Regulation & Policy

Wisconsin’s state utility regulators will decide on whether the proposed 550-MW Nemadji Trail Energy Center will be built. The developers have filed plans to co-develop the $700 million facility, and now await an official permit.

The European Investment Bank (EIB) has embarked on a review of its lending criteria for energy infrastructure projects, notably a 550g CO2/kWh emissions performance standard. EU negotiators had adopted this limit just weeks earlier for a ban on capacity payments to power plants exceeding it.

Idled power plants in India that are stranded due to a lack in gas supply might soon get regasified LNG at a subsidized rate, financed the government-run Power System Development Fund. The aim is to revive flexible gas power plants through an e-bid RLNG scheme.

Smart electrically-driven heating is a “valuable field in which to invest”, Delta-ee research finds, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. In the UK, new business models are emerging providing heat-as-a-service, with the customer avoiding the need for buying fuel and appliances by simply buying the heat, and comfort that comes with it.

Flexibility and system integration of renewable energy sources will be in focus of a Ministerial Summit co-hosted by the German government and the International Energy Agency (IEA) in Berlin in September. Tackling the intermittency challenge will be critical for 33 countries are likely to have up to 20% variable renewables in their power systems by 2023.

The Chinese government is watering down its pledges to reign in climate change and focuses on stepping up energy imports instead. Over the past year, China’s has demand surged 15% and a big part of these additional needs will soon be met through the Russian ‘Power of Siberia’ pipeline project as well as more LNG.

U.S. Environmental Protection Agency (EPA) is about to initiate more rollback regulations in favour of coal in the power sectors. The proposals included loosening the New Source Performance Standards which mandate how much CO2 new power plants can emit. However, these rollbacks are unlikely to stop the demise of the U.S. coal industry as natural gas is outcompeting coal on cost.

Adamant to end coal-burn in Israel’s power sector, the energy minister Yuval Steinitz foresees natural gas to make up 83% of the country’s energy mix by 2030, and renewables account for the remainder. If implemented, Israel’s new energy policy would herald a quantum shift in the county’s resource use given that the transport sector is also meant to run entirely on gas.

Distributed energy sources will be tested as a way to restart of electricity supplies under a £11.7 million project, partly funded by the UK energy regulator Ofgem. The project will see National Grid, SP Energy Networks and TNEI explore how distributed gensets can be put to use to get the grid up and running again, should a ‘Black Start’ event occur.

German authorities want to test the country’s resilience to a severe natural gas shortage with a large-scale emergency drill held over two days, the energy regulator BNetzA and Federal Ministry for Economic Affairs & Energy (BMWi) announced. “Germany’s gas supply is very secure and reliable,” said BNetzA head Jochen Homann. “However, it is prudent to be also prepared for unlikely emergencies.”

The German Chancellor Angela Merkel has extended the deadline for a much-awaited report from the country’s coal exit commissions. Elections in three coal states in eastern Germany in 2019, as well as lobbying from utilities prompted her to effectively axe the opportunity of having a report on pre-2020 action ready before the COP24 climate meeting in Poland in early December.

Leaked drafts of a report of Germany’s coal commission show the country’s coal exist will likely be delayed to 2022, rather than starting in 2020. The pathway of the coal exit is now in focus, rather than the exit date. Forced plant closure should be avoided, the commission said, stressing shut-downs need to agreed with operators who will claim compensation.

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News in Brief

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.

MIVOLT launches cooling fluid

May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.

Germany adds 1,300 km to power grid

May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.

 

 

 

Oman nationalizes first IPP

May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.