We’re in Kicking the Final Word hydrocarbon habit the money Junior Isles follows the The US is hoping that the release smart money Oman looks to coal for of $3 billion in stimulus funding power generation. Page 2 will boost growth in renewables. Page 14 Page 20

August 2009 • Volume 2 • No 6 • Published monthly • ISSN 1757-7365 www.teitimes.com THE ENERGY INDUSTRY TIMES IN BRIEF Mixed reception to UK G-8 leaders White Paper The UK government’s plan for a transition to a low carbon economy has received a mixed reception. Page 2 agree on Nuclear ambitions take shape Thailand and Malaysia’s nuclear power ambitions are steadily taking shape. climate Page 7 James Connaughton: Norway plans for offshore This would “adventure” appear to be a The Norwegian government has good-faith hailed as “historic” a new set of targets attempt proposals designed to underpin the large-scale development of offshore renewable energy production. The G-8 Summit in Italy last month saw leaders agree on some important Page 9 goals in combating climate change, but getting developing countries to Gulf states prepare for trade commit to binding targets remains an uphill struggle. The operational start-up of the GCC’s North Grid marks a milestone in the By Junior Isles rising more than 2˚C. The G-8 to any binding targets. will bear a greater proportion of the development of the region’s power previously had not been able to agree James Connaughton, the chair of the task,” Connaughton said in an sector. Leaders from the Group of Eight (G-8) on that temperature limit as a political White House Council on interview with The Associated Press. Page 11 industrialized nations have agreed on goal. Environmental Quality under President China was among five developing new targets for battling global warming The G-8 leaders also agreed to a goal George W. Bush, said the G-8 economies – along with Brazil, India, UK View: Leading the low but remain unable to persuade leaders of having industrialized nations reduce agreement goes a step further than a Mexico and South Africa – of developing countries to commit to their greenhouse gas emissions by 80 deal struck at a meeting last year in participating in the summit for the fifth carbon economy reductions of their own. per cent by 2050. It would be part of Japan by assigning a specific goal to straight year. TEI Times gets an industry view on The agreement at the G-8 meeting a worldwide goal of a 50 per cent cut industrialized nations. Developing Chinese State Councillor Dai why the UK could set an example in Italy marks a significant step in in such gases from all nations, rich and countries back then would not agree Bingguo offered a three-point proposal for other countries to follow in making efforts to limit greenhouse gases poor. to a 50 per cent worldwide reduction on the global fight against climate the transition to a low carbon economy. blamed for the world’s rising It remains far from certain however, by 2050. change. He called for unswerving temperature. The US has agreed to that any targets will be met, especially “This would appear to be a good- implementation of the principle of Page 14 language supporting a goal of keeping as China, India and other rapidly faith attempt to assure the developing “common but differentiated the world’s average temperature from industrializing nations have not agreed countries that the developed countries Industry Perspective: Continued on page 2 Preparing for take off The European Commission’s Jan Panek says there are still a number of issues to be tackled to help ensure that CCS is demonstrated by 2015. EC sets out renewable roadmaps Page 16 The European Commission has of the different technologies year on procedures. Governments must list Strategic Environmental Assessment Fuel Watch: Milestone published a template for 27 national year,” explained Christian Kjaer, any “unnecessary obstacles or non- (SEA), which says that an extra renewable energy roadmaps. The 40- Chief Executive of the European proportionate requirements” and 25 GW of offshore wind energy agreement for Nabucco page National Renewable Energy Wind Energy Association (EWEA). outline “whether further steps are could be accommodated around the Despite the recent signing of an Action Plan (NREAP) template gives “This will be of huge value to the needed to ensure that procedures are UK’s shores, in addition to the 8 GW intergovernmental agreement, the governments a binding framework wind power industry, which will have proportionate and necessary” says already built or planned. Nabucco pipeline still faces a number of hurdles before it comes into for drawing up the steps they will a clear trajectory for expected wind the report. The new licensing regime for the operation. take to meet binding national targets energy installations in the EU,” he Member States must complete and cables to connect offshore wind set out in the 2009 Renewable added. submit their NREAPs to the farms to the mainland also started in Page 17 Energy Directive. The template also requires national European Commission by 30 June late June. The competitive tender The template explicitly states that governments to explain the actions 2010. Should they fail to do so, or process, run by regulator Ofgem, has Member States are to set national they will take to develop the power should the Commission consider that the potential to save generators Subscribe sectoral targets for electricity, grid so that their national renewable a plan is insufficient to meet the £1 billion and will also attract new An annual subscription to transport, and heating and cooling electricity target can be met. For legally binding national renewable entrants with transmission expertise. and outline the expected contribution example, they need to outline their energy target, it can start It also offers a longer term stable The Energy Industry Times of each renewable energy technology development plans for transmission infringement proceedings against the investment opportunity. costs £295. to these targets. infrastructure and whether they are Member State in question. The government also published ‘A To subscribe, email: “What the filled-out template will planning to reinforce the Meanwhile the UK’s Crown Estate Prevailing Wind: Advancing UK [email protected] do is to effectively provide the wind interconnection capacity with is to proceed with the third round of Offshore Wind Deployment’. The or visit: energy sector with 27 national neighbouring countries. leasing in UK waters for offshore document sets out work that will www.teitimes.com roadmaps for its development up to The same goes for the planned wind farms. The decision at the end enable the necessary expansion of 2020, and show the expected share measures to smoothen administrative of June follows the government’s the industry.

THE ENERGY INDUSTRY TIMES is published by Man in Black Media — www.mibmedia.com — Editor-in-Chief: Junior Isles — Creative Director: Jerome Hinds — For all enquiries email: [email protected] THE ENERGY INDUSTRY TIMES - AUGUST 2009 2 Headline News

