THE ENERGY INDUSTRY May 2019 • Volume 12 • No 3 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES

Sleepless nights? Getting closer Final Word and digitalisation are Europe’s Clean Energy Package We live in a rebellious two areas that are keeping energy should bring markets closer together climate, says Junior Isles. executives awake at night. but some of its provisions need further Page 16 Page 13 clarification. Page 14

News In Brief Wind to become “truly global market” in five years National Plans The Global Wind Energy Council forecasts that 300 GW of new wind capacity will be added globally by 2024. Page 2 will not deliver Opportunity Zones offer tax breaks A tax break offered to investors in so-called ‘Opportunity Zones’ may provide extra capital for renewable energy developers in the USA renewables as other support mechanisms are phased out. Page 4

Coal still part of balanced energy mix target The Philippines still sees as an important part of its future energy mix, as developers continue to outline plans for future coal fired WindEurope’s Giles Dickson says none of the power plants. plans properly spell out policy measures Page 6

Ofgem addresses supplier The EU has concluded negotiations on its Clean Energy Package but recent research shows that rules A series of company collapses in the National Plans might not deliver the previously agreed 32 per cent renewables target. Junior Isles UK’s energy retail sector has forced Europe’s draft National Energy and this. But none of the Plans properly simplifying rules on planning and per- Another issue the Plans need to ad- the regulator to revise the rules for Climate Plans are insufficient to de- spell out the policy measures by which mitting, such as common sense re- dress is how to get more renewables new entrants. liver the EU’s 32 per cent renewables countries will deliver on the objec- strictions on distance or into heating and transport. This is es- Page 7 target for 2030, according to analysis tives they outline.” tip height. This is key, as obtaining sential for the decarbonisation of en- released by WindEurope. European countries agreed last year permits for new wind farms is becom- ergy, because heating and transport Congo wins support for The analysis shows that some EU to draw up National Energy and Cli- ing increasingly difficult and more accounts for three quarters of energy green mini-grid countries are pledging to deploy mate Plans to ensure Europe delivers expensive in many parts of Europe. consumption. But the draft Plans pro- The Democratic Republic of good volumes of wind in their Plans. on its climate and energy targets. The National Plans are supposed to vide few detailed proposals or mea- the Congo is to boost off-grid But the Plans are badly lacking in the WindEurope’s analysis rates every detail not only new renewables capac- sures for electrifying heating and renewables with the implementation detailed policy measures that will de- country either insufficient or poor for ity but also what countries will do transport. No European country has of a green mini-grid programme. liver these pledges – which means the the policy measures outlined in the with renewables that come to the end planned to simplify corporate renew- Page 8 pledges are not meaningful, says the draft Plans. of their operational life between now able Power Purchase Agreements organisation. Most of the draft Plans give no and 2030. For wind the latter is up to (PPAs), which is explicitly mandated EC fines GE over WindEurope CEO Giles Dickson long-term visibility on renewable en- 60 GW. But no country provides poli- in the Renewable Energy Directive. ‘misleading’ LM information said: “Europe has a clear target: 32 per ergy auctions, doing little to support cies to deal with this. And only six The report came as the EU ratified GE will pay a €52 million fine cent renewable energy by 2030. Each investment certainty. Only Germany countries even recognise the issue its Clean Energy for All Europeans following an investigation by country has now drafted a National provides an auction schedule to 2030. (Belgium, Denmark, France, Germa- the European Commission into Plan saying how they’ll contribute to Nor does any country commit to ny, Italy and Spain), said WindEurope. Continued on Page 2 information provided by the American firm during its 2017 takeover of LM Wind. Page 9 Financial sector warned on climate risks A recent report has warned that climate gap by making climate-related data announcing they would either tighten to finance independent coal power Technology: GT26 gets a change could wipe out $20 trillion publicly available. rules on financing new coal fired producers,” said Yelland. HE upgrade worth of assets globally. Following this report, an open letter, plants or not finance them at all. In late March, UBS Group AG said it GE has launched a significant According to the report by the Net- published on behalf of the Bank of In April, Standard Bank became the would no longer provide project-level upgrade for the GT26 . work for Greening the Financial Sys- England, Banque de France and the latest finance corporation to stop fi- finance to new coal fired power plants The high efficiency (HE) upgrade tem (NGFS), there is still a significant Network for Greening the Financial nancing coal fired power plants in the around the world, as it outlined tighter will deliver improved efficiency, amount of analytical work to be done System, called for the financial com- future, unless they met strict parame- rules on funding such transactions. power output and flexibility while in order to equip central banks and munity to act on recommendations ters set by the bank. It was the second Switzerland-based UBS noted it reducing maintenance costs for its supervisors with appropriate tools to provided by the NGFS to ensure the to do so in the space of a week. will only finance existing coal fired customers – the first of which will be identify, quantify and mitigate cli- transition to a low carbon economy. Energy expert Chris Yelland said it operators – defined as being more Uniper, at its plant in Enfield, UK. mate risks in the financial system. To The letter, in support of the report, appeared as if all the major banks than 30 per cent reliant on coal – that Page 15 address the issue, the NGFS says it states that the catastrophic effects of were pulling out of funding coal fired have a transition strategy that sup- will prepare a number of technical climate change are “clearly visible” plants. “Nedbank, First Rand, and ports the Paris climate agreement, or Advertise documents. around the world and that financial now Standard Bank – which has been transactions that are related to renew- [email protected] The report provides a number of rec- policy makers and prudential supervi- on the cards for some time – have all able energy. UBS said its carbon-re- ommendations for central banks and sors cannot ignore the “obvious” risks. pulled out.” Standard explicitly stated lated assets amounted to $2.7 billion Subscribe supervisors, including integrating cli- Banks have already been taking ac- it would not be funding the Thabam- in 2018, down from $6.6 billion a year [email protected] mate related-risks into financial sta- tion to reduce carbon-related assets. etsi or Khanyisa plants in South Afri- before. Climate-related sustainable or call +44 208 523 2573 bility monitoring and micro-supervi- In recent months, there has been a ca. “It is a significant move by all the investments totalled $87.5 billion, up sion. It also recommends bridging the growing wave of financial institutions banks as they are under pressure not from $74 billion in 2017.

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 - MAY 2019 2 Headline News

Continued from Page 1

Package (CEP) aimed at enabling Wind to become “truly global the bloc to realise the energy transi- tion, follow up on the 2030 climate legislation and meet the Paris Agreement commitments. market” in next five years At the end of March, the Euro- pean Parliament completed the par- liamentary approval of the new The Global Wind Energy Council forecasts that 300 GW of new wind capacity will be added Electricity market Regulation and globally by 2024. The falling costs of offshore wind and energy storage are both contributing Electricity market Directive as well as of the Regulations on Risk Pre- factors. paredness and on the Agency for the Cooperation of Energy Regulators between 58.7 GW and 65.1 GW in 4 per cent of the total, though Spain storage outlook 2019: 2018 year-in- (ACER). The Governance of the Junior Isles 2021-2023 (see page 11). In that pe- and Poland will pick up this year. review and outlook to 2024’, the glob- Energy Union Regulation the re- riod, offshore wind is expected to WindEurope CEO Giles Dickson al energy storage market is forecast to vised Energy Efficiency Directive, installations globally in reach the 10 GW mark for annual said: “Wind energy got 60 per cent of reach 158 GWh in 2024, marking a the revised Renewable Energy Di- the next five years will amount to more installations for the first time. GWEC’s all the new investments in power gen- 13-fold expansion from 2018, with the rective and the Energy Performance than 300 GW, including roughly 40 forecast is for 9.9 GW and 10.1 GW eration capacity in Europe last year. US and China taking leading positions of Buildings Directive entered into GW of offshore wind, according to of offshore wind additions in 2022 And it was a record year for the in terms of deployments. force last year. the 14th edition of the Global Wind and 2023, more than double the 4.5 amount of new wind energy capacity Commenting on the report, Ravi According to the EU, the revised Report by the Global Wind Energy GW of new capacity in 2018. financed. Cost reduction means inves- Manghani, Wood Mackenzie Power Directive will put consumers at the Council (GWEC). “If governments remain committed, tors now get more MW per euro they & Renewables Research Director, heart of the transition – giving them In 2018, market-based mechanisms, offshore wind will become a truly invest. And lenders are more comfort- said: “From 2013 to 2018, we saw more choice and greater protection. such as auctions, tenders and Green global market in the next five years,” able with the risks so the costs of fi- fledgling market growth. This was Consumers will be able to become Certificates were the main drivers be- said Ohlenforst. nance are falling too.” reflected in a global GWh compound active players in the market thanks hind new capacity. Aside from regula- In a separate report WindEurope said Wind power growth is also being annual growth rate (CAGR) of 74 per to access to smart meters, price tion and government targets, future Europe invested €27 billion in new facilitated by reducing energy storage cent, although we did observe rela- comparison tools, dynamic price growth is expected to be driven by wind farms in 2018. According to its costs. Recent statistics prepared by tively small deployment totals of contracts and citizens’ energy com- changing business models of industry annual ‘Financing and Investment research firm BloombergNEF (BNEF) 7GW/12GWh for the period. munities. At the same time, energy participants, corporate procurement Trends’, the amount invested is similar show that the levelised cost of electric- “Nevertheless, these developments poor and vulnerable consumers outside of mature markets, and value- to previous years but thanks to cost ity (LCOE) for lithium-ion batteries have shifted the minds of global regu- will enjoy better protection. focused solutions, such as hybrid gen- reductions, especially in offshore wind, has dropped 35 per cent to $187 per lators, policy makers, grid operators, The revised Electricity Regula- eration plants, GWEC said. it will finance a record 16.7 GW of MWh, which creates new opportuni- asset operators and developers, in tion is designed to enable electric- GWEC Market Intelligence Director new wind capacity. The report says ties to balance a renewables-heavy terms of how energy systems can be ity markets to integrate renewables Karin Ohlenforst commented: “2018 that 1 MW of new onshore wind capac- generation mix. balanced... More than half of the GWh and attract investment in resources was a good year for the global wind ity now requires only €1.4 million Falling storage costs will see the mar- during this period came online in 2018 like energy storage and demand re- industry, with installations remaining capital expenditure, down from €2 mil- ket for the technology grow signifi- alone, beckoning an inflection in stor- sponse that can compensate for vari- above 50 GW.” lion in 2015. And 1 MW of new off- cantly in the coming years. A report age demand.” able energy production. The market New capacity in 2018 was 51.3 GW, shore wind capacity requires €2.5 mil- released by Wood Mackenzie Power The US and China will be respon- must also provide the right incen- slightly below the level of the previous lion, down from €4.5 million in 2015. & Renewables last month showed how sible for around 54 per cent of all tives for consumers to become more two years. GWEC expects a jump in The UK was the biggest investor, energy storage has been creeping into deployments by 2024. Next will come active and to contribute to keeping installations to 65.4 GW this year and mostly in offshore wind. Sweden was decarbonising markets over the past Japan, Australia and South Korea, fol- the electricity system stable. to 66.8 GW in 2020. Annual wind second. Investments in Southern and five years. lowed by Germany, Canada, India and The new Electricity Regulation capacity additions will then range Central and Eastern Europe were only According to its ‘Global energy the UK. also brings stricter and harmonised rules for capacity mechanisms, thus reconciling the EU objectives of security of supply and emission reduction. Enhanced regional co- ordination will improve market Study shows 100 per cent renewables functioning and thereby competi- tiveness while making the system more stable. Under the new rules, new thermal competitive with conventional system power plants emitting more than 550 gCO2/kWh will not be allowed A new study claims to prove that the Energy”, co-funded by the German electrification in all energy sectors. The n 100 per cent renewables are more to benefit from the capacity mech- transition to 100 per cent renewable Federal Environmental Foundation total will be four cost-effective: The energy costs for a anism, while existing power plants energy is economically competitive (DBU) and the Stiftung Mercator, to five times higher than electricity fully sustainable energy system will emitting more than the 550 gCO2/ with the current fossil and nuclear- comprises state-of-the-art modelling, generation in 2015. Accordingly, elec- decrease from €54/MWh in 2015 to kWh threshold will be allowed to based system, and could reduce green- developed by LUT University and tricity consumption in 2050 will ac- €53/MWh in 2050. participate in capacity mechanisms house gas emissions in the energy computes a cost-optimal mix of tech- count for more than 90 per cent of the n The transition in all sectors will re- until July 2025 only. system to zero even before 2050. nologies based on locally available primary energy consumption. At the duce the annual greenhouse gas emis- The Risk-preparedness Regula- The study by the Energy Watch renewable energy sources. same time, consumption of fossil and sions in the energy sector continu- tion increases the resilience of the Group and LUT University is the first It determines the most cost-effective nuclear energy resources in all sectors ously from roughly 30 Gt CO2-eq. in EU electricity system and the Reg- of its kind to outline a 1.5°C scenario energy transition pathway for global will cease completely. 2015 to zero by 2050. ulation on the Agency for the Co- with a “cost-effective, cross-sectoral, energy supply on an hourly resolution n The global primary energy genera- “The report confirms that a transition operation of Energy Regulators technology-rich global 100 per cent for an entire reference year and struc- tion in the 100 per cent renewable en- to 100 per cent renewables is possible (ACER) enhances ACER’s role of renewable energy system that does not tured in 145 regions. The global en- ergy system will consist of the follow- across all sectors, and is no longer more coordinating regulatory authorities build on negative CO2 emission tech- ergy transition scenario is carried out ing mix of energy sources: solar expensive than the current energy sys- of Member States. nologies”. The scientific modelling in five-year time periods from 2015 energy (69 per cent), wind power (18 tem,” said Hans-Josef Fell, former Announcing the finalised CEP, study simulates a total global energy until 2050. The results are aggregated per cent ), hydropower (3 per cent), Member of the German Parliament and Commissioner for Climate Action transition in the electricity, heat, trans- into nine major regions of the world: bioenergy (6 per cent) and geothermal President of the Energy Watch Group. and Energy Miguel Arias Cañete port and desalination sectors by 2050. Europe, Eurasia, MENA, Sub-Saharan energy (2 per cent). “Thanks to the developed model and said: “Today’s approval of the new It is based on four and a half years of Africa, SAARC, Northeast Asia, n By 2050, wind and solar power will the extensive existing database, EWG electricity market design will make research and analysis of data collec- Southeast Asia, North America and account for 96 per cent of the total and LUT can now also develop na- energy markets more flexible and tion, as well as technical and financial South America. power supply of renewable energy tional roadmaps for the transition to facilitate the integration of a great- modelling by 14 scientists. Some key findings of the study were: sources. Renewable energies are pro- 100 per cent renewables, tailored pre- er share of renewable energy. An The simulation “Global Energy Sys- n The transition to 100 per cent renew- duced virtually exclusively from decen- cisely for the individual countries’ re- integrated EU energy market is the tem based on 100 per cent Renewable able energy requires comprehensive tralised local and regional generation. spective context,” Fell added. most cost-effective way to ensure secure and affordable supplies to all EU citizens. I am particularly pleased that we have agreed on a common framework for capacity EDF nuclear operations could be re-nationalised mechanisms that will ensure such The French government is set to re- exchange and provide a boost to the Levy said in February the government Parr, Chief Scientist at Greenpeace mechanisms will be in line with our nationalise EDF’s nuclear activities, rest of the firm. The authorities want had asked him to make restructuring UK, said: “Those of us who have been climate objectives in the future according to a French media report. to return EDF’s nuclear operations to proposals by the end of 2019. following the disastrous failure of while taking into account legiti- Le Parisien claims President Em- the public sector but not necessarily The strategy committee of EDF’s nuclear power to compete in a free mate security of supply concerns.” manuel Macron is poised to approve buy out minority shareholders in board will review a restructuring plan market in the UK will not be surprised The regulation now has to be for- the re-nationalisation, rolling back the EDF’s other activities. for the group on May 28, the French that France isn’t finding it easy either... mally approved by the Council. It partial privatisation of the electricity The restructuring measures would daily reported, adding that this would And renewable energy costs have now will then enter into force immedi- provider in 2004, which left the state be an attempt to ring-fence the nucle- be followed by presentations to a group plunged well below the level nuclear ately (with a date of application of with an 83.7 per cent stake. ar division, including its nuclear reac- of 200 top managers on June 7 and to can ever hope to compete with. Only 1 January 2020 for the Electricity According to reports, the government tors, wholesale market activities and union representatives on June 20. governments, using cash from the un- Regulation) and has to be trans- has been looking at how to restructure possibly large hydropower dams, Le EDF shares rose as much as 4.3 per witting tax-payer, have pockets deep posed into national law within 18 EDF to isolate its volatile nuclear busi- Parisien reported. cent following the news. enough and hearts soft enough to keep months. ness from the pressures of the stock EDF Chief Executive Jean-Bernard In response to the reports, Dr Doug this industry limping on.” THE ENERGY INDUSTRY TIMES - MAY 2019 3

