Regulation & Policy

Coal has been singled out as one of the key culprits for global warming at the Bonn climate talks and several European countries have come forward with plans to phase out coal-fired power plants. Italy aims to exit coal by 2025 and boost the role of renewables, the government in Rome said on Friday. In Berlin meanwhile, the issue is a subject to fierce debate as coalition talks drag on between the Conservatives, Liberals and the Green Party.

Hydraulic fracturing, commonly known as fracking, has been proposed as a solution to Australia’s current energy crisis, with advocates calling for the removal of state bans to allow the production of unconventional oil and gas resources. Matthew Meagher, researcher at Northern Australia and Landcare Research Programme says “fracking is cheaper than current renewable technologies and refurbishing old coal-fired plants.”

Greece has made noticeable progress in recent years on plans to state-owned energy companies and liberalize electricity and gas markets, and the IEA Executive Dr Fatih Birol expects this “impressive programme will lead to more competitive and financially viable energy markets offering choices and low prices to consumers.”

Several major US energy companies plan to accompany US President Donald Trump and Commerce Secretary Wilbur Ross on a visit to Beijing, starting November 8. The aim is to close deals on selling US LNG to China, along with other American-made products, in order to close the widening trade deficit between the world’s two biggest economies.

Neil Chatterjee, the chairman of the Federal Energy Regulatory Commission (FERC), has dismissed comments from PJM Interconnection saying coal power plants are more prone to cold-weather failures than natural gas-fired plants. Chatterjee, who leads FERC’s evaluation of Energy Secretary Rick Perry’s plan to subsidize coal and nuclear power stations, insisted both are “firm, non-interruptible fuel sources.” He announced FERC will conclude its review by December 11.

Andrew Ott, CEO PJM Interconnection, the independent operator of electricity wholesale markets in 13 U.S. states, has dismissed a proposal by the Department of Energy (DOE) to subsidize nuclear and old coal plants “simply unworkable.” In a press conference, he went even further by saying: "We believe it is contrary to law."

In a surprising gist, the South Korea President Moon Jae-in has signalled his readiness to accept findings of government advisors and restart mothballed nuclear reactors. LNG exporters are disappointed given that the President’s U-turn on his election promise means that there is unlikely to be the anticipated around 10 million ton (Mt) of extra LNG demand by 2030.

The Australian Prime Minister Malcolm Turnbull has made a political U-turn on energy, dismissing earlier instated 'clean energy targets' in favour of stipulating guarantees for reliable power supply and emissions reductions as the two new pillars of his new policy. Utilities will henceforth be obliged to deliver electricity at times of peak demand.

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.

Page 10 of 54

News in Brief

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.

EIB defers ban on fossil projects

Oct 17 – Luxembourg-based European Investment Bank (EIB) has bowed to pressure from Germany and the European Commission and deferred its decision to ban loans to fossil-fuel projects until mid-November. Germany wants the bank to keep financing gas-fired power projects as it views the cleaner-burning fossil fuel as a vital backup for renewable energy sources.

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.