The Government of South Korea is planning to cut natural gas taxes by 74% and raise taxes on the use of thermal coal for power generation by 27% next year. The move is aimed at reducing the country's heavy reliance on coal for power generation and shift towards cleaner-burning gas, government officials.
Turkey’s state pipeline operator Botas has increased the price for natural gas used for power generation by 50% to 1,312 Lira ($267) per thousand cubic metres, effective August 1. The price hike comes as a weaker Turkish Lira has been pushing up prices for oil and natural gas imports, which are now handed through to end-users.
Energy expenditures as a portion of U.S. gross domestic product (GDP) have fallen to 5.6% in 2016, the lowest ratio since at least 1970, according to IEA figures. Compared with a GDP at $18.6 trillion, energy expenditures declined for the fifth consecutive year down to $1.0 trillion in 2016, a 9% year-on-year decrease in real terms.
STEAG GuD Herne has signed a contract with Siemens for the turnkey construction of combined cycle power plant with district heat extraction in Herne, a town in Germany’s Rhine-Ruhr region. The Herne-6 unit will have an electrical capacity of more than 600 MW, plus 400 MW of thermal energy for district heating. Siemens disclosed "the investment volume for Herne 6 is in the mid-triple-digit Euro range."
Concerned about the progress of the green energy transition, the IEA has voiced concerns about the 7% decline in global investment in renewable energy last year. Although part of the drop-off was due to falling costs that made renewable sources like solar PV more affordable than ever, the IEA says “the investment decline still represents a warning.”
Seeking to accommodate U.S. President Donald Trump’s demands for greater LNG sales to Europe, the European Commission President Jean-Claude Junker has said the EU would build more LNG import terminals. However, this does not mean imports will increase as the JKM-TTF spread has stayed wide enough over the past year for US cargoes to get a higher netback going to Asian than Europe.
Macquarie Infrastructure Corp. (MIC) has entered negotiations with potential buyers of the 644-MW Bayonne Energy Center in New Jersey as it seeks to divest the asset before the end of this year. MIC only bought the CCGT three years ago, but now seeks to sell it for about $900 million to reduce debt.
Dispatchable power generation capacity is shifting from flexible gas gensets to wind and solar technologies paired with energy storage. Excellent solar resources in the U.S. state of Arizona make First Solar confident that its 65MW solar farm and a 50MW/135MWh battery storage facility will outcompete gas peaking plants in terms of supplying electricity into the evening peak.
Financing models of the U.S. shale oil and gas industry - often small wildcatter - has for long been characterised by negative free cash flow as expectations of rising production and cost improvements led to continuous overspending in the sector. Over the last few month, however, IEA analysts have notice a “notable improvement in financial condition,” though the overall health of the industry remains fragile.
Running the new efficient power stations on LNG helps Pakistan to save between $2 billion and $3 billion in fuel cost for power generation. With an efficiency rate of over 62%, the new Balloki, Haveli Bahadur Shah and Bhikki CCGTs can generate power at an average cost of Rs7-8 per unit, which is about half of the cost of electricity produced from furnace oil.
Pakistan has just added the second LNG-fuelled power plant to the grid: Commissioning of the 1,223 MW Balloki CCGT follows just weeks after the start-up of the Haveli Bahadur Shah (HBS) power plant which entered full commercial operations in May. During commissioning, the HBS and Balloki plant already added over 5.5 billion kilowatt hours of power to the grid.
California Independent System Operator (CAISO) has issued two new reliability must-run designations to support grid reliability in the face of imminent power plant retirements near Los Angeles. NRG California South had notified the ISO it will retire its Ellwood, Etiwanda and Ormond Beach generating stations by October 2018.
Faster economic growth in China means higher energy use given that the country is world’s top producer of energy-intensive good. Beijing’s policy goals seek to enact a greater focus on service industries, however, the EIA’s International Energy Outlook 2018 (IEO2018) finds that China’s energy use is only modestly affected by how quickly it transitions to a more personal consumption-based, service-oriented economy.
Total, one of seven largest oil companies in the world, has signed a deal with KKR-Energas to acquire two gas-fired combined cycle power plants (CCGT) in the North and East of France with a combined capacity of 825 MW. The two flexible CCGTs were primarily used for peakload power supply and benefitted from France’s new capacity market.
Enagás and the regional government of Aragon have agreed to collaborate on the projects for the use of renewable gases such as hydrogen, biogas and biomethane. The aim is to save energy and enhance efficient use of renewables, while fostering the coherent and effective development of energy infrastructure.