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Hosted by THE ENERGY INDUSTRY TIMES - MAY 2019 4 Americas News Opportunity Zones offer developer tax breaks n New opportunities emerge as PTC and ITC wane n Energy storage support scheme proposed

Siân Crampsie supporting renewable energy projects. “There will be a high level of de- the Energy Storage Tax Incentive and The proposals were widely wel- Both schemes are being phased out. mand for shovel-ready renewable Deployment Act into the US House of comed by the storage industry. A tax break offered to investors in so- Chris LeWand, Global Clean Ener- energy projects, as only investments Representatives, proposing to make “It’s clear that the combination of called ‘Opportunity Zones’ may pro- gy Practice Co-Leader at FTI Consult- made in 2019 will benefit from the full standalone energy storage projects eli- solar energy with storage is the next vide extra capital for renewable energy ing, commented: “While real estate is 15 per cent capital gains reduction,” gible for the same 30 per cent ITC step in the development of a reliable developers in the USA as other renew- the most prevalent target of opportu- added LeWand. “However, post- offered to solar photovoltaic (PV) and clean electrical grid,” said Enrico able energy support mechanisms are nity zone investments, commitments 2019, Opportunity Zones will con- schemes. Ladendorf, the founder of Houston- phased out. are being made to renewable energy tinue to offer significant benefits to The proposals would grant full ITC based energy storage software intelli- The Opportunity Zones programme projects as well, and these are incre- investors from a capital gains deferral eligibility to investments in residential, gence firm Pason Power. “This pro- provides tax benefits for those invest- mental to the capital pool tradition- or avoidance perspective. Moreover, commercial and utility-scale energy posal would enable the deployment of ing in low income areas in the USA, ally available.” as the PTC expires and the ITC steps storage schemes, with the same ramp- solar and energy storage to benefit parts and may help provide renewable en- Opportunity Zones are part of a fed- down in subsequent years, Opportu- down now set for solar – 30 per cent of the country with less consistent sun- ergy developers with an attractive and eral programme. By offering the abil- nity Zones may provide a means for through 2019, 26 per cent in 2020, and shine primarily by not requiring the competitive source of capital, accord- ity to defer and eliminate up to 15 per certain renewable energy investors to 22 per cent in 2021. batteries to only charge from solar ing to FTI Consulting. cent of unrealised capital gains taxes, enhance returns, given the tax incen- The incentive would then be phased production. Renewable energy developers in the and to remove taxes on capital gains tives available.” down annually before levelling off to “Also, with the current state of the US are currently facing the closure of going forward for so-called “Quali- Last month US lawmakers unveiled a standard, permanent 10 per cent tax prices of batteries, an ITC credit ap- the investment tax credit (ITC) and fied Opportunity Funds” (QOFs), the proposals that include energy storage credit after 2021 for commercial proj- plied to standalone batteries has the production tax credit (PTC) schemes programme aims to boost investment technologies in the ITC scheme. ects and would zero out for residential potential to make the business case for as a way to revitalise struggling areas. Rep. Mike Doyle (D-PA) introduced projects. standalone storage even stronger.” Argentina prepares RenovAr 4 Argentina’s government has con- It has also spurred the development firmed it is working on developing the of a local supply chain to support the next round of the country’s RenovAr wind energy sector and underpin renewables tender scheme. long-term market development. Argentina’s Treasury said last Argentina’s Undersecretary for Re- month that Round 4 of RenovAr newable Energy and Energy Effi- PV marches would be introduced later this year ciency, Sebastian Kind, told delegates and will include renewable energy at a reent wind energy conference in capacity as well as transmission grid Spain last month that the details of the investment projects. round four tender were still being RenovAr was introduced in 2016 examined. He also explained that the and has so far brought forward 3.7 exact amount of renewable energy GW of wind power capacity from 63 capacity to be procured had not yet on in Americas projects and $5 billion in investments. been determined IFC backs Brazil gas-to-power complex The IFC has agreed terms for a loan Siemens is responsible for the deliv- that will play a major role in helping ery of the complete power island with Brazil to diversify its energy sources. three H-class gas turbines, one steam The bank says it will provide a $288 turbine, four generators and heat re- million, 15-year loan to UTE GNA I covery steam generators and instru- Geração de Energia (GNA I) for the mentation and control systems. development, construction and op- According to the IFC, GNA I will eration of an integrated liquefied support the diversification of Brazil’s Government support mechanisms are attractive propositions as battery supportive policies, falling technology to power (LNG-to-power) energy matrix, enhancing system re- spurring the growth of solar photovol- system costs decline further,” said costs, increased end-user awareness, facility in Porto de Açu, in the State silience, promoting energy security, taic (PV) capacity in the Americas. Maria Benintende, Senior Analyst for market maturity, and higher electricity of Rio de Janeiro, Brazil. and contributing to reliable and afford- According to Frost & Sullivan, auc- Energy & Environment at Frost & prices. Benintende notes that in Brazil, The GNA I project, expected to start able energy. GNA I will also displace tions and net metering schemes, cou- Sullivan. Mexico, and Chile, especially, matur- commercial operation in 2021, con- coal and other carbon intensive ther- pled with increasingly competitive In the USA, the solar market is fore- ing DG schemes are creating signifi- sists of an integrated 1.3 GW com- mal power plants, reducing Brazil’s prices for solar equipment, are driving cast to expand at 8 GW to 10 GW per cant opportunities for equipment sup- bined cycle gas turbine (CCGT) carbon footprint by an estimated 139 growth in key markets, including the year until 2022. Despite the restraint pliers, installers, and other energy power plant, an LNG import marine 000 tons of CO2 equivalent emissions USA, Chile, Mexico, Argentina and due to import duties, utility-scale in- participants. terminal, a transmission line, and the annually. Colombia. stalled capacity will continue increas- “Renewable auctions are key to so- expansion of an existing substation. GNA I is the stepping stone to the Annual installations of PV capacity ing due to low system costs. lar development in the region,” noted The project is part of the largest LNG- first fully integrated private natural gas in these markets are expected to grow In March, a local government in the Benintende. “The investments in so- to-power complex in Latin America, hub in Brazil and one of only a few in at 5.5 per cent, generating $141.2 bil- US state of Virginia gave the green light lar in 2018 are estimated to have and is being built by Gás Natural Açu Latin America. The development of lion in annual investment by 2022, to the construction of a 340 MW solar touched $4.2 billion across the Latin (GNA) at Port of Açu. such a hub is critical for increasing the Frost & Sullivan says in its latest mar- farm development by sPower. Mean- American countries; however, to Siemens announced last month that competitiveness of Brazil’s natural gas ket research. The annual installed ca- while RES announced it has broken make the most of their potential, sup- it has secured an order for the turnkey sector, which has recently been opened pacity reached 12.8 GW in 2017, and ground on its Southern Oak solar farm pliers need to develop a strong local construction of the facility’s CCGT. to private sector investment. the total generation capacity, which in the state of Georgia. strategy.” Siemens – which owns one-third of GNA I is IFC’s third LNG-to-power currently stands at 59.0 GW, is likely At 160 MW, Southern Oak will be In Argentina, PV has become an at- GNA – will provide its H-class gas investment in Latin America, after to more than double to 141.3 GW by the largest bifacial solar project in the tractive technology thanks to renew- turbine technology for the plant, which AES Cólon in Panama, and CELSE’s 2022. USA, using LONGi’s bifacial modules able energy auctions and the emer- it will operate and maintain under a Port of Sergipe in Brazil. LNG-to- “The multiple supportive mecha- and NEXTracker’s single axis tracker gence of a market for power purchase long term service agreement. The proj- power has been identified as a global nisms and electricity regulatory frame- racking system. agreements (PPAs). However, current ect is Siemens’ first fully integrated strategic aim for IFC in supporting works across the region have made According to Frost & Sullivan, an- bottlenecks in transmission grids, LNG-to-power project of this scope. countries to reduce carbon intensity market participants diversify strate- nual additions of distributed genera- coupled with financial and economic Siemens will build the CCGT in of power grids, favour further pene- gies, encouraging business model in- tion (DG) PV installations will outstrip constraints, increase risks, affect fund- partnership with Brazilian construc- tration of renewables, and diversify novation. Solar PV and storage expan- utility-scale at a compound annual ing and, therefore are slowing down tion company Andrade Gutierrez. generation. sion will become increasingly growth rate of 9.9 per cent, driven by solar PV expansion. THE ENERGY INDUSTRY TIMES - MAY 2019 5

