THE ENERGY INDUSTRY February 2017 • Volume 9 • No 12 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES

Special Project Managing solar risks Final Word Supplement As governments reduce feed-in tariffs, Uruguay enhances its wind developers will need to look at ways to Trump should sit in the chair power credentials. reduce risk. of King Canute, says Junior Page 14 Isles. Page 16

News In Brief Quality issues cast cloud over Hinkley C Further Investigations by French nuclear regulator ASN could have a knock-on effect on the UK’s new Hinkley Point C nuclear plant. China Page 2

Trump sets out “America First” energy plan The USA’s new President has stopped short of decisive action on champions the Clean Power Plan, but hopes to expand production of domestic oil and gas. Page 4

China Five Year Plan climate change maintains clean energy focus President Xi placed a strong emphasis China’s latest Five Year Plan on climate change at Davos demonstrates its continued efforts to cut pollution by increasing its use of renewables while reducing its dependence on coal fired China is taking on the role of global leader on combatting climate change as the US alienates generation. itself from the international energy community. Junior Isles Page 5 With Donald Trump absent from the achievement… All signatories should from climate villain to a reluctant tive to economic activity) more than Auction green light will aid recent World Economic Forum in stick to it rather than walk away from leader in five short years over the first any other major economy. Notably it Energiewende Davos, Switzerland, China’s Presi- it, as this is a responsibility we must half of this decade, it’s reasonable to is already exceeding most of its low- The European Commission has dent Xi Jinping took the opportunity assume for future generations.” expect China to become a true leader carbon energy and decarbonisation ruled Germany’s plans to introduce to voice his country’s readiness to take Commenting on President Xi’s ad- by its end.” targets and has made its 2020 targets competitive auctions for the the global leadership role on climate dress just ahead of Trump’s inaugura- While China remains the world’s more ambitious. deployment of renewable energy change. tion, Li Shuo, Senior Global Policy largest emitter of carbon dioxide In early January the government an- meet European state aid guidelines. President Xi placed a strong empha- Advisor, Greenpeace East Asia said: (CO2) its growth in emissions has lev- nounced it would invest $361 billion . sis in his speech on climate change, “As Mr. Trump drops President elled off, and emissions dropped in in renewable power between now and Page 6 especially the need to stick with the Obama’s climate legacy, Mr. Xi might both 2015 and 2016. It plans to meet 2020. international Paris Agreement. well establish one of his own. 2017 its goal of peaking emissions by 2030 While China needs to invest in clean Viewpoint: Incentivising As the first ever President of China presents a real opportunity for China at the latest. China has a clear goal of energy to tackle severe air pollution at greater flexibility to attend Davos, President Xi said: to rise to the challenge of responsible reducing ‘emissions intensity’ (the home, it also sees decarbonisation as a “The Paris Agreement is a hard-won climate leadership. Having moved volume of emissions produced rela- Aggregators and integrated utilities Continued on Page 2 need to define their strategy to seize the business potential that demand side management offers as a flexibility solution. Page 12 Falling cost is spurring renewables deployment

Industry Perspective: Falling cost, driven by innovation in that it is here to stay. Speaking at the should come from renewables in 2050. a 200 MW concentrated solar power Redefining grid efficiency technology and policy, is spurring re- Abu Dhabi Sustainability Week According to its “Energy Strategy (CSP) Plant, the fourth phase of the Once treated as separate domains, newable energy deployment and (ADSW) in January, Fatih Birol, Ex- 2050” unveiled in January, the UAE’s MBR Solar Park. IT and OT are now intersecting to bringing a multitude of socio-econom- ecutive Director at the International energy mix by 2050 will comprise 44 The project supports the Dubai enable more efficient and reliable ic benefits, according to a new report Energy Agency said: “Renewables per cent renewables, 38 per cent gas, Clean Energy Strategy 2050, which utility operations. released by the International Renew- are getting cheaper. Last year, more 12 per cent clean fossil fuel genera- aims to diversify the energy mix so Page 13 able Energy Agency (IRENA). than 50 per cent of all new capacity tion and six per cent nuclear. clean energy will generate 7 per cent The publication titled ‘REthinking additions globally was renewables. In June last year Dubai announced of Dubai’s total power output by Technology: Redefining Energy 2017’ states that global invest- Renewable [energy] is not just a ro- plans to build the 1000 MW Moham- 2020, 25 per cent by 2030 and 75 per wave power ment in renewables has steadily mantic story, but a real business.” med bin Rashid (MBR) Solar Park by cent by 2050. The WaveBoost project is a grown for more than a decade, rising The IRENA report states that solar 2030. The project is set to be the Identifying the opportunity the re- three-year innovation programme from less than $50 billion in 2004 to a PV will grow the fastest in terms of world’s largest on a single plot on gion presents, at ADSW the “French targeting significant improvements record $305 billion in 2015. capacity and output. The Middle East completion and will set a record-low Efficiency – Clean Energy” regional in the reliability and performance of Launching the report Adnan Z. will be a hotspot for new renewable bid price for solar power generation Club for the Middle East was offi- wave energy converters. Amin, IRENA’s General Director, capacity, in particular solar. of US 2.99 cents/kWh. cially launched. According to Jean Page 15 said: “Renewables are gaining ground Last month, the United Arab Emir- Last month, the Dubai Electricity and Ballandras, National Coordinator for by nearly every measure… We are ates announced plans to invest Dir- Water Authority (DEWA) and Abu Renewable Energy, the club will offer seeing more and more countries hold hams600 billion ($163 billion) in Dhabi’s renewable energy company countries in the region a “one-stop auctions to deploy renewables, and as projects to generate almost half the Masdar said they were starting con- shop” when cooperating with France Advertise variable and distributed sources of re- country’s power needs from renew- struction of the 800 MW phase three of on renewable projects. [email protected] newables take-on a greater role, regu- able energy sources. the $13.6 billion project. The engineer- Several Middle Eastern countries – lators have implemented changes to Dr. Thani Ahmed Al Zeyoudi, Min- ing, procurement and construction including Kuwait and Qatar – are try- Subscribe enable grid integration at scale.” ister of Climate Change and Environ- (EPC) contract was announced at the ing to shift away from their economic [email protected] The International Energy Agency ment for the United Arab Emirates ADSW. and domestic energy reliance on oil, or call +44 208 523 2573 (IEA) also noted that renewable en- said that while coal would not disap- DEWA also issued a Request for Pro- after prices fell by over 50 per cent ergy continues its inexorable rise and pear, nearly half of the nation’s energy posal (RFP) to all qualified bidders for last year. 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 2017 2 Headline News

Continued from Page 1 big economic opportunity. Its pur- suit of clean energy development and deployment is therefore a cen- tral part of the country’s economic growth strategy. Quality issues cast According to the International Energy Agency, renewables will be the largest single source of power capacity growth in the next five years, growing 42 per cent by 2021. As the cost of renewable energy cloud over Hinkley C falls rapidly – now comparable to that of electricity from fossil fuels and sometimes cheaper – China has positioned itself to drive a huge Further Investigations by French nuclear regulator ASN into issues related to quality and documentation of nuclear reactor components made at a factory operated by Areva could have a knock-on effect on the UK’s new Hinkley Point C nuclear plant. Junior Isles