(Continued from page 1) responsibility” established by the UN Framework Convention on Climate Change (UNFCCC), since it is the guideline of international Oman turns cooperation to cope with the challenge. Dai said that developed countries should take the lead in reducing emissions to honour their commitments under the Kyoto to coal Protocol for the first commitment period. Oman’s decision to set up a coal fired power The developed countries should also set a medium-term emission plant could be a significant development in the reduction target after 2012, when region’s strategy to reduce its dependence on the first commitment period expires, Matrah: he said. oil and gas for power generation. Gulf of Oman Secondly, the spreading of technologies should be reinforced, By Junior Isles Coal could be perceived as the only by 2015. next 30 years, narrowing in on an area said Dai. He called for the building tangible mid-term alternative to While the source of coal for the plant in the central region, east of the Jordan of environmentally friendly and Oman is once again taking steps hydrocarbons for large baseload has not been revealed, India could be Valley, JAEC Chairman Khaled Toukan energy-saving societies, technology towards setting up the first coal fired generation in the country and Oman a frontrunner. In 2007 Oman made an told The Jordan Times. promotion, energy optimization and power plant in the Gulf region. At the has long considered the building of a offer to India to exchange gas for coal. The two plants are expected to strengthening environmental end of June, the country began the coal fired power plant. Indian coal has a high flyash content, generate between 1000-1600 MW of protection. process of selecting a team of project In 2004, it had awarded a $410 a key component in cement, which electricity each and utilise water from Thirdly, a solid foundation should advisers to assist the government in million contract to Doosan Heavy would help meet the needs of the the Red-Dead Water Conveyance be strengthened. Dai said that the development of an integrated Industries and Construction to build a infrastructure and construction boom Project. economic development is the key independent water and power project coal fired power and desalination plant in Oman. Under a cooperation agreement to the fight against climate change (IWPP). in Sohar. The project never came to In August last year, India’s National between JAEC and the Ministry of and efforts to tackle the challenge The decision breaks from a policy fruition but at the beginning of last year Thermal Power Corporation (NTPC) Water and Irrigation, the nuclear would be in vain without the that has traditionally seen countries in the Oman Power and Water was looking to forge relationships with reactors will supply 726 MW of economic development of the the Middle East use indigenous Procurement (OPWP) Co again said it firms in Oman with the hope of electricity for the Red-Dead project’s developing countries. resources for thermal power generation was considering the option of building securing fuels to feed its domestic water pumping and desalination During the run-up to the summit, where possible. Currently, Israel and a plant that would have a capacity of power plants. In return, NTPC would operations, while in turn the reactors Mexico’s President, Felipe Calderon Morocco are the only countries that 700 MW of power and 26 million exercise its power generation expertise will receive around 80 million m3 of proposed that the world’s leading have coal in the fuel mix. gallons a day of desalinated water. to develop coal-based power projects water annually for cooling. nations contribute $10 billion to a A strain on oil and gas resources, as In the latest announcement, OPWP in Oman. The JAEC is currently in negotiations Global Green Fund charged with a result of huge domestic demand for has outlined plans for a 1000 MW coal Coal could provide the stop-gap in with a bidder from a shortlist of three financing programmes to combat power plants and large industrial fired IWPP at Duqm in the remote terms of new large, non-hydrocarbon international consulting companies to climate change. projects combined with the need to Wusta region of the sultanate. The baseload generation, until countries in identify and prepare the site for the “We want it to become a financial maintain exports of LNG, has led Oman project is designed to meet the energy the region set up their civil nuclear Kingdom’s first nuclear power plant, mechanism that mobilizes and brings to look at importing coal for power needs of a future industrial and programmes. an area southeast of Aqaba, some 9 km together the different investment generation. At the beginning of last economic hub at Duqm. In a separate development, last month inland. efforts dealing with climate change,” year, Saudi Arabia, the United Arab Oman’s Supreme Committee for the Jordan Atomic Energy Commission Mr Toukan said the selected firm will he said in the central Mexican city Emirates and Bahrain were also Town Planning has already earmarked (JAEC) said it is currently examining carry out feasibility studies over a two- of Jiutepec at the beginning of a rumoured to be looking at the a 271 hectare site just north of the potential sites for what would be the year period, during which it is expected two-day G-8 preparatory session in possibility of building coal-fired power Duqm port for the development of the Kingdom’s third and fourth nuclear to help pinpoint a site for future power late June. plants. IWPP, which is slated to be operational reactors, to be constructed within the plants. Calderon, whose country is the chief promoter of this multilateral instrument, said administration of the Green Fund should be handled by “an already created international organization”. Mixed reception to UK White Paper He said: “I think the World Bank is capable of handling it; it has what The target for wind energy could result in a by consultants McKinsey & Co., CBI electricity generated from renewable it takes to establish an administrative deputy director general John Cridland sources would result in a more balanced agency for the Green Fund.” “dash for gas” said the government’s current policy of mix overall than the current 32 per cent The basis of this mechanism offering incentives for investment in target for 2020. should be “that everyone contributes, CBI calls for more nuclear power and less wind wind power through the Renewables The “balanced pathway” the CBI is not just rich, developed countries,” Obligation will result in less investment advocating would result in wind power he said, though he made an The UK government’s plan for a cent of the country’s electricity to come in other forms of low-carbon energy comprising 20 per cent of the generation exception for the world’s poorest transition to a low carbon economy has from renewable sources by 2020. such as nuclear and carbon capture and mix by 2030, versus 24 per cent in the nations. received a mixed reception from British The government’s plans were generally storage. business-as-usual scenario. Meanwhile, Calderon added that there should business and players in the power well received by environmental groups, “The government’s over-ambitious nuclear would provide the bulk of power be a principle of common and industry. including Greenpeace and Friends of the target on wind will crowd out investment generating capacity at 34 per cent instead individual responsibilities, with In July, the British government detailed Earth. in other low-carbon sources that have a of 20 per cent if current policies continue. industrialized countries benefiting ambitious plans to cut carbon emissions Andy Atkins, executive director of critical role to play in the mix,” Cridland Under the alternative scenario, the UK from the fund in an amount less than substantially by 2020. The goal is to Friends of the Earth, said the planned told a press briefing ahead of the report’s would need 10 to 15 new nuclear reactors they put in, while less developed reduce carbon emissions by 34 per cent measures were welcome, but more publication. instead of the gas power stations that countries receive more than the in 2020 (compared with 1990 levels) decisive steps were needed. “We need The UK is also facing a looming energy would have been built under the business quota they contribute to the fund. and 80 per cent by 2050. more ambitious emissions cuts, greater gap. Around half of its generating as usual case. One requirement this mechanism Energy and Climate Change Secretary levels of investment and an industrial capacity is due to close by 2020 and EDF Energy welcomed the publication should have, he said, is a technical Ed Miliband said the proposal, which strategy that really delivers,” he said. many industry experts say the 2020 target of the CBI’s Energy Report. Vincent de agency “for the rapid application of now must be debated by lawmakers, In addition to the expansion in wind for wind energy is unlikely to be met. Rivaz, CEO of EDF Energy, said: “We resources” that wouldn’t be a relies on expanding the use of wind energy, the White Paper also envisions This could result in a “dash for gas” as strongly endorse the conclusion that a permanent source of political debate. energy, insulating homes better, installing the continued use of nuclear power and utilities scramble to build electricity diverse low carbon generation mix, with In a separate announcement sophisticated electric meters and other clean coal but some question whether generating capacity quickly and cheaply. contributions from nuclear, renewables Swedish Prime Minister Fredrik measures. the government has the right balance in This would leave the country relying and fossil fuel with carbon capture and Reinfeldt, whose country has the “This is a route map for how as a its planned energy mix. mostly on gas imports by 2030. “If the storage is essential to our future. European Union presidency in the country we are going to take the carbon The Confederation of British Industry government can’t deliver on renewables, “A robust carbon price is important to second half of 2009, said that the dioxide out of what we do, in the way (CBI) issued a report that said the UK the only sensible default is gas which the delivery of low carbon electricity recession has caused such havoc we provide energy, in our homes, and government needs policies that will allow means we won’t decarbonize the power generation, including our plans to build with the budgets of EU nations that in the ways we provide transport as the development of more nuclear power sector and we’ll also have an issue of four new European Pressurized Reactors poor countries cannot count on much well,” he said. and less wind energy. security of supply,” Cridland added. in the UK, with the first operational by money from Europe to help them The White Paper also calls for 40 per Citing a report prepared for the CBI Cridland said a 25 per cent target for the end of 2017,” he added. meet their climate change goals. Advertise EU to tighten pollution standards in The Energy Industry Times The European Union has moved to agreed to set new pollution standards would not force tighter standards on had hoped for stricter pollution by calling the hotline today: tighten curbs on pollutants that cause for heavy industry and power plants German industry, where many sites controls, and the new law would acid rain for 50 000 sites in most EU to limit how much sulphur dioxide and already meet the proposed new EU give some factories until 2020 to +44 208 123 1685 nations, particularly in eastern Europe nitrogen oxide they can release by minimum standards. comply. or enquire: where many plants will have to be 2016. Germany’s deputy environment EU lawmakers must try to agree the [email protected] upgraded to pollute less. The new rules, which still need to be minister Michael Mueller said his final shape of the law with At the end of June, EU governments approved by the European Parliament, country, France, Austria and Ireland governments later this year. THE ENERGY INDUSTRY TIMES - AUGUST 2009 THE ENERGY INDUSTRY TIMES - AUGUST 2009 4 Americas News Tenaska, US ready to Duke move release forward with $3 billion IGCC projects FutureGen gets for Record of Decision DOE collaborates on gas cleanup system Advanced clean coal projects in the USA are taking tentative steps renewables forward with the support of federal government funds and the prospect of climate change legislation. Wind capacity additions could Energy firm Tenaska said last month that it has been selected to halve in 2009 negotiate for up to $2.5 billion in federal loan guarantees for its Denise Bode: grants will get companies back on track Taylorville Energy Center in CSP research gets $52.5 million Illinois, while Duke Energy has The US government is hoping that the developers are “anxious to ramp up believes that the cash injection will projects include research into manu- filed testimony with the Indiana release of up to $3 billion of stimulus investments”. jump-start the entire renewable energy facturing, operation, maintenance and Utility Regulatory Commission funding will entice private capital off “As with all industry, the economic value chain. reliability of wind turbines carried out over its plans to store carbon the sidelines and boost growth in the conditions of the past eight or nine While the US wind energy industry by companies such as QM Power, PPG dioxide from the Edwardsport plant renewable energy industry. months have held us back,” said enjoyed a record year in 2008, Industries, Honeywell, GE and Bayer. being built in Indiana. The Obama administration has AWEA CEO Denise Bode. “We expectations are for a much slower The DOE has also announced plans The two companies’ plans for released the much anticipated believe these grants will help get our year in 2009. In its Wind Technologies to provide up to $52.5 million to clean coal received a boost in June guidelines for renewable energy project companies back on track, create more Market Report for 2008, DOE says support research, development and when the US House of developers to apply for the funding jobs, and balance our electricity that the USA is the fastest growing demonstration of CSP systems, which Representatives passed legislation and is expecting to receive large portfolio with clean, renewable energy. wind market worldwide, leading the capture the sun’s energy as heat, which aimed at reducing carbon dioxide (CO2) emissions. The US Senate is numbers of applications from the “The implementation of this world in new capacity additions for is then used to generate electricity. The expected to take up the issue later opening date of August 1. The funding programme for renewable energy will four years in a row. government is keen to see the this year. could support up to $15 billion worth be a welcome boost, just when we all The country has also overtaken development of this technology, which In addition, the federal economic of renewable energy projects, need it.” Germany to take the lead in cumulative is already in use in the world’s sun- stimulus package has allowed an according to the government. belt, as it has the ability to store energy increase in funds for the US The guidelines were released as the A key factor… is the decision by the US Treasury to – a major advantage over other Department of Energy’s Clean Coal US Department of Energy (DOE) renewable energy systems. Power Initiative. The DOE also published its latest Wind Technologies release the funds up-front to projects, rather than in The CSP funding will not only took a step forward with the Market Report, which indicates a the form of tax credits support research into components for FutureGen clean coal project by significant slowdown in wind capacity a CSP plant, but will also help in the issuing a National Environmental additions in the country for 2009 A key factor for renewable energy wind capacity installations. evaluation of the feasibility and Policy Act (NEPA) Record of compared with 2008. The DOE has developers is the decision by the US The year 2008 saw the addition of development of a prototype CSP plant Decision. also announced $13.8 million of Treasury to release the funds up-front 8558 MW of new wind capacity in the capable for operating for at least 18 Tenaska says that it expects to Recovery Act funding for a number of to projects, rather than in the form of USA, representing investments of hours per day. receive the federal loan guarantees wind energy research projects, as well tax credits. This will give the industry $16 billion, but this is expected to fall “Low-cost renewable energy when it finalises an agreement with as $52.5 million of funding for research a much needed cash injection, says the to 4400-6800 MW for 2009, says the generation that includes energy storage the DOE. The funds would support construction of the Taylorville into concentrating solar power (CSP) government. report. Most predictions show market is one key to our efforts to diversify project, which would consist of an research. Some in the industry have criticised resurgence in 2010 and continuing for domestic energy sources and create integrated coal gasification The opening of the renewable energy the government for taking too long to the immediate future. new jobs,” Energy Secretary Steven combined cycle (IGCC) power grant application process has been get the application process started, but In July the DOE announced the Chu said. “By investing in the plant equipped with carbon capture widely welcomed by the USA’s the DOE and Treasury say that the selection of 28 new wind energy development of low-cost solar and storage (CCS) technology. renewable energy lobby, including the funding will support around 5000 projects that will receive up to technologies we can pave the way The proposed plant will cost an American Wind Energy Association biomass, solar, wind and other types $13.8 million in funding, most in the toward faster deployment of carbon- estimated $3.5 billion to build. (AWEA), which says that project of renewable energy facilities. AWEA form of Recovery Act funds. The free, large-scale energy sources.” Duke is also planning to equip the Edwardsport IGCC facility with CCS technology, and is proposing a study of potential permanent underground storage sites for CO2 in southwest Indiana. It wants to invest $121 million in a three-year GDF Suez turns to study to determine the characteristics of storage sites and drill wells. The company reached a milestone Brazil’s nuclear market in late June with the arrival of the first major pieces of equipment for the Edwardsport plant at the site. Jirau finance agreed July also saw an announcement by the DOE that it is to team up Attractive regulatory environment for new nuclear with Research Triangle Institute European utility giant GDF Suez is GDF Suez chairman Gérard of continued economic growth in of the Jirau plant, which is due to (RTI) International to design, build, looking to exploit opportunities in Mestrallet told the FT that the Brazil. start operating in 2013. and test a warm gas cleanup system the Brazilian nuclear power market economic and regulatory environment The Jirau project is also part of the In 2008 GDF Suez completed the to remove multiple contaminants from coal-derived syngas. The following its success in the country’s in Brazil looks promising for new Brazilian government’s Growth construction of the 148 MW Sao 50 MWe system will include hydropower market. reactors because the government is Acceleration Plan, known as PAC. Salvador hydropower plant on technologies to remove trace The company sees Brazil as a taking a measured and rational The BRL7.2 billion (¤2.44 billion) Brazil’s Tocantins River, and also elements such as mercury and potentially lucrative market for EPR approach to new energy investments. finance contract agreed between GDF bought two small hydropower arsenic, capture CO2, and extract nuclear reactor technology, according In June, local reports from Brazil Suez and Brazil’s development bank facilities in Mato Grosso state for more than 99.9 per cent of the to the Financial Times newspaper. It indicated that the government was BNDES will finance 68.5 per cent of BRL314 million. sulphur from the syngas. recently agreed the finance contract planning to build four new 1000 MW the ¤3.3 billion project. Brazil currently operates two A novel process to convert the for the 3300 MW Jirau hydropower nuclear power plants by 2030. The The loan is the largest ever made nuclear power plants at Angra, while extracted sulphur to a pure plant, which it is building on the move would form part of plans to by BNDES. GDF Suez is leading the a third unit at the site is projected to elemental sulphur product will also Madeira River in the north of Brazil. boost generating capacity in the face ESBR consortium in the construction open in 2014. be tested. THE ENERGY INDUSTRY TIMES - AUGUST 2009 THE ENERGY INDUSTRY TIMES - AUGUST 2009 THE ENERGY INDUSTRY TIMES - AUGUST 2009 Asia News 7

