Fallouts of the corona pandemic could slow South Korea’s electricity consumption by nearly 2% this year as manufacturing, exports and private consumption grind to a near-halt. Fitch Solutions says that Korea’s manufacturing sector is hit hard due to its large exposure to Chinese supply chains in the first half of 2020.
Rising need for renewables grid-integration will propel up the market value of gas turbines beyond $10 million by 2026. According to Global Market Insights, turbine technology with 70 MW to 200 MW capacity will be particularly in high demand and see annual installments exceed 10 GW over the next five years.
Contingency measures to contain the coronavirus have slowed industrial output and transport throughout Europe and might help Germany reach its 40% emission reduction targets. Power sector emissions fell substantially as cheap gas accelerated fuel switching, but critics warned the “corona effect could obscure the need for change,” notably for road traffic.
Mitsubishi Hitachi Power Systems (MHPS) has begun work on a full turnkey contract to build Unit 1-3 at the Anegasaki Power Station, operated by JERA in Japan. Three 650 MW combined-cycle gas power units will replace four ageing units at the plant, and are due to start operations successively from early 2023.
Volatility in oil and natural gas trading has risen sharply after OPEG and Russia failed to agree on production cuts – despite demand destruction due to the Covid-19 outbreak. Traded volumes for energy futures at the derivatives marketplace CME reached a daily record of 6.8 million as traders strive to hedge their positions.
Golar Power, together with Stonepeak Infrastructure Partners, has agreed to develop an integrated LNG import and power generation project at Port of Suape in northeastern Brazil, its second such project in the region. The venture is due operational in the second half of 2020.
Global battery manufacturing capacity is seen surge as energy storage is increasingly installed in conjunction with fast-start gas engine gensets and renewables. By 2021, battery making is forecast to more than double to 278 Gigawatt-hours (GWh), up from 103 GWh at present.
Canada-based Demand Power, a behind-the-meter energy storage company, has secured $71 million (€63.9m) in equity and project finance from a group of investors, led by Star America. The funds will be used to deploy industrial-grade batteries and uninterruptible power supply (UPS) on customer sites, with the first project due onstream by the end of 2020.
Germany's largest coal power plant operator RWE has shifted to invest in renewables as earnings from its 2.9 GW lignite and nuclear portfolio may fall to €200 million, or even net zero from 2023 due to mandatory plant closures. RWE said it wants to add 4 GW of wind and solar capacity by 2022, at a cost of €5 billion.
Brest Republican Unitary Enterprise of Electricity Industry (Brestenergo) has placed the third order in three month for Siemens turbines. The latest order is for five SGT-800 gas turbines, as well as auxiliary equipment, for a peakload power plant in Beloozersk, Brest region. The 245 MW power unit is due for commissioning in December 2021.
Saudi Aramco is taking steps to rationalize its planned 2020 capital spending after posting a 21% plunge in 2019 net profits due to faltering oil prices and sluggish demand. CEO Amin Nasser underlined the “importance of agility and adaptability” while responding to the world’s “rising desire for cleaner energy.”
Kuwait’s Electricity & Water Ministry (MEW) is seeking to privatize the North Shuaiba dual fuel combined-cycle power plant over the next three years. Investors are hesitant, however, given the low dispatch of the mostly gas-fuelled combined-cycle power unit with load factors at 55% on average.