World Regions

Engineers slam UK government for ‘scant and ill-designed’ energy storage policies

Thu, 31 May 2012 14:10:00 GMT

The UK government has been accused of failing to provide sufficient support for electricity storage technologies by the Institution of Mechanical Engineers.

The institution’s head of energy, Tom Fox, said the need for energy storage was urgent “as the UK ramps up its dependence on power generation from intermittent renewable energy sources like wind”.

He added: “For too long we’ve been reliant on using expensive ‘back-up’ fossil-fuel plants to cope with the inherent intermittency of many renewables. Electricity storage is potentially cleaner and once fully developed is likely to be much cheaper.”

But he said government incentives and policies to support the development and deployment of electricity storage technologies are “scant and ill-designed” and claimed that the potential value of storage to the UK power network is “not well understood by Westminster”.

The UK currently has 2800 MW of electricity storage capacity in the form of pumped hydro-electric storage. According to the country’s transmission operator National Grid, it will need 8000 MW of electricity storage capacity by 2025 if the penetration of wind power in the network is 30 per cent.

In a policy statement issued today, the institution calls on the government to adopt three recommendations:

• Carry out a detailed analysis to estimate the realistic requirements for electricity storage across the whole UK power system and its corresponding value to the nation;

• Develop policy frameworks that reward the value of electricity storage in the UK’s power markets;

• Encourage and support UK development of storage technologies for exploitation in world markets by advancing the commercial-scale demonstration of electricity storage technologies in the UK, thereby creating technical value that UK companies can export overseas.

US Army on renewables spree

Thu, 31 May 2012 13:51:00 GMT

The US military is becoming a major player in the biofuel and renewable energy markets.

The US Army spends more than $1 billion a year power its facilities and already utilises solar power. However it is planning a rollout of initiatives that cover all forms of renewable energy.

Richard Kidd, the US Army’s deputy assistant secretary for energy, said: “We are specifically looking at wind, solar, geothermal for electric power and biomass.”

He explained the army currently has 165 operational renewable energy projects, which are almost all under 1 MW. However its ambitions are on a much bigger scale, including a 500 MW, $2bn solar farm in the Mojave Desert.

He said the army was attractive to investors because it “can offer a very long term power purchase agreement, up to 30 years, so we can provide a reliable and secure income stream, so we get the lifecycle cost and advantages of renewable energy.”

He added that “we have a number of sites that we have identified which could generate hundreds of megawatts of power”.

Kidd also told Platts Energy week that in Afghanistan the army was removing generators and bringing in solar panels and batteries. “We run the load off the battery pack and use the solar panels to charge the batteries.” He said this was resulting in fuel reduction of up to 70 per cent.

In 2011 the Department of Defense bought 450 000 gallons of biofuels for fighter jets and other aircraft and it plans to become an even bigger buyer in the years to come.

Moventas in $99m turbine gear deal with Areva

Thu, 31 May 2012 13:45:00 GMT

Finnish gear manufacturer Moventas has signed a $99m deal to supply German renewable energy company Areva Wind.

The contract covers 5 MW gear unit deliveries for the coming years following successful deals completed this month for two offshore wind gears.

“We are very pleased to find that AREVA Wind trusts our leading expertise and over 30-year history in creating technically superior gear solutions for medium-speed and multi-megawatt class drive trains”, comments Senior Vice President of Wind Gears with Moventas, Arto Lahtela.

Conductix-Wampfler UK wins Argentina deal

Thu, 31 May 2012 13:32:00 GMT

Mobile energy firm Conductix-Wampfler UK is to export to South America for the first time after striking a deal to supply a metro system in Argentina.

The firm makes energy and data transmission systems for mobile machinery and is part of the global Conductix-Wampfler Group, owned by Delachaux Group.

The contract is with Subterraneos de Buenos Aires for products to be installed at the Villa Urquiza depot on Line B of the Buenos Aires Metro.

