Reacting to weakness in the power generation market, Siemens has decided to temporarily shut down its Power & Gas (PG) manufacturing sites around the world. Following intensive talks with trade unions, the German engineering conglomerate on Monday night also reached an agreement on restructuring measures for its PG and Process Industries and Drives Division (PD). “Cost reduction targets are being retained,” Siemens said in a statement today, adding “job cuts are unavoidable.”
Technological challenges are “taking root on the grid,” the New York Independent System Operator (NYISO) said with reference to an array of battery storage projects and the first offshore wind project off Long Island. Looking ahead, NYISO expects both baseload and peakload power demand to fall by about 0.14% through to 2028, caused by a rising use of distributed power sources and energy efficiency measures.
Elon Musk, the man at the helm of Tesla, has hinted at the company’s Q1 investors’ call that a giant 1 GWh energy storage project would be announced soon. Highlighting the impact of Tesla’s 129 MWh battery in South Australia, he said “its grid stabilization was much greater actually than even a gas turbine plant, which normally respond quite fast.”
Profit margins of UK’s gas-fired power plants keep improving, boosted by the closure of aging coal power plants and delays in the construction of new nuclear capacity. Consequentially, gas power plants are seen contribute more than half of the UK’s electricity needs in less than 10 years, up from 45% in the previous years, according to Fitch Group affiliate BMI Research.
Allianz, Europe’s largest insurer, has ceased to sell policies to coal companies in an effort to fight climate change. The company said it would immediately pull its coverage from single coal-fired power plants and coal mines, and phase out all coal risks by 2040. Allianz also announced it will stop investing in companies that do not reduce their greenhouse gas emissions, which would apply to 664 billion euros of investments.
Where no pipeline or electrical grid exists, Chart offers solutions enabling clients to access natural gas, through LNG for on-site power generation. For a Canadian client, the operator of a diamond mine, six of Chart’s horizontal regas tanks provide almost half a million of LNG storage for seven 2.1 MW gas-fuelled power generator sets and despite the extreme climatic conditions, the project in Canada was completed on schedule.
NRG Energy, Inc. has reported a first quarter 2018 net income of $233 million, saying its Transformation Plan is on track with $80 million in cost savings realized in the first quarter of 2018, and $3 billion in asset sales is still expected to close before the end of this year. In the first quarter, NRG also acquired the retail business XOOM Energy to expand its sales capabilities and presence on the U.S. East Coast.
The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, according to the International Energy Agency (IEA). “Real progress” is, however, being made on electrification in some of the least developed countries, and industrial energy efficiency while renewable energy is noted to make “impressive gains in the electricity sector.”
U.S. pipeline company Energy Transfer Partners has received approval from the Federal Energy Regulatory Commission (FERC) to place additional Phase-2 facilities into service. The $4.3 billion pipeline project will allow moving natural gas from the Appalachian, notably the Marcellus and Utica Shale, to domestic and Canadian markets. Construction of the entire pipeline is due for completion in Q2-2018.
Beginning June 1, New England will become the first US grid operator to fully integrate demand-response (DR) resources into its daily energy dispatch and reserve processes. The ISO estimates that about 408 MW of DR will be available which will participate in real time in the energy markets. Pay-for-performance incentives will be in effect starting June 1. With this instrument, the ISO is confident to meet peak summer demand.
Alike other American electric utilities, Excelon has pledged to reduce carbon emissions by 15% by 2022 but their plan do not hinge on a change in the power generation mix. Instead, has chosen to Excelon focus on curbing methane emissions from natural gas distribution equipment.
El Savador’s CEPA, the Comisión Ejecutiva Portuaria Autónoma, has asked Siemens to equip an international airport in the country with electrical systems for the new terminals. The airport is scheduled to be significantly enlarged and modernized by 2032.
Independent power producer HF Power, part of Hosaf Group, has placed an order for Wärtsilä to deliver a 113 MW power plant to Chowmuhoni, Bangladesh. The government is committed to providing a reliable electricity supply to industrial and domestic consumers. For example, only 76% of the country’s houses were connected to the grid in 2016, and the government’s explicit aim is to increase this share to 98% by the year 2021.
Use of combustible, or fossil fuels, for power generation has fallen by 1% in OECD countries over the course of 2017, according to a monthly assessment compiled by the International Energy Agency (IEA). In the Americas, the contribution of fossil fuelled power plants decreased 144TWh amid greater renewables deployment. In Europe, by contrast, the use of fossil fuels grew by 80TWh, as natural gas and coal-fired power plants had to compensate for a low-hydro-year and falling nuclear power supply.
Tokyo Gas, the Japanese utility and LNG buyer, is anticipating a slight dip of 0.2% in its fiscal 2018 city-gas sales volume to around 15.54 Bcm, owing to industry deregulation and growing competition in the Japan’s gas and power markets. This trend is in line with the utility's expectations of a decline in commercial and residential gas demand. “Meanwhile, we estimate a rise in operating expenses, primarily reflecting higher resource costs, owing mainly to the impact from the climb in crude oil prices,” Tokyo Gas said in an investors' briefing.