Regulation & Policy

Decentralized power provider UK Power Reserve has called on policy makers to strengthen the role of the Connection and Use of System Code (CUSC) panel as an independent body. In light of proposed modifications to the CMP285 CUSC governance reform, UKPR has spoken out against what it perceives to be an “overwhelming dominance of the Big 6 in [Britain’s] industry governance.”

U.S. Secretary of Energy Rick Perry told press that “clean coal” will be at the centre of his energy agenda, using “American innovation” to advance cleaner, cheaper coal which is also meant to help create jobs. Speaking after a visit of the National Energy Technology Laboratory (NETL) in Pittsburgh, he was impressed by research into innovative “cracker plants.” These facilities use special catalysers to crack molecules within the natural gas to arrive at byproducts such as ethane and ethylene.

Off-grid distributed energy systems (DES) – using renewable energy but backed up by flexible gas or diesel generators – are mushrooming throughout the Association of Southeast Asian Nations (ASEAN), as technology costs keep falling. This trend helps alleviate electricity shortages of some 133 million people in the region’s rural areas.  

National Grid projections show that growing use of electric vehicles in the UK could increase peak power demand by 3.5 GW by 2030 and 18 GW by 2050. Today, UK peak power demand is approximately 60 GW. Under the “Consumer Power Scenario,” National Grid anticipates electric vehicle (EV) sales to account for more than 90% of all cars by 2050.

Decarbonising heat is cheaper than tackling emissions in many other sectors, according to the Energy Technologies Institute (ETI) who calls on policy makers to adopt an “integrated systems approach” across Britain to show how low carbon heat provision delivers consumer-value. According to ETI chief engineer, Andrew Haslett, “the challenge is one of replacing natural gas-based heating in its present form, possibly by allowing consumers to buy low carbon heating packages.”

Though burning coal for generating electricity is cheap, and Japan is home to supercritical high-efficiency coal power stations, key ministers warned that if all proposed coal-fired capacity got built this would put Japan’s emission reduction targets in jeopardy. "It doesn't matter if they are highly efficient or not, power stations using coal are seen outdated as EU and other countries are moving away from them," environment minister Kouichi Yamamoto said.

The International Energy Agency (IEA) has held its 2nd Global Conference on Energy Efficiency in Paris last week, attended by business executives and senior government officials from around the world, including all G20 countries. Dr Fatih Birol, the IEA’s executive director pointed out that only 30% of energy use is subject to efficiency standards. “This means there is huge room for improvement.”

The Asian Development Bank’s (ADB) focus on financing infrastructure in India’s lagging states helped promote inclusive economic growth, spurred the development of some power generation projects to help increase electrification rates. During the year 2016-17, total energy availability increased by 4.1% over the previous year and the peak met increased by 5.7%, according to India’s Central Electricity Authority (CEA).

The Louisiana Public Service Commission has approved construction of the Lake Charles Power Station, a 994-MW combined-cycle gas power plant in Westlake. Entergy Louisiana called the Lake Charles CCGT is a “key element of its plan to provide the clean, efficient energy” – the operator also said expects to issue full notice to proceed to construction by August 1.

Wasteful flaring of natural gas is meant to be a thing of the past, yet the wasteful burning of gas at wellhead increased over the past few years – notably in the United States during the rush to tap hydrocarbon-rich shale rock formations. ‘Zero Routine Flaring by 2030’ is the explicit aim of the World Bank-led Global Gas Flaring Reduction (GGFR) initiative – but there is a risk that funding for gas-gathering initiatives runs dry because this goal is losing political traction under the Trump Presidency.

Pulling the plug on the Kemper County Integrated Gasification Combined Cycle (IGCC) power project, the Mississippi state energy regulator has passed a motion instructing its legal counsel to propose a solution that would end the Mississippi Power’s gasification project following years of delays and cost overruns. The watchdog encouraged Mississippi Power, however, to re-license the plant and produce electricity based on natural gas instead.

