THE ENERGY INDUSTRY August 2018 • Volume 11 • No 6 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES

Special Supplement Some like it hot Final Word The massive Samcheok Green Greenhouse gas emissions have reached Climate change means Power Project in South Korea an all-time high, yet some world leaders more heat waves and takes circulating fluidised bed seem reluctant to stand behind the green more solar, technology to the next level. push. TEI Times hears what more can be says Junior Isles. done. Page 14 Page 16

News In Brief Denmark sets new renewables target, as cost of Slowdown in clean offshore wind slides Offshore wind looks set to play a key role in Denmark’s recently agreed new target for renewables. Page 2 energy investment Argentina tenders first of seven transmission lines under PPP Argentina is continuing to make threatens climate investments in its power sector with the announcement of tender terms for a high voltage power line. Page 4 goals Australia seeks strategy to tackle rising energy costs Australia’s Federal Energy Minister Josh Frydenberg has indicated Birol: decline in investment for renewables and energy efficiency “is worrying” the coalition government could financially support new power The energy transition seems to have paused as investments in clean energy falls, according generation as part of a set of measures to tackle rapidly rising to the International Energy Agency’s latest World Energy Investment report. Junior Isles power costs. Page 6 The latest data published in the Inter- efficiency declined by 3 per cent in investment in renewables falling by While energy efficiency showed national Energy Agency’s World En- 2017 and there is a risk that it will nearly 7 per cent, nuclear investment some of the strongest expansion in Renewables rise in Germany ergy Investment (WEI) 2018 report slow further this year. in 2017 plummeted 45 per cent. 2017, it was not enough to offset the Renewable energy is continuing to reveals a “worrying” fall in clean en- The IEA’s figures show that al- “Such a decline in global invest- decline in renewables. Moreover, overtake fossil fuels as Germany’s ergy investment. though electricity investment has ment for renewables and energy effi- efficiency investment growth has main source of power as the country According to the report, renewable shifted towards renewables, networks ciency combined is worrying,” said weakened in the past year as policy continues its Energiewende policy. power investment fell to $298 billion and flexibility, expected output from Dr Fatih Birol, the IEA’s Executive activity showed signs of slowing Page 7 in 2017 from $318 billion in 2016, low carbon sources fell 10 per cent in Director. “This could threaten the ex- down. representing the biggest absolute drop 2017 and did not keep pace with de- pansion of clean energy needed to Michael Waldron, one of the re- SPIC building GT since the agency started keeping track mand growth. meet energy security, climate and port’s lead authors noted: “The fastest programme of clean power in 2000. This indicates that investment is not clean air goals. While we would need growing area was in energy efficien- Siemens says it will support China’s The report also finds that after sev- growing in a way that supports deep this investment to go up rapidly, it is cy. Although slower than in 2016, this goal of independently developing eral years of growth, combined global decarbonisation of the power system, disappointing to find that it might be and building its own heavy-duty investment in renewables and energy said the IEA. At the same time as falling this year.” Continued on Page 2 gas turbine technology through a memorandum with State Power Investment Corporation (SPIC). Page 9 Clean energy investment remains steady in Energy Outlook: Charging ahead Exciting new storage capabilities being developed for renewable first half of 2018 energy resources have the potential to dramatically transform the global Overall clean energy investment was fewer dollars spent per megawatt in- average of 24.4 U.S. cents per watt.” from India to the Netherlands and energy sector, as they deliver the steady in the first half of the year, stalled; and a cooling-off in China’s In its World Energy Investment Norway. capacity to balance electricity supply thanks to a strong second quarter for solar boom. These trends are set to 2018 report, the International Energy The news comes as the World Bank and demand. wind power investment, led by the US gather pace in the second half, says Agency also said that policy changes released figures that show it invested Page 14 and China, according to research BNEF. in China could result in a slowdown $20.5 billion during the 2018 fiscal company Bloomberg New Energy Justin Wu, head of Asia-Pacific at in investment in solar PV this year. year on projects which address the Technology: Three-way Finance (BNEF). BNEF, said: “On June 1, the Chinese In the first half of 2018, China in- impacts of climate change. This rep- storage breaks the mould Its latest figures show world invest- government released a policy docu- vested $35.1 billion in solar, down resents 32.1 per cent of all funding A new energy storage system ment in clean energy in the first six ment restricting new solar installa- 29 per cent from 1H 2017. However, and exceeds its target of spending at capable of supplying electricity, months of 2018 at $138.2 billion, tions that require a national subsidy, BNEF expects the full extent of the least 28 per cent of its finances on heating and cooling could shape the down just 1 per cent from the same with immediate effect. We expect this government-ordered cutback to be- tackling the problem by 2020. future of the thermal energy storage period in 2017. The second quarter, to lead to a sharp drop in installations come clear only from the second half “We have not just exceeded our cli- market. from April to June, actually saw a rise in China this year, compared to 2017’s of the year onwards. Its analysts see mate targets on paper, we have trans- Page 15 year-on-year of 8 per cent to $76.7 spectacular record of 53 GW.” a possibility that that world solar in- formed the way we work with coun- billion. Pietro Radoia, senior solar analyst at stallations in 2018 could fall for the tries and are seeing major transitions The first half of 2018 shows solar BNEF, added: “It will also mean over- first time on record. In 2017, they to- to renewable energy, clean and resil- Advertise investment down 19 per cent com- capacity in solar manufacturing glob- talled 98 GW, far more than for any ient transport systems, climate-smart [email protected] pared to the same period last year at ally, and yet steeper price falls. Before other technology, renewable or non- agriculture and sustainable cities,” $71.6 billion, with wind up 33 per the Chinese announcement our team renewable. said the bank’s Chief Executive Of- Subscribe cent at $57.2 billion. The slippage in was already expecting a 27 per cent The jump in wind power invest- ficer Kristalina Georgieva. [email protected] solar reflects two main developments fall in PV module prices this year. ment in the first half of 2018 came As a result, the bank will set new or call +44 208 523 2573 – significantly lower capital costs for Now we have revised that to a 34 per thanks to a stream of large project fi- targets at the December UN climate photovoltaic projects, and therefore cent drop, to an end-2018 global nancings from the US to Taiwan and conference in Poland.

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 - AUGUST 2018 2 Headline News

Continued from Page 1 was up 3 per cent. At the same time, however, renewable investment Denmark sets new was down by nearly 7 per cent. When you put energy efficiency and renewables together, which are two things that are critical to the clean energy transition, you find renewables target, as cost that this combined investment was down three per cent – this is after two years of increase.” The IEA also said there has been of offshore wind slides a 13 per cent decline in renewables for transport and heat, which is im- portant for the decarbonisation of n Plan for 2.4 GW of offshore wind sectors outside of electricity. This, Luter says improved methods of it says, is largely due to insufficient n MHI Vestas says “still room to go lower” on cost of energy developing and producing blades policy support. will help cut LCOE in offshore wind An important finding from the report is that electrification, a key Junior Isles 4300 to 1850. This means that onshore shows that costs to build and operate offshore wind, James Luter, Director part of the energy transition is wind in Denmark is becoming a repow- an offshore wind farm in the country of Production, MHI Vestas Offshore continuing. Offshore wind looks set to play a key ering market where old turbines are have declined by more than 30 per cent Wind said: “In 2014, we were saying The electricity sector attracted the role in Denmark’s recently agreed new replaced by state-of-the-art models. compared to previous projections. the cost of energy from an offshore largest share of energy investments target for renewables. Commenting on the plan for new The LCOE for a Danish offshore turbine was around £130/140 per in 2017, sustained by robust spend- At the end of June the government offshore wind capacity, WindEurope wind project is expected to have fallen MWh… now we are seeing bids of ing on grids, exceeding the oil and reached an agreement with all the par- Head of Advocacy & Messaging Joël to €46/MWh excluding grid and sys- around £57 per MWh and we believe gas industry for the second year in ties in the Danish parliament that will Meggelaars said: “It’s good to see that tem costs with a production start in there is still room to go.” a row. get Denmark to 55 per cent of renew- 2.4 GW will be added to Denmark’s 2020, the new calculations show. Speaking from the company’s lead In 2017, total investment in the able energy by 2030. This means all of growing offshore wind capacity. This Compared to previous assumptions, blade manufacturing site on the Isle of energy sector was about $1.8 tril- its electricity and heating needs will be is only a floor as two out of the three CAPEX is expected to have gone Wight, Luter said improved methods lion. This was led by the electricity covered by renewable energy sources. projects could become larger, poten- down by close to 40 per cent. Also, of developing and producing blades sector, which saw an overall invest- The deal includes new commitments tially bringing the offshore volume to improvement in operation and main- will play a key role in further reducing ment of $750 billion, sustained by for the build-out of offshore wind. 3 GW. But we would have liked to see tenance is expected to reduce OPEX the LCOE from offshore wind. investment in networks. It was the Three new offshore wind farms with a some of that ambition being frontload- by more than 20 per cent. At the same “If you look at other industries, such third consecutive year that energy capacity of at least 2.4 GW will be built ed. Denmark’s offshore build-out time, improvement in wind and pow- as car manufacturing, we’re still quite investment had declined, falling by in the next decade. The first of those comes to a halt in 2021. And in 2024 er-train design is expected to increase young in the whole maturity phase. So 2 per cent in real terms compared offshore wind farms will be tendered at the earliest the supply chain can get the amount of full-load hours of Dan- there’s a long way to go in terms of with 2016. in 2019-2020 and commissioned be- back to work.” ish offshore wind projects by 10 per cost reductions. There’s plenty we can “It was a smaller decline than in tween 2024 and 2027. Denmark has several offshore wind cent, giving a capacity factor of more learn from other industries,” he said. previous years, where we’d seen a In addition, DKK 4.2 billion ($657 farms in operation, approved or under than 50 per cent. Luter pointed out that prototyping of dramatic fall-off in oil and gas million) has been earmarked for tech- construction, including the 406.7 MW Increasing turbine size has also been the V164-8MW platform was a “big spending, partly related to the de- nology-neutral green energy auctions Horns Rev 3, the 605 MW Kriegers a key factor in the falling cost of off- leap forward”, one that has seen the cline in oil and gas prices as well in the period 2020-2024 where differ- Flak, and the Vesterhav Syd and Vester- shore wind. April this year saw the company rapidly grow its market share as falling costs,” said Waldron. ent technologies such as wind and so- hav Nord near-shore wind farms. installation of the world’ most power- in the offshore wind sector. He adds Last year the largest decline in lar compete to deliver power at the The plan to boost existing capacity ful single turbine – MHI Vestas’ that the joint venture between Vestas energy occurred in the electricity lowest price. comes as new data that the levelised V164-8.8 MW turbine – at Vattenfall’s and MHI will see the continued adop- sector, falling by 5 per cent, largely Future onshore wind deployment in cost of energy (LCOE) from offshore European Offshore Wind Deploy- tion of manufacturing techniques and due to a significant decline in in- Denmark will be supported through wind continues to fall. Last month the ment Centre (EOWDC) in Aberdeen, processes at the Isle of Wight facility, vestment in power generation. auctions. The government plans to re- Danish Energy Agency launched an Scotland. which will all contribute to lowering However, the fact that investment duce the number of wind turbines from updated LCOE calculator, which Commenting on the falling cost of costs. in the electricity sector is outpacing oil and gas is a good indication that electrification of the energy system is gaining momentum, said the Calls for clarity after renewable subsidies end next year IEA. Waldron cautioned, however: With all aspects of the UK’s Feed-In out that the current FiT scheme would FITs, is that solar is coming of age and “Post-subsidy could be a reality, but “We see this as a long term trend Tariff (FiT) for small and medium scale close in April 2019. The government while solar always makes great envi- in an energy market where nothing, tied to energy transition but the re- renewables due to close next March, committed to setting out its policy on ronmental sense it now makes eco- not even gas power stations, can be lationship is very close in terms of the renewables industry and potential post-2019 support for small-scale re- nomic sense for most investors without built without government support, it the numbers and it’s a trend that investors are urgently requesting clar- newables over a year ago but this has public subsidies given fair treatment is unrealistic to expect consumers, could easily reverse next year. ity on the policy framework going been repeatedly delayed, causing by government. businesses or developers to continue “The share of fossil fuels in en- forwards. huge uncertainty for companies in the “The bad news is that government installing small scale generation. This ergy supply investment actually Last month the government an- sector. has been crystal clear on what policy could be achieved by tax incentives, ticked upward from 58 per cent last nounced that the FiT, which supports RenewableUK expressed disap- measures will stop – even very basic market enablers, and planning or year to 59 per cent in 2017. This the deployment of small-scale renew- pointment at the announcement. Ex- rights to fair export payments – but they building regulations, but we are cur- was in stark contrast to a significant ables such as solar panels and small ecutive Director Emma Pinchbeck are frighteningly vague on what comes rently left in an unnecessary policy fall in previous years. Previously, wind turbines, is to close with no pol- said: “Confirmation that there will be next. There is real dismay that there is vacuum without any firm proposals this figure was up at around 68-70 icy to replace it. no replacement for the feed-in tariff is now a serious and needless policy gap put forward by government.” per cent, indicating that there has Alongside this announcement, the a major blow to small-scale renew- between the end of FiTs and the start The Anaerobic Digestion & Biore- been a pause in the shift towards Department for Business, Energy and ables in the UK. The government has of the new regime.” sources Association (ADBA) noted the investment in clean energy.” Industrial Strategy published a Call for known the FiT would be closing for This was echoed by James Court, that the decision also puts at severe The report observed that while the Evidence on potential new policies for three years and the fact that they are Head of Policy & External Affairs at risk the more than 300 AD combined private sector typically leads clean small-scale renewables. only now beginning the conversation the Renewable Energy Association, heat and power (CHP) plants cur- energy investment, governments are The FiT was established in 2010 and about new policies is far too little, far who said that “positive words” from rently in the planning pipeline. increasingly playing a more impor- provides payments to owners of small- too late for many companies.” the government about renewables has Charlotte Morton, Chief Executive tant role in terms of driving invest- scale renewable generators at a fixed The news is expected to hit the solar to be “backed up by good deeds”. of the Anaerobic Digestion & Biore- ment across the entire energy sector. rate per unit of electricity produced, industry particularly hard. Subsidies “While nobody in the industry was sources Association (ADBA), The IEA noted that the share of in- ensuring that the cost of installation is have helped the industry to flourish and expecting an 11th hour reprieve for the stressed: “It is vital that the govern- vestments by state-owned enter- recouped over the lifetime of the gen- bring down costs. According to the Feed-in Tariff, the removal of the ‘ex- ment rethinks its baffling decision to prises (SOEs) in oil and gas, and erator. As the cost of renewables has Solar Trade Association (STA), an av- port tariff’ for new projects will lead have no new low-carbon electricity thermal power generation was “more plummeted over the past eight years, erage domestic solar system cost £12 to the truly bizarre situation where con- levies until 2025, which risks creating resilient” than the private sector. this fixed rate payment has fallen by 000 in 2010; today it is nearer £5000. sumers who own technologies such as a valley of death that small-scale tech- Waldron said: “The private sector up to 90 per cent. Chris Hewett, CEO of the STA said: solar will give electricity they don’t nologies such as AD could easily fall plays a greater role in cleaner sourc- The 2015 Feed-in Tariff review set “The good news, as we look beyond consume to the grid for free. into.” es of investment – renewables and energy efficiency – but even in this broad category we saw a bit of an uptick in the role of SOEs in terms EU programme delivers superconducting cable breakthroughs of driving investment.” This says the IEA, was partly due An international workshop in La Spe- project funded by the European Union ductor, which is very economical to demonstrators to products in the en- to the role of China and the increase zia, Italy hosted by ASG Supercon- in the energy field in the last decade. produce. ergy sector will be faster and targeted in solar PV in the country. As Chi- ductors and co-organised by Nexans Project leaders said that for the first Giovanni Grasso, Sales and Business to customers’ needs.” na accounts for more than 40 per and IASS Potsdam in July revealed time a high-voltage superconducting Development Manager Columbus Su- The next step for the widespread use cent of global investment in solar that several breakthroughs have been cable system has been designed that perconductors, said: “The reliability of of this technology, according to the PV, its policy changes have global achieved within Demonstration No 5 operates with direct current. All exist- our magnesium diboride wires has al- project team, would be to develop test- implications. This confirms past of Best Paths (‘BEyond State-of-the- ing superconducting projects only use ready been demonstrated by a number ing guidelines for high-voltage direct IEA reports that have highlighted art Technologies for rePowering Ac alternating current. of full-scale prototype devices, such as current superconducting cables to- the critical importance of policies corridors and multi-Terminal HVDC A key innovation also revealed was MRI systems, induction heaters and gether with a consortium of manufac- in driving investment in renewable Systems’). that the cable is manufactured using fault current limiters… Thanks to proj- turers to ensure safety and quality energy. Best Paths is the largest research magnesium diboride as a supercon- ects like Best Paths, the transition from standards. THE ENERGY INDUSTRY TIMES - AUGUST 2018 3