Fresh concerns have been raised over It followed an announcement in May project currently under construction David McIntyre of the US Nuclear the timeline of the UK’s planned Hin- that Areva had found evidence sug- is identical to that proposed for Hin- Regulatory Commission said it was kley Point C nuclear power plant fol- gesting employees had doctored qual- kley Point C. troubled by the revelations about the lowing news that the French nuclear ity assurance documents relating to The investigation could teherfore doctored documents at Le Creusot, regulator ASN plans to probe further many different nuclear reactor com- have a knock-on effect on Hinkley C, which has supplied some components into potentially faulty nuclear reactor ponents made at Le Creusot for up to since it will be the same technology, to US nuclear power plants. components manufactured at a fac- 40 years. and has led to further calls for a stop While noting that there was no indi- tory operated by Areva. The investigations led to the tempo- to a project that has already seen ex- cation that doctored documents had At the start of January, Julien Collet, rary closure of 18 reactors operated in tensive delays. led to any safety issues, he said: “Prop- Dr Geall: Chinese firms are deputy director of the ASN, said he France by EDF. Now ASN wants to The Stop Hinkley Campaign is call- er quality assurance and documenta- increasingly well positioned wanted to “go much further” with in- look more closely at the issue. ing on EDF Energy to stop all work tion are important to our confidence portion of this growth. vestigations into Areva’s components, Collet said: “We need to be assured on Hinkley C at least until the French in the safety of the components in Matching economies of scale with including one probe into the falsifica- that this problem of high carbon con- nuclear industry gets a clean bill of nuclear reactors.” early stage investment in R&D is tion of documents that certified the centration is settled for all types of health. n Jesse Norman (Parliamentary Un- now paying dividends. This com- quality of certain parts. equipment, not just the steam genera- It said in a statement: “Any signifi- der Secretary of State, Minister for bined with innovative finance The announcement is the latest de- tors. “There are other components that cant problems with the reactor vessel Energy and Industry) has asked the mechanisms has enabled China to velopment in investigations initiated could be concerned by the same prob- could be catastrophic for EDF, how- UK’s independent nuclear regulators, secure a considerable competitive by the ASN last year. lem… we want to go deeper.” ever, as re-doing this important piece the Office for Nuclear Regulation, and edge in clean energy. The country In June investigators said that some In addition, the results of an inves- of the plant would mean restarting the Environment Agency, to begin a is investing across emerging mar- steel components – notably parts used tigation by EDF at Flamanville will much of the construction work, which Generic Design Assessment of the kets that traditional western institu- in steam generators – made at Areva’s be delivered to the ASN in the coming is already billions of euros over bud- Chinese-designed UK HPR1000 re- tions consider too risky. Le Creusot factory had excessive car- weeks. The regulator will then analyse get and several years late.” actor. The reactor designed by China For example, Chinese companies bon levels, which could make them the findings and issue a report in the The ongoing situation is causing General Nuclear is being proposed for were behind overseas merger and vulnerable to cracking. first half of this year. The Flamanville widespread international concern. a new nuclear plant at Bradwell. acquisition activity in clean energy and related infrastructure to the tune of well over $32 billion in 2016 alone. With this comes strategic influence over the default energy sources of the future. Toshiba woes threaten UK Dr Sam Geall, Research Fellow at the Science Policy Research Unit (SPRU) at University of Sussex, United Kingdom and Executive nuclear plans director of chinadialogue.net, said: “China’s ambitious policies on de- The threat of huge losses at Japanese Toshiba said it is considering raising Gen said it was in talks with potential was about to begin a major programme carbonisation have underpinned electronics and nuclear giant Toshiba capital and will seek financial support investors for the Cumbria site, with a to develop and commercialise its huge cost reductions in renewable has thrown Britain’s nuclear power from its main banks. final investment decision due in 2018. SMR technology, after Sheffield- energy, transforming the landscape plans into doubt. Toshiba owns a 60 per cent stake in It is potentially a blow to the govern- based Nuclear AMRC confirmed that of technology and innovation. Giv- At the end of December Toshiba said the planned £10 billion NuGen nucle- ment after ministers had described it is to join with Rolls-Royce, AMEC en policy uncertainty in the United its US nuclear subsidiary, Westing- ar power project in Moorside, Cum- 2016 as a “year for the industry to look Foster Wheeler, Nuvia and Arup to States, Chinese firms are increas- house Electric, might have to write off bria, which aims to supply power for back on” following backing for Hin- bring a design proposed by Rolls- ingly well positioned to benefit “several billion US dollars” in con- about 6 million homes from 2025. kley Point C. Royce to the UK market. from the commercial opportunities nection with the acquisition of CB&I Justin Bowden, the GMB union’s The development came shortly after Last year, Rolls-Royce announced in store as the world shifts away Stone & Webster, a US nuclear pow- national secretary for energy, com- the UK and Japanese governments that it is proposing to develop a modu- from fossil fuels.” er plant builder, that it bought from mented: “It needs to be established as signed a Memorandum of Coopera- lar reactor capable of producing 220- While China takes advantage of Chicago Bridge & Iron (CB&I) in soon as possible whether or not the tion strengthening cooperation across 440 MWe depending on its configura- the global clean energy transition, 2015. collapsing Toshiba share price, in par- civil nuclear activities. tion. The SMR will be designed the US looks set to lose out under The company’s announcement that ticular in relation to its Westinghouse With large nuclear plants typically specifically to be built and commis- the current Trump administration. it was facing a loss of Yen500 billion operation, has any implications, and dogged by delays and cost overruns, sioned in factories, with a reactor mod- Between 2012 and 2015, China has ($4.3 billion dollars immediately if so what these are for the extremely the UK is also looking at the potential ule some 16 m high and 4 m in diam- added 1.8 million jobs in renew- wiped 40 per cent off the value of its important Westinghouse project.” of small modular reactors (SMRs). eter – small enough to be transported ables, compared with 157 000 in shares before partially recovering. Toshiba’s problems come after Nu- In late January Rolls-Royce said it on a truck, train or barge. the US. The International Renewable En- ergy Agency (IRENA), of which both the US and China are members, Storage seen as “game changer” as utilities look has shown that with a global dou- bling of renewable energy by 2030, US GDP would increase by up to for greater grid flexibility 1.8 per cent (some $301 billion based on 2013 data) and employ- New ways of storing electricity will be puts pressure on grids. network operators. AutoGrid Europe said that flexibility ment in renewable energy would a “game changer” as the amount of Leonie Greene, STA Head of Exter- Experts point out, however, that management is increasingly becom- increase to between 1.1 million and variable renewable generation grows, nal Affairs at the Solar Trade Asso- storage is only part of the solution. ing a key focus for electric utilities, 1.4 million over business as usual. driving the development of more flex- ciation (STA) based in the UK re- Energy Internet software company with the main driver being the growth n In January the US State Depart- ible grids. cently noted that solar power “has AutoGrid recently stated: “… despite of renewables. ment made $500 million grant pay- In its latest edition of the ‘REthink- turned the grid on its head”. the fact that energy storage costs con- “The increasing penetration of re- ment to support the United Nations ing Energy’ report the International She said: “It provides unique op- tinue to fall, we still need to dramati- newable generation – large scale wind climate fund. The US has now con- Renewable Energy Agency (IRENA) portunities for energy