THE ENERGY INDUSTRY February 2019 • Volume 11 • No 12 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES

Atomic Brexit A smarter world Final Word With Brexit fast approaching, there Distribution Network Operators prepare Does Wylfa demonstrate appears to be only one viable option for an energy market that is much a lack of will for nuclear? to keep nuclear commerce open more distributed. Junior Isles. with the EU. Page 13 Page 14 Page 16

News In Brief USA continues clean energy shift but carbon emissions Wylfa suspension rise in 2018 The USA has seen carbon emissions rise after three years of decline despite coal plants being shut down. Page 2 jeopardises UK Huawei panels pose cyber threat, warns Congress Members of the US Congress have warned that the use of solar equipment manufactured by Chinese nuclear plans group Huawei poses a threat to the country’s cybersecurity. Page 4

China goes big on storage China is planning to build massive amounts of pumped hydro storage and battery capacity as its clean energy transition continues. Hitachi’s Higashihara says a “freeze” Page 6 means the company will not put in any additional investment Germany sets coal phase-out Germany’s government has reached an agreement on when the country will end its reliance on lignite and hard coal fired power generation. Page 7 The UK’s plan to build a new fleet of nuclear power plants is under severe threat following the Uzbek nuclear plans take suspension of another of its proposed projects. Junior Isles shape Construction of Uzbekistan’s first The UK’s plan to build a new fleet of as a private enterprise, noting that “it involved we’ve not been able to cent of electricity demand. nuclear power plant could start by nuclear power plants is in danger of is now clear that more time is needed reach an agreement to the satisfaction The British government and finan- 2022. collapsing following Hitachi’ deci- to develop a financial structure”. of all concerned. cial institutions agreed to provide Page 8 sion to pull the plug on its 2.9 GW Toshiaki Higashihara, Hitachi’s “As a result we will be suspending ¥2 trillion ($18.3 billion) to support Wylfa project in Anglesey, Wales. The President and CEO, said: “A freeze the development of the Wylfa the project, which was the initial es- Shell partnership eyes news comes just two months after means we will not put in any addi- Newydd project, as well as work re- timated cost. But with escalating Eneco bid Toshiba’s decision to scrap its plan to tional investment.” He added that the lated to Oldbury, until a solution can forecast on the final cost Hitachi has Energy major Shell is considering build the 3.4 GW Moorside plant near company would only renew its in- be found. In the meantime we will failed to find investors to finance the an investment in Dutch sustainable Sellafield, Cumbria. volvement if the project was kept off take steps to reduce our presence but balance. The government revealed it energy group Eneco as part of its Hitachi formally suspended the £20 Hitachi’s balance sheet, required only keep the option to resume develop- had also been willing to offer Con- wider plans to boost its role in new billion ($26.4 billion) project at a a limited capital investment from the ment in future.” tract for Difference terms with a and renewable energy. board meeting in Tokyo in January in company and offered the prospect of The collapse of the power stations strike price of up to £75/MWh. Page 9 a move that will see it write off ¥300 an adequate profit. and the Moorside project that Toshi- Greg Clark, the Secretary of State billion ($2.8 billion) in project related Duncan Hawthorne, CEO of Hori- ba scrapped in November means the for Business Energy and Industrial Fuel Watch: East activities. zon Nuclear Power, the company set government could have a huge hole Strategy addressed the Commons Mediterranean to create The company said it had decided to up by Hitachi to develop the project to fill in the late 2020s and early concerning the UK’s nuclear future Region Gas Forum suspend the Horizon project from the said: “I am very sorry to say that de- 2030s. Together the three power sta- following the announcement. He said: East Mediterranean energy ministers viewpoint of its economic rationality spite the best efforts of everyone tions would have supplied 15 per met last month to kick-start plans for Continued on Page 2 a gas and energy hub in the region. Page 12

Technology: Ramping up Tighter rules needed as energy supplier collapses continue power-to-X There have been calls for energy regu- that eight energy providers ceased however, that asking the regulator sit down and think about this,” said A 50 MW system is being developed lator Ofgem to introduce tighter regu- trading in 2018 and another two have Ofgem to look again on the checks it Keith Anderson, CEO of Scottish- that will allow electricity from wind lation as the number of collapses of closed only 25 days into 2019, indi- does on companies is not the only Power. “I think they need to look at and solar to be used to produce UK energy suppliers reached 10 in the cates that Ofgem does not have the solution needed. the mess that currently exists and how synthetic gas that could serve as a last 12 months. At the end of January correct due diligence in place to en- “The government needs to think it can be dealt with and cleaned up.” form of energy storage and also be Our Power became the latest to fold, sure that energy providers are prop- again about the policies it makes that Lucy warned, however, that the cur- used to decarbonise the industry and two just weeks after Economy Energy erly regulated… Energy suppliers Ofgem has to implement,” he said. rent turmoil, which has largely been transport sectors. ceased trading. should have to validate the financial “Last year we saw eight energy com- the result of too many suppliers enter- Page 15 Industry experts say four major is- health of their business, given that panies collapse and the merger be- ing the market too quickly, should not sues must be addressed relating to there are wider issues surrounding tween SSE and nPower fall apart. The be seen as a reason for consumers to Advertise new entrants: a lack of checks on en- the obtaining of licences in general. collapse of Economy Energy shows favour the Big Six. [email protected] try, unfair cost exemptions, loss-lead- It is only through proper regulation 2019 is going to be no easier for the “It is also important to stress that the ing tariffs, and the lack of conse- that the industry can prevent further energy sector.” closure of the aforementioned energy Subscribe quences for failure. closures.” Members of the ‘Big Six’ suppliers suppliers does not mean that you need [email protected] Jane Lucy, Founder of Labrador, a Professor David Elmes, leader of also called for intervention. “We’ve to submit to poor customer service or call +44 208 523 2573 company that enables automated the Warwick Business School Global got to a point where the industry, the and extortionate prices from the big supplier switching, said: “The fact Energy Research Network, said, regulator and the politicians need to six energy suppliers,” she said. 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 - FEBRUARY 2019 2 Headline News

Continued from Page 1 “Nuclear has an important role to play, as part of a diverse energy mix, but it must be at a price that is fair to electricity bill payers and to tax- payers. We will work closely with Hitachi and the industry, to ensure that we find the best means of fi- nancing these and other new nucle- USA continues clean ar projects.” The government’s stance has been influenced by the falling cost of re- newables, which have plummeted in recent years, causing a rethink on policy. Clark said clean sources of energy shift but carbon power, such as offshore wind, have fallen in cost “to the point they will soon need no public subsidy”. In a letter published in the Finan- cial Times he wrote: “In fact, the last contract for difference auction in the emissions rise in 2018 UK procured 3 GW of offshore wind – equal to the capacity of a nuclear power station – for only £57.50 per MWh.” Some, however, see Wylfa’s sus- pension as a significant blow to the UK’s future energy supply plans. A statement issued by Matthew Fell, n Carbon emissions increase by 3.4 per cent Chief UK Policy Director at Con- federation of British Industry said: n Electricity demand being met by gas “The government has to demon- strate it is committed to meeting our climate change targets by support- then and 2015, emissions fell by 12.6 November 30, 2018) notes that new forecasts the share of gas fired gen- ing new low-carbon power supply. Junior Isles per cent. Since 2016, the pace of US natural gas generating capacity put in eration will grow to 37 per cent by “The loss of new nuclear projects emissions decline has slowed, from 2.7 service during the first 11 months of 2020 and coal will continue declining could leave us more heavily depen- The USA has seen carbon emissions per cent in 2015 to 1.7 per cent in 2016 2018 totalled 16 687 MW or 68.46 per to 24 per cent by 2020. dent in the long-run on fossil fuels, rise after three years of decline despite and 0.8 per cent in 2017. cent of the total (24 376 MW). Renew- However, new additions of renew- which could risk our legally binding coal plants being shut down. The Rhodium Group estimates that able sources accounted for only 30.12 able energy sources look poised to climate targets. The government Analysis, undertaken by the eco- if the US is to meet the Paris Agreement per cent led by wind (3772 MW) and outstrip fossil fuel capacity additions. needs to build on its support for new nomic firm Rhodium Group, estimates target of a 26-28 per cent reduction solar (3449 MW). According to the EIA’s latest inven- nuclear power by giving individual that carbon emissions increased by 3.4 from 2005 levels by 2025, it will need Data published by the US Energy tory of electric generators, 23.7 GW projects the certainty they need, per cent in 2018. This rise is based on to reduce energy-related CO2 emis- Information Administration (EIA) of new capacity additions and 8.3 GW alongside measures that deliver a preliminary power generation, natural sions by 2.6 per cent on average over last month also showed that fossil fu- of capacity retirements are expected mix of low-carbon and renewable gas, and oil consumption data. the next seven years. els will continue to dominate the gen- for the US electric power sector in technologies.” The transportation sector remains Although coal plants are being shut eration mix in the near term. 2019. Rebecca Long-Bailey MP, the America’s largest emitter, while the down they are being replaced by gas According to the EIA, natural gas The utility-scale capacity additions Shadow Business Secretary, said power sector’s emissions increased 1.9 fired plant, which not only beat renew- fuelled 35 per cent of total US electric- consist primarily of wind (46 per the government’s nuclear strategy per cent. The buildings and industrial ables in replacing most of this lost ity generation in 2018, up from 24 per cent), natural gas (34 per cent), and was “lying in tatters”. sectors also posted significant emis- generation but also fed most of the cent in 2010. In contrast, the share of solar photovoltaics (18 per cent), with Doug Parr, Chief Scientist for sions totals in 2018. growth in electricity demand. total generation from coal fired pow- the remaining 2 per cent consisting Greenpeace UK agreed but wel- In 2007, carbon emissions in the US FERC’s “Energy Infrastructure Up- er plants fell to 28 per cent last year primarily of other renewables and bat- comed news of the project’s sus- peaked at 6 billion tonnes. Between date” report, (with data through from 45 per cent in 2010. EIA also tery storage capacity. pension. “The government’s energy Global clean energy investments down in 2018 Global clean energy investment to- from 2017, China was again a clear the dynamics of the energy transition, billion, but there were also 13 Chinese Long-Bailey said the talled $332.1 billion in 2018, down 8 leader in 2018 with total clean energy helping to drive down solar costs, grow offshore wind farms starting construc- government’s nuclear strategy per cent on 2017 according to Bloom- investment of $100.1 billion from a the offshore wind and EV markets and tion, for a total of some $11.4 billion. was “lying in tatters” berg NEF’s (BNEF) latest figures. country perspective. The US followed lift venture capital and private equity David Hostert, head of wind analysis policy is in tatters, but this is the There were sharp contrasts between at $64.2 billion, up 12 per cent. Europe investment.” at BNEF, said: “The balance of activ- opposite of a disaster. We could have clean energy sectors in terms of the saw clean energy investment leap 27 Offshore wind was a major recipient ity in offshore is tilting. Countries such locked ourselves into reliance on an change in dollar investment last year. per cent to $74.5 billion, helped by the of clean energy investment last year, as the UK and Germany pioneered this obsolete, unaffordable technology, Whereas wind investment rose 3 per financing of five offshore wind proj- attracting $25.7 billion, up 14 per cent industry and will remain important, but but we’ve been given the chance to cent to $128.6 billion, solar dropped ects in the billion-dollar-plus category. on the previous year. Some of the proj- China is taking over as the biggest mar- think again and make a better deci- by 24 per cent to $130.8 billion, partly Jon Moore, Chief Executive of ects financed were in Europe, led by ket and new locations such as Taiwan sion,” he said. due to sharply declining capital costs. BNEF, said: “Once again, the actions the 950 MW Moray Firth East array in and the US East Coast are seeing strong “Our urgent, immediate dilemma Despite a decrease of 32 per cent of China are playing a major role in the North Sea, at an estimated $3.3 interest from developers.” – how to maintain security of supply whilst cutting carbon – can be solved by making offshore wind, at half the cost of nuclear, the back- bone of the new power system. The Offshore wind set to benefit from bigger turbines failure of the old technology is the The size of offshore wind farms are generations. The SG 10.0-193 DD en- pected to be installed in 2019 with onshore to facilitate access for testing, opportunity the new technologies advancing to the next level as both ables us as market leaders to meet these commercial market deployment ex- includes five years of testing and a 15- need.” Siemens and GE announced plans for needs in close cooperation with our pected in 2022. year full-service operation and main- EDF Energy, however, remains their double-digit MW output wind customers, stakeholders, and society- The annual energy production of one tenance agreement. convinced nuclear energy has a turbines. at-large.” SG 10.0-193 DD is sufficient to supply GE said that the initial period of op- “strong future”. A spokesman said: In January Siemens Gamesa Renew- The 10 MW rating is made possible about 10 000 European households erations will allow it to collect data “Nuclear provides low-carbon elec- able Energy (SGRE), the world’s through a larger generator diameter, with electricity. This means that an needed to obtain a Type Certificate, a tricity when the wind doesn’t blow leader in the offshore industry, building on the proven SGRE Direct offshore wind park composed of 20 of key step in commercialising the tur- and the sun doesn’t shine. It will launched the SG 10.0-193 DD, the Drive generator technology. these turbines would cover the annual bine in 2021. help lower overall energy costs to company’s first 10+ MW offshore By increasing the rotor diameter to electricity consumption of a city the MHI Vestas is currently leading the consumers as part of a balanced wind turbine. 193 m, this new wind turbine offers up size of Liverpool. race to deploy 10 MW+ turbines. In energy mix.” Commenting on its importance to the to 30 per cent more annual energy pro- The news comes as GE Renewable September it announced it had EDF is currently building the new market, Andreas Nauen, CEO of the duction than its predecessor, the SG Energy announced that it had signed achieved a power rating of 10 MW Hinkley C project – the only one of SGRE Offshore Business Unit, said: 8.0-167 DD. Its 94 m-long blades pro- an agreement with Future Wind, a with its V164 turbine platform. the UK’s planned 16 GW of new “The levelised cost of energy from vide a swept area of 29 300 m2. joint venture of Pondera Develop- The V164-10MW turbine is avail- nuclear plant to begin construction offshore wind continues to decrease as The technology on the offshore di- ment and Sif, to install the first Hali- able for sale now, making it the first so far. At the start of January it also industry scale and performance grow. rect drive platform allows for the re- ade-X 12MW wind turbine prototype commercially available double-digit began the latest round of public New markets are developing across the use of most components from previ- in the Port of Rotterdam this summer. megawatt wind turbine. consultation for its proposed Size- globe, all of which require cost-effi- ous generations, providing a short The agreement, which will see the MHI Vestas also said it can scale up well C sister project. cient, reliable, and clean power for time to market. The prototype is ex- Haliade-X 12MW prototype installed its turbine to 12 MW. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 3