Wannarat Channukul: Thailand’s Southeast Asia lifts Energy Minister

World Bank clean energy launches support programme Japan to provide loans to developing investments countries The drive to make the transition to a average interest rate will be from 0.25 in June by the Japanese government, The 2009 Energy Policy is designed and reduce greenhouse gas emissions low carbon economy in Southeast Asia per cent to nearly 2 per cent with a 20 which said that it would provide up to to help developing member countries in the region. countries is making significant to 40-year repayment period. The Yen500 billion ($4.8 billion) worth of provide reliable, adequate and Despite these efforts, however, the progress, with both multi-national and World Bank and the IFC will provide loans for developing countries, affordable energy supplies to all continuing use of coal, which is the national lending agencies announcing technology and support for loan including Vietnam, to combat climate citizens, as an integral part of the major energy source for power funding for clean energy projects and applicants. They will also coordinate change over the next five years. ADB’s Strategy 2020 of promoting generation in the region, remains a sector reform. the market’s clean development According to the Japanese inclusive and environmentally challenge to reducing emissions. In July the World Bank and its mechanism or carbon credit trading. government, the credit programme sustainable growth. Greenpeace and other environmental subsidiary, the International Finance Thailand along with Indonesia, the aims at winning the developing ADB vice president Ursula Schaefer- groups recently called on Thai energy Corporation, said they would offer Philippines and Vietnam is one of the countries’ support for an initiative to Preuss said that the bank’s investments policymakers to rethink building coal- Thailand $700 million in financial first ten countries where the World build a new global agreement on in the sector will focus on energy fired power plants. support to help develop renewable Bank has launched the support reducing greenhouse gas emissions. efficiency and renewable energy Environmentalists also do not believe energy. The two organisations will programme. Under the lending programme, the projects, along with expanding access advanced clean coal technology is a finance development projects through Thailand’s Energy Minister Wannarat beneficiary countries will set specific to energy, particularly in remote rural solution. Wanun Permpibul, a the World Bank’s Clean Technology Channukul commented: “Thailand was objectives to cut down the volume of regions where coverage remains representative from the Thai Working Fund and the IFC, said Jitendra Shah, selected to be one of World Bank’s greenhouse gases in areas such as limited. Group for Climate Justice, said it was country sector coordinator at the World preferred countries since the kingdom energy and industry. It will also support sector reforms, impossible for a carbon capture and Bank. has a clear policy on renewable and In June, the Asian Development Bank improved governance and capacity storage system (CCS) to be While the terms and conditions for alternative energy and has the potential (ADB) announced an energy policy to building. Starting from 2013, the ADB commercially viable. He added that accessing the funds were scheduled to to become a demonstration country in help Asia and Pacific countries secure will double its target for clean energy the technology would never be released to loan applicants at the this field.” adequate energy supplies while cutting investments to $2 billion a year in a materialize, as its cost is too high for end of July, it is expected that the The news follows an announcement levels of greenhouse gas emissions. bid to accelerate low-carbon growth the business sector. Nuclear Slowing demand and ambitions take delayed reform impact shape Philippines IPPs Malaysia to draft energy and nuclear policy in three months Thailand to complete feasibility studies by A slowdown in demand combined with delays in establishing an year-end independent market operator is having a negative impact on Nuclear ambitions are steadily taking operating in 2020, said Dr Kamol planned independent power producers in the country. shape in Thailand and Malaysia. Takabut, assistant governor for Egat, Malaysian Science, Technology and who oversees power plant engineering By Syed Rashid Ali independent power producer “There has to be strong political Innovation Minister Maximus Ongkili for the authority. administrator contracts that were bid will to push through with the said in local newspaper reports that Under the PDP, the relevant state The poor response to bids for recent out to the private sector for privatization of the IMO in order to Malaysia would draft an energy agencies have until the last quarter independent power producer (IPP) management. IPPs are currently give more confidence for not only policy and guidelines to include of 2010 to complete their feasibility contracts in the Philippines may be contracted to supply electricity to the existing investors but foreign nuclear energy within the next three studies for a 2000 MW nuclear plant. a reflection of the government National Power Corp (Napocor). investors to take a look again at months. Ongkili said the government The cabinet will base its decision on pushing back the projected electricity When these are turned over to the investing at the Philippine power has already agreed on the policy and whether to give the plant the go-ahead shortfall combined with ongoing private sector, the winning bidders industry,” he said. that his ministry was cooperating with on the results of the studies, which delays in full market liberalization. will then manage the contracted The ongoing delays are not good the Malaysian Energy, Green will investigate issues such as In July DMCI Holdings Inc. was capacities of the government in IPP for the IPPs, especially at a time Technology and Water Ministry in environmental impact, health and declared the highest bidder for the plants. when electricity demand is slowing. drafting the policy. safety, technology selection, human 600 MW Calaca coal fired thermal The privatization of 70 per cent of At the end of June, Team Energy Malaysia will need 10 to 15 years resource development and public power plant in Batangas with an offer the government’s IPP contracts is Philippines, a 50-50 joint venture to tap energy from nuclear because opinion. The Nuclear Power of $361.7 million. one of the five requirements under between Marubeni and Tokyo of the huge human resource involved, Programme Development Office Notably, however, the state-owned the Electric Power Industry Reform Electric Power Company, said it was Ongkili said after witnessing the (NPPDO) has a Baht 1.345 billion Power Sector Assets and Liabilities Act (EPIRA) of 2001 before open deferring its expansion plans for the signing of technical cooperation ($39.5 million) budget to carry out Management (PSALM) Corp. said access and retail competition can be 700 MW Pagbilao coal-fired power agreements between Malaysian the studies from 2008 to 2010. there were at least four groups pre- implemented. plant in Quezon, as the projected companies and the South Korean The plant’s proposed locations will qualified to bid for the power facility At the end of June, members of the shortfall in electricity has been Research Institute of Bioscience & be narrowed down to three from 14 but only two showed up during the Philippine Independent Power pushed back to 2013. Biotechnology. by year-end. “Which technology to bidding. Producers Association (PIPPA) were Originally, the Department of He also said that Malaysian Energy, select, such as a pressurised water Meanwhile, at the end of June the still pushing for the establishment of Energy had forecasted that the Green Technology and Water Minister reactor or a boiling water reactor, will government rejected bids for an independent market operator country would suffer from an Peter Chin Fah Kui would visit South also be clearer by that time,” said contracts to manage the 1000 MW (IMO) that will manage the electricity shortfall as early as 2010. Korea this month on the issue of Dr Kamol. Sual and 700 MW Pagbilao coal fired operations of the wholesale electricity Team Energy president Federico E. nuclear technology. Egat is currently considering sites power plants. spot market (WESM). Puno said that the global economic The Electricity Generating Authority in Surat Thani, Nakhon Si “[The bids] did not meet the reserve Ernesto Pantangco, president of crisis had also dampened local power of Thailand (Egat), meanwhile, says Thammarat, Chumphon, Prachuap price,” Jose Ibazeta, president of PIPPA, said the EPIRA mandated demand. “So, you’re looking at 2012 its nuclear power programme will Khiri Khan, Chonburi and Chai Nat PSALM, told reporters after the the formation of the IMO, which had to 2013 when the new plants will be move forward as planned. provinces. bidding. Despite the setback, been delayed for more than two needed,” he said. Feasibility studies on the technology Nuclear is seen by energy policy PSALM said it remained confident years. Puno added that the company should be completed by the end of makers as the cleanest, most viable that IPP administrators would be He said the IMO should have been would also have to determine if it next year as scheduled. way to boost Thailand’s energy appointed before the year ended, as created a year after the commercial could pursue its expansion plans once In the current 15-year power security, despite arguments from the it would start preparations for a new operations of the Philippine management of the Napocor’s IPP development plan (PDP), the environmental lobby that the round of bidding. Electricity Market Corp. (PEMC), contract for the Pagbilao facility has country’s first nuclear plant will start technology comes with high risks. This was the first batch of which started in 2006. been turned over to the private sector. THE ENERGY INDUSTRY TIMES - AUGUST 2009 8 Asia News