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Siân Crampsie said that applicants in the tender must add between 14 GW and 18 GW of In June, Argentine energy group Argentina’s Ministry of Mines and have experience in the construction of unconventional renewable energy Genneia SA said it had closed a $131 Energy for these projects in January Argentina is continuing to make substations and power lines of over capacity and reach 25 per cent gen- million project financing for two wind 2017. The firm said that the financing investments in its power sector with 300 kV, acquired either in Argentina eration from unconventional renew- projects with a combined capacity of involves Denmark’s export credit the announcement of tender terms for or abroad. ables by 2030. about 78 MW. agency EKF, which provided the ma- a high voltage power line. Transmission projects must be up The government says that the growth The financing covers the 50 MW jority of the senior debt, Dutch devel- The project would be the first trans- and running within 33 months from in renewables means that the coun- Villalonga project in the province of opment bank FMO, and Latin Ameri- mission line tendered under the new the signing of a PPP contract while try’s transmission and distribution Buenos Aires and 28.35 MW Chubut can development bank CAF, which Public Private Participation (PPP) operation and maintenance services grid will require reinforcing, and so it Norte in the province of Chubut that participated with long-term uncov- scheme and would see the construc- will be provided for up to 15 years. plans to tender seven 500 kV trans- were awarded to Genneia as part of ered loans. tion of the 490 km, 500 kV Rio Dia- According to Escenarios Energé- mission line projects in the short term. the first round of Argentina’s Reno- Japanese bank SMBC provided mante-Charlone line in the centre of ticos 2030, energy scenarios pub- The seven transmission line projects vAr renewable energy auction long-term financing under an EKF the country. lished by the Ministry of Energy in would total 2175 km in length and programme. cover facility and acted as a global The Ministry of Finance and Energy December 2017, Argentina expects to represent $2.2 billion of investment. Genneia signed the contracts with coordinator for the deal. SCE US advances SMR expands EV development programme

The US government is seeking to fur- to advance the licensing and design Nuclear Energy (HGNE), Bechtel and ther development and innovation in for its SMR in order to meet a com- the Massachusetts Institute of Tech- the small modular reactor (SMR) mercial operation date of 2026 for its nology (MIT) to examine ways to sector with funding for several key first plant. DOE has also awarded simplify the reactor design, reduce projects. $400 000 to Columbia Basin Consult- plant construction costs, and lower The US Department of Energy ing Group to develop a pre-conceptu- operations and maintenance costs for (DOE) has awarded funding to NuS- al design and preliminary cost esti- the GEH BWRX-300, a 300 MWe cale, GE Hitachi and Columbia Basin mate for a lead-bismuth SMR, and small modular reactor. Consulting Group for research and $1.925 million to GE Hitachi Nuclear Specifically the project partners will development in advanced reactor de- Energy to reduce the costs of its look at reducing costs through elimi- sign and demonstration. BWRX-300 SMR. nation of Loss of Coolant Accidents The projects are part of a wider fund- NuScale is aiming to build its first (LOCAs), the use of an embedded ing announcement last month by the plant at the Idaho National Laborato- (below grade) design and construc- DOE covering a total of $20 million ries. It became the first SMR design to tion and the use of pooled off-site re- for nine nuclear projects, and follows complete the Nuclear Regulatory sources that can be applied simultane- a similar funding award for nuclear Commission’s phase 1 design review ously at multiple sites. energy announced in April. in April 2018. The latest funding will GE Hitachi estimates that the Further funding announcements are support completion of the indepen- BWRX-300 will require up to 60 per expected in 2018 and over the next five dent verification and validation licens- cent less capital cost per MW com- years as part of efforts by the US gov- ing report, completion of the reactor pared to other water-cooled SMRs or Southern California Edison (SCE) California’s Air Resources Board ernment to support advanced reactor building design optimisation, and existing large nuclear designs. If these says it is ready to support the growth (ARB) recently said that the state has development and establish domestic level sensor prototype testing. savings can be achieved, the BWRX- of electric vehicles (EVs) in the US cut its greenhouse gas emissions to capabilities in the US nuclear sector. For its project, GE Hitachi said it 300 can become cost competitive with state of California. below 1990 levels for the first time. The latest funding award includes would bring together a team consisting power generation from combined The utility has proposed a $760 mil- According to the ARB, emissions in $7 million from the DOE for NuScale of Exelon Generation, Hitachi-GE cycle gas and renewables. lion programme to support the instal- California have been reduced by 13 lation of 48 000 EV charging ports per cent since their 2004 peak, equal over four years. to taking 12 million cars off the road. The programme would follow on At the same time, its economy, now from the firm’s Charge Ready pilot the fifth largest in the world, grew by scheme, which it launched two years 26 per cent. New York plans offshore ago, and under which it installed more Under a 2006 law passed by the then than 1000 EV charging ports. Governor Arnold Schwarzenegger, “Achieving California’s ambitious California must reduce its emissions goals for reducing air pollution and to 431 million metric tons by 2020 – wind solicitation harmful greenhouse gas emissions the same as they were in 1990. Data will require 7 million electric cars on released by the ARB shows that as of New York state is likely to make 1.5 GW energy storage roadmap de- goals, this investment has the potential California highways by 2030,” Caro- 2016 the level was at 429 million awards of up to 800 MW of offshore signed to help the state build its clean to create thousands of jobs and fuel a line Choi, SCE senior vice president tons. wind capacity in 2019. energy economy. $6 billion industry for New York as it for regulatory affairs, said in a state- “California set the toughest emis- The New York State Energy Research New York is aiming to develop 2.4 combats climate change.” ment. “Taking Charge Ready to the sions targets in the nation, tracked & Development Authority (NYSER- GW of offshore wind by 2030, capi- Through the solicitation, NYSER- next level will allow SCE to develop progress and delivered results,” said DA) says it will issue a solicitation for talising on the falling costs of offshore DA will procure Offshore Wind Re- charging infrastructure needed to sup- California Governor Jerry Brown. offshore wind energy in the fourth wind achieved in Europe. newable Energy Certificates (ORECs) port a big portion of those cars.” “The next step is for California to cut quarter of 2018. “This action represents another ma- from awarded facilities. Charge Ready will increase the avail- emissions below 1990 levels by 2030 The move is expected to jump-start jor step toward establishing a clean Each electric utility and other third- ability of EV charging stations where – a heroic and very ambitious goal.” the state’s offshore wind industry, and energy future that is secure, reliable party suppliers of electricity serving people park their cars for extended The greatest falls were seen in the could be followed a year later by a and cost-effective,” Governor Cuomo retail customers in New York will sup- periods of time, like workplaces, cam- electricity sector, which has reduced second solicitation. said. “Robust offshore wind develop- port these new offshore wind resourc- puses, recreational areas and multi- emissions by 18 per cent, largely due It follows the unveiling by New York ment is not only critical to meeting our es through the purchase of ORECs unit dwellings. to the growth in renewable energy. Governor Andrew Cuomo in June of a clean energy and carbon reduction from NYSERDA. THE ENERGY INDUSTRY TIMES - AUGUST 2018 5

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Event Website: http://powertrends.leverageinternational.com THE ENERGY INDUSTRY TIMES - AUGUST 2018 6 Asia News Bangladesh gets moving on big power projects

n Rooppur II granted licence n Agreements signed for 6000 MW of gas fired plant

Syed Ali which started in 2017, with commer- The development of the land for the 25 per cent and GE 20 per cent. power plant will be the first of its kind cial launch expected in 2023. project is estimated to cost $1.6 billion The deals come on the heels of an in Bangladesh, vastly increasing the Bangladesh is moving forward with Bangladesh also signed two inter- and the power plant will cost $2.8 bil- announcement in late June by the availability of efficient and cleaner plans to build several power plants governmental and inter-agency agree- lion, according to details of the memo- Asian Development Bank (ADB), energy,” said ADB Energy Specialist that will add thousands of megawatts ments with India, under which India’s randum of understanding signed in which agreed to provide Bangladesh Aziz Yusupov. to the grid. Global Centre for Nuclear Energy Dhaka. with a $500 million loan to help build Bangladesh faces a major challenge ASE Group of Companies, a part of Partnership (GCNEP) will provide GE also signed a separate memoran- a state-of-the-art 800 MW gas fired in providing modern and affordable Rosatom State Atomic Energy Corp training and consulting services for dum of understanding with Summit, power plant in Khulna. Part of the loan energy, while suffering from recurring (Rosatom), announced that construc- the project’s implementation. the largest private power producer in will also be spent linking the plant to generating capacity shortages in the tion work for the second unit of the Granting of the licence for Rooppur Bangladesh, to join a joint venture al- natural gas and power transmission power sector, ADB said. Rooppur Nuclear Power Plant (RNPP) was one of several major announce- ready planned by Summit and Japan’s facilities. In fiscal year 2017, the peak hour will start soon, after the Bangladesh ments last month that will enable the Mitsubishi Corporation for a $3 billion The total cost of the project is $1.14 demand was estimated at 10 400 MW Atomic Energy Regulatory Authority country to substantially boost its in- power project. Summit said the joint billion, with the Islamic Development but the power generation capacity was (BAERA) granted a licence to the Ban- stalled capacity. investment is the largest FDI attracted Bank contributing $300 million and just 9479 MW. gladesh Atomic Energy Commission Also in July, the Bangladesh Power by any Bangladeshi private company. the government contributing $338.5 The net peak power demand is ex- in July. Development Board (BPDB) signed a Under the agreement Summit, Mit- million. The project is due to be com- pected to exceed 13 300 MW by 2020 Rosatom is supplying two 1200 MW deal with GE to build a 3600 MW LNG- subishi and GE will build a 2400 MW pleted by the end of June 2022. and 19 900 MW by 2025, as existing VVER nuclear power plants to Ban- based power plant on the southeastern power plant. Summit will hold 55 per “Amid the rising demand for energy power generation facilities gradually gladesh, construction of the first of island of Moheshkhali in Cox’s Bazar. cent equity while Mitsubishi will take in a growing economy, the Rupsha retire and need replacing. Australia seeks strategy to tackle rising energy costs South Korea’s Australia’s Federal Energy Minister renewable energy or battery storage. assets. In NSW, where networks have Josh Frydenberg has indicated the co- Prime Minister Malcolm Turnbull been privatised, the government should alition government could financially pushed back against pressure to subsi- pay consumers a rebate to “offset the support new power generation as part dise coal, arguing that backing one impact of over-investment” in net- of a set of measures to tackle rapidly technology over another is a recipe for works, it stated. green rising power costs. higher power prices. The ACCC said governments were The Australian Competition and The ACCC report, which estimates responsible for “policy failures” over Consumer Commission (ACCC) has electricity bills could drop up to 25 per many years at all stages of the supply recommended the government under- cent for the average household if the chain, including selling or merging write new power plants to help com- report’s 56 recommendations are all ownership of power plants, lax regula- power plan panies that have not been able to obtain implemented, received support from tion to contain network costs and a lack financing to build projects. Turnbull. “Australians are crying out of certainty on emissions reduction. Frydenberg said the competition for an energy policy that is focused on It also criticised “excessively gener- watchdog had identified a failure in them,” he said. ous” consumer subsidies for solar in- the market but stressed the ACCC’s The report states that average an- stallations and the effects of the renew- takes shape report had not favoured any particular nual annual residential power bills able energy target which had technology. have increased by $426 in the decade “distorted investment” toward inter- “What they’re saying is the govern- to 2017-18, with the biggest causes mittent power sources “in a way that South Korea’s Ministry of Trade, 48-month long Large-Capacity Off- ment needs to step in here to provide being network costs (35 per cent), was indifferent to the ability to provide Industry and Energy (MOTIE) has shore Wind Power System Develop- some sort of assurance,” said Fryden- wholesale electricity prices (22 per energy to the market when demand announced plans for setting up large- ment project worth KRW 55 billion berg. “This is something that does have cent), environmental policies (20 per requires it”. scale offshore wind farms as it targets ($49 million). a lot of merit and we’ll consider it.” cent) and increased retail margins (16 The ACCC said rooftop solar subsi- expanding the country’s offshore The turbine will be able to generate Some Nationals and Liberals have per cent). dies should be axed and the states wind capacity as part of its Renew- up to 8 MW at an average wind speed claimed the recommendation is vin- It recommended that government- should take on the cost of the solar able Energy 3020 Implementation of 10m/s and will have a utilisation rate dication for their push to build new owned networks in Queensland, Tas- feed-in tariffs to ease the burden of Plan. of 30 per cent or higher even when the coal fired power plants. But Fryden- mania and Essential Energy in NSW green power schemes that cost house- Offshore wind accounts for 12 GW average wind speed is 6.5m/s, Doosan berg said it could include coal, gas, should write down the value of their holds up to $170 a year. of the total 48.7 GW of new renewable said. capacity proposed in the Implementa- Such developments are all part of the tion Plan, according to MOTIE. MO- government’s policy to wean the coun- Renewables investments surpass fossil fuels TIE also said that in the short term it try off fossil fuel and nuclear and shift plans to build up to 500 MW in small to renewable sources for power. and medium-sized offshore wind Notably, last month Korea Western in India for first time farms. Power Co., Hanp Inc., KB Securities Investment in renewable power gen- average size of awarded solar PV numbers). Cumulative solar installa- South Korea officially opened its first Co., Chungcheongbuk-do provincial eration surpassed investment in ther- projects in auctions rose by 4.5 times tions at the end of June 2018 reached commercial offshore wind farm in No- government, and Jincheon-gun office mal power generation in India last year in emerging markets. 24.4 GW, representing 7.03 per cent vember 2017. The Tamra offshore signed a business partnership agree- for the first time, according the Inter- The latest figures from Mercom of the total installed power capacity wind farm comprises ten 3 MW Doo- ment to build a green energy power national Energy Agency (IEA). Capital revealed that renewable energy in India. san wind turbines installed about 0.5-1 plant that will host the world’s largest According to the IEA’s World Energy capacity additions continue to increase The numbers were confirmed by con- km offshore Geumdeung-ri on Jeju capacity 80 MW fuel cell power plant Manilla cityscape Investment 2018 report there was a in India, and accounted for 20.93 per sultancy, Bridge to India, which said Island. The project will serve as a fore- inside Hanp’s 27 000 m2 manufactur- global fall in investment in the electric- cent of India’s capacity mix at the end India’s total solar power generation runner to developing projects with ing site in Jincheon. ity sector, with much of the slump at- of June 2018. capacity hit 24.5 GW by March 31, larger turbines. Once the fuel cell power plant begins tributed to a decline in coal fired proj- According to Mercom’s India Solar 2018, when its fiscal 2017/18 ended. At the end of June, Doosan Heavy operations, it will be able to produce ects in China and India. Project Tracker, in the period from It said 87 per cent was utility-scale Industries & Construction was chosen 656 GWh electricity, which can meet The report noted, however, that it April to June 2018, solar installations solar and the rest was rooftop and off- as the main contractor to develop an 8 the electricity needs of about 240 000 was a record year for solar PV as the totalled about 1.4 GW (preliminary grid systems. MW offshore wind turbine within a households. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Europe News 7