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Siân Crampsie That goal is the most aggressive of joint venture between Ørsted and util- attractive proposals are received”. date from 50 per cent to 70 per cent its kind anywhere in the country, ity Eversource Energy; Vineyard Bids are due by February 14, while of renewable electricity by 2030. New York governor Andrew M. Cuo- Cuomo noted, and is set for five years Wind, a partnership between Copen- successful candidates will be an- n Ørsted has won approval from Con- mo has called for the state’s offshore earlier than the target recently ad- hagen Infrastructure Partners (CIP) nounced in the spring. necticut regulators to negotiate an wind energy target to be quadrupled. opted by California. and Avangrid Renewables; Mayflower Cuomo’s latest plan for offshore wind offtake deal for an additional 100 MW The state of New York has set a tar- Earlier in January New York state Wind Energy, a joint venture between includes investing $200 million in the of capacity from the proposed Revolu- get of installing 2400 MW of offshore authorities said that five developers Shell New Energies and EDP Renew- state’s ports, establishing a State Advi- tion offshore wind farm in federal wind energy capacity by 2030, but in had expressed an interest in taking part ables; Norway’s Equinor; and Atlantic sory Council on Offshore Wind Eco- waters off the coast of Rhode Island his 2019 State of the State speech last in the state’s first offshore wind so- Shores Offshore Wind, recently nomics and Workforce Development, and Massachusetts. Connecticut has month, Cuomo called for the target to licitation, in which 800 MW of capac- formed by EDF Renewables North setting up an offshore wind training already approved a 200 MW power be set at 9000 MW. ity will be procured. America and Shell New Energies. centre, as well as initiating the first ef- purchase agreement between devel- He has also proposed additional A number of companies have all reg- NYSERDA said it will award 25- fort to evaluate and facilitate the devel- oper Deepwater Wind and local utili- measures designed to boost New istered their interest with New York year power purchase agreements opment of an offshore transmission ties Eversource and United Illuminat- York’s green economy, including a State Energy Research and Develop- (PPA) to projects of between 200 grid that can benefit ratepayers. ing; the remaining 400 MW of mandate of 100 per cent clean, carbon- ment Authority (NYSERDA) for the MW and 800 MW, while it can con- Cuomo also wants to increase New capacity will be sold to utilities in free electricity in the state by 2040. auction. These are: Bay State Wind, a tract higher capacity if “sufficiently York’s Clean Energy Standard man- Rhode Island. Enel sells Brazilian assets EIB supports Enel has sold three large-scale renew- the fleet of operating plants.” able energy plants in Brazil in order to The portfolio comprises the 292 MW help it fund new project developments Nova Olinda solar plant, located in the in the country. North eastern Brazilian state of Piau The Italian energy firm has agreed a and the 158 MW Lapa solar facility, $782 million deal with CGN Energy situated in the northeastern Brazilian solar in Mexico International Holdings to sell two solar state of Bahia, along with the 90 MW power plants and one wind farm. All Cristalndia wind farm. of the projects are operational and are Lapa and Nova Olinda are sup- backed by long-term power purchase ported by 20-year contracts, under The European Investment Bank (EIB) The projects are operated and 20 per Acciona said it took two months, agreements (PPAs), Enel said. which specified volumes of energy has agreed a $87 million funding pack- cent owned by Enel Green Power and from October 19 to December 19, for The portfolio has a total capacity of generated from the plants are sold to age aimed at supporting Mexico’s 80 per cent by institutional investors it to install the 1.07 million PV panels 540 MW and was sold to China-based the Brazilian Chamber of Commer- renewable energy goals. Caisse de depot et placement du Que- in the Sonora desert. It expects the CGN through Enel Green Power Bra- cialisation of Electric Energy (CCEE). The bank has signed a loan agree- bec, and CKD Infraestructura Mexi- project to start operating this quarter. sil Participaes. Enel Green Power head The Cristalndia wind farm is sup- ment with Enel Green Power and its co. BBVA Bancomer, CaixaBank, With the Puerto Libertad PV plant, Antonio Cammisecra said: “With the ported by 20-year PPAs with a pool local partners in Mexico to help fi- Natixis, MUFG Bank, IDB Invest, the Acciona Energia now holds a 1144 sale of these assets we are capturing of Brazilian electricity distribution nance three photovoltaic (PV) solar private sector institution of the Inter- MW portfolio in Mexico, split between value for further growth in Brazil, companies. power plants totaling 1088 MWp, American Development Bank (IDB) 739.5 MW wind and 404.5 MWp PV. where we are implementing a large n Petrobras and Total have estab- located in Guanajuato and Coahuila Group, and Mexican development It owns 50 per cent of the Puerto Lib- pipeline of renewable projects. lished a joint venture for the develop- States. institution Banca Nacional de Com- ertad PV project under a joint venture “We remain focused on the opportu- ment of solar and wind power projects The projects are a key part of Mexi- ercio Exterior (Bancomext) also sup- with Tuto Energy. nities offered by the Brazilian renew- in Brazil. The new company is aiming co’s energy policy and renewable en- ported the project. n Mexico is set to sign a deal with able market and we are continuing to to develop 500 MW of capacity in the ergy objectives, EIB said. The solar farms are part of a boom in Hydro-Quebec to modernise the coun- invest in the country where Enel Green next five years. It will be 49 per cent The projects include the 754 MW renewable energy in Mexico since the try’s 60 hydropower plants. Mexico Power will play an active role by car- owned by Petrobras and 51 per cent Villanueva PV farm in Coahuila state, country revamped its energy laws in has an installed hydropower capacity rying out new projects and managing by Total Eren. which was officially inaugurated by 2017. of around 13 000 MW, but says that its Enel Green Power in March 2018. Vil- Last month Acciona said it has com- resources are under-utilised. Refur- lanueva is the largest PV facility pro- pleted the assembly of the 405 MWp bishment of the facilities will help to ducing energy in the Americas and Puerto Libertad PV plant in Mexico, improve their availability and lengthen Canada funds first Enel’s largest solar project worldwide. the largest the company has ever built. their lifespans. geothermal plant Huawei panels pose cyber Canada’s Saskatchewan province will The plant will cost around C$51 host the country’s first geothermal million to build and is expected to power facility. generate electricity for about 5000 The country’s federal government homes. Excess heat will supply a local threat, warns Congress has announced that it will provide greenhouse. C$25.6 million ($19.3 million) in DEEP announced earlier in January Members of the US Congress have The accusation comes amid height- Bob Latta, a Republican member of funds for the proposed plant, which that it had successfully completed drill- warned that the use of solar equipment ened tensions between Washington the House committee on energy and will be located near Estevan, south- ing of its first geothermal test well – at manufactured by Chinese group Hua- DC and Beijing following the recent commerce, said: “Ensuring our en- eastern Saskatchewan. 3530 m, the largest ever drilled in wei pose a threat to the country’s arrest of Meng Wanzhou, Huawei’s ergy infrastructure is safe, secure, and The plant will be developed by Saskatchewan. The well will enable cybersecurity. Chief Financial Officer and daughter resilient is an issue of critical impor- Canada-based DEEP Earth Energy DEEP to acquire preliminary data to Both Democrats and Republicans of founder Ren Zhengfei. tance. With documented efforts by Production Corp. and will have an assess the geothermal reservoir. have said that Huawei solar equip- Jerry McNerney, a Democratic rep- state actors to hack our energy infra- installed capacity of 5 MW. Prime “This is a major step forward for the ment could be hacked to allow a third resentative from California, said: “If structure, it’s essential that we are Minister Justin Trudeau’s office an- first renewable energy project of its party to slow or even interrupt US we are using equipment that is made more vigilant than ever about the nounced in January that financing for kind in Canada,” said Kirsten Marcia, electricity supplies. by less than trustworthy suppliers, we technology we use.” the project will be extended through President and CEO of DEEP. “Suc- Inverters supplied by Huawei ac- are setting ourselves up. US intelli- Huawei vehemently denies that its Natural Resources Canada’s Emerg- cessfully drilling and validating the count for around 20 per cent of all gence agencies have warned Ameri- solar products have vulnerabilities ing Renewable Power Programme, resource potential is the biggest inverters solar in the USA for small- can businesses that Huawei is not to and stressed that its activities in the which helped fund the pre-feasibility achievement this project has seen to scale commercial use, according to be trusted, so we need to take that USA are in accordance with cyberse- study for the scheme. date.” analysts. seriously.” curity standards. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 5

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To guarantee receiving your monthly copy of the award winning newspaper, you need to subscribe today THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 6 Asia News China goes big on storage to accommodate burgeoning renewables China is planning to build massive amounts of pumped hydro storage and battery capacity as its clean energy transition continues. Syed Ali

