Fuel oil imports by South Korean power producers have surged to 200,000 tonnes in March so far, up from 92,000 tonnes in February, according to a Reuters tender. Burning heavy fuel oil (HFO) produces more emissions than natural gas, but it is less carbon-intensive than coal and hence considered compliant with the government’s clean air policies. In February, South Korea’s trade ministry decided to suspend the operation of five coal power stations (2.32GW combined capacity), from March to June.
South Carolina Electric & Gas has submitted an application with state regulators, saying it will need to build a new combined-cycle gas power plant in the next five years to meet peak winter demand, given the failure of its nuclear power project. Costs and location of the proposed CCGT are not yet decided, but SCE&G has already reserved most of the capacity of Dominion’s newly expanded gas pipeline network in South Carolina.
Electric vehicles hold enormous potential but their deployment so far has fallen short. According to The Society of Motor Manufacturers & Traders, some 3,500 of the UK’s newly registered cars were electric or hybrid in 2013, growing to over 63,000 by the end of 2017. However, for electric vehicles become truly mainstream the industry needs to overcome some challenging obstacles, finds Jacob Klimstra, Senior Energy Consultant and Member of the Advisory Board for Electrify Europe.
Eager to clean up air pollution, the Chinese government has mandated several million households in China’s northern provinces to stop relying on coal heating in winter. Gas use and LNG imports have surged as a consequence, with China surpassing South Korea in late 2017 to become the world’s second-largest LNG importer.
UK capacity markets, pitched by proponents as a necessary to balance rising amounts of variable generation, “simply are no longer needed,” IEEFA’s Gerard Wynn claims. He referred to some European markets with far higher levels of variable renewables that are investing in flexible grids, capable of sourcing up to 50% of their energy from wind and solar.
The New Northern Policy, launched by the South Korean president Moon Jae-in, is seeking new growth drivers in Russia and Northeast Asia. The Korean energy ministry announced Korea Electric Power Corp (KEPCO) will sign a memorandum of understanding with Russia's energy firm Rosseti later this year. The aim is to create a multinational power grid interconnection in the Northeast Asia region that also includes China and Japan.
West-to-east power flows on the ERCOT transmission system are bound to rise substantially, following a surge in wind capacity addition in the Panhandle northwestern Texas, and new solar PV resources in far southwest Texas. Rising supply of inherently intermittent renewable energy is proving difficult to integrate; hence transmission line upgrades need to be fast-tracked to allow the grid operator ERCOT balance wind energy in the Northwest with flexible gas-fired generation in the eastern part of the state.
US President Donald Trump has made reforms of the environmental permitting process for pipelines a key part of his $1.5 trillion infrastructure plan. Speeding up regulatory approvals will help fast-track both gas export pipelines to Mexico and interstate pipelines to transport cheap, domestic shale gas to the second wave of US LNG export projects.
China's National Development and Reform Commission (NDRC) imposed a cap on thermal coal prices imports through Qinhuangdao port at RMB750/t from 5 February. Strong demand due to colder-than-normal weather in January had propelled up prices to a record RMB780/t for FOB Qinhuangdao 5500 kcal/kg coal. According to WoodMackenzie estimates, the new price cap will have an impact from now until mid-March.
Passing the final verdict after an eight-year quarrel over the failed Kemper “clean coal” power plant, the Mississippi Public Service Commission (MPSC) ordered to keep the plant running solely on natural gas and not pass any losses on to ratepayers. Commissioners voted unanimously that all risk needs to be removed from ratepayers for the lignite coal related assets at the facility. More so, a forthcoming compliance filing will decrease the bill of an average residential customer by 2.4%, or over $3.00 per month.
CNMC, the Spanish energy regulator has rejected a government proposal to prop up the nation’s oldest and most polluting coal power plants. Dealing a blow to subsidies for coal-fired generating capacity, the regulator suggested a “significant part” of the Spain’s coal fleet could be closed without putting national energy security at risk.