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What could be causing the Iberian Power Outage?
A massive blackout in Spain, Portugal, and parts of France has halted trains and bank machines, as well as traffic lights. It was one of the biggest power system failures ever seen in Europe. Cyber Attack? The Spanish grid operator Red Electrica has ruled out cyber attacks as the cause, but the High Court of Spain said that it will open an investigation in order to determine the reason. Spain's Prime Minister Pedro Sanchez Red Electrica said on Tuesday that just because it had ruled out any cyber attacks on its systems did not mean they could not have occurred. EXPLAINATIONS SO FAR Red Electrica reported that it had identified at least two incidents in southwest Spain of power loss caused by solar plants. This led to instability in the electrical system, and a breakdown in its interconnection with France. Electrical system collapsed, impacting both Spanish and Portuguese systems. During the power outage, Spain exported electricity to France and Portugal. The exports to France reached close to their net export capacity up to 1000 local time. Red Electrica data shows that exports to France ceased at 1235 local times, from 868MW earlier. On Tuesday, EU Energy commissioner Dan Jorgensen announced that the European Union would begin a comprehensive investigation into the power outages occurring in Spain and Portugal. The Spanish grid is connected to those of France and Portugal as well as Morocco and Andorra. What causes power outages? Extreme weather conditions such as high winds, storms or lightning are the most common causes of unplanned power cuts that disable electricity on a wide scale. At the time of the collapse on Monday, it was a fair day. When there are faults in power stations, distribution lines, or substations, they can cause power outages. To ensure stability, the flow of electricity between systems is kept at 50 Hertz. Backup systems will disconnect power generation sources and other assets from the grid if that level changes. SPAIN'S ENERGY MULTIPLE Data from the think tank Ember show that Spain is among Europe's largest producers of renewable energy. It relies on wind and sun for 43%, which is well above the average global rate. Red Electrica's data shows that solar photovoltaic (PV), wind, and nuclear power plants made up 59% of Spain’s electricity during the blackout. Solar PV was 50%, wind 3% and nuclear almost 15% on the same date last year. The data revealed that in just five minutes between 1230 and 1035 local time (1030-1035 GMT), on Monday, the solar PV production dropped by over 50%, from 18 gigawatts to 8 GW. The cause of the drop is unknown. What factors could be involved? Experts and industry sources stated that the Spanish grid had very little inertia. Inertia is the energy stored in large rotating steam or gasoline turbine driving and rotating generators. It acts as a cushion as it can be quickly used to compensate sudden changes in supply or demand. Solar provides a small rotating mass for the grid. Around 5% of Monday's electricity was generated by gas-fired generators. In Spain, coal generation will be phased out by 2025. The largest coal-fired plant in Spain was shut down last year. How can power be restored? A "black start" is the process of restoring electricity after a major outage. This involves slowly restarting each power plant and reconnecting it to the grid. Spain increased its power imports and turned on more hydropower and gas plants as it tried to regain power. EXCESS RENEWABLES? The collapse on Monday has led to a debate over whether the volatile supply of solar and winds has made Spain's electricity systems more susceptible to an outage. The Prime Minister Sanchez stated on Tuesday that there is no problem with excess renewable energy. He added that the demand was low at the time of blackout and there was an ample supply. EU Commissioner Jorgensen The cause of the blackout can't be attributed to a particular energy source. The rapid growth of renewables has led to grid overloads during periods with high sunlight and low demand. Wholesale electricity prices have sometimes fallen to zero or even negative, forcing solar farms into a reduction of their output. Analysts predict that solar farms will continue to expand in Spain and Portugal, resulting in a rise in negative price-hours in 2025 (reporting by Nina Chestney and Pietro Lombardi; editing by Jason Neely and Susan Fenton; and Gareth Jones).
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Orient Overseas, a logistics firm, orders 14 container ships worth $3.08 Billion.
Orient Overseas International, a Hong Kong listed company, announced on Tuesday that 14 container ships worth $3.08 billion were ordered by its units from China COSCO Shipping Corp. Container transport and logistics companies said the vessels equipped with methanol-dual-fuel engines will boost competitiveness in traditional markets and lower costs. A unit of the state-owned China COSCO Shipping Corp. will construct nine vessels. An associate will build all the other vessels. China COSCO Shipping Corp. also owns Chinese container shipping company COSCO Shipping Holdings. Orient Overseas said it plans to borrow and use external debt to fund 60% of the cost per vessel. The remaining 60% will be funded by internal resources. The vessels are expected to be delivered between 2028 and 2029. (Reporting and editing by Vijay Kishore in Bengaluru, with John Biju reporting from Bengaluru)
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House Republicans propose new $200 fee for electric vehicles and $15 billion to control air traffic.