China’s State Grid Corporation of The five pumped storage projects an- In a move that gives a significant boost country to cater for the fast growing in China approved 24 offshore wind China (SGCC) will build 6 GW of nounced by the SGCC will be in op- to EVs, in late December SGCC and number of EVs. projects with a total capacity of 6.7 GW. pumped hydro storage as part of ongo- eration by 2026 and require an invest- China Southern Power Grid entered a According to a recent report by The announcement is part of the prov- ing efforts to cut rates of wind and ment of RMB38.7 billion ($5.67 partnership with two private firms to BloombergNEF, in 2018 China was ince’s 10 GW offshore wind plan solar power curtailment. billion). China is targeting 40 GW of create a RMB 500 million ($74 mil- again the clear leader in clean energy known as Three Gorges on Sea. The Wasted electricity from solar projects pumped hydro storage by 2020. lion) joint venture (JV) specialising in investment “playing a major role in the approved offshore wind farms are ex- in the country’s northwest has often The country has also embarked on a providing charging facilities for EVs. dynamics of the energy transition, pected to be completed by the end of been in double-figure percentages, national Mission for Energy Storage, The new company, Xiongan Lianx- helping to drive down solar costs, grow 2020. with national rates of PV curtailment which includes plans to build flow bat- ing Network Technology Co. will be the offshore wind and EV markets”. n China has approved construction of peaking at 11 per cent in 2015, accord- tery projects, some of which will be the country’s largest electric vehicle Offshore wind attracted $25.7 billion a dam on the upstream section of its ing to official figures. These have been several hundred megawatts in size. charging operator and control about 80 of clean energy investment last year, a longest river, the Yangtze. The dam is falling with the 2017 figure at just 6 China is also pushing along its elec- per cent of the country’s 730 000 charg- 14 per cent increase compared to 2017. part of a hydropower project envisaged per cent. The equivalent figure for wind tric vehicle (EV) programme, which ing piles. The company aims to de- This trend looks set to continue in 2019. to eventually consist of four turbines power is 12 per cent. could also help renewables integration. velop more charging stations across the In mid-January, the Jiangsu Province with a total capacity of 2000 MW. Bigger role for private sector in revised power plan The private sector will play a bigger plan period, 20 766 MW of which will plans, while power imported from in with investments. Egat is expected Sombatsiri said new IPPs would be role in the addition of new generating come from renewable power projects. neighbouring countries is generated to finish its planning late this year.” developed at large sites that will be capacity in Thailand’s revised Power Power plants with a total capacity of from hydropower,” said Energy Min- After the new PDP is enacted, four fuelled by gas, coal and diesel. “All Development Plan (PDP). 25 310 MW will be retired during the ister Siri Jirapongphan. other plans will soon be drawn up and details for interested companies will be The new version drawn up by the period, so total power capacity by 2037 Notably, in the new PDP power pro- implemented: oil management, natural disclosed sometime this year,” he said. National Energy Policy Council will stand at 77 211 MW, up from 46 duction from state utility Electricity gas supply, alternative energy develop- n The Energy Ministry will allow solar (NEPC) for 2018-37, is expected to 090 MW in 2017. Generating Authority of Thailand ment, and energy savings and efficiency. panel owners to sell surplus electricity take effect from the second quarter. The In 2037, 53 per cent of the country’s (Egat) will be lower. Egat will now take Just prior to unveiling the new PDP in communities from 2021, in line with plan can be revised every five years as power production will be generated by more responsibility for system secu- the Energy Ministry announced plans the new national energy reform plan. changes and technological trends oc- natural gas, 35 per cent from non- rity from the grid connection. Energy to open bidding for independent pow- Under the law, solar panel owners can- cur in the power sector. fossil fuels and 12 per cent from coal. Minister Siri Jirapongphan said: “It er producers (IPPs) for a combined not sell power directly to others, but The new PDP seeks to add 56 431 “We are very keen on renewable en- will not only receive fees from trans- capacity of 8300 MW this year. can sell it to the state grid under power MW of new power capacity during the ergy projects and energy conservation mission lines but play a role in joining Permanent Energy Secretary Kulit purchase agreements. Australia reviews rooftop India’s nuclear solar compliance programme The operator of Australia’s electricity after that date, nearly a third in South January, some states reported a sharp makes progress grid has raised the prospect of house- Australia and 15 per cent in Queens- drop in brown coal generation as solar hold rooftop solar panels being retro- land failed to meet the Australian stan- and wind output surged. fitted to ensure they meet compliance dard for reducing excess frequency. According to data compiled by Dylan standards after some units failed to Changes to compliance and accredi- McConnell, a researcher at the Univer- The Department of Atomic Energy he added. adequately respond to a major inter- tation processes may be needed, ac- sity of Melbourne’s College of Climate (DAE) has informed Parliament that The update followed news that In- connector outage last year, which cording to AEMO, as it investigates and Energy, brown coal generation in 21 new nuclear power reactors with a dian and French experts will soon isolated two states from the power why the solar inverters, which convert Victoria was 8227 GWh in the Decem- total installed capacity of 15 700 MW begin discussions to determine the system. electricity from rooftop panels into ber quarter, down from 8500 GWh in are expected to be set up in the coun- cost of the proposed nuclear power A range of supply sources including power that can be fed to the grid, failed the December 2017 quarter and well try by 2031. It also said that five des- plant in Jaitapur in the western state solar, wind and coal generators either to respond as expected. below the 11 000 GWh in the Decem- ignated sites, which would have a of Maharashtra. tripped or were unable to assist in The market operator aims to com- ber 2016 quarter, the last full quarter total of 28 nuclear reactors, have been The discussions to build the 9900 boosting supply to Queensland and plete an assessment of the technical before Hazelwood’s closure in late given ‘in principle’ approval by the MW Jaitapur Nuclear Power Plant South Australia when a lightning requirements of solar inverters by March 2017. central government. (JNPP) have now been made possible strike caused the Queensland and June and improve their performance Gas generation also plummeted to In a written statement Jitendra Singh, by a techno-commercial proposal that South Australia interconnectors to standards by the end of 2019. It also just 3183 GWh in the December quar- Minister of State for Personnel, Public French nuclear power company EDF trip simultaneously last summer. hopes to obtain better data and de- ter from 5692 GWh in the December Grievances and Pensions and Prime recently submitted to India. A techno- An official investigation subsequent- velop simulation models and analysis 2017 quarter. Minister’s office (PMO), said that “at commercial offer is significant in that ly found thousands of rooftop solar by the end of 2020 to predict the re- The big winners were rooftop solar, present, there are nine nuclear power it sets off the negotiations process as it units did not comply with Australian sponse of solar rooftop to “system which surged by more than a quarter reactors at various stages of construc- helps the parties determine the project standards. disturbances” like last year’s major to 2690 GWh from a year earlier, tion” that are targeted for completion cost and the energy tariff. The Australian Energy Market Op- outage. utility-scale solar, which increased by 2024-25. The proposal is now before the Nu- erator detailed how 15 per cent of The reliability of rooftop solar is fivefold to 917 GWh as more large “In addition, 12 more nuclear pow- clear Power Corporation of India sampled solar systems installed before becoming increasingly important as solar farms came online, and wind, up er reactors have been accorded admin- (NPCIL), the Department of Atomic October 2016 dropped out during the Australia moves away from fossil a fifth to 3426 GWh. Hydro generation istrative approval and financial sanc- Energy’s arm that operates public sec- emergency event. Of those installed fired generation. At the beginning of also grew 17 per cent to 3400 GWh. tion by the government in June 2017,” tor atomic power plants. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Europe News 7 Germany seals coal phase-out Germany has finalised plans for phasing out coal fired generation just as renewables start to overtake the fuel in electricity generation share. Siân Crampsie The agreement is seen as a major capacity grew by 20 per cent, and Deutsche WindGuard said in Janu- Its challenge has been, however, to step forward for Germany’s energy combined with favourable weather ary that political conditions are slow- balance these goals with the econom- Representatives from Germany’s gov- transition. The country still relies on conditions, the technology’s contribu- ing down the development of offshore ic fallout of the coal phase-out – Ger- ernment, industry and non-govern- coal for around 40 per cent of its elec- tion to power generation rose from 6.3 wind energy in Germany. It believes many’s coal sector employs 20 000 mental organisations (NGOs) have tricity generation, and the prospect of TWh in 2017 to 45.7 TWh in 2018. that the country will not be able to people and there are particular regions reached a long awaited agreement on nuclear plant closure by 2022 means Generation from wind energy also meet its target of sourcing 65 per cent that are heavily reliant on the coal when the country will put an end to its that other fuel sources – including rose in 2018, while hydropower gen- of power generation from renewable industry. reliance on lignite and hard coal fired natural gas and renewables – will have eration decreased slightly due to the energy sources by 2030. RWE said in a statement that the power generation. to grow considerably in the coming long, dry summer, Fraunhofer Insti- The coal exit commission’s main commission’s proposals “will have a Germany’s coal exit commission – years to plug the gap. tute said. task is to make sure that Germany’s serious impact on RWE’s lignite busi- convened by Chancellor Angela Renewable energy has already made Offshore wind is also continuing to energy sector meets its 2030 climate ness”. It added: “The commission’s Merkel in 2018 to thrash out a defini- inroads into Germany’s power gen- grow in Germany, with almost 1000 targets, i.e., cutting greenhouse gas recommended end date of 2038 for tive agreement on the coal phase-out eration sector, with wind, solar, bio- MW of new capacity added in 2018 emissions by just over 60 per cent coal fired power generation is far too – says that the country’s coal fired mass and hydropower accounting for and a further 966 MW under construc- from a 1990 baseline. Its proposals early. It is therefore reasonable to re- power plants will close by 2038. A more than 40 per cent of electricity tion. According to Deutsche Wind- include reducing Germany’s 42.6 GW examine this date in 2032. An exten- review will take place in 2032 to de- generation in 2018, according to the Guard, 1305 offshore wind turbines of coal power capacity to about 30 GW sion that is necessary from the point cide if the deadline can be brought Fraunhofer Institute. with a total output of 6382 MW fed by 2022, and then to around 17 GW of view of security of supply should forward to 2035. Last year, solar power generating into Germany’s grid in 2018. by 2030. then also be considered.” Italy targets 93 GW of UK clean air strategy renewables Italy is aiming to have an installed base by 2030. Renewable power generation of 93 GW of renewable energy capac- will reach 187 TWh in 2030 – equiva- ity by 2030, according to its National lent to 55 per cent of electricity con- targets particulates Integrated Plan for Climate and Energy. sumption, MISE says. Italian Ministry of Economic Devel- In 2016, about 67 per cent of Italy’s opment (MISE) has submitted the plan electricity production came from fos- n Strategy will support clean growth, says government to the European Commission, outlin- sil fuels, while renewable energy, ing its plans to boost renewable power including hydroelectricity, was re- n Consultation planned on coal-to-biomass conversions generation as well as its main climate sponsible for roughly 33 per cent of goals for 2020 and 2030. the country’s electricity production. According to the plan, Italy will have Italy has committed to phasing out an installed base of 50 880 MW of coal fired generation by 2025. solar – including 880 MW of concen- Italy intends to reduce oil product trated solar power (CSP), 19 200 MW consumption by 13 Mtoe by 2030 and of hydropower capacity, 18 400 MW to improve energy efficiency by 30 of wind and 3764 MW of bioenergy per cent. Ostroleka C wins capacity market contract Poland is pushing ahead with plans to poses to investors due to rising carbon develop the Ostroleka C coal fired prices, increased competition from power plant in spite of protests from cheaper renewables and the impact of environmental groups. EU energy reforms on state subsidies Elektrownia Ostroleka, a company for coal power under the capacity co-owned by energy giants Enea and market. Energa, has won a 15-year capacity ClientEarth lawyer Peter Barnett market contract for the project, which said: “This plant is a stranded asset in is set to become Poland’s largest coal- the making. The economic analysis is fired power plant clear and there is widespread market The UK government has launched an which aims to decarbonise the coun- External Affairs at the Renewable Enea and Energa has previously said concern about the plant. ambitious programme aimed at reduc- try’s economy in line with climate Energy Association commented: that they would only go ahead with the “Companies and their directors are ing air pollution in an attempt to im- targets. “The government’s Clean Air Strat- project if it received the subsidies, legally responsible for managing the prove the environment and improve The UK government also says it will egy includes welcome ambitions to which are likely to amount to around financial risks and opportunities posed public health. consult on making coal-to-biomass bring the UK’s air quality in line with €1.4 billion over the 15-year contract. by climate change. Enea appears to be The proposed Clean Air Strategy conversion projects ineligible for re- WHO limits. To take this plan for- In July, Elektrownia Ostroleka signed turning a blind eye to the well-docu- will tackle sources of pollution from newable support mechanisms in the ward, government must now deliver a contract with GE Power and Alstom mented risks threatening this project. all sectors of the economy, including future. strong sector specific policies that Power to build the unit on the site of the “Shareholders cannot sit back as transport and energy, and in particular In the UK several large coal fired support technologies to address these 647 MW Ostroleka B plant in north- companies gamble their funds on ex- aims to reduce people’s exposure to power plants have converted to using concerns, while also properly enforc- eastern Poland owned by Energa. pensive, outdated and polluting tech- particulate matter (PM). biomass, including several units at the ing existing controls such as Clean Environmental group Client Earth nologies – climate litigation is only In the Strategy’s proposals, the gov- 4000 MW Drax power plant, which Air Zones and existing legislation. has launched a legal challenge to the going to pick up the pace for companies ernment says it will seek ways to sup- burns about 7 million tons a year of “From a renewable power perspec- project based on the risks to the climate that cling to fossil fuels.” port clean growth and innovation, compressed wood pellets imported tive, proposals to remove future bio- posed by the project. Ostroleka C would have a net effi- while policies surrounding electricity from the US and Canada. mass power sites from future renew- Client Earth is a shareholder in Enea ciency of at least 45 per cent. Energy and heat will be geared towards im- There is concern that biomass firing able power auctions seemingly ignore and in 2018 filed a challenge against ministry officials have said the unit is proving air quality and tackling cli- produces similar amounts of carbon the strenuous, tightly controlled and the company’s decision to greenlight indispensable for power supply secu- mate change. dioxide as burning coal, and also con- audited emission standards already in the 1 GW Ostrołęka C plant. rity and needed to synchronize the The Strategy aligns with the govern- tributes to poorer air quality. place, which also continue to be The court action hinges on the “in- Polish power grid with those of the ment’s current Clean Growth Strategy, James Court, Director of Policy & strengthened.” defensible” financial risk the project Baltic states. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 8 International News Uzbekistan’s nuclear power plans take shape n Site choice and contract signing expected this year n EBRD backs Uzbek CCGT Construction of Uzbekistan’s first nu- construction of the station and coop- sign a construction contract, Kun.uz level, different type of relationships, n The European Bank for Reconstruc- clear power plant could start by 2022, eration between Uzbekistan and Rus- reported. new technologies, science and educa- tion and Development (EBRD) has according to local media reports. sia in the field of nuclear energy,” said The proposed reactor will consist of tion development.” agreed a $240 million sovereign loan The country is turning to nuclear en- Alexander Lokshin, Rosatom’s first two units with a combined output of Uzbekistan is the world’s seventh- with Uzbekenergo to help build a 900 ergy as part of wider reforms aimed at deputy director general for operational 2.4 GW. The first reactor could be on- largest uranium producer. “The choice MW combined cycle gas turbine boosting the economy, and is working management, in an interview with an line by 2029, while construction of the was made in favour of nuclear power (CCGT) power plant. The new plant with Russia to identify and develop the Uzbek news agency. second unit could begin in 2024. given uranium availability and most will be located at the site of the existing first site. Russian firm Rosatom and Uzbek Uzatom head Jurabek Mirza- importantly, economic benefits to the Talimarjan power plant and will help “Active work is under way in Uzbeki- nuclear energy agency Uzatom expect makhmudov was quoted by the Finan- country. Today this is one of the clean- to support economic growth. The proj- stan to find a site for the country’s first to finalise the decision on the choice of cial Times as saying: “We will be join- est, ecologically safest sources of ect will be co-financed with the Asian nuclear power plant, and measures site by the end of March 2019. They ing the club of countries with the power, as well as the cheapest one after Development Bank (ADB) and the have been launched to prepare the leg- are also aiming to complete detailed peaceful use of nuclear energy. That is hydropower,” Mirzamakhmudov told Uzbek Fund for Reconstruction and islative framework necessary for the surveys for the project this year, and to an elite club. This is a whole new the FT. Development (UFRD). Kenya backs Lamu Egypt delays project wind tender n Need for Lamu questioned n Nuclear programme on track