Sri Lanka develops China to invest heavily in renewable environmental protection energy Xie Zhenhua: The Sri Lankan government has China is tackling climate change on The technical assistance will produce undertaken,” said Ashok Bhargava, NDRC vice-minister designed a national energy plan for several fronts and has said that a comprehensive road map for carbon senior energy specialist in ADB’s East the development of wind and the investment demand by its capture and storage (CCS) Asia Department. “The full benefit of consumption per unit of gross domestic biomass energy, with the goal of environmental protection industry is demonstration projects, as well as such a technology cannot be achieved product by 20 per cent from 2006. meeting ten per cent of its energy likely to reach 450 billion yuan ($65.9 policies, and legal and regulatory unless it is used in major coal-based China has also been making rapid needs from renewable energy by billion) in the coming five years. frameworks to promote CCS. It will developing economies such as India progress in wind power. Workers were 2016. According to Xie Zhenhua, vice- also identify priority demonstration and China.” scheduled to begin construction of the According to a statement issued minister of the National Development projects and their financing needs, as ADB will fund the bulk of the $1.55 country’s first 10 GW-scale wind power by the Department of Government and Reform Commission (NDRC), out well as undertake capacity assessment million project in the northern Chinese project in mid-July in the far north- Information, the government has of the four trillion yuan economic and comprehensive capacity city of Tianjin. ADB’s technical western city of Jiuquan, Gansu Province. decided to join the International stimulus package, 210 billion yuan will development in critical areas of CCS assistance will be sourced from the The project is designed to have an Renewable Energy Agency be invested in energy savings and demonstration. Climate Change Fund and technical installed capacity of 5.16 GW by the (IRENA) as a move to promote the emission reduction, the development The technical assistance supports assistance special fund. The rest of the end of 2010, 12.71 GW by the end of development of renewable energy of a recycling economy and eco- China’s plan to develop its first IGCC money will come from the Chinese 2015 and 20 GW by the end of 2020. in the island. environment construction. demonstration power plant in Tianjin, government. Last month, the ADB also announced “The development of indigenous Notably, in early July, the Asian which is lined up for possible ADB China also said that it would make a that it would partly finance a $73 million renewable energy is the key Development Bank (ADB) said it would financing under the Country greater effort to improve energy wind farm in Chifeng City in the Inner solution to the current challenge on provide a $1.25 million technical Programming Mission (2009-2011). efficiency goals in the next five-year Mongolia Autonomous Region to reducing the dependence on assistance fund to push forward “CCS is in its early stage of national climate change plan from 2011. support China’s efforts to cut imported petroleum,” said the technology to capture and store CO2 development globally, and In the current five-year plan to 2010, greenhouse gas emissions and promote statement. from the country’s coal fired plants. demonstration projects need to be China has set a goal of cutting energy private investment in renewable energy. With its economy growing at 7- 8 per cent for the last few years, the country has struggled to keep pace with power demand. The country also struggles to supply power to the north and eastern regions during periods of drought. But the situation looks set to ease with the signing of an agreement at the end of June with the Chinese government to commence the second and third phases of the 600 MW Norochcholai coal power project. The first phase of the project generating over 300 MW is expected to be completed by next year. Power and Energy Minister John Seneviratne said the first, second and third phases of the project are expected to generate over 50 per cent of the country’s power needs. They will also halve the production cost of a unit of electricity since the diesel power generation plants will be removed after the project is completed. He said the main objective of the project is to reduce the existing electricity tariff, which is the highest in the Asian region. Japan utilities to build smart grid The Federation of Electric Power Companies of Japan will begin development of a smart power grid able to accommodate widespread solar power generation. The Federation’s ten utilities will collaborate on the project and is aiming for completion by 2020. Building this grid will entail R&D on systems to predict solar panel output, power storage devices, and other technologies. Power industry experts say the current grid is unable to handle solar power output of more than 10 GW. This spring, the government decided to double its target for solar power output in 2020 from 14 GW to 28 GW. The Federation determined that Japan’s power infrastructure needs to be rebuilt to accommodate this rapid expansion of solar power generation. The government expects solar power output to reach 53 GW by 2030. Just creating a storage system to handle this output will cost an estimated Yen6 trillion ($63 billion). The burden of such investments may be passed along to consumers in the form of higher electric bills. THE ENERGY INDUSTRY TIMES - AUGUST 2009 Europe News 9 EDF calls for action on debt As the French government prepares to sell stakes in Areva to boost the engineering group’s finances, state-owned utility group EDF has highlighted its own troubles. Siân Crampsie The French government has ruled out according to reports. of its 90 per cent stake to industrial the prospect of large increases in the Electricity tariffs is already a hot peers, current stakeholders and electricity tariffs as a means of helping topic in France due to on-going employees. utility giant EDF to reduce its debt. investigations by the European Areva CEO Anne Lauvergeon said French economy minister Christine Commission and the recent publication the move would raise around Lagarde has told the country’s by the government-appointed ¤10 billion and would mean the end parliament that while no decision has Champsaur commission of proposals to years of uncertainty. yet been made on tariff increases, any to overhaul the country’s complicated The government’s decision to sell tariff rises “will be based on costs electricity pricing system. part of its 90 per cent holding in Areva associated with electricity in France”. Paul Champsaur, former Chairman and to sell part of its business will Christine Lagarde: Her comments came after head of of the French regulatory tele- mean that the nuclear engineering tariff increase state-owned EDF told the French communications authority, said in May group will be able to finance its long- “incomprehensible” media that it would have to cut that all electricity suppliers in France term development plan. The company investment in 2010 if the government should be given access to low-cost is benefiting from rapid growth in the EDF, meanwhile, is feeling the regulatory decision on its proposed did not agree to raise electricity tariffs electricity generated by EDF’s nuclear global nuclear energy market, and says pressure of its ¤24.5 billion debt, which purchase of a 50 per cent stake in US by 20 per cent over the next three and hydropower fleet. If implemented, that it needs to invest and recruit as is largely the result of its recent £12.5 utility Constellation Energy, with years. Pierre Gadonneix’s comments his proposed measures raise the well as maintain a healthy balance billion purchase of UK nuclear energy which it has a joint venture – UniStar are reported to have angered the prospect of a rise in tariffs, although sheet in order to reinforce its position firm British Energy. Recent months Nuclear – to build new nuclear capacity government and allude to the pressure EDF would probably lose market in the market. have also seen it having to deal with in the USA. Constellation accepted that the firm is under following its share. Areva is to open its capital to strike action at some of its French EDF’s bid of $4.5 billion in December recent spending spree. The net impact would be positive for investment certificate holders and is nuclear power plants and rising costs 2008, a deal which also included an Gadonneix says that EDF, which EDF, however, according to analysts. also launching an employee and delays at the Flamanville EPR immediate $1 billion cash injection controls much of France’s generation Gadonneix’s comments came just shareholders programme. It is also project. from the French firm. and supply market, has increased days after another state-owned giant, planning to continue its cost reduction In June, EDF announced that it Gadonneix told French newspaper investments in the country without a Areva, said that it would sell its programme and improve operational increased its shareholding in Austrian La Tribune in July that he recently rise in income. Lagarde has conceded transmission and distribution division performance. energy supplier Estag from 20 to 25 received positive signals from US that continued investments are required in order to raise cash. The company Areva is to announce an open call per cent by GDF Suez’s 20 per cent regulatory authorities over the deal, but has said that the call for a 20 per will also receive proceeds from the for bids for its transmission and stake in Austrian firm SIA. which he expects to complete in the cent increase is “incomprehensible”, government’s plan to sell 15 per cent distribution group. The utility is also waiting for a autumn. Norway Andalusia plans for offshore to host “adventure” The Norwegian government has hailed as “historic” a new set of proposals designed to underpin the large-scale development of offshore renewable energy smart city production. Presenting a new act on offshore The Spanish city of Malaga is to follow dioxide (CO2) each year. selected consulting firm Accenture to will involve the deployment of renewable energy to parliament, in the footsteps of Amsterdam and The ¤31 million Smart City initiative help implement a smart city technologies such as photovoltaic minister of petroleum and energy Miami by launching a “smart city” will involve 11 companies under the programme that is set to become the panels, micro power generation Terje Riis-Jonahsen said that the initiative aimed at promoting leadership of Endesa and will be rolled first of its kind in the European Union. systems and energy storage devices. proposals would establish a sustainable energy use. out over a four-year period. It is a The US city of Miami has also laid All customers participating in the framework for the development Endesa and the regional government “pioneering” project that will out plans for a $200 million smart city project will receive smart meters. of renewable energy resources as of Andalusia have unveiled the project, “introduce a new urban energy initiative. Endesa will also analyse the energy well as ensure that other which they say will cut energy management model” for others to Endesa’s project will benefit 300 usage and efficiency data generated challenges are properly overcome. consumption by 20 per cent and avoid follow, says Endesa. industrial customers, 900 service and use the result to improve energy The government wants to the emission of 6000 tonnes of carbon In June, the City of Amsterdam providers and 11 000 households. It systems in other urban areas. undertake a process of identifying sea areas that are suitable for offshore wind power development and carrying out full impact assessments. The proposed act Nuclear debate fires up election politics also includes regulations on the process of applying for The revival of the debate in Germany four years. The move follows a concessions, and the construction, Italy says “yes” follows recent decisions in Italy and recommendation by the country’s operation and close-down of Spain decides on Garona plant Spain on nuclear power. The UK nuclear regulatory agency that the offshore renewable energy government has also proposed changes Garona plant be allowed to operate for production assets, including Nuclear energy has once again become The Kruemmel reactor near to the regulation of the nuclear another ten years provided that it offshore grids. a topic for political debate in Germany Hamburg shut down automatically in industry. undergoes a safety upgrade. “A future large-scale in the run-up to the country’s early July when a transformer short- Italy’s parliament has given final The Garona plant came on line in development of offshore September general election. circuited. It had reopened in June after approval to a contested bill allowing 1971 and was initially designed to renewable energy production The emergency shutdown of a a two-year closure prompted by a fire a return to nuclear energy more than operate for 40 years. The latest decision presents us with a number of nuclear plant in northern Germany – in another transformer. two decades after the country voted to extend its operating license has challenges,” said Riis-Johansen. just a few weeks after it had reopened Under plans implemented by in a referendum to shut down its angered environmental campaigners. “The proposed act is an important following a two-year closure – has Germany’s previous, Social Democrat reactors. The government is now In June the UK government put part of the long-term efforts of given Chancellor Angela Merkel’s government, all of the country’s 17 expected to choose the sites for forward a proposal for the creation of the Norwegian government in the rivals a chance to criticize her policies nuclear plants are to be closed by 2021. construction of the plants, a a single regulatory body to oversee field of offshore wind power. on nuclear power. Merkel’s Conservatives, which lead programme in which both Enel and the country’s nuclear energy sector. “The proposal creates a Germany’s centre-left Social the country’s present coalition France’s EDF are expected to play a The restructuring would help the framework for ensuring that Democrats say that the September 27 government, have kept that plan. major role. industry meet the challenges of dealing energy infrastructure is planned, elections are a chance for Germany to Merkel, however, is keen to extend In Spain, meanwhile, the government with the new build programme, the constructed and operated with due decide on whether the country’s the life of some reactors in order to has given the go-ahead for the operation of ageing nuclear reactors concern for energy supply, nuclear reactors should continue to help the country achieve greenhouse country’s oldest nuclear power plant and the decommissioning of legacy environment, security, fisheries, operate. gas emission cut targets. to continue producing electricity for plants. sea transport and other interests.” THE ENERGY INDUSTRY TIMES - AUGUST 2009 THE ENERGY INDUSTRY TIMES - AUGUST 2009 International News 11 Gulf states Kenya prepare for trade unveils The operational start-up of the GCC’s North Grid marks a renewable milestone in the development of the region’s power sector, writes Siân Crampsie. The six nations of the Gulf UAE to form the South Grid – has development”, particularly in light of Cooperation Council (GCC) say that already been completed and the two international discussions on energy drive the start-up of the region’s North Grid ‘mega grids’ are due to be joined in greenhouse gas emissions. marks a new era in power sector 2011. “As GCC countries are moving to economic integration and cooperation. Oman has yet to sign the power accession of the Kyoto Protocol on 2000 MW identified for The North Grid links the electricity trading agreement and has not yet GHG emissions, energy flexibility is grids of Saudi Arabia, Bahrain, Qatar confirmed its participation in the to be pursued and further management development and Kuwait and will allow the four regional grid. efforts must be directed towards nations to trade electricity, boost The power trading agreement sets improving energy efficiency and Masinga Dam closed security and reduce required reserve out the regulations and procedures of introducing alternative energy margins. It was due to be completed electricity exchange and trading sources,” said the report of the Doha- Kenya’s government is hoping that The projects identified for at the end of July with the during usual periods as well as in the based GOIC. a raft of new measures aimed at development include six geothermal synchronisation of a subsea link event of emergencies. It also defines “These challenges also produce addressing the country’s shortage of projects with a capacity of 490 MW, between Bahrain and Saudi Arabia. the commitments of the GCCIA and some opportunities with them, the electricity will help it to avoid the wind power projects with a capacity The link between Qatar and Kuwait the GCC electricity bodies in power carbon trading business that is now need for rationing. of 810 MW and a number of was completed in mid-July. trading and transmission, and lays developing is one of the opportunities Kenyan Prime Minister Raila cogeneration projects. Odinga is also “Qatar and Kuwait can now down the operation standards of the that the GCC companies can Odinga has unveiled extensive plans hoping to see the development of commercially exchange energy,” interconnected grid. capitalize on and benefit from,” said for investment in renewable energy solar and biomass projects. Yousef Janahi, Chairman of the GCC The North Grid project involved the report. as well as energy efficiency measures KenGen produces around 77 per Interconnection Authority (GCCIA), construction of an 800 km, 400 kV Gulf countries – in particular the to help bridge the growing gap cent of Kenya’s 1296 MW of power, was quoted as saying in local the press. double circuit interconnection line UAE – have made a concerted effort between demand and supply. The mostly through hydropower plants. Bahrain was scheduled to synchronise from Al Zour, Kuwait with Doha, in recent years to develop their move came as the country’s main In July the utility stopped operations with Qatar and Kuwait on July 22. Qatar, and a 400 kV submarine line renewable energy industries as a power generating company, KenGen, at the 40 MW Masinga Dam after Five of the six GCC nations linking Saudi Arabia with Bahrain. means of meeting their own energy announced the closure of the Masinga water levels dropped following a prepared for the operation of the new The whole system is overseen by a demand as well as boosting exports. Dam due to low water levels. prolonged drought. grid by signing a power exchange control centre in Ghunan, Saudi In Saudi Arabia, oil firm Saudi As well as the free distribution of The plant was only contributing and trading (PETA) agreement Arabia. Aramco recently announced plans energy-saving lightbulbs, Odinga some 14 MW to the national grid at governing its operation. The ability Separately, the Gulf states have been with Japan-based Showa Shell to says that the sale of solar water the time of its closure, according to to trade is expected to reduce the cost urged to establish a regional energy study the feasibility of generating heaters will now be subsidized. The KenGen. The company has also of power generation in the Gulf as centre in order to speed the solar energy using Showa Shell’s announcement was made at the announced plans to build a 120 MW well as help the Gulf states to meet introduction of renewable energy technology. inaugural meeting of the National thermal power plant on a fast track rapidly rising demand for power. sources to the energy supply system. The two companies have signed a Task Force on Accelerated basis in the city of Mombasa. The start-up of the $1.4 billion North A recent report from the Gulf letter of intent to develop a number Development of Green Energy, Electricity demand in Kenya is Grid marks the end of the first phase Organization for Industrial Consulting of pilot solar power projects in Saudi which will also oversee the growing at an estimated 8 per cent of the GCC’s interconnection project. (GOIC) says that there is a need for Arabia based on Showa Shell’s thin development of 2000 MW of power per annum. The distribution of The second phase – the “an energy programme or centre film CIS (copper, indium and generating capacity over the next energy-saving lightbulbs is expected interconnection of Oman and the that…brings about sustainable selenium) photovoltaic technology. three years. to save 49 MW. Lebanon under strain The electricity supply system in the Europeans Lebanon is experiencing increased levels of strain due to continued economic growth and a lack of investment, according to local reports. back Severe electricity shortages are set to continue in the country over the summer months, partly due to the annual influx of tourists, and the government has been pushed Desertec to ration electricity. According to Lebanon’s Energy Minister Alan Tabourian, the country’s available electricity generating capacity stands at around 1500 MW, while actual demand is concept “at least” 2300 MW. Recent deals to import electricity from Egypt Blue chip firms sign MOU have proven insufficient for José Manuel Barroso: Desertec could bridging the demand-supply gap. DII to develop implementation plan meet 15 per cent of Europe’s power needs Large parts of the country are already receiving less than 14 hours per day of electricity, according to An ambitious plan to supply some framework for the proposed TREC Initiative of the Club of Rome that can make a substantial local press. 15 per cent of Europe’s electricity Desertec project. – is not without its critics, who are contribution to sustainable power The government has been needs by harvesting the solar With an estimated cost of up to sceptical about Desertec’s costs and supply in the future energy mix,” criticised for failing to enact plans potential of North Africa has ¤400 billion, Desertec envisions the viability. stated René Umlauft, CEO of the that would encourage investment received the backing of 12 construction of hundreds of solar But Desertec’s supporters – which Renewable Energy Division at in the Lebanese power system, companies. thermal and wind power plants include José Manuel Barroso, Siemens Energy. “The Desertec including the privatization of power ABB, Abengoa Solar, Deutsche across North Africa and the Middle president of the European project unites sustainability, generation and distribution, the Bank, E.On, RWE, Schott Solar and East and transmitting the electricity Commission – believe that the technological competence and construction of new capacity and Siemens – among others – in July to Europe through a 3000 km high project could meet 15 per cent of visionary entrepreneurship.” switching to natural gas. signed a Memorandum of voltage network. The transmission Europe’s electricity needs as well Over the next three years, the DII Prime Minister Fouad Siniora has Understanding (MOU) establishing portion of the project alone could as a portion of the producer will focus activities on the said that Lebanon requires the Desertec Industrial Initiative cost up to ¤45 billion. countries’ power needs by 2050. development of a viable investment investments of at least $1 billion (DII), which aims to develop the The project – developed by the “Desertec is a visionary project plan. to meet growing electricity demand. THE ENERGY INDUSTRY TIMES - AUGUST 2009 12 Companies News RWE Exelon expands venture withdraws capital NRG offer portfolio Increased offer rejected John Rowe: now focusing on Exelon’s Scandinavian NRG shareholders reject Exelon proposal stand-alone business biomass firms US utility Exelon Corporation says officer of Exelon after the decision by The acquisition of NRG by Exelon message that Exelon’s current offer that it will focus on stand-alone growth NRG shareholders to re-elect all of the would have given the latter access to was unfair to NRG stockholders,” said targeted opportunities following its decision to company’s director nominees to the NRG’s gas and coal-fired plants and David Crane, NRG President and Chief terminate its offer to buy NRG Energy. NRG board of directors. allow it to expand its presence in Texas, Executive Officer. “Our stockholders RWE pools The July 21 announcement came “Now we can redouble our focus on California and northeast USA. share the same commitment as the after a protracted battle with the board Exelon’s stand-alone growth Chicago-based Exelon has almost $19 company’s management and its board of New Jersey-based NRG and the opportunities,” added Rowe. “We have billion in annual revenue and operates of directors to maximizing value either energy efficiency rejection by NRG shareholders of an the nation’s largest low-carbon nuclear 17 nuclear reactors – equivalent to through continued effective Exelon proposal to expand NRG’s fleet, and our plan to expand our about 20 per cent of the country’s implementation of the company’s resources board of directors. nuclear output through uprates nuclear capacity. stand-alone business plan or through Exelon had been pursuing NRG since provides even greater upside from Exelon had asked NRG shareholders combination with Exelon or another RWE Innogy says that its on- late 2008, seeing an opportunity to carbon legislation. We believe our to vote in favour of a proposal to interested party at a price that reflects going venture capital programme create the largest power generation long-term growth proposition remains expand NRG’s board of directors in the value NRG has created and our is helping to bring promising company in the USA with a diverse the best in the industry.” an effort to change the dynamics of future growth prospects.” low-carbon technologies closer fleet of nuclear, coal and gas based In July Exelon increased its offer for the boardroom and raise the possibility Exelon said in a June letter to NRG to commercial deployment. power plants. Its approaches were NRG to 0.545 of an Exelon share for of its offer being accepted. The shareholders that “an Exelon-NRG The Germany-based renewable repeatedly rejected by NRG. each NRG share, up from 0.485 of a company maintains that its offer combination provides a strategic energy firm has acquired a “The NRG shareholders have spoken, share. The move was rejected by NRG, adequately valued NRG. platform for continued growth and minority share in Stirling DK and Exelon will move on. We wish which said in a letter to shareholders “NRG stockholders understood that offers extraordinary value creation ApS, a Danish manufacturer of NRG and its owners well,” said John on July 16 that the offer “continues to this vote was all about value and they benefits to the shareholders of both distributed cogeneration systems Rowe, chairman and chief executive undervalue NRG”. voted overwhelmingly to send a companies”. that can be fuelled by solid biomass. It is also making an investment in the Swedish technology firm Mantex, which Energy companies and engineering firms has developed an automated, continuous method to determine around the world are racing to develop biomass moisture concentration. CCS ventures commercially viable carbon capture The deals bring RWE Innogy’s venture capital portfolio to a total technology, and are finding that joint of six companies and an investment volume of some ventures can help to reduce both costs and ¤35 million. Crispin Leick, head of RWE cut costs risks. Siân Crampsie Innogy’s venture division, said: Utilities and technology firms around have been carrying out research into on the testing of a first-generation The project is scheduled to be in “With our commitment, we the world are continuing to join forces second-generation amino acid post-combustion CO capture process operation by early 2011 and will intend to take promising 2 technologies enabling carbon- in the field of carbon capture and processes for CO2 capture. on a pilot unit to be built by Enel at capture 500 tonnes per day of CO2 storage (CCS) to help reduce costs By combining forces, Siemens and its Brindisi coal-fired power plant in and supply it for storage in nearby neutral energy generation to the and achieve faster times to market. TNO hope to achieve a faster time to Italy. IFP’s chemical solvent-based saline rock formations. “We are very production stage so as to make Among the latest agreements to be market for the technology and the scrubbing technology has already been excited to be party to this important them fit for commercial signed are a cooperation agreement implementation of a full-scale tested under the European Castor project that is the critical next step in deployment.” between Italy’s Enel and French demonstration plant by 2014. project, and further tests under this our development plans for full “We set great store by a diversified portfolio covering the research body IFP and an exclusive “CO2 capture and storage latest agreement will allow it to verify commercial deployment of the KM- cooperation agreement between technologies will in the future play a recent improvements made to the CDR process for coal-based whole range of renewable Siemens and TNO, the Netherlands decisive role in the utilization of fossil process. applications,” said Mitch Morimoto, energies,” continued Leick. “As Organisation for Applied Scientific fuels. They need to be tested for Like Siemens and TNO, a major area MHIA President and CEO. corporate venture capital investor, Research. deployment in large plants and brought of focus for Enel and IFP will be the “The main challenge facing we are a reliable partner in the Across the Atlantic, Mitsubishi to market readiness,” said Michael reduction of operating costs and the deployment of carbon capture and current market environment for Heavy Industries (MHI) has Suess, CEO of the Fossil Power energy consumption of the processes. sequestration technology is young innovative companies announced plans to work with Atlanta- Generation Division of Siemens MHI, meanwhile is to demonstrate demonstrating its effectiveness at a seeking equity capital to develop and launch their technologies in based Southern Company to Energy. “We are currently building a its KM-CDR CO2 capture process at large scale,” said David Ratcliffe, demonstrate MHI’s Carbon dioxide pilot facility at the Staudinger power an existing unit of Alabama Power’s Southern Company Chairman, the market.” Last year RWE Innogy acquired (CO2) capture process on a coal fired plant operated by E.On, where we will Plant Barry. The project, which is President and CEO. “Our involvement power plant. be testing our process under real being funded by MHI, Southern in this and other related projects is shares in Quiet Revolution, a Siemens says that its agreement with operating conditions. Cooperation with Company and the Electric Power part of our commitment to be a leader British developer of micro wind TNO will allow the companies to TNO will take us a great step Research Institute (EPRI), will capture in finding solutions that make turbines, and Dutch company leverage synergies and better utilise forward.” the emissions from the equivalent of technological, economic and Topell, which is developing a common resources. Both organisations Enel’s agreement with IFP will focus 25 MW of generation capacity. environmental sense.” process to produce bio-coal pellets. These were followed in 2009 by an investment in Revolt Technology and the creation of Voith Hydro Ocean Current Technologies. Exxon bets on blue-green future RWE Innogy’s parent company, RWE also said in July that it has Oil firm ExxonMobil is making a rare challenges”. However, it has warned in the transport sector as a means of ability to produce it in large volumes pooled its activities and expertise foray into the alternative energy market that commercial deployment could be reducing greenhouse gas emissions. which will require significant advances in the field of energy efficiency with a $600 million partnership to several years away. Exxon says that if research and in both science and engineering,” said to create a new company, RWE research the potential for making The research and development development milestones are Venter, CEO of SGI. “The alliance Effizienz. biofuels from algae. alliance will focus on the development successfully met, it expects to spend between SGI and ExxonMobil will The purpose of the new The company is joining forces with of advanced biofuels from more than $600 million on the bring together the complementary company is to ensure the rapid Synthetic Genomics Inc. (SGI), a firm photosynthetic algae that are programme, which includes $300 capabilities and expertise of both development of energy efficiency founded by Craig Venter, the pioneer compatible with today’s gasoline and million in internal costs and potentially companies to develop innovative solutions for key residential and of human genome research, and diesel fuels. The move is in line with more than $300 million to SGI. solutions that could lead to the large mobility sectors, including believes that the technology would legislation in Europe and North “The real challenge to creating a scale production of biofuel from electricity and natural gas- help to meet “the world’s energy America mandating the use of biofuels viable next generation biofuel is the algae.” powered vehicles. THE ENERGY INDUSTRY TIMES - AUGUST 2009 Tenders, Bids & Contracts 13