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The Energy Industry Times is the only publication that covers global news related to the power and energy THE ENERGY INDUSTRY sector in a newspaper style and format whose uniqueness is recognised by our readers. www.teitimes.com TIMES As a paid subsciber you will gain full access to our online news desk. You will also no longer have to wait for the printed edi- tion; receive it by PDF “hot off the press” or download it online. To subscribe, email [email protected] or visit subscribe today www.teitimes.com To guarantee receiving your monthly copy of the award winning newspaper, you need to subscribe today THE ENERGY INDUSTRY TIMES - MAY 2019 6 Asia News Coal still part of balanced energy mix Progress with plans for new coal fired plants illustrate the Philippines’ desire to keep coal as part of its energy mix. Syed Ali The Philippines still sees coal as an The company said it would therefore in AA Thermal Inc.,” the power firm capacity by 2020 through our balanced commitment to coal, SMC noted, important part of its future energy mix, continue to consider putting up the said. mix strategy.” however, that it is also focused on as developers continue to outline plans 4x150 MW circulating fluidised bed Under the deal, Aboitiz Power will The company also announced that it investing in battery energy storage for future coal fired power plants. (CFB) coal fired power plant in Mariv- take stakes in GNPower Mariveles has opened a new coal fired power systems (BESS) and renewable en- In April, San Miguel Corp. (SMC) eles, Bataan, and the 600 MW coal Coal Plant Ltd. Co., the owner and op- plant in Toledo City, Cebu, which will ergy projects as part of its objective announced that it intends to continue power plant in Pagbilao, Quezon. erator of an operating 2x316 MW coal add 170 MW of supply in Visayas. to operate in an environmentally re- developing clean coal power plants. Separately, Aboitiz Power Corp. plant in Mariveles, Bataan, and in GN- The second unit of the project will be sponsible manner while considering SMC Global Power said it plans to also indicated it would continue to Power Dinginin Ltd. Co., the devel- online in May to add another 170 MW. energy security and affordability. expand its portfolio through strategic invest in thermal power generation. oper and owner of a 2x668 MW super- The project uses CFB technology “SMC Global Power also actively development of greenfield power proj- Last month it inked a $300 million critical coal plant project in Dinginin, and best available control technology seeks to identify and pursue renewable ects and acquisition of existing power facility agreement with four interna- Bataan currently under construction. to minimise emissions. energy investments in hydro electric plants. tional banks to partially finance its Aboitiz Power COO, Emmanuel Ru- Meanwhile, final work is ongoing and solar projects, subject to the out- In setting up new projects, SMC said acquisition of a share in AC Energy bio, said: “Aboitiz Power is committed on the 335 MW Unit 3 expansion of come of viability and feasibility analy- it would not close the door on coal fired Inc.’s thermal portfolio. to addressing the country’s energy tri- the Masinloc power plant. The plant ses,” the firm said. Last year, SMC power plants, particularly clean coal “The proceeds of the loan will be used lemma of adequate supply, cost of being built by SMC is expected to President and COO Ramon Ang said technology, which it says “remains the to partially finance the acquisition by power, and protection of the environ- commence commercial operation the company is targeting up to 10 000 most reliable and cost-efficient fuel Aboitiz Power of a 49 per cent voting ment. This is part of our strategy to during 2Q of 2019. MW of new renewable energy capac- source for greenfield power projects”. stake and 60 per cent economic stake reach our 4000 MW net attributable While announcing its continued ity in the next 10 years. Vietnam eyes more wind power capacity The Vietnamese government is aiming been accelerating wind power expan- capacity of 412 MW. the inauguration of the 37.6 MW Mui to go into operation this month. to raise wind power capacity to 1000 sion with existing wind farms yielding As much as 4236 MW to be produced Dinh wind power plant. Ninh Thuan Vietnam has set a goal of 10 per cent MW by 2020 and 6200 MW by 2030 a combined capacity of 197 MW. by wind farms nationwide has been has attracted many wind and solar renewables integration by 2030 and with a view to optimising the use of In addition, construction on many added to the country’s power develop- power projects, with a combined ca- took an important step to facilitating this renewable energy for enhancing wind farms has begun, which is ex- ment plan while there are some 10 279 pacity of 2800 MW. As many as 18 that goal with the award of a battery the country’s socio-economic develop- pected to increase the total capacity MW of wind projects registered. solar projects and three wind power storage feasibility study to GE’s En- ment and energy security. to 263 MW. Many more projects are Most recently, German wind, solar plants are under construction in the ergy Consulting business. The study is In a bid to step up green growth and waiting for approval from authorities. and decentralised project developer locality. Nine projects with a combined being funded by the US Trade and De- sustainable development, Vietnam has Once granted, these would add a total EAB New Energy GmbH announced capacity of 600 MW were scheduled velopment Agency (USTDA). Australia continues to transform energy sector n First ever delivery of green hydrogen to Japan n Online platform will make it easier for small solar generators to sell power on spot market Pakistan looks to Syed Ali and export facilities make us the ideal calculates bills and manages loads for state to lead the future production and its customers. Australia is making progress in trans- export of hydrogen,” she added. Oxamii is targeting farmers who have forming its energy sector, with signifi- Palaszczuk also announced $250 000 existing solar energy they want to sell boost renewables cant announcements that demonstrate in funding for the establishment of a on the market, or farmers looking at its continued shift towards a cleaner, renewable hydrogen pilot plant at the gaining a second source of income more advanced power sector. Redlands Research Facility. through establishing a solar farm. In late March Queensland celebrated The use of solar to produce hydrogen n Australian researchers are develop- share the state’s first ever delivery of green is further evidence of the importance ing short-term weather forecasts for hydrogen to Japan, marking a signifi- of solar in the country’s energy future. solar farms to help them precisely Pakistan is planning to increase the energy capacity by 2030 could limit cant step forward for its hydrogen in- In a move that will be significant in predict output as little as five minutes share of renewables in its total power the expansion of coal fired capacity dustry. The Queensland government advancing solar deployment, in April in advance. The $A1.2 million proj- generation mix to 30 per cent by 2030 of over 5 GW. It also noted that the also said it plans to release its Hydrogen Oxamii, a startup based in Adelaide, ect, which officially started in April, under a plan suggested by the country’s new policy should include a strategic Strategy later this year. announced that an online platform to will use data generated by real-time new government. action plan creating a favourable en- Exported by JXTG, Japan’s largest connect medium to small-scale solar sky cameras, satellite images and sta- In a recent announcement the World vironment for coordination between petroleum conglomerate, the hydro- energy producers with independent tistical modelling to design a world- Wind Energy Association (WWEA) various departments in the renewable gen was produced at QUT’s solar cell electricity buyers will launch in the first, short-term forecasting model to proposed to lift that share from the energy sector. facility, located at the Queensland gov- coming months in South Australia. more accurately predict weather con- current 4 per cent by enhancing gen- During the last week of February, ernment’s Redlands Research Facility. The company said it has developed ditions from five minutes up to two eration from wind, solar, small hydro the Cabinet Committee on Energy “This demonstration of renewable a system to make it easier for owners hours. University of South Australia and biomass plants. The share of large- (CCoE), chaired by the Finance Min- hydrogen being successfully exported of solar arrays producing a minimum Professor of Environmental Mathe- scale hydropower (more than 50 MW) ister, approved proposals from the overseas is an exciting first step in pro- of 200 kW to sell power on the spot matics John Boland said inaccurate is also set to expand to 30 per cent Ministry of Energy (Power Division) ducing and exporting hydrogen at a market. short-term forecasts relating to wind from around the current 25 per cent. for all future renewable energy proj- commercial scale in the future,” Founders Aaron Yew, Luke Marshall and solar generation have cost Aus- Pakistan’s Cabinet Committee on ects to be treated under the Renewable Queensland Premier Annastacia and Ray Carclaw have secured a num- tralia’s renewable energy sector about Energy is expected to approve the Energy Policy 2019. The new policy, Palaszczuk told Parliament during a ber of investors for the online platform $5 million in the past decade. He said country’s 2019 renewable energy whose guiding principles have al- hydrogen showcase event. “My gov- and plan to launch before July. precise self-forecasting would also policy that will include all future re- ready been approved by the CCoE, is ernment’s commitment to backing Their platform connects buyers and help solar farms with battery storage newable energy projects. According to being reviewed by different stake- renewable resources combined with purchasers by making Oxamii the capabilities predict when best to sell WWEA the government’s plan to have holders and will be formally adopted our existing gas pipeline infrastructure agent that monitors energy flows, or store their electricity. around 18 GW of installed renewable by the CCoE later. THE ENERGY INDUSTRY TIMES - MAY 2019 Europe News 7 EPRs set for more delays Finland’s Olkiluoto 3 EPR nuclear plant suffers a fresh setback.

Siân Crampsie (EPR) project is already a decade be- connection to the grid was planned to agreement with Areva-Siemens over Nuclear Safety Authority is expected hind its original schedule and under take place in October 2019. costs and losses caused by delays to to order the repair of defective welds There are likely to be further delays the most up-to-date- programme, had “Although this new schedule review the project. The settlement included or additional studies to ensure their to the startup of the Olkiluoto 3 (OL3) been due to start generating electric- informed by the plant supplier is dis- compensation of €450 million, to be longer-term reliability. nuclear power plant in Finland after ity in January 2020. appointing of course, it is crucial that paid in two instalments. Local media suggested that the re- the Areva-Siemens consortium in TVO said in a statement that modi- the commissioning tests will be per- In November last year, Areva-Sie- pairs could add up to two years to the charge of building the project an- fication outage work during the first formed with utmost care. We will have mens became liable for a further €18 project schedule. nounced a schedule review. quarter of the year had not progressed a modern and safe plant, and the final million in compensation payments Construction began at Flamanville OL3 owner Teollisuuden Voima Oyj according to schedule and therefore phases of the commissioning will be after further delays to the project were in 2007, and it was originally expect- (TVO) said that Areva-Siemens are fuel would not be loaded into the reac- done in cooperation with the plant announced. ed to commence operation in 2012 but planning to publish an overall rebase- tor before the end of August 2019. supplier,” explained Jouni Silven- Last month French newspaper Le it may not now open until early 2020 line schedule for the final phases of According to the schedule, nuclear noinen, TVO’s Director of the OL3 Monde reported that the Flamanville or 2021. It was originally expected to the 1600 MW project in June. The fuel was planned to be loaded into the project. EPR project is likely to experience cost €3.5 billion, but the cost has now European Pressurized Water Reactor reactor in June 2019 and the first In March 2018 TVO signed an further delays because the French risen to €11 billion. Pension fund sees Ofgem addresses growth in renewables

Plans by Norway to allow a major pen- the Government Pension Fund Glob- sion fund to invest in unlisted renew- al has confirmed that investments in supplier rules able energy infrastructure schemes are unlisted renewable energy have a expected to gain parliamentary ap- sound cash position, healthy exit strat- proval this summer. egies and a positive outlook,” said The Government Pension Fund IEEFA finance director Tom Sanzillo. n Ofgem plans further consultation on retailer standards Global (GPFG) is the world’s largest “This is a growth industry. Invest- pension fund at $1 trillion, according ments by the fund now allow it to take n Price cap squeezes supplier margins to the Institute for Energy Economics advantage of this growth and to use and Financial Analysis (IEEFA), and its resources to develop the market for has announced a major policy change decades. that will enable it to take advantage of “Moreover, Norway will tighten its growth in the renewables sector. coal criteria which will lead to the di- The policy change is a “significant vestment of large mines and coal-ex- step” and will be presented for parlia- posed power companies. This is a mentary vote in Oslo in June, IEEFA strong step for the health of the Fund said. and the planet.” In an official statement, Norway’s Norway’s decision to tighten its cri- Minister of Finance Siv Jensen empha- teria for divesting from companies sized that the approach was based on invested in coal mining and coal fired financial rather than environmental power generation could lead to divest- considerations, “[It] is not a climate ment from companies such as Glen- policy measure, but part of the invest- core Plc, Anglo American Plc, BHP ment strategy for the Fund.” Group Ltd., RWE AG and Uniper SE, “After a three-year diligence process, among others. Tees CCGT gets go-ahead The UK is set to add around 2 GW of which would also be carbon capture new gas fired generating capacity af- ready, could play an important role in ter authorities approved a major new the regeneration of the Tees Valley by A series of company collapses in the major shareholders and senior manag- in 2011 to 73 in June 2018. Over this project in the north of England. helping to attract major new, energy UK’s energy retail sector has forced ers are “fit and proper” to hold a li- period, the combined market share of The Tees combined cycle power intensive business to the area.” the regulator to revise the rules for new cence to operate, and that they are able the so-called ‘Big Six’ energy suppli- plant is the second power project this Gas power plants can provide flexi- entrants. to provide a proper level of customer ers fell from almost 100 per cent to year to gain a development consent ble and rapid sources of generation to Ofgem says that fees for energy com- service. 75 per cent. order from the UK government fol- back up intermittent renewables but panies wanting to enter the UK retail Ofgem also said it would carry out a The recent introduction of an energy lowing approval of the 299 MW Mill- development of new gas capacity in market will rise five-fold this summer further consultation this year on stan- price cap has put increased pressure on brook Power open cycle gas turbine Europe has been slow due to low and they will also have to show that dards within existing suppliers. companies operating in the already (OCGT) project. power prices. they have sufficient funds to trade for Energy UK’s Chief Executive, Law- fiercely competitive market. Professor Tees will have a maximum capacity Drax Group announced that its pro- 12 months. rence Slade said: “We welcome mea- David Elmes, leader of the Warwick of 1700 MW and will make use of the posed Millbrook power plant in Bed- The move follows the collapse of 11 sures from Ofgem to introduce tough- Business School Global Energy Re- existing gas and National Grid con- fordshire had been approved in March small UK energy suppliers over the er entry tests for new suppliers entering search Network, said that the price cap nections on the site of the former Tees- 2019. The plant will be designed to last 12 months. There are concerns the retail market. We want to see a was making it “increasingly hard for side in Middlesbor- go from cold to full load in less than that new market entrants are not ro- future retail market where competition large and small companies to see a vi- ough. Developer Sembcorp Utilities 20 minutes, enabling it to respond bust enough financially to withstand thrives and customers benefit from able future” and made it hard for Of- UK said that consent for the project quickly to support the grid. swings in wholesale market prices. increased choice and service, and gem “to keep a market going”. was “a significant step forward”. “Rapid response gas power stations Others have been accused of offering aren’t left picking up the tab when sup- Energy market analysts ICIS indi- “It’s an important stage in what has are agile enough to ramp up quickly unsustainably low prices and poor pliers with unsustainable business cated last month that the energy price been a considerable effort over the past and support the grid at times of peak customer service. models fail.” cap – which limits the maximum price year to get to this point,” said Stephen demand, making them highly comple- Other criteria to be imposed under The number of new suppliers in the suppliers can charge consumers for Hands, Senior Vice President and Site mentary to intermittent renewable Ofgem’s new rules for market entrants UK’s domestic energy market has energy – is likely to fall in October 2019 Director at Sembcorp Utilities UK. sources of power, like wind and solar,” include showing that their directors, risen sharply in recent years, from 14 due to falling wholesale energy prices. “However, we believe this plant, said Andy Koss, Drax Power CEO. THE ENERGY INDUSTRY TIMES - MAY 2019 8 International News Eskom addresses project finance challenges South African utility Eskom has set aside capital to address rising costs and delays at two coal fired power stations that are still under construction.