“This is a particularly important contract win for Conductix-Wampfler UK because it will see us working in South America for the very first time,” said Conductix-Wampfler UK managing director Alan Jones.

Europe delivers final warning to Poland on electricity rules

Thu, 31 May 2012 11:05:00 GMT

Poland has been warned by the European Commission to integrate the EU's third electricity market opening directive into national law within two months or face court action.

"To date Poland has not informed the commission of all the necessary transposition measures for fully transposing the electricity directive," the EC said.

All 27 EU countries had to transpose the EU's third electricity and gas market opening directives into national law by March 3, 2011, but 13 have failed to do so, and face being referred to the European Court of Justice.

The EC said it is still analysing the measures notified by other EU countries that have only partially transposed the directives, but did not provide further details, reports Platts.

The EU's third gas and electricity market opening directives are intended to overcome the remaining barriers to achieving a single EU energy market.

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Chinese anger rises as US imposes wind duties

Thu, 31 May 2012 10:21:00 GMT

China’s anger at the US decision to impose tariffs on its solar industry has been further compounded this week by the American decision to impose duties as high as 26 per cent on Chinese wind tower manufacturers.

The duties are aimed at the tall steel towers used to harvest power from the wind, and has been welcomed by US producers who say cheap Chinese and Vietnamese imports are driving them out of business.

The US Commerce Department claims the decision was made to counteract Chinese manifacturers benefiting from subsidies from the Chinese government.

It is claimed that Chinese government subsidies range from 13.74 per cent to 26 per cent of the cost of the towers, according to Reuters.

China criticized the move, urging Washington to adopt a more consultative approach to resolving trade rows.

Beijing has also gone further by issuing a complaint at the World Trade Organization against how the United States calculates anti-dumping and countervailing duties on Chinese goods

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ABB wins Arabian substation deal

Wed, 30 May 2012 16:00:00 GMT

Ewaan Global Residential Company has signed a $16.7m contract with ABB (NYSE: ABB) for the construction of a 110/13.8 kv substation in the Kingdom of Saudi Arabia.

Ewaan Global Residential said the move is aimed at generating power for its Alfareeda residential project being developed in the north of Jeddah.

The Alfareeda project consists of more than 2,000 residential units located on 1 million sq m of land.

The project will be fully equipped with an advanced infrastructure and service facilities including a state of the art telecommunications network, electricity lines, water supply, sewage system and rain bypass tanks.

'Given the Kingdom’s high temperatures for most of the year, reliability of power supply is of the utmost importance and we will draw on ABB’s long experience and in-depth expertise in the Saudi market to ensure maximum efficiency in delivery and performance,' stated Fahad Al Mutawae, CEO of Ewaan Global Residential Company.

ABB are set to exhibit at POWER-GEN Europe in Cologne, Germany from the 12^th to the 14^th of June.

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China deepens interest in Brazil’s power market

Wed, 30 May 2012 12:01:00 GMT

State Grid Corp of China is again focusing on Brazil’s electricity transmission line business, as it seeks to buy the Brazilian electricity transmission assets of Spain’s Actividades de Construcci�n y Servicios for $531m plus debt of $411m.

The latest deal is State Grid’s second acquisition in Brazil, according to FT, where it previously bought seven electricity transmission lines for $1bn in 2010.

State Grid has also been reported to be interested in buying a 39 per cent stake held in another Brazilian power holding company, Neoenergia, that is held by Spain’s Iberdrola.

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Greenhouse gas emissions increased in 2010

Wed, 30 May 2012 09:28:00 GMT

Greenhouse gas emissions increased in 2010 as a result of both economic recovery in many countries after the 2009 recession and a colder winter, according to figures released today by the European Environment Agency (EEA).

Greenhouse gas emissions of the European Union’s 27 member states increased by 2.4 per cent – or 111 million tonnes CO₂ equivalent – between 2009 and 2010.

This can be partially explained by the fact that there was a sharp 7.3 per cent �decrease of emissions between 2008 and 2009.

