Regulation & Policy

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.

Divestment of the 650-MW Malaya coal power plant and its subsequent conversion to run on natural gas can only proceed if the current operator is able to prove the plant’s status as a “must-run-unit,” the Department of Energy (DOE) of the Philippines ruled. This new requirement risks to likely delay, if not derail, the coal-to-gas conversion.

One of the UK’s major remaining coal generators, the 1,960-MW Eggborough Power Station in North Yorkshire, is set to fizzle out in September 2018 after it failed to win a 2018-19 capacity contract. As a consequence, the operator has just updated its planning application to convert the 51-year-old Eggborough facility into a new 2-Gigawatt (GW) combined-cycle gas power plant.

Eco-friendly combined cycle power plants are serving as a “bridge” for South Korea along the road of an energy paradigm shift from nuclear power and coal-fired plants towards new and renewable energies, according to Kim Kyung-won, president of Korea District Heating Corp. (KDHC). Kim pointed out the strengths of the recently commissioned 800-MW Dongtan CCGT which powers Dongtan, a new town under development near Hwaseong City.

Tightening supply of thermal coal ahead of the Lunar New Year risks to cause power shortages in some of China’s northern metropolis, regional utilities warned. In a letter to the National Development and Reform Commission (NDRC), four electric utilities pleaded the government to ease regulations that incentives a switch from coal to gas and increase coal supplies temporarily in order to put a lid on spiraling prices.

The US Federal Energy Regulatory Commission (FERC) has approved the PennEast pipeline in a 4-1 vote, acknowledging the clear need for more gas transport infrastructure along the East Coast. The $1 billion PennEast interstate pipeline will bring up to 1 billion cubic feet of daily low-cost Marcellus gas to customers in southeast Pennsylvania and New Jersey.

Oklahoma Gas and Electric (OG&E) has filed to the state’s public utilities commission for permission to increase rates, seeking to recover its $390 million investment in the Mustang Energy Center. The 462-MW peaking power plant is the first gas-fired generator that OG&E has built in more than 30 years.

New York mayor Bill de Blasio on January 10, 2018, announced a lawsuit against ExxonMobil, Shell, Chevron, BP and ConocoPhillips, claiming the companies intentionally misled the public about the effects of climate change in order to protect their profits.  Together with comptroller Scott Stringer, de Blasio submitted a resolution instructing the city's five pension funds to explore ways to divest their fossil fuel holdings.  Between them, the funds hold $5 billion worth of securities in over 190 fossil fuel-related companies. 

Aspirations of the Trump administration to prop up America’s coal industry have been dealt a blow by the Federal Energy Regulatory Commission (FERC) which rejected U.S. Energy Rick Perry’s proposal to subsidize coal and nuclear power stations if they stockpiled 90-days worth of fuel. Republican and Democrat members of FERC earlier this week unanimously voted against the Department of Energy’s (DoE) proposed “Grid Resiliency Pricing Rule.”

Clarity on the UK coal phase-out will bring the Conservative party’s long-awaited implementation plan which Theresa May will introduce in a speech on her party’s green energy policies this week. One of the UK’s eight remaining coal power stations is expected to shut down this year, the Government said as it reaffirms rules that mandate the closure of all unabated coal-fired generators. Poor economics of coal power stations, combined with effects of the UK carbon floor price and existing EU emission regulations, are likely to lead to all but 1.5 gigawatts of Britain's coal power stations to shut before the 2025 deadline.

South Korea today announced an energy roadmap for 2017-2031 which sets out steps on how to shift the country’s reliance on coal and nuclear power towards renewable energy and natural gas. Paik Ungyu, Minister of Trade, Industry and Energy confirmed the government's plan to shut down seven ageing coal power stations and convert six coal power projects to run on LNG.

Page 15 of 71

News in Brief

IEA stages Clean Energy Transitions Summit

July 14 – Ministers from dozens of countries, accounting for over 80% of the world economy, have participated in the first Clean Energy Transitions Summit organised by the International Energy Agency (IEA). Dr Fatih Birol, the IEA’s Executive Director, said there “clearly is momentum” behind a sustainable recovery from the economic impacts of the Covid-19 pandemic. Participants agreed to reconvene in mid-2021.

Siemens Energy to exit coal

Jul 13 – Newly formed technology company Siemens Energy wants to phase-out any operations and technology to related to coal-fired power generation, CEO Joe Kaeser said, without giving a specific timeline. Siemens had been harshly criticised earlier this year for participating in the Adani coal mine project in Australia.

Statkraft, GE enhance GB grid stability

July 10 – Statkraft and GE Power Conversion are working together to stabilise Britain’s power grid. To that end, GE will manufacture and install two Rotating Stabiliser synchronous machines at Statkraft’s site in Keith, Moray. Statkraft was awarded four stability contracts (two at Keith and two at Lister Drive) by National Grid ESO (NGESO) earlier this year.

Siemens Energy spin-off approved

July 9 – A large majority of Siemens shareholders have voted to approve the spin-off of the company’s energy business. The spin-off was approved by 99.36 percent of capital stock represented at today’s extraordinary shareholders’ meeting.

