Operators of gas-fired power plants in Spain have joined forces to lobby for higher capacity payments in return for providing vital backup capacity to stabilize the grid against rising fluctuations in electricity supply from renewable energy sources, Stephen Woodhouse, Director at Pöyry Energy Consulting said. "In a true market environment, the flexible plants would earn higher prices for this new mode of operating but if there is a surplus of capacity then some of the generation fleet will become uneconomic," Woodhouse told 'Gas-to-Power Journal' in an interview.
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.
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.
Energy shortages and rolling blackouts could become a real possibility in the UK in five years' time, warns Pilgrim Beart, founder of AlertMe. "A large fraction of our coal power stations are scheduled to be decommissioned in 2016. If you reduce supply without reducing demand then you get rolling blackouts," he told Gas-to-Power Journal.
Weakness in UK power markets is forecast to continue until 2013 as significant oversupply of power generation capacity is cutting into profit margins of gas and coal-fired plans, JP Morgan Cazenove (JPMC) said today in a research report. "UK power demand is worse than anaemic," JCMC analyst, Edmund Reid, said with reference to a drop in electricity demand below 2009 levels.