consumers of cally improve energy storage project and other distributed energy sources tributed $1 billion to the Green Cli- estimates that battery storage for elec- all types to take control of their bills economics through intelligent soft- like rooftop solar and distributed stor- mate Fund dedicated to advancing tricity could increase from less than and produce their own energy, sitting ware if we hope to truly accelerate age such as electric vehicles – is caus- low-emission, climate-resilient de- the current 1 GW to 250 GW by at the heart of a smart, flexible energy energy storage adoption.” ing some interesting challenges as velopment, with the goal of keeping 2030. system.” The company recently launched its utilities look at how to survive in this the global temperature increase be- IRENA points out that the growth in Responding to the UK regulator Of- AutoGrid 3.0 flexibility management non-centralised distributed energy low 2°Celsius. Pledging to provide variable renewable energy genera- gem’s call for evidence on ‘A Smart, solution for demand response (DR) world.” $3 billion to the Fund, the US is left tion, especially solar, will be the main Flexible Energy System’ the STA said management, distributed energy re- AutoGrid estimates that within ten with $2 billion owing to the Fund. driver. Both Europe and the US have cheaper, cleaner energy is possible, if source (DER) management and vir- years the total addressable market for Future payments may be cancelled seen a growing need for storage as the government removes barriers to stor- tual power plants (VPPs). flexibility management software will under President Trump. growing deployment of renewables age and places stronger incentives on Abhishek Bahl, General Manager, be more than $21 billion. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 3

REPUBLIC OF TURKEY MINISTRY OF ENERGY AND NATURAL RESOURCES

The Energy Industry Times is the only publication that covers global news related to the power and energy THE ENERGY INDUSTRY sector in a newspaper style and format whose uniqueness is recognised by our readers. www.teitimes.com TIMES As a paid subsciber you will gain full access to our online news desk. You will also no longer have to wait for the printed edi- tion; receive it by PDF “hot off the press” or download it online. To subscribe, email [email protected] or visit subscribe today www.teitimes.com To guarantee receiving your monthly copy of the award winning newspaper, you need to subscribe today THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 4 Americas News Dong, Eversource deal shows growing Trump sets out confidence in US “America First” offshore wind n US utility buys stake in 1 GW proposals n Deal backs Massachusetts wind plans

Dong Energy has brought New Eng- “New England is setting the pace for energy plan land utility Eversource on board to a national clean energy future with its help it develop its proposed Bay State proven track record in energy effi- offshore wind farm in a move that ciency and bold clean energy goals,” The USA’s new President has stopped short of decisive action on demonstrates growing confidence in said Jim Judge, President and CEO of the USA’s offshore wind industry. Eversource Energy. “Our partnership the Clean Power Plan but hopes to expand production of domestic Eversource acquired a 50 per cent with Dong Energy on Bay State Wind oil and gas. ownership interest in the Bay State represents a significant opportunity to wind farm to be built approximately help make those goals a reality and 25 km off the coast of Martha’s Vine- we look forward to delivering this Siân Crampsie on the production of American energy, of the key crises facing our planet”. yard, and which could have a capacity renewable and reliable source of including shale energy and clean coal, Just days into his presidency, Trump of up to 1000 MW. power to customers.” US President Donald Trump says that creating many millions of high-pay- signed executive orders expediting the It is the latest of several recent A partnership with Eversource gives increasing domestic energy produc- ing jobs. That’s what we want, that’s permit process for two controversial positive developments in the US’ off- Dong a strong local partner in the tion will boost the US economy and what we’ve been waiting for,” said pipelines: the Dakota Access pipeline, shore wind sector. project, the company’s first offshore free the country from dependence on Trump. which would carry oil from North Da- Last year the states of New York and wind farm outside European waters. foreign oil. In the run-up to his inauguration, 24 kota, through South Dakota and Iowa Massachusetts announced plans to It was awarded the site area by the US The newly inaugurated President has state attorneys-general, together with to be shipped out of Illinois, and the support offshore wind industry devel- Department of Interior in 2015. outlined an energy plan that aims to Vice President Mike Pence and con- Keystone XL pipeline, which would opments, and the offshore wind sector “Offshore wind is a reliable home- reduce the cost of energy and maximise gressional leaders asked Trump to kill bring oil from Canada to Nebraska. in the country celebrated in December grown energy source that can be deliv- the use of domestic resources. He has the Clean Power Plan by issuing an He has also been criticised for his 2016 with the opening of Block Is- ered at scale to Massachusetts residents pledged to revive the USA’s coal in- immediate executive order declaring appointment of former Texas gover- land, the country’s first offshore wind and businesses,” said Thomas Bro- dustry, which, he says, “has been hurt- it to be unlawful and prohibiting the nor Rick Perry to lead the Department farm. strom, General Manager for Dong ing for too long”, but says he is aware US Environmental Protection Agency of Energy, and of Oklahoma Attorney New York has developed an offshore Energy Wind Power US Inc. “New of the need for “responsible steward- (EPA) from enforcing it. General Scott Pruitt to head the wind master plan that includes direc- England’s water depths and wind ship of the environment”. Although Trump has stopped short EPA. tives from state governor Cuomo to speeds are similar to those in Europe Trump’s “America First” energy of this action, his new energy plan and Pruitt is widely seen as a climate make leasing areas available and to and provide attractive conditions.” plan includes a commitment to elimi- his stance on energy and the environ- skeptic and has sued the EPA 14 times carry out studies into rapid and cost- Dong and Eversource said in a state- nating “harmful and unnecessary” ment during the presidential campaign in order to attempt to block federal air effective ways of boosting renewable ment that they “are committed to play- policies such as the Climate Action have alarmed environmentalists. Si- and water pollution regulations. energy capacity. ing a central role in bringing their Plan, as well as other “burdensome” erra Club executive director Michael In his energy plan statement, Trump Massachusetts last year passed an companies’ respective expertise and regulations that have stifled domestic Brune called the energy plan “a shame- says that “protecting clean air and wa- energy bill requiring utilities to enter successes to bear” to help Massachu- energy production. ful and dark start to Trump’s Presi- ter … will remain a high priority” and into long-term contracts for 1600 MW setts meet its renewable energy “I will cancel job-killing restrictions dency” and “an historic mistake on one says he will “refocus” the EPA’s role. of offshore wind from 2027. goals. Chile’s renewables Generating sector investment in Brazil expands gains momentum n 7 GW of new capacity forecast in 2017 Investment in Chile’s renewable ener- via an 18.6 km, 220 kV transmission gy sector is growing as the country line. n Duke completes Brazil sale looks to expand its installed solar gen- Other recently-approved projects erating capacity. include eight power plants with a com- Generating capacity in Brazil is con- to 2014. ternational business in Brazil to China Environmental authorities in the bined installed capacity of 462 MW, tinuing to grow in spite of fears of a Aneel expects 4 GW of hydropower Three Gorges Corp (CTG) for ap- country have approved the $535 mil- and four transmission projects. supply glut amid a prolonged eco- capacity and 2.4 GW of wind energy proximately $1.2 billion. lion, 446 MW Elena solar project They form a key part of plans by nomic recession. to be added to the grid in 2017. The sale includes ten hydropower planned by Spain’s Ibereólica. The ap- Chile’s government