Regulation & Policy

Ontario Premier Kathleen Wynne has admitted that her Liberal party had made a "political decision" to cancel two under construction gas-fired power plants in Oakville and Mississauga before the 2011 provincial election. The Oakville and Mississauga plants were to have an installed capacity of 900MW and 280MW, respectively.

Minnesota Power, a subsidiary of ALLETE Inc., has released plans calling for a decrease in coal and an increase in natural gas and renewable energy sources in its future power plant portfolio. The company currently generates about 80 percent of its power from coal but envisions a long term target of one third coal, one third renewable, and one third natural gas and other power generating capacity.

Los Angeles will stop using electricity generated from coal-fired power plants by 2025, pledged Mayor Antonio Villaraigosa. "In a couple of weeks, I will be signing agreements to get completely out of coal by 2025," he said at an event sponsored by the UCLA's Institute of the Environment and Sustainability.

A decrease in the use of coal and an increase in the use of gas for electric power generation due to cheaper natural gas prices has played a significant role in reducing US SO2 and NOx emissions in recent years, according to the US Energy Administration (EIA). Between 1990 and 2012, SO2 emissions from electrical power generation fell from over 15 million short tons to about 3 million short tons, while COx emissions dropped from about 6 million short tons to less than 2 million short tons.

The emergence of a harmonised pan-European capacity market design is "unlikely" and efforts may come "too late", says Håkan Feuk, Chairman of TF Market Design for Renewable Energy Integration at Eurelectric, adding that some common denominators for national CRM schemes need to be established to ensure a level playing field for investors and consistency with the integration process of European energy markets.

The oil and gas-fired Dhuvaran power station (534 MW) in the Indian state of Gujarat was shut down following a severe shortfall in gas requirements. Gas supply allocated by the central government covered only 46.71 percent of its total gas needs in 2011-12.

Unless Germany introduces measures to curb the costs of renewable feed-in-tariffs, the price tag for its energy transition policy (Energiewende) may amount to up to €1 trillion by the end of the 2030s , German environment minister Peter Altmaier warned.

The UK government will make best use of new powers in the Energy Bill to enforce energy regulator Ofgem's retail market reforms, Prime Minister David Cameron said Thursday.

Though discarding today's warning of the UK energy regulator Ofgem's on tightening reserve margins as "alarmist", IHS energy analysts suggest the Government should provide greater clarity on regulatory incentives for new low-carbon generation capacity.

The US Court of Appeals for the District of Columbia Circuit has ruled that the US Federal Energy Regulatory Commission (FERC) had acted lawfully when approving a capacity market rate structure for ISO New England.

The environment committee of the European Parliament has deferred a vote on backloading up to 900 million carbon emissions allowances by one week, prompting a plunge in carbon prices.

Spain's power producers are calling for new regulatory support mechanisms to help cover investment costs of existing fossil plants. "It is vital to establish a mechanism to reward the backup service of existing gas-fired plants, particularly because the current Spanish regulation does not allow the closure of loss-making units," says Carmen Vindel, Head of International Regulation, Gas Natural Fenosa.

Unless electricity market in India are deregulated and prices become competitive, operators will be hard pressed to make a profit from gas-fired power plants assets when considering the higher costs for imported LNG.

The U.S. Department of Energy (DoE) and the Treasury have made available $150 million in Advanced Energy Manufacturing Tax Credits for clean energy and energy efficiency manufacturing projects. The gas industry, however, criticizes President's Obama's 'all-of-the-above approach' to American energy sources.

Developing a blueprint for an EU-wide capacity remuneration mechanism (CRM) is "premature", Eurelectric said, suggesting that, if developed, CRM should guarantee the availability of peak-load capacity and not promote flexibility.

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News in Brief

Japan starts electricity futures trading

Sept 19 – Tokyo Commodity Exchange (TOCOM) has launched trading in electricity futures to advance price competition in Japan’s liberalized energy market. The East Area peakload electricity contract for October delivery first traded at 10.9 Yen per kWh, lower than the standard price of 11 Yen set by TOCOM in advance.

Duke to reduce rates in 2020

Sept 18 – Duke Energy Florida (DEF) customers will see lower bills in 2020. The utility filed a proposal with the Florida Public Service Commission to reduce rates for electricity and gas by more than 3% while adding more solar power and making grid improvements.

Myanmar approves three power projects

Sept 17 – Myanmar’s Ministry of Electricity and Energy has given the green light to plans for a 1,230 MW gas-fired power plant in Kanpauk, Taninthayi region, a 377 MW gas-fired unit in Ahlon, Yangon region and a 1,390 MW thermal plant in Milaunggyine in Ayeyawady region. The conflict-ridden country is currently producing electricity from 5,600 MW installed capacity, derived both from state- private-owned power stations.

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.