New investments in gas-fired capacity in the UK are being put on hold until there is clarity surrounding the government's ongoing Energy Market Reform (EMR), George Grant, Director at Stag Energy told Gas to Power Journal at the Westminster Energy, Environment and Transport Forum keynote seminar in London. "The industry acknowledges that we are waiting for the EMR, part of which is the capacity mechanism that's being talked about [and] there isn't going to be any new investment in gas until that's clarified. So the phrase that's being thrown out about there being a dash for gas is just incorrect," he said.
The implementation of a capacity mechanism as part of the UK's Energy Market Reform (EMR) should be done "as soon as possible" in order to spur investment and prevent electricity shortfalls in the coming decade, Stephen Davies, Energy and Environmental Policy at E.on UK told Gas to Power Journal at the Westminster Energy, Environment and Transport Forum keynote seminar in London. "From our point of view a capacity mechanism is necessary. It's very difficult for any investor to build right now and looking at the spark spread, the market is very challenging for gas," he said.
The UK government is likely to oppose an EU renewables target for 2030 which is considered "inflexible and unnecessary", energy secretary Ed Davey said. He made the comment after the European Parliament on Monday extended a deadline for the submission of amendments to a proposal to intervene in the carbon market.
India's Central Electricity Authority (CEA), which oversees development of the national grid for the Indian Ministry of Power, has reduced its gas-fired generation target for the current year by almost 46 per cent amid gas supply shortages. Low natural gas production output last year is expected to continue through 2013, an official told The Economic Times, despite Reliance Industry's recent announcement of a "significant gas condensate discovery in deepwater KG D6 block".
RWE chief executive, Peter Terium, has voiced strong criticism against "one-off measures or action taken by individual [European] countries" both regarding capacity mechanisms or expansion targets for renewables. "[These] are of no use to us; we must find European solutions," he said.
Terium was one of eight CEOs of European energy companies who warned that Europe is currently facing "a perfect storm" which was endangering security of supply, undermining their ability to attract capital and hindering the EU's transformation to a low-carbon economy.
National leaders in the EU and the Commission are confronted with a trade-off between keeping energy prices high to encourage greater energy efficiency or taking measures to lower prices to help ease pressure on consumers and support Europe's energy intensive industries, the EU's Energy Commissioner Günther Oettinger told the European Parliament during a debate in Strasburg on Tuesday.
US government approval for the Freeport LNG Terminal on Quintana Island, Texas to export LNG to countries with which the US does not have a Free Trade Agreement (FTA) have brought Japan a step closer to realising cheaper supplies of natural gas for power generation. Osaka Gas and Chubu Electric have already signed liquefaction tolling agreements with Freeport LNG, back in July 2012, to each acquire a 2.2mtpa production capacity of the first train at Freeport, potentially as early as in 2017.
The EU's Climate Action Commissioner Connie Hedegaard has called on the European Council and Parliament to approve the proposed back-loading of 900 billion carbon emission allowances (EUAs) in emissions trading scheme (EU ETS). Back-loading would reduce the surplus of emissions in the ETS, and the subsequent rise in carbon prices would encourage power producers to favour gas over coal.
The European Network of Transmission System Operators for Electricity (ENTSO-E) has called for fast tracking the adaptation of nine network codes as a way to improve the operation of Europe's interconnected transmission networks. The association earlier criticised national initiatives to implement capacity mechanisms, calling for an integrated European approach.
National Grid is tasked to provide analysis and modelling on the government's Electricity Market Reform (EMR) delivery plan, assess eligibility and the allocation of Contracts for Difference (CfD), and will run auctions for planned capacity mechanisms. In June, National Grid will deliver its final modelling report to the Department of Energy and Climate Change (DECC) to be appended to DECC's July Delivery Plan, Mark Ripley, Project Director EMR at National Grid told Gas to Power Journal.
The Montana Public Service Commission (PSC) has gone on record as opposed to proposed rules from the Environmental Protection Agency (EPA) to restrict greenhouse gas emissions for new power plants. In a letter to the EPA, the five members of the PSC called for a withdrawal of proposed rules for the New Source Performance Standards (NSPS) which they said would be particularly harmful to coal-fired power generation.