to boost generat- Regulator Aneel says that the coun- It said that 2016 was a record year plants with a combined generating proval comes just weeks after approv- ing capacity to meet rapidly rising try will add around 7 GW of capacity for capacity additions, with 5 GW of capacity of 2090 MW. als were issued for a further 13 energy demand, as well as improve energy to its grid in 2017, on top of the 9.5 new hydropower, 2.5 GW of wind The firm has also reached an agree- projects that will require investments security. GW commissioned in 2016. Installed energy and 1.7 GW of thermal capac- ment with I Squared Capital, a global of $1.37 billion. Approved generation projects in- capacity in Brazil now stands at over ity added. infrastructure investment manager, Several more projects, worth a com- clude WPD’s 270 MW Malleco wind 149 GW, according to the Brazilian The rapid growth in Brazil’s elec- over the sale of Duke’s remaining bined $474 million, are awaiting ap- farm and the 95 MW Santa Marta de mining and energy ministry. tricity sector has attracted new en- Latin American business, which in- proval, according to CNE, the na- Marchigüe solar photovoltaic farm Data from energy planning agency trants to the market. Chinese firms in cludes power generation and trans- tional energy commission. planned by Andes Mainstream. EPE shows that electricity use year- particular have put aside concerns mission assets in Peru, Chile, Ecua- Ibereólica’s Elena solar project Projects recently submitted for ap- on-year dipped 1.2 per cent in Nov- over the country’s economic reces- dor, Argentina and Central America. comprises two solar farms, each with proval include Andes Mainstream’s ember 2016, with demand from the sion to gain a foothold in what they That portfolio includes over 2300 a capacity of 223 MW in Chile’s 220 MW Santa Ana wind farm, and the commercial sector eroded by poor see as a key target market. MW of hydro and thermal generation, Antofagasta region. They will con- Llanos de Potroso and Los Libertado- economic growth. Electricity demand At the end of December 2016, Duke 730 km of 220 kV transmission lines nect to the northern SING power grid res solar PV parks. in 2015 fell by 2.1 per cent compared Energy completed the sale of its in- and natural gas processing facilities. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Asia News 5 China Five Year Plan maintains clean energy focus n Government to invest $360 billion in renewables n 104 planned coal plants suspended Syed Ali generation by 2020. Following the adding that the cuts will help save taking dramatic steps to comply with Notably, at the end of December publication of the Plan, the State Oce- Yuan6 billion ($860 million) annually. the coal capacity target laid out in the companies running 605 Chinese coal China’s latest Five Year Plan demon- anic Administration of China, the China also revised its solar target for latest Five Year Plan. fired power plants were fined a total strates its continued efforts to cut pol- country’s maritime authority, also 2020, lowering its ambitions from The NEA recently announced that of Yuan328 million ($47 million) by lution by increasing its use of renew- proposed measures to increase the ap- 150 GW to a minimum of 105 GW. 104 planned and under construction the country’s economic planning ables while reducing its dependence on plication of tidal, wave, ocean thermal China has set itself a goal of 15 per coal power projects – with a total ca- agency for breaching environmental coal fired generation. energy conversion (OTEC). cent renewable energy generation by pacity of 120 GW – have been sus- rules and falsifying data to claim green Under the plan, Yuan2.5 trillion As China continues to deploy wind 2020 and to reduce carbon dioxide pended. Around 54 GW of suspended subsidies. ($363 billion) will be invested in re- and solar, costs have come down lead- emissions by 1.4 billion tons. This will capacity comes from projects already n General Electric Co (GE) recently newable energy by 2020 – an invest- ing the National Development and help it meet its climate change com- under construction in 13 provinces. announced that it is targeting a larger ment that will create more than 13 Reform Commission (NDRC) to an- mitments and, more immediately, help Under the Plan, the government com- market share in China’s offshore wind- million jobs in the sector, the National nounce that solar power tariffs could it tackle high pollution in many of its mitted to a coal capacity cap of 1100 power industry. Jerome Pecresse, Energy Administration (NEA) said. go down by as much as 19 per cent in major cities and provinces. GW, which is still a significant increase President and CEO of GE’s renewable The NEA said installed renewable 2017 while wind tariffs will see a 15 With more than half of the nation’s on the 920 GW capacity the country power division said China’s new in- power capacity including wind, hydro, per cent cut from 2018 on. installed power capacity still being currently has. The number of coal stalled capacity of renewable power solar and nuclear power would con- The reduced tariffs will better reflect coal fired generation over the same power projects in the pipeline would has each year represented 40-50 per tribute to about half of new electricity lower production costs NDRC said, period, the Chinese government is have taken that figure to 1250 GW. cent of the total volume worldwide. Australia urged to India may fall back “next generation” coal plants Australia should turn to the next gen- global warming. eration of coal fired power stations to ACF’s economist Matthew Rose generate more domestic electricity, ac- said: “It is hard to imagine a company short of solar cording to a key federal minister. that would be prepared to build these Hitting back against environmental huge white elephants, just waiting to groups that oppose the use of coal, become stranded assets… In contrast, Resources, Minister Matt Canavan investments in new renewable energy, said ultra-supercritical coal fired pow- which has zero fuel cost, will still be er stations could fill a gap in local en- useful and productive in decades to ergy supplies, arguing that Australia come.” target could embrace a technology used in It is a view that appears to be increas- Japan and China. ingly being adopted by power plant India is looking increasingly unlikely steps countries will take to limit global main obstacles to achieving the tar- Senator Canavan said it was “well owners. In January EnergyAustralia, to reach its target of 100 GW of solar warming – India has committed to gets. The country needs $100 billion within the bounds of reason” to look which owns two of the largest coal- capacity by 2022. As of December, the source 40 per cent of its electricity from in asset financing for renewable en- at new technology that could use coal fired power stations in the country, country’s total solar capacity amount- non-fossil fuel sources by 2030. ergy over the next six years, according to generate electricity with a 40 per announced it would sign agreements ed to 9 GW and according to clean tech However, observers have accused the to report by Bloomberg New Energy cent cut in greenhouse gas emissions. to buy around 500 MW of power from consultancy Mercom Capital, it will government of being too ambitious in Finance (BNEF). “I think that’s something we’ve got new wind and solar energy projects add another 9 GW in 2017. its renewables targets. Vibhuti Garg, a Abhishek Jain, senior programme to look at. People expect us to provide across eastern Australia. With six years left for India to power sector expert at the Internation- lead at Council on Energy, Environ- reliable power and any government EnergyAustralia Managing Director achieve its goal, the government re- al Institute for Sustainable Develop- ment and Water (CEEW), a New worth their salt would be doing that,” Catherine Tanna said the foundation cently said that 25 states together fell ment, a Canada-based environmental Delhi-based research organisation he told The Australian. “We cannot contracts, worth an aggregate $1.5 bil- short of meeting new capacity targets non-profit organisation, said India’s commented: “If financing is achieved, power our economy through 100 per lion, would underpin significant in- by some 2000 MW. renewable energy targets are “highly the targets are achievable.” cent renewables – we will not have jobs vestment in new renewable energy “Considering the actual renewable optimistic and not realistic”. India plans to install 160 GW of so- in aluminium and other manufactur- developments. purchase obligation level specified by In October 2016, renewable