US utilities to benefit from data center demand in the second half
After striking several supply agreements during the second quarter of 2018, U.S. Electric utilities were bullish about the demand for data centers that are driving the artificial intelligence boom. This reinforced market expectations regarding sales growth throughout the year. Several top utilities, such as American Electric Power, NextEra Energy and others, have signed contracts during the recent quarter, while other companies have expressed interest in technology. Timothy Winter, Gabelli Funds portfolio manager said: "We began to see some clarity regarding data center opportunities.
Panama, U.S. to Sign Pact to Expand Regional Access to LNG
Panama on Friday will sign an agreement with the U.S. Treasury and Energy departments aimed at paving the way for more private investment to expand the importation and distribution of U.S. liquefied natural gas in Latin America.David Malpass, Treasury undersecretary for international affairs, said he hopes the "framework agreement" is the first of several with countries in the region to encourage investment to increase access to cheaper, cleaner energy.The agreement is part of a Treasury-led initiative called America Crece, incorporating the Spanish word for growth, aimed at boosting U.S.
Chile Exports Electricity to Argentina for First Time
Chile begun selling electricity to neighboring Argentina for the first time ever on Friday, said local power producer AES Gener SA, which owns the transmission line used for the transfer. Last June, Chile's government authorized AES Gener, a local unit of U.S. power group AES Corp, to transfer electricity back and forth with neighboring Argentina through one of its transmission lines. AES Gener said integrating the power grids in Chile and Argentina will improve energy safety and optimize operating costs on both sides of the Andes.
Brazil Gives Go-ahead to 29 New Power Plants
Brazil gave the green light on Friday for the construction of 29 new power generation facilities in the country, awarding licenses for windmills, small hydropower plants, biomass and gas-fueled installations expected to cost around 2.5 billion reais ($716 million). According to the power sector regulator Aneel, 669.5 megawatts (MW) of capacity were auctioned off, resulting in an average price of 188 reais per megawatt-hour ($53.88 per MWh). Wind farms will account for the bulk of the new supply expected to be added to the national grid in 2018, accounting for 538 MW of the new capacity.
Brazil's Aneel Grants AES Eletropaulo Rate Hike
Brazil's power sector regulator Aneel on Tuesday granted a 15.23 percent rate rise to Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, a power distribution company controlled by AES Corp, for the next four years. Aneel conducts a re-evaluation of pricing for power distribution companies every four years, adjusting for items such as rates of return. Prior to the announcement, Eletropaulo had requested Aneel to validate an increase of around 15 percent in rates. (Reporting by Marcelo Teixeira)
California Has Enough Power for Summer Air Conditioning Demand
California will have enough power to meet air conditioning demand this summer despite continued low hydropower supplies due to an ongoing multi-year drought. The California Independent System Operator (ISO), the power grid operator for most of the state, said in a statement released late Thursday that the grid will benefit from new generation, mostly solar, stable imports and moderate peak demand growth. "It is always a challenge to operate the grid under the high loads produced by sweltering summer temperatures…
Energy Firms Lose Round vs. NYC Funds in Proxy Access Battle
Exxon Mobil Corp and three other large energy companies failed to block shareholder resolutions on director nomination rules put forth by New York City pension funds, making it more likely investors will get to vote on the hot issue this spring. The Securities and Exchange Commission rejected requests by Exxon, Chevron Corp AES Corp and Southern Company for permission to skip votes on the proposed new rules, according to agency documents. The rulings were a win for New York City Comptroller Scott Stringer, who oversees funds with $163.4 billion in assets.