The EEA says the EU remains fully on track to meet its Kyoto target. The long-term reduction trend continued, since EU-27 greenhouse gas emissions still remained 15.4 per cent below 1990 levels in 2010. Emissions in the 15 Member States with a common commitment under the Kyoto Protocol (EU-15) in 2010 were 11 per cent below the Kyoto Protocol base year. These consolidated figures confirm earlier estimates for the EU, published by the EEA in October 2011.

EEA Executive director Jacqueline McGlade said that “this rebound effect was expected as most of Europe came out of recession.”

“However, the increase could have been even higher without the fast expansion of renewable energy generation in the EU.”

As in previous years, the growth in the use of renewable energy sources continued in 2010 with a 12.7 per cent increase of total consumption of energy from renewable sources. In addition, gas prices fell markedly in 2010 and EU total consumption of gas used for energy purposes went up by 7.4 per cent. The higher share of gas led to an improved carbon intensity of fossil fuel consumption in many Member States.

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IAEA’s El-Shanawany joins Lloyd’s Register as nuclear chief

Tue, 29 May 2012 16:35:00 GMT

Lloyd’s Register has appointed the atomic safety expert Professor Mamdouh El-Shanawany as its business leader for new nuclear.

El-Shanawany will help to lead the organisation’s technical support programme for countries looking to expand their nuclear programmes and those who want to develop civil nuclear energy for the first time.

He joins Lloyd’s Register from the International Atomic Energy Agency (IAEA), where he most recently was the agency’s head of safety assessment for the Division of Nuclear Installations Safety. In that global role, he was responsible for strengthening the ability of IAEA member states’ to assess the safety of their nuclear installations. The team were awarded the Nobel Prize for Peace in 2005.

“Our industry is growing more complex,” said Prof El-Shanawany. “Demand for safe and sustainable energy supply and the introduction of new nuclear reactor designs and plant technology is driving change. Owners, operators, builders and regulatory authorities require independent assurance and verification during the design development and construction phases – as well as in-service.”

Prior to joining the IAEA, El-Shanawany worked for the UK’s Nuclear Installations Inspectorate, where he was responsible for managing, assessing and approving the licensees’ arrangements and safety cases for operating plants.

European Smart Grid forum appoints UK chairman

Tue, 29 May 2012 16:25:00 GMT

A European forum on Smart Grids is to be led by a UK industry leader following the appointment of Energy Networks Association chief executive David Smith as its chairman.

GEODE is a European Group of independent energy distribution and distribution-related companies, as well as other organisations in the gas and electricity sectors.

It was set up to aid the EU development in Smart Grid thinking by sharing expertise and feeding this back to the EU Commission.

Smith said: “I’m delighted to have been asked to chair this group. A Smart Grid is a vital part of our energy future in the UK, and, as an interconnected Europe.”

Ignoring environmental fears will stall shale boom says IEA

Tue, 29 May 2012 15:57:00 GMT

The shale gas boom could be “halted in its tracks” unless the energy industry wins public trust on the environmental and social issues surrounding it, the International Energy Agency warned today.

Speaking in London today, IEA executive director Maria van der Hoeven said: “The technology and the know-how already exist for unconventional gas to be produced in an environmentally acceptable way.

“But if the social and environmental impacts are not addressed properly, there is a very real possibility that public opposition to drilling for shale gas and other types of unconventional gas will halt the unconventional gas revolution in its tracks. The industry must win public confidence by demonstrating exemplary performance; governments must ensure that appropriate policies and regulatory regimes are in place.”

The IEA today issued what it dubbed the ‘Golden Rules’ to bring about a ‘golden age’ for unconventional gas. These are: full transparency; measuring and monitoring of environmental impacts and engagement with local communities; careful choice of drilling sites and measures to prevent any leaks from wells into nearby aquifers; rigorous assessment and monitoring of water requirements and of waste water; measures to target zero venting and minimal flaring of gas; and improved project planning and regulatory control.