Americas to help improve the efficiency and instrumentation and electrostatic power (CHP) plant with its Ovation reliability of the network in the Indian precipitators. technology. The retrofit will take place Machu Picchu orders state of Maharashtra. during a scheduled eight-week outage ABB will provide 220 kV and 132 Areva submits India bid in September and October 2009. ABB solutions kV substations in the Nashik, Amravati Areva has submitted a bid to the Under the contract, Emerson will ABB is to supply electrical and and Nagpur zones of the state. The Nuclear Power Corporation of India replace the controls on one gas turbine automation equipment for the project is an integral part of (NPCIL) for the design and and one heat recovery steam generator. expansion of the Machu Picchu Maharashtra State Electricity construction of two EPR reactors in It will also perform various instrument hydropower plant in Peru’s Cusco Transmission Company’s efforts to Maharashtra state. upgrades on the GE gas turbine, such region. reduce transmission and distribution The proposed reactors would have a as installing hydraulic servo valves, The Swiss technology firm will losses, and is scheduled for completion combined output of 3200 MW and linear variable displacement provide an integrated instrumentation in 2010. would be built on a site in Jaitapur that transducers and flame detectors. control and electrical solution as part ABB is responsible for the system could accommodate up to six nuclear For the turbine controls upgrade, of plans by Peruvian state-owned power design and engineering, civil works, units, according to NPCIL. They could Emerson will replace existing GE firm Empresa de Generacion Electrica supply, installation, commissioning be commissioned by the end of 2018, Speedtronic Mark IV turbine controls Machu Picchu to increase the plant’s and overall project management. The says Areva. with Ovation technology. For the output by 100 MW. ABB will execute turnkey solution includes the supply HRSG controls retrofit portion of the the project as part of a strategic alliance of a range of circuit breakers, Europe project, Emerson will replace an with Harbin Electric Machinery. instrument transformers, power outdated Alstom Microrec control ABB will supply protection and transformers, power line carrier OPT commits to UK system, installing its proven PlantWeb control equipment, instrumentation communication equipment, and the project digital plant architecture with the and control products, medium- and supervisory control and data Ovation expert control system. high-voltage switchgear, generator acquisition system. Wave energy technology firm Ocean Fellside consists of three 40 MW GE circuit breakers, excitation systems, Power Technologies (OPT) has signed Frame 6B gas turbines and one 68 transformers and cables. The project Malaysian firm plans a commitment agreement to advance MW steam turbine. It supplies is to be completed by the end of 2011. the development of a 5 MW power electricity to the national grid as well The expansion project involves the Cambodia project project off the coast of southwest as steam to the nearby Sellafield construction of a second underground Leader Universal Holdings Bhd of England. nuclear facility. powerhouse at an elevation of 1800 m Malaysia is to invest $160 million in The New Jersey, USA-based firm is above sea level. The work will also a new coal fired plant in Cambodia, planning to build, install and operate International help to regulate the level and flow of according to the Vietnam News Agency. a wave power station comprising its the Vilcanota River. The 100 MW plant will be built in PowerBuoy wave energy converter at Poland plans Baltic wind The present output of the Machu Sihanoukville and will help the the Wave Hub site in Cornwall. It says Picchu plant is 90 MW. southeast Asian nation overcome that it will deploy the devices in a farms ABB will also supply its System electricity shortages. It will take two phased approach once the project Polish energy companies are planning 800xA power plant control system for years to build and is scheduled to start infrastructure has been completed. to build five wind farms on artificial the hydro governor and balance-of- operation in 2012. The South West Regional islands in the Baltic Sea, according to plant, enabling all automation functions According to Cambodian electricity Development Agency (RDA) has been local reports. from a single platform. firm Electricite du Cambodge, the awarded £42 million by the UK Four companies, including the Polish country has an installed capacity of government to construct offshore Energy Group, are said to be close to around 410 MW, while demand is berths and sub-sea cables for Wave signing an agreement to build the $5.6 WinWind eyes US project estimated to be over 800 MW. Hub, which will eventually feature billion project in the Baltic off the Finnish wind turbine firm WinWind Cambodia currently imports electricity wave energy converters from a variety country’s northern coast by 2020. The Oy has signed a letter of intent with from Vietnam and Thailand. of manufacturers and which could output of the wind farms will be over USA-based renewable energy eventually generate up to 50 MW. 1000 MW. developer Wild Brush Energy to supply Alstom wins Indian hydro Angus Norman, Chief Executive of Environmental groups have up to $200 million in turbines for an OPT, said: “OPT has provided strong expressed concerns about the impact upcoming project. project support to Wave Hub and the South of the project on the local ecology. Wind Brush Energy is aiming to Joint venture firm Alstom Hydro has West region’s vision to create a world- develop wind power projects in North been awarded a contract by Lanco class centre for the marine energy Nordex to supply America, including a $270 million Infratech to build a new hydropower industry over the past five years. As a Bandirama III turbines project that will have a capacity of up plant on the river Teesta in the Indian result, we are proud to be the first to to 120 MW. state of Sikkim. sign a Commitment Agreement to German wind turbine producer Nordex Under the terms of the ¤40 million make this project a commercial reality. has won a contract to supply ten wind Gamesa to power Mexico contract, Alstom Hydro will supply turbine units for installation at the four 125 MW Francis turbines and Consent granted for Bandirama III project in Turkey. project generators, as well as other equipment. Under a contract with Turkey-based Gamesa Corporacion Tecnologica has The plant will be connected to India’s 295 MW biomass plant industrial group As Makinsan, Nordex signed an agreement with Turbo Power electricity grid and will help to meet British company MGT Power Limited will supply its N90/2500 turbines for Baja Energy to supply five wind rapidly rising demand for electricity. has received consent from the UK the 25 MW project, which is based in turbines to the Rumorosa wind farm Alstom will also supply the main government to construct a 295 MW flat grasslands close to the port city of in Mexico’s Baja California state. inlet valves and control and protection biomass power plant in northeast Bandirma in west Turkey. As Makinsan The five G87-2MW turbines will systems, and will be responsible for England. has also signed a premium service give a total power output of 10 MW. design, engineering, erection, testing The Tees Renewable Energy Plant agreement with Nordex. The scope of the agreement includes and commissioning. The project is due will burn woodchips and will be one With wind speeds averaging 7.4 m/s, the supply of the wind turbines, their for completion by 2013. of the largest-ever biomass plants to the wind farm is expected to achieve installation and start-up, as well as be built in the world. It is scheduled an annual yield of around 72 GWh, their operation and maintenance. Vestas wind turbines for to start operating in late 2012. equivalent to the annual energy Assembly work is expected to Chris Moore, Director of MGT consumption of around 36 000 Turkish commence in the second half of 2009. Pingtan Island Power, said: “The government’s households. It will avoid the emission Gamesa says that the annual production Vestas Wind Systems subsidiary Vestas consent is welcome news as we are at of over 70 000 tons of greenhouse of the wind power facility will avoid the China has received an order from an advanced stage with the forestry gases. emission into the atmosphere of 15 000 China Fujian Wind Energy Company establishment for fuel sourcing and tons of CO2 a year. to supply wind turbines for a project power plant procurement. We can now ABB to strengthen Saudi located on Pingtan Island in the eastern appoint our banks, conclude the network Asia Pacific part of China’s Fujian province. financing and reach agreement with Vestas will supply 17 of its V80- our preferred technology bidders.” The Saudi Electricity Company (SEC) Areva T&D to improve 2MW units, with delivery scheduled He added: “Other similarly sized has awarded Swiss technology firm for the fourth quarter of 2009. The biomass plants are proposed in other ABB a $34 million contract to Indonesia grid contract includes supply and parts of the country, but our Teesport refurbish and expand 20 substations Areva Transmission and Distribution commissioning of the wind turbines, project is currently two years ahead in the western provinces of Saudi (T&D) is to help improve power a supervisory control and data of the pack and likely to be one of the Arabia. supplies in Indonesia through the acquisition system and a two-year first to be operational.” Under its contract, ABB will be provision of high voltage substations. service and maintenance agreement. The Tees plant will save the emission responsible for the design, engineering, Under a turnkey contract worth ¤120 of 1.2 million tonnes of CO2 per year supply, installation and commissioning million with Indonesian public power BHEL to equip Jharkhand and will account for 5.5 per cent of work. The project is expected to utility PLN Persero, Areva T&D will the UK’s renewable electricity target. strengthen the distribution network in deliver several high voltage substations project Its biomass feedstock will be sources western Saudi Arabia. as well as underground electrical Bharat Heavy Electricals Limited from certified sustainable forestry ABB will supply capacitor banks, cables. The equipment will be used to (BHEL) is to supply the main plant projects in North and South America medium-voltage switchgear, protection improve electricity supplies on the package for a greenfield thermal power and the Baltic States. and control equipment, and a island of Java and its main cities of plant in Jharkhand, India. supervisory control and data Jakarta, Bandung and Surabaya. The company has been awarded a acquisition system that will enable contract worth INR6.4 billion by Emerson to retrofit Fellside SEC to manage the flow of power in Maharashtra orders Adhunik Power and Natural Resources Emerson Process Management has the network. (APNRL). Its scope of work includes been awarded a contract to retrofit the The expansion project is designed to substation design, engineering, manufacture, plant and turbine control system at enable the SEC to meet growing Swiss technology group ABB has won supply, erection and commissioning Sellafield Ltd.’s Fellside power station demand for electricity and improve orders worth $28 million from the of the steam turbine, generator and in the UK. power quality. Maharashtra State Electricity boiler, along with associated auxiliaries Emerson will replace the obsolete The project is expected to be Transmission Company for substations and electricals, control and systems at the combined heat and completed by the end of 2010. THE ENERGY INDUSTRY TIMES - AUGUST 2009 14 UK View Leading the low carbon economy