Siân Crampsie would press ahead with fixing design challenges because of its precarious each to complete Medupi and Kusile, load shed up to 4000 MW. The utility problems at both sites because the ben- financial position. and at least another 60 to 66 months to is unable to service its debts because Eskom board chairman Jabu Mabuza efits of continuing outweighed the In March the South African govern- do so. It estimates that the penalties it of falling revenues, and received a $5 told local media last month that the costs of not continuing. ment conceded that the power crunch could pay to halt construction of the billion bailout from the South African state-owned utility has allocated R4.5 The decision comes in the wake of was largely due to a lack of mainte- power stations would be around R8 Treasury in February. billion ($310 million) to address the several weeks of power shortages in nance of Eskom’s ageing infrastructure billion. Last month the treasury said that the challenges it is facing at the Medupi South Africa that have forced Eskom and that the utility had not spent enough The two power plants have so far cost New Development Bank (NDB) and Kusile power projects. to implement power alerts and load on maintaining equipment over the R290 billion to build, double their would provide a project loan of $480 The move follows a review of the two shedding. past five years. Public Enterprises Min- original budget. When completed, they million for environmental protection projects by Eskom under mounting The shortages were prompted by re- ister Pravin Gordhan also said that the will add 9600 MW to South Africa’s equipment at Medupi, which was due pressure to abandon the builds, which peated faults in its power plant fleet, delays at Medupi and Kusile were due grid. to start operating in 2015. are five years behind schedule and over including newly-commissioned units to the power stations being badly de- In March Eskom said that more than NDB has also agreed $180 million budget. Addressing the media at Es- at Kusile in Mpumalanga Province. signed and badly constructed. one-quarter of its 45 GW of installed of funding with Eskom to support 670 kom’s Lethabo power plant in the Free The company is continuing to struggle According to Eskom, it will cost an generating capacity was off-line for MW of renewable energy capacity State, Mabuza said that the company to overcome its ongoing operational additional R18 billion ($1.25 billion) unplanned maintenance, forcing it to development. ADB supports Saudi Arabia set to Uch-Kurgan upgrade be wind A $100 million finance package has of that amount at the moment. been agreed by the Asian Develop- “We expect the Uch-Kurgan to pro- ment Bank (ADB) to assist the mod- duce 20 per cent more power when the ernisation of the Uch-Kurgan hydro- work is completed.” power plant in the Kyrgyz Republic. The Kyrgyz Republic is a clean en- heavyweight Uch-Kurgan is the oldest of the six ergy hub in Central Asia, supplying 90 hydropower plants installed along the per cent of the region’s hydropower. Strong political commitment to renew- Mackenzie Power & Renewables Se- ables request for proposals after pre- Naryn River cascade. ADB’s assis- In 1995, the Kyrgyz Republic export- able energy will help power Saudi nior Analyst. “Moving forward, the developing the sites.” tance, consisting of a $60 million loan ed more than 2000 GWh to Kazakh- Arabia to becoming a regional heavy- Renewable Energy Project Develop- PIF is believed to have an estimated and a $40 million grant from the Asian stan, Tajikistan, and Uzbekistan, weight in the wind power sector. ment Office (REPDO) will award 850 $230 billion of assets, which it plans Development Fund, will enable the which have since declined to less than New research from Wood Macken- MW of wind capacity in 2019, which to boost to $2 trillion under Vision modernisation of ageing equipment half that, ADB said. zie Power & Renewables shows that is expected to be commissioned in 2030, driven by investments in vari- and improve power generation capac- Uch-Kurgan hydropower plant, lo- developers in Saudi Arabia will build 2021-2022, and increase the local ous sectors from electric vehicles to ity at the plant. cated 271 km southwest of the coun- 6.2 GW of wind capacity – 46 per cent content requirement in future tender- public infrastructure. The project will help to strengthen try’s capital Bishkek, began operating of the region’s total wind capacity ad- ing rounds.” “There is little doubt about the Fund’s the Kyrgyz Republic’s energy self- in 1962 and was used as a baseload dition – between 2019 and 2028. Wood Mackenzie also states in its financial muscle, however, its past in- sufficiency and increase its potential plant. Since then, no major improve- However, in spite of cost parity be- report that Saudi Arabia will fall short vestment strategy focused on estab- for renewed energy exports to neigh- ment works have been undertaken. tween wind and solar photovoltaic of its current 2030 renewable energy lished firms in traditional industries,” bouring countries in Central Asia. The modernisation project will re- (PV) technologies, political commit- target. It recently revised its targets Malik said. “Aspirations to develop a ADB will also administer a $45 mil- store full operation of all four generat- ment in Saudi Arabia appears to fa- upwards and earmarked 70 per cent value chain for wind and photovoltaic lion loan from the Eurasian Develop- ing units of Uch-Kurgan with an in- vour solar, Wood Mackenzie said in of targeted capacity to the Public In- [PV] technologies locally is a different ment Bank for the project. creased total capacity of 216 MW, its report, ‘Middle East Wind Power vestment Fund (PIF), the Saudi sov- ball game and requires the PIF to ac- “The modernisation of the Uch- from the original generating capacity Market Outlook, 2019-2028’. ereign wealth fund, with the remain- quire new capabilities for effective Kurgan hydropower plant supports of 180 MW. It will also finance the “Despite offering comparable prices ing capacity to be awarded through oversight of these ventures.” the government’s strategy to reha- reinforcement of the plant’s hydraulic and more rigorous industrial develop- REPDO. Growth in the wider Middle East’s bilitate existing power plants to in- steel structure and dam infrastructure ment opportunities, the wind power “A central concern is the PIF’s lack wind power market is expected to slow crease clean energy production,” said while making all eight bottom outlet capacity target is set at 16 GW by 2030 of track record in the renewables sec- down in 2019 amid regional volatility ADB Principal Energy Specialist gates operational. and solar PV at 40 GW, indicating the tor and its limited in-house sectoral but demand will return to steady Sohail Hasnie. “The Kyrgyz Republic Removal of undertaking silt and government’s preference for the lat- expertise,” said Malik. “REPDO, on growth post-2020, according to Wood has the potential to generate about 150 sedimentation will also be carried out ter,” noted Sohaib Malik, Wood the other hand, completed two renew- Mackenzie. TWh of clean electricity per year, but to help restore proper operation of the it’s producing only about ten per cent plant’s hydromechanical equipment. Congo wins support for green mini-grid The Democratic Republic of the Con- Genema. In the longer term, the pro- averages 24.6 per cent on-grid elec- sector and deliver high development roll-out of off-grid and mini-grid so- go is to boost off-grid renewables with gramme is aiming to supply power to tricity coverage, according to AfDB. impact. lutions at scale, Daniel Schroth, acting the implementation of a green mini- cities with sizeable populations, some Upon completion, the envisioned He observed that while helping to director of renewable & energy effi- grid programme. of them with a few hundred thousand mini-grids that range from 3 to 10 MW eradicate the use of diesel fuel in the ciency at the African Development The programme will serve as the inhabitants, without any access to will directly connect 21 200 house- target communities, the programme Bank, said recently. pilot to an innovative private-led elec- modern energy. holds and 2100 SMEs and public will also foster the country’s transition The AfDB is a strong supporter of trification approach to deploy renew- With limited grid coverage – around buildings, benefitting at least 150 000 to low-carbon growth. Africa’s power sector and has devel- able-based mini-grid solutions across 10 per cent nationally – many Congo- people. Despite Africa’s significant resourc- oped financing instruments for engag- the country, and will be supported by lese rely on kerosene or diesel fuel for Amadou Hott, the AfDB’s Vice- es endowments, close to 600 million ing the off-grid and mini-grid sector a $20 million facility from the African their lamps, cookers and electricity President for Power, Energy, Climate people on the continent, mostly in through its sponsorship and anchor Development Bank (AfDB). generators. Less than one per cent of Change and Green Growth said the sub-Saharan Africa, are still without investment in the Facility for Energy The AfDB funding will support re- rural and 35 per cent of urban areas Bank’s financial support to DR Con- access to electricity. Meeting the uni- Inclusion (FEI), a $500 million debt newable-based, mini-grid solutions to have access to electricity from the go’s off-grid electricity programme versal electricity access objective financing facility targeting small scale the off-grid cities of Isiro, Bumba and national grid. Sub-Saharan Africa would transform the country’s energy within the next decade will require the renewable projects. THE ENERGY INDUSTRY TIMES - MAY 2019 Companies News 9 stabilises with loan deal The signing of a 12-month, €100 million loan facility has given Senvion the lifeline it needs to continue operations and complete its planned business transformation.

Siân Crampsie debtor-in-possession (DIP) facility has lenders and main bond holders for their Chile and Argentina and nearly 110 over €1 billion of debt. Its transforma- “received board approvals and allows support in agreeing to provide us with MW in Australia. Senvion also built tion plan includes programmes to re- German wind turbine maker Senvion substantial drawings already this week, a DIP facility that will enable us to and installed its first turbine in India. focus operations, concentrate on the has shored up its finances with a €100 thus enabling the company to stabilise continue our operations,” said Chief Senvion embarked on a restructur- most attractive markets, streamline the million loan facility from its main lend- its business operations and provide Executive Yves Rannou. ing programme in January 2019 and product portfolio, improve installation ers and bond holders. funds to its non-insolvent subsidiaries.” Rannou said that the loan facility maintains that it has a fundamentally execution and realise efficiency gains The loan came in mid-April and just The company added that it would was “particularly helpful” as the com- sound and strong business model. The in the service business. days after Senvion said it had filed an stay in the self-administration pro- pany had managed to significantly trading environment for wind turbine At the end of first quarter 2019, Sen- application in Germany for self-ad- ceedings, which enable its manage- increase installations in the first quar- makers has been challenging, how- vion’s total installed capacity under ministration proceedings, a pre-emp- ment to retain control of the business ter of 2019, installing 366 MW world- ever, with strong competition and fall- service amounted to 14.1 GW. It main- tive insolvency process. with oversight from a supervisor act- wide in the period, more than twice as ing prices globally. tains close to 80 per cent of this capac- In a statement dated April 17, Sen- ing on behalf of creditors. much as a year ago. Senvion has also faced delays and ity, with an order book of around €2.8 vion said the 12-month, €100 million “We would like to thank both our Deployments included 120 MW in penalties related to big projects. It has billion. Saft targets China for battery EC fines GE over scale-up ‘misleading’ LM Battery firm Saft says that a new joint in China, the world’s largest renew- venture will help it to expand its op- ables market, as well as in the ESS erations and meet growing demand segment as an essential component to for its products in China’s electric the large scale development of inter- vehicle (EV) and energy markets. mittent renewable energies,” said Saft, a subsidiary of French energy Patrick Pouyanné, Chairman and information giant Total, has created a joint venture CEO of Total. “The joint venture will with Chinese firm Tianneng Energy allow Saft to join forces with a Chi- Technology (TET) to expand lithium nese partner, a world leading lead acid n LM merger approval stands ion (Li-ion) battery manufacturing in battery manufacturer, willing to de- China. velop its lithium-ion activities. n Fine in line with “serious infringement” The joint venture will be 60 per cent “It will also give Saft access to Chi- owned by TET and 40 per cent by Saft, na’s booming battery market as well GE will pay a €52 million fine follow- misleading information for merger “GE committed an infringement by with manufacturing based at the as highly-competitive mass produc- ing an investigation by the European investigations. According to the Euro- negligently providing incorrect infor- Changxing gigafactory, with a poten- tion capacity to accelerate its growth.” Commission into information pro- pean Commission, GE notified it of its mation in the merger notification tial capacity of 5.5 GWh. It will pri- “We are delighted to start building vided by the American firm during its plans to buy LM Wind in January 2017, form,” the Commission said in a state- marily focus on the development, a long-term partnership with Tian- 2017 takeover of LM Wind. but said that it did not have any higher ment. “The Commission considers that manufacturing and sales of advanced neng with a shared industrial vision,” The European Commission says that power output wind turbine for offshore this infringement is serious because it Li-ion cells, modules and packs for said Ghislain Lescuyer, Saft CEO. GE provided misleading information applications in development beyond prevented it from having all relevant China and worldwide markets. “This joint venture will allow us to to regulators who were reviewing the its existing 6 MW turbine. information for the assessment of the E-bikes and EVs, as well as energy make a step-change and significantly $1.65 billion takeover of the Danish However, through information col- transaction. storage solutions (ESS) will be the increase our footprint in the Chinese rotor blade manufacturer. “Our merger lected from a third party, the Commis- “Moreover, the Commission con- target markets, Saft said. Li-ion market that will represent over assessment and decision-making can sion found that GE was simultane- siders that GE, with whom it had “This is a first strategic move driven 40 per cent of the global demand by only be as good as the information that ously offering a 12 MW offshore wind continuous contacts during the merg- by Total, following the acquisition of 2025 and to develop our worldwide we obtain to support it,” said Commis- turbine to potential customers. er review process, especially on the Saft in 2016, to grow Saft’s activity activities.” sioner Margrethe Vestager, in charge GE then withdrew its notification of subject of GE’s pipeline products in of competition policy. “Accurate infor- the acquisition of LM Wind, and later this market, should have been aware mation is essential for the Commission GE re-notified the same transaction, of the relevance of the information to take competition decisions in full this time including complete informa- for the Commission’s assessment, knowledge of the facts. tion on its future project. and of its obligations under the merg- “The fine imposed… on General The European Commission ap- er regulation. Therefore, GE’s breach Electric is proof that the Commission proved the deal in March 2017. of procedural obligations was a seri- takes breaches of the obligation for The Commission can impose fines of ous infringement. companies to provide us with correct up to one per cent of the aggregated “On the basis of these factors, the information very seriously.” turnover of companies, and takes into Commission has concluded that an EU merger regulations require com- account the nature, gravity and dura- overall fine of €52 million is both de- panies to provide correct and non- tion of infringements. terrent and proportionate.” Statkraft tie-up with redT for solar-plus-storage Statkraft is to join up with energy stor- such a product, financed under a pow- They will sell the generated electric- providing low-risk energy savings to n Statkraft says it will stop investing age firm redT energy plc in a new part- er purchase agreement (PPA), is of- ity from the facilities under 25-year commercial energy users, and creating in wind power in Norway after it com- nership that will offer solar-plus-stor- fered on the UK market, according to power purchase agreements (PPAs) an effective, hedge against rising en- missions three new wind farms in the age solutions for UK commercial and a statement from redT last month. with Statkraft. The latter will also pro- ergy prices,” said Neil O’Brien, ex- country. It plans to complete the Fosen, industrial clients (C&I). The companies will initially install vide flexibility optimisation services ecutive chairman of redT. Kvinesdal and Remmafjellet projects The two companies have signed 10 MWp of solar photovoltaic (PV) using its in-house . Statkraft and redT estimate the C&I before shifting focus to building main- heads of terms to partner on the project capacity and 6 MWh of battery storage “With this roll out of low cost solar users opting for the new product will land-based wind farms in other coun- that will see them install solar panels capacity, and are aiming to increase the coupled with heavy cycling, flow ma- be able to reduce energy costs by up to tries in Europe, South America and with redT battery storage at no upfront size of the portfolio to 100 MWp and chine technology, we hope to acceler- 20 per cent over the 25-year term of Asia. The move is due to falling pow- cost. The move will mark the first time 60 MWh over the next three years. ate the deployment of energy storage the PPA. er prices in its home market. THE ENERGY INDUSTRY TIMES - MAY 2019 10 Tenders, Bids & Contracts