energy lar and wind generation over the next ing industries if that happens.” EnergyAustralia’s programme will the state electricity regulatory com- made up 15 per cent of India’s in- five years and the additional transmis- With the Hazelwood station in Vic- contribute toward the Australian Gov- missions for the year 2016-17, it is stalled electricity production capaci- sion capacity needed to accommodate toria’s Latrobe Valley about to close, ernments Renewable Energy Target to estimated that 25 states/UTs [Union ty, up from 13.1 per cent in August the growth in intermittent renewable Senator Canavan said Australia had have 23 per cent of total energy in the Territories] require over 2030 MW 2015, according to government data. energy is a stumbling block. to consider how to replace its old coal- national electricity market provided solar power capacity to fulfil the solar To achieve its targets, India must add Last month the Indian Union Min- fired power stations and should put by renewable sources by 2020. purchase obligation,” the Ministry of 130.76 GW of renewable energy over istry of New and Renewable Energy the technology on the agenda. n Fotowatio Renewable Ventures New & Renewable Energy said in a the next six years, an average of 21.7 dropped plans to construct what Ultra-supercritical coal fired power (FRV), a leading global developer of recent document. GW per year or, three times the capac- would have been the world’s largest plants operate at higher temperatures large-scale solar power plants and part As part of its Intended Nationally De- ity it added in 2016. solar power project in Leh of Jammu and pressures to increase efficiency by of Abdul Latif Jameel Energy, has se- termined Contributions (INDC) – doc- Financing and an inadequate elec- and Kashmir state because of high around 15 per cent compared with con- cured a pioneering funding agreement uments submitted to the UN that detail tricity infrastructure are seen as the transmission costs. ventional sub-critical coal plants but for a new solar energy farm in Queens- environmentalists reject the “clean land, Australia. The $200 million coal” claims. agreement for the Clare Solar Farm The Australian Conservation Foun- makes the project the first utility-scale South Korea moves to curb pollutants dation (ACF) said “low emission” facility in Australia to secure financing coal fired technology is an “unrealis- without an additional government South Korea says it will shut down 10 establish the low-carbon and environ- from 174 000 tons last year to 48 000 tic fantasy” that would cost billions grant, highlighting the competitive- aging coal fired power plants by 2025 ment-friendly electricity source.” tons in 2030, added the ministry. and set back genuine efforts to tackle ness of solar energy in the country. as part of its efforts to cut greenhouse The government will spend some The announcement came shortly gas emissions and curb fine dust. The Won203.2 billion ($130 million) after the government lifted all the news marks a distinct shift towards shutting the old plants and says it will regulations that had prevented the less polluting generating sources. also replace environmental facilities start of work on its largest wind pow- Making the announcement, the Min- at 43 other coal plants in the initiative, er plant complex. It is expected that istry of Trade, Industry and Energy at a cost of Won11.6 trillion ($9.67 the 99.2 MW project in the Saeman- said: “It marks the first time that coal billion) by 2030. geum region will now break ground power plants in South Korea will be The move will help reduce the this April and be completed in June shut down. It represents a resolve to amount of pollutants from coal plants next year. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 6 Europe News Greece progresses on Auction green electricity restructuring Greece has made further progress in restructuring its electricity sector as part of an agreed economic bailout programme secured in 2015. light will aid The shareholder’s of power utility Public Power Corp (PPC) have ap- proved the transfer of a 51 per cent stake in power grid operator ADMIE to the state and existing private shareholders. The spin-off was a major term in the international bailout scheme agreed Energiewende in the wake of the country’s debt crisis. However, Greek banks have said that the spin-off – which is cost-free – will Germany’s plans for competitive renewable energy auctions will enable a more measured harm PPC’s finances. approach to the Energiewende. Separately, PPC has sealed a deal with China’s State Grid International Development (SGID) to sell a 24 per Syed Ali energy whilst keeping electricity costs its ruling that that specific auctions for energy capacity this year. In 2016, 818 cent stake in Admie for €334 million. at bay for consumers,” commented each technology would ensure a more MW of offshore wind capacity went The Chinese company won an inter- Germany’s plans to introduce a com- the EU’s Competition Commissioner cost-efficient result than a bidding pro- on line in Germany, bringing the coun- national tender in October 2016 and petitive auction process for the de- Margrethe Vestager. cess in which all or several technolo- try’s total offshore wind capacity to the complex sale process was com- ployment of renewable energy meet Germany announced last year plans gies compete. 4108 MW. pleted in record time, PPC chairman European state aid guidelines, the to organise separate auctions for dif- The Commission also said that Ger- According to the Working Group for and CEO Manolis Panagiotakis said. European Commission has ruled. ferent renewable energy technolo- many has agreed to test different auc- Offshore Wind Energy (AGOW), the In January PPC’s extraordinary The decision means that the German gies. From the start of 2017, auctions tion designs that incorporate grid inte- German Wind Energy Association shareholders’ meeting was postponed government can move ahead with its will be organised to select offshore gration costs. (BWE), the Offshore Wind Energy when National Bank, Piraeus Bank, amendments to the EEG law on renew- wind installations, onshore wind in- Recently released data shows that the Foundation, VDMA Power Systems Alpha Bank and Eurobank, which able energy, which include plans for stallations above 750 kW, solar instal- share of renewable energy in Germa- and the WAB Wind Energy Agency, have extended a €2.2 billion syndi- the development and promotion of off- lations above 750 kW and biomass ny’s electricity consumption rose to 32 Offshore wind energy installed capac- cated loan to PPC, sent a letter to the shore wind energy. and biogas installations above 150 per cent in 2016, a slight increase from ity is expected to grow by a further utility and the finance ministry, saying The Commission said that the kW. Each auction will be limited to a 31.5 per cent in 2015. 1400 MW in 2017, followed by a the sale of the 51 per cent stake with- amended EEG would enable the specific technology. According to the German Associa- steady average of around 1000 MW out any proceeds would harm PPC. steady deployment of renewable en- The amendments have been made in tion of Energy and Water Industries per year until 2019. The banks relented, however, after ergy while maintaining competition response to concerns over the impact (BDEW) and the Centre for Solar En- The momentum in the offshore sec- being given guarantees worth at least in the energy market. of rapid renewable energy deployment ergy and Hydrogen Research Baden- tor will slow, however, due to targets €300 million, enabling them to look “Competitive bidding processes on the German electricity grid and en- Wuerttemberg (ZSW), generation set in the auctions set for 2017. more favourably on PPC’s ability to support the deployment of renewable ergy market. The Commission said in from offshore wind turbines rose 57 n Spain is to hold a new renewable service its debts. per cent year-on-year in 2016, while energy auction in the first quarter of pumped storage hydro increased by 2017. Up to 3 GW of capacity will be 13 per cent over the same period. On- auctioned, according to a regulatory shore wind generation grew six per proposal issued by the government. cent over the same period. The auction will be technology neutral Germany is planning to hold auctions and projects will be expected to start Panagiotakis: Chinese sale Europe for a total of 2.92 GW of offshore wind operating by the end of 2019. completed in record time backs ETI calls for more Drax offshore wind research n Masdar buys Hywind stake n Blade technology can cut costs biomass More research and development into