Energy industry stakeholders have unanimously condemned U.S. President Trump’s latest market interference by directing the Department of Energy (DOE) to stop, what he calls, “impending retirements of fuel-secure power facilities.” Rebuking the move, several energy industry associates called the action “misguided” as it would be effectively subsidizing “failing coal and nuclear plants.”
Improving power system flexibility is vital for cost-effective management of variability and uncertainty in both supply and demand, the International Energy Agency (IEA) finds. Hence the agency calls for a proactive response from regulators and policy makers to help manage today’s fundamental a transformation of energy markets.
China's National Development and Reform Commission (NDRC) will unify China’s residential and industrial city-gate natural gas pricing systems from June 10 to better reflect rising demand and costs. The new mechanism will allow gas prices to rise by no more than 20% from a benchmark price, NDRC stated, which is “more flexible” than the existing one which since 2010 kept a ceiling on residential gas prices at at 1.4 yuan (about $0.22) per cubic metres.
Canada’s current policies, combined with energy efficiency investment, could deliver final energy savings of 1.9% per year on average through 2050, the International Energy Agency (IEA) finds. Sectors with the greatest energy savings potential would be buildings (28%), followed by transport (25%), oil and gas extraction (21%) and industry (12%).
Dirty king coal is no longer vital for Germany’s security of power supply. In fact, about half of the country’s coal-fired power generation capacity could be shut down over the coming years if planned grid extension and the additional gas-fired plants start operating according to schedule, said Jochen Homann, head of the German energy regulator.
Deployment of electric vehicles so far has fallen short of expectations hence penalizing policy measures, like London’s new Emissions Surcharge, or T-Charge, have been introduced to spur growth. Penalising offending vehicles is one part of the solution, finds Jacob Klimstra, Senior Energy Consultant and Member of the Advisory Board for Electrify Europe. He highlighted plans by the Dutch government for all new cars to be zero-emissions vehicles by 2030 – others, including Paris, are already following suit.
Chicago-based Exelon has approached the U.S. Federal Energy Regulatory Commission (FERC), suggesting it would keep operating two gas-fired power plants and the LNG import facility in Everett between 2022 and 2024, if it gets permission to collect about $1 per month from all electricity customers in New England. The Mystic gas-fired power plants are some of the largest generators in New England, but they are not economical in the current market environment.
Painting a bleak picture of the planet’s climate, the International Energy Agency (IEA) has warned if countries limit their clean energy efforts to their nationally determined contributions (NDCs) in the Paris Agreement, this will set us on a path consistent with about 2.7°C warming by 2100. Yet, as the adage goes, “that which is measured, improves,” says IEA Climate Change Policy Analyst, Caroline Lee, so there is hope that natural gas and renewables will help turn the tide towards more sustainable electricity supply.
Beginning June 1, New England will become the first US grid operator to fully integrate demand-response (DR) resources into its daily energy dispatch and reserve processes. The ISO estimates that about 408 MW of DR will be available which will participate in real time in the energy markets. Pay-for-performance incentives will be in effect starting June 1. With this instrument, the ISO is confident to meet peak summer demand.
Federal financial interventions and subsidies in U.S. energy markets have been in a steep decline over the past five years. According to the U.S. Energy Information Administration (EIA), federal monies spent in energy markets nearly halved in the period 2013-16, falling from $29.3 billion in the 2013 fiscal year to $15.0 billion in FY2016.
Michigan Public Service Commission (MPSC) has approved DTE Electric’s certificates of necessity filing to build a 1,100 Gigawatt gas-fired power station in St. Clair County at a cost of nearly $1 billion. Construction will now start in early 2019, DTE said, aiming to get the plant commissioned by 2022.
Urging for quick action to smarten up electricity transmission networks, Enel CEO Franceso Starace has criticised the lack of support from regulators and policy makers. The need for digitalisation “is very difficult for regulators to understand,” he said at an industry conference in Berlin, but “if you forget the networks, dear ministers, they will not carry on.” For utilities, transiting from fossil fuels to renewables, the grids are seen as a “very sexy part” of the value chain but needed a lot of investment.
Unfazed by Ukraine’s vocal protest, permitting is advancing quickly for Nord Stream-2 AG to build a second pipeline through the Baltic Sea. Finland has just given the green light for pipe laying in its Exclusive Economic Zone (EEZ), all German permits are on the table, but final approval under the Finish Water Act is still pending. Gazprom, the main project sponsor, is now pushing to start construction, stressing the pipeline will “deliver the additional gas required by Europe at a competitive price.”
Initial optimism of global LNG suppliers that South Korea’s new electricity policy might lead to higher demand growth has been replaced by the recognition that more needs to be done for natural gas to replace coal and nuclear in Korea's power generation mix. The 13th Long-term Natural Gas Supply Plan for 2018 to 2031, released by the Government on April 5, anticipates LNG demand to reach 40.5 million tons (Mt) by the end of the forecast period, up just 3 Mt from 2017-levels.