Americas rises with Mercury 1 GW of offshore wind projects in build a new cement line in Sokoto, France. northwest Nigeria. Holtec plans Indian Point -based electricity firm The two companies have signed a The plant will not be connected to decommissioning Mercury has signed an engineering, framework agreement for the sup- the grid. The Wärtsilä equipment is procurement and construction con- ply of up to 1000 MW for two off- scheduled for delivery at the end of Comprehensive Decommissioning tract with Vestas for the 119 MW Tu- shore wind farms in France that 2019, and the new plant is expected International (CDI), a joint venture ritea . EMF is developing as a result of the to become operational in mid-2020. company of SNC-Lavalin and Holtec The Turitea wind farm will be first offshore wind call in France in International, has signed a Decommis- Mercury’s first wind asset, adding to 2012. GE to provide IEC with sioning General Contractor Agree- its existing portfolio of hydro and The wind farms are expected to use ment for the Indian Point nuclear geothermal energy resources. It will SWT-7.0-154 DD wind turbine tech- HA technology power plant in New York state, USA. comprise 33 Vestas V112-3.45 MW nology and are subject to contract Israel Electric Corporation (IEC) has Entergy has agreed to sell Indian turbines delivered in 3.6 MW power and a final investment decision by awarded GE a contract for the Orot Point Units 1, 2 and 3 to a Holtec In- optimised mode. EMF. SGRE’s planned offshore Rabin modernisation project. ternational subsidiary, which will Commissioning at the Turitea wind wind turbine manufacturing facility Located in Hadera, IEC’s Orot take over the licenses, spent fuel, farm is scheduled to commence in currently under development in the Rabin project will utilise GE’s HA and Nuclear Decommissioning the second half of 2020. Port of Le Havre will produce the gas turbine technology as part of the Trusts (NDTs) for the three units. NTPC tackles NOx turbines for the projects. conversion of the existing power sta- CDI will be responsible for the de- The agreement also includes a fu- tion from coal to gas generation. The commissioning of all three reactor GE Power India has been awarded a ture provision for SGRE to perform order also includes the steam tur- units. Rs 142 crore ($21.34 million) order wind turbine service for a period up bine, generator, HRSG and balance by Indian government-owned power to 15 years. of plant equipment, as well as a 15- Engie places 361 MW utility NTPC for the supply and instal- year multi-year services agreement. order lation of low nitrogen oxide (NOx) SGRE on track for When operational, the Orot Rabin combustion systems on 10 GW of Hollandse Kust Zuid deal power plant will provide more than Vestas has received a 361 MW order thermal power plant capacity. 630 MW to the Israeli grid, becom- to supply and install 86 V150-4.2 MW The contract is the largest of its Renewable Energy ing the largest and the most efficient wind turbines for the Campo Largo kind to be awarded by NTPC and (SGRE) says it is in final negotiations gas power plant in the country and Phase 2 wind park located at Sento Se will involve in-combustion system to supply its new offshore wind tur- delivering up to four percent of Is- and Umburanas municipalities, in modification of plant boilers by bine technology to Vattenfall’s Hol- rael’s current total power generation Brazil’s Bahia state. staging the combustion air in the landse Kust Zuid (HKZ) 1 & 2 off- capacity. The project’s wind turbines will be furnace to reduce the generation of shore wind farm. It will be the first in the country to locally produced under the Brazilian fuel and thermal NOx during the SGRE is proposing the installation use HA technology. Development Bank (BNDES) combustion process. of its SG10.0-193 DD turbines at FINAME II rules. The nacelles will The modifications will reduce the HKZ site in the Dutch North be manufactured in the facilities that NOx emissions by 30-40 per cent. Sea. It has also signed a contract West Africa boosts energy Vestas holds in State of Ceara, and The project will be implemented with Vattenfall for the HKZ 3 & 4 access the blades and towers will also be over a 30-month period. wind farms, which is subject to the GE Renewable Energy’s Grid Solu- produced in the country. outcome of an auction and final in- tions has signed two deals to build The project is Engie’s first with Pöyry assigned Thai wind vestment decision. energy systems in Benin and upgrade Vestas in Brazil. Turbine delivery is project HKZ 1 & 2 will be the world’s three substations in Côte d’Ivoire. expected to start in the second quar- first zero-subsidy offshore wind In Benin, GE will design and sup- ter of 2020, whilst commissioning is B. Grimm Power Public Company farm. SGRE says that its new 10 ply the first Advanced Distribution planned for the first quarter of 2021. Limited, one of Thailand’s fastest MW technology, announced in Jan- Management System (ADMS) for growing independent power produc- uary 2019, will contribute to a low- the Société Béninoise d’Energie receives Argentine ers, has awarded Pöyry the owner’s er levelised cost of energy (LCOE) Electrique (SBEE) and undertake the order engineering services assignment for in the offshore wind energy sector. rehabilitation of substations and tele- its latest renewable energy project, communication infrastructure at the Nordex has received an order to pro- the 16 MW Bo Thong wind farm, in Eurowind selects Siemens National Distribution Control Center vide 38 turbines from its Delta4000 Mukdahan province, Thailand. for Thorup-Sletten in Cotonou. series for the Chubut Norte II, III & Pöyry’s assignment includes EPC In Côte d’Ivoire, GE will rehabili- IV wind farm in Argentina. bid evaluation and negotiations, en- Siemens Gamesa has signed an order tate and expand three 225 kV substa- The order marks the first overseas ergy yield assessments, project man- with Eurowind Energy for supplying tions in Ferke, Man and Taabo to im- contract for Nordex’s Delta4000 se- agement, design review, and site turbines for the Thorup-Sletten pro- prove the electricity supply in the ries. It was placed by Genneia, a monitoring during construction and ejct, the largest onshore windfarm in northern, western and central part of leading Argentine independent pow- commissioning. The project’s target Denmark. the country. er producer, for which Nordex is commercial operation date (COD) is Siemens Gamesa will provide 18 ADMS is engineered with adaptive currently installing the Argentinean September 2020. units with a total combined output of algorithms and predictive analytics Pomona I & II projects. 77 MW. The turbines will be in- to help utilities operate the grid more Located in the southern Province MHPS signs China TLA stalled west of the Aggersund bridge efficiently and enable automation. of Chubut near Puerto Madryn, the in northwestern Jutland, starting in The system will be able to predict is- newly-ordered 166.4 MW wind farm Mitsubishi Hitachi Power Systems October of this year. sues, identify the faults on the grid will consist of 38 N149/4.0-4.5 tur- has signed a Technology License and propose a restoration plan. bines with an installed capacity of Agreement (TLA) with Chinese firm 4.380 MW each. Installation of the CSIC Longjiang GH Gas Turbine Nexans wins WindFloat turbines is scheduled for the third Co., Ltd. (GHGT) for its H-25 Series deal Marubeni signs Amin PPA quarter of 2019. gas turbines. Nexans says it will supply the turbine A consortium led by Japanese firm The TLA enables manufacture of cables and accessories for the Wind- Marubeni Corporation has signed a the H-25 technology in China, Float Atlantic floating offshore wind 23-year power purchase agreement Asia-Pacific where increasingly stringent envi- farm in Portugal. with Petroleum Development Oman ronmental regulations are driving The 25 MW wind farm is expected (PDO) for the 105 MW Amin solar Voith wins Snowy River the uptake of natural gas and small to demonstrate the viability of float- photovoltaic (PV) IPP project. contract capacity gas turbines. ing offshore wind (FOW) technolo- The Japanese-Omani consortium The deal will enhance MHPS’ gy, and will be the first in the world won the bidding process to develop, Voith Hydro has won a contract to competitive position in the growing operating at 66 kV. finance, build, operate and maintain equip the Snowy 2.0 pumped storage Chinese market, the firm said. Nexans will supply pre-terminated the project, which will be Oman’s power station in Australia. and factory-tested turbine cables as first large-scale solar plant. Voith will supply electrical and Foxwell places Changhua well as the full scope of T-connec- Marubeni owns 50.1 per cent of the mechanical components for the order tors terminating the dynamic inter- consortium, with the remainder 2 GW power plant, which is being array cables. owned by OOFDC (30 per cent), developed by Future Generation, a Vestas has received an order from The WindFloat Atlantic project, Bahwan (10 per cent) and MCS (9.9 joint venture between Salini Impre- Foxwell Energy, a subsidiary of Fox- due online in 2019, will feature three per cent). gilo, Clough and Lane. link Group, and TCC Green Energy, MHI Vestas V164-8.4 MW turbines The order includes the supply of a subsidiary of TCC Group, for the 43 installed on ballasted, triangular, MHPS wins Sharjah order six reversible pump turbines, each MW Changhua wind park in Taiwan. semi-submersible foundations. with a rated output of 333 MW. The project includes the supply Mitsubishi Hitachi Power Systems Three of the units will be variable and supervision of twelve V105-3.6 (MHPS) has received an order for con- speed. It also includes six motor gen- MW wind turbines as well as two International struction of a 1026 MW gas turbine erators, the auxiliary systems and the separate service contracts. Turbine combined cycle (GTCC) power plant complete power plant automation. installation is expected to com- Wärtsilä to supply for the Emirate of Sharjah in the Unit- Snowy 2.0 will provide the Austra- mence in the first quarter of 2020. Nigerian works ed Arab Emirates (UAE). lian national electricity market with The new power plant in the coastal 175 hours of continuous large-scale Europe Technology group Wärtsilä will re- city of Layyah will be equipped with storage. It will connect the two exist- duce the carbon footprint of a Nige- two M701F gas turbines and is due ing dams of the Snowy Scheme, EMF selects SGRE for rian cement facility with the supply of on line in 2021. It is the first in Shar- Tantangara Dam and Talbingo Dam, offshore projects a 48 MW power plant. jah to be financed by export loan through underground tunnels and an BUA Group has placed an order with support from a Japan’s export underground power station with Eolien Maritime France (EMF) has for a new power plant using five credit agency (ECA). pumping and generating capacity. chosen Siemens Gamesa Renewable Wärtsilä 34DF dual-fuel engines MHPS will carry out full turnkey The first power out of Snowy 2.0 is Energy (SGRE) as its preferred sup- running mainly on liquified natural construction of the new facility with expected early as 2024. plier to supply and service nearly gas (LNG) following its decision to its project partner Elsewedy Electric. THE ENERGY INDUSTRY TIMES - MAY 2019 Energy Industry Data 11

WindMarket Statusenergy 2018 market status 2018 New installations onshore New installations offshore For more information, please contact: Rest of World 16% Rest of World 9% Global Wind Energy Council Rue d’Arlon 80 Canada 1% United Kingdom 1% PR China 45% China 40% 1040 Brussels, Belgium Sweden 2% T. +32 2 213 18 97 Mexico 2% Germany 22% [email protected] France 3% 46.8GW 4.5GW Brazil 4% www.gwec.net

India 5%

Germany 5% USA 16% United Kingdom 29%

Total installations onshore Total installations offshore

Rest of World 16% Rest of World 18% United Kingdom 34%

Italy 2% PR China 36% United Kingdom 2% Canada 2% Brazil 3% 568GW France 3% 23.3GW23.1GW China 20% Spain 4%

India 6%

Market Status 2018 Germany 9% USA 17% Germany 28%

Detailed data sheet available in GWEC’s member only area HistoricFor definition development of region see Global of newWind Report installations – Methodology and Terminology GW