As part of a tax reform package under consideration, the U.S. House Republicans propose $15 billion for new funding to reform air traffic control and a $200 new fee on electric vehicles. Sam Graves will present his proposal to the House Transportation and Infrastructure Committee, which is headed by him. The proposal calls for new funding up to 2029, including for the replacement of aging infrastructure such as air traffic towers, radars and telecommunications systems as well as for $1 billion in air traffic controller hiring. Joe Biden, the then-president of the United States at that time, proposed in March 2024 to spend $8 billion for five years on replacing or modernizing more than 20 air traffic control systems and 377 radar systems. The FAA has a quarter of its facilities that are at least 50 years old. Aging systems have caused delays on numerous occasions, including the major issue in Newark Monday. The bill proposes also a new electric vehicle fee of $200, because the majority of federally funded road repair revenue is raised through gasoline and diesel taxes that EV drivers don't pay. The bill also proposes a $100 hybrid fee and a $20 federal registration fee for all vehicles beginning in 2031. These fees would generate at least $50 billion in ten years to repair highways. Some states charge electric vehicle fees to cover the costs of road repairs. Congress has not raised fuel taxes in the last 30 years to cover rising road repair costs. In February, some Republican senators proposed a Taxes on electric vehicles for road repairs: $1,000 Since 2008, over $275 billion in general funds has been diverted to road repair. Transportation Secretary Sean Duffy intends to ask Congress to provide tens billions of dollars over a five-year period to upgrade the Federal Aviation Administration's air traffic control infrastructure, and to increase hiring. Flights have been delayed due to a persistent shortage of controllers. In many locations, controllers work six-day weekends and mandatory overtime. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing levels. Safety incidents such as the collision of an Army helicopter with an American Airlines on January 29, which killed 67, and other accidents have led to calls for reform. On Tuesday, a coalition of aviation groups that represents airlines, manufacturers and labor unions called Graves’ proposal “a much-needed downpayment” on achieving the benefits for Americans who fly or ship goods every single day. (Reporting and Editing by Peter Graff. David Shepardson)
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Sources: China waives tariffs against US ethane imports
Two sources familiar with the matter confirmed on Tuesday that China had waived the 125% duty on imports of ethane from the United States, imposed earlier in the month. Ethane is one of a number of products which have been exempted. This move will relieve pressure on Chinese companies that import U.S. Ethane for petrochemical manufacturing as well as providing an outlet for natural gas liquid (a by-product of U.S. Shale Gas production). Sources said that the tariff on ethane was waived recently. One source said that the waiver had not been announced publicly. Due to the sensitive nature of the issue, they declined to give their names. After office hours, it was impossible to reach the China Customs and China Ministry of Commerce. Last week, it was reported that certain pharmaceuticals, aerospace and semiconductor products were also affected. You can also get a grant Tariff exemptions are being offered by Beijing to try and reduce the economic impact of the trade war between the United States and China. China raised its duties on U.S. imports, including ethane to 125% in early this month. It was a response to President Donald Trump's decision that the No. 2 economy of the world should be singled out for higher duties. 2 economy for higher duties. According to the U.S. Energy Information Administration, China purchases nearly half of U.S. exports of ethane, which reached a record 492,000 barrels a day in 2024. EIA predicts that U.S. exports of ethane will increase to 530,000 barrels per day in 2025, and 630,000 in 2026. Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are among the Chinese ethane importers. The U.S. exporters include Enterprise Products Partners, Energy Transfer, and Energy Transfer.