considered uneconomic. “If industry can find routes to more floating foundations for offshore wind Experience with floating wind foun- repeatable manufacture of bigger tur- would enable the UK to open up better dations is currently limited, but interest bine blades – such as in ‘kit form’ close offshore wind resources for develop- is growing. to site – it could lead to even further ment, experts say. Last month Masdar agreed to pur- cost reductions as well as opening up conversion The UK’s Energy Technologies In- chase a 25 per cent stake in Hywind, export market opportunities,” said stitute (ETI) has reported that greater a major floating offshore wind dem- Andrew Scott, ETI Offshore Renew- emphasis on floating foundations onstration project off the east coast of ables Programme Manager. British generator Drax is to proceed project’s contribution towards the would also help to bring down off- Scotland. The 30 MW project is due “But there is also a continued need with conversion of a coal-fired gen- growth of renewable energy out- shore costs. to start operating in late 2017 and has for the sector to learn by doing. The erating unit to biomass after receiving weighed any possible distortions of After ten years years of research, been developed by Norwegian firm industry needs to increase its practical approval from the European Commis- competition caused by the UK gov- development and demonstration into Statoil. experience through even further de- sion under state aid rules. ernment’s backing. offshore wind, the ETI has also rec- In a separate development, Doun- ployment, development and demon- The unit at Drax power station in Drax Power CEO Andy Koss said: ommended that more work should be reay Tri, developers of a floating off- stration of new technologies and learn northern England will be the third to “The energy challenge facing the UK carried out to develop bigger and more shore wind demonstrator off the north from this to contain operational be converted and will have a generat- is how to replace the contribution cur- durable turbine blades that can be as- coast of Scotland, recently awarded a costs.” ing capacity of 645 MW on comple- rently made by coal. Biomass technol- sembled close to site to reduce opera- construction contract to Global En- n The UK’s Carbon Trust has launched tion of the project, Drax said. ogy is proven, ready to go and ide- tional costs. ergy Group. a global competition aimed at reducing The Commission has examined the ally placed to help the country In waters less than 30 m deep, fixed That project will comprise two tur- financial losses from cable damage UK government’s plans to provide transform to a low carbon future with foundations offer the most cost-effec- bines generating a total of 10 MW. during offshore wind farm construc- state aid for the conversion, as well reliable, secure and affordable renew- tive solution, but in waters more than Hexicon, the firm behind Dounreay tion. The innovation contest hopes to Manilla cityscape as the impact of the conversion on the able power. 50 m deep, floating foundations would Tri, hopes that planning permission find ways of monitoring the condition biomass and wood pellet markets. “With the right support from the provide the lowest cost solutions. will be granted by March 2017. of subsea cables to ensure that they are The converted unit will operate ex- government, we could upgrade the De-risking floating solutions would ETI also believes that development not damaged during the load out and clusively on wood pellets sourced remainder of the power station to run encourage offshore wind developers of larger turbine blades will also make installation process. Between 2002 and mainly from the United States and solely on biomass and provide up to to consider such foundations in deep- a difference to the cost of energy, but 2015, cable faults during the construc- South America. eight per cent of the UK’s total elec- er waters, as well as examine oppor- factors such as how they are con- tion phase resulted in £144 million in The EU Commission noted that the tricity from sustainable sources.” tunities in deeper waters currently structed are also important. insurance losses in the UK. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 International News 7 Firms collaborate to push hydrogen agenda Energy, industrial and transport companies have called on governments to support hydrogen as a clean fuel with a bright future.

position hydrogen as a clean fuel with and energy companies with a clear am- holders increase their backing of hy- man Takeshi Uchiyamada said: “The Siân Crampsie a key role to play in the energy transi- bition to explain why hydrogen emerg- drogen as part of the future energy mix Hydrogen Council will exhibit re- tion, and it will also accelerate invest- es among the key solutions for the with appropriate policies and support- sponsible leadership in showcasing The heads of 13 industrial and energy ment in the development and com- energy transition, in the mobility as ing schemes,” the Hydrogen Council hydrogen technology and its benefits firms have called for greater long-term mercialisation of the hydrogen and well as in the power, industrial and said. It has called for governments to to the world. It will seek collaboration, ambition for the use of hydrogen in the fuel cell sectors. residential sectors, and therefore re- back the hydrogen sector with actions cooperation and understanding from transition to a low carbon economy. “The 2015 Paris Agreement to com- quires the development of new strate- and initiatives of their own. governments, industry and most im- Convened on the sidelines of the bat climate change is a significant step gies at a scale to support this.” “Our call today to world leaders is to portantly, the public.” World Economic Forum in Davos, in the right direction but requires busi- Creation of the Hydrogen Council commit to hydrogen so that together The Hydrogen Council said its part- Switzerland, the Hydrogen Council is ness action to be taken to make such a was initiated by Hydrogen Europe, we can meet our shared climate ambi- ners would share data and research to thought to be the first initiative of its pledge a reality,” said Benoît Potier, which says that investments in the hy- tions and give further traction to the make hydrogen technologies profit- kind and brought together major firms CEO of Air Liquide and Chair of the drogen and fuel cell sectors currently emerging Hydrogen ecosystem,” said able, as well as work on international including Alstom, Air Liquide, Linde ‘Hydrogen Council’. “The Hydrogen amounts to €1.4 billion/year. Potier in Davos. standards to help speed their adoption. and Total. Council brings together some of the Acceleration of this investment Other founding firms include Daim- Cost reduction is another key aim, said One of the initiative’s key aims is to world’s leading industrial, automotive level will be possible “if the key stake- ler, Honda and Toyota, whose Chair- the partners. Scatec bags Egypt makes progress on new CCGTs Three new combined cycle gas tur- December 2016 that it had energised Baroud and Maghagha GIS substa- partners for bine (CCGT) power plants are poised two substations that would transmit tions will help deliver 2500 MW of to start operating in Egypt, and will electricity from the Beni Suef and power to the national grid. The fa- increase power supplies in the country Borollos plants, while local reports cilities are a key part of efforts to up- by 3200 MW. cited sources at Egypt’s Ministry of grade the country’s network. The Beni Suef, New Administrative Electricity as saying that six units at Under Siemens’ contract with EEHC, Capital and Borollos power plants will Beni Suef were undergoing tests it is due to deliver up to 4.4 GW in an Nova Scotia eventually add 14 400 MW to Egypt’s ready for commercial operation. open cycle configuration by the end of grid and are being developed by Sie- Local media also reported that one 2016, and 14.4 GW in combined cycle mens under a contract with the Egyp- 400 MW unit at both Borollos and New configuration by mid-2018. tian Electricity Holding Company Administrative Capital were preparing It is also deploying 2000 MW of (EEHC). for commercial operation. wind energy capacity, and building a solar project Siemens announced at the end of According to Siemens, the Etay El- total of six GIS 500 kV substations. Ukraine outage n Norfund backs Scatec’s plans n Financial close targeted in 2017 confirmed as Scatec Solar has secured investment in Apart from the three equity investors, a proposed solar farm in Nigeria that the American Overseas Private Invest- will boost the country’s