26 Historic development of new installations, GW GWEC.NET

CAGR Onshore Offshore +7% CAGR -3% 63.8 3.4 CAGR 54.9 53.5 51.3 +22% 51.7 2.2 4.5 1.5 4.5 45.0 1.2 39.1 40.6 38.5 0.9 0.6 0.9 36.0 1.6 26.9 0.4 20.3 0.3 14.7 11.5 0.1 8.2 6.5 7.3 8.1 0.1 0.1 0.1 0.2 0.3 6.4 7.1 7.9 8.1 11.4 14.6 20.0 26.5 37.9 38.2 39.8 43.9 34.5 50.2 60.4 52.7 49.0 46.8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Market status 2018 Share of offshore ~1% ~3% 5% 8%

HistoricDetailed data development sheet available in GWEC’s of total member installationsonly area GW

HistoricGWEC | GLOBAL WIND development REPORT 2018 of total installations, GW 27

Onshore CAGR 591 Offshore +13% 540 23 19 488 14 CAGR 433 12 +17% 370 319 8 283 7 CAGR 238 5 +26% 198 4 159 3 94 121 2 59 74 1 39 48 1 24 31 -1 -1 -1 -1 0 0

47 58 73 93 119 157 195 234 278 312 362 421 473 522 568 24 31 39 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Share of offshore ~1% ~2% 3% 4%

Detailed data sheet available in GWEC’s member only area

Source: GWEC Global Wind Report 2018, April 2019 28 GWEC.NET THE ENERGY INDUSTRY TIMES - MAY 2019 12 Fuel Watch

Oil Crude Oil Prices - 2019 Settlement Prices For Benchmark Crudes ($/B) Nymex WTI ICE Brent DME Oman OPEC Basket

Price/Barrel US restrictions on $80.00 $75.00

$70.00 Iranian crude adds $65.00 $60.00

$55.00

$50.00 uncertainty on prices $45.00 $40.00

$35.00 n US aims to bring Iranian crude exports down to “zero” $30.00 n Saudi Arabia sees no need to raise output immediately $25.00 Date 12 March 17 March 29 March 5 April 8 April 11 April 15 April 2019 2019 2019 2019 2019 2019 2019

Mark Goetz Iranian crude could find themselves the US have been moving in the lower of Opec is Libya. Production is more the standard Saudi position that more confronting US consequences. $60/b range for several weeks, translat- than 1 million b/d there for now, but a oil would be supplied to any customer There could be some erratic movement The big importers of Iranian crude, ing into higher retail gasoline prices, new round of intense fighting could that requested it. Falih said he is relying in the price of crude oil in the weeks China, India, Japan and South Korea, which never sits well with American impact oil production and exports, re- on oil market fundamentals, not prices, ahead now that the US government has are not expected to find it difficult to motorists. moving more oil from the market. and will remain focused on bringing announced it will not extend the waiv- secure alternative sources of supply, The move against Iran is undoubt- The decision by Opec+ to remove the global oil market back into balance. ers granted to eight Iranian crude oil but it could be hard for Iran’s neighbour edly welcome by Saudi Arabia and the 1.2 million b/d from the market during The International Energy Agency customers last November that are due Turkey to make the switch. Iraq has UAE, Tehran’s primary opponents on the first six months of 2019 has now (IEA) said in late April that markets to expire in May. The US State Depart- already stated that it has no alternative the southern side of the Persian Gulf, gone to 1.5 million b/d actually being are adequately supplied and global ment announced in late April that its to the natural gas and electricity sup- but whether it will move them to boost taken off the market due to Saudi Ara- spare capacity is at comfortable levels. goal is to bring Iranian crude exports plies it receives from Iran, despite con- production remains to be seen. Saudi bia’s additional cuts, helping the price Because of the Opec+ cuts, spare ca- down to “zero”, a move that has made tinuing pressure from the US to stop Arabia has seriously cut output, ex- of Brent crude rise from the low $50/b pacity is around 3.3 million b/d, with Iran resent US President Donald doing business with Iran. Iraq’s south- ceeding in March the amount it had range in January to the mid-$70/b 2.2 million b/d held by Saudi Arabia, Trump even more and prompted Teh- ern Basra district relies on Iranian gas agreed to cut under its deal within range in late April. and some 1 million b/d held by the ran to again threaten to close the Strait supplies to generate just enough en- Opec+. Despite Trump commenting that UAE. of Hormuz at the mouth of the Persian ergy to prevent rioting. Opec production during the month of Opec could “more than make up for” The IEA also said US crude output Gulf. In deciding to cancel the waivers, it March fell to 30.02 million b/d, down any shortfall in the oil market caused would likely increase by 1.6 million Iran is currently exporting about 1.1 appears that President Trump is look- by 534 000 b/d, of which 324 000 b/d by a decline in Iran crude supplies, b/d during 2019, which will put US million b/d, down from 2.8 million b/d ing to gain the approval of Opec lead- came from Saudi Arabia, pushing its Opec plans to wait and see that happens output at some 12 million b/d. in May 2018, and efforts to reduce cur- er Saudi Arabia. As oil prices have output for March down to 9.8 million next. The IEA also noted that global eco- rent volumes of exports will cause risen in recent weeks as a cutback in b/d. The other big drop in March came Saudi Arabia’s Minister of Petroleum nomic growth is becoming increas- serious economic difficulties for the production by Opec and its allies, aka from Venezuela, where the political and Khalid al-Falih said he saw no need for ingly fragile, and consumers and pro- regime. In announcing the end to waiv- Opec+, take effect, Trump has urged economic crisis, and US sanctions, Saudi Arabia or Opec to raise output ducers should take steps to avoid ers, the US State Department warned Saudi Arabia to boost production in forced output to drop by 289 000 b/d to immediately because the waivers have higher prices that could prove painful countries that continue to purchase order to lower prices. Crude prices in 732 000 b/d. Another volatile member been eliminated. Rather he referred to to all. Gas Romania approves development plan for Black Sea gas discoveries Approval of the Midia Gas Development project could lead to Romania exporting gas to other European countries.

David Gregory without domestic demand there is upstream and gas transport industry International Energy Partners and the delivered to Romania’s gas transmis- little incentive to invest in developing may need to take place. European Bank for Reconstruction and sion system operated by Transgas at a Romania’s National Agency for Min- its resources. The European Union is keen to es- Development (EBRD). The company metering station located within the gas eral Resources (NAMR) has approved Furthermore, the government has tablish a new gas transport network and and partners made a final investment processing plant under the terms of a a $400 million development plan put introduced new energy regulations that distribution systems that will ensure decision (FID) on the MGD project in 15-year contract. forward by Black Sea Oil & Gas could jeopardize foreign investment in security of gas supply for Eastern Eu- February despite the new government As the new regulations stipulate that (BSOG) for the Midia gas project in the gas sector. The regulations put a rope by making alternative sources regulations and NAMR approved the 50 per cent of all offshore gas must be the Black Sea. The Midia Gas Develop- cap on some gas prices for local pro- available via new pipelines. development plan in mid-April. sold to a centralised market, BSOG has ment (MGD) will produce 1 billion ducers until 2022 and there is also a 2 MGD and other gas exploration proj- The project is the first gas develop- arranged a long-term contract to sell cubic metres (bcm) of natural gas an- per cent turnover tax on all energy firms ects in Romania’s offshore could even- ment offshore Romania since 1989 and 500 000 m3 of its annual output to a nually, about 10 per cent of Romania’s except state-owned coal fired power tually lead to Romania exporting gas focuses on the Doina and Ana fields, Romanian subsidiary of Engie. domestic gas demand. plants. Producers also have to sell 50 to other European countries through discovered in 1995 and 2007, respec- BSOG last year completed engineer- Romania is almost self-sufficient in per cent of their production to a cen- the planned Bulgaria-Romania-Hun- tively. The fields lie some 120 km off- ing studies and the front-end engineer- meeting domestic demand, which tralised marketplace. gary-Austria (BRUA) pipeline. BRUA shore in 70 m of water and hold an ing and design (FEED) for the project. amounts to about 11 bcm/year. State- The regulations could stall several of is one of the European Commission’s estimated 10 bcm of gas. This year, detailed engineering will be owned Romgaz and OMV Petrom, a Romania’s promising offshore pros- Projects of Common Interest, but there The project, due to deliver first gas completed, fabrication for the Ana subsidiary of Austria’s OMV, account pects. BSOG has objected to the new is little support within state-owned gas in February 2021, will consist of five wellhead platform will begin at the for about 95 per cent of the gas pro- regulations and called for them to be distributor Transgaz for BRUA or new offshore production wells – one subsea Agigea shipyard, and civil construc- duced. Small volumes are imported removed. ExxonMobil, which had pipelines inside Romania. Hungary has well at Doina and four platform wells tion at the Corbu gas processing plant from Russia. planned to start developing the Neptun also said it was not economically viable at Ana. A subsea gas production system will get under way. Romania holds the third largest gas project, has put it on hold. Romania, to extend BRUA into Austria. over the Doina well will connect with BSOG operates two Romanian off- reserves in Europe after the Nether- meanwhile, says it needs to protect Whether the project materialises as an 18 km pipeline to an unmanned shore concessions: XV Midia Shallow lands and the UK, but gas production domestic customers. imagined by the EU is now a question. platform at the Ana field, from where Block and XIII Pelican Block. It is has declined in recent years due to a Romania could make a significant Meanwhile, BSOG appears deter- a 126 km pipeline will transport gas to partnered with private investment lack of domestic demand. This has contribution to the EU’s efforts to pro- mined to move ahead with MGD. an onshore 1 bcm/year capacity gas group Petro Ventures, which holds 20 complicated the country’s situation vide energy security throughout East- BSOG is a Romania-based oil and gas processing plant at Corbu. per cent in the blocks, and Italy’s Gas as a potential gas exporter because ern Europe, but reforms within its company majority-owned by Carlyle The processed gas will then be Plus with 15 per cent. THE ENERGY INDUSTRY TIMES - MAY 2019 Industry Perspective 13 What’s keeping us awake at night? ith the numerous challeng- has a fridge. If each fridge is 100 W, in those areas that they need to think This year’s Issues es facing the energy sector that’s 4 GW. This is 5 per cent of about. Monitor, recently Was it goes through a transi- peak load in Germany. Through digi- “The second aspect is how to dem- tion, there is plenty for energy exec- talisation, you can ‘talk’ to those onstrate a project. Usually, you published by the utives to worry about. For the last 10 fridges and perhaps switch them off would try a small pilot or trial before years, the World Energy Council’s for an hour or so and take them off going into detail. You have to think World Energy ‘Issues Monitor’ has tracked the key the peaks. This means they can act how to connect internal pieces – you issues that executives are working like a massive battery; it’s like a 5 have digitalisation on the trading Council, reveals that on day-to-day, as well as the major per cent of peak load battery. And side, digitalisation to manage the areas of uncertainty, i.e. those that that’s only fridges; there is also cool- grid, and digitalisation on the supply energy storage and “keep them awake at night”. ing and car batteries, etc.” side. They have to think of how to In an era referred to by the Council The Monitor states that digitalisa- virtually connect those to share data digitalisation are as the ‘Grand Transition’, energy tion and artificial intelligence have better. Essentially they have to think leaders must pay attention to the now moved from being a ‘Critical of how to best create an effective in- two key areas that many different signals of change and Uncertainty’ to become an ‘Action novation strategy to take advantage distinguish key issues from the Priority’. This, it said, is a clear sig- of digitalisation.” are keeping energy noise. In producing this year’s Moni- nal that the sector has gained more With regards to storage the Issues tor, over a period of about six experience in making use of this Monitor reveals two major concerns. executives awake at months the Council evaluated nearly technology and the implementation First, innovation presents a massive 2300 survey responses, synthesized is now of high interest. opportunity. For utilities looking to night. Junior Isles expert analyses from member com- The concern in boardrooms, says e-mobility as a way to increase sales, reports. mittees and conducted supplemental Frei, is not just about understanding utilities are hoping that the cost of research across about 90 countries. the innovations that are out there but batteries will fall faster. The other Frei: things that were An important part of the Monitor is also about how to deal with those in- big issue is around the transmission absolutely not on the agenda tracking innovation. Two of the key novations. “Executives are saying: and distribution infrastructure and 8-10 years ago are front and areas of high uncertainty that have ‘this is new stuff; it’s moving fast. how the system will function when centre today emerged from this year’s report How do I deal with this as a compa- the wind stops blowing or the sun year. Decentralised systems are compared to 2018, are digitalisation ny? I have to educate new teams. Do hides behind the clouds. viewed as a solution to deliver socio- and electricity storage – both being I do it in an organic way or in a start- It is more than just a case of hav- economic dividends faster and at driven by the rapid rise of intermit- up way?’ It’s a case of figuring out ing backup supply. Utilities need lower costs than the conventional tent renewables. The 2019 Issues what’s on the horizon and how to technology in their systems that can past solutions. They can offer an at- Monitor found that that many of the deal with it.” react rapidly to abrupt changes to tractive option for closing the energy issues surrounding renewables are He noted that one of the companies avoid instabilities. “These are the access gap more quickly by helping fairly globally aligned, with all the in the survey listed three benefits of issues that companies are looking to meet energy demand in remote regions saying that work related to digitalisation. The first is direct effi- at,” said Frei. “In what parts do I and rural areas, through on-grid and renewables integration is among the ciency gains simply through better need physical storage? How can I off-grid systems. The Monitor notes top action priorities. use of assets. The second is through access that storage? What other that policymakers need to evolve Commenting on the findings, managerial efficiencies – more infor- physical assets, such as capacitors, regulatory frameworks to integrate Christoph Frei, Secretary General of mation from more sensors enables do I need in the network to manage new opportunities and respond to the World Energy Council, said: better decision-making. The third, he those rapid changes or provide fre- evolving energy supply options to al- “Digitalisation and storage are abso- says, is improved capital allocation – quency control? These are the types low for their sustainable deployment. lutely at the top of the ‘keep me digitalisation allows the use of assets of questions we hear around storage Resilience issues such as the ener- awake at night’ issues on the elec- in the best way. and innovation.” gy-water nexus was not a concern in tricity side. The fact that we have an In terms of practical steps to ad- While issues surrounding renew- markets like Europe but was high on increasing amount of intermittent re- dress the key issues, executives are ables emerged as global concerns, the agenda in places like Africa and newable energy makes storage very taking a range of approaches, ac- the Monitor showed that other sig- the Middle East. important. Digitalisation is also ab- cording to Frei. “Firstly, companies nificant worries and related work Cyber security, meanwhile, is a solutely critical when it comes to create their own internal innovation varied by region. huge worry in Europe, North Ameri- aligning the demand side with sup- emphases. At the Council, we have For example, Frei noted that de- ca and parts of Asia but is not impor- ply, as well as leveraging current as- our innovation horizon time and centralisation is higher up the agenda tant in regions or countries where sets in a similar way to storage. companies can also tap into that to in places like Africa. The survey re- there is less mature infrastructure. “If you take Germany, there are 40 get a sense of which areas are critical sponses show greater impact and ur- Market design was another area million households and every one to them and what the innovations are gency in this area compared to last that is keeping executives awake at night. As Frei said: “What does it take from a market design point of view to enable renewable integration or support digitalisation? Who owns that data or who has access to which portions of the data? How do you protect privacy? These are all part of the larger market design discussion.” Questions around sector coupling e.g. between electricity and heat or transport are also high on the agen- da of executives. “There is excite- ment around ‘power-to-x’, said” Frei. “It’s one of those areas where we have really seen some policy pickup. We are seeing a lot of pilots in Germany and Japan as well as framework agreements between, for example, Japan and New Zealand and Australia and Japan.” This year’s Issues Monitor clearly shows, as it has done in recent years, an ongoing transition that is being driven by the 3Ds (decarbonisation, decentralisation, digitalisation). “You can see things that were ab- solutely not on the agenda 8-10 years ago, are front and centre today. The Issues Monitor is a very power- ful place to show those dynamics and see what is actually happening,” Frei noted. No doubt many of these issues will be discussed at the Council’s World Energy Congress in Abu Dhabi in September this year. Commenting on the choice of location for the con- gress, the Council concluded: “As a relatively young nation but with a strong energy heritage, the opportu- nities that innovation and digitalisa- Global perspective on the energy transition tion offer here are massive.” THE ENERGY INDUSTRY TIMES - MAY 2019 14 Energy Outlook Bringing electricity markets closer together