“The UK is very important as a leader. Last month UK History has shown and continues to Stephen Burgin: show there is a high degree of respect Companies need to ministers set out their for what we do in the UK and how we ask ‘what role can handle matters. We have a substantial we play to make strategy for tackling the international influence.” the plan a reality’? Stephen Burgin, country president threat of climate of Alstom in the UK is a firm believer that the UK has plenty to offer the change and increasing world’s power market. With a long and solid background in the power renewables. Just prior industry, his view of the UK market is worth noting. Burgin is an electrical to the announcement, engineer who began his career as a student apprentice in 1975 with GEC TEI Times took the and has spent most of his career working in the transmission and opportunity to distribution business. Certainly over the last two decades, exchange views with the UK has been among the global leaders in setting the trends that have Stephen Burgin, been responsible for the energy markets we see today. It was among country president of the world’s first to have an operating liberalised energy market and is now Alstom UK on why the attempting to play an instrumental role in the global fight against climate UK could set an change through the adoption of various example for other market mechanisms and technologies to reduce CO2. Earlier this year, as part of its budget countries to follow. announcements, the government set carbon budgets. “The fact that we have put our targets down in law is another example of leadership,” notes Burgin. Most recently, the UK government launched its White Paper called ‘Transition Plan for a Low Carbon Economy.’ The plan explains how the UK will meet the carbon reduction goals set in earlier carbon budgets, setting out its plans to deliver around 40 per cent of electricity from low carbon sources i.e. renewables, nuclear and clean coal by 2020. The government also confirmed that there would be four projects set up to demonstrate carbon capture and storage at coal fired plants. This is a move that Burgin sees as significant for both the industry and Alstom. produce 32 per cent of its electricity as four new reactors with a capacity “The key is to get the technologies Carbon capture technology is a major from renewables by 2020. of 6 GW in 2022 – there is an developed, deployed quickly, focus area of Alstom Power’s strategy But not all are convinced of the intervening period where the UK will overcoming the initial costs to get up in the coming years. The company is wisdom of putting such a great need new capacity. Between now and to industrial level so that we can then heavily involved in post-combustion emphasis on renewables. The CBI the point where we see new baseload gain the economies of scale,” he says. and oxy-fuel capture technology, (Confederation of British Industry), nuclear capacity, according to Burgin, Burgin also welcomes the UK’s plans participating in a number of pilot the UK’s voice of business, argues that the UK energy mix will have three to accelerate the introduction of wind projects in Europe and the US. the intermittent nature of wind, will elements: accelerated investment in power. With its purchase of Ecotecnia Burgin explains: “We are putting a lead to gas having a larger than renewables, new clean coal and gas. in Spain nearly three years ago, Alstom lot of money into CCS. On the power necessary share of the energy mix. It But with some coal plants closing is currently building its first UK side, it’s a major focus area for R&D would also like to see the renewables down by 2016 as a result of opting out onshore wind farm in Scotland. “We investment. We see the main problem target reduced to 25 per cent. Too high of the Large Combustion Plant are well positioned to win other wind being with cleaning up today’s power a target could lead to increased Directive, and the decommissioning farm contracts.” plants so we are concentrating on post- marginal costs. The volatility of wind of existing nuclear plants, Burgin It also has an agreement with combustion. We are looking at the could also blunt the price signals on foresees “the opportunity to install Canadian company, Clean Current and chilled ammonia and advanced amines which the market relies. more gas plants”. is now “engaged in dialogue with processes and have a well elaborated Some industry observers believe Alstom is building new gas combined various parties about involvement in pilot project programme which starts nuclear should play a bigger role in cycle power plants at Langage, Grain potential new tidal projects in Pentland at 5 MW, then to 30 MW, and on up Firth and the Severn Estuary”. to 100 MW. By 2015 we will be able The UK is a good market for Alstom. to offer full-scale commercial carbon With some coal plants closing down by 2016… and We have the most diverse technology capture technology.” the decommissioning of existing nuclear plants, there platform in the supply market and have While he sees the UK’s decision on a strong presence in a country that has setting up the four demos as good is an opportunity to install more gas plants a demand for a diverse energy mix. news for Alstom and CCS, he We are growing our UK organisation acknowledges the challenges that the energy mix than is planned, and and Staythorpe. In April it also broke – recruiting engineers and project remain. “The government now needs could do so if the government creates ground at the Pembroke power station, managers as well as graduates and to make this happen by setting the the right climate for investment. which at 2.2 GW will be the UK’s apprentices, and establishing new environment to spearhead growth in While Burgin had no comment on largest combined cycle plant when it business streams.” the area. Other challenges to clean the subject of whether or not nuclear is completed. TEITimes met with Burgin again at coal include the public consultations should be subsidised or incentivised It is likely that such gas plants will the opening of Alstom’s new welding and planning processes. Also, we are in some way, he did note that nuclear meet demand while the industry waits factory in Burgin’s hometown of still waiting to see the benefits of the is in some respects more advanced for the necessary legislative clarity Stafford. It was just two days after the Infrastructure Planning Commission. than clean coal. While the planning and the carbon markets to be put in release of the UK White Paper and The process still has to be established issues, permits and public consultation place to allow new coal plants. Burgin was excited by the prospects and tested. In parallel, the government still have to be addressed, the market It is fundamental that the UK has a of what it offers. “Companies like ours needs to create the appropriate conditions, although important, are diverse energy mix. Burgin argues that need to read and study the paper and environment which encourages the less of a consideration. “It [nuclear] it is also fundamental that new clean ask: ‘what role can we play to make utilities make necessary investments,” is not dependent on an effective carbon coal forms part of that mix. the plan a reality’? Companies need said Burgin. market. So in this respect, nuclear’s Although the western world has led to take the government document and The UK White Paper on energy and path is probably clearer today.” the development of the technology, use it proactively. If we get this climate sets out how the government With CCS projects coming in the Burgin believes there is an increasing message out to people, then the UK plans to reach its renewable energy mid-long term and new nuclear in the global awareness around the need for can really take a commanding role targets. The government plans to longer term – there could be as much clean coal and therefore a global intent. and be a reference for the world.” THE ENERGY INDUSTRY TIMES - AUGUST 2009 THE ENERGY INDUSTRY TIMES - AUGUST 2009 16 Industry Perspective Preparing for take off The European Commission has acted transport and long-term storage. While there have been to reduce EU greenhouse gas emissions Europe’s climate policies operate by 20 per cent compared to 1990 levels within the framework of the Emission a number of major by 2020, and has committed to take Trading Scheme (ETS), which caps the necessary actions for the emissions and provides a future carbon achievements in key decarbonisation of Europe’s energy price signal to the market. system by 2050. In all realistic future The Commission’s energy and areas of development scenarios the deployment of carbon climate change package adopted in capture and storage (CCS) is deemed December of 2008 included the most in carbon capture and to be a necessity for achieving these ambitious and comprehensive storage (CCS) at the targets, with the potential to deliver framework for promoting renewable around 30 per cent of all CO2 emissions and low carbon energy in the world. reductions. The package included a number of European level, there These ambitious emission reduction CCS-related documents, including the targets have introduced a sense of aforementioned CCS Directive and a are still a number of urgency to the commercialisation of revision of the EU ETS Directive. issues to be tackled to CCS. Consequently, the European From 2013 the third phase of the ETS Commission has identified the need will create a CO2 market with full for a Europe-wide programme of CCS auctioning of CO2 certificates. help ensure that CCS demonstration projects. Furthermore, a New Entrants Reserve CCS has become an integral part of (NER) will be established in the ETS, is demonstrated by EU energy policy in recent years. from which 300 million allowances 2015. Jan Panek Globally recognised bodies, most (corresponding to 300 million tonnes notably the Intergovernmental Panel of CO2 emissions or their cash on Climate Change (IPCC) in their 4th equivalent) have been earmarked for Assessment Report (2007), have the benefit of early projects in CCS stressed the need to transform the and similarly innovative and currently energy sector towards a low-carbon non-commercial low-carbon economy based on clean technologies. technologies. The European Commission has In addition to the agreement on the promoted CCS with several policy use of ETS-NER allowances, the instruments. The first communication EEPR was adopted in the spring of from the Commission regarding CCS 2009. Its total budget is approximately was published in January of 2007 ¤4 billion with ¤1.05 billion reserved aiming for near-zero emissions from for CCS demonstration projects. Up coal power plants after 2020. In March to seven projects can be funded in of 2007 the European Council seven EU countries. Up to ¤180 million endorsed the Commission’s intention per project can be available for the to stimulate the construction and incremental costs of CCS. It is operation of up to 12 CCS expected that proposals will be demonstration projects by 2015. Early evaluated and successful projects demonstration of the technologies is selected by the end of 2009. Investment considered crucial if CCS is to be an in CCS through EEPR will contribute Jan Panek: CCS will take the combined efforts of all stakeholders emissions reduction method of choice directly to the recovery of the EU for the commercial power sector by economy and the stimulation of low- CO2 on its territory. This will provide and other industrial processes will 2020. carbon technologies and capacity much needed certainty for developers dispose of storage options almost In January 2008 the proposal of the building. to invest in CCS projects on a long- irrespectively of their geographic enabling Directive on the geological Furthermore, funds from FP7, the term basis. In addition to the regulatory location. For many sources, this will storage of carbon dioxide establishing EU’s Seventh Framework Programme aspects of transport and storage, some mean the possibility of linking to the legislative framework signalled, for Research, can be allocated in the technical aspects also need to be storage sites in other, perhaps relatively along with the second communication areas of CCS and clean coal resolved. Evaluation of cross-border remote, locations. This underlines the on supporting early demonstration of technologies to facilitate early CO2 transport networks and national importance of future CO2 infrastructure sustainable power generation from demonstration and prepare for storage potentials are just two areas for long-distance CO2 transportation. fossil fuels, the commencement of a commercial employment. In particular, that could be prioritised to assist CCS The Commission has already started set of actions on behalf of the R&D projects related to capture deployment. taking steps to identify key parameters Commission towards financing these technologies, storage site development, Thirdly, successful demonstration of of such future infrastructure. A study, CCS demonstration projects across public awareness, or efficiency CCS in large-scale projects depends to be completed in 2010, aims to Europe. identify the possible scenarios of long- The communication outlined an distance CO2 transportation in Europe ambition for each industrial-scale Selection of the projects that will be funded is expected and to outline alternative blueprints demonstration project to integrate all to take place by the end of 2011 for requisite EU-wide infrastructure. parts of the CCS value chain, from This task includes the identification capture to storage, and for the portfolio of possible needs of public co- of projects to include all main increase in power plants equipped with upon the extent that knowledge sharing financing. technology routes: pre-combustion CCS can be funded under FP7. and ‘learning-by-doing’ will drive Finally and most importantly, the capture, post-combustion capture, Certainly there have been a number down costs. The CCS Project Network financing instruments the Commission oxyfuel combustion, pipeline transport of major achievements in key areas of will be in a position to gather has proposed via the EEPR and ETS- of CO2, shipping transport, depleted CCS development at the European information on how EU countries and NER will not cover the full additional gas field storage, saline aquifer storage level. These measures complement CCS projects are addressing the investment and operation costs required etc. industry and Member States’ support common obstacles they face. Each of for the first CCS demonstration Since then, developments have to help ensure that CCS is the tasks of the CCS Project Network installations. There is a need for effective gathered pace and a number of exciting demonstrated by 2015. Still, there aims to accelerate deployment of CCS funding solutions from Member States initiatives look set to advance CCS remain a number of issues to be in the EU and assist technology transfer in addition to the funds Member States demonstration. Amongst them, the tackled. globally. The indirect benefits of will be able to use on the basis of the CCS Project Network which was Firstly, the details of the mechanism ‘learning-by-doing’ and maximising ETS-NER. Additional funding from proposed by the Commission in late under which allowances from ETS- knowledge sharing through the CCS national governments and industrial 2008 to coordinate the demonstration NER will be allocated to CCS Project Network can contribute sponsors will be crucial for providing of CCS and provide participating demonstration projects and innovative towards the reduction of technology investors with further confidence in the projects with a European identity. renewable projects need to be worked and operational costs, faster diffusion, first CCS projects and accelerating the Communication actions, facilitation out. The Commission has already deployment and commercialisation. wide scale deployment of CCS in a of knowledge sharing, public started taking steps to ensure that the Additionally, the issue of public timely manner. engagement to raise awareness of the mechanism is defined by 2010. acceptance needs to addressed. The Only with the combined efforts of potential of CCS and international Selection of the projects that will be precise environment in each country all stakeholders will the early CCS cooperation, are the main tasks of the funded is expected to take place by will be different, but through the CCS demonstration projects, and CCS Project Network. Furthermore, the end of 2011. Project Network the common consequently the commercialisation the European Energy Programme for Secondly, the CCS Directive needs challenges can be understood and of CCS, be achieved within the Recovery (EEPR) and the ETS-New to be transferred into national laws. addressed. ambitious timeframe for decarbonising Entrants Reserve (NER) are initiatives Through the CCS Directive the Fourthly, we need to start thinking Europe’s energy system and stabilising introduced to stimulate funding for Commission has provided EU Member about deployment of CCS after the the global climate. CCS technologies. States and industry with a regulatory technology is demonstrated on large The long-term economic viability of framework. It is of vital importance scale and becomes commercially Jan Panek is Head of Unit Coal and CCS will rely on markets that value that each Member State determines viable. Successful deployment of CCS Oil, Directorate-General Energy and CO2 emissions avoidance higher than how they will integrate CCS and in Europe will mean that sources of Transport, European Commission, the additional costs of capture, establishes the legal basis for storing CO2 emissions from power generation Brussels. THE ENERGY INDUSTRY TIMES - AUGUST 2009 Fuel Watch 17