IEA Chief Economist Fatih Birol said: “If this new industry is to prosper, it needs to earn and maintain its social license to operate. This comes with a financial cost, but in our estimation the additional costs are likely to be limited.”

He said applying the ‘golden rules’ could increase the cost of a typical shale gas well by around 7 per cent, but, for a larger development project with multiple wells, investment in measures to reduce environmental impacts may in many cases be offset by lower operating costs.

Shale gas has transformed the energy industry in the US and many countries around the world are keen to jump on the bandwagon. In Europe, Poland is the biggest pro-shale nation – unsurprising given the country holds the largest European reserves.

However, concern over ‘fracking’, the process by which the gas is extracted, have resulted in bans on exploration in several countries, including France, Germany and Bulgaria.

EDF and Centrica deliver blows to UK nuclear

Tue, 29 May 2012 10:39:00 GMT

French nuclear company EDF has put on hold plans for a new power station in the UK, plunging Britain’s atomic agenda into fresh doubt.

EDF was due to take a decision on the civil engineering contract for Hinkley Point in England in the past week, but it was revealed at the weekend that it has deferred the decision until next year at the earliest.

It is now believed that the earliest that the new reactor will be built will be in 2021, which is four years later than the UK government had hoped.

The news comes as Centrica – owner of British Gas and EDF’s partner in the consortium to build Hinkley Point – also said this week that it was concerned that the government’s plans for paying for nuclear power may breach European Union rules on state aid.

Under its Electricity Market Reform, the government intends to offer contracts for difference (CfDs) to generators of low carbon energy – basically a guaranteed fixed price.

However precise details of these payments are not due until next year and in the interim, power producers are being offered ‘letters of comfort’ to act as a stop-gap until the CfDs kick in.

But Centrica is wary that this arrangement may EU breach state aid regulations and has said it cannot make any firm commitment until it knows what it might be paid and when.

Earlier this month UK Energy Minister Charles Hendry conceded that the CfD’s could fall foul of European state aid rules.

He told the UK’s Energy and Climate Change Committee that the mechanism which the industry wanted was undeliverable under EU rules.

“We have put forward a package which we believe most complies with EU requirements, while industry has other thoughts, and we will try to find a balance that gives certainty and comfort to investors,” he said.

But committee chairman Tim Yeo said: “There will be serious alarm politically if it appears that some interpretation of EU state aid rules prevents Britain from having the best market structure.”

The news this week from EDF and Centrica could not come at a worse time for the government. In March, German companies RWE and E.ON pulled out of the Horizon nuclear project to build new reactors in the UK, citing financial constraints in their native country, constraints caused by hefty early decommissioning costs brought about by the Merkel government’s decision to withdraw from nuclear power following the Fukushima disaster. With Francois Hollande taking the presidency in France – following strong anti-nuclear sentiment from him during his election campaign – there is concern that any drive to shut French reactors early will hit the pockets of EDF and in turn scupper the company’s spending plans in Britain.

Since the RWE/E.ON decision, Hendry and his boss, Energy Secretary Ed Davey, have tried to calm fears that the wheels are coming off the UK nuclear new build programme by stressing that the EDF-Centrica consortium is on-board and set to deliver on time.

RWE and E.ON are looking for new buyers to step in to the Horizon project, with interest said to be coming from Russia and China.

Saudi to tender for first renewable projects

Tue, 29 May 2012 09:52:00 GMT

Saudi Arabia is about to embark on its first round of tenders for renewable energy projects, which will involve a potential 2850 MW of capacity.

Around 1100 MW will involve photovoltaic solar, 900 MW concentrated solar, 650 MW wind and 200 MW from other sources such as geothermal and waste-to-energy.

The King Abdullah City for Atomic and Renewable Energy (KA-Care) will issue draft proposals for the programme in June and invite bids.

A second round of procurement will be carried out next year and in 2014.

