TEI Times July 2013
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THE ENERGY INDUSTRY July 2013 • Volume 6 • No 5 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES Special Lessons from little Supplement Britain Final Word Junior Isles analyses the London Array: offshore wind Is Britain smarter than the rest of problems of the elephant comes of age Europe on metering? Page 13 in the room. Page 16 News In Brief Anti-dumping duty escalates Improved coal EU-China tension The European Commission’s decision to impose an anti-dumping duty on Chinese-made solar panels looks set to start a trade war and creates market uncertainty. plant efficiency Page 2 Pakistan load shedding a government priority Converting existing thermal power can “keep climate plants to coal would help combat power shortages and bring down the cost of power generation, wiping billions off Pakistan’s circular debt. Page 6 goals alive” Van der Hoeven: Climate change has “quite frankly slipped to the back burner” of policy priorities UK debates market reforms The UK government’s plans to According to the International Energy Agency, improving coal plant efficiency is one of four policies reform the electricity market sector remain on track in spite of a fierce governments must adopt to get climate change efforts back on track. While the IEA’s proposals debate over decarbonisation targets. Page 7 for carbon dioxide emission reductions from coal plant are ambitious, industry argues they are achievable. Junior Isles Global dynamics drive The International Energy Agency burner of policy priorities. But the two-thirds of global GHG emissions, industry and transport; limiting the energy changes (IEA) says it is possible to “keep climate problem is not going away – quite the reveal a 1.4 per cent increase in 2012, construction and use of the least effi- Trends published in BP’s latest goals alive” without harming econom- opposite.” reaching a record high of 31.6 giga- cient coal-fired power plants; actions Statistical Review of World Energy ic growth if governments swiftly en- The report, which highlights the tonnes (Gt). to halve expected methane releases show how the world’s energy system acted four energy policies. need for intensive action before 2020, IEA Chief Economist Fatih Birol, into the atmosphere from the upstream adapts to global events and patterns. The call to governments came as the presents the results of a 4-for-2°C the report’s lead author said: “We iden- oil and gas industry; and implementing Page 8 IEA warned that the world is not on Scenario, in which four energy poli- tify a set of proven measures that could a partial phase-out of fossil fuel con- track to limit the global temperature cies are selected that can deliver sig- stop the growth in global energy-relat- sumption subsidies. increase to 2°C. nificant greenhouse gas (GHG) emis- ed emissions by the end of this decade Notably, it said that limiting ineffi- Market woes force Siemens Speaking at the press launch of its sions reductions by 2020, rely only on at no net economic cost.” cient coal-fired power plants delivers solar closure latest report in London last month: existing technologies and have al- In the 4-for-2°C Scenario, global more than 20 per cent of the emissions Siemens is to close its solar thermal ‘World Energy Outlook Special Re- ready been adopted successfully in energy-related GHG emissions are 8 reduction while helping to curb local business after failing to find a buyer. port, Redrawing the Energy-Climate several countries. per cent lower in 2020 than the level air pollution. In the IEA scenario, Page 9 Map’ IEA Executive Director Maria New IEA estimates for global ener- otherwise expected. The four policies the share of power generation from van der Hoeven said: “Climate change gy-related carbon dioxide (CO2) presented by the IEA are: targeted en- has quite frankly slipped to the back emissions, which account for around ergy efficiency measures in buildings, Continued on Page 2 Energy Outlook: Marine potential The race is now on to deploy full- scale marine devices at sea to prove the technology works and begin the China getting climate change effort back on track process of driving down costs. Despite recent pollution reaching lev- responsibilities for local air quality. “The most encouraging thing I find Development Commission (NDRC) Page 14 els that have caused public outcry, One of the mandates says heavy pol- in the current five-year plan of the said at the end of May: “I am sure China is taking positive steps to cut luters like coal-fired power plants and Chinese government is the energy in- China will have a total emission target emissions and is softening its stance on metal smelters must release detailed tensity improvement target, and the