The launch of capacity markets may come too late, the Department of Energy and Climate Change (Decc) has acknowledged, and decreasing generation margins are threatening Europe's energy trading market. "Decc may well find that once they intervene, find they have to intervene again which causes the risk that we will go back to a regulated energy market," says Jim Fitzgerald, associate partner at The Advisory House.
E.ON, Germany's largest utility by market value, will take legal action before December 20 against Germany's energy regulator BNA over compensation levels for power plant re-dispatch, it confirmed today.
A 'dash for gas' scenario, unveiled by UK Chancellor George Osborne as part of the Gas Generation Strategy, may threaten the country's climate targets, critics warn. As one of three proposed scenarios, the 'dash for gas' case calls for 37 GW of new gas-fired power plant capacity, or up to 40 plants, by 2030 and implies a rewrite of a draft law that sets out Britain's carbon emissions reduction goals by the mid-2020s.
Prospects of a carbon floor price, introduced as part of the UK Electricity Market Reform (EMR), could render coal uneconomic compared with gas generation which may led to plant closures, says David Brewer, director general of the confederation of UK Coal Producers (CoalPro).
Profitability of new-build gas fired power plants in Germany hinges on selling district heating; hence dispatch of two projected combined heat and power (CHP) plants in Cologne and Düsseldorf will be driven by heat rather than power production, operators confirm.
Coal-to-gas substitution in the US power generation sector is set to decline amid a rise in natural gas prices beyond 2012 levels. Prices for gas delivered to power plant operators during 2013 will average about 22 percent higher than during 2012, while the average cost of delivered coal will go up only 1 percent, the US Energy Information Administration (EIA) forecasts.
The resemblance between Montana, a state in north-western United States and European countries like Spain, Denmark or Germany is striking.
"What we are seeing in Montana and also here in Europe is that our FT8 SWIFTPAC aeroderivative gas turbines are being used to maintain adequate power flows in the grid to counterbalance fluctuating wind energy," says Swift Tarbell, Pratt & Whitney Power Systems Area Director for Europe.
E.ON has bought Verbund's stake in the Turkish utility Enerjisa in a move to gain access to power generation capacity and electricity distribution in the fast-growing Turkish energy market. The transaction will provide E.ON with an platform for growth beyond its existing European markets, E.ON chief executive Johannes Teyssen said today.
Up to 40 gas-fired power plants will have to be build across the UK by 2030, raising the need for new gas generation capacity to 37 GW - up from current estimates of 20 GW, according to the Gas Generation Strategy.
Joint venture partners E.ON and Brazil's MPX are fast-tracking a gas generation project at Maranhão under a joint venture set to realise a project pipeline of 10,000 MW of new power generation capacity in Brazil and Chile. "We believe the natural gas projects at Maranhão, as well as wind farms at Rio Grande do Norte, have a big potential for development in the coming years," MPX representative Carla Assemany told Gas to Power Journal.
German regional utility RheinEnergie has taken the final investment decision (FID) to spend around 350 million euros on building a 450 MW combined-cycle, gas-fired power plant in Cologne Niehl.
Entergy Corp, a US-based integrated energy company, has increased its overall power generation capacity by 1,070 MW through the purchase of two gas-fired plants in Mississippi and Arkansas.
Britain's Chancellor George Osborne has put his political weight behind realising new gas-fired capacity to provide baseload electricity beyond 2030, rather than using it merely as backup capacity for renewables. The Chancellor will use his Autumn Statement on December 5 to unveil the much-awaited Gas Generation Strategy.
Japan's industrial conglomerates Mitsubishi Heavy Industries (MHI) and Hitachi are gearing up to merge their thermal power plant activities with the aim of increasing their market share at the expense of rivals Siemens, Alstom and GE.
Gazprom, the Russian gas export monopoly, is reviving plans to build a power plant in northeast Germany to increase gas sales to its biggest export market via the Nord Stream pipeline.