Renewables rise in Germany n Green growth puts pressure on grid system n More tenders needed to reach goals

Siân Crampsie system for periods of low renewables cent to 12.6 per cent, and that from Germany’s new coalition govern- and the coalition government needs to output. lignite decreased slightly, from 22.9 to ment has given up hopes of meeting its hold additional tenders for offshore Renewable energy is continuing to This problem will intensify as more 22.5 per cent. The use of gas dropped climate target of reducing carbon emis- wind energy as soon as possible. There overtake fossil fuels as Germany’s coal plants close, and when Germany’s by more than one percentage point to sions to 40 per cent by 2020. It now should also be a rapid increase of the main source of power as the country last nuclear plant closes in 2022. 12.3 per cent of the gross power pro- expects to limit emissions to 32 per expansion paths for all renewables, continues its Energiewende policy. According to BDEW, renewable duction mix, while that of nuclear en- cent, compared to 1990 levels, due to VDMA said. German industry group BDEW said energy sources increased their output ergy grew by one percentage point to unexpected economic and population Germany has 5387 MW of offshore last month that renewable energy gen- by 10 per cent between the first half 11.3 per cent. growth. wind capacity in operation, and a fur- eration passed an important milestone of 2017 and the same period one year In June, Germany’s government In July VDMA Power Systems said ther 1944 MW under construction, half in the first half of 2018, becoming the later, raising their share in the power launched a coal exit commission, that the German government’s targets, of which is expected to be on line by single largest power source ahead of mix from 32.5 to 36.3 per cent in 2018. tasked with managing the definite which also include covering 65 per the end of 2018. coal in the country’s gross power pro- Onshore wind power saw the biggest phase-out of Germany’s coal plants cent of the country’s power generation Germany’s transmission system op- duction mix. increase of all renewable sources, without causing major economic dis- from renewable energies by 2030, erator (TSO) TenneT has also called However the group warned that the bringing its share in output up from ruptions in the affected regions. One could be attained if it committed to for an “optimisation” of Germany’s figures show that an accelerated power 12.5 per cent to 14.7 per cent in one month later, parliament passed an adding more offshore wind energy to offshore wind sector with an addition- grid expansion in Germany is “more year. amendment to the Atomic Energy Act the power mix. al capacity auction and the linking of necessary than ever before”, and that Power generation from hard coal approving the accelerated phase-out of According to VDMA, energy policy wind farms in the German North Sea the country still lacks a reliable backup dropped significantly from 15.6 per nuclear energy. in Germany has come to a “standstill” to the Dutch grid. Long-awaited UK warned on RESS approved nuclear policy in Ireland n First auction in 2019 A body of independent advisors has 50 per cent of electricity comes from pipe-dream as little as a decade ago. cautioned the UK government against renewables in 2030. But they need to act now to realise the n Contracts based on floating FiP rushing to support multiple new nucle- The assessment report came just days full potential of what can be ar power stations so that it can be flex- before National Grid published its Fu- achieved.” mechanism ible in the future over low carbon en- ture Energy Scenarios (FES) report, a National Grid’s FES report suggests ergy choices. document that examines how the that reaching the UK’s carbon targets Renewable energy developers in Ire- technologies, it will do so in a The National Infrastructure Com- evolving energy landscape in the UK by 2050 would require an installed land will be able to move forward with competitive, cost effective frame- mission (NIC) has published the might look in 30 years. offshore wind capacity of over 40 GW. shovel-ready projects after the gov- work,” said Naughten. “The use of country’s first ever National Infra- The FES report suggests that the UK There would also be over 33 million ernment approved a long-awaited certain ‘levers’, such as near term structure Assessment, and says that would meet its 2050 carbon target if EVs on the road by 2038, and wide- renewable energy support scheme delivery dates and ‘single technology switching to greener forms of energy rapid decarbonisation is achieved spread use of hydrogen in the commer- (RESS). caps’, will accelerate the broadening need not mean higher energy bills for through, for example, the rapid up- cial transport sector. Its analysis also Ireland’s Minister for Communica- of the renewable technology mix, par- consumers, and that there is a “golden take of electric vehicles, renewables notes the importance of energy storage tions, Climate Action and Environ- ticularly in light of falling costs for a opportunity” to decarbonise the UK’s growth as well as improved energy and interconnectors linked to other ment, Denis Naughten, announced in number of renewable technologies.” energy systems. efficiency. electricity markets. July that he had secured Cabinet ap- The government has proposed auc- The NIC notes in its assessment that Chairman of the National Infrastruc- “Market development, new tech- proval for the scheme and would now tioning up to 1000 GWh in the first after Hinkley Point C, the government ture Commission Sir John Armitt said: nologies and new ways of designing seek State Aid approval from the EU. auction, with no technology caps. Suc- should only agree support for one “Whether for cooking, lighting, keep- and operating networks will be needed He added that the RESS would en- cessful projects will be awarded float- more nuclear plant before 2025, and ing homes warm or electric cars on to address the operational challenges courage community participation ing feed-in premium (FiP) contracts, that investment should be directed the road, where the UK’s energy that arise,” National Grid said. while meeting the government’s pol- where payments are made to genera- into renewable technologies such as comes from will need to change radi- Under the Climate Change Act 2008, icy objective of increasing technology tors based on generation output, a wind and solar. cally over the coming decades if the the UK must reduce greenhouse gas diversity and energy security. strike price and a reference market It has also recommended that the UK is to meet its legally-binding cli- emissions by 80 per cent from 1990 The new RESS will be based around price. government sets out clear dates and mate change targets. levels by 2050. competitive auctions, the first of Ireland is at risk of not meeting its budgets for future renewables auc- “If we act now we have a golden op- n The UK government has rejected the which will be held in 2019 and aimed 2020 renewable energy targets and the tions, and that efforts in energy effi- portunity to make our country greener, possibility of awarding funding to the at getting shovel-ready renewable government has been criticised for ciency should be ramped up. and protect the money in the pockets proposed 320 MW Swansea Bay tidal energy projects on-line as quickly as delaying the implementation of a new Currently, around 30 per cent of the of consumers long into the future – lagoon project in Wales because it possible. renewable energy support mecha- UK’s electricity comes from renew- something few of us expected to be would not meet the requirements for RESS auctions will be held at fre- nism. Ireland’s Solar Energy Asso- able sources like wind and solar pow- able to do. value for money. Developer Tidal La- quent intervals and will support solar ciation (ISEA) says that up to 2 GW er – up from 12 per cent only five years “Ministers can seize this chance by goon Power is developing a total of six and offshore wind. It will provide for of solar energy capacity could be de- ago. The National Infrastructure As- investing in renewables and other low- tidal schemes around the UK and had a renewable electricity ambition of up ployed by the end of 2020 as there is sessment recommends that the gov- carbon technologies so they become approached the government for a con- to 55 per cent by 2030. currently 600 MW of PV capacity ernment take steps to push this even the main players in our energy system tracts for difference (CFD) agreement “While the auction approach will with planning consent and a further further and ensures that a minimum of – something that was considered a for Swansea. provide a route to market for multiple 1.4 GW in the planning system. THE ENERGY INDUSTRY TIMES - AUGUST 2018 8 International News UAE nuclear units reach milestones n Unit 1 obtains licence but faces delay n Barakah 89 per cent complete

The United Arab Emirates is gearing major concrete pouring, installation of initially planned 2017 startup. In a statement in July, ENEC added been achieved as a result of our exten- up to start operating its first nuclear the turbine generator, and the internal The delay is the second to affect the that construction crews will begin tran- sive collaboration with our Prime Con- energy plant. components of the reactor vessel (RV), $20 billion project. ENEC said that its sitioning from Unit 3 to Unit 4, taking tractor and Joint Venture partner, the The Emirates Nuclear Energy Cor- paving the way for the commence- decision to push back commercial op- with them the lessons learned during Korea Electric Power Corporation poration (ENEC) said in July that it ment of testing and commissioning. eration was taken after a “comprehen- their construction of Units 1, 2 and 3. (KEPCO), as well as sub-contractors has achieved “a series of significant Unit 1 is continuing to undergo com- sive operational readiness review” The completion of major construc- such as the Hyundai-Samsung Joint milestones” in the construction of Unit missioning and testing, and also re- conducted in May. tion work on Unit 3 comes approxi- Venture (HSJV),” said Eng. Mohamed 3 at the Barakah nuclear power plant, quires an operating license from the ENEC says that as of the end of May mately one year after the completion Al Hammadi, Chief Executive Officer while Unit 1 at the project has received UAE’s Federal Authority for Nuclear 2018, the construction completion of of the similar work on Unit 2, and two of ENEC. an electricity generation licence from Regulation to get the go-ahead for Unit 2 is more than 93 per cent, Unit 3 years after the completion of the same When fully operational, the four Ba- the Department of Energy. startup. is more than 83 per cent, and Unit 4 is work on Unit 1, “and demonstrates the rakah reactors will produce 5600 MW ENEC said in a statement that it has ENEC says that Unit 1 is likely to more than 72 per cent, while the over- benefits of building four identical units of electricity, around 25 per cent of the successfully completed the major con- enter operation at the end of 2019 or all construction completion is more at the same time”, ENEC said. UAE’s needs, according to the energy struction work at Unit 3, including beginning of 2020, later than its than 89 per cent. “These construction milestones have ministry. Egypt boosts Morocco completes capacity Khalladi wind farm

The inauguration of a 120 MW wind Development (EBRD) in collabora- Abunayyan said that Morocco’s ener- with coal farm has helped Morocco move closer tion with the Clean Technology Fund gy sector offers attractive investment to its gaol of energy independence, ac- (CTF), and the Moroccan BMCE opportunities due to a well-established cording to developers. Bank of Africa (BMCE). regulatory framework put in place by Saudi Arabia-based ACWA Power The wind farm is one of the first the Moroccan government. He added has officially launched the Khalladi private renewable energy projects in that the firm has already delivered the wind farm in Tangier, and says that the the country developed under a renew- NOOR I solar plant (160 MW), and and wind facility will help Morocco to reduce its able energy law that allows private has a series of other investments in energy import bill and conserve for- producers to sell electricity directly to construction in the country. eign currency. clients connected to the high voltage n The government of Tanzania has Egypt is continuing to attract major operations temporarily when they The Khalladi wind farm is located and medium voltage grid. The Khal- licensed a subsidiary of Australia’s investors to its electricity sector as it pass. at Jbel Sendouq, about 30 km from ladi project will sell its output to sev- Windlab to build the 300 MW Mi- looks to build new generating capac- Another major wind farm is also in Tangiers and represents an investment eral large industrial companies. ombo Hewani wind farm. The $300 ity to keep pace with demand. the pipeline in the Gabal El-Zeit area. of AED1.7 billion ($170 million). The Morocco is implementing an ambi- million project will be the first wind A consortium comprising Shanghai In March, the Egyptian cabinet signed project was financed entirely by pri- tious strategy aimed at producing 42 farm in the country. Windlab Develop- Electric Group, Dongfang Electric a deal with the Egyptian Electricity vate funds, with equity from ACWA per cent of its electrical power from ments Tanzania has obtained an envi- Cooperation and local company Has- Transmission Company (EETC) and a Power and ARIF Investment Fund, renewable energy by 2020 and 52 per ronmental and social impact assess- san Allam Construction has an- consortium comprising Orascom Con- and long tenor debt from the Euro- cent by 2030. ment certificate for the project, which nounced it will build a 6000 MW coal struction, French energy group Engie, pean Bank for Reconstruction and ACWA Power chairman Mohammad will be built in phases. fired power plant near the Red Sea and Toyota Tsusho Corporation, to port of Hamrawein. build a $400 million wind farm in The consortium is reported to have Gabal El-Zeit. out-bid the team formed by Mitsubishi The agreement is for the develop- Hitachi Power Systems, Elsewedy ment of a 250 MW wind farm under a Electric and Orascom Construction as build-own-operate framework. The KenGen seeks PV finance well as a Sino-American consortium wind farm will be linked to the na- led by General Electric and Harbin tional grid for trial operation by mid- Electric to win the project. 2019, and will be fully operational by n 45 MW proposal in Enbu County n CDC finances 52 MW PV plant The consortium was due to start ne- the end of 2019. gotiations with state-run Egyptian Recently French firm Voltalia said Kenyan power firm KenGen is look- southeast Kenya. millions of individuals, families, and Electricity Holding Company in July. it would invest $800 million in ing to secure financing to the tune of The project will provide much need- businesses who struggle to access the It submitted a bid of $4.4 billion for Egypt’s renewable energy sector in KES5.7 billion ($56.6 million) to fi- ed power in the Malindi area, which electricity they need,” said CDC Chief the project, lower than the next alterna- the next five years. Among its plans is nance the construction of its first pho- currently struggles with regular pow- Executive, Nick O’Donohoe. “Our tive offer of $6.6 billion. the construction of up to 300 MW of tovoltaic (PV) power plant, according er shortages and relies largely on ex- investment will bring clean energy Egypt is also continuing to ramp up solar capacity and 500 MW of wind to local media. pensive thermal power plants, CDC and jobs to a region of Kenya that its renewable energy capacity. Last energy capacity. Nairobi-based Business Daily re- said. struggles to reach its potential because month it officially inaugurated the Egypt has set a goal of obtaining 20 ported that the utility has approached Globeleq, CDC’s majority-owned of energy shortages.” Gabal El-Zeit wind farm, considered per cent of its power from renewables a number of multi-lateral institutions, independent power producer solely Kenyas per capita electricity con- to be the largest onshore wind farm in by 2022, and 42 per cent of its electric- including the World Bank, seeking focused on building power generation sumption is well below the average the Middle East and one of the largest ity from renewables by 2025. support for the project, a 45 MW plant in Africa, is the sponsor of the project. for sub-Saharan and 44 per cent below in the world. n The German Development Bank in Mbeere South, Embu County, The company is working with its part- the level that would be expected for The 580 MW wind farm was built in (KfW) has allocated €30 million to known as Seven Forks. ners Africa Energy Development Cor- its level of GDP per capita, CDC three phases with a total of 300 wind finance the construction of hydro- Separately, UK-based CDC and its poration (AEDC) and IDEA Power to said. turbines installed across 100 km2. It power stations in seven sites in Qan- partner, Globeleq, have announced a commence construction in the coming The company believes that the 52 also features a novel migratory bird ater and the Delta in Egypt. The new $66 million debt investment in Mal- months. MW generated by the solar plant will protection system, which uses radar to plants would have a combined capac- indi Solar Group, which is building a “Power infrastructure is vital for be consumed locally and support the detect migrating birds and shut down ity of 30 MW. 52 MWp solar PV power plant in Africa’s economic growth and for the creation of jobs. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Special Project Supplement