during the 13th five year plan.” Technology: Marrying the agreeing to a cap on greenhouse gas environmental information to the gen- push for renewable energies includ- It is the first time policymakers have internet with industry emissions. eral public. ing hydropower,” said Fatih Birol, spoken publicly about such a plan and The industrial internet combined Following some of the worse levels The announcement on air pollution Chief Economist at the IEA. this shift in policy could be an important with ‘big data’ analytics could have of air pollution recorded in the country came as China prepared to launch its Birol pointed out that emissions boost to talks on a global agreement to a tremendous impact on the power in recent years, last month China’s first pilot carbon market in Shenzen. It growth in the country halved in 2012 curb greenhouse gas emissions. industry. Cabinet announced new measures to is one of seven cities selected in 2011 compared to 2011. This is among the Jiang said that it was “very possible” Page 15 curb air pollution. The State Council to test out emissions trading before lowest rises in a decade, and marks the China would drop its longstanding op- approved 10 “tough measures to ac- deciding whether to launch a national increasing effectiveness of policies position to carbon caps for developing complish tough tasks”, the council scheme from 2015. designed to cut emissions and to im- nations before the UN climate talks in Advertise said in a statement. The Shenzen scheme will cover 635 prove energy efficiency. Paris in 2015. [email protected] These include a target to reduce pol- companies whose combined emis- China is also considering an out- China’s emissions cap would be lution emissions by at least 30 per cent sions were just over a third of the city’s right cap on carbon emissions in its linked to the existing cap on coal con- in heavy-polluting industries by the total in 2010. next five-year plan (2016-2020) and sumption. As part of its effort to cut Subscribe end of 2017 – a target that is more am- The International Energy Agency is studying what level would be emissions from coal fired plant, in [email protected] bitious than any in the past. (IEA) last month praised China for its appropriate. May the National Energy Administra- or call +44 208 523 2573 The State Council said local govern- role in getting the world back on track Jiang Kejun, a carbon policy re- tion proposed to ban imports of low ments should shoulder the general in its climate change efforts. searcher at the National Reform and quality coal. THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: [email protected] THE ENERGY INDUSTRY TIMES - JULY 2013 2 Headline News Continued from Page 1 renewables increases (from around 20 per cent today to 27 per cent in 2020), as does that from natural gas. Solar anti-dumping Speaking on the sidelines of the press conference Birol said: “Most of that 21 per cent [reduction] will come from India, China and East Asia. China is already doing a lot, having closed 70 GW [of inefficient coal plant] until 2011 and a further 8 GW in 2012.” duty escalates He added: “The US is also doing work; the EPA has already put new regulations in place. They have banned the building of new ineffi- cient coal fired power plants and there is now a discussion about ex- isting inefficient coal fired power EU-China tension plants.” Milton Catelin, Chief Executive, Anti-dumping duties on Chinese-made solar panels sold into Europe will create market World Coal Association said: “The uncertainty in the coming months, says Junior Isles IEA should be working with the coal industry and multilateral de- The European Commission’s decision Ministry, Dutch Minister of Foreign affect the European solar industry and Other industry observers essentially velopment banks to ensure the best to impose an anti-dumping duty on im- Affairs Frans Timmermans was quoted is against the interests of the global echoed this view. David Grindley of available technology is used… If ports of crystalline silicon photovoltaic as saying: “The European Commis- solar market,” said Ben Hill, President Savills Energy, a specialist in the field new coal-fired generating capacity wafers, cells, and modules originating sion’s decision to impose provisional of Trina Solar Europe. of solar park developments comment- added between 2000 and 2011 had in or consigned from the People’s Re- duties on solar panels from China goes Others argue, however, that the EU ed: “Although the first reading of the used best available technology, public of China looks set to start a trade against the principle of free trade and decision although regrettable, is justi- changes in anti-dumping tariffs on im- cumulative emissions of CO2 over war between the two sides.