Business

Goldman Sachs to invest $40bn in clean energy

Wed, 30 May 2012 12:45:00 GMT

Goldman Sachs (NYSE: GS) plans to invest $40 billion in solar, wind, hydro, and biofuels and other clean energy sources over the next decade.

The bank’s executives believe that demand for alternative energy sources will grow with global energy demand, and as big manufacturing countries, such as the BRIC nations, set more aggressive targets for reducing emissions, reports Reuters.

Goldman has also pledged to reduce its own net carbon emissions to zero by 2020.

For more power business news


		Share

Board appointed for UK Green Investment Bank

Fri, 25 May 2012 15:57:00 GMT

The board of directors has been appointed to the UK’s Green Investment Bank, a government-backed institution to fund renewable energy projects.

The bank was one of the first ‘green’ energy pledges made by the UK’s coalition government when it came to power in May 2010 and it will have a start-up budget from government of �3bn.

Lord Smith of Kelvin, currently chairman of utility SSE, will be the bank’s chairman, with Sir Adrian Montague his deputy. Montague has been chairing the Green Investment Bank Advisory Group.

UK business secretary Vince Cable said the bank was “a major new innovation vital to securing investment in what is one of the great challenges of our age, the decarbonisation of our energy supply. It has found two candidates of outstanding calibre well suited to leading the bank through its important early phase."

The newly formed board will begin the recruitment of the company’s other directors and senior executive team shortly, with a view to having the bank – which will be headquartered in Edinburgh, Scotland – fully operational by the end of the year.

Gamesa ousts chief executive

Fri, 25 May 2012 09:45:00 GMT

Spanish wind turbine manufacturer Gamesa has ousted chief executive Jorge Calvet after the company’s market value fell 89 per cent while he was in charge.

He will be replaced by Ignacio Martin, the former boss of Spanish car maker Cie Automotive.

Reports suggest that a campaign to get rid of Calvet was driven by Spanish renewable energy giant Iberdrola, which owns 19.6 per cent of Gamesa and has two seats on its board, which unanimously voted to fire Calvet.

Calvet, who has an investment banking background, became chief executive in 2009, just as a glut in turbine manufacturing started to hit the established players in the market, most notably Danish company, Vestas, which suffered massive losses, issued two profit warning and subsequently replaced key board members.

In March this year Gamesa reported its first quarterly loss for 10 years and in the last 12 months its shares have plunged 75 per cent. After news of Calvet’s departure broke, Gamesa’s stock price rose 2.9 per cent in Madrid yesterday.

Martin said in a statement: “I am taking over at a company that successfully managed a buoyant economic period. Now that the expansion stage is behind us, it is time to focus and place more emphasis on competitiveness and profitability. We have the tools we need to come out of this process a stronger company: know-how, technological skill and an excellent team.”

UK again cuts solar feed-in-tariffs

Fri, 25 May 2012 09:39:00 GMT

The UK government yesterday unveiled an overhaul of its solar feed-in-tariffs.

From 1 August, the tariff for a small domestic solar installation will be 16p per kilowatt hour, down from 21p, and will be set to decrease on a 3 month basis thereafter, with pauses if the market slows down.

All tariffs will continue to be index-linked in line with the Retail Price Index and the export tariff will be increased from 3.2p to 4.5p. The government claims that the new tariffs should give a return on investment of over 6 per cent for most installations.

Tariffs have already been cut once this year: in April they were slashed from 43p to the existing 21p. The government tried to implement this reduction last December but was taken to court by solar companies who objected because a consultation period on the cuts was still ongoing. The government lost the case.

Energy and Climate Change Minister Greg Barker said yesterday that he wanted to send “a very clear message that UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies”. He added: “Having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence.”

Alan Aldridge, chairman of the Solar Trade Association said: “Despite the currently slow market, the industry can have some confidence that the new tariffs are tight but workable. Householders should be reassured the new tariffs will provide more attractive returns than can be found elsewhere today. The STA is now keen to work with government to get this positive message out.”

Controversial US NRC chairman stands down

Mon, 21 May 2012 15:54:00 GMT

Chairman of the Nulcear Regulatory Commission in the US, Gregory B. Jaczko, has announced his resignation, after a stormy three year tenure.

The New York Times reports that Jaczko’s time had been marked by bitter battles with colleagues and with Congress, after he helped to kill a proposal for a nuclear repository and worked to address longstanding safety problems.

