Energy Storage

Jan 17 – California Public Utilities Commission (CPUC) has ruled that Calpine needs to replace three gas-fired peaking power plants with energy storage facilities by 2019, “if feasible and at a reasonable cost to ratepayers.” Calpine had initially sought regulatory permission to maintain “must-run status” for the two 47-MW peaking plants in Feather River and Yuba and a 605-MW gas power plant in Metcalf.

Fluence, the new joint venture by Siemens and AES Energy Storage, has started operations at the start of this year, backed by a dedicated financing programme from Siemens Financial Services, and a substantial contract to supply a 400MWh battery system in California.

Jan 11 – Kilkenny County Council is processing an application Greener Ideas, a joint venture set up in 2009 between Bord Gáis Energy and Mountside Properties,for the construction of a 100MW battery energy storage system. Initially the project partners intended to develop an open-cycle gas turbines power plant on the site which is now listed for the battery project.

Commenting on the UK Government’s decision to de-rate battery storage ahead of the Capacity Market auction in February next year, UK Power Reserve (UKPR) said it “accepts and understands” this move while remaining confident about the future of battery storage in Britain. UKPR also underlined its goal to bring 120MW of battery storage online before 2020.

Controversy is mounting in Australia over whether the lifetime of AGL Energy’s 2,051-MW Liddell power plant should be extended – as proposed by the Turnbull government – even though the operator wants to shut down the “costly and unreliable” unit in 2022. A new report finds the government’s stipulated lifetime extension would cost around $3.6 billion over five years, compared to $2.2 billion for a combination of wind power, demand side-response and energy efficiency measures.

ITM Power has secured funding from the Department for Business, Energy and Industrial Strategy (BEIS) to deploy large scale Power-to-Gas energy storage on the Northern Gas Networks’ (NGN) distribution grid. In a subsequent study, both partners will examine the potential and cost-effectiveness of such storage solutions, starting from the 50 MWh range.

GEMS software from Greensmith Energy, a Wärtsilä company, will be utilized to help realise 2.4 MW/2.4MWh energy storage system test bed that CW Group is realising on behalf of Singapore's Energy Market Authority (EMA) and SP Group, a leading energy utility in Asia Pacific. The facility is due to be fully operational during the latter part of 2018.

Seeking to complement fossil power plants, South Australia has invited bids from investors in energy storage and bioenergy to share a $150 million fund. The tender is part of the government's wider $550 million energy plan that will see the world’s largest battery being built, and additional flexible gas power capacity. Applications for the $150 million fund close on September 28.

Aug 14 – GE Renewable Energy has booked a turnkey contract with Star Pumped Storage Ltd for the 344 MW Kokhav Hayarden hydro pumped storage station, the second to be installed in Israel. GE Renewable Energy is responsible for the design, manufacture, supply and installation of all electro-mechanical and hydro-mechanical equipment as well as complete balance of plant for the two 172 MW pumped-storage units. The project will be executed by a consortium led by Chinese EPC SinoHydro.

June 29 – Following this week’s working meeting in Belgrade between Gazprom CEO Alexei Miller and Dusan Bajatovic, director general of Srbijagas, the Gazprom head has signed a roadmap with Serbia’s Minister of Mining and Energy, Aleksandar Antic on how to jointly expand the Serbian gas transmission system. The expansion of the Banatski Dvor underground gas storage facility in Northern Serbia was also discussed. A memorandum, signed early June 2017, stipulates that the UGS facility's capacities will be increased from 450 to 750 million cubic meters. Serbia is a transit country for Russian pipeline gas exports which first reach Turkey and then get transported onwards to Austria and Western Europe.

Though Centrica CEO Ian Conn told the BBC this morning that closure of its 3.4 Bcm Rough gas storage facility will not destabilize Britain’s gas supply – given the possibility to import LNG and source gas from Norway and the EU through several interconnectors – some analysts see it differently. Commenting on Centrica’s move, Wood Mackenzie analyst Graham Freedman said the decision not reopen Rough storage comes as “no surprise” and makes “good commercial sense” for Centrica. However, he believes the implications on the UK's future security of gas supply “will no doubt lead to a UK Government review of its position, particularly in light of current Brexit negotiations.”

June 9 – Car manufacturer Renault-Nissan is finalising plans to build a 100-MW power storage plant in Europe, based on disused and recycled car batteries. Similar to rival Tesla’s electricity storage arm, the latest move of Renault-Nissan indicates the company’s aspiration to cultivate a second-hand battery market. The projected power storage facility, if built, would have enough capacity to meet the electricity needs of 120,000 homes. The carmaker confirmed the news, stating “We're working with The Mobility House on several programs including a major energy storage project that is currently still in the study phase.”

Utility-scale capacity provided by various energy storage technologies and renewables beyond wind, solar and hydro, collectively accounted for 4% of the electricity generating capacity in the United States in 2016. Latest EIA figures shows a small, but growing trend towards demand-side response – vital tools for balancing electricity markets the United States, and elsewhere.  

Italy’s state-owned utility Enel has bought the Tynemouth stand-alone battery storage project in the North East of England from Element Power for approximately 20 million euros. The construction-ready project is an “investment opportunity,” according to Enel said, as it is supported by a 4-year Enhanced Frequency Response (EFR) contract to provide grid balancing services.

The Finish technology group Wärtsilä has introducing a hybrid and standalone energy storage to the market, combined with engine-based power generation. The company stated is sees “high market potential” in areas with remote microgrids and for solar PV integration.

Page 5 of 11

News in Brief

Japan starts electricity futures trading

Sept 19 – Tokyo Commodity Exchange (TOCOM) has launched trading in electricity futures to advance price competition in Japan’s liberalized energy market. The East Area peakload electricity contract for October delivery first traded at 10.9 Yen per kWh, lower than the standard price of 11 Yen set by TOCOM in advance.

Duke to reduce rates in 2020

Sept 18 – Duke Energy Florida (DEF) customers will see lower bills in 2020. The utility filed a proposal with the Florida Public Service Commission to reduce rates for electricity and gas by more than 3% while adding more solar power and making grid improvements.

Myanmar approves three power projects

Sept 17 – Myanmar’s Ministry of Electricity and Energy has given the green light to plans for a 1,230 MW gas-fired power plant in Kanpauk, Taninthayi region, a 377 MW gas-fired unit in Ahlon, Yangon region and a 1,390 MW thermal plant in Milaunggyine in Ayeyawady region. The conflict-ridden country is currently producing electricity from 5,600 MW installed capacity, derived both from state- private-owned power stations.

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.