Regulation & Policy

The Danish government pledges the country can rely entirely on renewable energy by 2050, however gas-fired power generation and increased interconnection capacity are vital to balance electricity supply and demand. "Gas will be needed as a backup for renewable energies, but we are working on replacing natural gas with biogas and other renewable gases," Marlene Hein Nybroe, gas development and preparedness manager at Energinet DK told Gas-to-Power Journal.

The Spanish Congress of Deputies supports the timely introduction of a new cogeneration tariff, with Acogen, Spain's cogeneration association, calling the congress support a "very positive step". Investment into new CHP plants in Spain has come to standstill, following the decision of Spain's government to enact a temporary halt to new feed-in-tariff contracts for renewable energies starting January 2013.

The share of gas-fired power generation in the U.S. energy mix is set to rise as the first carbon pollution standard issued by the U.S. Environmental Protection Agency (EPA) entrenches the current cost advantage for natural gas over coal.

The rulemaking only concerns new generating units that will be built in the future, and does not apply to existing units already operating or units that will start construction over the next 12 months, EPA said today.

The majority of Europe's gas-fired power plants will be unready or unable to use carbon capture and storage (CCS) technology by 2030 without a U-turn in Britain's energy policy, Green Alliance said in a report published late Tuesday. The lobby group warns further delays in CCS will jeopardise the U.K.'s climate goals.

California Public Utilities Commission (CPUC) has approved a resolution on ordering California's three investor-owned utilities (IOUs) - Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric - to finalise the contract with Calpine Corporation's Sutter Energy Center within the next 30 days.

India's Central Electricity Agency (CEA) has spoken out against the construction of any new gas-fired power plant in the country until 2015-16, as restrained domestic production of natural gas is hampering reliable gas supply for power generation.

Operators of gas-fired plants should be allowed to resell natural gas hubs back to virtual trading hubs as a way of offering demand-side responses on balancing platforms, Eurelectric said in a gas strategy paper today.

Spain's National Energy Commission (CNE) is calling for an increase in electricity prices paid by consumers to curtail Government debts worth €24 billion. The so-called 'tariff-deficit' piled up over the past 10 years as utilities had to sell electricity to end-customers at regulated rates below nominal generation and distribution costs.

German E.ON, Italian Enel, Swedish Vattenfall and Swiss Alpig have launched Afiegm, an energy lobby group, urging the French governments to open France's power generation market and to curtail the dominance of EDF. "The question of competition concerns not only supply but also equally production," Afiegm chairwoman Fleur Thesmar said.

Investment in new gas-fired and nuclear plants, rather than wind power, could save the U.K. £45 billion in meeting its 2050 carbon reduction, AF Consult, a Sweden-headquartered technical consultancy, said in a recent report sponsored by the global accountancy firm KPMG.

The U.S. Clean Heat & Power Association (USCHPA) is backing the Smart Energy Act that set a national goal to double the amount of power generated by combined heat and power systems to 170 GW by 2020. The technical potential for additional Combined Heat and Power (CHP) plants at existing sites in the U.S. is between 130 and 170 GW, plus an additional 10 GW of waste heat recovery, according to USCHPA estimates.

In an effort to end shortages of gas supply to power plants, Nigeria's Petroleum Minister, Diezani Alison-Madueke, has called on energy companies to comply with the country's new gas price regime. The Government is concerned that gas companies are not implementing the new, higher price regime that had been designed to attract investment to Nigeria's domestic gas-to-power sector.

Pöyry Energy Consulting calls for a marked-based alternative to introducing formal capacity payments under the UK Electricity Market Reform (EMR). "Market-traded reserve products combined with imbalance prices could deliver a better outcome to support flexible power generation capacity," James Cox, Principal Consultant at Pöyry Energy Consulting told 'Gas-to-Power Journal'.

The new UK energy minister, Charles Hendry, has criticised proposals and time-schedules of the European Commission's (EC) energy infrastructure plan as "overly prescriptive".

A rise in gas-to-power generation would be a bet on the failure of U.K. energy policies under the Electricity Market Reform that favour renewables and nuclear energy, Pierre Noel, senior researcher at the Energy Policy Forum at the University of Cambridge said today. Calling for a level playing field for all power generation technologies, Noel opposed the introduction of subsidies for capital-intensive technologies that infringe on the role of gas in the European energy mix.