Grid operator in US Central States warns of rolling blackouts

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• Portugal and Morocco seek EU funding, private investors to build power link

  Portugal and Morocco said they would ask the European Commission to consider funding a long-promised power interconnector that connects the two countries. They will also explore private sector investment. The crippling power "blackout" in Spain and Portugal that occurred in April 2025 revealed the Iberian Peninsula’s limited electrical links with Europe. This helped revive plans for the Portugal-Morocco connection first studied in 2018. Iberia only has 3% of its total electricity capacity interconnected with neighbouring European countries. This is well below the EU's target of 15% for 2030. A link to?Morocco could strengthen the energy security of Portugal, which is currently only connected with Spain. It would provide an additional source of power in case of interruptions. Maria da Graca Carvalho, Portugal's Minister of Energy, said that Lisbon and Rabat had agreed to discuss the possibility of the power connection?being deemed an Important Project of Common European Interest. Carvalho stated that a new Europe-Africa electric connection would improve energy security and cooperation between the continents. Carvalho told reporters that he had decided to talk to the EC first to determine whether it is interested in taking this project on as an important European one. Portugal and Morocco are pursuing two tracks at the same time -- gaining access to the Connecting Europe financing facility and testing investor interest through a private-sector expressions of 'interest' process by grid operators and utilities. Carvalho stated, "We do not want to overcharge either our contributors or consumers." Benali stated that the two countries wanted to "ensure that we reduce costs,?especially affordability of energy access", for both populations as well as a number sectors. Carvalho stated that it was still too early to say whether the project would include a 'direct subsea cables between Portugal and Morocco, or use infrastructure via Spain which already has a electricity interconnection with this North African country. (Reporting and editing by Jan Harvey; Sergio Goncalves)

• How the Houthi blockade of the Red Sea strengthens Iran's grip over global energy supplies