Siân Crampsie and Centum as the local partners with 300 MW Lake Turkana wind farm General Electric and the Investment was commissioned. Kenya’s government has listed a pro- and Power Construction Corporation Kenya is also in the process of de- posed 1050 MW coal fired power of China. The consortium – known as veloping nuclear energy. project as one of its priority energy Amu Power – has already signed a Last month the Kenya Nuclear Elec- sector projects in the coming financial power purchase agreement with tricity Board (KNEB) said it had con- year. Kenya Power. cluded the process of analysis and The Lamu power plant is opposed Kenya has outlined an ambitious selection of potential sites for Kenya’s by climate change activists and inter- plan to build 3000 MW of new power first nuclear power plant. national agencies but is included in generating capacity over the next five KNEB said that it has identified lo- the Kenyan government’s latest list of years but Kenya’s Energy Regulatory cations around Lake Victoria, Lake planned Public Private Partnership Commission (ERC) has voiced con- Turkana and the Indian Ocean as po- projects for the financial period up to cerns that electricity supply will out- tential sites for the first plant due to 2021. strip demand and lead to higher en- their sustainable water sources. A draft 2019 Budget Policy State- ergy prices. KNEB Chief Executive Officer Col- ment released last month by Kenya’s ERC recently said that by 2024, lins Juma said the board is currently A tender for the construction of a 250 Bidders for the project include Vestas, Treasury also ranked the coal plant power producers in Kenya could be conducting a screening exercise for MW wind farm in Egypt has been de- Siemens and Senvion. together with the 105 MW Menengai running at 43 per cent of generating potential sites identified to come up layed at the request of two bidding The wind farm is one of a number Phase 1 geothermal as key energy sec- capacity, largely because of new re- with candidate locations. “The board companies. being developed in Egypt by interna- tor projects to be pursued in the cur- newable energy projects being is in the process of selecting a qualified Egypt’s New and Renewable Energy tional companies. rent financial year. brought on line. It has advised that a firm to develop terms of reference for Authority (NREA) said it had agreed NREA said in January that four in- Opponents to the plant, to be lo- number of power projects – including site characterisation for nuclear pow- to delay the deadline for receiving bids dependent power producers had put in cated in Lamu county, say that it will Lamu – should be delayed. er plants in Kenya after it closed in- for the Gulf of Suez wind farm to Feb- a request for land for the development result in air and groundwater pollu- In December 2018, President Uhu- ternational tender notice,” he said ruary but that the tender would not be of wind farms in the Suez Gulf. tion, and also question the need for ru Kenyatta broke ground for the during a stakeholders’ dialogue forum delayed again. The wind farms represent invest- the additional capacity. construction of the 83 MW sixth in Kisumu. The delay was agreed with the Ger- ments of $500 million and will have a Lamu has been developed by a con- phase of the Olkaria 1 geothermal Kenya’s first nuclear plant could be man Development Bank, KfW, which combined output of 400 MW, NREA sortium of firms led by Gulf Energy energy project. Earlier in 2018 the on-line by 2027, KNEB said. is arranging financing for the project. said. Bahrain invites solar UAE nuclear project delayed bids The start-up of the UAE’s first nucle- Power Corporation (KEPCO) in the was 91 per cent complete. ar power plant has been delayed, ac- UAE. The four units will together generate The Abu Dhabi Future Energy Com- power project will be developed at the cording to the plant’s operator. “The results of Nawah’s review 5600 MW of power and are scheduled pany (Masdar) is one of several com- Askar landfill site. The project will be Operations at the $24.4 billion Bara- forecast that the loading of nuclear to be fully completed and opertional panies to have submitted a bid for the one of several solar projects slated for kah power plant were due to start in fuel assemblies required to com- in 2022. construction of a 100 MW solar pow- development in Bahrain with a total 2018 but Nawah Energy Company, mence nuclear operations at Barakah Barakah One is a joint venture be- er plant in Bahrain, according to gov- capacity of 255 MW. the operator of the Barakah nuclear Unit 1 will occur between the end of tween Emirates Nuclear Energy Cor- ernment officials. Bahrain has set a target of five per energy plant in the Al-Dhafra Region 2019 and early 2020,” Nawah said in poration (ENEC) and KEPCO. Dr Abdulhussain Mirza, Electricity cent renewables in its energy mix by of Abu Dhabi, says that operations are a statement. The UAE will be the first new coun- and Water Affairs Minister of Bahrain, 2025. Overall, it is aiming to have 700 now scheduled to begin between the The Barakah power plant is cur- try to acquire nuclear power in more told reporters in January that tenders MW of installed renewable energy end of 2019 and early 2020. rently the world’s largest nuclear proj- than two decades. Bangladesh, Tur- for the proposed project have already capacity by 2030. Nawah has completed a comprehen- ect under construction and will be the key and Saudi Arabia are preparing to been received. The project will form a Renewable energy will not only help sive operational readiness review for first in the Arab world. In December follow suit and the World Nuclear key part of Bahrain’s efforts to achieve the country to reduce carbon emis- an updated start-up schedule for unit 2018, the Emirates Nuclear Energy Association estimates that nuclear its renewable energy targets. sions, but will also enhance energy 1 at Barakah, which is the first of four Corporation (ENEC) said that con- power is planned in over 20 countries According to local reports, the solar security. reactors being built by Korea Electric struction of the Barakah power plant which do not currently have it. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Companies News 9 Shell partnership eyes Eneco bid n Eneco set for auction sale n Shell, PGGM boost sustainable credentials Siân Crampsie opportunities for long-term invest- as a cornerstone of its investment both societal and commercial value.” First Utility, giving it direct access to ments in a more sustainable economy policy for Dutch pension capital, while Shell established its New Energies retail customers in the electricity and Energy major Shell is considering an and we think Eneco can play a central Shell said that the Eneco business business to create business opportuni- gas sectors for the first time. investment in Dutch sustainable ener- role in realising the consortium’s would complement its existing New ties in the transition to a low-carbon n EDF Renewables North America gy group Eneco as part of its wider shared ambitions. PGGM and Shell Energies business unit. “This provides future and intends to increase its role and Shell New Energies US have plans to boost its role in new and renew- bring complementary experience and opportunities along the entire energy in the energy transition through invest- formed a 50-50 joint venture to de- able energy. expertise across Eneco’s activities, value chain, from generation of renew- ments in offshore wind, solar, e-mobil- velop an offshore wind farm in the New Shell said last month that it could which will support the delivery of af- able power to trading and delivery at ity, and the power sector. Jersey Wind Energy Area (WEA) off partner up with Dutch pension fund fordable sustainable energy to a grow- home, on the road and at work,” said Eneco is expected to be sold later this the coast of northeastern USA. The PGGM to participate in the planned ing number of customers in northwest Shell’s Integrated Gas & New Energies year via a controlled auction. joint venture, called Atlantic Shores sale of Eneco, one of the largest provid- Europe,” said Frank Roeters van Len- Director Maarten Wetselaar. Shell has pledged to spend up to $1-2 Offshore Wind could develop up to ers of natural gas and electricity in the nep, Chief Investment Officer Private “Eneco’s business neatly fits with billion annually on its low carbon busi- 2500 MW in the lease area, located Netherlands. It said that it was “im- Markets PGGM. Shell’s New Energies activities and nesses. Its proposed investment in En- around 15 km off the coast of Atlantic pressed with Eneco’s achievements in Eneco’s 53 municipal shareholders ambitions to continuously find new eco is another sign that companies City. The area offers strong and steady transforming the Dutch energy system announced in December 2018 that they ways to reduce carbon emissions and heavily invested in fossil fuels are start- wind resources in relatively shallow through investments in sustainability would sell the company. The business provide more and cleaner energy. The ing to diversify their businesses in or- water, close to large population centers and renewable energy”. has been valued at around €3 billion. consortium is committed to expand and der to reduce risk. with associated electricity demand. “The energy transition offers good PGGM said that it sees sustainability develop business models that create Last year Shell invested in UK-based Virgin backs Fires force PG&E into bankruptcy electricity n Protection will enable management of liabilities n PPAs under scrutiny The future of Pacific Gas & Electric that “continues to be challenged by require us to address multiple stake- (PG&E), one of the largest energy climate change”. holder interests, including thousands ‘Uber’ utilities in the USA, is in doubt follow- In a statement, PG&E said: “The of wildfire victims and others who have ing its decision to file for voluntary company does not expect any impact already made claims and likely thou- A UK-based energy start-up is aiming electricity grid and help it cope with bankruptcy protection at the end of to electric or natural gas service for its sands of others we expect to make to become the “Uber of electricity” and a predicted large roll-out of electric January. customers as a result of the Chapter 11 claims,” PG&E said in a statement. has won backing from the Virgin Start- vehicles over the next 25 years. The firm, which serves around 16 process. PG&E remains committed to PG&E’s situation has also affected up investment programme. Virgin Startup has awarded Resil- million people across northern and assisting the communities affected by its many suppliers, including operators Resilience Energy wants to turn ience a loan. The energy company is central California, said in mid-January wildfires in northern California, and its of renewable energy projects with people’s homes into mini power sta- also working with aggregator KiWi that it would file for bankruptcy to help restoration and rebuilding efforts will long-term power purchase agreements tions capable of meeting all of their Power to help it manage some of its it manage its estimated $30 billion of continue.” (PPAs). Credit ratings of several sup- own energy needs as having the abil- larger contracts. liabilities associated with wild fires in An investigation by authorities into pliers have also been cut sharply, par- ity to store and sell energy to others. Homeowners will pay up to £13 500 California in 2017 and 2018. the 2017 Tubbs fire recently concluded ticularly for those plant operators Its business model will not only en- to install a Resilience system, consist- The announcement sent shockwaves that the utility’s equipment was not the whose revenues are reliant on PG&E able homeowners to cut their energy ing of solar panels, a battery and an through the US energy sector, where cause of the fire. However PG&E says contracts. It is possible that PG&E will bills by 80 per cent, but will also help app, which will have an eight-year regulated utilities are generally viewed that it continues to face “extensive seek to renegotiate PPA contracts, the UK to meets its challenging carbon payback, the company says. as a ‘safe bet’ for investors and other litigation” and “significant potential analysts believe. targets, the company says. Resilience Energy is hoping to sell stakeholders. It has also prompted dis- liabilities” associated with wildfires in An investigation into the 2018 wild- Resilience wants to give energy con- its systems directly to private home- cussion about the risks and impacts of California. fires in California has started. The state sumers the hardware, software and owners as well as through housing climate change on businesses in the Its financial position has further been has the most stringent vegetation man- contracts they need to produce, store providers and constructors, energy energy sector. affected by recent credit downgrades agement requirements and clearances and sell energy. The model could also suppliers, and EV and charging point PG&E said that Chapter 11 bank- to below investment grades, PG&E in the US and the state’s three investor- bring more flexibility to the UK’s manufacturers. ruptcy would be the best way for it to said. “Resolving the legal liabilities owned utilities spend more than a bil- address the liabilities while continuing and financial challenges stemming lion dollars annually on tree trimming to serve its customers and investing in from the 2017 and 2018 wildfires will activities, according to the California its infrastructure “in an environment be enormously complex and will Public Utilities Commission. Masdar targets Eastern Europe Masdar says it will target Central and 3 GW of new capacity is expected to gained through our strong collabora- Eastern Europe’s renewable energy be added over the next few years. The tion, to help countries in Central and sector through a new joint venture with two companies also believe there will Eastern Europe meet their renewable Finnish firm Taaleri Energia. be opportunities in markets such as energy goals.” The two companies recently an- Greece and the Balkans, where ageing The JV agreement was signed during nounced plans to expand an existing coal fired capacity will be replaced in the World Future Energy Summit collaboration – centred on the western the coming years. (WFES) in Abu Dhabi. Balkans – into other parts of Europe Bader Al Lamki, Executive Director Taaleri and Masdar already work where opportunities in onshore wind of Clean Energy, Masdar, said: “What together on projects in the western and solar energy are forecast to be we’ve accomplished in partnership Balkans. Among those is the 158 MW “substantial”. with Taaleri in Serbia and Jordan is a Cibuk I wind farm in Serbia, planned Abu Dhabi-based Masdar and Fin- testament to the important role that to be launched this year. The compa- land-based Taaleri said in a statement strong partnerships play in unlocking nies have also joined fores to build a that their plans include the Polish on- access to renewable energy. We are 248 MWp solar park in Jordan, which shore wind market, where more than proud to build on the experiences will be the largest in the country. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 10 Tenders, Bids & Contracts