Samcheok takes CFBs to the next level

unique power generation pro- After a comprehensive evaluation to the boilers simultaneously and that even at supercritical conditions, The massive ject aimed at providing cheap, of boiler technologies, KOSPO with similar control parameters. tubes that receive more heat will natu- Samcheok Green Agreen energy to South Korea, found that CFB technology could Steam temperatures are individually rally flow more steam and water. This is now demonstrating what is pos- reliably fire cheaper low-quality controlled in order to ensure that the provides additional cooling to limit sible in terms of burning fossil and coal together with biomass and re- required temperatures in the main temperature differences between dif- Power Project in carbon-neutral fuels with minimal solve the problem. steam and reheated steam systems ferent wall tubes. emissions. “CFB technology has the flexibility are achieved. Reheated steam shared SFW says that out of the hundreds South Korea has The final unit of the Samcheok to burn the lower quality coals that between the boilers is continuously of boilers sold in the market, only a now marked just Green Power Project, located 40 km they saw becoming more abundant, monitored and controlled in accor- few use this relatively unique technol- outside the city of Samcheok, in namely from Indonesia,” said Robert dance with the applicable firing ogy. “This is belt and suspenders for over one year of Gangwon-do province on the east Giglio, Vice President of Strategic rates. the CFB,” said Giglio. “Since the coast of South Korea, was taken into Business Development and Strategy Each boiler at Samcheok produces combustion temperature and heat flux full commercial operation in June last year. Notably, at SFW, adding: “If you use a pulver- main steam at a temperature of 603°C is so uniform in a CFB, overheating of the plant, owned by state-owned ised coal boiler, it has to be designed and reheat steam at 603°C. Superheat tubes is a rare occurrence.” operation. Utilising power company Korea Southern for a narrow fuel range. The coal has steam pressure is 257 bar [g]. They The material used for SFW’s su- Power Company (KOSPO), sees the to be finely ground before being fed to utilise advanced vertical tube, low- percritical boilers is much the same the largest and world’s first use of advanced ultra- the boiler and you could only burn a mass flux Benson evaporator technol- as for its subcritical boilers, except in supercritical circulating fluidised bed limited amount of biomass.” ogy, which is more efficient and easi- the final superheater section, which most advanced (CFB) boilers – a technology that Another advantage of the CFB er to build and maintain than is subjected to very high tempera- enables it to burn a combination of technology relates to the fact that it conventional spiral-wound supercriti- tures. With PC or PF boilers, final ultra-supercritical biomass and coal of varying quality, does not need traditional flue gas cal boiler technology. superheating takes place in coils including low rank coals. desulphurisation (FGD) systems The vertical tube design has several hung from the top of the boiler. This circulating fluidised The plant is equipped with four since the CFB boilers capture the advantages over a spiral tube design. is not a great place to put these coils, boilers supplied by Sumitomo SHI sulphur in the fuels as it burns. It has a lower pressure drop across the since they operate at the highest bed (CFB) boilers FW (SFW), in tandem with two steam Samcheok Green Power Project boiler, resulting in higher efficiency. metal temperatures and are fully ex- in the world, it turbine generators with a total gross uses four 550 MWe (gross) ultra-su- Samcheok has an estimated net elec- posed to the corrosive flue gases capacity of 2200 MW. It is an impres- percritical boilers – making it the trical efficiency of 42.4 per cent containing molten ash. signifies the next big sive example of a project that uses a largest CFB plant in the world. The (LHV) compared to the 38-39 per This design weakness is avoided in diversified mix of clean burning fossil boilers – which represent the first cent typically achieved with tradi- SFW’s CFB’s by placing these coils step for clean and fuel technology and renewable energy phase of a plant that could be ex- tional boilers. in high efficiency fluidised bubbling sources. In addition to the four CFB panded at a later date – are configured SFW says its vertical tube super- bed heat exchangers called INTREXs. flexible power from boilers, Samcheok Green Power as two blocks (Units 1 and 2) with critical CFB design also makes it These heat exchangers are integrated Project is also the site of renewable each block having two boilers feeding easier to build and maintain because into the bottom of the furnace extract- economical solid power generation projects based on into an 1100 MW steam turbine. structurally, it avoids the complicated ing heat from the hot circulating bed hydro, wind and solar sources that are Coal and biomass are burned in support system needed for a spiral material at a rate 4-5 times higher fuels. Junior Isles in the design phase. There is also a once-through ultra-supercritical tube boiler. than in PC boilers. fuel cell plant at a nearby facility (OTUSC) CFB boilers. Supercritical Commonly used for conventional As the hot solids return from the owned by Korea Gas Corporation. steam conditions represent a physical pulverised coal (PC) or pulverised solid separators, they are collected In many ways Samcheok reflects point just above the triple point of fuel boilers (PF), spiral wrapping the and returned to the furnace through South Korea’s energy strategy. Strong water. When the boiler pressure tubes around the furnace helps even- the INTREXs and since the solids are economic growth drives power de- reaches above the critical pressure of out the temperature differences from fluidised by air and not flue gas, they mand in the country but like Japan, 221.2 bar (the critical point of water) boiler tube to boiler tube but the spiral are protected from the corrosive flue South Korea has no significant natural and a temperature of 374°C, two- winding has a natural tendency to gases. Further, instead of causing energy resources and is heavily de- phase mixtures of water and steam structurally unwind, putting a twist- fouling, the fuel’s ash and added pendent on fuel imports. It is also in a cease to exist, and are replaced by a ing force on the boiler since it is hung limestone are used to achieve very region of relatively high gas prices, single supercritical fluid. These steam from the top. To counter the twisting high heat conduction rates allowing compared to the US and Europe. This, conditions allow a once-through forces, an elaborate bracing and lat- the CFB to achieve very high ultra- combined with a reduced focus on boiler design where the high steam eral support system is required adding supercritical steam temperatures with nuclear post-Fukushima, leaves coal temperature and pressure results in cost to the boiler and making it more less heat transfer surface area and a and renewables as the main options much higher efficiency compared to a difficult to build and then maintain. much lower combustion temperature for meeting future electricity demand. conventional drum-type boiler. SFW’s CFBs use the same simple than a PC boiler. Going forward, however, the situation The normal operating mode of the vertical tube hanging design common This means the same supercritical with regard to coal is complicated by Samcheok unit is coordinated control in subcritical drum boilers, but instead temperatures can be reached using a rising coal prices and the decreasing with sliding pressure operation. In uses much smaller tubes. This reduces lower grade coil material than would availability of high quality coal. normal operation the boilers are op- the weight of the steam/water mixture be needed in a PC boiler or that a This led KOSPO to think about erated at the same load level and any in each tube allowing buoyancy lower quality fuel can be used with- how it could use low quality coal. load change requests are forwarded forces to become strong enough so out sacrificing steam temperature or THE ENERGY INDUSTRY TIMES - AUGUST 2018 Special Project Supplement unit reliability. At Samcheok, ash produced by the combustion process will be recycled to produce lightweight aggregate for the construction industry and help reclaim land destroyed by coal min- ing in the Gangwon-do region. SFW’s CFB technology has been proven at increasing sizes for many years, achieving the 200 MW utility size in the 1990s. Today, globally SFW has delivered more than 40 CFB units of over 200 MWe scale in opera- tion or under construction capable of burning a wide range of fuels. The technology advance to OTUSC units was first demonstrated at the 460 MWe Łagisza plant in Poland, which entered commercial operation in 2009. Since its startup, the plant has operated on a range of bituminous coals and has demonstrated a LHV net plant electrical efficiency of 43.3 per cent. Another supercritical CFB project has also been built in Russia. This is a 330 MWe CFB unit desig- nated Novocherkasskaya GRES No. took place on February 29, 2016 fol- On August 22nd, three days after the operation, tie-out (i.e. switching to The plant is equipped with 9, which is now under commission- lowed by boiler 1A a few weeks later. start of bypass operation, steam was 1:1 operation) takes place automati- four boilers supplied by SFW, ing. The boiler, which is the first of its Commissioning activities continued introduced to the turbine for the first cally and the unit will continue run- in tandem with two steam kind in the country, is capable of with magnetite film formation, curing time after which, turbine and genera- ning with limited output until turbine generators combusting a wide selection of fuels of the refractory linings and steam tor tests were able to start. It marked switched back to 2:1 operation. including anthracite, bituminous coal blowout process as a final step before the first time that one of the new These functions, which are neces- and coal slurry. the start of boiler testing and the tun- Samcheok once-through CFB boilers sary for a unit to operate well in all The Samcheok units represent the ing period. was operated mainly with coal, while circumstances, were tested and opti- next big step in the design and scale- The blowout process, used for final demonstrating operation of the boiler mised during hot commissioning. up of CFB’s for large utility power cleaning of the steam pipelines from with several fuel feeding lines. Prior to taking the new unit into com- generation. construction debris before connecting Commissioning of the unit pro- mercial operation it had to pass a 10- It has been a long but steady path to steam lines to steam turbine, was ceeded with one boiler on line until day reliability run at nominal rating this stage. Following the award of the carried out continuously during the September. Operation of the boilers (NR) load conditions, as well as tests contract in May 2011, SFW was given daytime. Boiler HP and RH parts and their auxiliaries was optimised required by the grid operator, e.g. the Notice to Proceed (NTP) for the were steam blown simultaneously under steady and transient condi- demonstration of load change capabil- ity. The reliability run was successfully completed on December 14th and the Fuel specifications plant was taken into commercial op- eration on December 16th. A similar procedure was followed Bituminous coal Biomass for Unit 2 in Samcheok. After its hot LHV (a.r.) (MJ/kg) 14.2 – 24.9. 15.8 – 18 commissioning and optimisation stage, that unit started commercial Moisture (%) 20 - 43 5 – 15 operation on June 13, 2017. Ash (a.r.) (%) 1.2 - 15.3 0.7 – 5 According to SFW, boiler reliability Sulphur (a.r.) (%) 0.1 - 1 0 – 0.16 since startup has been above 90 per cent for both units. “The plant has been running well with no unexpected problems,” said Giglio. tions. Nominal rating with boiler 1B Samcheok’s CFBs are designed to was reached for the first time on burn coal mixed with biomass but Design steam parameters at 100% load September 4th, with Unit 1 in 1:1 are expected to primarily burn coal operation, i.e. one boiler supplying sourced from several international SH steam flow (kg/s) 437.7 steam to steam turbine, at approxi- coal mines. The plan is to fire im- SH steam pressure (bar[g]) 257 mately 400 MWe load. The behaviour ported and domestic coals with of the process was also found to be heating values from 3400-6000 kcal/ SH steam temperature (°C) 603 steady during high load operation at kg, and since start-up the coal fired RH steam flow (kg/s) 356.4 a moderate combustion temperature, has predominantly come from Indo- resulting in excellent environmental nesia. It is a typical sub-bituminous RH steam pressure (bar[g]) 53 performance. RH steam temperature (°C) 603 Unit 1 combustion process optimi- sation and control tuning continued Feed water temperature (°C) 297 with 1:1 operation until October 7th and the major milestone of first tie-in and transfer to 2:1 operation was project in July 2011. This triggered meaning that steam leaving from the achieved at this point. During 2:1 the start of civil works. Foundations boiler HP part was led to the cold re- operation steam from the HP part of for the boilers was completed in 2013 heat pipeline and through the reheat- the turbine has to be divided between and the shipping of structural steel to ers up to the hot reheat pipeline and the boilers in a controlled manner to the site took place that year to allow onwards via a temporary pipeline and keep reheat steam temperatures in the start of boiler erection. silencer to the atmosphere. balance. In this respect Samcheok Erection works in the Samcheok The Unit 1 boilers were ready for Unit 1 has worked well from the Green Power Plant Unit 1, incorporat- start of the steam blowout at the end beginning. ing two 550 MWe CFB boilers and a of April 2016 and boiler load was in- Successful tie-in allowed Unit 1 steam turbine, were mostly completed creased to the level required for suf- load to be increased to reach its at the end of year 2015 and commis- ficient cleaning of the steam pipelines, nominal rating of 1 GW for the first sioning activities were started simul- allowing restoration work on the time on October 14th. Since then taneously with some last minor erec- steam piping to be started. Unit 1 optimisation has continued tion works still ongoing. At that time Restoration work after steam blow- mainly in 2:1 operation. During this Unit 2 was still under construction. out took around one month, enabling time, both steady and dynamic per- During the cold commissioning pe- bypass operation of Unit 1 to be formance has been adjusted together riod, carried out by lead EPC contrac- started on August 19, 2016 with first with the steam turbine supplier to tor Hyundai and supported by SFW boiler. During bypass operation HP- meet electrical grid requirements technical advisors, the power unit was and LP-bypass stations were utilised and satisfy the conditions for unit made ready for trouble-free starting in order to get condensate back to the commercial operation. of chemical cleaning and hot com- process and condensate system In 2:1 operation both boilers are missioning. Pipelines were flushed cleaned up. Part of the condensate normally operated at equal load, and operation of boiler auxiliaries, was dumped from the cycle to be based on signals from the Unit Mas- instrumentation and protection sys- substituted by clean demineralised ter Control (UMC). If for some rea- tems were checked for correct opera- water. In the course of bypass opera- son the other of two boilers cannot tion, guaranteeing smooth and safe tion preliminary tuning of the boiler be operated at the requested load, an start-up of the power unit. controls and sequences was made. unbalanced operation mode is used Chemical cleaning for Unit 1 boilers Also, operation of auxiliaries and in- and unit load is limited if necessary. Giglio: CFB technology has the flexibility to burn the lower was finished at the end of February strumentation was verified and ad- Also, in the event that the quality coals that they saw becoming more abundant, namely 2016. First fire of Unit 1 boiler 1B justed in their hot conditions. other boiler has to be taken out of from Indonesia THE ENERGY INDUSTRY TIMES - AUGUST 2018 Special Project Supplement