he Paris agreement has set clear been made. For instance, the 2009 connected to distribution networks contributing to the discussion on Europe’s electricity objectives to limit the rise of Third Energy Package introduced and the planned development of how to implement Citizens Energy sector has identified Tglobal temperatures and to pur- network codes to harmonise whole- electric vehicles, DSOs will be the Communities. sue efforts to stay below 1.5°C. The sale market rules, improve cross- ones enabling decarbonisation and As part of the governance regula- its priorities European Union (EU) has so far com- border capacity management and electrification of the economy. The tion, the national energy and climate mitted for 2030 to a reduction of emis- streamline system operation. recent EY report developed in coop- plans should become valuable tools in and key policy sions of at least 40 per cent below 1990 Yet, there is still a patchwork of eration with Eurelectric outlines dif- assessing collective progress towards levels, while establishing targets for nationally regulated energy systems, ferent stages of the DSO evolution 2030 targets and electrification. Eur- recommendations energy efficiency and renewable en- which hinders the prospect of a real towards new business models sup- electric is currently analysing the ergy sources (RES). level playing field at European level. porting the transition. The integration draft plans and will advise the Com- with regard to the In view of defining its trajectory National solutions are mostly a real- of decentralised and new sources, the mission based on the findings. For towards 2050, the European Com- ity for what concerns support access to flexibility through new instance, it is of critical importance different elements mission published its ‘Strategic schemes for RES, capacity mecha- platforms and the full digitalisation of that these plans are clear about how to long-term vision for a prosperous, nisms, generation taxes and retail the grid are the new frontiers of distri- increase the level of electrification but of the Clean modern, competitive and climate- price regulation. bution system operation. also that they assess the potential im- neutral economy’, last November. The recently adopted Clean Energy A clear sign of this is the creation of pact of other policy tools on the EU Energy Package The document outlines six scenarios Package continues to improve the the EU DSO entity. This novel Euro- Emissions Trading System, the Euro- for 80 and 90 per cent greenhouse gas level of integration in the European pean organisation for distribution pean CO2 market. (CEP). Eurelectric (GHG) emissions reductions and two electricity market. Miguel Arias Ca- system operators will contribute to Beyond the improvements brought elaborates on the scenarios where Europe moves to- ñete, EU Commissioner for Climate the drafting of new network codes, by the CEP, major investment chal- wards carbon-neutrality by 2050. Action and Energy, celebrated the especially in the area of flexibility and lenges lie ahead. In a world with key CEP objectives Change and commitment are also agreement, saying: “The agreement cyber security. ramping shares of renewables, a low visible at the level of Member States. on the future electricity market design With the CEP, consumers are also level of wholesale price, including an and outlines what While Sweden has pledged for car- is a vital part of the package. The new put at the centre of the clean energy increase of close to zero or negative bon-neutrality, Austria has an- market will be more flexible and fa- transition. The right to self-produce prices, there is a need to ensure energy, it sees as the main nounced to have a 100 per cent re- cilitate the integration of a greater and self-consume is enshrined in the flexibility and reliability are properly newable production of electricity by share of renewable energy. An inte- new legislation, together with the valued. In several countries, there are drivers and enablers 2030. France has also introduced grated EU energy market is the most customer’s access to a range of tools inadequate price signals both for the legislation to achieve carbon-neutral- cost-effective way to ensure secure to value their flexibility. For instance, closure of plants and for new invest- to achieve these ity by 2050. and affordable supplies to all EU citi- the Electricity Directive allows the ments, including those that are needed The electricity sector is leading zens. The new rules will create more development of innovative demand to ensure security of supply and flex- objectives. Europe’s energy transition. Today, 60 competition and will allow consum- response services, giving consumers ibility. It is unlikely that the CEP will per cent of the electricity produced in ers to participate more actively in the control over their electricity con- provide the necessary long-term in- Blandine Malvault Europe comes from carbon-neutral market and play their part in the clean sumption. Moreover, it provides a vestment signals for a cost-efficient sources and the EU electricity sector energy transition.” clear framework for demand response energy transition. and Marion Labatut forcefully spearheads the energy The functioning of short-term mar- aggregators to operate in the electric- Eurelectric will soon publish its transition. Speeding up its own decar- kets is also significantly improved by ity market, making them responsible analysis of the investment environ- bonisation process, the industry has the CEP. It notably: ensures the non- for the imbalances they might cause. ment in the EU power sector and its pledged to become carbon-neutral discriminatory access to balancing This last provision allows for an effi- diagnosis of the improvements well before 2050 and to help other markets; requires participants to cient overall framework. brought by the CEP. Under the man- sectors decarbonise through electrifi- manage all imbalances; and offers the The CEP also introduces the concept date of the incoming European Com- cation. This will require massive in- possibility to act in the market either of “Citizen Energy Communities” mission, Eurelectric will also focus vestments throughout Europe and individually or through aggregation. and “Renewable Energy Communi- on the review of the energy and envi- rely on the involvement of govern- These changes are key in a system ties”. These Communities will, ronment state aid guidelines, taking ments and regulators to ensure speedy where variable RES play an increas- among other things, give consumers stock of the great achievements of the implementation of the Clean Energy ing role. Market players and consum- the opportunity to organise them- power sector, and the challenges and Package (CEP). The different starting ers must get the right signals to pro- selves and invest in their own means opportunities lying ahead. points of Member States in terms of vide flexibility and be remunerated of generation. Eurelectric welcomes Infrastructure will also be a key is- energy mix will also have to be taken for this service. Moreover, the CEP the new framework set up by the CEP sue: which type of infrastructure into account to ensure a fair and in- establishes a clear framework for the in this regard, as it elaborates key should be deployed and where should clusive transition. The commercial implementation of capacity mecha- provisions for an efficient develop- structural funds go? An electric, inter- availability of transition-enabling nisms, which requires adequacy as- ment of Energy Communities. connected and digital network will be technologies will also be critical. sessments (analysis of the security of While acknowledging the participa- the backbone of a society where Eurelectric’s recent ‘Decarbonisa- supply situation) being made at both tion of a new category of actors in the transport is increasingly electric, tion Pathways’ study finds that the national and European level. market, the text also requires that they buildings become smarter and effi- electrification of transport, buildings Nevertheless, a number of provi- are put on a full level playing field cient, and where industrial sectors and industry is the most sensible way sions in the CEP need further clarifi- with other actors. Energy Communi- adopt electrification, clean hydrogen to curb emissions. In practice, this cation. This is particularly the case ties are therefore subject to fair, pro- or power-to-X. This topic will be means that to achieve deep decar- with those related to capacity alloca- portionate and transparent procedures critical under the next mandate of the bonisation of the EU economy, 60 per tion and congestion management. It and to balancing responsibility. European institutions. cent of all final energy consumption has been emphasized in the two last Moreover, they shall be subject to an This is the year of revitalisation. has to be electric. To get there, elec- editions of ‘ACER Market Monitor- appropriate network tariff reflective With new policymakers making their tricity will massively turn to renew- ing Report’ that interconnectors have of any use of the distribution grid. debut in Brussels, we all take stock of ables. By 2045, the electricity gener- not been utilised to their full potential. The text also requires that consum- what was achieved and establish for- ated from RES is indeed expected to Therefore, the electricity regulation ers who are part of such structures ward looking goals. Who will lead the be over 80 per cent. of the CEP introduced an obligation should be entitled to maintaining their electrification agenda? Eurelectric’s study shows the mag- on Transmission System Operators to rights and obligations as final con- On 20 and 21 May, in Florence, nitude of the investments needed to allocate a minimum of 70 per cent of sumers. Some clarifications will still utility CEOs and industry captains deliver on this journey. On average, a interconnector capacity to the market be required when it comes to the im- will come together with thought lead- total capital investment of €89-111 to maximise the benefits of market plementation of these new provisions, ers, disruptors, customers, policy- billion per year in generation and integration. Yet, Eurelectric and other especially when many Member States makers, consultants and think-tanks storage will be necessary. According stakeholders cautioned against such already have some communities in at this year’s Eurelectric Power to the European Commission Long an approach throughout the legisla- place. Eurelectric is actively engag- Summit to discuss the multi-level as- Term Strategy, if Europe moves to- tive process, arguing that cross-border ing in this assessment and will soon pects of “New Leadership”. Climate wards reaching net zero emissions by capacities should be maximised in a publish its analysis. change, customers’ proactivity, in- 2050 additional annual investments cost-effective manner. It is unsure The actual implementation of the dustry adaptations, technological in- in power grids will amount to around if this ‘one-size-fits-all’ approach will CEP is now critical. The European novations – all have a say about to- €90-100 billion. ensure the most efficient use of inter- Commission is working on the re- morrow’s New Leadership. Over the past few years, there have connection capacity. quired implementing/ delegated acts, been efforts to establish a single Eu- The CEP recognises the central role and Member States and national regu- Blandine Malvault is Advisor Whole- ropean electricity market that allows of distribution system operators lators must also follow suit. Eurelec- sale Markets & Network Codes, Eur- for price signals to trigger invest- (DSOs) in the energy transition. With tric will monitor the implementation, electric; Marion Labatut is Eurelec- ments. Some headway has certainly 90 per cent of new renewables being for example we are currently actively tric’s Director of Policy Issues. THE ENERGY INDUSTRY TIMES - MAY 2019 Technology 15