Americas capacity in Telangana, India. with a hot water absorption chiller in Holaluz, EDF Solar sign BHEL will construct four PV a microgrid optimisation project to SGRE wins Scioto Ridge plants on an engineering, procure- supply electricity, hot water and PPAs ment and construction (EPC) basis. chilled water. Spanish electricity firm Holaluz has Innogy SE has awarded Siemens The company said that the order is The low-pressure natural gas signed a power purchase agreement Gamesa Renewable Energy (SGRE) the largest it has ever received for (LPNG) C200 microturbine, config- (PPA) with EDF Solar covering proj- a contract to supply the wind turbines solar photovoltaics. ured in a combined cooling heat and ects in the Iberian Peninsula totalling for the 242 MW Scioto Ridge onshore The plants will consist of a 50 power (CCHP) package, will also 120 MW. wind energy project in Ohio, USA. MW site at Ramagundam, 39 MW have the capability to run dual mode, Holaluz said that the three-year The contract includes the supply of at Yellandu, 30 MW at Manuguru, providing electricity and thermal en- agreement will help develop several 63 of SGRE’s SG3.4-132 and nine and 10 MW at Pegadapally. ergy in island mode as well as when photovoltaic (PV) plants in Spain of its SG2.6-114 wind turbines, as connected to the local utility grid. and Portugal, with a total invest- well as a 10-year service and mainte- Atria Power opts for ment close to €80 million ($91.16 nance agreement. million). Andrew Young, CEO of Innogy Suzlon Europe Holaluz, through a Representation Renewables US, said: “Only half a Atria Power has placed an order with Agreement, will sell the energy gen- year after the successful acquisition Suzlon for the supply and installation BayWa r.e. lands solar erated by the parks to the wholesale of the more than 2000 MW US on- of the turbines for a 50.4 MW wind O&M deal electricity market. shore pipeline and development farm in Tuticorin, Tamil Nadu, India. There are two plants already under team from EverPower and Terra Fir- Suzlon will install 12 units of BayWa r.e. has secured a contract for construction, located in Toledo (8 ma, we have now started executing S111-140m and 12 units of S120- the operation and maintenance of 13 MW) and Oporto (3 MW). Three our first US project.” 140m wind turbine generators with UK solar farms on behalf of Octopus other facilities are planned to break Commissioning of Scioto Ridge is hybrid lattice tubular towers, with Investments. ground between May and Septem- due to start in late 2020. rated capacity of 2.1 MW each. Under the contract, BayWa r.e. will ber of this year, in Castilla y Leon The order is the first from Atria provide the complete scope of O&M (50 MW), Andalucia (40 MW) and Wärtsilä tech supports Power for Suzlon and is part of the services for 61.1 MW of solar photo- Aragon (12 MW). Argentinian oil company’s letter of intent orders of voltaic (PV) capacity. It follows a 484 MW. Suzlon will execute the deal signed in May 2018 for BayWa Double Dutch order for Wärtsilä has been selected to supply a project on a turnkey basis and will r.e. to take over the technical and power plant to support operations in also provide comprehensive opera- commercial asset management of Nordex one of Argentina’s most important tion and maintenance services. four of Octopus’ UK wind farms, Germany-based Nordex Group has oilfields. The project will be commissioned with a total output of 149 MW. received an order from Vattenfall to The Finland-based company will in two phases by the first half of BayWa r.e.’s serviced portfolio supply turbines for two wind farms provide a 57 MW gas fired power 2020. now stands at over 1.9 GW of utili- in the Netherlands. plant to power oil fields in the Man- ty-scale projects, it said. The 22 MW Haringvliet project antiales Behr basin. It will replace an PowerChina signs coal The scope to be performed on the will comprise six N117/3675 ma- existing gas turbine-based power Octopus PV sites will include all chines, while the 27 MW Moerdijk plant and will consist of five 31 SG plant deal electrical and non-electrical tasks re- project will consist of seven engines. Excess power will be ex- PowerChina has signed two deals with quired for plant management and N131/3900 turbines. The order also ported to the grid. UK-based GCM Resources for the performance optimisation of the so- includes a two-year Premium Ser- The 31SG engine is capable of op- development of a coal fired power lar farms. vice contract for both wind farms, erating in challenging climatic con- plant in Bangladesh. with the option of a subsequent ex- ditions, Wärtsilä says. The site con- The two companies have signed a Dresden orders 90 MW tension of 23 years. ditions in the Manantiales Behr joint venture deal as well as an engi- The first N117/3675 turbines for basin see wind speeds of up to 180 neering, procurement and construc- CHP plant Haringvliet are to be delivered in km/h, and temperatures that can tion (EPC) contract for the new Wärtsilä has been awarded a contract December 2019. Grid connection of range from -10°C to 40°C. The plant plant, which will be located in Dinaj- to deliver a combined heat and power the wind farm is scheduled for is expected to become fully opera- pur district, 338 km northwest of (CHP) engine-based plant to Dresden, spring 2020. tional in October 2020. Dhaka. Germany. The Moerdijk wind farm will be The power plant will consist of two The contract was placed by local installed in the port and industrial EDF targets Texas 1000 MW ultra-supercritical units Dresden utility Drewag and will be area of the town of Moerdijk, in the and is part of a strategy by GCM to executed on an engineering, procure- province of North Brabant. Comple- EDF Renewables North America has install 6000 MW of coal fired capac- ment and construction (EPC) basis. tion is scheduled for summer 2020 signed a multi-year agreement with ity in Bangladesh. It includes a ten-year operation and Phoenix Wind Repower to provide maintenance agreement with a five- operations and maintenance (O&M) Valmet tasked for China year extension option. International services for three wind projects in EfW plant The Dresden-Reick power plant Texas, USA. will feature eight Wärtsilä 31SG en- QPower extends Ras Under the terms of the agreement, Valmet and Urumchi Jinghuan Envi- gines operating on natural gas deliv- EDF Renewables will offer asset ronmental & Energy Co., Ltd. have ering electrical output of approxi- Laffan service deal management, balance of plant (BOP) signed a contract for the delivery of mately 90 MW. Siemens has signed an extension of a management, remote monitoring, two boiler plants for a greenfield The Dresden-Reick plant is sched- long term service agreement with Qa- and NERC Compliance Services for waste-to-energy plant in Urumchi, uled to become operational in 2021. tar Power Company (QPower) to the wind projects. The company said China. maintain and support operations at the that the agreement brings its asset The new energy from waste (EfW) Ras Laffan B combined cycle power optimisation portfolio in Texas to plant will use refuse derived fuel Valmet wins TSE deal plant. over 2300 MW. (RDF) and will use Valmet’s Valmet is to supply flue gas condens- Under the 15-year deal, Siemens The agreement covers the 225 MW CYMIC boiler technology. The or- ing and asphaltene combustion sys- will provide maintenance, parts and Trinity Hills wind farm, the 145 MW der represents Valmet’s largest EfW tems to the NA4 power plant in Finland repair services for three SGT5- Sherbino Mesa II project, and the 60 delivery in China. after receiving an order from energy 4000F gas turbines, two SST5-6000 MW Silver Star project, which are Installation of the boiler is sched- company Turun Seudun Energiantu- steam turbines, and their associated currently operating with Clipper uled to begin in March 2019. Heat otanto Oy (TSE). generators. In addition, the agree- C96-2.5 machines. These wind proj- and power production will start by The new flue gas condensing sys- ment includes the supply of a broad ects are expected to be repowered the end of 2019. tem will enable Turun Seudun Ener- spectrum of the company’s digital with Vestas V110-2.2 technology by giantuotanto to increase their dis- services and cybersecurity solu- 2020. Senvion confirms 300 MW trict-heat production capacity and tions, designed to boost efficiency improve efficiency at the NA4 unit. and reliability of the power plant’s Indian job The asphaltene combustion system operation. Asia-Pacific Senvion has announced a firm order will enable TSE to replace coal with The 1025 MW Ras Laffan B pow- China hubs reach new for the 300 MW Bhuj wind farm in the an oil refinery byproduct. er plant was built in 2006 to meet Indian state of Gujurat. Delivery is scheduled to be com- increasing demand for power and heights The company will supply develop- pleted by the end of 2019. water, as the second independent An order from a customer in China er Alfanar with 131 of its 2.3M130 water and power plant (IWPP) in will take Vestas’ 2 MW platform to the turbines on a full engineering, pro- Uniper to build new gas the country. highest hub heights in the company’s curement and construction (EPC) ba- history. sis. It will supply the machines for fired plant in Irsching Russian success for Vestas Vestas has secured a 101 MW or- installation in the second quarter of TenneT has awarded Uniper a contract Vestas has received an order to equip der for 46 of its V120-2.2 MW tur- 2020. It will also operate and main- to build a new gas fired power plant a 198 MW wind farm in Russia. bines, which will be mounted on 152 tain the facility for more than 10 with a capacity of 300 MW in Irsching, Vestas will supply, install and com- m-high towers. years. near Ingolstadt, Germany. mission 52 of its V126-3.45 MW The towers will be the tallest in The contract follows a call for bids turbines in 3.8 MW power optimised China, Vestas added. Delivery and Microgrid order cheers issued by TenneT and fellow grid mode for the Kamensko-Krasnosu- commissioning are expected to take operators Amprion and TransnetBW linsky wind farm in Russia’s Rostov place in the second quarter of 2019. Capstone for the construction of 1200 MW of region. Delivery is planned for the Capstone Turbine Corporation has capacity under ‘special grid facili- fourth quarter of 2019. secured an order for a C200 mictotur- ties’ legislation in Germany. The Kamensko-Krasnosulinsky BHEL wins PV order bine that will be part of a Chinese util- The Irsching power plant will be wind farm will be the largest in Rus- Singareni Colleries Company has ity microgrid project. commercially available from Octo- sia and is being developed by WEDF placed an order with Bharat Heavy Secured by EED International, a ber 2022 and will serve as a reserve Second Wind Farm LLC, a joint Electricals Limited (BHEL) to build Capstone distributor for China, the power plant available for operations venture between Russian group Rus- 129 MW of solar photovoltaic (PV) system will be used in conjunction at short notice. nano and Finnish utility Fortum Oyj. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Energy Industry Data 11

Annual power generation capacity additions, 2010-2017 For more information, please contact: International Energy Agency 9, rue de la Fédération 75739 Paris Cedex 15 France.

