Daily News

Falling costs for renewables and energy storage will squeeze out gas-fired generation in South Australia as early as 2025, Wood Mackenzie and GTM Research find. By then, wind, solar and battery costs are seen decline by 15%, 25% and 50% respectively – hence they offer a “lower cost alternative” to CCGTs, which cover the bulk of South Australia’s base load power today.

Published in Markets

Jun 21 – Severe drought combined with an extended outage of the Basslink undersea cable has forced Hydro Tasmania to fire up diesel generators to avert blackouts. Total costs for shipping in more than 100 diesel generators, foregone gas generation and lost electricity sales are estimated to total between $140 million and $180 million, according to Hydro chairman Grant Every-Burns. He warned most of these costs will be reflected in the utilities 2016 financial year, causing a $90 million loss.

Published in Brief news

Prices for energy storage systems are anticipated to fall by around 10% annually, but “even by 2020 this may still not be sufficient to allow the UK market to grow above 15,000 units per annum, Delta-ee researcher Julian Jansen cautioned. Lessons could be learned from the German or the US model.

Published in Markets

Consultations are underway at Whitehall as to whether coal-fired power plants, that are partially retrofitted with carbon capture and storage (CCS), would be allowed to run beyond 2025 – the cut-off date given by the UK's Department for Energy and Climate Change (DECC) last autumn.

Published in Regulation & Policy

Last year marked the first time on record that the average capacity factor of gas combined-cycle plants in the United States exceeded that of coal plants. The capacity factor of the CCGT fleet averaged 56% in 2015, compared with 55% for coal steam power plants.

Published in Markets

A triple-whammy of slower electricity demand growth, low natural gas prices, and policies that encourage renewable deployment have depressed the number of gas-fired power plants that are being added to the grid. While wind farm operators receive tax credits, fossil plants struggle to recover their operating costs in the face of falling wholesale power prices.

Published in Markets

Lakeland Electric, the third largest public power utility in Florida, says it saved $12 million in fiscal 2015, or about 17% of its annual fuel costs, at unit 3 of its McIntosh power station by making use of GE’s FuelSolv coal treatment technology.

Higher prices of LNG compared to coal and nuclear is prompting two of the biggest importers in Asia to move away from gas generation. South Korea's Ministry of Trade expects gas demand to fall 5% over the next 15 years, while Japan’s nuclear restarts are likely to reduce imports by 4.5% to 85 million tons of LNG in the current fiscal year to March 31.

Published in Markets

Though gas demand for power generation and industrial use is on the rise, global gas markets can only accommodate 6 to 7 Bcf per day of LNG exports from the United States in the next 5 years as U.S. gas' price advantage dissipates when liquefaction and shipping costs are added, according to Bernstein Research.

Published in Markets

The European Commission has published guidelines to limit regulatory interventions in electricity markets through capacity payments and renewable subsidies with a view of making support schemes more cost-effective. Researchers at the Oxford Institute of Energy Studies criticised, however, "the guidance ....shows little sense of the urgency needed to address the increasingly dire situation of conventional back-up capacity for intermittent renewables."

Published in Regulation & Policy
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News in Brief

Pemex orders GE’s TM2500 for refinery

Oct 19 – While recovery efforts continue in Mexico after the recent earthquake, GE Power and its partner APR Energy will supply Pemex with TM2500 mobile power plant solutions for refinery some 5km northeast of the city of Salina Cruz. Operations of the refinery will benefit from nearly 70 MW of urgent power generation as regular supply via the national grid is being restored.

Surging energy use in India’s buildings

Oct 18 – India is forecast to see the fastest growth in building energy consumption through 2040. In the IEO2017 Reference case, delivered energy consumption for residential and commercial buildings in India is expected to increase by an average of 2.7% per year between 2015 and 2040, more than twice the global average increase.

Dong to remotely operate UK peaking plants

Oct 17 – Denmark’s Dong Energy has agreed with GAM Capital and its project development arm in the UK, Gas Power Developments, to manage the remote control and market optimization of three 6 MW gas power stations. The three gas peaking plants are Prestige House, Newhouse and Clay Flatts, located in Lancashire and Cumbria.

'Generation Energy' debate launched in Canada

Oct 16 – ‘Generation Energy’ has been kickstarted at a forum in Winnipag as a society-wide debate on the pathways to an affordable, low-carbon energy future for Canada. The share of renewables in Canada’s power mix exceeded 65% last year, with 90% of the total derived from hydropower. Prior to the event, Canada’s Minister of Natural Resources Jim Carr met bilaterally with IEA head Dr Fatih Birol to provide input to Canada’s Presidency of the G7 in 2018.

