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.
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.
A new market design for German energy markets will not emerge in 2013, forecast Franzjosef Schafhausen, head of the German environment ministry's energy transition units, despite efforts of the government to reach a compromise with power producers in the debate over 'capacity payments' versus 'strategic reserve'.
Decarbonisation targets in the UK will have a profound effect on electricity markets, altering the patterns of demand and the power generation mix, says Stephen Woodhouse, director at Pöyry Management Consulting. A rise in low-carbon capacity, in his view, requires tradable balancing resource options.