generating ment Corporation (OPIC), Islamic capacity by 100 MW. Development Bank and the African Scatec has signed a joint develop- Development Bank are expected to be cyber attack ment agreement (JDA) with Africa50, senior debt providers for the project. an African infrastructure fund, and International Finance institutions say Norfund, the Norwegian Investment the key to successful investment is the Fund for Development Countries. The Nigerian state’s issue of project docu- Ukraine’s grid system was the target that’s been collected. The investigation ning can strike twice,” said Sander. agreement will help it move forward ments that provides necessary investor of a sophisticated spear-phishing cy- is far from over, and while the headlines “The Ukrainian power grid has been with development of the 100 MW confidence and the formulation of a ber attack when it suffered an outage may fade, industry professionals struck again by cyber bad guys in part Nova Scotia power plant located in clear roadmap to sustainability in the in December last year, experts have should be diligent in learning all they because it seems they are using it as a Dutse in the Northern Nigerian state energy sector. confirmed. can in order to better defend their own test for bigger things later and in part of Jigawa. In July 2016, the Nova Scotia project Customers in the country were left organisations.” because the attack was so subtle that Africa50 is backed by the African signed a 20-year PPA with Nigerian without power for an hour in the event, The cyber attack is the second to nothing could likely have stopped it.” Development Bank and more than 20 Bulk Electricity Trading (NBET). Lo- which has again highlighted the need affect Ukraine’s power grid after a According to Sander, hackers stole African states. The JDA is a strong cated on 200 hectares of land, the proj- for the energy sector to take steps to massive December 2015 power out- administrative credentials that gave signal of the commitment by Nigeria ect has strong fundamentals with high protect critical infrastructure. age affecting about 230 000 people, them high level access with admin to develop clean energy projects, solar resources and direct access to the “Cyberattacks against energy infra- which was later blamed on the Rus- rights, enabling them to formulate a very Scatec said. transmission grid through a simple structure are here to stay, and the in- sian government. convincing spear-phishing attack. “With the government of Norway connection route, Scatec said. dustry needs to incorporate defense The most recent attack occurred at “That type of spear phishing only taking a direct investment role through The consortium will continue to work into standard operating procedure,” a transmission facility and was not as works when you have the intelligence Norfund, significant regional and Ni- with CDIL, a Canadian renewable en- said Tim Erlin, Senior Director, Prod- far-reaching, but suggests that hack- from the inside to craft it just right,” gerian ownership through Africa50, ergy development company focused uct Management at Tripwire. “When ers could be using Ukraine as a test- said Sander. “With the perch of a high and the track-record of Scatec Solar, on Africa, and BPS, a Nigerian strate- attackers can cause an outage, we’re bed for larger attacks on other targets, power user, they were able to be a spy this offers one of the most solid part- gic consulting, to move the project not talking about data protection; we’re according to Jonathan Sander, VP implanted at a place where everything nerships for solar PV projects glob- from the pipeline phase and achieve talking about human safety. of Product Strategy at Lieberman was open to see and therefore make an ally,” said Scatec Executive Vice financial close in 2017 and commercial “There’s more to learn about this at- Software. attack that works too well to be President Terje Pilskog. operations in 2018. tack buried in the logs and other data “The old expression is wrong – light- stopped.” THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 8 Companies News Areva paves the way for “viable” future The green light to proceed with a state-backed capital injection – subject to conditions – is a major step forward in France’s plans to revive its nuclear energy sector.

Siân Crampsie unduly distort competition. “[The] take place. In a further move towards its restruc- be used for projects offshore France decision paves the way for a viable Of the proposed cash injection, up turing, Areva has completed the sale of totalling 1.5 GW, on condition that the The European Commission says that future for Areva based on a sustainable to €2.5 billion will go to NewCo, the its stake in offshore wind firm Adwen turbines are built in France. France’s restructuring plan for its restructuring plan,” said Vestager. firm which will operate all of Areva’s to Spain’s Gamesa. “This sale is part of the transforma- nuclear energy industry will pave the The approval of the proposed capital fuel cycle operations, and the remain- Gamesa and Areva formed Adwen in tion plan undertaken by Areva to refo- way for a “viable” and sustainable increase has two conditions – the ap- ing €2 billion will go to Legacy Areva March 2015, with both companies in- cus its business on nuclear fuel cycle future for Areva. proval of the sale of Areva’s reactor SA, whose operations will include the vesting €200 million and holding 50 activities. Commitments made as part The Commission has given its ap- business to EDF, and a positive out- troubled Olkiluoto 3 nuclear reactor per cent stakes. The companies reached of the tender process for offshore wind proval for the French state to plough come on nuclear regulator ASN’s project in Finland. Areva says that it an agreement in September 2016 for farms in France will remain borne by up to €4.5 billion into Areva, a move safety tests on the Areva-designed has received offers from strategic in- the sale of Areva’s stake to Gamesa for Adwen,” Areva said in a statement. that will enable the firm to restructure reactor under construction at Flaman- vestors amounting to a further capital €60 million. The deal forms part of the Adwen was the second largest wind and refocus its business on uranium ville, France. increase of €500 million in NewCo. merger agreement between Gamesa turbine manufacturer in Europe in mining and nuclear fuel. The European Commission has also Reuters reported last month that and Siemens. 2015, with a market share of 18.2 per The EU Competition Commissioner approved a bridging loan to Areva by these strategic investors include Ja- Areva and Gamesa received commit- cent of grid connected capacity, ac- Margrethe Vestager said that the capi- the French state of €3.3 billion, to tide pan’s Mitsubishi Heavy Industries ments from the French government cording to the statistics published by tal increase and rescue plan would not it over until the capital increase can and JNFL. that Adwen’s 8 MW wind turbines will WindEurope. SunEdison ready DCNS creates new for sale to Chinese energy division SunEdison has settled a dispute with against SunEdison, while receiving a one of its own former subsidiaries that $2.7 million settlement. will enable it to go ahead with the sale The sale of its technologies is a key n OpenHydro becomes part of DCNS Energies of its solar materials business to a part of SunEdison’s reorganisation n Technip lends support Chinese firm. following its decision to file for bank- SunEdison reached a $150 million ruptcy protection in April 2016. deal with China’s GCL-Poly Energy Last month its yieldco, TerraForm Naval firm DCNS is expanding in the supported by Technip and BNP technology. Technip will support in August 2016 to sell certain assets Power, sold 365 MW of solar energy marine energies market with the Paribas Dévelopment, and is a signal DCNS Energies with its expertise in and technologies used in the produc- capacity in the UK. launch of a new business unit. of the belief in the potential success engineering and management of com- tion of solar cells. The portfolio – made up of 24 oper- DCNS Energies will focus on the of tidal technology, DCNS said. plex marine projects. However, SunEdison Semiconduc- ating solar power projects around the industrial and commercial develop- “We have serious assets with which SPI said that DCNS Energies would tor, a company spun-off by the bank- United Kingdom that TerraForm took ment of three marine energy technolo- to succeed on this market: renowned take key positions in development rupt renewables developer in 2014, control of from its parent company in gies: in-stream tidal turbines, ocean experts, advanced