For more power personnel news


		Share

Japanese consortium wins thermal power contract

Mon, 21 May 2012 13:42:00 GMT

Two power generating units, set to deliver 800 MW each are to be developed by a Japanese consortium after the group won the contract in Taiwan.

The consortium, consisting of Toshiba, IHI, CTCI and Sumitomo, is to build the facility at the existing Talin Thermal Power Plant located in Kaohsiung District in southern Taiwan.

Commercial operations are anticipated to begin in 2016 for Unit 1 and 2017 for Unit 2.

For more power business news

Merkel dismisses environment minister

Thu, 17 May 2012 10:13:00 GMT

German Chancellor Angela Merkel has dismissed her Environmental Minister, Norbert R�ttgen.

AFP reports that in an unusual, hastily arranged statement on national television, Merkel said she had spoken to President Joachim Gauck “to ask him to release Norbert Roettgen from his functions as environment minister to allow a change in personnel”.

She added that Germany’s “Energiewende” policy, the term used to describe both the end of nuclear power and the promotion of renewable energy sources, was a key plan for this legislative period, but that work remained to be done.

Roettgen was criticized for failure to form a consensus amongst coalition parties to enable changes on the renewable energy act pass through the Upper House last week.

More crucially R�ttgen led the conservative party in the election last Sunday in North Rhine-Westphalia and thus was made responsible for the big losses the party suffered there.

For more power market intelligence news


		Share

Eon sells European gas grid to Australian bank

Thu, 17 May 2012 08:39:00 GMT

E.ON (FWB: EOAN) has announced the sale of its Open Grid Europe gas distribution network in a deal worth €3.2bn ($4.06bn).

The sale has been made to a consortium of infrastructure investors, led by Macquarie, the Australian bank.

The move brings Eon to within €3bn of its goal of generating €15bn from the sale of assets by the end of 2013, reports the FT.

The company has earmarked the proceeds for reducing debt and investing in renewable energy plants.

For more power business news


		Share

Positive trading update for Drax

Wed, 16 May 2012 14:52:00 GMT

Coal power generators, Drax are reaping the benefits of lower costs in producing power, while sales are on the rise.

In its trading update, the Yorkshire, England-based company announced that wholesale prices it was paying for coal were falling while it was selling energy at higher rates.

Drax said it had delivered a good operating performance while it was on track to hit forecasts for the full year, reports City AM.

Yorkshire-based Drax said its order book was also strong with the group’s sales for 2012 hitting 25.3 terawatts (TWh) and 14 TWh and 3.7 TWh for 2013 and 2014.

Drax said it was moving towards greener technology to create power, in line with the government’s push towards renewable and biomass energy.

The company said in a statement: “Drax is ready to transform itself into a predominantly biomass fuelled generator, but to do so we need an appropriate level of regulatory support, and to that end we look forward to the timely conclusion of the Government’s current review.”

Drax has six generators creating 4000 MW of energy, making it the largest coal fired power station in the UK.

For more coal fired power news


		Share

Partnership begins Russian $159m hydro facility

Wed, 16 May 2012 10:38:00 GMT

RusHydro MICEX-RTS: HYDR in partnership with Alstom has started the construction of a $159m hydro power equipment manufacturing plant in the Russian Republic of Bashkortostan.

Energy Business Review reports that the two firms have set up a 51/49 joint venture (JV), JSC AlstomRusHydroEnergy.

A total of $14m will be used for construction works, purchase of equipment, recruitment and training of personnel.

The plant will manufacture main power generation equipment for small (up to 25MW), mid-sized hydro power plants (up to 100MW) and pump storage plants (up to 150MW), as well as auxiliary equipment.

For more power business news

UK electricity reform will cause energy ‘train wreck’

Wed, 16 May 2012 09:05:00 GMT

The UK government’s Electricity Market Reform will lead to a “train wreck” in the country’s power sector, according to six of the country’s leading renewable energy firms.

The companies say the EMR is “unworkable” and claim that instead of stimulating investment as intended, it will deter financial backing for low carbon technologies.

The EMR is the cornerstone of the coalition government’s plans to boost growth in low carbon energy and involves setting a carbon price floor and replacing existing subsidies with long term contracts.