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

World Energy Outlook 2018, © IEA/OECD, Figure 7.11, page 293

Power plants under construction or expected to 2020 and expected annual generation in 2020 by source

World Energy Outlook 2018, © IEA/OECD, Figure 7.12, page 294

Electricity generation, power mix and carbon intensity, 2000, 2010 and 2017

World Energy Outlook 2018, © IEA/OECD, Figure 7.13, page 295

Source: World Energy Outlook 2018 THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 12 Fuel Watch

Oil Crude Oil Prices - 2018-2019 Settlement Prices For Benchmark Crudes ($/B) Nymex WTI ICE Brent DME Oman OPEC Basket

Price/Barrel US set to become net $80.00 $75.00

$70.00 oil exporter as shale $65.00 $60.00

$55.00 production rises $50.00 $45.00

$40.00 n Crude production in 2018 up 1.6 million b/d $35.00 n Opec+ agrees to cut output by a total of 1.2 million b/d $30.00 $25.00 beginning in January Date 18 Dec 26 Dec 2 Jan 7 Jan 11 Jan 14 Jan 17 Jan 2018 2018 2019 2019 2019 2019 2019

Mark Goetz on average, US oil output has increased average of 3.8 million b/d in 2017 to cheap oil (US shale oil) out of the mar- of 31.6 million barrels. Opec’s share by about 1 million b/d over the last around 2.4 million b/d in 2018. The ket. But cost cutting and new extraction of the new cutbacks is 800 000 b/d. Its As Opec+ (Opec and its non-Opec oil decade and has exceeded previous EIA office estimates that for a short time techniques enabled a number of shale allies are to cut output by 400 000 b/d. producing allies) launch a second oil forecasts for US oil production from in November 2018, the US was a net producers to survive the shakeout. Opec leader Saudi Arabia is expected production cutback meant to reduce several years ago. exporter. That is likely to happen again It was the folly in this approach that to make further production cuts of its crude volumes on the oil market and Furthermore, the US is set to become and again intermittently over the next forced Saudi Arabia and its new non- own in the months ahead. grow prices that remain barely above a net exporter of crude oil in the fourth two years, but by 2020 there are strong Opec partners at end-2016 to introduce The level of output from the US “will $60/b, US oil producers, so far uncon- quarter of 2020, meaning it exports signals that the US as a net exporter cutbacks designed to remove oil sur- once again be a major factor in 2019”, strained by falling prices, continue to more crude and products than it im- will be the norm. pluses from the market. Growing pro- the International Energy Agency said pump oil at a record breaking pace. ports. While America has long-sought The EIA forecasts that net imports duction in the US caused Congress to in its latest monthly report. “We saw The US Energy Information Admin- energy independence, becoming a net will fall to average 1.1 million b/d in allow American companies to export incredible and unexpected growth in istration (EIA) reported in its January exporter will not mean that the US will 2019 and about 0.1 million during crude resulting in a need by the US total liquids production of 2.1 million 2019 ‘Short-Term Energy Outlook’ escape the need to import the particular 2020. However, by the fourth quarter industry to now move forward with b/d,” it said. “For this year [2019] we that US crude production averaged crudes that work in its refineries, but it of 2020, the US will be a net exporter new pipelines and infrastructure that have left unchanged for now our fore- 10.9 million b/d during 2018, 1.6 mil- does mean that its role on the global by an average of 0.9 million b/d. will make more US crude available to cast for growth of 1.3 million b/d. lion b/d more than 2017, and forecast oil stage will be upgraded, and to that How this will impact Opec+ and the the global market. While the other two giants [Saudi Ara- that US output would hit an average of extent, many of the big oil producers global oil market will be interesting to Opec+ met in Vienna in early Decem- bia and Russia] cut output voluntarily, 12.1 million b/d in 2019 and 12.9 mil- such as Saudi Arabia and Russia, part- watch. The US lets the market dictate ber and agreed to cut output by a total the US, already the biggest liquids sup- lion b/d in 2020, with most of this oil ners in the Opec+ effort to rebalance production whereas Opec+ looks to of 1.2 million b/d beginning in January, plier, will reinforce its leadership as the coming from the Permian region of the market and boost prices, will like- manipulate output in order to get the but according to data released by Opec world’s number one crude producer.” Texas and New Mexico. ly have to apply even more discipline. best monetary result for its members. this month, the group has already According to the IEA, by the middle This growth in production can be at- According to the EIA data, US crude It must be recalled that in 2014, Opec started cutting back on production. of 2019, US crude output “will prob- tributed to the shale (or tight) oil sector oil and petroleum products net im- – Saudi Arabia in particular – decided During December Opec output fell by ably be more than the capacity of either of the industry. According to EIA data, ports have declined from an estimated to turn on the oil taps in order to force 751 000 b/d for a total monthly average Saudi Arabia or Russia.” Gas East Mediterranean countries move to create Region Gas Forum East Mediterranean energy ministers met last month to kick-start plans for a gas and energy hub in the region.

David Gregory Egypt recently announced that it is agreements to send gas from the Le- is supplying a West Bank power sta- to that terminal. capable of meeting domestic demand viathan and Tamar gas fields to Egypt tion. Italy is involved because of Eni Adding to the energy hub mix are East Mediterranean energy ministers and has already resumed exports of for LNG processing have been and also because a Greek/Italian joint the proposed EuroAsia, EuroAfrica and other officials assembled in Cairo pipeline gas to Jordan and LNG from signed. This year could see an official venture, IGI Poseidon, is proposing electricity cable projects that would in mid-January to launch the creation the Idku facility. Talks to restart pro- accord that will see that happen. Fol- the construction of a 2000 km subsea follow the course of the EastMed Gas of an East Mediterranean Gas Forum, cessing at the Damietta plant are in lowing the Cairo meeting, Israeli pipeline that will cross the East Med- Pipeline. Cables from Israel and Egypt the purpose of which is to cooperate progress. Energy Minister Yuval Steinitz said iterranean to bring Israeli and Cypriot would link up in Cyprus and carry and coordinate the development of a The main turnaround for Egypt came talks were under way to build a subsea gas to Europe through Crete, Greece electricity generated in the region to natural gas industry and energy hub with the discovery of the Zohr gas field pipeline to Egypt to transport Israeli and to Italy. The governments of Cy- Greece and Europe. This system could in a region that is proving to contain by Italy’s Eni in 2015. The field holds gas. prus, Greece, Israel and Italy have be working in a limited degree within significant hydrocarbon resources. 30 trillion cubic feet (tcf) of natural For Egypt, its goal is to become the endorsed the project, as challenging a few years. Officials from Egypt, Cyprus, Israel, gas and production from the field will East Med energy hub. Imports of gas as it may be. The EastMed Gas Pipe- The East Mediterranean is going to Greece, Jordan, Italy and the Palestin- soon average more than 3 bcf/day. By from Cyprus and Israel that will be line is not expected to really take shape see major economic and infrastruc- ian Authority endorsed the project and 2020, output from Zohr and several re-exported as LNG will confirm that, until the early 2020s, but Egypt has tural changes over the next 10 years. are now studying documents govern- other fields will put Egypt’s daily out- plus pipeline exports to Jordan expressed an interest in the project too. Egypt is ideally suited to be an energy ing the forum. They plan to meet again put at around 7 bcf. through the Arab Gas Pipeline, which Another important project in the hub. It has the geographical location, in April or May to establish it as a Eni is a major player in Egypt’s gas two decades ago was seen as a project works is the Alexandroupolis Inde- the Suez Canal and its new industrial viable organisation. industry and it is also the largest in- that would transport Egyptian gas to pendent Natural Gas System (INGS) zones, a strong gas production sector, Egypt has long been a gas producer vestor in offshore Cyprus, where two Jordan, Syria, Lebanon, Turkey, and being carried out by Greece’s Gas- plus the infrastructure that neighbour- but output declined earlier this decade gas discoveries have been made. Cur- to Europe. Egypt also wants to boost trade. The project calls for a floating ing Israel and Cyprus can use to export after the January 2011 revolution. Ex- rently ExxonMobil is drilling its sec- electricity exports to Jordan, Libya, storage and regasification unit (FSRU) their own gas resources. Furthermore, ports of LNG and gas exports by pipe- ond offshore well in Cyprus and and soon, Sudan. in the northern Aegean that would feed there is much more gas to be discov- line were halted in order to direct gas Noble Energy is negotiating with For several years Cyprus has been gas into Greece’s gas grid, the South- ered. Less than 10 wells have been production to domestic consumption. Egypt to transport gas from its Aph- instrumental in organising tripartite ern Gas Corridor and Interconnector- drilled offshore Cyprus. Israel has just However, over the last two years rodite field to Egypt’s Idku LNG meetings between it, Greece and Is- Greece-Bulgaria (IGB) pipelines that launched a new licensing round. At Egyptian gas output is coming back plant. rael, and between itself, Greece and will deliver gas to Italy, Europe and some point exploration will begin off- following legal reforms, reductions in Israel will begin to ship natural gas Egypt. Cyprus has also drawn Jordan the Balkans. Gas from the East Med- shore Lebanon. And there is a large subsidies, changes in licensing con- to private Egyptian firm Dolphinus into the circle. The Palestinian Au- iterranean, processed at Egypt’s LNG area offshore northwest Egypt that has tracts and rates of pay to producers. Holdings later this year and initial thority is involved because Israeli gas plants, is envisaged as being delivered yet to see any exploration. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Industry Perspective 13

Euratom: now what?

The potential impact of the UK’s withdrawal from the European Atomic Energy Community could have massive impacts. But with the March 29th deadline for Brexit fast approaching, there appears to be only one viable option to keep nuclear commerce open with the EU. Vince Zabielski explains.

