Excessive subsidies for renewable energies have distorted the Spanish power market, forcing utilities to significantly curtail the operating hours of gas-fired power plants, Christer Björkqvist, Managing Director, ETN-European Turbine Network said today.
Now, the Spanish government has suspended all subsidies for new renewable energy installations in a move that is unlikely to prove a 'quick remedy' for the market distortion.
Escalating output of U.S. gas production has launched a "race to the bottom", with gas prices reacting negatively to rising production. Gas-for-coal substitution, meanwhile, is starting to put significant pressure on coal prices, Deutsche Bank said today.
Shanxi Ruiguang Heat & Power Company has started commercial operations of the second unit of its 2x300 MW Ruiguang power plant, located in China's Jiangsu province.
A combination of flexible combined cycle gas turbines (CCGT) and Shallow Salt storage is "best placed" to balance electricity supply and demand in the U.K. amid a rise of intermittent renewable energy production, John Baldwin, managing director, CNG Services Ltd told Gas-to-Power Journal today.
American Electric Power (AEP) has started commercial operation of the 580 MW combined-cycle gas power plant in Dresden, near Ohio, U.S. The operational start-up of the Dresden plant is "another step in the transformation of AEP's generating fleet", said Nicholas K. Akins, AEP president and CEO.
GE Energy plans to complete works to upgrade two 30-year-old 9B Gas Turbines at an Italian power plant in Trapani to GE 9E Gas Turbines in 2013, the company's Italian division told Gas-to-Power Journal today.
Renewable gas – in the form of biogas, syngas or hydrogen – will cover a growing share of Denmark's gas demand. "By 2020, we expect to have about 5% of biogas in the Danish gas system," Nybroe, senior project manager, Energinet.dk told Gas-to-Power Journal at the sidelines of a conference in London today.
Utilities in Europe currently have access to a lot of natural gas, but it is cheaper for them to use their coal-fired plants for generating electricity, Albrecht Müller von Blumencron, director project finance Bayern LB said today. Nonetheless, he foresees a "brighter future" for the gas-to-power sector in Europe in the mid-term, provided utilities will have to more flexible gas supply.
The U.K. will face a capacity gap at the end of this decade. Investors in new flexible gas-fired power generation capacity will have to find a way to handle the risks posed by ambitious renewable targets and uncertainties surrounding the implications of the Energy Market Reform, Clare Duffy, General Manager, ESB International, said in London today.
Uncertainty about the liberalization process of the Turkish natural gas market may hamper investors to commit to realizing large gas-fired power plant projects in Turkey, Robert Selim Hill, researcher at Energy Brainpool said today. "For the near future it will especially be difficult to plan and realize large natural gas power plant projects," he told Gas-to-Power Journal.
TLT-Bancock India said today it will open a new manufacturing facility near Bangalore, in April 2012. The components produced at the facility will be sold to power producers in the growing Indian market. "When production begins in a few months, TLT-Babcock will have fully arrived in support of India's electric power expansion and general growth plans," David Klossner, President of TLT-Babcock said.
China will increasingly favour of environmentally friendly gas-to-power plants over coal-fired plants. In 2050, China's gas demand to power sector is forecast to surge to 413 Mtoe (BLUE Map scenario), compared to 195 Mtoe (Baseline scenario), Hirohisa Yamada, IEA energy analyst, told Gas-to-Power Journal in an interview today.
Cold weather conditions across Europe will prolong the recent rally for gas and power demand, but still weak fundamentals may mitigate its impact on prices, Societe Generale forecasts. Recent macro data and sentiment surveys conducted in January "all surprise to the upside", it added.
The European Investment Bank (EIB) is supporting a 216 MW gas-fired power plant project in Cameroon with 29.5 million euro in long-term funding. Kribi will be the first gas-to-power plant in Cameroon.