But the six companies – SSE, Ecotricity, Fred.Olsen Renewables, RES, Natural Power and Good Energy – say the reforms are “extremely complicated, introducing new risks and uncertainty, as well as diverging from other well understood European support mechanisms”.

In a letter to UK Energy Secretary Ed Davey, they welcome the need to move to a secure and decarbonised electricity system”, but state that the contracts for difference that will replace existing subsidies are flawed and as such, will deter investment in renewable generation and “threaten the build up of supply chains and jobs in the UK”.

For more power policy and regulation news

Wartsila signs gas power agreement in South Africa

Mon, 14 May 2012 10:14:00 GMT

W�rtsil� has signed three year Operations & Maintenance (O&M) agreement with Sasol New Energy Holdings, a wholly owned subsidiary of Sasol, the integrated global energy and chemical company.

The agreement covers the company's gas engine power plant project in Sasolburg, South Africa.

The Sasol New Energy plant is expected to start producing electricity towards the end of 2012. It will be the largest power plant running exclusively on gas engines to be installed on the African continent, and because of its low emissions, will be a major advance in developing Sasol's electricity business.

"The gas engine power plant employs a cleaner fossil fuel based technology than traditional coal based technology and will reduce the CO₂ emissions by approximately 1 million tons per annum. In addition, it also generates electricity at a higher efficiency," says Kribs Govender, General Manager, Low Carbon Electricity, Sasol New Energy.

For more oil and gas power news

Botswana to tender for coal power plants

Fri, 11 May 2012 09:57:00 GMT

African nation, Botswana, is to issue a tender for two 300 MW coal fired plants to be built, construction beginning this year.

One of the projects will be an expansion at the existing Morupule complex where Botswana's power utility BPC operates a coal-fired plant.

The independent power producers will be chosen to build and operate the plants and later sell the electricity to BPC.

For more coal fired power news

E.ON records positive first quarter

Wed, 09 May 2012 16:07:00 GMT

German utility E.ON (FWB: EOAN) has turned around its heavy losses of a year ago by posting a positive first quarter performance to 2012.

The Dusseldorf-based company increased its EBITDA by 9 per cent year on year to around €3.8bn ($4.9)and its underlying net income by 27 per cent to around €1.7bn.

“As we described in March, we’re now past the worst,” said chief financial officer Marcus Schenck. “Our first-quarter results confirmed this trend. We’re making good progress. But we still need to be resolute about meeting our current challenges and implementing the changes we’ve initiated.”

E.ON’s sales rose by 28 per cent year on year to €35.7bn, owing in particular to higher sales in the Optimization & Trading segment. The renewables, German, and Russian segments also posted higher sales. Sales were significantly lower in the generation segment due to the absence of output from nuclear power stations in Germany that were shut down in 2011 after the Merkel government decision to withdraw from nuclear power.

For more power business news

Positive signs for investment in clean energy

Tue, 08 May 2012 09:12:00 GMT

A new survey has found that the number of private capital investors planning to invest in Europe’s clean energy sector is set to treble.

More than 40 per cent of private capital investors will allocate over 10 per cent of their available funds to clean energy over the next 18 months according to law firm Taylor Wessing’s survey, with 80 per cent in total planning to invest in the sector.

Venture capital investment in European clean energy companies slumped to $82m last quarter, compared with $210m in the same period in 2011. The problem is acute among early stage ventures, where venture capital investment fell to its lowest quarterly level in two years, according to the survey.

“At the moment bank lending is almost non-existent and venture capital and private equity funds are either reluctant or unable to invest in early stage technologies within the clean energy sector,” said Jerry Biggs, chief executive at Narec Capital, a clean energy consultancy. “This is providing an opportunity for private investors to take up the slack and lock in early stage value.”

For more power market intelligence news

Alstom predicts three years of growth after order rise

Fri, 04 May 2012 16:29:00 GMT

Alstom (Euronext: ALO) are forecasting a gradual improvement in its operating margin and more than 5 per cent annual sales growth over the next three years as orders are expected to remain "sound".

Reuters reports that Alstom posted a 58 per cent rise in full-year net income to 732 million euros ($962.77 million), while orders rose 14 percent to $28bn.

"Developing countries continue to offer opportunities in all sectors, whilst mature markets, although still globally slow, should show positive signs in some segments, such as offshore wind and high-tech transmission businesses," Alstom said in a statement.

