Selling heat in addition to electricity has made new combined-cycle power plants (CCPPs) economically feasible in Germany, Norbert Wenn, Director of Sales Support and Product Line Management at Siemens told Gas to Power Journal at this year's COGEN Europe annual conference in Brussels. "The renewed German CHP law and incentive scheme has made a business case of the Lausward plant currently being built in Düsseldorf, which would have never happened had it been planned as a pure condensing plant," he said.
Long-term regulatory stability is key for helping make new cogeneration developments more attractive for European industry, Dave Brownell, Refinery Manager at ExxonMobil told Gas to Power Journal at this year's COGEN Europe annual conference in Brussels. "In Europe, we're looking for stability in the rules of the game; stability in terms of regulations. A large cogen plant is an investment of hundreds of millions of euros, typically takes four to six years of project development and the operational life of the unit exceeds 30 years," he said.
The EU's 2004 CHP Directive has played an important part in the encouragement and recent introduction of CHP incentives across several member states, according to an International Energy Agency (IEA) report on Cogeneration and District Energy. The Directive establishes general principles for CHP policy but leaves detailed implementation to member states.
The introduction of Capacity Payment Mechanisms (CPMs) as suggested under the UK Electricity Market Reform may solve immediate problems of renewable output increasing revenue volatility for operators of coal- and gas-fired power plants, but could introduce many more, says James Marshall, Senior Consultant, Pöyry Management Consulting. "Conventional generation must expect to rely on a smaller number of hours to cover fixed and capital costs, with the timing largely determined by weather patterns with only short-term predictability," he told Gas to Power Journal.
Stricter emissions regulations from the US Environmental Protection Agency (EPA) could make many of the country's coal-fired power plants just as expensive to run as gas-fired plants, even at much higher prices for natural gas, Lincoln F. Pratson, professor at Duke University told Gas to Power Journal, commenting on a study under his lead from Duke's Nicholas School of the Environment.
Low gas prices, state incentives, environmental regulations and the retirement of old power plants helps fuel rising investment in combined heat and power (CHP) installations in the US, according to a Department of Energy (DOE) and Environmental Protection Agency (EPA) report.
President Barrack Obama supports an initiative to expand the currently installed capacity of 82GW by another 40GW by the end of 2020.
District heating and cooling (DHC) cogeneration currently provides 1.6 million households in 26 South Korean areas – mostly in greater Seoul – with power and heat, after an array of new installations came online in the wake of the 1999 Integrated Energy Supply (IES) Act. The latest report of the International Energy Agency (IEA) on cogeneration and district energy highlights the Korean IES regulation as an example of CHP best practice.
Stricter regulations from the US Environmental Protection Agency on SO2, particulate matter, NOx and mercury could make nearly two-thirds of the country's coal-fired power plants just as expensive to run as gas-fired plants. The cost of complying with these regulations will accelerate the trend of power producers shifting from burning natural gas instead of coal, a study from Duke's Nicholas School of the Environment finds.
Smaller combined heat and power (CHP) installations are experiencing growth in many EU member states but the sector is also under pressure from the effects of the economic crisis, electricity market issues and ongoing fluctuations in the price of fuel, according to COGEN Europe's 2013 Snapshot Survey of the Cogeneration sector in Europe.
Fuel prices will continue to favour baseload coal-fired power generation over gas-fired generation in the UK through the summer months and beyond, according to the National Grid's Summer Outlook Report. This is despite the application of a carbon price support (CPS) of £4.94/ton on April 1 for the 2013-2014 financial year.
UK Energy Intensive Industries have agreed to extending energy efficiency improvement targets to 2020 as part of the voluntary Climate Change Agreements scheme which provides an extension to the Climate Change Levy. These efficiency improvements are estimated to deliver an overall 11 percent energy efficiency improvement across all industry sectors.
Ofgem is to fine SSE £10.5 million for misselling electricity to consumers in breach of Standard Licence Conditions. The fine – the largest ever to be imposed on a UK energy supplier – relates to numerous breaches of SSE's obligations relating to telephone, in-store and doorstep sales activities. Ofgem says that SSE consistently failed to provide clear and accurate information on prices and potential savings to customers about whether or not to switch suppliers.
Japan has decided to revamp its electricity industry by obliging utilities to split their power generation and distribution segments into separate businesses. The move – approved on Tuesday by the Prime Minister's cabinet – is intended to help foster competitiveness, and encourage innovation and modernisation in the country's electricity sector. A bill based on the cabinet's decision is to be submitted to parliament "around 2015."
The gas market is not yet fully liberalized and things still needs time, but as the government we are committed to duplicating the efforts made when we liberalized the power market, Turkey's deputy minister for energy and natural resources, Hasan Murat Mercan, told a conference in Istanbul organized by Gas to Power Journal.