The European Commission today revealed further detail on three options for a set-aside of carbon allowances, which could lift the price of carbon by up to €6/ton, according to estimates of Thomson Reuters Point Carbon. Higher carbon prices would help lift the profit margin (spark spread) of gas-fired power plants.
South Korea's POSCO Energy has awarded Siemens an order worth 400 million euro to supply three H-class single shaft units for the 420 MW POSCO plant project. For Siemens this is the fourth order from a South Korean buyer of H-class technology within 18 months, following orders for the Bugok III, Ansan and Andong combined cycle power plants.
Phase two of the Sabiya combined-cycle power plant (CCPP) - Kuwait's largest power plant - has started commercial operation in time to meet peak electricity demand during the hot summer months. Kuwait's power demand grows at about 7 to 10 percent per year and the government estimates peak load demand will reach 25,000 MW by 2025.
Swiss power and automation technology group ABB has won an order worth over US$ 100 million to build a gas condensate processing plant for Petroleum Development Oman (PDO) in Oman.
The spot price of natural gas at the Tennessee Gas Pipeline (TGP) Zone 4 Marcellus trading point has fallen below the spot price at Henry Hub in Louisiana. TGP Zone 4 is currently the least expensive gas traded in North America, according to EIA figures.
Wärtsilä, a leading supplier of gas engines, has signed an Operations & Maintenance (O&M) agreement with Gulf Power Ltd (GPL), to operate and maintain a power plant in Kenya.
Electricity produced from nuclear and fossil fuels in the U.S. will start to decline between 2020 and 2025, due to an expansion in renewable generation. "Natural gas represents the largest source of displaced generation," the U.S. Energy Information Administration (EIA) forecasts.
E.on UK has refuted claims made in a parliamentary report on Monday that the introduction of Contract for Differences (CfDs) will reduce competition amongst British energy companies.
"Contrary to the Committee's view, we believe that the introduction of CfD's and a Capacity Mechanism will reduce vertical integration and increase competition in both generation and retailing," E.on UK's chief executive, Tony Cocker, said today.
The complexity of proposals to establish a Feed-in Tariff with a Contract for Difference (CfD) under the UK's draft energy bill is freezing new investment. "The proposal has now arguably become unworkable," the Common's energy and climate change select committee warned today.
The price of carbon emissions allowances is set to recover this week, Société Générale forecast, suggesting the Dec 12 EUA contract is "very close to being oversold". As for gas, the bank sees more downside for prices all along the future curve.
Wainstones Energy, a subsidiary of Carlton Power, is evaluating suppliers as is close to purchase a flexible turbine for Carlton Power's 1,520MW gas-fired Trafford power plant project.
Aggreko, a UK-based interim power solutions provider, has commissioned and started power production at a 107.5 MW interim gas-fired power plant in Mozambique.
Abu Dhabi National Energy Company (TAQA) has received the requisite parliamentary approval and signing financing arrangements for the 110 MW expansion of the gas-fired Takoradi 2 power plant in Ghana. The expansion will be commissioned in 2015, operator TAQA said.