rexit – and all the ongoing 2019, the nuclear cooperation agree- agreements in place with major sup- atom is put in place. The UK negoti- parliamentary wrangling – is ments that the UK has through Eura- plier countries. ated a comprehensive Agreement on seldom out of the headlines. tom shall no longer be in effect and In hindsight, there was little to be the withdrawal of the United King- B shall cease to function. optimistic about regarding a “soft dom of Great Britain and Northern But amidst all the speculation that businesses may be: considering relo- The UK’s post-Brexit nuclear landing” for the UK nuclear industry Ireland from the European Union cating to the mainland; the UK may strategy has been to put in place by after Brexit. Getting all the neces- and the European Atomic Energy soon be able to strike new trade the end of March 2019 all the inter- sary third-party cooperation agree- Community (“Withdrawal Agree- deals with the growth economies; national agreements it requires to ments in place, especially consider- ment”), but that agreement was and potential agreements on regula- ensure uninterrupted cooperation ing the resources necessary to soundly defeated by Parliament in tory standards, the potential impact and trade in the civil nuclear sector, negotiate the terms and conditions of the 15 January 2019 “meaningful of the UK’s withdrawal from the Eu- and to negotiate an orderly with- the larger Brexit from the European vote” on Brexit. ropean Atomic Energy Community, drawal from Euratom. This entails Union, was an extraordinarily ambi- While there are many criticisms to commonly known as ‘Euratom’, is negotiating a new nuclear coopera- tious undertaking, and one that was be made of the Withdrawal Agree- often overlooked. tion agreement with Euratom, as received with a dose of healthy scep- ment, one thing it did do very well However, this is a dangerous lapse well as simultaneously negotiating ticism from many observers. was orchestrate a deliberate and me- to ignore. It is, quite literally, a nu- individual agreements with the Past implementation of treaties thodical exit for the UK from Eura- clear issue, with an effect likely to be UK’s major nuclear trade partners. with Euratom and third parties have tom, while maintaining security and far reaching and profound. Exit from Euratom also requires proceeded at a glacial pace and, giv- safeguards standards at their current After all, the UK’s membership in setting up a domestic nuclear safe- en the hostility that the EU has levels. To be clear, both the EU and Euratom provides the framework for guards programme to take over shown to the UK at times during the the UK appear to agree on virtually bilateral cooperation in nuclear trade once the Euratom safeguards ar- Brexit process, there were few signs every aspect of the UK’s withdrawal between and among the United rangements are no longer in effect. of hope. Not helping matters, Barack from Euratom, down to the last de- Kingdom and the other 27 EU states Once the UK leaves Euratom, the Obama, the former President of the tail. So, what is the problem? that are party to the treaty, including UK will have the responsibility of United States, starkly warned that Exasperatingly, even though the major equipment and material sup- ensuring that all ores, source materi- the UK would be at the “back of the details of an orderly exit from Eura- pliers such as France, for example. als and special fissile materials cov- queue” in any trade deal with the tom have been worked out, the cur- Additionally, through bilateral nu- ered by the Euratom Treaty and pres- United States if the country chose to rent Euratom exit deal is being held clear cooperation agreements be- ent in the UK post-Brexit are leave the EU. hostage to the overall Brexit “deal”. tween the European Atomic Energy handled in accordance with applica- Despite generally low expecta- Unfortunately, with each passing Community and other states, the ble international treaties and conven- tions for success, the UK govern- day, hope of securing any kind of UK’s participation in the Communi- tions on nuclear safety, safeguards, ment has made good progress on deal – even a bad one – seems in- ty provides the basis for nuclear non-proliferation and physical pro- reaching new nuclear cooperation creasingly unlikely. power cooperation with Australia, tection of nuclear materials, and in- agreements with many of its non- With the Brexit deadline fast ap- Argentina, Canada, Japan, Kazakh- ternational treaties and conventions EU trading partners. A new agree- proaching, there appears to be only stan, South Africa, Ukraine, the on the safety of spent fuel manage- ment between the UK and the Unit- one viable option to keep nuclear Zabielski: the current Euratom ment and the safety of radioactive ed States was signed on May 4, commerce open with the EU: split exit deal is being held hostage United States, and Uzbekistan. Once the UK exits Euratom on March 29, waste management. 2018, and received US Congressio- exit from Euratom from the larger to the overall Brexit “deal” The good news is that the UK gov- nal approval in August 2018, and Brexit agenda. This would require ernment has reported remarkable that agreement is now before Parlia- the UK to forgo its current “all or progress in setting up a domestic ment for final approval. nothing” approach and introduce safeguards regime to replace the Likewise, new nuclear cooperation legislation to carve out the Euratom Euratom safeguards regime and has agreements have been agreed with deal for separate approval by Parlia- also made remarkable progress in Australia and Canada, which are ment. Separating exit from the Euro- putting new nuclear trade agree- both major suppliers of nuclear ma- pean Union from exit from the Euro- ments in place. terials to the UK. Negotiations to up- pean Atomic Energy Community The UK is well along the way to- date the existing nuclear cooperation would ensure that the nation’s nucle- wards implementing a domestic agreement with Japan also appear to ar commerce continues to operate safeguards system with the equiva- be on-track. Meanwhile, nuclear co- during an orderly transition from lent effectiveness and coverage as operation agreements with China Euratom, and while this may not be that previously provided under and Russia continue to remain in ef- a headline-grabbing title akin to the Euratom. fect, and the UK continues to discuss Irish backstop or customs union, it The new State System of Account- arrangements for ongoing coopera- would allow a largely unseen, but vi- ing for and Control of Nuclear Mate- tion with countries where nuclear tal, UK sector to continue functioning. rial (SSAC) will be administered by agreements are not a requirement but Ensuring a safe and orderly exit the Office of Nuclear Regulation are nonetheless currently in place from Euratom is necessary to protect (ONR) and will ensure that the UK through Euratom, such as Kazakh- nuclear energy generation both in the continues to meet its international stan and Uzbekistan, which are both UK and EU, but finalising an agree- non-proliferation commitments in major global suppliers of uranium. ment has been overshadowed by the the post-Brexit world. The ONR is However, an orderly exit from Eur- larger Brexit debate. With agree- developing a regulatory framework atom requires more than developing ments in place, or largely negotiated, to implement the SSAC, including a a domestic nuclear safeguards re- with the almost all UK nuclear trad- new information system capable of gime and putting a handful of nucle- ing partners, the lack of a Euratom processing nuclear material accoun- ar cooperation agreements in place, agreement is notable. Solving this is- tancy reports. The ONR will also as these don’t address the “unwind- sue would help prevent a costly di- need to hire and train safeguards in- ing” of the UK from Euratom. Nor lemma in the long run but, perhaps spectors, nuclear material accoun- do any of the nuclear cooperation of more interest to the government, it tants, and safeguards officers to ad- agreements that have been put in would also demonstrate that the gov- minister these new systems and to place provide for nuclear trade be- ernment is capable of solving prob- ensure compliance with the SSAC. tween the UK and the EU. Nuclear lems, even if just one at a time. In addition to developing the new commerce with key European trad- domestic safeguards regime, the UK ing partners, France most notably, Vince Zabielski is a former nuclear has also made astounding progress will be interrupted unless and until a engineer and now partner at the in putting new nuclear cooperation new treaty between the UK and Eur- international law firm Pillsbury. THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 14 Energy Outlook Preparing for a smarter world As Distribution Network Operators prepare for an energy market that is much more distributed, with customers requiring different services, TEI Times caught up with Northern Powergrid’s Jim Cardwell to discuss the challenges and pathways to addressing the needs of the future.

mart, flexible networks are es- around the need of its customers. units. make use of data analytics, sensing sential in managing the transi- Commenting on what he sees as the The work will give the organisation technologies and even EVs to shorten Stion to energy systems that have three biggest challenges facing net- the ability to respond to real-time in- outages and boost resilience to power an increasing amount of intermittent works and DNOs today and going formation about power flow on its cuts. renewables, electric vehicles, heat forward, Jim Cardwell, Head of Poli- network and build new capabilities With Nissan and National Grid, it pumps, energy storage systems and cy Development at Northern Power- that will enable it to roll out smart grid is running a world-first £9.8 million other distributed energy sources. They grid said: “The biggest of the chal- solutions that could generate up to trial exploring how EV batteries can are also crucial to consumers playing lenges is accommodating the £350 million of benefits by 2031. support the grid when plugged in for a much greater role in how networks changing energy practices of our “This was in our business plan for charging. e4Future will use 1000 are actually managed. customers, which are largely driven the 2015-23 period and we are already vehicle-to-grid chargers and evalu- However, there are several key by the whole decarbonisation agenda, well on with this implementation,” it ate a commercial offer for EV fleet challenges to the development of and doing that at least cost. stated in the report. “We are also get- customers. It is collaborating with smart grids and to distribution net- “The second is, even if there was no ting on with the transition by imple- Northern Gas Networks on InTE- work operator (DNOs) transforming decarbonisation, we would still be menting flexible solutions where it GReL, the UK’s first incubator for themselves from DNO to distribution expected to deliver more for our cus- makes sense to do so.” integrated energy system technology. system operator (DSO), i.e. moving tomers for less cost… and we are Another key project is the roll out of Northern Powergrid is also explor- from a company that is only respon- competing with the likes of Amazon “customer flexibility solutions”, ing how heating systems can be used sible for keeping the lights on and and First Direct in terms of the quality which will be implemented where to help balance power demand and connecting customers to the network, of our customer service. The big thing possible instead of long-term asset how gas storage could support the to one that offers customers services for us is making sure we keep the solutions. The plan is to combine electricity system. that go beyond just supplying elec- lights on and have fewer or shorter network flexibility solutions with The report also highlighted that its tricity and rewarding them for play- duration power cuts for less cost. customer flexibility solutions to Active Network Management (ANM) ing a more active role in supporting “The third thing is what I would call maximise the use of the existing as- solution at Driffield in Yorkshire is the network. ‘new risks’. The whole cyber security sets that make up the local grid. providing scalable capability to con- issue is one that keeps us going at the According to government analysis, nect more generation at least cost as moment. The difficulty with using using flexibility is the best way to an alternative to conventional rein- smarter technology is that you poten- develop the electricity system, limit- forcement. The Driffield ANM tially open yourself up to new risks. ing network upgrades, enabling more scheme is on a 66 kV section of the We’ve seen high profile cases of renewable generation, and offering network that is considered to be oper- electricity grids being targeted by UK consumers estimated savings of ating at full capacity in relation to those that want to do harm. So it’s all £17-£40 billion by 2050. embedded generation connections. about investing in security systems Northern Powergrid expects its Through ANM, Northern Powergrid and our people, so we don’t expose need to procure flexibility to grow will be able to actively manage ex- ourselves and customers to that risk.” over time with increased renewable ports from generation customers in Becoming a DSO means adopting generation, increasing numbers of order to provide them with cost-effec- new commercial practices and tech- EVs and changing consumer behav- tive connections to the distribution nologies. It requires investing in new iour. Last year it assessed the network network. skills, increased stakeholder engage- for areas where intervention may be It says it is planning to roll out fur- ment and greater scenario planning to required to manage peak congestion ther ANM zones, where there is high cope with uncertainty and opting for in the period to 2023. customer interest in connecting to the least regrets investments. In addition, This year, for the first time, it is network, limited capacity and high and maybe most importantly, it calls looking for customers to provide up reinforcement costs. for innovation. to 12.5 MW of flexible capacity for Another key area is smart meters, Northern Powergrid has several winter 2019-20 at nine locations on where Northern Powergrid is upgrad- notable programmes that are central its network. The hope is that it will be ing its systems and processes in line to its transformation, perhaps the more cost effective to pay them to with the national smart meter roll-out biggest being its work in smart grids. reduce demand at key times than to programme. A smarter network is an essential spend money on upgrading the net- “We are doing this for two reasons,” precursor to a smarter energy system work. Further, it believes that in the said Cardwell. “Firstly, we want to to fully realise the benefits of becom- future, customer flexibility could also deliver a better real-time response to ing a DSO. Northern Powergrid has provide emergency support during power cuts and keep the lights on therefore launched its £83 million power cuts. better. And secondly, we want to use ($109 million) Smart Grid Enablers Northern Powergrid will trial new the [smart meter] data to provide project. The company says it is the commercial offerings and contracts more efficient network planning; we Cardwell: The biggest challenge is accommodating the UK’s most comprehensive network and explore platforms on which flex- want to save money for customers by changing energy practices of our customers upgrade programme and will trans- ibility will be traded. Having set its using that intelligence we haven’t had form its ability to monitor, control DSOv1.0 immediate next steps and before so we only spend money and communicate with more than emerging thinking, the company says where we need to.” Northern Powergrid is a DNO that 860 substations. it will consult with stakeholders to The role of the future DSO is no looks after the electricity distribu- Cardwell commented: “Our Smart develop and refine processes. small task but Cardwell believes that tion network across the Northeast, Grid Enablers programme is the big- It then intends to update that detailed DNOs are best positioned to take it Yorkshire and Northern Lincolnshire gest change to our network since the plan twice a year. This work will also on. The task of making the transition in the UK. In its recent report, ‘DSO 1970s. It’s a massive piece of work directly inform its business plan, in- is therefore high on the agenda of v1.0 next steps and emerging think- that’s about ensuring we’re ready for, cluding the business plan that it will most network operators. He summed ing’, published just before Christ- potentially, high levels of electrifica- publish in 2021, which the energy up: “The transition is going well. It is mas, the company outlined its prog- tion of heat and transport beginning in regulator will use in determining a massive task in our organisation; ress in what it calls “a customer-led the 2020s.” Northern Powergrid’s regulatory set- it’s one of the top five things we are transition” to a DSO. Under the programme, Northern tlement for the period running from doing. We have a lot of initiatives Essentially, Northern Powergrid Powergrid is upgrading the control 2023-28. going on at the moment but this is has been laying the foundations for units in the substations to make the A number of innovation projects are one of the biggies. It can have a its transition through an ongoing network compatible with modern also ongoing – solutions that work for transformational effect for our cus- roll-out of smart grid technology digital communications, along with customers, regional and national net- tomers and impact a lot of what we and by enhancing data systems to establishing the communication net- works and take into account heat and do, so it’s getting major organisa- build a future-proof local network work from its control centres to those transport. These projects for example, tional focus.” THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Technology 15

Audi has been using climate-neutral ‘e-gas’ from a methanation reactor developed by MAN Energy Solutions at its plant in Werlte, Germany

