Japan will require significant investment in its natural gas infrastructure to cope with the increase in demand following the Fukushima nuclear incident which propelled up the power sector's share in national gas demand from 60 percent to 65 percent, according to a report by the International Energy Agency (IEA), published under the lead of Warner ten Kate, Senior Gas Expert.
Sam Laidlaw, Chief Executive of Centrica has warned of an imminent "energy gap" in the UK, suggesting "the loss of [old coal-fired] power stations will seriously reduce our capacity to generate electricity." Renewables will help but they're intermittent, so he suggested the only realistic option to solve the problem would be new gas-fired power stations.
Spain's power producers are calling for new regulatory support mechanisms to help cover investment costs of existing fossil plants.
"It is vital to establish a mechanism to reward the backup service of existing gas-fired plants to assure the reliability of the system" says Carmen Vindel, Head of International Regulation, Gas Natural Fenosa.
A boom in new-built solar capacity Germany, with up to 3,000 MW of new-built capacity in a single month, proves detrimental for gas-fired power generation capacity. "Feed-in tariffs and 'insanely over-funded' renewable energy supply is the fundamental flaw in Germany's energy transition, says Helge-Jürgen Beil, Vice President Asset Origination, Statkraft Markets GmbH.