All of the projects will be developed as independent power projects with 20-year power purchase agreements.

In preparation for the renewable projects, Saudi’s National Grid Company is to start work soon on reinforcing the power distribution network.

The kingdom is facing an electricity consumption crisis, consuming six times the global average, prompting the government to set a target of developing 54.1 GW of renewable power by 2030, including 41 GW from solar power.

Vestas signs Chile wind deal with global methanol leader

Tue, 29 May 2012 09:15:00 GMT

Danish company Vestas has signed a deal to develop wind farms at the factories of Methanex, the world’s largest supplier of methanol.

Methanex is based in Chile and used Vestas turbines two years ago when it redeveloped its Cabo Negro wind power plant in Magallanes. Methanex wanted to move away from natural gas consumption to utilise wind, which is abundant in Chile.

Now the company has signed a deal which will see Vestas develop wind projects at its production facilities worldwide.

Methanex general manager Paul Schiodz said: “The success of our wind farm in Magallanes demonstrates the role that wind can play in the regional energy matrix. The agreement with Vestas should contribute to establish a robust regulatory framework to incentivise wind energy in the region.”

Morten Albaek of Vestas added: “Producing methanol is an energy intensive process. With the Cabo Negro wind project, Methanex has shown its creativity in finding a business model that reduces its consumption of natural gas.”

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.

ABB clinches $50m order for Brazil substations

Fri, 25 May 2012 11:26:00 GMT

Swiss power group ABB has won orders worth more than $50m to build transmission substations in Brazil.

The deals are for a total of six substations owned by Eletrobras Eletronorte and Costa Oeste Transmissora De Energia and all of the work is scheduled to be completed by next year.

Oleg Aleinikov, head of ABB’s substations business, said: “These new substations and extensions will increase capacity and strengthen the country’s transmission and distribution infrastructure to help meet growing electricity demand from residential, industrial and commercial consumers.”

Brazil’s population is expected to increase by about 10 per cent to 220 million by 2020, driving electricity capacity demand to an anticipated 144 GW by the same year, a 35 per cent rise from current levels.

Earlier this month ABB won a $33m order from India’s largest power company, NTPC, to build two substations in the state of Maharashtra.

The company has also won an order worth $44m to deliver three gearless mill drive systems for a new copper mine to in southeastern Kazakhstan.

Tests completed on 330 MW cogen unit in China

Fri, 25 May 2012 10:53:00 GMT

Ningxia Electric Power Construction Corp has completed tests on the first combined heat and power unit at a cogeneration project in Ningdong, China.

The 330 MW unit is one of two at the plant which is operated by Ningxia Guodian Younglight Energy and Chemical Industry Group.

The project will supply electricity, steam, heat and secondary desalination to an industrial park and will replace 12 small coal fired boilers.

Construction of the plant began at the end of 2010 but the project didn’t receive final approval from the National Development and Reform Commission until March this year. Both units are expected to be operational by the end of this year.

Ningxia Electric is a subsidiary of Beijing-based Power Construction Corp of China.

Japan-Korea consortium to build $830m thermal plant in Vietnam

Fri, 25 May 2012 10:22:00 GMT

Japanese companies Toshiba and Sojitz and South Korea’s Daelim Industrial are to build a coal thermal power plant in Vietnam.

The consortium has won an $830m order for the Thai Binh 2 project in Thai Binh province on the north-east coast of the country.

The plant will have a capacity of 1200 MW and is owned by Petrovietnam, a subsidiary of the Vietnam Oil and Gas Group.

Toshiba and Sojitz will be responsible for the design, manufacturing and supply of steam turbines and generators, while Daelim will handle overall plant engineering and construction schedule control, as well as procurement of boilers and auxiliary equipment.

Delivery of the steam turbine and generators is expected to be completed by December 2014 and the first unit is due to start operation in 2015.

Rapid economic growth has seen Vietnam’s electric power demand increase at an annual average of 16 per cent, and this is expected to rise further this 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.”