  Houthis, who are allied with Iran, in Yemen, will blockade Saudi Arabia's maritime traffic, they announced on Monday. This would further restrict a global market for energy, which is already severely restricted due to Iran's closing of the Strait?of Hormuz. Why it matters, and what it means to the Iran War and the global energy crises: How big is the risk to global energy markets? It's not clear what the Houthis will do to blockade Saudi Arabia along the Red Sea Coast, their northern neighbor. Or if they would return to attacking shipping. Yemen is located on the strait of?Bab el-Mandeb - the southern entrance to the Red Sea - so closing it would create a 'new front' in the conflict between Iran and the U.S. and the energy crisis. The Red Sea is now a vital alternative outlet for Gulf Oil and other products, with Hormuz disrupted. If both major Middle East oil export routes were closed simultaneously, a serious disruption would be the result. The partial blockade of Iran's Strait of Hormuz by Israel and the U.S. after their attack on it on 28 February disrupted the majority of oil and other Gulf exports, causing prices to rise and a global energy crisis. Saudi Arabia responded to this by redirecting more than 70% its daily crude oil exports to Yanbu, a port on the Red Sea. Ships bound for Europe leave Yanbu via the Suez Canal. Those headed to Asia pass through Bab el-Mandeb. According to Kpler's and Signal Ocean's data, Yanbu has shipped an average of 4 million barrels per day over the past few weeks. This is up from 973,000 bpd one year ago. According to Kpler, the total petroleum volume transiting Bab el-Mandeb in June was 7.4 million bpd, which is about 7% global oil production. This represents an increase from 4.2 million bpd a year ago. This has helped to stabilize the global oil price by stabilizing the energy market. Last week, it was reported that Saudi Arabia is looking at expanding its crude oil pipeline along the Red Sea Coast. Gulf oil exports flowed freely when the Houthis attacked?Red Sea Shipping in November 2023. Who are the HOUTHIS and do they close RED SEA ENERGY routes on behalf of Iran? In the 1990s the Houthis were a military, religious and political movement that fought guerrilla warfare against the Sanaa government. Since more than a century, they have waged a civil war with the internationally recognized, Saudi-backed government and attacked Gulf neighbours using missiles and drones. The truce of 2022 between Yemen's warring parties largely held up until last week when Yemen's internationally recognised government claimed it had attacked Sanaa Airport to prevent an Iranian plane from landing. The Houthis claimed that Saudi Arabia was to blame and, in response, fired missiles into Abha Airport in the mountainous southwest of the Kingdom. In an interview with Press TV, a senior Houthi, politburo-member Mohammad al-Farah warned that if things continued to escalate, Bab el-Mandeb could be closed. Iran supports the Houthis in its regional "Axis of Resistance", including Lebanon's Hezbollah, and Iraqi Shiite militias. However, its ties to the Yemeni movement is less clear than those with these other groups. Houthis don't recognise Iran's supreme ruler as their ultimate authority religiously in the same manner that Hezbollah or Iraqi groups do. They are motivated primarily by domestic issues, even though they share Iran's ideology. Hezbollah is said to have helped Iran arm, fund and train the Houthis. The Houthis claim to be independent and do not accept that they are Iranian proxies. It is not clear to what extent the Houthis' stance on Bab el-Mandeb, the Red Sea and their own strategic priorities are influenced by Iran. What happened when the HOUTHIS attacked RED SEA SHIPS before? The Houthis started firing on Israel and ships in the Red Sea after the Hamas attack of October 7, 2023 and Israel's devastating Gaza campaign. They said they were doing this in support for Palestinians. The attacks caused a major disruption in global shipping. Maersk and Hapag-Lloyd, among other large companies, diverted around Africa, a route that was much longer and more expensive. Suez Canal Authority data show that the Red Sea traffic is still not recovering. The traffic through the Suez Canal in 2025 will be 52% lower than in 2023 and its lowest level in 50 years. The U.S. led mission to restore freedom of navigation in the Red Sea included repeated strikes against Houthi targets, and a defensive offensive that destroyed hundreds of drones. Some Houthi attacks continued until last summer. They only ended completely after the Gaza ceasefire. The Houthis announced last month that they would ban all ships from the Red Sea linked to Israel after Israel re-launched military attacks on Iran. Maersk announced this month that the threat never materialized and that Hapag-Lloyd and Maersk are now resuming certain Red Sea routes they abandoned last year during Houthi attacks. WHAT HAS THEIR ACTION BEEN DURING THE LATEST IRAN WAR? Hezbollah, the Iraqi groups and even the U.S. military joined the war with rocket and drone attacks after the initial U.S.-Israeli strikes against Iran. The Houthis were relatively quiet. Abdul Malik al-Houthi, the leader of the group, said on March 5, "Our fingers are ready to fire at any time if circumstances warrant it". Iranian commanders warned repeatedly that the Houthis might join the war. In late March and earlyApril, the Houthis launched some missiles and drones attacks against Israel. Esmaeil Quds Force Commander Esmaeil Quaani of the Revolutionary Guards Quds Force said on June 1, they could choke off Red Sea. It may have changed now with their announcement on Monday of the blockade against what they called "criminal" Saudi Arabia as retaliation to what they said the kingdom was sieging its ports and airports including last week's strikes. (Compiled and edited by William Maclean, Jason Neely and Angus McDowall)

