Regulation & Policy

US manufacturers Koch Industries and Dow Chemical are lobbying against the plan of Energy Secretary Rick Perry to subsidize nuclear and coal as a fuel for power generation. In a letter to Congress, manufacturers dismissed the Department of Energy’s (DoE) plan as “anti-competitive” and said it could distort or “destroy competitive wholesale electricity markets and increase the price of electricity to all consumers.”

Voicing plans to shut down all coal-fired power stations by 2030, the incoming Dutch government has sent a dramatic signal to energy markets that investments in coal is no longer safe. The far-reaching approach of the new coalition is striking, given that RWE, Uniper and Engie in the past few years commissioned three of Europe’s most modern coal power units in the Netherlands.

“The war on coal is over,” were the words used by Scott Pruitt, head of the US Environmental Protection Agency (EPA), when he announced the Trump administration will put an end to the Obama-era plan aimed at reducing power plant emissions. Pruitt argues that the Clean Power Plan violated federal law by “setting emission standards that power plants could not reasonably meet.”

The Trump administration is adamant about dismantling former President Obama’s signature plan to reduce emissions from power plants. Rather than mandating states to change their energy mix by imposing emission quotas, President Trump is expected to give utilities some guidance on how to operate their power plants more efficiently.

Crops for bioenergy are the only renewable source able to produce heat, power as well as liquid and gaseous fuels. Planting second generation non-food bioenergy crops could, according to the Energy Technology Institute (ETI), not only helps electrify Britain, but also created new jobs in the farming and forestry sectors, post Brexit.

Commentators have openly rebuked US Energy Secretary Rick Perry’s proposal for a bailout of coal and nuclear power plants. In a letter to FERC, Perry had directed the regulator to set up a rule, offering plants that can store 90 day’s worth of fuel onsite some extra compensation. Critics dismissed this plan as “nuts” as it would interfere in America’s unregulated wholesale power market, effectively reducing the price of electricity generated from burning coal.

Black-yellow-green: a Jamaica coalition between the Conservatives, Liberals and the Green Party is now the sole option for Germany’s new government – after the Social Democrats decided for the opposition. With the Greens participating, the time is ripe for a fierce debate in parliament in about the feasibility of phasing out coal-fired power plants; in close succession to Germany’s nuclear exist.

Persistently high power prices and energy shortages along the East Coast of Australia could be solved by a trans-continental gas pipeline that connects the resource-rich Northwest to existing infrastructure in central Australia, says Colin Barnett former premier of Western Australia. Though the 3,000km interconnector costs an estimated $5billion, he stressed expenses need to be put in context with $49 billion spent for a national broadband project.

Southern Co. has rejected a revised offer on rates for the Kemper County power plant. The offer would have enabled Mississippi Power to collect an additional $100 million in assets. After abandoning efforts to complete the Kemper gasifier, Southern had to take up nearly $6 billion in losses on the $7.5 billion project – but the regulator say some of the costs it now wants to recoup are “unjustified.”

A draft policy paper published by South Korea’s energy ministry this week signals a strategy of adding between 5-10 GW to the county’s installed capacity, mostly from LNG-to-power projects and renewables. The envisaged new clean energy plants would expand Korea’s installed capacity by about 10%.

The UK government plans to publish the long-delayed £50 billion hydrogen strategy to clean up emissions from the country’s heat, transport and industrial sectors within weeks. Jon Slowe, a director at Delta-ee, singled out decarbonising heat as “the biggest challenge in reducing carbon emissions.”

Seeking to complement fossil power plants, South Australia has invited bids from investors in energy storage and bioenergy to share a $150 million fund. The tender is part of the government's wider $550 million energy plan that will see the world’s largest battery being built, and additional flexible gas power capacity. Applications for the $150 million fund close on September 28.

“Market designs may be inadequate” to keep “traditional” power generation online, cautions a long-awaited report by the Department of Energy (DoE) on the security of the U.S. power grid. To alleviate risks, the study calls on regulators to facilitate easier permitting for coal, nuclear and hydropower plants.

Taiwan’s recent massive blackout raises questions of the government’s wider energy policy which, according to Dr. Guo Yu, principal Asia analyst at Maplecroft, “does not pose an immediate threat to government stability.” However, it may determine the political fortunes of President Tsai and the ruling Democratic Progressive Party as we approach the next election cycle in 2020.

Turning his back on former President Obama’s clean energy aspirations, the new FERC chairman Neil Chatterjee calls for coal to be “properly compensated” for baseload power and “recognized as an essential part of the fuel mix.” Asserting his commitment to the “resilience and reliability” of the US electric system, he said in a podcast released by FERC this week that ensuring security of supply would merit keeping even uneconomic coal and nuclear power plants operational. “These are essential to national security,” he claimed.

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