Measured process parameters at different load levels

50% load 75% load 100% load Unit gross output (MWe) 500 750 978 Main steam flow (kg/s) 195 296 393 Main steam pressure (bar) 158 214 50 Main steam temperature (°C) 603 603 603 Reheat steam temperature (°C) 604 597 604 Bed temperature (°C) 812 812 833 Flue gas exit temperature (°C) 120 132 137

SO2 emissions (ppm)* 28 0 0

NO2 emissions after SCR (ppm)* <50 <50 <50 CO emissions (mg/m3n)* 35 8 7

* @ 6% O2, dry

US and Russian coals. The plant’s full back to the lower furnace from solids “At the moment they are targeting fuel flexibility potential will be rea- separators, have a longer residence local biomass,” said Giglio. “But to lised over time as the KOSPO team time in the combustion zone. A high get to 5 per cent, they will have to gets more experience and masters rate of solid circulation and excellent look to the international market.” plant operation. Stay tuned.” mixing inside the furnace keeps the The successful operation of Sam- According to SFW, environmental combustion temperature even and at a cheok Green Power project serves to performance on these low rank coals moderate level over the whole load further the argument that CFBs can The CFB boiler in-line arrangement incorporates supercritical has also been “excellent”, meeting the range. It also allows the use of low play an important role in reducing steam parameters accompanied by Benson vertical-tube design limits. NOx and SOx emissions excess air. These two things are the emissions while providing fuel flexi- technology are each guaranteed at 50 ppm (at 6 main contributors to low NOx emis- bility. And as environmental pressures coal with high moisture, low ash, and per cent O2). Dust emissions are con- sions and reduced ammonia consump- grow, CFB technology offers an ele- low sulphur with a heating value of trolled by an electrostatic precipitator, tion in the SCR. gant solution at many levels for around 4200 kcal/kg. High quality so that particulates do not exceed 20 The plant’s environmental perfor- countries like South Korea. coals typically have a calorific value mg/Nm3. Carbon dioxide emissions mance will be further improved as Giglio concluded: “It’s proving out above 5500 kcal/kg. are around 800 g/kWh, which is about more biomass is introduced to the mix. the solution that KOSPO wanted; Giglio commented: “In these first 25 per cent below a typical operating The boilers are expected to burn about they wanted a reliable, fuel flexible years of operation, the Samcheok coal plant in Korea today. 5 per cent biomass in terms of heat plant; they wanted a clean plant CFB plant has been firing mainly Good environmental performance input, depending on availability. This without big expensive flue gas clean- Indonesian coals and domestic bio- compared to pulverised coal plant is a is likely to be in the form of recycled ing systems to lower South Korea’s mass. KOSPO has now begun explor- characteristic of CFB combustion. wood waste from the local lumber in- power cost; and it’s working as 3D cutaway of a single boiler ing other fuels sources by test firing This is because fuel particles, recycled dustry and imported wood pellets. expected.” The Power of Sustainable Energy Solutions

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EIT_SHIFW_ad_Aug18issue.indd 1 7/31/2018 9:31:58 AM THE ENERGY INDUSTRY TIMES - AUGUST 2018 Companies News 9

BP charges EV market BP says its purchase of the UK’s largest EV charging network operator is a logical step that will complement its fuel retail business and enable it to capture a portion of the rapidly growing EV sector.

Siân Crampsie clean energy. the road or at home.” mobility” technology. In January, it dominant position in the EV charging BP said that Chargemaster will By 2040 BP estimates that there will made a $5 million investment in Free- market to remain competitive,” said BP has made a further move into the complement its fuel retail business be 12 million EVs on UK roads, up Wire, a US company developing Harminder Singh, Director for Power clean energy market with the acquisi- and enable it to support EV growth. from around 135 000 in 2017. The rapid-charging infrastructure. at market analytics firm GlobalData. tion of the UK’s largest electric ve- “At BP we believe that fast and con- growth will be partly driven by gov- Other oil companies are also making “BP’s competitors such as Shell and hicle (EV) charging network operator venient charging is critical to support ernment policy to ban diesel and pet- a push into clean energy technologies, Total have been making rapid strides Chargemaster. the successful adoption of electric rol car sales from 2040. including Total, which recently in this direction, by opening charging In a £130 million ($171 million) vehicles,” said Tufan Erginbilgic, BP said the deal was part of a pledge bought PitPoint, a company specialis- stations at their retail points and deal, the oil giant will take control of Chief Executive, BP downstream. to plough $500 million a year into ing in natural gas refuelling for ve- acquiring charging infrastructure Chargemaster’s 6500 public charging “Combining BP’s and Chargemas- low-carbon investments. hicles and EV charging technology. providers.” points across the UK as well as its ter’s complementary expertise, expe- In May the company made a $20 “With the rapid shift we are witness- BP said in a statement that its prior- charging infrastructure sales busi- rience and assets is an important step million investment in StoreDot, the ing in consumer transport fuel choic- ity for Chargemaster will be the roll- ness. It will give BP an important towards offering fast and ultra-fast Israeli developer of ultra-fast-charg- es, oil and gas retailers have the inher- out of ultra-fast charging infrastruc- foothold in the rapidly growing EV charging at BP sites across the UK and ing batteries. It has also agreed a deal ent advantage of an established ture, including 150 kW rapid chargers market, and is the latest in a series of to BP becoming the leading provider with Chinese private equity group network of filling stations, which they capable of delivering 100 miles of deals by oil majors into alternative and of energy to low carbon vehicles, on NIO Capital to finance “advanced can easily leverage to get into a range in just 10 minutes. SPIC building GT programme SNC expands

Siemens says it will support China’s will expedite the finalisation of a tech- goal of independently developing and nology cooperation agreement in the nuclear operations building its own heavy-duty gas tur- near future, Siemens said. bine technology through a memoran- China is one of the world’s most im- dum with State Power Investment portant markets for large gas turbines Corporation (SPIC). and is expected to intensify its invest- The two companies have signed a ment in large gas turbine technology. deal aimed at technology collaboration SPIC-chairman Qian Zhimin said: in the field of heavy-duty gas turbines “SPIC is actively developing and im- and the creation of a partnership be- plementing the China Heavy Duty Gas tween Siemens and SPIC in China’s Turbine program. The collaboration heavy-duty gas turbine programme. with Siemens and other multinational n SNC grows partnership with Holtec Under the memorandum, Siemens gas turbine companies will accelerate will support SPIC’s research and de- the progress of the program. Both Sie- n JV to focus on accelerated decommissioning velopment programme, as well as pro- mens and SPIC have complementary vide training and technical consulta- strengths in the energy sector, and will SNC Lavalin is expanding its position stewardship” in its activities, SNC said SNC and Holtec believe that the tion. The cooperation will leverage have more space to cooperate in more in the nuclear energy market with the in a statement. decommissioning market in the USA Siemens’ technology leadership and business areas in the future.” creation of a company specialising in It added that the partnership would will be worth in excess of $14 billion decommissioning services. also expand an existing relationship over the next ten years. CDI will be The Canada-based firm has signed a with Holtec in the small modular reac- well-placed to cut the total time deal with Holtec International to create tor (SMR) field. elapsed to release plant sites for un- a joint venture named Comprehensive “SNC-Lavalin continues to expand restricted use to eight years or fewer, InnoEnergy Decommissioning International (CDI) its participation in the nuclear value pending local regulatory approvals, that will pool the expertise of both firms chain, working with its valued partner, SNC said. to perform “accelerated decommis- Holtec,” said Sandy Taylor, SNC-La- “CDI’s vision is to become the lead- sioning” of nuclear power plants. valin’s President, Nuclear. “Over and ing decommissioning contractor in this partnership targets According to SNC, nuclear decom- above our collaboration with Holtec market,” said Pierre Oneid, Holtec’s missioning has become a rapid growth for small modular reactors, the unique Senior Vice-President and Chief Nu- market in the USA due to an aging contributions of our respective compa- clear Officer. “Now is the time to invest Swedish energy users nuclear power plant fleet and lower nies bring a complete solution to reac- and the parent companies are bringing costs of energy generation in the con- tor decontamination and decommis- their joint skills, technologies and fi- InnoEnergy says it will join forces with each energy company’s strong local ventional fleet. CDI will be based in sioning, bringing technology and nancial strength together to lead the five Swedish energy companies to in- presence. And we will ensure contin- New Jersey state, USA, and will pri- innovation to fuel management and way in decommissioning and spent vest in the design and creation of local ued access to expertise, technology and oritise “safety and environmental facilities dismantlement.” fuel storage.” systems built around smart energy resources.” technologies. InnoEnergy and its five partners will The company has partnered with Öre- collectively invest SEK60 million sundskraft, Jämtkraft, Tekniska Verken, ($6.85 million) in the venture, which Equinor buys Danske Commodities Umeå Energi and Jönköping Energi to will primarily target property owners launch Power2U, a venture that will of- and large energy users. Equinor says that the acquisition of a support our strategy through leverag- various national markets in a world fer energy optimisation services to Johansson added: “The energy mar- Danish energy trading company will ing DC’s material trading position in where renewables to a larger and end users and energy companies. ket is about to change fundamentally. boost its position in renewable energy electricity and natural gas. Their suc- larger degree will be exposed to mar- Its energy management platform will Energy end-users are growing larger and supports its plan to become a broad cess has been due to their agility, en- ket risk,” said Irene Rummelhoff, enable all types of buildings to ben- and equipping themselves with their energy company. trepreneurialism and speed to mar- Equinor’s executive vice president for efit from the integration of new sustain- own power generation. We expect Equinor – formerly known as Statoil ket,” said Jens Økland, Equinor’s new energy solutions. able energy technologies such as solar rapid growth of local storage capac- – has reached an agreement to buy Executive Vice President for market- Equinor earlier this year announced cells, EV chargers and batteries, In- ity in the form of electric cars and 100 per cent of Danske Commodities ing, midstream and processing. a strategy to move from being an up- noEnergy says. stationary batteries. Our joint new (DC) for €400 million. DC is one of “This transaction will strengthen our stream oil and gas company to a broad- Kenneth Johansson, CEO of InnoEn- model is an important puzzle piece in Europe’s largest short term electricity ability to capture value from our cur- er energy company. ergy Scandinavia, said: “We are the new energy landscape, and we are traders and is also active in short-term rent and future equity production of The company said it is building a pleased to welcome our new partners aiming for a rapid market launch start- gas trading and provides energy mar- renewable electricity and supports our position in renewables and expects to in Power2U, which is now ready for ing in Sweden. We already have more ket services. aim to grow in new energy solutions. invest 15-20 per cent of its capital ex- rollout. With the partnership, the solu- international inquiries than we can “Danske Commodities’ trading plat- We see excellent opportunities to de- penditure in new energy solutions by tion is fast-tracked to market through handle.” form and geographic footprint will velop our collective understanding of 2030. THE ENERGY INDUSTRY TIMES - AUGUST 2018 10 Tenders, Bids & Contracts