• Maguire: ROI-America’s power grid chokes on expensive congestion

  The congestion on the U.S. electric grid is becoming a costly bottleneck. It drives up power prices, delays new generation projects, and undermines reliability. But the attention of the electricity industry is still largely focused on generation. Politicians debate?solar panel, natural gas turbines, and nuclear reactors, while utilities boast of billions of dollars in planned investments. PJM Interconnection is the largest U.S. electricity market, spanning 13 states. It provides a stark example. According to Gridraven, transmission congestion cost market players $777.8 in June. This was a drop from the?record-breaking $1 billion congestion bill during a heatwave in May, but it remains high. In just two months, the combined congestion charges amounted to $1.8 billion. GROWTH TREND It is the direction of travel, not the headline figure. The direction in which things are going is what's most worrying. In the coming years, congestion costs will likely become a greater burden for electricity producers and consumers if current trends continue. This is important because congestion acts as a tax against economic growth. Grid operators can't just dispatch the cheapest electricity available when transmission lines are overloaded. They are forced to use generators that are more expensive and located nearer to the demand centers. These costs are eventually passed on to customers through wholesale markets. Customers rarely see "congestion surcharges" on their electric bills. But they still pay. The problem becomes more acute as the demand increases at exactly the wrong time. Years ago, the U.S. demand for electricity was virtually flat. This allowed policymakers and utilities alike to put off difficult transmission decisions. This era is over. Construction of data centers is on the rise. The number of manufacturers expanding their domestic production is on the rise. State and utility companies continue to promote electrification in transport and heating. All of these trends are increasing demand for electricity and, more importantly, for the movement of it throughout the country. MISMATCH IN SUPPLY AND DEMAND Even more difficult is the geography of today's electricity system. The cheapest new generation is often located away from the major population centers. In rural areas, wind resources are most abundant. Solar power is often more efficient in areas where there is plenty of land than in places where electricity is consumed. The U.S. needs transmission infrastructure as much as they need generation infrastructure. Transmission development is notoriously slow. Permitting and building new high-voltage lines can take up to a decade. Projects are often delayed by local opposition, disputes over permits and battles about cost allocation. The demand for goods and services is growing, but it does not wait. PJM PAINPOINTS PJM is already experiencing the?consequences. Congestion in June was concentrated primarily in Pennsylvania, Maryland and Northern Virginia. These regions are at the intersection between rising electricity demand and transmission bottlenecks. Northern Virginia has been a major hub for the U.S. Data-center boom. It is clear that the billion-dollar event in May was not an anomaly. It may instead offer a glimpse at what the future of electricity markets will look like. This presents challenges to consumers and power producers alike. Even when the electricity demand is high, generators behind transmission restrictions may not be able to access all lucrative markets. Congestion can reduce revenues, distort signals of investment and reduce the value new generation projects. Many renewable developers are vulnerable, as they are far away from urban demand centers and rely heavily on transmission. DYNAMIC PROSPECTS FOR GROWTH Ironically, America is investing heavily in power generation but failing to make the most of it due to grid bottlenecks. This explains the interest in technologies which can extract more capacity from existing transmission infrastructure. Gridraven estimates Dynamic Line Rate technology could have?increased the available transmission capacity in PJM on average by 13% in June, resulting in savings of approximately $88.3 millions in congestion. The company, which models future transmission capacity using weather forecasts and AI, suggests that the most costly constraint in June was the?Graceton Manor 230-kilovolt Corridor, could have seen costs for congestion reduced by almost $36 million. It is not as important whether these estimates are accurate or not, but rather the message. Because it is so difficult to build new infrastructure, the industry is looking for ways to maximize existing grid capacity. Other firms have also developed hardware to increase capacity on existing transmission lines. These include Linevision which models transmission capacity using sensors and digital twins. These technologies could be helpful. They are unlikely to eliminate the problem completely. It's a sad fact that America's electric ambitions are growing faster then its transmission network. The country is aiming for AI leadership, increased domestic manufacturing, cleaner energie, a wider electrification, and stronger economic growth. Each of these goals will require more electricity to be flowing through the grid. Congestion costs will continue to rise until transmission expansion catches up. If PJM is any guide, then electricity consumers will soon find out that the most costly part of energy transition isn't producing power. It's moving. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.

