Regulation & Policy

India's Central Electricity Agency (CEA) has spoken out against the construction of any new gas-fired power plant in the country until 2015-16, as restrained domestic production of natural gas is hampering reliable gas supply for power generation.

Operators of gas-fired plants should be allowed to resell natural gas hubs back to virtual trading hubs as a way of offering demand-side responses on balancing platforms, Eurelectric said in a gas strategy paper today.

Spain's National Energy Commission (CNE) is calling for an increase in electricity prices paid by consumers to curtail Government debts worth €24 billion. The so-called 'tariff-deficit' piled up over the past 10 years as utilities had to sell electricity to end-customers at regulated rates below nominal generation and distribution costs.

German E.ON, Italian Enel, Swedish Vattenfall and Swiss Alpig have launched Afiegm, an energy lobby group, urging the French governments to open France's power generation market and to curtail the dominance of EDF. "The question of competition concerns not only supply but also equally production," Afiegm chairwoman Fleur Thesmar said.

Investment in new gas-fired and nuclear plants, rather than wind power, could save the U.K. £45 billion in meeting its 2050 carbon reduction, AF Consult, a Sweden-headquartered technical consultancy, said in a recent report sponsored by the global accountancy firm KPMG.

The U.S. Clean Heat & Power Association (USCHPA) is backing the Smart Energy Act that set a national goal to double the amount of power generated by combined heat and power systems to 170 GW by 2020. The technical potential for additional Combined Heat and Power (CHP) plants at existing sites in the U.S. is between 130 and 170 GW, plus an additional 10 GW of waste heat recovery, according to USCHPA estimates.

In an effort to end shortages of gas supply to power plants, Nigeria's Petroleum Minister, Diezani Alison-Madueke, has called on energy companies to comply with the country's new gas price regime. The Government is concerned that gas companies are not implementing the new, higher price regime that had been designed to attract investment to Nigeria's domestic gas-to-power sector.

Pöyry Energy Consulting calls for a marked-based alternative to introducing formal capacity payments under the UK Electricity Market Reform (EMR). "Market-traded reserve products combined with imbalance prices could deliver a better outcome to support flexible power generation capacity," James Cox, Principal Consultant at Pöyry Energy Consulting told 'Gas-to-Power Journal'.

The new UK energy minister, Charles Hendry, has criticised proposals and time-schedules of the European Commission's (EC) energy infrastructure plan as "overly prescriptive".

A rise in gas-to-power generation would be a bet on the failure of U.K. energy policies under the Electricity Market Reform that favour renewables and nuclear energy, Pierre Noel, senior researcher at the Energy Policy Forum at the University of Cambridge said today. Calling for a level playing field for all power generation technologies, Noel opposed the introduction of subsidies for capital-intensive technologies that infringe on the role of gas in the European energy mix.

Investments in energy is "a high priority" for the Singapore government, Stephen Hill, senior trade & investment officer at the British High Commission told Gas-to-Power Journal today. Singapore's power stations mainly use imported natural gas, as "the city-state has no domestic oil and gas resources and limited opportunities for renewable energy generation in comparison to other countries," he said.

Enel, Italy's largest utility by market share, said today it will profit from the new Italian rate system for electricity distribution and metering services. "The new regulatory framework will generate a slight increase in 2012 rate revenues compared with 2011 levels," Enel said referring to preliminary earnings estimates.

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News in Brief

Siemens to service Kalamkas gas turbines

June 4 – JSC Mangistaumunaigaz, one of Kazakhstan’s largest oil and gas producers, has contracted Siemens to service two STG-800 gas turbines at a power plant, designed to meet the entire energy needs of the nearby Kalamkas oil and gas field. The nine-year contract covers turbine maintenance and eventual upgrades as well as remote monitoring of operations.

NamPower to invest $575m on grid expansion

June 3 – Namibia’s state-owned utility NamPower is planning to spend $575 million over the next three years in upgrading and extending its power transmission infrastructure. Namibia imports 60% of its total electrical energy requirement, primarily through bilateral contracts from South Africa’s Eskom and to a lesser extent, the Southern Africa Power Pool (SAPP).

UK TSOs call for £900m green gas investment

June 2 – Britain’s five gas network companies – Cadent, National Grid, NGN, SGN and Wales & West Utilities – have urged the Government to unlock over £900 million (€1bn) for new green gas infrastructure. Research by the Energy Networks Association (ENA) shows that if investment into zero-carbon hydrogen infrastructure started today, the UK could save energy bill payers £89 billion (€99.2bn) by 2044 – five years prior to its 2050 net-zero targets.

Exxon, INNIO about to launch gas engine oil

June 1 – ExxonMobil and INNIO have announced the imminent launch of their first co-engineered and co-branded natural gas engine oil. The U.S. oil major and the Austrian engine maker have just extended their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines.

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.

MAN expands Omincare concept

March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.