Central Hudson links solar farms to VPP

July 9 – Central Hudson Gas & Electric Corp has established its distributed generation program within the broader context of New York State’s energy plan. Together with Sensus and their Remote Telemetry Module (RTM-III), the Central Hudson will monitor decentralized solar PV backed up by flexible gas gensets.

Siemens and GREEN Solar turn German town CO2-free

July 8 – GREEN Solar and Siemens Energy are jointly developing a concept for making Herzogenrath CO2-free. The plan is to provide an energy-efficient and economical combination of solar power plants, wind turbines, batteries, CHP and combined cycle power plants, as well as heat and hydrogen storage. The hybrid system will be built on the grounds of Nivelsteiner Sandwerke and will be large enough to cover the city’s entire energy demand with zero CO2 emissions by 2030.

Denmark paves the way for Nord Stream 2

July 7– Denmark on late Monday gave the Nord Stream 2 consortium permission to utilize pipe-laying vessels with anchors in Danish waters, paving the way for the Gazprom-led consortium to complete the interconnector. Construction of the 1,230-kilometre pipeline is nearly complete, except for a final stretch of about 120-kilometers in Danish waters. The project was halted in December when the Swiss-Dutch pipe-laying company Allseas suspended works over threats of U.S. sanctions.

EPRI tests early warning system

July 6– The Electric Power Research Institute (EPRI) is conducting trial tests with multiple utilities across the United States of an early warning system. It can detect an off-gassing event as a precursor to thermal runaway up to 30 minutes prior to a cascading failure. This gives plant operators time to mitigate the problem or shut down the system.

KKR buys stake in First Gen

July 3 – Valorous Asia Holdings, owned by KKR investment funds, has bought a 11.9% stake in First Gen through a voluntary tender offer. First Gen, one of the Philippines’ largest independent power producers with 3,492 MW installed capacity, is owned by First Philippine Holdings which is controlled by the Lopez family. KKR’s acquisition of the First Gen stake is worth nearly $192.3 million.

Gazprom’s ‘BBB’ rating affirmed

July 2 – S&P Global Ratings, Moody's Investors Service and Fitch Ratings have affirmed Gazprom's long-term credit ratings as part of their annual reviews. The ‘BBB’ ratings for Gazprom from S&P and Fitch are in line with the sovereign credit rating of the Russian Federation, while Moody's ‘Baa2’ rating is a notch higher.

MHIEC to refurbish WtE plant in Kushiro

July 1 – Mitsubishi Heavy Industries Environmental & Chemical Engineering Co (MHIEC) has received an order from the Kushiro Wide-Area Federation to repair and improve the core equipment at the local Waste-to-Energy plant in Takayama. The WtE plant has a capacity of 240 tonnes per day (tpd). Renovation will increase the energy efficiency of the fluidized bed type gasification and ash melting furnace facility, reducing emissions by around 15% annually. Works are due completed in September 2023.

Nigeria: Only two of six power projects on target

June 30 – Nigeria’s Bureau of Public Enterprises has disclosed that only two out of six privatized power plants were delivered on target. Only Transcorp Power Ltd and Geregu Power Ltd out of the six privatised electricity generation companies (GENCOs) were said to have met their performance targets since taking over.

German investors prefer solar over wind

June 29 – Energy infrastructure investors are keen to build solar power projects in Germany, but shun wind parks. In the latest solar power auction, investors offered to build almost 450 MW of capacity – more than four times the 96 MW of volume on offer– with the average successful bid at 5.27 cents per kilowatt-hour (ct/kWh). The wind auction, in contrast, was undersubscribed: The German network agency  (BNetzA) tendered around 826 MW, but successful bids only totalled 464 MW, at an average price of 6.14 ct/KWh.

MAN ventures into synthetic fuels

June 26 – MAN Energy Solutions has entered the hydrogen economy with the recent pro rata acquisition of H-TEC SYSTEMS, an electrolysis tech firm. The German OEM also committed itself to upgrading its gas turbines to run on 100% hydrogen by 2030.

Varegro starts using Cummins gas genset

June 25 – Belgian-based horticultural company Varegro, has started to use a Cummins HSK78G gas generator to power its greenhouses in Oostrozebeke, West Flanders. Varegro said it selected the Cummins HSK78G genset to produce combined heat and power (CHP) on its premises at a competitive cost for use in energy-intensive greenhouse facilities.

GE names Deloitte as independent auditor

June 24 – GE’s audit committee has selected Deloitte as the company’s independent auditor for the 2021 fiscal year, replacing KPMG. The selection of Deloitte concludes GE’s latest audit tender process.

Northern German states push for hydrogen pilot cluster

June 23 – Northern German states are pushing for greater hydrogen use with a pilot project cluster. Some 12 large demonstration plants for the production and use of green hydrogen are meant to be realised in Hamburg, Schleswig-Holstein and Mecklenburg-Western Pomerania. The aim is to demonstrate how 75% of CO2 emissions can be saved in the region by 2035.

House ad Jul2020