between NOC and Italy's Eni (ENI.MI) , opens new tab. The government in Benghazi is not internationally recognised, but most oilfields are under the control of eastern Libyan military leader Khalifa Haftar. Haftar said in a statement on Monday that the central bank should not be tampered with, rejecting what he called "illegal actions taken by entities that lack legitimacy and authority". Meanwhile, the Tripoli-based prime minister, Abdulhamid al-Dbeibah, said in a statement that oilfields should not be allowed to be shut down "under flimsy pretexts". Later, the speaker of the eastern-based parliament, Aguila Saleh, said that oil and gas flows would remain on hold until the central bank governor resumed his legal duties, to preserve the wealth of the Libyan people "from tampering and theft". He added in remarks to the press that "the appointment of the governor is not within the jurisdiction of the Presidential Council at all, and what the council did is in violation of the law". NOC subsidiary Waha Oil Company had said on Monday it planned to gradually reduce output and warned of a complete halt to Libya's production, citing unspecified "protests and pressures", while another subsidiary, Sirte Oil Company, also said it would cut output. The NOC declared force majeure earlier this month at one of the country's largest oilfields, Sharara, located in Libya's southwest with a capacity of 300,000 bpd, due to protests. The force majeure is still in force. Libya's overall oil production was about 1.18 million barrels per day in July, according to the Organization of the Petroleum Exporting Countries, citing secondary sources. Brent crude prices were down slightly on Tuesday trading at about $81 a barrel, after rebounding more than 7% over the previous three sessions on supply concerns partly prompted by concerns over the impact of Libyan shutdowns. Sign up here. https://www.reuters.com/world/africa/two-oilfields-southeast-libya-shut-down-engineers-say-2024-08-27/

2024-08-27 10:27

MUMBAI, Aug 27 (Reuters) - The Indian rupee ended marginally lower on Tuesday as weakness in its Asian peers and dollar demand from importers pushed the currency back towards its weakest level on record. The rupee closed at 83.9250 against the U.S. dollar, within touching distance of its all-time low of 83.9725 hit earlier in the month. The unit closed at 83.90 in the previous session. Asian currencies slipped, with the Philippine peso down 0.5% and leading losses, while the dollar index was at 100.8, hovering close to its weakest level since December. While there has been sustained demand for the greenback from importers, lack of strong inflows and exporters holding back on dollar sales have maintained pressure on the rupee, an FX salesperson at a foreign bank said. Despite its Asian peers having risen between 0.2% and 5% over August so far the rupee's gains have largely proven to be fleeting even as the dollar has dropped 3% this month in the lead up to rate cuts kicking off in the United States next month. Investors are currently pricing in 100 bps worth of policy easing by the U.S. Federal Reserve over 2024. "While the consensus trade in the FX market near-term is to sell dollar rallies, we haven't really had a rally big enough to sell into," Societe Generale said in a note. The dollar's direction from here will depend on the labour market data at the start of September, the note said. Investors await the U.S. non-farm payrolls report on Sept. 6 to gauge whether the central bank will cut rates by 50 or 25 basis points (bps). The rupee, meanwhile, is unlikely to gain much from weakness in the dollar as the Reserve Bank of India is expected to step in to prevent any undue appreciation in the already overvalued local currency. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-slightly-lower-importer-dollar-bids-weak-asia-fx-weigh-2024-08-27/