Oil

Crude Oil Prices - 2009 Crude prices WTI Dated Brent Oman Dubai OPEC Basket Price/Barrel

$70.00

in correction $60.00

$50.00 but demand $40.00 $30.00

$20.00 to improve in $10.00

Date May 1 May 8 May 15 May 22 May 29 Jun 5 Jun 12 Jun 19 Jun 26 Jul 3 Jul 10 2010 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 regions – Europe and Japan. annual World Oil Outlook (WOO), 44.8 million b/d in 2020 and 56.1 Global demand for crude will not return However, the situation is forecast which forecast oil demand up to 2030. million b/d in 2030. By comparison, to turn around in 2010. Opec projects According to the WOO, theOECD demand is expected to go from to 2008 level until 2011 that world oil demand will turn destruction of demand brought on by 47.5 million b/d in 2008, to 45.5 Opec may make further cuts if price falls positive next year after two the global economic downturn means million b/d in 2010, 45.0 million b/d consecutive years of negative growth that demand for Opec oil will not in 2020 and 43.4 million b/d in 2030. to lower $50/b range and show a moderate increase of 0.5 return to its 2008 level of 31.2 million Meanwhile, Opec continues to face million b/d putting demand for 2010 b/d until 2013. The report forecasts present day reality. Earlier this David Gregory until the last three months of this year. at 84.3 million b/d. Most of the that Opec supply will reach 32.0 summer, with crude oil prices on the In the latest issue of its Monthly Oil demand growth will take place in non- million b/d in 2015, 37.4 million b/d rise and economic analysts talking of Prices for West Texas Intermediate Market Report, Opec commented on OECD countries, particularly China, in 2025 and 41.1 million b/d in 2030. ‘green shoots’ and improving crude oil on the New York Mercantile the rise in crude prices in June with building by 0.8 million b/d while Opec said in the World Oil Outlook economic indicators, Opec ministers Exchange have experienced a the onset of the summer driving demand in the OECD will continue that global demand for crude would were expecting crude prices to reach correction recently, falling from a season in the US, but noted that weak to contract, by 0.3 million b/d after not return to its 2008 level of 85.6 the “fair” price of $75/b months high of $72.68/b in mid-June to less demand and continuing increases in declining by 1.8 million b/d in 2009. million b/d until 2011. Global demand before they had anticipated. However, than $60/b by mid-July. Analysts have refined product stocks “capped the “The pace of the global economic is forecast to reach 87.9 million b/d analysts predict the end of the global for some time argued that the bullish sentiment.” recovery continues to be the main risk by 2013, 90.2 million b/d in 2015, downturn will be more of a U-shape fundamental laws of supply and Opec forecast in the report that crude for the outlook for next year,” Opec 95.4 million in 2020 and 105.6 million than the hoped for V-shape. demand could not support prices in oil demand in 2009 would average said in the report. b/d in 2030. Opec will hold its next scheduled the $70/b range. 83.84 million b/d compared with Demand for Opec crude is forecast Most future growth will occur in meeting on September 9 and what Despite efforts by Opec to cut back 85.49 million b/d in 2008, saying that to average 28.5 million b/d the report developing countries, the WOO course it decides to take depends on on production, supplies of crude oil “world oil demand is settling down said, down by 2.3 million b/d from forecasts, compared to the OECD the trend in prices between now and for the global market remain in line with the current world 2008. In 2010, demand for Opec oil countries where governments will be then. Fundamentals are still weak and abundant. It would not be a surprise economic situation.” Oil demand was is estimated to reach 28.1 million b/d, implementing measures to reduce the some Opec members have suggested to see crude prices continue to trend showing slight recovery in the US it down by 0.4 million b/d from the use of crude oil. Demand in that if the price falls to the lower downward through the third quarter said, but added that there is still no current year. developing countries is projected as $50/b range the group may decide to and not resume an upward course sign of recovery in the other OECD Opec has also recently released its averaging 33.0 million b/d in 2008, make further production cuts.

Gas Milestone agreement for Nabucco Despite the recent signing of an intergovernmental agreement, the Nabucco pipeline still faces a number of hurdles before it comes into operation, the most serious of which is securing a source of gas supply.

Mark Goetz demand to keep 15 per cent of the output of some 8 bcm/y. Nuri al-Maliki said Iraq would be stated openly for the first time that natural gas shipped through Nabucco, Azerbaijan has on a number of willing to supply Nabucco with 15 his country was ready to participate New impetus was given to the which has an initial design capacity occasions expressed its interest in bcm/y. Mr. Maliki was probably in the Nabucco project. Nabucco Gas Pipeline on July 13 of 31 billion m3 per year (bcm/y). shipping gas through Nabucco, but referring to gas coming from the But securing supplies from when the heads of state of five The agreement stipulates that the until now has been unable to commit. Akkaz field in western Iraq, but in Turkmenistan poses a multi-faceted governments participating in the pipeline will be capable of a reverse Meanwhile, Russia’s Gazprom has May this year, Austria’s OMV, leader problem. The first is Russia’s desire ¤8 billion project signed in Ankara flow that would allow shipments of been lobbying Baku to purchase the of the Nabucco consortium, and to have for itself the bulk of Turkmen an intergovernmental agreement gas from the EU partners to Turkey entire Shah Deniz Stage 2 output, Hungary’s MOL reached agreement gas exports. Gazprom has a contract laying the groundwork for the should a shortage in Turkey arise. It which it would likely ship to Europe with the Kurdistan Regional with Ashgabat to purchase as much construction and operation of the also states that the pipeline’s six through its proposed South Stream Government (KRG) on the as 80 bcm/y of the country’s gas as 3300 km natural gas pipeline. partners will have the right to reserve project across the Black Sea. South development of two gasfields with of 2010. Another problem is The leaders of Turkey, Austria, 50 per cent of the pipeline’s capacity. Stream is Russia’s alternative to the intention of exporting the gas to resolving the differences between Hungary, Romania and Bulgaria The remaining 50 per cent is to be Nabucco, which Russia downplays Europe through Nabucco. Turkmenistan and Azerbaijan over signed documents forming the contracted to third-party customers. because it has yet to secure sources Egyptian gas could enter Nabucco disputed offshore hydrocarbon Nabucco International Joint Venture The project still has any number of of supply. through the Turkish domestic deposits. A trans-Caspian gas Company and creating a common hoops that it must jump through Apart from Azerbaijan, Iran, Iraq, pipeline system once the Arab Gas pipeline would link up with the SCP, tax regime and unified tariff. before it comes into operation with Egypt and Turkmenistan could Pipeline is connected between Syria which begins at Azerbaijan’s Discussed for years, but delayed initial gas shipments in 2014-15. The supply gas to Nabucco under and Turkey. Sangachal terminal on the Caspian by political technicalities and most serious of which is securing a favorable circumstances. But the clincher for Nabucco would coast. questions over the source of supply, source of supply. Atop the list of Iran has the second largest gas be getting Turkmenistan to provide Another problem would involve the Nabucco pipeline is designed to potential suppliers is Azerbaijan, reserves in the world and although gas through a pipeline across the coming to terms with the unresolved deliver natural gas from the Caspian which currently exports gas to Turkey favors Iranian participation Caspian Sea. Turkmen President status of the Caspian Sea. Sea region and the Middle East Georgia, Turkey and Greece through at some point, Washington, which Gurbanguli Berdymukhammedov has Furthermore, both Russia and Iran through a route independent of the South Caucasus Pipeline (SCP) has been a strong supporter of stated on several occasions that his have expressed their opposition to Russia. from its offshore Shah Deniz Nabucco, has made it clear that Iran country is interested in developing hydrocarbon pipelines running across The signing of the governmental gasfield. Stage 2 of Shah Deniz is would not be welcome. multiple export routes and on July the Caspian Sea. agreement was made possible when due to come on-stream with a Iraq could be a major supplier in 13, the Russian newspaper Vedomosti Nabucco has passed a milestone, Turkey was persuaded to drop its production rate matching present the years ahead. Iraqi Prime Minister reported that the Turkmen leader but clearly still has a long way to go. THE ENERGY INDUSTRY TIMES - AUGUST 2009 18 Technology Floating in the wind