Enel, Europe’s biggest utility by market value, is about to shut down two large coal power plants in Spain by 2018, following through with a decision by CEO Francesco Starace to close the company’s entire coal and lignite generation by 2030. His new strategy shows the impact of new EU pollution limits, particularly the revised Best Available Techniques Reference Document, known as BREF.

The US state of California has teamed up with several German states in the ‘Under2Coaltion’ to tackle climate change. Edmund G. Brown, Governor of California said US President Trump’s withdrawal from the Paris Agreement underscored the “significance of subnational actors.” California, the sixth-largest economy in the world, is adamant to pursue its clean energy targets and, together, with several German federal states, aims to provide strong leadership in the COP23 climate talks in Bonn this November.

Alan Finkel, Australia’s top scientist and author of a prominent energy market review, has urged the Government to set a clean energy target that does not be put any fuel-type at a disadvantage. His modelling work shows a scenario under which power prices could fall, if Australia’s stringent emission targets are lowered.

Ambitious plans, set out by South Korea’s newly instated Government, herald a U-turn away from coal and nuclear towards cleaner-burning natural gas and renewables. Responding to public concern over air pollution the administration of President Moon Jae-in, who took office in early May, is considering a construction stop for several coal and nuclear projects – a move poised to cause electricity prices spikes and medium-term capacity shortages.

Page 13 of 55

News in Brief

Wärtsilä wins contract in Barbados

Jan 24 – Barbados Light & Power Company Ltd (BLPC) has contracted Wärtsilä to fast-track the supply of a 33 MW flexible power plant, as an EPC project. The plant, set to run on four Wärtsilä-32 engines, will be built at a site adjacent to BLPC’s 10 MW solar photovoltaic plant at Trents, St. Lucy, located on the northwestern coast of Barbados.

Azito power plant takes FID

Jan 23 – Globeleq and IPS have reached financial close on a 253 MW expansion of the Azito gas-fired power plant near Abidjan. An MXL3 upgrade will boost the capacity of the combined-cycle plant from 460 MW currently to 713 MW, equaling about 30 percent Ivory Coast’s total capacity installed.

Climate risks become urgent

Jan 22 – Adaptation to climate change is now “urgent,” McKinsey claims, suggesting there would be “many adaptation opportunities.” Climate science shows that the risk from further warming can only be stopped by achieving zero net greenhouse gas emissions through renewable built-out and energy storage.

India’s electricity demand may triple, IEA finds

Jan 21 – Energy demand in India is set to double by 2040, and its electricity demand may triple, according to the International Energy Agency (IEA). Oil consumption in India is seen grow faster than that of any other major economy, making energy security a key priority, the IEA said in its first in-depth review of India’s energy policies. Amid strong growth, renewables now account for almost 23 percent of India’s installed capacity, while energy efficiency improvements helped avoid 15 percent of India’s additional energy demand, oil and gas imports, and air pollution.

Regulators approve CCGT in Wisconsin

Jan 20 – State regulators have approved a permit for Dairyland Power Cooperative to build a $700 million combined-cycle gas power plant in northwestern Wisconsin. The Nemadji Trail Energy Center will produce 625 MW and is scheduled to begin operations by 2025.

ExxonMobil enhances turbine oils

Jan 17 – New high performance turbine oils, developed by ExxonMobil Lubricants, are  entering the market which are formulated to prevent build-up of lacquer, varnish and deposits. The oils are designed to protect against thermal and oxidative degradation, one of the root causes of deposit build-up.

Wärtsilä signs O&M deals in the Bahamas

Jan 16 – Following the commissioning of a Wärtsilä-built 132 MW power plant in Bahamas in December, the Finish manufacturer now signed a two-year operation and maintenance (O&M) accord with the plant owner, the Bahamas Power and Light Company (BPL). Wärtsilä will transition, train, and develop the owner’s Bahamian work force and provide key performance guarantees.