Americas Dangjin Power Plant. Azure Power said this marks its compressed air, which is needed in Ethos Energy has previously com- largest capacity win. It is expecting the production of glass. PG&E selects esVolta pleted stator rewind projects at Bo- to sign a 25-year power purchase ryeong and Taean power plants. The agreement (PPA) with SECI to sell TenneT awards Hollandse esVolta, a developer and owner of work will increase the output of the power at INR2.53 ($0.037/€0.031) Kust contract utility-scale energy storage projects generators by eight per cent from per kWh. The tariff is about four per across North America, has been se- 612 MVA up to 660 MVA, cent higher than the lowest bid in the Following a European tender proce- lected by Pacific Gas and Electric auction, which matched the record dure, TenneT TSO B.V. has selected Company (PG&E) to build an energy Vestas delivers 112 MW in low seen for Indian solar tariffs in Petrofac to construct an offshore trans- storage system in Santa Clara County, 2017. former station for the Hollandse Kust California. Tasmania (zuid) Alpha wind farm zone. Under the proposal, which is pend- Australia-based Palisade Investment GE lucky in Pakistan Petrofac is also the preferred con- ing approval by the California Public Partners Limited (Palisade) has tractor for TenneT’s next offshore Utilities Commission (CPUC), es- placed a 112 MW turnkey order with GE Power will provide advanced project, the Hollandse Kust (zuid) Volta will develop, build, and operate Danish wind turbine manufacturer boiler and steam turbine technology Beta platform. Together, these two the Hummingbird Energy Storage Vestas for the Granville Harbour to Pakistan’s first ultra-supercritical platforms will be part of the third project, a 75 MW/300 MWh lithium- wind farm in Tasmania, Australia, (USC) and lignite-fuelled power and fourth large-scale grid connec- ion battery storage facility. The proj- Vestas has announced. plant in Karachi, the company has tions for offshore wind energy in the ect is slated to be in service by De- The order includes civil and electri- announced. Netherlands to be constructed under cember 2020. cal works, supply and commission- Located in Deh Ghangiaro, Bin the National Energy Agreement. Upon completion, Hummingbird ing of 31 V126-3.6 MW turbines as Qasim, the Lucky Electric Power Petrofac will undertake the engi- will be one of the largest battery well as a 25-year Active Output project will add 660 MW of capacity neering, construction, transport, in- projects in the world, and will pro- Management 5000 (AOM 5000) to the national grid. China’s SEP- stallation, connection and testing of vide an array of energy and ancillary full-scope service package to maxi- COIII will construct the power plant, the offshore transformer station. The services to California’s electric grid, mise energy production for the life- with a commercial operation set for Hollandse Kust (zuid) Alpha platform enhancing reliability and facilitating time of the project. 2021. will have a connection capacity of greater ability to integrate renewable Commercial operations at Granville In a statement GE said that the 700 MW for offshore wind farms and energy resources such as wind and Harbour are scheduled to begin in project stands out as the first power is scheduled for completion in 2021. solar energy. the fourth quarter of 2019. plant located outside Thar district The Beta platform (also 700 MW) is that will use lignite mined from the expected to be completed by 2022. Rolls-Royce and TSK to Siemens supplies Vietnam Sind Engro Coal Mining Company (SECMC) Mine at Thar Block II, in JDN, Parkwind join forces deliver Chile power plants solar farm addition to imported lignite as back- Jan De Nul and Parkwind have signed A consortium comprising TSK and Vietnam’s Trung Nam Group has up fuel. a contract for the construction of the Rolls-Royce has signed an engineer- awarded Siemens a contract to supply Northwester 2 wind farm off the Bel- ing, procurement and construction systems for the country’s largest solar Europe gian coast. (EPC) contract with Prime Energía farm. The contract represents the third Quickstart Spa, a subsidiary of Prime The farm is the first solar project for Hitachi sets up smart time that the two companies have Energia SpA, for the construction of Siemens in Southeast Asia, and has a project partnered for an offshore wind farm. five power plants across Chile. module capacity of 258 MWp. The Northwester 2 will be located 48 km Prime Energía’s five power plants deliverables include inverters, power- Moixa has begun installing smart bat- off the Belgian coast and will have will offer a total combined capacity and distribution transformers, gas-in- teries on the Isles of Scilly in the first the largest and most powerful wind of 475 MW, which will be connected sulated medium-voltage switchgear, stage of a landmark programme that turbines currently available on the to Chile’s electricity grid to provide circuit-breakers, and a monitoring aims to transform the lives of island- market: MHI Vestas’ V164-9.5MW. backup capacity to the country’s and control system. ers and provide a model for commu- Jan De Nul will be responsible for power supply system. They will con- The project, in the southern prov- nities worldwide. the design, construction and installa- sist of a total of 265 MTU Onsite ince of Ninh Tuan, is due to start op- The £10.8 million ($14.2 million) tion of 23 foundations, the transpor- Energy 16V 4000 gensets. erating in 2019. project, led by Hitachi Europe Ltd., tation and installation of the cables will demonstrate how solar power, and the transportation and installa- Dominican wind farm opts Pöyry wins Nam Kong 3 batteries, smart heating technologies tion of the wind turbines on top of for Vestas and electric vehicles can be used to the foundations. It will start works in assignment help support the islands’ energy sys- June 2019. RGE has placed an engineering, pro- The Chaleun Sekong Energy Co Ltd tem and reduce bills for the whole curement and construction (EPC) con- (CSE) has awarded Pöyry the owner’s community. International tract with Vestas for a 48 MW wind engineering services assignment for The low-carbon infrastructure is farm in the Dominican Republic. the 54 MW Nam Kong 3 hydro power due to be installed by this autumn. A Oman LNG orders MAN Vestas will deliver and install 16 plant (NK3 HPP) project located in not-for-profit Community Interest units of its V136-3.45 MW turbines Attapue, Laos. Company will sell power generated engines in 3.0 MW load optimised mode for The project includes the design, by the solar panels and recycle the MAN Energy Solutions has won an the project in the Puerto Plata region. civil works and installation of a income to reduce electricity bills for order from Oman Liquefied Natural The company expects to ship the Roller Compacted Concrete (RCC) all islanders through a special Isles Gas to equip a new power plant with machines in the first quarter of 2019. dam, spillway, plunge pool, headrace of Scilly energy tariff that will be gas engines. Commissioning is scheduled for the tunnel, power house tailrace channel launched this summer. The power plant will be located in third quarter of the year. and switchyard with associated In the longer term, the initiative Qalhat, southeast of Muscat on the hydro and electro-mechanical work, aims to cut electricity bills by 40 per Gulf of Oman, and will provide 120 Lagoa dos Ventos is as well as erection of a new transmis- cent by 2025 and meet 40 per cent of MW of power to the existing LNG fa- sion line. energy demand through renewables. cility of Oman LNG. It will replace an Nordex’s biggest contract Pöyry’s assignment includes assis- existing gas-turbine plant and com- Nordex Group ha won the largest tance in project management, design GE Power signs Ostrołęka prise nine MAN 51/60 gas engines. single contract in its history: it will and design review, and site supervi- supply and install turbines for the Bra- sion services. Pöyry completed the contract zilian wind farm “Lagoa dos Ventos” initial river diversion works within GE Power has signed a contract with SGRE to install South with a capacity of around 595 MW for six months from signing the project Elektrownia Ostrołęka to build African wind farms Enel Green Power. The project com- contract in November 2017, and two Ostrołęka C, an ultra-supercritical prises 191 AW125 turbines. With an weeks ahead of schedule. (USC) coal power plant in the north- Siemens Gamesa Renewable Energy installed capacity of 3.15 or 3.0 MW, east of Poland. (SGRE) is to build two wind farms in the turbines will be mounted on top of Vestas attains first in GE Power will design and build the South Africa: the 140 MW Kangnas 120 m concrete towers. power plant as well as manufacture project near Springbok in the North- Nordex will start intallaing the tur- China and deliver the ultra-supercritical ern Cape, and the 110 MW Perdekraal bines from October 2019, subse- Vestas has received its first order for technology components, including the East wind farm near Ceres in the quently providing service for the tur- its V126-3.45 MW wind turbine unit boiler and steam turbine generator. Western Cape. bines for at least two years. The wind in China. The ultra-supercritical technology SGRE will supply a total of 109 of farm is located in the state of Piaui in The company says that an unnamed to be used at Ostrołęka C will ensure its SWT-2.3-108 turbine units at the the north of Brazil. Nordex previous- Chinese customer has ordered 20 an efficiency of 46 per cent, well two sites, which are being developed ly won another contract for 65 tur- units in 3.6 MW power optimised above the global average of 33 per by Mainstream Renewable Power. bines from the same series for anoth- mode. It expects delivery of the cent. GE Power will also supply air Completion of the projects is expect- er project in the same province. equipment to start in January 2019, quality control systems that meet ed in 2020. while commissioning of the wind with the latest EU standards. Al Aweer orders Siemens park is scheduled for May 2019. Asia-Pacific A three-year Active Output Man- Glass giant signs Turboden GTs EthosEnergy wins Siemens agement 4000 (AOM 4000) service Glass company Saint-Gobain has Siemens is to supply three SGT5- agreement is also included, Vestas signed two contracts with Turboden 4000F gas turbines for Unit H Phase work said, without providing financial for equipment that will help it improve 4 of the Al Aweer power plant complex EthosEnergy has been awarded two details. the efficiency of its operations in Italy in Dubai. multi-million dollar subcontracts by and India. The 815 MW power plant, located Siemens Korea for work at the Taean Azure wins in Indian Saint-Gobain has selected Tur- approximately 35 km from down- and Dangjin power plants. auction boden’s ORC technology to recover town Dubai, is being built by a con- The subcontracts are for a genera- Indian solar developer Azure Power waste heat and convert it to electri- sortium led by Egypt-based company tor stator rewind and upgrade for has secured 600 MW in a 2 GW solar cal energy at two plants: a 1.2 MWe El Sewedy Electric Co SAE. It will units 3 and 4 at the Taean Power auction by Solar Energy Corporation unit in India and 1.2 MWe in Italy. increase the total output of the power Plant and Unit 1, 2 and 3 at the of India (SECI). In Italy, the plant will also produce plant complex to more than 2.8 GW. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Energy Industry Data 11

Global investment in the power sector by technology For more information, please contact: International Energy Agency 9, rue de la Fédération 75739 Paris Cedex 15 France.

Email: [email protected] website: www.iea.org

World Energy Investment 2018, © IEA/OECD, Figure 1.12 , page 48 Power sector investment by major country and region, 2017

World Energy Investment 2018, © IEA/OECD, Figure 1.13, page 49

Distributed solar PV investment and average installation costs

World Energy Investment 2018, © IEA/OECD, Figure 1.15, page 54 This section is supported by ABB

Source: World Energy Investment 2018 THE ENERGY INDUSTRY TIMES - AUGUST 2018 12 Fuel Watch

Oil Crude Oil Prices - 2018 Settlement Prices For Benchmark Crudes ($/B) Nymex WTI ICE Brent DME Oman ICE Dubai OPEC Basket

With over-production Price/Barrel

$80.00

$75.00 solved, oil supply $70.00 $65.00

$60.00 becomes the issue $55.00 $50.00 $45.00 n Oil producers agree to 100 per cent compliance $40.00 with oil quotas $35.00 n $30.00 IEA data indicates higher prices starting to take toll on $25.00 demand Date 14 June 20 June 25 June 29 June 5 July 10 July 17 July 2018 2018 2018 2018 2018 2018 2018

David Gregory close the Strait of Hormuz, prompting late July, Saudi Arabia said it was halt- “This will become an even bigger is- Brent crude would remain high for the US President Donald Trump to re- ing exports through the Red Sea strait sue as rising production from Middle rest of the year and into the first quar- spond with threats of his own. of Bab el-Mandeb after Iranian-back East Gulf countries and Russia, wel- ter of 2019, he said that crude prices At this point, it is impossible to predict China is turning away from US oil Houthis in Yemen attacked two tankers come though it is, comes at the expense would decline to range between $45/b which way prices will go in the future, shipments in response to tariffs im- in the strait. of the world’s spare capacity cushion, and $60/b before the end of 2019. although up would be the most prob- posed on Chinese imports into the US Russia’s production will increase by which might be stretched to the limit,” Major forecasters like Goldman able guess. Everything seems volatile. and could likely turn to Iranian crude. an average of more than 11 million the report said. “This vulnerability cur- Sachs Group, Morgan Stanley and Everything seems to be in flux. It might With both China and India importing b/d this year, but whether that will rently underpins oil prices and seems Bernstein & Co have forecast prices be best to use astrology charts to fore- 600 000 b/d of Iranian crude, it is not impact the market to reduce prices likely to continue to do so. We see no at $80-$100/b. Morse said in the in- cast the future of the oil market. clear how those countries could shift remains to be seen, considering the sign of higher production from else- terview that their argument is based Since Opec/non-Opec oil producers to new suppliers. short-term production cuts in Canada, where that might ease fears of market on “faulty analysis.” According to agreed in late June in Vienna to pro- Furthermore, continued fighting in the North Sea and Norway. Saudi Ara- tightness.” Morse, despite the lack of capital in- duce at 100 per cent compliance with Libya has forced a decline in produc- bia and other Gulf Opec members The IEA report went on to say that vestment in recent years, the “effi- their respective oil quotas – in effect tion there, and other producers are see- have meanwhile boosted production, despite a strong start for demand ciency of capital has improved by at increasing oil output – the price of ing short-term falls in output. With but that may not be enough to allevi- growth at the beginning of the year, least 50 per cent since 2014,” meaning Brent crude has ranged in the high to retail gasoline prices in the US at close ate fears that high crude prices will provisional data indicate that higher that it takes less money to produce at low $70s and West Texas Intermediate to $3.00/gallon, Trump has demanded hurt global economic performance. prices are starting to take their toll on a profitable rate. (WTI) has dipped into the high $60s. that Opec produce more oil even No sooner than the Opec/non-Opec demand. On the supply side, spare He also points to the fact that tech- But much has happened in the last though US production is reaching a alliance had solved the critical issue capacity production is becoming a fo- nology is optimising production and month that could force prices higher point that US infrastructure can barely of over-production, then the issue of cal point. will continue to do so. And he argues over coming months. Refineries are cope with the quantities, yet stocks supply shortage has taken the helm. Meanwhile, in an interview with that decline rates are overblown. Fur- searching for substitute oil to cover have gone into decline as summer de- In the July issue of the International Canada’s Financial Post last month, thermore, he told the financial website their usual Iran liftings. Angry with mand picks up. Energy Agency’s (IEA) monthly Oil Citigroup oil forecaster Ed Morse dis- that concerns about spare capacity are the US over new sanctions and the The ongoing economic crisis in Ven- Market Report, the agency com- agreed with the ‘bull market’ analysis also unfounded as Saudi Arabia’s abil- prospect of being forced to cutback ezuela continues to factor highly in mented on the pressure of global oil that crude oil prices would continue ity to deliver crude is widespread and production, Iran has threatened to questions about the oil market. And in supply. to rise. Although Morse agreed that sophisticated. Gas New era for European supply as Southern Gas Corridor nears completion

Mark Goetz Bob Dudley, BP Group Chief Execu- add 16 billion cubic metres (bcm) of current configuration of pipeline sys- consideration of Italy’s olive industry tive, said in a statement announcing natural gas annually to Shah Deniz’s tems was selected by BP and its part- concerns. The Southern Gas Corridor is no lon- SD2’s start-up. current capacity of 10 bcm/year. Tur- ners, particularly Azerbaijan’s Socar, Other pipeline systems that would ger an idea, it finally materialised in The SCPX, TANAP and TAP pipe- key will receive an additional 6 bcm/ earlier this decade. connect with the SGC have been early July when BP initiated commer- lines comprise the first components of year on top of the 6 bcm/year it cur- The SGC was an ambitious and con- planned for years, particularly the cial gas deliveries from its Shah Den- the Southern Gas Corridor (SGC). rently receives from first phase Shah troversial project and remains so even Interconnector-Greece-Bulgaria iz Stage 2 (SD2) project in the Cas- When the concept of a natural gas Deniz production. TAP will transport as it nears completion. Earlier this year (IGB) pipeline, which will connect pian Sea to Turkey. transport system carrying gas into 10 bcm/year of SD2 gas into Central when a new populist government with TAP near the Greek-Turkish bor- The first two components of the proj- Europe through a southern route that Europe in 2020. came to power in Italy, officials began der. Work on this project is to begin ect, an expanded South Caucasus Pipe- bypassed Russia first formed, it was The total cost for the SD2 project to question the need of TAP and oth- later this year and in 2019-20 Azeri line (SCPX) and the Trans Anatolian idealistically imagined that in time, and the construction/expansion of the ers criticized the pipeline’s route gas will be delivered to Bulgaria. Natural Gas Pipeline (TANAP) are gas from Turkmenistan, Kurdistan, pipeline system to Europe is estimat- through olive grows in southern Italy The plan calls for eventually gas complete and functioning. The final Iraq, Iran and Qatar could be fed into ed at around $41.5 billion. Clearly a and the disruption it would cause the from Azerbaijan and other sources to component, the Trans Adriatic Pipeline an ever-expanding system. But the significant investment demanding local olive industry. enter the IGB and be transported fur- (TAP), which will carry Azerbaijan’s current state of geopolitics in a region that a great deal of Azeri gas be sold However, earlier this month during ther into Eastern Europe. SD2 gas from the Greek border with fraught with political and economic to Europe. a visit to Baku, Italian President Ser- Another project is the Ionian Adri- Turkey across northern Greece, Alba- rivalry does not encourage that view The opening of the corridor is every gio Mattarella assured the Azeri gov- atic Pipeline (IAP), which would con- nia and the Adriatic Sea to Italy, will now. By the mid-2020s, Azerbaijan bit as significant as the completion of ernment that it fully supported TAP. nect with the TAP in Albania and come into operation in 2019-20 and hopes to boost gas exports to Europe the Baku-Tbilisi-Ceyhan (BTC) crude “The Southern Gas Corridor and the transport gas into the western Balkan enable natural gas from the Caspian through the corridor, but future explo- pipeline, which opened in 2006 with Caspian Sea gas is of great importance states. and perhaps other Asian gas fields to ration, production, and, of course, BP as project leader. to Europe,” Mattarella said, adding Together, these additional projects be delivered into Central Europe. markets will determine future events. The BTC was a controversial project that his conversations with Azeri would improve East European and “Together with the Southern Gas Whether other countries in the region that eventually materialised, but the President Ilham Aliyev confirmed that European Union energy security and Corridor pipeline system, Shah Deniz will find markets in Europe for piped debate about the SGC, the route it both countries “will work to find ways at the same time reduce Europe’s reli- 2 will deliver significant new energy gas remains to be seen. would take and what companies to address these issues of common ance on Russian gas supplies, although supplies to Europe, further diversify- BP’s Shah Deniz Stage 1 project would be involved – notably the Nab- interest.” Moscow is working hard on its own ing its sources of energy and providing came on-stream in 2006 and supplies ucco consortium led by OMV – lasted As far as the TAP consortium is projects – TurkStream and Nord new supplies of natural gas which will gas to Azerbaijan, Georgia and Tur- for several years. Nabucco and sev- concerned, it is reported to be rede- Stream II – to secure its dominant place be essential in the energy transition,” key. The $28 billion SD2 project will eral other proposals lost out and the signing the pipeline route to take in European gas supply. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Industry Perspective 13 Some like it hot?