Ramping up power-to-X

he falling price of electricity allows unlimited storage both in The CO2 for the methanation is noting that its reactors can be used MAN Energy from wind and solar is pre- terms of amounts and time.” captured by amine gas treating from for more than 80 different chemical Solutions is Tsenting all manner of possibil- According to Grünewald, such a a nearby biogas plant. Per MWh in- and petrochemical processes. These ities for decarbonising the global technology can make sense in the put into the electrolyser, about 35 kg processes can be tested in the economy. In addition to directly right setting. Germany has been a of synthetic natural gas (SNG) can Deggendorf laboratory on a small developing a 50 MW eliminating carbon dioxide emis- leader in the deployment of P2X fa- be produced. scale and improved before running sions by avoiding the burning of fos- cilities. Of the more than 30 instal- The Audi e-gas plant produces on a larger scale. system that will allow sil fuels, wind and solar can also be lations in Europe, approximately 20 around 1000 tons of SNG per year, For power-to-X specifically, in the electricity from wind used in ‘power-to-X’ (P2X) systems. are in Germany, says Grünewald. enabling 1500 natural gas-powered laboratory it has built a small-scale This is the possibility of converting “The biggest of these is the one we cars to drive 15 000 km on CO2-neu- methanation reactor where research- and solar to be used renewable energy, for example, into built with Audi in 2012/2013,” he tral gas each year. In addition, the ers are continuously improving the methane gas (power-to-gas) or liquid noted. plant absorbs around 2800 tons of methanation process, i.e. improving to produce synthetic methanol (power-to-liquid). The re- Since the summer of 2013, the CO2 in the methanation process. This the efficiency of the catalysation of sulting carbon-neutral synthetic gas German car manufacturer has been corresponds approximately to the the two raw materials, hydrogen and gas that could not can easily be transported through ex- using climate-neutral ‘e-gas’ from a amount that a forest absorbs with carbon dioxide, into methane. Test- isting gas pipelines and used in gas- methanation reactor developed by over 220 000 beech trees per year. ing includes different reactor temper- only serve as a form powered engines. MAN Energy Solutions at its plant Having successfully installed the atures and pressures, as well as per- It is a technology that MAN Ener- in Werlte. According to MAN Ener- 6.2 MW plant for Audi, MAN Ener- formance tests with different of energy storage but gy Solutions believes has great po- gy Solutions, the prototype plant is gy Solutions is now looking to catalysts. tential, and one that complements the first installation on an industrial build units of up to 50 MW (elec- Grünewald commented: “At our could also be used its traditional engine manufacturing scale to convert excess electricity trolyser input) for other industrial site in Deggendorf, MAN Energy business. Over the last several generated from wind into e-gas and clients and applications. With the e- Solutions is heavily involved in the to decarbonise the years, the company has been devel- is currently the largest of its kind gas from a plant of this size, 19 800 development and research of syn- oping the technology to the point worldwide. natural gas-powered cars could each thetic fuels – a future market with industry and transport where it says it is now ready to of- Power-to-gas basically uses re- drive 15 000 km annually. great growth opportunities. There we sectors. fer a 50 MW plant solution. newable energy that cannot be fed Carbon-neutral synthetic gas is have our own research. In pilot reac- Junior Isles Commenting on the drivers behind into the grid to produce hydrogen seen as a very important future en- tors, chemical syntheses are tested a technology that has been slowly and oxygen via electrolysis. At the ergy carrier, which is not only per- on a small scale (gram to kilogram gaining traction globally, Marc Audi Werlte plant, CO2 is added to fectly suited for cars and trucks, but volume) in order to produce the de- Grünewald, Head of Business De- the hydrogen in a methanation reac- also for public transport and even sired product quantity with the low- velopment and new energies at the tor supplied by MAN Energy Solu- ships. And this is where the real fu- est amount of raw materials used.” Power Unit of MAN Energy Solu- tions. The methanation reactor is a ture of power-to-x probably truly He added: “The new methanation tions, said: “The challenge for the fixed-bed type and uses a catalyst to lies – in the decarbonisation of in- reactor is now two thirds smaller and future is producing energy while re- turn hydrogen (2H2) and carbon di- dustry and transport. 30 per cent cheaper (in terms of in- ducing your CO2 footprint. Tradi- oxide (CO2) into methane (CH4). “More than 50 per cent of the ships vestment costs) than its predecessor tionally, the approach has been to As part of the Volkswagen Group, around the world have engines from in Werlte and all this with improved improve the efficiency of fossil fu- Audi was among the first of the car MAN,” noted Grünewald. “If you gas quality.” Power-to-gas uses renewable elled plants. But today, you can pro- companies in Germany to look at look at these large vessels, you can- Notably, the reactor in Werlte energy to produce hydrogen duce electricity from wind and solar ‘green’ gas-powered vehicles. Volk- not go with batteries because they measures 8 m long x 4 m wide x and oxygen via electrolysis. at below €6 ¢/kWh and lower. Re- swagen has around 17 models within are too heavy. And you cannot go 15.5 m high. Today, that same reac- CO2 is added to the hydrogen newable generation and electricity its group – including Seat and Skoda with hydrogen because it requires tor would have dimensions of 6 m x in a methanation reactor demand do not always match, which – that run on gas. too much space to store it. Power-to- 4 m x 7.5 m. Meanwhile, the pro- that uses a catalyst to turn is why storage solutions are essen- “Audi had these gas powered cars X allows us to green-up the fuel and cess design of methanation 2.0 en- hydrogen (2H2) and carbon tial. Batteries are ideal as short term already and was looking to make the enable the maritime industry to meet ables product gas compositions of dioxide (CO2) into methane storage, but storing the energy as a fuel green for its customers,” said its CO2 goals by 2050.” more than 95 per cent methane con- (CH4) liquid or gas through power-to-X Grünewald. With regards to the 50 MW size, he tent (up from 92-95 per cent). This said: “There are huge markets for makes it suitable to feed into natural power-to-x and if we do not start de- gas grids, which, says the company, livering this solution to decarbonise means all relevant applications can industry, we will not achieve CO2 re- be addressed that run on natural gas duction targets. We are pretty open today. to delivering whatever our customers “Longer residence times within are looking for but you need to have the reactor can improve this num- some kind of standardisation. So we ber, but with the [higher] cost of said we want to deliver in the range larger reactors or lower output of 2 MW to 50 MW. If we do not rates,” said Grünewald. “Higher gas start now, we are losing years.” purities can be achieved with gas Over the last six years, MAN Ener- treatment measures downstream the gy Solutions has been working on methanation itself.” improving the methanation process, MAN Energy Solutions says it moving towards what it calls will continue developing the power- ‘methanation 2.0’. The aim is to in- to-X technology with the knowl- crease efficiency, improve operation- edge that there are not many other al flexibility, reduce costs and foot- real options for decarbonising in- print, etc. dustry and transport, and says it is The company has a research site ready for the market. in Deggendorf where it is develop- Grünewald concluded: “There is ing and manufacturing reactor sys- huge interest and we already have a tems for the chemical and petro- couple of leads – my hope is that chemical industry, refineries and we will sell the first one this year. research projects in physics. MAN The concept for the 50 MW P2X Energy Solutions says it has already complete solution is ready to offer delivered more than 750 reactor and we could start a project for a systems to customers worldwide, customer tomorrow.”

THE ENERGY INDUSTRY TIMES - FEBRUARY 2019 Final Word 16 No will for UK nuclear hey say, where there’s a will the site. This is significantly lower than as dead. Hitachi has plenty on its plate likely be the direction of travel for the there’s a way. Not in the case the £92.50/MWh that EDF managed in terms of strengthening its balance government. He said that a White Tof Wylfa. Like Moorside, the to secure for its Hinkley Point C plant. sheet, and rhetoric from the UK gov- Paper to be issued this summer will planned UK nuclear project has lost In a statement, Hitachi said: “De- ernment strongly indicates it is highly build on the ‘Cost of energy’ report its way; once again demonstrating the spite the best efforts of everyone in- unlikely to shift position on Wylfa. produced by economist Professor changing dynamic of the global en- volved, the parties have not been able The acquisition of ABB for $6.4 Dieter Helm for the government in ergy landscape. to reach an agreement. As a result, billion in December has no doubt put 2017, and his own November 2018 Junior Isles In January, Japanese company Hi- Hitachi has decided to suspend the a strain on Hitachi’s balance sheet and speech “After the Trilemma”. tachi halted plans for its £20 billion project at this time from the viewpoint the company will now have to write- Clark said that developing technol- ($26.4 billion) project on Anglesey of its economic rationality as a private off ¥300 billion ($2.8 billion) for ac- ogy and changing economics meant island, Wales. It also said it was enterprise.” tivities related to Wylfa. The company power could be produced from a abandoning its other planned UK Toshiaki Higashihara, Hitachi’s has now cut its net income forecast for wider range of sources than ever and nuclear plant, at Oldbury-on-Severn Chief Executive, said: “A freeze the year to March 2019 from ¥530 that rather than stick to an approach in Gloucestershire. means we will not put in any addi- billion to ¥230 billion, reflecting the that was put together a decade ago, the As with Toshiba’s Moorside and tional investment.” He added that the scale of the loss. government’s policy should allow other large nuclear projects, the cost company would only renew its in- Commenting on the Wylfa news “taxpayers and consumers to take of building the 2.9 GW Wylfa project volvement if the project was kept off Rebecca Long-Bailey MP, the shadow advantage” of developments. has proven too high for the private Hitachi’s balance sheet, required only business secretary, said suspension of It will be interesting to see what the sector to take on without sufficient a limited capital investment from the Moorside and Wylfa left a “6.3 GW White Paper proposes and whether the government support. The UK govern- company and offered the prospect of hole of low carbon energy – 13 per government decides to forego any ment was only prepared to offer a strike an adequate profit. cent of the UK’s electricity”. But does significant support for big nuclear price of about £75/MWh with a price Although Higashihara says the it really? projects going forward. Neither below £60/MWh for later reactors on project is frozen, in reality it is as good If it wants to continue its pursuit of Clark’s speech nor Helm’s report large scale nuclear, the UK could, picked winners. Helm’s review es- theoretically, turn to China or even sentially said consumers were paying Russian companies, which are keen to too much for energy and that the best provide financing for their projects. way to achieve carbon targets is to set Alternatively it could decide to build a carbon price with all technologies more gas fired plant or accelerate its ultimately competing on a level play- expansion of renewables. Despite ing field in terms of government sup- constant reassurances – throughout port, with feed-in-tariffs and other and after the protracted negotiations low-carbon Contracts for Differences with EDF over Hinkley – that it is being gradually phased out. committed to nuclear, it seems the Helm’s report did note, however, that latter is becoming the government’s in the case of nuclear, the nature of the preferred option. costs, the time horizons, and the soci- In a letter published in the Financial etal decisions about risk and waste Times, Greg Clark, Secretary of State, “make these investments always a Department for Business, Energy and matter for the state”. Industrial Strategy said the global It says: “Unless there is a market energy market is changing fast and that belief that fossil fuel prices will rise cleaner sources of power, such as very sharply, and the markets are offshore wind, have fallen in cost to prepared to offer long-term contracts the point they will soon need no to match such projections, nuclear will public subsidy. not be developed by the competitive “In this context, Britain’s electricity markets. The government therefore requirement for the 2030s is not a needs to decide whether and how to problem of shortages but the much proceed”. better challenge of abundance. In fact, If the government does decide that the last contract for difference auction large nuclear projects are essential in in the UK procured 3 GW of offshore the energy mix, it will have to find a wind – equal to the capacity of a nu- solution that does not burden taxpay- clear power station – for only £57.50 ers. The Department for Business, per megawatt hour,” he wrote. Energy and Industrial Strategy has Still perhaps paying lip service to already said it is reviewing alternative the government’s commitment to funding models for future nuclear nuclear, or at least attempting to keep projects and will update on these find- the door open to nuclear developers, ings in summer 2019. he said the UK remained “committed Clark confirmed that the government to nuclear power” as part of a diverse is now considering funding nuclear energy mix. Further, he noted that power stations using what is called “Hinkley Point C is proceeding apace regulatory asset base (RAB), and and other projects, including Sizewell would issue a report before the sum- C and Bradwell, are progressing mer. Essentially, the RAB model through the regulatory process”. He mitigates the construction risks by also stated that small modular reac- enabling investors to receive returns tors can have a role to play. before projects have been completed. Notably, however, he stated that In a research note, Wood Macken- “none of these can be at any price”. zie’s Europe Power and Renewable This, he wrote, has led to the decision team stated: “While the government to “set limits on consumers’ and tax- may still consider alternative funding payers’ exposure to the costs of Wylfa, models and new modular reactor and the work being done to reduce technologies as means of delivering financing and construction costs for nuclear power, it would appear in- new nuclear”. creasingly prudent to evaluate wind, The UK government has long been solar and decarbonised thermal warned that the cost of its programme sources, particularly gas, as the main- for 16 GW of new nuclear capacity stays of future power generation.” makes little economic sense, but is With the UK’s nuclear programme only now heeding the warnings – un- hanging by a thread, the rest of the fortunately at great cost to the private world will be watching closely to see developers that have already made how this saga plays out. Finland’s substantial investment in time and Hanhikivi 1, although delayed due to money into the projects. regulatory approval issues shows In fairness, few could have pre- there are ways of financing big nucle- dicted the rate at which the price of ar projects (but does little to guarantee electricity from wind and solar would they are built to time and budget). And fall. Reducing costs and the emerging there is always Chinese money wait- ability of developers to pitch new ing in the wings. projects as purely merchant proposi- The government may have no will tions presents a strong case for a re- for Wylfa but still has to address the balancing of long term UK energy real question of whether it wants, or policy. needs, to be in the business of ensuring Clark indicated that this would the future of large scale nuclear at all. Cartoon: jemsoar.com