Gama Energji is in talks with two potential partners about setting up a tolling agreement to market the electricity generated at its Kirikkale CCGT project with the aim of reducing financing costs.
"We want to have a tolling accord in place - as a hedging instrument - before we close project financing for Kirikkale, as it could give us a reduction in interest of about 150 basis points," Orkun Eyilik, Commercial Manager, Gama Energji told 'Gas to Power Journal' today.
EMRA, Turkey's Energy Market Regulatory Authority, is considering introducing 'paid-in capital' criteria as a precondition for granting licences to power plant developers. By taking this step the regulator intends to limit so-called 'speculative licence applications', Muhammed Demir, Group Head, at EMRA's Electricity Market Department said in Istanbul today.
EnerjiSA, a Sabanci/Verbund joint venture, sees a growing need for LNG imports to Turkey as a flexible supply source of natural gas to underpin the growth of installed power generation capacity. "Gas-fired plants may well grow in number as LNG as a fuel is increasingly considered as an interim option by plant operators," Kivanc Zaimler, Commercial Director - Natural Gas, EnerjiSA said in Istanbul today.
Financing for new gas-fired power plant is getting tight in Turkey and fewer projects will come to fruition. "Combined-cycle gas turbine (CCGTs) plants with less than 50% operational efficiency will not get financed in Turkey" Emre Hatem, Manager, Project and Acquisition Finance, Garanti Bank said at a conference organised by 'Gas to Power Journal' in Istanbul today. He forecast a reduction of the share of gas in Turkey's energy mix from currently 45% to 25% by 2020.
General Electric (GE) will supply the Japanes steel producer JFE Steel Co. with a heavy duty Frame 9E gas turbine system for a steel gas-to-energy recovery project at its East Japan Iron Works in Chiba City, east of Tokyo. GE said today it will start delivering the equipment to Japan in December 2013.
Karoo Sustainable Energy (KSE) has won the 2012 Africa Competitive Strategy Leadership award after it negotiated the first Power Purchase Agreement (PPA) with Botswana Power Corporation (BPC) as a step towards structuring the financing of a 180 MW gas-fired power plant project.
Investment bank Société Générale today questioned the affordability of natural gas as a fuel for European power plant operators. „At today's prices, gas is too expensive a fuel for Europe," the bank said today, suggesting the "overprice" in terms of the bill is $315/1,000cm or $153bn for 2012e.
The drop in LNG supply to Japan is negatively impacting on the utilisation of gas-fired power plants. „If we were to measure a 30 mcm/d fall in LNG supply against higher gas-fired generation in Japan, then the drop in LNG supply is equivalent to power generation from 7.3 GW of gas-fired capacity," Deutsche Bank analysts said.
Plant operators in the UK are requested to apply for funding under the UK's carbon capture and storage (CCS) competition by July 3, the Department of Energy and Climate Change (DECC) confirmed. Designed to develop commercial-scale CCS facilities, the competition will make available £1bn in funding to up to four coal or gas-fired CCS projects.
Venezuela has seen a surge in new-built gas turbine and distributed power plants to cover rising demand, a study shows. Increment power generation capacity is mainly supplied by gas turbines and CCGTs (2,057 MW) and distributed generation plants (983 MW), in accordance with the policy of the Venezuelan government to decrease dependency from hydropower.
Alstom has refocused its sales strategy into the German market as the country's energy mix is undergoing a dramatic change to accommodate the nuclear exit. "Chances in renewables and in upgrading Germany's existing fossil power plants are clearly driving our business in Germany, which is a positive outcome of the nuclear phase-out," says Alf-Henryk Wulf, chief executive, Alstom Deutschland.
Sasol New Energy plans to start operations of its gas engine power plant project in Sasolbury, South Africa, before the end of the year. The 140 MW plant is currently under construction and is set to run on 18 Wärtsilä 20V34SG generating units, fuelled by natural gas imported from Mozambique.
Investment into new power generation capacity in the U.K. has ground to a halt as utilities and banks lack certainty about the U.K.'s future market design. "The uncertainty surrounding the Electricity Market Reform (EMR) has put a complete block on financing," Alan White, Head of Conventional Energy at Lloyds Bank Corporate Markets told delegates at PowerGen2012.
The Department of Energy and Climate Change (DECC) is fine-tuning last details of an upcoming capacity market in the U.K. "There is currently a lot of discussion about a penalty regime [for delays and non-delivery] and the eligibility of power plants for capacity payments," Neil Bush, Head Energy Economics at DECC told delegates at PowerGen 2012. "More details will be announced in late October," he said in Cologne today.
Siemens Energy has presented the SST-111 - a new industrial steam turbine for outputs of up to 12 MW - and an Enhanced Platform industrial steam turbine design at PowerGen2012 in Cologne. The first order for a SST-111 came from Devon County Council and Viridor Waste Management, with the new turbine set to be installed in a refuse incineration plant situated in Exeter.