For more power business news

Chinese government poised to take stake in UK nuclear

Fri, 04 May 2012 09:45:00 GMT

Two Beijing-backed energy groups are in talks to buy the Horizon consortium in the UK, and in effect, take a significant stake in the country’s nuclear power generation programme.

Eon and RWE (FWB: RWE) put their joint venture, which plans to build two reactors in Britain, up for sale in March, prompting widespread fears about Britain’s energy strategy. Nomura was appointed last week to find a buyer.

Chinese state-owned power companies are among the interested parties in the Horizon sites at Wylfa in north Wales and Oldbury-on-Severn in Gloucestershire, according to the Financial Times.

German utilities, Eon and RWE pulled out of the project in March, leaving Britain’s entire energy strategy in limbo.

Horizon had hoped to get its first new nuclear station operational by 2020, a timetable that may now slip. The joint venture could generate up to 6,600 MW of power.

FT reports that the government and Horizon have been talking to two fledgling consortia although “the parts are still coming together”.

One potential bidder is GDF, which is considering a joint bid with its Nugen partner, Iberdrola, while the other potential consortium involves Japan’s Westinghouse, owned by Toshiba, with a western utility, a Chinese group – either China Guangdong Nuclear Power or China’s State Nuclear Power Technology Corporation – and potentially a sovereign wealth fund.

For more nuclear power news

EDF boosts UK wind energy drive with Isle of Wight project

Wed, 02 May 2012 10:06:00 GMT

EDF (Euronext: EDF) has teamed up with Dutch power firm Eneco to develop a giant U.K. offshore wind farm off the Isle of Wight.

The 50:50 joint venture is for the purpose of developing the Navitus Bay Offshore Wind Project, which will have a generating capacity ranging from 900 to 1200 MW.

The Navitus project was awarded to Eneco in 2010 by The Crown Estate, which manages the U.K.'s seabed, and it forms part of the Round 3 series of offshore contracts which aim to add up to 25000 MW of electricity to the grid by 2020, reports Industrial Info.

The contracts are valued at around €122bn ($162bn).

The proposed development will located on a sea area of 76 square miles and has the potential to generate enough electricity for between 615,000 and 820,000 homes. It will also offset approximately 1.2 million tonnes of CO2 annually.

"The arrival of one of Europe's biggest utility companies (EDF) into the Round 3 programme provides another boost for the offshore wind industry, bringing new expertise and skills into the U.K. market to help drive forward the world's largest offshore wind programme," explained Huub den Rooijen, Head of Offshore Wind, The Crown Estate.

For more renewable power news

UK appoints CCS task force chief

Wed, 02 May 2012 08:46:00 GMT

The UK has set up a Carbon Capture and Storage Cost Reduction Task Force to ensure that CCS takes off in Britain and is competitive with other low carbon technologies.

The task force will advise the government on the steps needed to reduce the cost of CCS for what is hoped to be a new wave of projects, producing these recommendations in a report due to be published early next year.

Today, UK Energy Minister Charles Hendry announced that Dr Jeff Chapman has been appointed as chairman of the task force.

Chapman is chief executive of the Carbon Capture and Storage Association, a body which represents the UK’s CCS industry.

He said: “CCS will be an essential and cost-effective technology solution in the mitigation of climate change. Similar to other low-carbon technologies, CCS will incur additional costs in the early years of deployment, but with good planning and optimisation it will be possible to drive down costs in a short timeframe. The sooner we set about this task the sooner we will get on track for cost-efficient decarbonisation of power and industry.”

CCS in the UK has had mixed fortunes in the last year: a demonstation plant opened at Ferrybridge in England but an intended flagship project at Longannet in Scotland was scrapped because the government could not agree on final plans with power companies.

For more power personnel news

Power Engineering International launches LinkedIn Group

Tue, 01 May 2012 15:27:00 GMT

Power Engineering International (PEI) is pleased to announce the launch of our online Power Engineering International LinkedIn Group.

PEI LinkedIn promised to be the most dynamic area for industry news and discussion on the World Wide Web.

We welcome participation from everyone involved and interested in the various sectors that come under the heading of power engineering. The group offers the opportunity to meet with other industry peers, and interact through discussion, debate, news sharing and knowledge exchange.

We would also remind you of our other social media, Twitter and Facebook, and look forward to enjoying your input and enthusiasm on our latest venture.

Click PEI LinkedIn and sign up today.