Daily News

The European Commission has warned Ireland that it must fully transpose the Electricity Directive of the third energy package into law or face referral to the European Court of Justice (ECJ). The directive contains provisions for the proper functioning of European Union electricity markets such as rules on the unbundling of networks, rules strengthening the independence and powers of national regulators and rules on the improvement and functioning of retail markets.

The share of gas in the UK's generation mix fell from 39.9 percent in 2011 to 27.5 percent in 2012 – its lowest share in the mix since 1996 – due to high gas prices, according to statistics released on Thursday by the Department of Energy and Climate Change (DECC). Coal's share in the mix by contrast increased from 29.5 percent in 2011 to 39.3 percent in 2012. Total electricity generated in 2012 fell by 1.3 percent from 367.8TWh in 2011 to 363.2TWh in 2012.

Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, has started-up operations of the Cape Canaveral Next Generation Clean Energy Center in Florida. The gas-fired combined-cycle plant with a capacity of over 1,200 MW cost FPL $900 million to build, coming in $140 million under budget.

Two turnkey 744MW gas-fired combined-cycle power plant (CCPP) projects in Oman, Sohar 2 and Barka 3, have been completed and commissioned by Siemens Energy and its consortium partner, the South Korean EPC contractor GS E&C. The plants originally went into simple-cycle operation in 2012 to meet Oman's increasing demand for electricity before being put into commercial operation in combined-cycle mode this month to meet peak electricity demand during the upcoming summer.

The successful deployment of carbon capture and storage technologies (CCS) in power generation will be crucial to achieving the UK's climate change goal of an 80 percent reduction in emissions by 2050, says a new report from Carbon Connect. "Electricity supply will likely need to rise significantly by 2050, and decarbonising the power sector beyond 2030 without CCS would be expensive and politically challenging," the report reads.

Introducing capacity payments for power producers in Germany is deemed "inevitable" by 2017, UBS analysts say, as hard coal and gas-fired power plants need additional incentives for operating during peak-demand hours or for balancing intermittent renewable energy supply.

Relative gas and coal prices will have a significant impact on the future energy mix in the US, according to the US Energy Information Administration's (EIA) 2013 Annual Energy Outlook. Under the EIA's Reference case, natural gas power plants will begin to lose their competitive advantage over time as natural gas prices increase relative to coal, making up 28 percent of the generation mix in 2040. This represents a rise from the 2011 level of 24 percent but falls short of the 42 percent that would be expected under the EIA's High Oil and Gas Resource case.

Old Dominion Electric Cooperative (ODEC) announced on Tuesday that it will seek approval to construct a new natural gas-fired power plant named the Wildcat Point Generation Facility near the town of Rising Sun, Maryland on existing property of its Rock Springs Generation Facility. ODEC says the plant will generate about 1000MW of power – enough to supply 390 000 homes annually – and is expected to become operational in 2017.

Germany's 'green' energy policies are failing to provide their intended emissions reductions , says John Rhys, Senior Research Fellow at the Oxford Institute for Energy Studies (OIES), arguing that phasing out nuclear will continue to increase coal use significantly. "Germany does not promote CCS (...) and it is also foregoing gas," he said in an opinion piece published by the Institute, claiming "Germany's simultaneous capitulation to anti-nuclear prejudice and willingness to compromise on cheap high CO2 emissions coal is therefore a disappointment to British supporters of EU ambitions to lead on climate change".

A coalition of 10 US states and 5 cities lead by New York Attorney General Eric T. Schneiderman has filed a court brief urging the US Supreme Court at the request of the Environmental Protection Agency (EPA) to review and reverse a lower court decision that invalidated an EPA rule requiring substantial cuts in the interstate transport of air pollution.

Success in the micro Combined Heat and Power (CHP) market is dependent on having a standardised, efficient and cost effective generation unit, Jean-Pierre Van Wingen, General Manager of E. Van Wingen (EVW) told COGEN Europe's annual conference in Brussels. "It is essential that you have a standard product. It needs to be competitive and have a low price and that is only possible when you have a concept that can be produced in volume," he said, adding that "production in volume also allows you to have standardized service and decrease marketing costs."

Gas-fired distributed power projects in the UK will benefit from specific support schemes, including capacity mechanisms, which are forthcoming as part of a new regulatory package stipulated under the Electricity Market Reform, says Dr. Jim Fitzgerald, Associate Partner at The Advisory House.
"Contracts for Difference (CfD) will differentiate on technology, with different auction prices for each low carbon technology. We expect a specific capacity mechanism to be put in place to enhance support available for distributed gas fired power generation projects," he told Gas to Power Journal in an interview.

News in Brief

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.

MAN expands Omincare concept

March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.

MIVOLT launches cooling fluid

May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.

Germany adds 1,300 km to power grid

May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.

 

 

 

Oman nationalizes first IPP

May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.

U.S inventories at record highs

May 4 – Inventories for crude oil and natural gas have reached a new record high in the United States, as fuel demand declines both for transport and the electric power sector. From March 13 – when a national emergency was declared due to the Covid-19 pandemic – to April 24, U.S. commercial crude oil inventories increased by 74 million barrels, or 16%, according to government figures. The acute scarcity of crude storage on April 20 led to a sell-off of future contracts at negative prices.