Regulation & Policy

Los Angeles Department of Water and Power (LADWP), the city’s municipal utility, has abandoned plans to retrofit three gas-fired power plants from water- to air-cooling. Instead, the utility will phase out the Scattergood, Haynes and Harbor gas-fired power units by 2029, and invest renewables to lower its carbon footprint.

Though EU member states decided to tighten unbundling rules on gas interconnectors, parliamentarians agreed to a French-German compromise for the €9.5 billion Nord Stream-2 pipeline. The deal places the controversial project “under European control”, but with Germany as the lead negotiator with Russia's Gazprom.

General Electric will have to pay a €50 million fine to the French government after creating just 25 out of a promised 1,000 jobs in the country in connection with the Alstom takeover.

The German ‘coal commission’ has reached a historic decision over the weekend to shut down all of the country’s lignite- and hard coal-fired power plants in less than 20 years. By 2038, at the latest, no more electricity will be generated from coal and Germany’s coal-dependent federal states will get €40 billion in compensation.

Exiting coal – in addition to nuclear – is likely to propel up Germany’s energy costs by up to €54 billion, industry leaders warn. About 10 GW of coal-fired capacity could be taken off the grid by 2022, in a political move that would make the cost of gas-fired power generation a critical factor for the Germany’s economic competitiveness.

Energy-intensive industries in Germany are pressing the government to limit the cost burden of the country’s green energy transition for their businesses. The much-discussed ‘coal exit’ will favour flexible gas power plants, but industries fear it could push up wholesale power prices by up to 50%.

Wisconsin’s state utility regulators will decide on whether the proposed 550-MW Nemadji Trail Energy Center will be built. The developers have filed plans to co-develop the $700 million facility, and now await an official permit.

The European Investment Bank (EIB) has embarked on a review of its lending criteria for energy infrastructure projects, notably a 550g CO2/kWh emissions performance standard. EU negotiators had adopted this limit just weeks earlier for a ban on capacity payments to power plants exceeding it.

Idled power plants in India that are stranded due to a lack in gas supply might soon get regasified LNG at a subsidized rate, financed the government-run Power System Development Fund. The aim is to revive flexible gas power plants through an e-bid RLNG scheme.

Smart electrically-driven heating is a “valuable field in which to invest”, Delta-ee research finds, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. In the UK, new business models are emerging providing heat-as-a-service, with the customer avoiding the need for buying fuel and appliances by simply buying the heat, and comfort that comes with it.

Flexibility and system integration of renewable energy sources will be in focus of a Ministerial Summit co-hosted by the German government and the International Energy Agency (IEA) in Berlin in September. Tackling the intermittency challenge will be critical for 33 countries are likely to have up to 20% variable renewables in their power systems by 2023.

The Chinese government is watering down its pledges to reign in climate change and focuses on stepping up energy imports instead. Over the past year, China’s has demand surged 15% and a big part of these additional needs will soon be met through the Russian ‘Power of Siberia’ pipeline project as well as more LNG.

U.S. Environmental Protection Agency (EPA) is about to initiate more rollback regulations in favour of coal in the power sectors. The proposals included loosening the New Source Performance Standards which mandate how much CO2 new power plants can emit. However, these rollbacks are unlikely to stop the demise of the U.S. coal industry as natural gas is outcompeting coal on cost.

Adamant to end coal-burn in Israel’s power sector, the energy minister Yuval Steinitz foresees natural gas to make up 83% of the country’s energy mix by 2030, and renewables account for the remainder. If implemented, Israel’s new energy policy would herald a quantum shift in the county’s resource use given that the transport sector is also meant to run entirely on gas.

Distributed energy sources will be tested as a way to restart of electricity supplies under a £11.7 million project, partly funded by the UK energy regulator Ofgem. The project will see National Grid, SP Energy Networks and TNEI explore how distributed gensets can be put to use to get the grid up and running again, should a ‘Black Start’ event occur.

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News in Brief

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.

Is hydrogen Singapore’s future fuel?

Sept 25 – KBR and Argus have been selected to conduct a feasibility study on hydrogen imports and downstream applications for Singapore through to 2050. The aim is to assess the feasibility and cost-effectiveness of hydrogen use in Singapore’s power generation and transport sectors

Diablo Unit-2 offline

Sept 24 – Unit-2 at the Diablo Canyon nuclear power plant in California is offline for a scheduled maintenance and refuelling, the operator PG&E said. During the outage, several gas-fired power plants will be dispatched to make up for the missing capacity.