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Outage traps Portuguese and Spaniards, who are unable to pay their bills and feel powerless
The massive power outage on Monday reminded the Portuguese and Spaniards of their dependence on electricity in modern life and how they can be rendered helpless in an instant. Some people were trapped in lifts during the eight-hour power outage that began around midday. Others had to descend multiple flights of stairs with their phones as light. Metros and trains came to a complete halt. People were either trapped in carriages for hours by electric doors, or forced out to walk, jump over the tracks and pick their way across. Ana Cordero, a Puerto Rican tourist, was stranded for three hours on a train heading to Barcelona before she was evacuated. She could not access any information other than a message over the train's tannoy stating that there was a blackout. She said that the staff opened the toilets to people, but the battery of the train died. "It was so stupid, because everything was electronic." "Even to wash your hand, you had press a button but it didn't work," Cordero stated. As people tried to contact loved ones or schools for their children, phone and internet signals dropped and then disappeared completely. Many people who were desperate to get news turned to their car radios or analogue ones if they had them. They could not receive the news on their mobile phones or websites. Traffic lights were out of order and people had difficulty navigating without the aid of mapping apps. Many garages were closed off by electric gates and doors, so not everyone was able to get their cars. No Cash? No Cash? Taxis were unavailable, and those who tried to use them were turned away for not having cash. They were also forced to barter with the driver to pay later. Many supermarkets were unable to accept payments and closed, while others quickly ran out basic supplies such as milk, bread, and water. It's a good reminder of how dependent we are on technology and electricity, even just the basic connections. They're so important to our daily lives," said Albert Fernandez (26), an engineer who was in a queue outside a Barcelona electronic store trying to access its wifi. Locals and tourists found out that electronic locks on the doors of their accommodations prevented them from getting in. Visitors were checked in by torchlight at a guesthouse located in Ronda, south Spain. Owners of bars, restaurants and food stores were concerned about the costs of perishable products that had been left in refrigerators and freezers. Some opened their doors to customers and only accepted cash, while others shut down. People who depend on home medical devices, such as oxygen concentrators that have finite backup power sources, and people using mobility aids such as wheelchairs were among the worst affected. Lola Diaz Fernandez (58) was stuck in the Valencia train station after her train to Madrid was delayed. She was allowed to spend the night in the station, along with others who had mobility issues. She said, "I have problems with inflammation of my legs when I sit for long periods." "Thank goodness, I was able to stay here because there were adapted toilets. It'll probably take me a few days to recover. Andrei Khalip, a deputy bureau chief in Lisbon who uses a wheel chair, was left without electricity for 11 hours. He was trapped in his apartment because the lift had broken down. He said: "The worst part was that I couldn't work because of the fact that my phone signal would not come through. The feeling of dependence on electricity and communication networks and realising how much we depend on them made me feel helpless." Enjoy a Day Off Unexpected afternoons off from work or study allowed many Spaniards to enjoy the best of what the country is known for. This included sunlit squares and drinks on terraces. Games were also played and people got together with their neighbours at spontaneous street parties. Friends shared photos on social media when power was restored. They returned to playing board games such as Scrabble, without being distracted by mobile phones. And they ate family dinners on gas stoves, with candlelight. Some people posted that the blackout demonstrated the need to stockpile emergency supplies, which the European Union had said that citizens should do in the event of natural disasters or cyber attacks. As the lights twinkled across Madrid, residents screamed and clapped in relief. Reporting by Iberia Bureau, writing by Aislinn laing; editing Alexandra Hudson
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Sources say that China has waived tariffs on US ethane imported from the US
Two sources familiar with the matter confirmed on Tuesday that China had waived its 125% tariff imposed on the United States' ethane imports earlier this month. This move will relieve pressure on Chinese companies that import U.S. Ethane for petrochemical manufacturing as well as providing an outlet for natural gas liquid (a byproduct from U.S. Shale Gas production). Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are the main ethane importers from China. The key U.S. ethanol exporters include Enterprise Products Partners, and Energy Transfer. According to the U.S. Energy Information Administration, China purchases nearly half of U.S. exports of ethane. China raised its duties on U.S. imports, including ethane to 125% in early February, as a response to President Donald Trump's decision that the No. 2 economy of the world would be subject to higher tariffs. Sources said that the tariff on ethane has been reduced in recent days. Beijing has granted exemptions from tariffs for some products, including microchips, aircraft engines, and pharmaceuticals. The city is now asking companies to identify the critical goods that they require. This was reported by Friday. Reporting by Siyi Liu and Trixie Yap; Editing by Susan Fenton