GT26 gets a HE upgrade

GE has launched n spite of arguments by environ- that GE has taken technology and upgrade is the entire gas turbine – entice Uniper to enter into an agree- mentalists that fossil fuels should capabilities from its F and H class the turbine, compressor and the ment with GE that would see its En- a significant Istay in the ground, gas is predict- fleets to create a solution for opera- combustor. It is the biggest upgrade field plant become the site for vali- ed to continue to play a significant tors of the GT26, developed by Al- the GT26 has seen in 20 years – dation and demonstration of the upgrade for the role in the power generation land- stom. Since GE’s acquisition of Al- since it was developed.’’ upgrade. The unit at Enfield has scape for the foreseeable future. stom, it also represents the first While there has been investment been in operation since 1999 and GT26 gas turbine. In its 2019 ‘Energy Outlook’, BP upgrade that blends GE and Alstom over the years to drive efficiency the upgrade will also add another 15 says that by 2040, the power sector technologies and expertise across all and output, Kulkarni says the HE years to the unit’s life. By incorporating will account for around 75 per cent major components of a gas turbine. upgrade is “a huge step-change”. Eckhardt Rümmler, CEO, Uniper of the increase in primary energy. It Commenting on the rationale be- Although the GT26 architecture SE, said in a statement: “In Great advanced technology also forecasts that 85 per cent of the hind the introduction of the GT26 has been maintained, with the same Britain’s very competitive and chal- growth in energy supply will be gen- HE, Michael Rechsteiner, CEO of rotor and structural parts, the rotat- lenging power generation environ- from its F- and erated through renewable energy and GE’s Power Services business in ing parts and combustion compo- ment, investing to keep our plants natural gas, with renewables becom- Europe, said the new market dy- nents have been changed. competitive by lowering operational H-class machines as ing the largest source of global pow- namics mean there will be more op- GE has re-designed the first three and maintenance costs, at the same well as 3D printing, er generation by 2040. According to portunity for gas going forward. He stages of the low-pressure (LP) tur- time as increasing efficiency and the Outlook natural gas is the only noted this was especially the case in bine. The blade and vanes have im- flexibility, is critical for the long- the high efficiency fossil fuel that will continue to grow Europe, which is preparing for nu- proved aero profiles and the flow term success of our fleet.” its share of global energy demand clear phase-outs in some countries path around the first stage has been During the press launch, Pedro before plateauing and then showing (HE) upgrade will and is seeing higher CO2 prices. enlarged. The intricate cooling de- Lopez Estebaranz, Director of Oper- a decline after 2035. “We believe the installed capacity sign featured in the H-class has also ations CCGT Asset Operations, Uni- deliver improved International Energy Agency fore- of gas [fired generation] in Europe been utilised. per Kraftwerke GmbH, said: “The casts are slightly less bullish but pre- will grow slightly in the next 10 GE has adopted thermal barrier HE has the potential to be a game- efficiency, power dict that the share of natural gas in years,” he predicted. “Actual gener- coatings from the H-class that will changer for us... we have been main- electricity generation remains steady ation from gas assets in the future, allow higher turbine inlet firing taining and upgrading our gas fleet output and flexibility at about 20 per cent. Nevertheless, it however, will be flat. Gas turbines temperature and subsequently better to operate better in the market. We is clear that renewables and natural will have a totally different operat- efficiency. had been operating Enfield as a mid- while reducing gas will dominate the generation ing regime... in the past they were To improve durability, vane 2 has merit plant, running for 3000-4000 landscape, with renewables under- optimised for base load. Today, with been coated with new, more oxida- hour per year. Last year we had in maintenance costs pinning growth in the sector. very low electricity prices and re- tion resistant, material and stage 1 the region of around 150 starts, The situation is even more acute newables coming up, they have to blades feature heat shields that have which is normal in the UK market. for its customers – in Europe, where, according to a re- be able to compensate for fluctuat- an abradable coating that permits Increasing the efficiency will allow the first of which will cent report by Wood Mackenzie ing renewables. So our units today improved clearance control and sub- us to operate for much more hours.” Power & Renewables, coal genera- need the capability to be parked at sequently improved performance. Uniper is seen as an ideal partner be Uniper, at its plant tion was overtaken by wind and so- low load, start-up quickly and GE has also incorporated 3D print- to launch the product. It has an in- lar for the first time in five key Eu- ramped up and down. This is why ing, or additive manufacturing, into stalled base of 4.2 GW of GE units in Enfield, UK. ropean markets last year. we came up with the high efficiency some of the components. This al- across Europe and has another three It said that the uplift in renewables solution to help our customers.” lows very intricate cooling designs GT26 units in the UK – one more at Junior Isles squeezed out supply from coal and The GT26 has an installed base of that cannot be achieved with tradi- Enfield and two at Grain power sta- gas in every market except the UK. about 90 units across 21 countries in tional manufacturing processes. tion – which are potential candidates Although the UK’s renewable share four regions, but mostly in Europe. Kulkarni noted: “The lance at the top for rollout of this technology. Nota- reached an all-time high, nuclear Although designed for base load op- of the SEV (sequential EV) combus- bly, it has also been co-developing outages highlighted the market’s re- eration, a significant portion (28 per tor has 3D printed parts. The frame products with GE since 2012, which liance on gas. cent) of these are now in low utilisa- at the bottom is also 3D printed.” makes it comfortable about hosting It is no wonder then, that genera- tion. At the same time, GE has about GE has also put a great deal of ef- the first unit. tors are still looking at ways to in- 1400 F- and H-class gas turbines in fort into improving the machine’s “It is not the first time we have crease the value of their gas fired operation. operating range through the use of tested new technology working with assets, and gas turbine manufactur- Amit Kulkarni, general manager of devices such as high and low fre- GE,” said Lopez. “We have strong ers are working to improve the F-Class turbines for Power Services, quency dampers. However it manag- engineering capabilities that enable competitiveness of their installed commented: “We had to look at how es to maintain low NOx levels across us to understand the technical risks gas turbine fleet. to make them [the GT26] competi- the wider operating range, in spite of when implementing validation units, In a move that GE is seeing as a tive in the market. This is the first the higher firing temperature in the we have done in the past.’ major step forward, in March it an- upgrade where we are bringing H turbine. While some tests have already nounced the launch order for its technology into an F-class machine. “We have done some interesting been performed on GE’s test rig in new GT26 HE (high efficiency) gas “When we talk about upgrades, things with the burner that allows Germany on components such as the turbine upgrade with Uniper for the we typically do modules – we do better air-fuel mixing so we can stay combustor, the validation of the en- utility’s Enfield Power Station in components. For example, the hot within emissions compliance, while tire unit will be at Uniper’s Enfield The GT26 HE upgrade at a greater London, United Kingdom. gas path of the turbine or the com- giving a wider operability window,” site. Installation is expected during a glance The upgrade marks the first time bustor or compressor. The HE said Kulkarni. scheduled outage in June 2020 and The HE upgrade also has a brand the validation will run for about four new compressor, with 3D aerofoils. months after re-start of the unit. Re- All of these changes have served sults are expected in 2021. to improve combined cycle base Following what is expected to be load efficiency by 2 per cent. Based successful validation, GE is antici- on a gas price of $7/million Btu, ac- pating wider rollout to other exist- cording to GE’s calculations this ing units. translates to as much as $4 million Rechsteiner said: “We’ve had a lot in fuel savings annually per unit. of interest from customers in many Meanwhile, efficiency in part-load countries. After the UK, the next is improved by 1 per cent, yielding one will be in Italy. Elsewhere in up to $1 million in fuel savings a Europe, there’s also Germany and year per unit. Spain. There is also interest from Plant output is increased by be- Singapore, Malaysia and even Ja- tween 15-55 MW per unit, depend- pan. We will not make any other ing on the unit being upgraded and commitments until we have had the site conditions. This in turn im- results from Enfield but we are ne- proves revenue opportunities. gotiating with customers already.’’ Another key benefit is extended With regards to the future of the inspection intervals, which are in- GT26 and any further potential up- creased from 24 000 hours to 32 grades, he concluded: “For the next 000 hours. This reduces mainte- couple of years, this is it because nance and operating costs. this is really a huge step forward in Such benefits were sufficient to the development of this machine.” THE ENERGY INDUSTRY TIMES - MAY 2019 Final Word 16 A rebellious climate

xtinction Rebellion (XR) pro- keeping energy executives awake at future large-scale earthquakes and is clear and the technology is there to testers are a nuisance – not only night. volcanic eruptions is still high. Ac- address the issue. Renewables have Edo they disrupt daily commut- Weather risks are obvious in coun- cording to the Monitor, there is grow- come a long way but it would appear ers, they are also a drain on valuable tries such as Cameroon where extreme ing awareness that extreme weather that they cannot be integrated fast Junior Isles police resources. Yet they serve a use- droughts could affect hydropower caused by climate change may further enough to bend the emissions curve at ful purpose. Their demonstrations generation. The World Energy Coun- increase the damage caused by heavy the necessary speed. With renewables have probably done more to put cli- cil’s survey did in fact reveal that en- rains and typhoons. subsidies being steadily phased out, mate change back in the spotlight than ergy leaders in Cameroon are worried The Council stated that with one perhaps it is now time for governments cyclone Idai, which devastated Mo- that in the future climate change could degree Celsius of warming so far, “the to look at how to incentivise or fund zambique, Malawi and Zimbabwe. worsen the intensity and frequency of Earth has seen a crescendo of extreme the retrofitting of carbon capture on Even cyclone Kenneth, which again droughts in the region. weather”, including heatwaves, existing coal fired plants. battered Mozambique just weeks later, The report also noted that climate droughts, floods and deadly storm But this is still only half the story. did little to intensify the climate change is causing increasingly irregu- surges made worse by rising seas. National energy and climate plans change debate. lar rainfall, rising temperatures, and Importantly, it also states that the need to address how to get more re- There is no doubt that extreme desertification in Niger, a country that chance of capping global warming at newables into heating and transport. weather events are a growing concern is already highly vulnerable to natural “well below” two degrees Celsius are In the EU, this is essential for the de- and that carbon emissions are, accord- hazards, particularly droughts, floods, becoming less likely. carbonisation of energy – three quar- ing to scientists, reaching a tipping and landslides. “Even taking into account voluntary ters of total energy consumed is in point that could see irreversible cli- And the concern is not just in devel- national pledges to slash carbon emis- these two sectors. Certainly, decarbon- mate change. oping countries. In 2018, natural di- sions caused by burning fossil fuels, ising heat and transport, as well as In its recently published Issues sasters such as heavy rains, typhoons the planet is currently on track to warm industry, will be much more challeng- Monitor, the World Energy Council and earthquakes caused enormous by an unliveable 3°C to 4°C by cen- ing than it has been for the electricity cited resilience to extreme weather damage in Japan, and uncertainty tury’s end,” it states. “This makes it all sector. risks as one of the main challenges about large-scale accidents caused by the more important, not to regard Unfortunately, although their mo- Paris as the end of the discussion, but tives are honourable it is likely that as the starting point for an ambitious most XR protesters are unaware of the global climate protection framework difficulty of achieving what they are for the future.” asking. In late March the International En- In London, XR insists that it will ergy Agency (IEA) released its second continue its disruptive protests until ‘Global Energy and CO2 Status Re- the UK government agrees to meet and port’. It made bleak reading. Accord- discuss its demands – a key one being ing to the study global energy-related that the UK must reduce carbon emis- CO2 emissions rose by 1.7 per cent in sions to zero by 2025. Putting the 2018, hitting a historic high of 33.1 Gt. power industry aside, refitting every It was the highest rate of growth since household with some form of heat 2013, and 70 per cent higher than the pump or electric boiler, as well as average increase since 2010. having a charging infrastructure in This was in spite of rapid growth in place for 100 per electric vehicles, wind and solar generation, which grew would be nigh on impossible. Then at double-digit pace with solar alone there is the tremendous cost to the increasing by 31 per cent. already hard-pressed working-class In its latest assessment of global household. energy consumption and energy-relat- XR protesters in London are also ed CO2 emissions for 2018, the IEA perhaps unaware that the UK is a world found that energy demand worldwide leader in terms of how much it has cut grew by 2.3 per cent last year, nearly CO2 emissions. The IEA report shows twice the average rate of growth since that in 2018 its emissions declined for 2010 and the fastest this decade. This a sixth consecutive year, hitting some demand, however, was largely met by of the lowest levels recorded since fossil fuels. For the second year run- 1888 and 39 per cent below 1990 ning fossil fuels met nearly 70 per cent levels. This is predominantly due to of demand growth. the switch from coal to renewables – Coal use in power alone surpassed electricity generation from renew- 10 Gt CO2, mostly in Asia. China, ables saw a record year, accounting India, and the United States accounted for 35 per cent of generation. At the for 85 per cent of the net increase in same time the share of coal fell to 5 emissions, while emissions declined per cent, a record low. for Germany, Japan, Mexico, France Indeed emissions across Europe fell and the United Kingdom. by 1.3 per cent, or 50 Mt, largely Coal fired power plants were the driven by a drop of 4.5 per cent in single largest contributor to the growth Germany, as both oil and coal combus- in emissions, accounting for 30 per tion fell sharply. The drop in coal cent of global CO2 emissions. For the consumption was concentrated in the first time, the IEA assessed the impact power sector, where generation from of fossil fuel use on global temperature renewables reached a record high of increases. It found that CO2 emitted 37 per cent of the electricity mix. from coal combustion was responsible Unfortunately, the same cannot be for over 0.3°C of the 1°C increase in said of India, China and the US. While global average annual surface tem- per capita emissions in India remain peratures above pre-industrial levels. low at only 40 per cent of the global This makes coal the single largest average, in 2018 CO2 emissions in the source of global temperature increase. country rose 4.8 per cent from the The global average annual concentra- previous year – a faster rate than any tion of CO2 in the atmosphere aver- other major energy-consuming nation. aged 407.4 ppm in 2018, up 2.4 ppm In China, emissions grew by 2.5 per since 2017. This is a major increase cent, or 230 Mt, to 9.5 Gt, while in the from pre-industrial levels, which US the emission reductions seen in ranged between 180 and 280 ppm. 2017 were reversed, with an increase Commenting on the findings, Dr of 3.1 cent. Fatih Birol, the IEA’s Executive Direc- On this basis, the efforts of London’s tor, said: “Despite major growth in XR protestors are perhaps mis-direct- renewables, global emissions are still ed and the authorities might consider rising, demonstrating once again that another approach to the disruptions more urgent action is needed on all they cause. Rather than arresting fronts – developing all clean energy protestors, only to see them return the solutions, curbing emissions, improv- next day, it would be far more effective ing efficiency, and spurring invest- for everyone to fly them to India, ments and innovation, including car- China or the US where they are bon capture, utilisation and storage.” needed most. And plant a few trees to The impact of coal fired generation offset the carbon footprint of the flight. Cartoon: jemsoar.com