n 2015 something unusual hap- The political climate pened. Science and politics has changed Istopped quibbling and rallied around the single most important is- considerably since sue facing homo sapiens in this mil- lennium: climate change. At that the Paris agreement point in time almost 200 countries agreed to unite in cutting global was signed in 2015. greenhouse gas emissions by 2020 under the Paris Climate Agreement. Greenhouse gas However, figures released by the In- ternational Energy Agency show that emissions have now in 2017 carbon emissions reached a historic high, increasing by 1.4 per reached an all-time cent to 32.5 Gt. So what happened? To begin with high and many the political climate has changed considerably since the agreement world leaders seem was signed. For a short time it reluctant to stand seemed that the world’s leaders were united in the movement towards firmly behind a green lower greenhouse emissions. Indus- try had found its climate legs with future and push. most listed corporations responding to shareholder pressure and adopting Dr. Geoff Nesbitt, their Health, Safety, Security and En- vironmental (HSSE) programmes to explores how the include a yearly audit of their carbon footprint and goals for reduction. global climate is However, in the face of all this progress on paper, little material im- Dr. Nesbitt: in the face of all this progress on paper, little material impact has been recorded faring and what more pact has been recorded and many world leaders seem reluctant to of new petrol vehicles by 2040 in a leading the world in clean energy businesses and consumers. can be done. stand firmly behind a green future bid to reduce carbon emissions but technology investment, and this is And it’s not just the public that and push. think-tank The Green Alliance claims driving down the cost of clean tech- strongly supports action against cli- Perhaps we are also wrestling with banning new combustion engine ve- nology. Policy targets, subsidies and mate change. Major US corporations something very basic, in the form of hicles by 2030 would close the cli- manufacturing incentives have led to are stimulating growth in the solar a social contract many people have mate target gap while significantly China spending more on producing and wind industries with Alphabet with their government on energy. In reducing oil imports. In 2016 trans- cleaner energy than the EU and US (Google’s parent company), Apple addition to the fundamentals en- portation overtook energy production combined. According to Bloomberg and Wal-Mart among the country’s shrined in charters and covenants on in 2016 as the UK’s biggest cause of New Energy Finance (BNEF) con- biggest investors in renewable ener- safety, security, freedom from per- carbon emissions, so this is a good sultancy, China spent $132 billion on gy. Not only has Apple ensured all secution and discrimination, access place to go hunting for results. this last year alone. its facilities, including data centres, to food, water and shelter, there A 2030 deadline would close the As the cost of clean energy contin- offices and retail units in 43 coun- seems to be an unwritten guarantee gap by 85 per cent, the think-tank ues to drop and new formats make it tries are now powered by renewable of access to bountiful cheap sources claims. Can technology help close more feasible to use, the world’s energy, the consumer tech giant has of energy? that gap? The most immediate an- wealthiest governments should rec- persuaded 23 suppliers to commit to Both French and German govern- swer most probably lies in two well- ognise the opportunity to support relying entirely on renewable energy ments have publicly acknowledged known areas of development; battery their environmental policies with real sources. that their countries will miss their technology and dynamic generation. investment. Until wealthy nations In 2017 Alphabet invested in near-term emission reduction targets At the moment Lithium-ion leads begin to make greater strides towards enough renewable energy to cover as greenhouse gas levels have con- the pack in density and charging achieving their emissions targets, to- all of its electricity consumption tinued to rise. times for mobile applications such as day’s biggest polluting countries – worldwide. In addition to China’s But we’re still making progress. consumer electronics and now auto- those with the least to invest – will substantial investment, investments The intent to cut greenhouse emis- mobiles. For the residential or SME be unable to meet their aspirations by these major corporations are fur- sions is still evident in the majority applications there may be environ- and make good their signature in ther driving down the price of renew- of countries that signed up to COP21 mentally greener alternatives. Paris, back in 2015. able energy sources. and while some struggle to meet ini- Regarding dynamic charging There is a question mark over the In conclusion, as a planet we are tial targets, there are enough steps (while under way) we are limited to West. We are confronted with two making progress on learning to live being taken so that in most countries fly-wheel systems or lightweight so- very different governments and sen- within our carbon-means. Renew- the tide has turned on emissions. lar modules integrated into the body. timents in North America. Canada’s able energy sources are developing This is evident in legislation being As thin lightweight PV becomes Trudeau government has made funds quickly and becoming more cost ef- put in place to curb CO2 emissions more efficient and robust it will be available to encourage emission cap- fective as we de-bottleneck and ap- on land and sulphur emissions at sea applied. ture development to address the co- ply our ingenuity to deploying them and is bolstered by the stimulation Some of the rise in global emis- nundrum they face with gas and tar- effectively. and development of cleaner energy sions recorded by the International sand reserves. The country profits Opinions differ, in some circles creation. If we take solar power for Energy Agency has been linked to from tremendous hydroelectric ca- widely, on the precision of our cli- example, the initial wave of enthusi- accelerated deforestation in Brazil pacity and can develop this further in mate models, but the majority of in- asm and subsidy programmes fuelled and the dependence on coal to meet the form of micro-grids pulling from formed adults understand and accept the scale up of production of conven- demand for electricity in develop- the extensive rivers that innervate the accuracy; we must do our utmost tional PV modules. The drive to meet ing countries in Asia and Africa, much of the country. to reduce and ultimately remove our the market pull in turn found traction and even some of the EU’s newer In the US, the Trump government’s contributions to global warming. No in the East where investment in ca- members. decision to pull out of the Paris one truly understands how this is go- pacity surged, economies of scale In late 2017 Britain’s Prime Minis- Agreement may seem like old news ing to play out, but we are awake and kicked in, and costs reduced. ter Theresa May announced the UK but the repercussions are still echo- cognisant of our roles and finally on The result was a window of op- would provide a £140 million fund ing through the parliaments of the many fronts cooperating across our portunity where it became feasible to assist poorer countries dispropor- world. But does it really spell the geopolitical borders. to carpet fields or heavy structures tionately affected by climate change. end for America’s efforts to partici- As we move to soften many of with first generation conventional In early 2018, three years after the pate, even if it doesn’t want a seat at those borders I would be concerned solar PV panels. Now it’s time to initial summit in Paris, environment the table? that the final lines may be drawn by look at version 2.0 – lightweight, ministers from China, South Africa, One study published by Yale in a stronger hand than anything we semi-flexible solar options which Brazil and India released a statement 2017 revealed that 70 per cent of could invent. make solar energy affordable for ap- urging wealthy countries to take registered US voters support setting Ultimately our climate will have its plications that were previously un- stronger action in leading the global strict carbon dioxide emission limits say. The time to invest in emission thinkable. effort to curb climate change. on existing coal fired power plants control and renewable energy is now. Taking a world view, both the UK Despite being the world’s largest to reduce global warming and im- and French governments have com- consumer of coal and biggest carbon prove public health, even if it meant Dr. Geoff Nesbitt is CEO of Verditek mitted to ban the production and sale dioxide producer, China is also now an increase in electricity costs for plc. THE ENERGY INDUSTRY TIMES - AUGUST 2018 14 Energy Outlook

Charging ahead: storage in the renewable energy sphere

enewable energy is already around $1000/kWh. Secondly, battery systems may re- frequency response tender; and a 10- Exciting new significantly impacting Eu- As costs fall, new applications will quire multiple sources of revenue to year demand-side response tender storage capabilities Rrope’s energy market. In Ger- emerge, especially in the energy be bankable. For example, the pace of under the country’s capacity market. many alone, renewables provide 38.5 market, with potentially significant battery price reductions means that Germany offers a pooled market for being developed per cent (2017) of electricity supply ramifications for future energy sys- short-dated contracts, such as Ger- batteries to participate in its weekly and are displacing fossil fuel energy tems, including power market design many’s weekly frequency control frequency control tenders, including for renewable production. There is still so much and the integration of variable renew- tenders, may face increasing price providers from Austria and France. more to come as European initiatives able power. At present, lithium batter- pressure, as new battery systems One downside is that battery partici- energy resources aim to have 80 per cent of electricity ies are the only technology that can come on line, effectively out-compet- pation in these tenders has already put produced from renewable sources by attract secure funding and bankable ing recently installed systems. downward pressure on prices and have the potential 2050. projects. Improved economics of battery frequency control revenues. As the share of renewable energy In 2013, the total global production systems, as a result of cost reductions, Still, there are opportunities for to dramatically increases it will become more im- capacity for lithium-ion batteries was technology developments and im- grid-scale battery deployment in Eu- portant to tackle the variable nature around 35 GWh but it is expanding proved regulations, will help add new rope. Aquila Capital expects lithium transform the global of renewables such as wind and solar rapidly. The success of the first elec- applications and revenue streams. batteries to continue to outperform in order to maintain continuous sup- tric vehicles and the growing auto- So what is the outlook for energy other forms of storage technology. energy sector, as ply. Storage capacity will be an im- maker commitment to electric mobil- storage in Europe? Europe does not This would be due to cost reductions, portant part of this process, by en- ity is spurring massive new battery have a common regulatory approach economies of scale achieved in manu- they deliver the suring renewable energy can be manufacturing capacity. Now the to energy storage. The two principal facturing and its bankability (given a capacity to balance dispatched more efficiently in line global battery manufactory capacity markets at present are for frequency major supplier focus from companies with demand. amounts to 102 GWh and is largely control in Britain and Germany. The such as Samsung, Panasonic and electricity supply and Battery storage can play a crucial based in China. most common application for batter- LGCHEM). Lithium batteries are role in supporting renewable power BNEF expects that global battery ies in Europe besides frequency therefore a key component in the fu- demand. directly, and in facilitating the ac- manufacturing capacity will more control is for load-shifting in off-grid ture development of renewable energy companying grid infrastructure. In than double by 2020, to 260 GWh. It islands. and are seen by Aquila as a key in- Boris Beltermann Europe, modernisation of the electri- also forecasts installed battery ca- Britain is the most appealing mar- vestment opportunity because of their cal grid to accommodate growth in pacity in renewable power applica- ket as it benefits from three possible fundamental nature in the future of renewable energy is expected to re- tions to grow from 1 GWh at present, revenue streams over a variety of tim- the renewable energy market. quire around €650 billion of invest- to 8.1 GWh by 2024. escales, enhancing the potential busi- ment over the next two decades. The These cost and technical advan- ness case. The revenue streams com- Boris Beltermann is Head Investment cost of the investment can be miti- tages should secure the technology’s prise of a monthly firm frequency Management, Energy & Infrastructure gated in part by supporting grid-scale dominance in the electrification of response tender; a four-year enhanced APAC at Aquila Capital. storage projects, which reduce the the transport sector. That in turn will need for grid build-out at the point of benefit renewables storage, owing to network bottlenecks. economies of scale in the manufac- Insights from Japan’s Tomakomai project The research company IHS has turing of electric vehicle (EV) batter- predicted that installed battery stor- ies. EV battery manufacturing capac- age will grow from 1.3 GW of stor- ity has trebled over the course of the From a first mover advantage standpoint, Aquila Capital has gained age projects deployed globally in past three years. valuable experience from its investment activities carried out on the 2016 to an expected 4.7 GW in 2020 Until now, the main role for lithium ground in Northern Japan. In 2016, Aquila invested in the Tomako- and 5.2 GW by 2025. batteries was in power-intensive, fast mai project, which was then the largest solar and storage project Lithium-ion remains the battery response applications such as fre- in Asia. The facility in the island of Hokkaido comprises a 38 MW storage technology of choice at pres- quency control at the below 30- solar photovoltaic power plant coupled with a 19.8 MW/11.4 MWh ent and we expect its dominance to minute timescale. However, technol- lithium battery. continue. Lithium batteries are one of ogy development has vastly increased the most mature technologies, with energy densities, while improving Following the disaster at Fukushima, Japan had to scramble to the greatest disruption potential and manufacturing economies of scale fill the gap left by the temporary closure of its entire nuclear power with the highest energy density have sharply reduced production generation capability. Japan has since become one of the largest compared with other storage tech- costs. markets for renewables, alongside China and the United States. In nologies currently deployed. This is increasing the duration of 2016 alone, Japan added 14.3 GW of solar PV, nearly a quarter of Research conducted by Bloomberg lithium battery applications, to the global new installed capacity. New Energy Finance (BNEF), esti- two to four-hour scale, a range previ- mates the cost of lithium batteries ously attributed to non-lithium tech- For the Tomakomai project, the sole application of the battery will fall to $100/kWh by 2025 nologies, such as PHP and flow bat- is for asset management initiatives – to ensure that feed-in solar compared with around $209/ kWh at teries. Lithium is now established as production from the plant meets the frequency requirements of the present. Since 2010, lithium-ion the go-to technology for four-hour grid and the local energy utility, Hokkaido Electric Power Company battery pack costs have fallen from storage. (HEPCO). Battery OEMs will further assist this expanding opportunity, as they HEPCO required such feed-in control as a condition to qualify gather more data on the working pa- for generous feed-in tariffs associated with the solar power project. rameters of batteries and begin to The Tomakomai project receives a 20-year solar feed-in tariff of extend their warranties for use in JPY 40/kWh ($0.36/ kWh), which is more than sufficient to cover different simultaneous applications. the additional cost of the battery. But grid-scale battery deployment The experience gained in the Tomakomai project can now be will not be without its challenges. The biggest overall barrier to energy profitably applied further afield. storage in the current EU legislative Developing battery storage adds an extra layer of complexity to a landscape is the lack of a clear regu- renewable-only project, including debt finance. An important prior- latory definition, which has led to its ity was to identify the right lithium battery technology for the specific classification as both generation and application and the right software, given the wide range of available load, and thus multiple charges and suppliers and battery technologies. taxes. The EU Directive 2009/72/EC refers Every battery project is different, and a particular application will to generation as assets that produce define the specific lithium battery type and size – for example one electricity, which could include bat- would select a power-intensive battery for ancillary services or out- teries, and involves charges related to put smoothing and a more energy-intensive battery for a renewable network access. In individual member energy time-shifting application. states, however, batteries have also been assigned to the end-user net- A valuable insight that Aquila gained from investing in the Toma- work, thus incurring taxes related to komai project was in minimising the developmental lead-time. If it is electricity consumption. The regula- delivered as a pre-installed and containerised system, the battery tory definition of batteries is poten- can be deployed in weeks rather than months. Beltermann: Lithium batteries are a key investment opportunity tially confusing and out-dated. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Technology 15 Three-way storage breaks the mould