• Maguire: ROI-America’s power grid chokes on expensive congestion

  The congestion on the U.S. electric grid is a costly bottleneck that drives up prices and delays new generation projects, while also compromising reliability. The electricity industry is still largely focused on the generation of electricity. Politicians debate solar panels, gas turbines, and nuclear reactors, while utilities boast of billions of dollars in planned investments. PJM Interconnection is the largest U.S. electricity market, spanning 13 states. It provides a striking example. According to a recent report from Gridraven, transmission congestion cost market participants $777.8 millions in June. This is down from the record-breaking $1 billion in May during a regional heatwave, but it remains high. In just two months, the combined congestion charges amounted to $1.8 billion. GROWTH TREND It is the direction of travel, not the headline figure. The direction in which things are going is what's most worrying. In the coming years, if current trends continue to be followed, electricity producers and consumers will likely face an increased burden of congestion costs. This is important because congestion acts as a tax against economic growth. Grid operators can't just dispatch the cheapest electricity available when transmission lines are overloaded. They are forced to use generators that are more expensive and located nearer to the demand centers. These costs are eventually passed on to customers through wholesale markets. On their electric bills, consumers rarely find a "congestion charge". They pay it anyway. The problem is getting worse because the demand is increasing at exactly the wrong time. Years ago, the U.S. demand for electricity was virtually flat. This allowed policymakers and utilities alike to put off difficult transmission decisions. This era is over. Construction of data centers is booming. Manufacturers are increasing domestic production. State and utility companies continue to promote electrification in transport and heating. All of these trends are increasing demand for electricity and, more importantly, for the movement of it throughout the country. MISMATCH IN SUPPLY AND DEMAND The modern electrical system is geographically complex, making the task even more difficult. The cheapest new generation is often located away from the major population centers. In rural areas, wind resources are most abundant. Solar power is often more efficient in areas where there is plenty of land than where the electricity is consumed. The U.S. needs transmission infrastructure as much as it needs generation infrastructure. Transmission development is notoriously slow. Permitting and building new high-voltage lines can take up to a decade. Projects are often delayed by local opposition, disputes over permits and battles about cost allocation. The demand growth is however not waiting. PJM PAINPOINTS The effects are already visible?across PJM. Congestion in June was concentrated primarily in Pennsylvania, Maryland and Northern Virginia. These regions are at the intersection between rising electricity demand and transmission bottlenecks. Northern Virginia has been a major hub for the U.S. Data-Center Boom. It is clear that the billion-dollar event in May was not an anomaly. It may instead offer a glimpse at what the future of electricity markets will look like. This presents challenges to consumers and power producers alike. Even when the electricity demand is high, generators behind transmission restrictions may not be able to access all lucrative markets. Congestion can reduce revenues, distort signals of investment and reduce the value new generation projects. Many renewable developers are vulnerable, as they are often located in remote areas far from urban demand centers. They are therefore heavily dependent on transmission availability. DYNAMIC PROSPECTS FOR GROWTH Ironically, America is investing heavily in power generation but failing to make the most of it due to grid bottlenecks. This explains the interest in technologies which can extract more capacity from existing transmission infrastructure. Gridraven estimates Dynamic Line Rate technology could have increased the available?transmission capability in PJM by averaging 13% in June, resulting in a congestion saving of approximately $88.3 millions. According to the company, which models future transmission capacity using weather forecasts and AI, the Graceton 230-kilovolt corridor, could have had congestion costs reduced by almost $36 million. It is not as important whether these estimates are accurate or not, but rather the message. Because it is so difficult to build new infrastructure, the industry is looking for ways to maximize existing grid capacity. Other firms have also developed hardware to increase capacity on existing transmission lines. These include Linevision which models transmission capacity using sensors and digital twins. These technologies could be helpful. They are unlikely to eliminate the problem completely. It's a sad fact that America's electric ambitions are growing faster then its transmission network. The country is aiming for AI leadership, increased domestic manufacturing, cleaner energie, a wider electrification, and stronger economic growth. Each of these goals will require more electricity to be flowing through the grid. Congestion costs will continue to rise until transmission expansion catches up. If PJM is any 'guide, then electricity consumers will soon find out that the most costly part of energy transition isn't producing power. It's moving. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.