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Sources: Commonwealth LNG and Malaysia's Petronas in talks to supply term-based LNG
According to four sources familiar with the matter, the Malaysian state-owned company Petroliam Nasional (or Petronas) is in discussions with Commonwealth LNG about buying liquefied gas from its Cameron, Louisiana facility. Petronas has been in discussions with Commonwealth LNG to purchase at least 1 million metric tonnes per annum of LNG. Two of the four sources declined to identify themselves as they weren't authorised to talk to the media. One source said that the talks are advanced for at least one mtpa. Several Asian nations plan to increase the contractual purchases of U.S. LNG in order to reduce the imbalanced trade with the United States, and avoid high reciprocal tariffs. Petronas previously stated that it would be expanding its global LNG pipeline to meet the growing demand and that some of its U.S. contracts may be sold on the spot market in Europe or Asia. Commonwealth LNG and Petronas have not responded to requests for comments. Commonwealth LNG is building a 9.5mtpa LNG facility in Cameron, Louisiana. The U.S. Department of Energy granted it an export license in February after waiting almost two years under the Biden Administration. Commonwealth has reported an increase in the interest of prospective buyers after obtaining its export license. About 8 mtpa is currently under contract with Woodside Energy or being considered, including 2.5 mtpa and 2 mtpa from Private equity firm Kimmeridge which has acquired 90% of Commonwealth LNG. Petronas signed 20-year contracts for LNG at Venture Global's Plaquemines plant and with Cheniere Energy. Petronas also signed in December a 15-year agreement with ADNOC to supply 1 mtpa LNG. Deliveries are expected to begin as early as 2028. (Reporting from London by Marwa Rashed, Curtis Williams and Emily Chow; editing by David Evans).
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Maersk maintains all trans-Pacific voyages despite trade and tariff uncertainty
Maersk announced on Tuesday that it has maintained all of its trans-Pacific sailings, even though some vessels have been reduced, despite the uncertainty created by U.S. tariffs on imports and the U.S.-China trade war. Hapag-Lloyd, the German container carrier, said last week that 30% of its customers have cancelled shipments from China to the United States due to the trade war between the two world's largest economies. Maersk's customers who ship from China to the United States have different ways of dealing with the uncertainty. "Some choose to continue with their plans, while others decide to ship from or to other markets. A third group of customers will store shipments at the origin in anticipation for a resolution in the future," the company stated in a press release. The company said that it would continue to evaluate the situation, and adjust its services in accordance with the demand between China and the U.S. This includes continuing the practice of substituting larger vessels with smaller vessels. Trump's policy currently includes tariffs of 10 percent on most goods imported from other countries, and a 145% duty on products from China. China and other countries have retaliated with tariffs against U.S. products. Beijing has exempted some U.S. imported goods from the 125% tariffs. (Reporting and editing by Jacob GronholtPedersen.)
Honeywell leads first-quarter aerospace results
Honeywell's revenue and profit for the first quarter of 2018 exceeded Wall Street expectations on Tuesday as a lack of new aircraft fueled demand.
The shares of the industrial giant and aerospace company rose by 5.5% during premarket trading, as the company raised its lower-end profit expectations for the year.
Honeywell's projection, which takes into account the impact of tariffs on demand and the global uncertainty, shows confidence in Honeywell's ability to cushion this hit thanks to the rising sales of firms that provide parts and jet maintenance services.
The airline industry has had to fly older, more maintenance-intensive planes, while an attempted production rampup by planemakers has resulted in a surge of orders for parts suppliers.
While the U.S. President Donald Trump has imposed tariffs on metals like aluminum and steel, along with high tariffs against countries such as China, they have threatened to increase costs and put pressure on an already stressed supply chain.
Honeywell expects to achieve adjusted profit per share between $10.20 and $10.50 in 2025. This is a significant increase from its previous forecast between $10.10-10.50.
The company has, however, slightly reduced its sales projection for the year. It now expects between $39,6 billion to $40.5 billion compared with its previous guidance of $39.6 and $40.6 billion.
In the first quarter, sales at its largest revenue generator, the aerospace division, increased by about 14%, to $4.17 Billion.
Honeywell announced in February that it will separate its automation and aerospace businesses. The separation is expected to be completed in the second half 2026.
LSEG data shows that the company's total sales for the quarter rose by about 8%, to $9.82 Billion, compared with an expectation of $9.59 Billion. The adjusted profit per share was $2.51, which beat the Street estimate of only $2.21. (Reporting by Utkarsh Shetti in Bengaluru; Editing by Arun Koyyur)
(source: Reuters)