Located approximately 10 km south What is being claimed east of Karmøy in Norway is a wind turbine that could mark the start of a as the world’s first large new generation of offshore wind power plants. Construction of the scale floating wind Hywind project developed by StatoilHydro, was completed in June turbine is about to be this year and will see the operation of a Siemens SWT-2.3 MW wind turbine connected off the coast with a rotor diameter of 82 m – sited out at sea where the water depth is of Norway. The about 220 m. Typically, most offshore wind technology could open turbines are installed in water depths of 5 m-30 m. These turbines are fixed up many new in foundations on the sea bed. However, costs of such installations possibilities in the begin to escalate as water depth increases. Henrik Stiesdal, Chief offshore wind power Technical Officer of the Siemens Wind Power Business Unit notes: “The first market. Junior Isles projects we did were in water depths of 5-8 m. These used relatively simple concrete gravity dam foundations. This water depth is really too shallow for big turbines because you cannot manoeuvre the ships needed to install the turbines. But above 20 m, the cost of the foundation really starts to escalate and above 30 m, installation is very difficult. So there is a window for installing offshore turbines.” There are several factors that influence this escalation in costs. One factor is that wave height changes with depth. Deeper sea depths produce bigger waves. These waves cause The world’s first large-scale floating wind turbine is located approximately 10 km south east of Karmøy resonance in the structure and set the in Norway at a water depth of about 220 m structure in motion. This movement can be avoided by replacing the typical Stiesdal said: “We have looked at water. structure. This has been the main area foundation that is made from floating turbines for many years and The float pulls the entire structure in developing the project – to ensure monopiles, with a three-leg structure there have been many people with so deep into the water that the centre that the regulation stabilises the but these become very expensive. floating concepts that have wanted to of gravity is far below the surface. structure.” Stiesdal also points out that get into bed with us. But there are This prevents the wind turbine from The turbine has been pre- ultimately, suitable sites for offshore some challenges to doing floating wind rocking backwards and forwards in commissioned and (as of July 15th) wind projects will become limited. turbines. StatoilHydro gave us the rough seas. The centre of gravity can was scheduled to be connected to the “When considering other issues such confidence that they could address be set exactly by the ballast tanks. The grid at the end of July/beginning of as ship navigation and wildlife etc, at those challenges. Their concept came wind turbine is tied to anchors on the August 2009. Following start-up, the some point in time there will be limited closest to being cost competitive with sea bed with three flexible steel cables turbine will be tested for two years, available sea floor with the correct fixed foundations and required the to prevent it from drifting. The turbine with a number of instruments attached depth profile. Therefore, it would be least amount of optimisation.” is then lifted onto the flanged end and to record loads. This field testing will good to have the ability to go to depths According to Siemens, Hywind is fixed. “As long as you are not be crucial. of more than 30 m.” designed to be suitable for installation experiencing big waves, the A 3 m-high model has already been There are other reasons why floating in water depths between 120-700 m installation is as easy as if you were tested successfully in Sintef Marintek’s In the Hywind prototype wind turbines could be desirable. but it is not strictly the water depth on land,” commented Stiesdal. wave simulator in Trondheim. Stiesdal StatoilHydro relies on the “spar There are areas in the North Sea where that limits the installation; the limiting The Hywind project uses a turbine said: “We have done many computer buoy” concept, an underwater moving sand waves can cause the sea factor is the anchorage. Stiesdal that was designed for offshore use. simulations that produce data but in floating structure of steel and bed to shift considerably over the explained: “The structure floats when There are no special modifications. the end it can only be proven when concrete with ballast tanks – a lifetime of a turbine installation. This the water depth reaches about 100 m. “As with all offshore machines, the you have the data from a real method which has been used for could result in a scenario where the The floating structure is anchored to tower is specially designed to match [operating] machine. So there is an years for floating offshore rigs wind turbine is essentially left hanging blocks lying on the sea bed via several the foundation,” added Stiesdal. extensive testing programme aimed freely if the sea bed disappears. at comparing predictions with reality. “Sea currents dig away material from With the unsteady airflow of offshore any structure inserted in the sea bed. The biggest challenge is the movement of the structure winds and the wave movement, our To avoid this you have to conduct with the waves. Engineers therefore have to find prediction models may not be as scour protection which involves accurate as with fixed foundation building a rock structure around it to a way of eliminating or reducing any swinging machines.” prevent the sand being moved by the motion of the turbine In the beginning, the turbine will run sea,” commented Stiesdal. at moderate power output but this will The need for siting wind projects in cables. When the water becomes very The biggest challenge is the movement be gradually increased along with the deeper water will become more acute deep, the cable and anchor costs of the structure with the waves. operating weather window. The initial in countries such as Denmark where become very high. The cost of the Engineers therefore have to find a way operating wind speed is expected to water depths are shallow. Further, there electrical cable from the structure to of eliminating or reducing any be about 12 m/s. This will eventually could be greater exploitation of the sea floor also increases swinging motion of the turbine, which be increased to up to 25 m/s, which offshore wind in countries such as significantly. There is nothing magical consequently causes fatigue problems. is the normal shutdown wind speed. Norway, Italy and Spain that have about the 700 m figure, it may change This requires development of special Siemens says it is too early to assess deeper water. according to costs.” turbine regulation technology. The the potential market for floating wind StatoilHydro took the decision to In the Hywind prototype turbine blades have to be set in a way farms. “When we built our first build the project in the first half of StatoilHydro relies on the “spar buoy” to dampen out the movement of the offshore wind project in 1991, we said 2008 and is allocating in excess of concept, an underwater floating platform. Stiesdal explained: “It is it would be 10 years before we have NOK400 million ($64.25million) to structure of steel and concrete with similar to if you were on a swing. You a market. In reality, it was nine years; building and developing the pilot. It ballast tanks – a method which has can set the swing in motion or stop it the next project came in 2000. I think entered into a technology agreement been used for years for floating by your body movement. We make it will be the same in this case. There with Siemens under which offshore rigs. The floating structure the blades act in the same way as a will be a significant period of pilot StatoilHydro is responsible for the is essentially a 107 m (350 ft) long child on a swing.” projects first. The real challenge is underwater part of the system and steel pipe, with a bottom at one end There is also the possibility that the not the technology but more the new Siemens provides the mast and turbine. and a flange for the turbine tower at engineers could get it wrong and infrastructure needed to ship out large StatoilHydro, with experience in the the other. A temporary lid is placed accelerate the movement, and this, volumes of floating structures. But oil and gas industry, has experience on the open end so that it can be according to Stiesdal is the big we can say that this is a technology of floating structures and provided shipped as a floating pipe. At the site, challenge. “We have to ensure that we that could expand the amount of Siemens with the confidence to go the pipe is filled with ballast tanks so never get to the situation where we offshore wind energy that we can ahead with the Hywind project. that it up-ends to sit vertically in the create a stability problem with the exploit,” said Stiesdal. THE ENERGY INDUSTRY TIMES - AUGUST 2009

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To subscribe, email: [email protected] or visit: www.teitimes.com THE ENERGY INDUSTRY TIMES - AUGUST 2009 Final Word 20 Follow the smart money

e hear the term ‘smart grid’ development and deployment has to utilities should note, however, that the for combating climate change through almost as much as we hear come from the utility then no doubt benefit-to-cost ratio of comprehensive energy conservation, speeding up the Wswine flu (although perhaps slightly they will want to see an analysis of smart grid systems depends on what integration of renewables and less so in the UK). Countries around the return on investment before parting JA calls “a complicated mix of factors preparing for the widespread the world are catching the smart grid with hard-earned profit. (such as dwelling unit age and size) introduction of electric and plug-in bug. So are smart grids a smart and vary widely across utilities”. JA hybrid vehicles – should it ever Perhaps the most immediate drivers investment? Just before the DOE’s added that targeted, strategic happen. have been the need to accommodate Funding Opportunity Announcement, technology deployments significantly Utilities argue that the integration of Junior Isles intermittent sources of generation i.e. Jackson Associates (JA) released increase the benefit-to-cost ratios. It renewables and moving to a low wind and solar into the grid as well as results from what is claimed to be the also said that customer end-use hourly carbon economy will increase the cost reducing peak demand by actively first utility-detailed nationwide study load information should be used to of electricity to the consumer. managing consumer demand. But how of smart grid savings. JA is a Texas- ensure that economic benefits exceed Following the UK’s publication of its many utilities have done the maths to based US company that provides costs. strategy for a transition to a low carbon determine whether smart grids are utility customer databases, energy- The message appears to be that in economy last month, energy where the smart money is? efficiency analysis and programme most cases there will be considerable companies, unsurprisingly, welcomed Certainly, it would seem that many development and energy industry savings but there should be careful the government’s warning that energy of the major economies around the consulting. study before deploying smart grid bills would need to rise to pay for cuts world are convinced that it represents This study is said to be the first to technology. in CO2 emissions. a smart investment. apply individual utility customer end- With the spotlight on governments The UK government predicted that At the beginning of June, China said use hourly electric loads to evaluate to deliver on climate change targets, energy bills would need to rise by 8 it was developing a stimulus package smart grid costs and benefits. Data for it is no wonder that utilities are being per cent or £92 a year on the average for developing an intelligent power more than 800 000 residential and incentivised to make the necessary bill. The effect of the planned boost grid to help reduce costs for both commercial utility customers in the investments. to renewable energy alone would be utilities and consumers as well as 200 largest US utilities were applied With approximately $3.3 billion in much higher, adding about £249 to protect the environment. The plan is the average yearly bill to pay for the for State Grid Corporation of China, £100 billion investment needed, the leading grid operator, to build a JA said that total savings potential, after cost, mostly in wind farms, to hit major smart grid by 2020. was $48 billion for the 200 largest US utilities government targets. Also in June, Korea said that it would In May, the UK said that it planned have a nationwide smart grid in in the study. funding from the American Recovery to complete the roll-out of smart operation by 2030. JA also claims that it breaks new and Reinvestment Act of 2009, the meters to 26 million homes by 2020. Meanwhile in July, the 10 utilities ground in providing the first “bottom- SGIG’s stated purpose is to accelerate Fortunately, if the case of a certain that make up Japan’s Federation of up” analysis of utility smart grid the modernization of the US electric Ms Karen Gibson is anything to go Electric Power Companies said they systems by applying the MAISY transmission and distribution systems, by, the additional cost to the consumer would begin full-on development of Utility Customer Hourly Loads and to promote investments in smart as a result of more renewables may a smart power grid able to Databases. These databases have a grid technologies, tools, and be compensated for by the use of smart accommodate widespread solar power long history in evaluating energy techniques “which increase flexibility, meters. generation, aiming for completion by technology impacts including studies functionality, interoperability, cyber- A Presswire report said Karen 2020. of fuel cells, combined heat and power security, and operational efficiency”. Gibson, a 33-year old Nursery Across the Atlantic on June 25, the (CHP), storage, wind, flywheel and The DOE’s Funding Opportunity Manager from Northumberland, is an US Department of Energy’s (DOE) other technologies. Announcement (FOA) has cleared the npower customer who had a ‘smart Office of Electricity Delivery and The study, according to JA, applies way for applications to be submitted. pre-payment meter’ fitted in October Energy Reliability finally released load control and pricing programme According to the DOE, the first awards 2007. “I reckon I have saved around details of funding for its Smart Grid impacts directly to individual customer will be announced in October. £250 since I had it fitted a couple of Investment Grant Programme (SGIG). end-use loads such as air conditioning, Grants will be split up according to years ago because I am not wasting The DOE announcement is perfectly water heating, etc to determine utility- the size of the proposed projects, with as much energy as before. I know at timed. Although we are seeing level impacts. those under $20 million to get 40 per any given moment how much energy numerous plans for smart grid The economic indicators produced cent of the total funds, and larger I am using in pounds and pence and development there have been few from the study seem encouraging. JA projects between $20 million and $200 I pay for exactly what I use,” she said. studies on what they represent in terms said that total savings potential, after million to get the remaining 60 per On the strength of this and the study of a return on investment. cost, was $48 billion for the 200 largest cent. by Jackson Associates, smart With pressure to meet their targets US utilities and claimed that individual With this level of funding, investing technology should prove to be as good for renewables and energy efficiency, utility savings range from negative in smart grid technology makes an investment as Tamiflu. smart grids are an essential part of any savings to $3.2 billion. It found that economic sense for energy government plans. Yet this does not just one out of 10 utilities might lose companies. At the same automatically mean they are essential money with comprehensive smart grid time it will help to the plans of a utility or grid owner. deployments. utilities meet If the bulk of money for smart grid These are fairly comforting odds but government targets

“Mr Madoff, if you’re smart, you’ll tell this commission where exactly you DID invest ...!”