• UOB Private bank appoints Judy Chan as the Hong Kong Business Leader

  UOB Private Bank (the wealth management arm of United Overseas Bank in Singapore) has appointed Judy Chan as managing director for Hong Kong. This appointment will take effect July 2026. The following is more information about the statement: Chan will report to Chew Mun Yew as the head of private banking for the group. She will oversee the local private banking team and lead the bank's work in Hong Kong with wealthy clients. Chan has over 30 years' experience in private and commercial banking. She has been in senior positions?managing teams, growing business?in key markets and advising on wealth planning and succession. * UOB Private Bank said that the appointment is part of its plan to grow in Hong Kong and serve more high net worth clients throughout Asia. (Reporting and editing by Jamie Freed; Yantoultra ngui)

• West Africa's ECOWAS group signss agreement supporting Nigeria-Morocco atlantic Gas Pipeline, reports a statement

  According to a Moroccan-Nigerian statement, member states of the Economic Community of West African States signed an intergovernmental agreement in 'Freetown on Sunday backing the 'Nigeria - Morocco Atlantic gas pipeline. According to a joint?statement?by Morocco’s hydrocarbons & mining agency ONHYM & Nigeria’s state oil firm NNPC, the pipeline will transport up to 30 billion cube metres (bcms) of natural gases a year through 13?West African nations to Morocco. The statement stated that 15 bcm of that capacity will be?available for Moroccan and European markets via an?existing pipe that links 'Morocco with Spain. The pipeline was agreed upon a decade earlier between the Moroccan King, and the Nigerian President. It would cover 6,900 km along a hybrid off-shore-onshore route, and cost an estimated $25 billion. The project has completed the feasibility study and front end engineering design (FEED). OnHYM told the public in April that the pipeline would help spur "economic integration" across West Africa, by facilitating industrial development and increasing electricity generation, while helping Morocco establish itself as an energy bridge between Africa, and Europe. According to the statement, the next step is the?signing a deal 'between Morocco and the gas-rich Mauritania.

• CPC: Caspian Pipeline Consortium suspends oil loadings after drone attacks on tanks

  CPC announced on Sunday that two?oil tanks were attacked by a gang of armed men at a terminal near the Black Sea coast in?Russia. Oil loadings have been suspended. CPC reported that the ASIA and NISSOS tanks were attacked during loading operations. CPC said that the ASIA tanker caught on fire and was put out. CPC employees and contractors were not injured or killed. CPC confirmed that there was no oil spill, adding that the tankers were still afloat. CPC has not identified any party responsible for the incident. In the past week, both Russia and Ukraine have intensified their attacks on ships in the Black and Azov Seas. The 'CPC' is a 1,510-mile (1,510-km) oil pipeline that connects Kazakhstan's Caspian Sea oil deposits to Russia's Black Sea port of Novorossiysk. The oil is then transported by 'tanker' to the world markets. CPC is responsible for 80% of Kazakhstan oil exports.

• Energy Ministry says Azerbaijan produced 13.3 million tonnes of oil and condensate from January to June.

  The energy ministry announced on Friday that Azerbaijan’s oil and condensate production fell from 13.7 million metric tons in the same period last year to 13.3 millions metric tons in this time frame. Azerbaijan’s gas production from January to June increased to 25.4 billion cubic meters from 25.2 billion cube metres in the same period last year, while oil exports fell to 10.2 millions tons from 11.6million tons, according to the report. BP, a British company, reduced its Azerbaijan oil?production to?7.9 millions tons from 8.0million tons a year ago. Gas exports into Europe dropped to?5.9 billion cubic meters from 6.1 billion cubic metres. The ministry reported that overall gas exports increased to 12.7 billion cubic meters (bcm) from 12.1 billion cubic metres. Gas exports to Turkey remained unchanged at 4.9 billion cubic meters, while those to Georgia increased to 1.2 billion cubic metres from 1.1 billion cubic metres. The TANAP pipeline increased gas deliveries to Turkey to 3.0 bcm, up from 2.9 bcm. The ministry reported that Azerbaijan exported 0.7 billion cubic meters of gas to Syria.