he growing need for energy ETES is a sustainable energy-stor- governments attempt to electrify and the system. Heat is taken from the A new energy storage storage systems in a range of age solution that is suitable for a decarbonise sectors such as HVAC surrounding water and ice is formed system capable of Tdifferent applications is driv- wide range of applications world- and district heating. The global de- in the ice storage tank. ing new innovation in energy stor- wide,” said Gut. mand for cooling is set to triple by In the discharging cycle, gaseous supplying electricity, age technology, and MAN Energy The company also believes that it 2050, according to the International CO2 enters the heat exchanger on Solutions believes it has one such will help energy consumers in differ- Energy Agency, largely due to the the cold side of the system where it heating and cooling development: a three-way energy ent parts of the energy value chain to growth in air conditioning use in condenses because of the cold from storage system that can meet large- play a part in combating climate warmer countries. It is in this market the ice-storage tank. The ice in the could shape the scale requirements for electricity, change. “The biggest challenge in that MAN believes its ETES technol- tank melts. The CO2 pump increases heat and cold. building stable, climate-neutral ener- ogy could play a role. the pressure of the CO2 again. The future of the thermal Germany-based MAN’s so-called gy systems is the intermittency of re- The ETES system was borne out of CO2 passes through the heat ex- Electro-Thermal Energy Storage newable energy in power generation an innovation programme involving changer and is heated by the water energy storage (ETES) system uses surplus renew- and supply,” said Dr. Uwe Lauber, some of MAN’s newest recruits, ac- in the hot-water storage tanks. The able electricity to generate heat and CEO of MAN Energy Solutions. “To cording to Patrick Meli, Vice Presi- heat from the heated CO2 is fed into market. cold for storage in insulated reser- match an increasing consumer de- dent, Head of Compressor Engineer- the power turbine where it is con- voirs during a ‘charging cycle’. The mand for energy with a fluctuating ing at MAN Energy Solutions. verted back into electrical energy Siân Crampsie heat and cold can be converted back supply, the world needs reliable en- As Meli explains, MAN runs a via a coupled generator. The elec- into electrical energy on demand, or ergy-storage systems.” programme, called ‘Future Innova- tricity flows into the grid and is dis- distributed to different types of Energy storage technologies are be- tion’, in which its young engineers tributed to consumers. consumers. ginning to make their mark in the en- are asked to come up with ideas and According to MAN, there are nu- The ability of the system to store ergy system, helping energy compa- solutions that will be relevant to the merous uses for the stored heat, in- electricity, heat and cold is unique, nies and energy consumers alike world in 10-15 years’ time. The en- cluding within the process industries according to Prof. Dr. Hans Gut, manage intermittent renewable elec- gineers have a year to work on their or for district heating. Among other Managing Director of MAN Energy tricity production and energy costs. ideas and build a business plan, possible applications, the cold can be Solutions Schweiz AG, and is also a Batteries, in particular, are becoming which are then presented to the used to cool data centres, for cold factor that will make it appeal to a increasingly viable in a global energy company’s board, including the storage or the air-conditioning of During the charging cycle the broad range of customers. “Due to storage market estimated at 6 GW in CTO and CEO. buildings. “We see this as an energy system uses surplus renewable the high overall efficiency, the mod- 2017, according to IHS. “ETES came from this pro- management system that can pro- electricity to generate heat and ular character of the system and its There is, however, a growing de- gramme,” notes Meli. “We realised it duce heat, cold and electricity,” said cold for storage low impact on the environment, mand for thermal energy storage as was an interesting idea and could see Meli. “We have been looking at ap- the potential for it, so we started de- plications where these three elements veloping it in further detail.” are needed – for example the food Those development plans included industry and chemicals.” patenting the idea, but MAN hit a Data centres are another big draw bump in the road when it discovered for MAN due to their need for cool- that it had already been patented – by ing and a need to reduce their carbon ABB. It was keen to start discussions footprint. If they are located close to with ABB about taking the technolo- cities then they can feed the stored gy forward on a commercial basis, heat into district heating systems. but had to first wait for the Zurich- “We have presented this idea to data based technology firm to resolve le- centre owners and they like it,” noted gal issues surrounding its patent. Meli. ABB received the go-ahead in ear- Mega-cities in regions such as ly 2017, and the two companies Southeast Asia and South America started talks over the use of the pat- are also an option, according to ent and developing ETES as a com- MAN, as they have significant re- mercial system. MAN learned that quirements for heat, cooling and ABB’s idea was to use ETES for electricity. The ETES system is ideal electricity storage applications only, in such applications, says Meli, be- but found that the business case was cause of its 5-10 MWe size range. not exploited to its full potential. “ETES can generate 70-80 MWth in MAN could see the demand for total, and store energy for several three-way energy storage, and so the hours, creating a 300 MWh system,” two companies signed a cooperation said Meli. agreement in April 2018. MAN has not yet demonstrated The cooperation agreement allows ETES at a commercial scale, but has MAN to use the patent under licence confidence in the system to work ef- to develop, produce and commercia- fectively and reliably. This, in part, lise the ETES technology. comes from the use of proven tech- The ETES system consists of a tur- nology that the company has been bo-compressor, heat exchange equip- using for many years in other indus- ment, hot water storage tanks and ice tries such as oil and gas. The chal- storage tanks. It uses carbon dioxide lenge has been the process design. gas as the medium for energy trans- “We are sure that we have the right fer, a factor that sets it apart from components and the right design,” some other energy storage systems. said Meli. “We have been through “With CO2, you are talking about a several design reviews and we are temperature level of 120°C to -4°C convinced that the system will work. in the system, temperatures that can “The main challenge for us is on be used directly in most industrial the customer side, and asking them and commercial applications,” said to think out of the box and in a dif- Meli. “Other energy storage systems ferent way from what they are used create much higher and lower tem- to doing.” peratures because they do not use Meli added: “Following the Paris carbon dioxide, and this creates more Agreement on climate change, it is complexity.” no longer enough to think about your In the charging cycle, MAN’s her- system on its own; energy users need metically-sealed turbo-compressor to think about the bigger picture and HOFIM (High-Speed Oil-Free Inte- ETES can help them to do this.” grated Motor-Compressor) turns sur- Potential customers can also be plus energy from renewable sources nervous about the use of CO2, ac- to compress CO2, which is heated to cording to Meli, who points out 120°C. The CO2 is fed into a heat ex- when you come from a background changer and heats the water. The hot in the oil and gas industries, working water is stored in insulated, isolated with CO2 is nothing special. “Com- tanks, each one at a separately de- pressing CO2 is not so hard,” says fined temperature level. Still under Meli. “We are used to it.” high pressure, the CO2 is fed into an MAN has yet to sell an ETES unit expander, which reduces the pressure but says that it is currently in contact so that the CO2 is liquefied and with a number of potential custom- cooled. The liquefied CO2 is again ers. “We are sure we will find a part- pumped through a heat-exchange ner soon who sees the advantages of During discharge, heat and cold can be converted back into electrical energy on demand system, this time on the cold side of it,” Meli says. THE ENERGY INDUSTRY TIMES - AUGUST 2018 Final Word 16 Here comes the sun ith record temperatures be- Michael Waldron, one of the lead trend. According to the IEA, unit costs than the rural population, which is ing set in many places authors of the report commented: “The for solar PV projects, which represent generally poorer. It makes sense from Waround the world last share of fossil fuels in energy supply 8 per cent of total energy investment a social development point of view month, farmers, gardeners and even investment actually ticked upward worldwide, fell by nearly 15 per cent but is also a blockage to, for example, the hardiest sunbathers have been from 58 per cent last year to 59 per on average, thanks to lower module developing mini-grids based on solar praying for a little less sun and a bit cent in 2017. This was in stark contrast prices and a shift in deployment to energy in those areas because you more rain. For those dependent on to a significant fall in previous years. lower-cost regions. Investment none- cannot recover your investment Junior Isles solar power or planning to ramp up Previously, this figure was up at around theless rose to a record level. based on that subsidised tariff.” solar in the energy mix, the feelings The ultimate effect of this is that the may be a little different. These condi- population remains unconnected by a tions are ideal for maximum solar “There is hardly any scenario going forward, which grid and individuals end up paying output. And if such heat waves are looks at energy systems of the future with regard much more through purchasing diesel likely to become more frequent due to decarbonisation, that doesn’t give solar an or kerosene for their energy needs. to climate change, the already bright It is a problem that Wouters says has outlook for solar perhaps just got extremely prominent role.” been recognised in countries like brighter – even though global warn- Ghana and Tanzania which now allow ing ultimately spells chaos. more flexibility on tariffs, and in The World Energy Investment (WEI) 68-70 per cent, indicating that there Technology improvements and doing so have increased investment. report, recently released by the Inter- has been a pause in the shift towards government tendering schemes are Taking a broader look at the require- national Energy Agency (IEA), makes the investment in clean energy.” facilitating economies of scale of new ments for solar growth in various interesting reading. After years of a This is partly due to the rapidly de- projects in some markets: in emerging countries, Wouters added: “There’s an strong shift from fossil fuel investment clining cost of renewables. But solar economies outside of China the aver- interesting dynamic that I’ve observed to clean energy sources, the report says PV, along with offshore wind, was one age size of awarded solar PV projects over the last 10 years. A number of that this trend could be slowing. of the most notable exceptions to the rose by 3.5 times over the five years things have to be in place: you need through 2017. availability of credit; a stable regula- The figures indicate that solar – at tory framework; a fair number of in- least solar PV – is not only here to stay, stallers and commercial companies but looks set to play a key role in the that offer the technology; and you need global decarbonisation effort. a certain level of awareness about what Commenting on the future of solar, it can do. If all of these are in place, Frank Wouters Director at the EU- then markets really explode. And GCC Clean Energy Network and there’s not a single market in the world Global Head of Solar at professional that does not have that potential.” services company WorleyParsons This observation is borne out by the said: “There is hardly any scenario range of countries where WorleyPar- going forward, which looks at energy sons is doing work. It is working on systems of the future with regard to the 700 MW concentrated solar decarbonisation, that doesn’t give power (CSP) Dewa 4 project in Dubai solar an extremely prominent role. – a $4 billion project that is the largest The main reason for that is because of its kind in the world. Wouters notes it can be applied everywhere.” that the company is doing similar Certainly solar energy can be applied things in Chile, South Africa and in gadgets such as watches and calcu- other African countries. lators, to rooftops of houses, and over Even in parts of Europe that, current the last several years, to massive solar weather conditions aside, do not have power plants. In a growing number of the best conditions for solar, the countries, falling cost is seeing solar technology is well placed to play an become the cheapest from of utility important role in the future energy scale electricity generation. mix. A key part of the bloc’s proposed But it is not just about cost; solar PV’s new Renewable Energy Directive versatility is what makes it interesting. going forward is the right for citizens It should also not be forgotten that it to produce their own electricity. This has the potential to lift the more than will make it more difficult for member 1 billion people without access to states to give priority access to bulk modern energy out of energy poverty power producers over individual solar – the technology that is used to charge systems on roofs. a phone or a lamp can also be used to The solar industry has also shown operate a water pump for agriculture. that it can achieve greater efficiencies Wouters noted: “When you combine through, for example, managing sup- it with new financial models and new ply chains and increasing scales, models of billing, you see massive which will help even greater future growth in places like rural Africa as cost reductions. well as in Asia and Latin America.” Wouters commented: “Prices at the Africa has long struggled when it moment are pretty accurate in the comes to making progress on energy sense that solar PV has a learning rate access, particularly access to electric- that dictates that if you double the ity. Nearly 675 million of the conti- amount [of modules] that you produce, nent’s population lacks access to the you go down in price by 23 per cent. grid, around 600 million of which are And as you keep increasing the num- in sub-Saharan Africa. ber you produce, you keep reducing Waldron commented: “There is a the cost per kilowatt-hour of solar. very good reason for this; power He believes the industry “has cracked companies in [sub-Saharan] Africa it” for solar PV but still has some way can’t adequately recover their costs. to go on CSP. “Solar CSP has a much They’re not able to undertake reliable smaller footprint – about 5 GW glob- fixed investment to the grid and ser- ally compared to more than 300 GW vice reliable off-takers of power gen- of solar PV,” he said. “It’s at a much eration. This raises risks to investment earlier stage of development so there’s for both the state-owned side and the still a lot of work to be done – even private side. This is a major reason we though it’s also still pretty competitive, haven’t seen a pickup in demand for as we’ve seen with Dewa 4. At night electricity – it is very much tied to time that project provides CSP elec- electricity prices and the presence of tricity at 7.4 ¢/kWh and at 3 ¢/kWh subsidies in a lot of these markets.” during the day with solar PV.” This was echoed by Wouters. “Even And if the climate scientists are in places where solar is now competi- right, it’s a technology that will also tive to some extent at the wholesale get a little extra help from the level, you still need the regulatory weather. Many experts believe that framework. You need a level playing these heat waves will become more field in the market to make it work. In frequent over time. And more sun many African countries, they have a means more solar. It is somewhat cross-subsidy in the electricity sector, bizarre to think that here is a technol- where companies and people in the ogy that is helped by the very phe- bigger cities usually pay a higher tariff nomenon that it seeks to prevent. Cartoon: jemsoar.com