China, S'Korea curtail coal to tackle air pollution

Jan 15 – Beijing city government’s aggressive approach to tackling air pollution is working and South Korea’s spring coal-fired curtailments show some success in cutting seasonal emissions. According to Wood Mackenzie, this should benefit LNG, particularly while spot prices remain low.

Sri Lanka at brink of power shortages

Jan 14 – Sri Lanka could face power cuts by March, after plans for a large-scale coal power plant were been cancelled just prior to start of construction, and a tender for a 300 MW diesel plants ended up in court. On the demand side, pressure is building up as the region is moving into the dry season in February and March. Weather warnings say the island is likely to receive lower than average rainfall in the first quarter of 2020.

Caterpillar’s new genset comply with UK & German grid codes

Jan 13 – Caterpillar Inc. has launched a series of new generator sets that comply with the new G99 United Kingdom, VDE-AR-N 4110 German and Belgium C10/C11 grid codes. The following gensets – G3500H, CG132B, CG170, and CG260 (rated from 280-4,500kVA) – have been verified to be able to accommodate different reactive power modes, active power functions, and connection conditions for normal operation or reconnection after mains decoupling.

Transneft launches battery-based power supply for ILI tools

Jan 10 – Transneft Diascan, the largest Russian inspection service provider for pipelines, has developed and put into operation a power supply system for in-line inspection (ILI) tools based on rechargeable batteries. Flaw detectors performing inspections of trunk oil pipelines, gas pipelines and oil product pipelines can now use the energy from rechargeable batteries, which helps save time and reduces the cost of in-line inspection.

Pavilion starts trading LNG out of Madrid

Jan 9 – Singapore-based Pavilion Energy has completed the acquisition of all gas and LNG assets of the Spanish utility Iberdrola. From its new European headquarters in Madrid, Pavilion said has launched 2020 LNG trading operations with supplies focusing on Spain and the UK market.

Gazprom extends gas transits via Belarus until 2021

Jan 8 – Gazprom and Gazprom Transgaz Belarus have sealed additional agreements to extend the contracts for gas supplies to and gas transportation across Belarus until 2021. According to the newly-signed documents, the contractual supply and transit volumes in 2020 will remain at the level of 2019.

EastMed pipeline to take FID by 2022

Jan 7 – Greece, Cyprus and Israel have signed an agreement to build the 1,900-kilometre EastMed pipeline at an estimated cost of 6 billion Euros. The subsea pipeline, spanning over 1,900-kilometres would initially carry 10 Bcm of gas per annum from Israeli and Cypriot waters to Crete and then on to the Greek mainland and into the European gas network via Italy. A final investment decision (FID) is meant to be reached in 2022, given that the pipeline is scheduled for completion by 2025.

U.S. energy-related emissions drop over 2%

Jan 6 – Fewer emissions from coal consumption, combined with lower energy demand, have helped to significantly reduce the overall energy-related carbon emissions in the United States. According to government statistics, energy-related CO2 emissions fell 2.2 percent last year, and the downward trend is forecast to continue into 2020.

Brent crude prices surge

Jan 3 – North Sea Brent crude prices have risen to their highest level since September 2019, up nearly $3 per barrel because of Middle East tensions coupled with improved Chinese economic forecasts. Brent crude futures for March 2020 delivery were last seen trading at 69.21 per barrel the Intercontinental Exchange (ICE). This bullish price sentiment will feed through to oil-indexed natural gas contracts and LNG deliveries, linked to the Japanese crude cocktail (JCC) basket price.

IEA says coal’s fate tied to Asia

Dec 23 – Rapid rise of wind and solar power in many parts of the world has pushed coal-fired power generation into steep decline in most developed countries. "But this is not the end of coal, since demand continues to expand in Asia," analysts at the International Energy Agency commented: "The region’s share of global coal power generation has climbed from just over 20 percent in 1990 to almost 80 percent in 2019, meaning coal’s fate is increasingly tied to decisions made in Asian capitals."