• CPC: Drones attack a Chartered Oil Tanker near a Black Sea Terminal, CPC claims

  CPC reported that two drones attacked and damaged an oil tanker, which was chartered to load oil at the Caspian Pipeline consortium terminal near Russia's Black Sea coast. ExxonMobil was said to have chartered the Suezmax class Nordic Zenith. CPC has not identified any party responsible for the incident. In the past week, both Russia and Ukraine have intensified their attacks on shipping in the Black Sea and Azov Seas. This marks a new phase in a war which has been fought mainly on the ground. CPC stated in a press release that a fire had broken out on the Nordic Zenith, but it was extinguished later. The statement said that nearby CPC vessels evacuated thirteen crew members, while nine other chose to stay on board. CPC announced on its Telegram channel that the tanker had been removed from the schedule of loading and was "unfit" for any moorings or loadings at the terminal. The 'CPC' is a 1,510-km (1,510 mile) oil pipeline that connects Kazakhstan's Caspian Sea oil deposits to Russia's Black Sea Port of Novorossiysk. The oil is then transported by tanker from Novorossiysk to the world market. CPC is responsible for 80% of Kazakhstan’s oil exports. At 'various points during the war, its operations were disrupted by Ukrainian attacks against?pumping station in Russia and drone strikes on the CPC load terminal near Novorossiysk.

• Telstra CEO points out undocumented change in software as cause of outage during Senate testimony

  Telstra CEO Vicki. Brady said on Friday that the outage last week at Australia's biggest telecoms.firm was probably caused by a.missed software update and an undocumented.design change.on a network.time-keeping.device. Last Wednesday's outage was the latest of a series that has hit Australia's telecoms sector in the last few years. It cut off phone service for thousands of customers and disrupted wireless payment systems. Optus, Australia's second largest telecoms company, experienced a?13 hour disruption in emergency call services, which may have led to four deaths. This was followed by a cyberattack in 2022 that exposed the personal information of millions of people and an outage in 2023, which left millions without internet or phone for a whole day. Brady stated in her opening remarks to the Senate that maintenance work on network timing and synchronisation gear triggered a software configuration which reset the device's time to 2006. Telstra's network was affected by this failure, resulting in voice and data services being disrupted, as well as calls to Triple Zero. This issue occurred because a design change made to the time-keeping system to correct a previous fault was not properly documented. The maintenance team did not know how the equipment would react when it was restarted. The device also lacked a software update. Brady said to the Senate that the outage might not have occurred if the software update had been completed or if the design change was properly documented and reviewed after the previous incident and reflected in the maintenance procedure. Our investigation will examine why the design change wasn't documented, why the software update wasn't completed, and what changes need to be made in our control systems so that known risks can be captured, prioritised, and closed before they affect customers. Brady moved to Telstra from Optus, owned by Singtel. (Reporting and editing by Vijay Kishore; Rajasik Mukherjee)

• Kuwait claims Iranian attack damages water desalination and power generation station

  Kuwaiti authorities reported?on?Friday that an Iranian attack?hit one of Kuwait's power generating and?water -desalination stations, causing a fire, damage, and the interruption of a number of electricity generation units. The Ministry of Electricity, Water and Renewable Energy reported that firefighters brought the fire under control, while technical teams assessed the damage, secured the station and worked to restore service as quickly as possible for the affected electricity generation units. Iran claimed to have launched a new attack on U.S. military facilities in the Middle East on Friday. This included 'the first direct attack on Syria, following a sixth night of 'U.S. Attacks on Iranian military installations. The?Irani military announced early on Friday that it had?attacked?U.S. Facilities in Bahrain and Kuwait. (Reporting and editing by William Maclean, Ahmed Elimam)

• Five thousand French without electricity after two deaths in France due to violent storms

  At least two people have died in violent thunderstorms that hit France overnight after a prolonged heatwave. French media and the local grid operator Enedis reported that 53,000 households had no power on Friday. * A woman was killed in Saint-Victurnien in central Haute-Vienne after a tree fell on her Thursday evening. In 'Dolomieu, to the east, a man died late Thursday night after a lightning strike ignited a fire in a workshop. Enedis, the grid operator, said that on Friday 53,000 households had lost?power. The cuts were mainly in the Auvergne-Rhone-Alpes region in the 'Southeast' and in Nouvelle Aquitaine to the 'Southwest. Meteo-France, the French weather service, lifted its orange alert on Friday for thunderstorms that had previously been reported in 'all departments' of Southeastern France.