MHPS starts manufacturing turbines in Dammam

Oct 13 – MHPS Saudi Arabia, a subsidiary of Mitsubishi Hitachi Power Systems, has opened its new Turbine Rotor Repair Facility in Dammam today. The Japanese manufacturer announced plans to plans to manufacture its most advanced gas turbines in the Saudi kingdom, and use the new facility to service compressors and turbines used in petroleum and chemical plants.

Azura-Edo IPP to startup 8 months early

Oct 12 – Azura Power Holdings has announced that its 450 MW Auzura-Edo Independent Power Project (IPP) will be ready to start operations eight months ahead of schedule. First fire is planned in December this year, for commissioning to be finalised for a start-up in May 2018.

Evaluating GT owners take on dry air injection

Oct 11 – Sargent & Lundy has been hired by gas turbine (GT) owners to analyze the impact of Turbophase dry air injection system at different site conditions. Turbophase installed on multiple gas turbine frames over the past years, clocking up thousands of run-time hours.

Gas turbine market tops $24bn by 2022

Oct 10 – The global market for gas turbine is growing at an annual rate of 5.3% to reach $24.12 billion by 2020, according to htfmarketreport. Increasing demand distributed power generation, technology advancement, and more stringent regulations on carbon emissions are fuelling the market growth.

Trump nominates pro-coal lawyer as EPA deputy

Oct 9 – US President Donald Trump has nominated Andrew R. Wheeler, a lawyer whose clients include the coal mining firm Murry Energy, as the deputy administrator of the Environmental Protection Agency (EPA). Wheeler opposes Obama’s Clean Power Plan and supported the US coal industry’s opposition to the Paris Climate Agreement.

Tokyo Engineering to finish new Azeri CCGT by May 2018

Oct 6 – Japan’s Tokyo Engineering Corp is building a new combined-cycle gas power unit at the Shimal power plant in Baku. The 409-MW unit is schedule to start full commercial operation in May 2018. Project costs, estimated to exceed $330 million, are partly covered by a $275 million loan from the Japan Bank for International Cooperation (JBIC).

Spain’s gas demand up 13% in September

Oct 5 – Demand for natural gas in Spain has increased by 13% to 26,153 GWh in September, the highest level in the past five years. Gas-burn in the power sector was up 44% month-on-month, reaching 7,085 GWh.

Capstone to deliver C1000s to Italy

Oct 4 – Capstone Turbine Corp has received an order for a C1000 Signature Series microturbine to provide combined cooling, heat and power (CCHP) for a large cured meat company in Veneto, Italy. IBT Group, Capstone’s Italian distributor, secured the order for the plant, which is due to be commissioned in early 2018.

Marubeni invests in biomass co-fired plant

Oct 3 – Marubeni Thermal Power has signed a shareholder agreement with Tokuyama and Tokyo Century Corp to invest in the latter’s the construction and operation of a biomass co-firing power project in Shunan City. Preparation for construction works are getting underway this month, for a start of commercial operation in 2022.

Puerto Rico powered by fuel oil in the wake of Hurricane Maria

Oct 2 – Puerto Rico Electric Power Authority (PREPA) is busy trying to restart power plants as well as transmission and distribution lines after Hurricane Maria hit the island earlier this month. In the absence of firm natural gas supply, PREA turned to Puma Energy to purchase fuel oil for emergency power generators.

Wärtsilä helps boost offgrid power in India

Sept 29 – Wärtsilä’s Indian office is supporting Arkay Energy (Rameswarm) to boost electrical output and productivity of its 150 MW baseload power plant in Ramanathapuram, Tamil Nadu, in southern India. An O&M deal for the plant's 16 Wärtsilä 34SG engines was renewed in June 2017 for another five years.

GE builds Turkey’s largest generator transformer at Gebze

Sept 28 – TERNA, the construction arm of GEK TERNA Group, has asked GE to manufacture what will become the Turkey’s largest generator transformer. The 820 MVA is being built in Gebze and scheduled for completion in mid-2018, when it will be installed at the Ptolemais power plant in Greece.

PowerLink IP launched

Sept 27 – Siemens has launched PowerLink IP, a power line carrier (PLC) for digital high-voltage substations. It uses the high-voltage lines between the substations as a channel by overlaying a modulated carrier frequency on the frequency of the transmission voltage in the overhead lines.