technology, turn- projects and would be “a promising objected to the sale, claiming a stake 2014 and 2015 – has been purchased thermal energy conversion and floating key offers covering the lifetime of first mover”. in the intellectual property up for by Vortex. Vortex is a renewable en- offshore wind. projects, and an expanding portfolio n Atlantis Resources is expanding its transfer. ergy platform managed by EFG OpenHydro, the tidal turbine busi- of sites,” said Thierry Kalanquin, business to include tidal lagoon, tidal According to bankruptcy court Hermes’ private equity arm, in which ness purchased by DCNS in 2013, will CEO of DCNS Energies. “The cre- barrage and offshore wind projects documents SunEdison, its creditors Malaysian firm TNB holds a 50 per become part of DCNS Energies. The ation of DCNS Energies is a boost for alongside its core tidal stream expertise. and SunEdison Semiconductor have cent stake. new unit’s activities will be supported the entire industrial sector that will It has launched an internal division – struck a deal that should allow the sale The transaction is valued at $580 by a €100 million equity investment follow this development.” Atlantis Energy – that will seek project to proceed. million, TerraForm said. from DCNS and SPI, a fund managed DCNS added that the new busi- opportunities and develop assets on SunEdison Semiconductor Ltd. has TerraForm is not part of SunEdi- by Bpifrance. ness would seek to build on the prog- behalf of infrastructure funds, invest- also settled $40 million in claims son’s bankruptcy proceedings. The new venture will also be ress made in the maturation of tidal ment banks and private developers. UK’s National Grid to restructure n NG retains system operator role n Rooftop solar investment with Sunrun

UK transmission grid owner National Business and energy secretary Greg the firm. The split could pave the way ity to charge generators for access to million investment in the rooftop solar Grid is to restructure its business to Clark said that the proposed new for a total separation in the future. its grid while at the same time having sector in the USA. provide greater separation of its sys- structure would help to boost investor Dermot Nolan, chief executive of complete operational control. Its in- The company has formed a partner- tem operator role from the rest of its confidence in the UK energy industry Ofgem, said: “Having a legally sepa- terconnector business is also in com- ship with Sunrun to sell solar power business. and remove any concerns over poten- rate system operator will allow it to petition with domestic sources of systems to homes and businesses, and The move follows a review by the tial conflicts of interest within Na- take on a more proactive role in man- power generation. develop products and services for a government of the firm that owns and tional Grid. aging the system and working with The new structure is set to be imple- power grid adapting to a new model operates the high voltage electricity National Grid will implement a others, while mitigating any conflicts mented in 2019 following a formal of small-scale local generation. grid in England and Wales and falls structure with a distinct system op- of interest.” consultation. Among their offerings will be a new short of taking away the system op- erations unit, with separate employ- One area of concern among the Last month National Grid made its package that provides a battery for erator role altogether. ees, board and offices from the rest of firm’s critics is National Grid’s abil- first move into solar power with a $100 domestic energy storage. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Special Project Supplement Uruguay enhances its wind credentials The Pampa wind farm is the largest in Uruguay. Its recent commissioning is a major milestone in the country’s journey to reaching 1.5 GW of wind capacity by the end of this year. Junior Isles

The Pampa wind farm is the ith a population of less than really kicking off in earnest in 2011. wind speeds of 7.9 m/s. by KfW IPEX-Bank and Bayerische largest in Uruguay 4 million people, Uruguay Under a type of auction scheme be- “The wind resource was the most Landesbank. Notably, however, the Wcan be regarded as a rela- ing conducted by state utility UTE, important driver behind the project’s remaining nearly $100 million was tively small country. Yet when it comes bids for new wind capacity were ac- location. It will give the plant a load raised from a public share issue ar- to wind energy, it has big plans. About cepted based on price and other fac- factor of about 49 per cent. Certainly ranged through a finance vehicle set six years ago it launched an initiative tors such as local content. wind farms can have capacity factors up by UTE. By purchasing $20 mil- aimed at growing its wind power gen- By all measures, the process has above 40 per cent but 49 per cent is lion of the public shares and opening erating capacity from scratch to some been very successful. For the last definitely on the high side,” noted up the funding to the general public, 1.5 GW by the end of this year. This three years, prices of $63/MWh have Riedweg. “Also, it is in the north of UTE was able to cover about 30 per would see Uruguay assume the status been the norm – a level that would be the country where there is not a lot of cent of the total project costs. This of number one in the world in terms considered very competitive in Eu- generation, so the wind farm might public “buy-in” approach not only of wind capacity per capita – even rope even today. help stabilise the network grid in the raised money but was also a shrewd ahead of the likes of Denmark. Commenting on the country’s strat- region. There is also a medium volt- PR move. Under the plan, wind will join hydro egy to boost wind capacity, Vincent age line crossing the wind farm, “Everybody was able to buy shares as the main generating source – each Riedweg, Managing Director, Nordex which made the network connection in the wind farm. In addition to gen- representing about 40 per cent of the Energy Uruguay S.A., who led con- very easy.” erating huge interest from the public, generating mix – with the remaining struction of the Pampa project, said: Pampa was built by Nordex under a it also brought a great deal of positive 20 per cent coming from thermal “Wind resources are very good and it turnkey contract that saw it supply attention for renewables in what is a power stations and other sources. The is considered to be a perfect match for and install 59 N117/2400 wind tur- small country,” said Riedweg. move will help Uruguay reduce its hydropower because of the storage bines. It was a complete package, in- It is an approach that UTE plans to dependency on commodities such as capacity of hydro. Also, studies show cluding the steelworks and electrical replicate going forward. “They plan gas and oil, and at the same time boost that the wind and rain regimes are substation. In addition to the supply to do it for other projects,” noted its environmental credentials. completely uncorrelated. When there’s of the turbines, Nordex was respon- Riedweg. “They have already used The country recently took a signifi- a lack of rain there is not necessarily sible for civil and electrical works the same mechanism for a 70 MW cant step closer to its wind target with a lack of wind and vice versa. So the (through subcontractors), installation project and plan to do the same for a the commissioning of what is its big- utility considers it a good mix to and commissioning of the turbines third one this year.” gest wind farm to date. Completion of have roughly 40 per cent wind, 40 and connecting them to the grid. While Nordex’s willingness to help the Pampa wind farm in December per cent hydro and 20 per cent from Nordex also helped with arranging in arranging financing and its long- took Uruguay well past the 1000 MW other sources.” talks to help finance the project. “We standing history in the country were installed wind capacity mark. Using Nordex has played a key role in helped to bring German export important, Riedweg stresses that the 59 Nordex wind turbines, the plant Uruguay’s wind strategy from day-1, credit agency Euler Hermes into the N117/2400’s technical capability adds 142 MW to the grid, bringing the having installed the country’s first game and helped to find a financing was the key factor in securing the country’s total wind generating ca- turbine in 1999. Today it has installed partner,” said Riedweg. contract. pacity to around 1300 MW by the end a total of 309 MW in four different The financing of the project was “They had a long relationship with of 2016. wind farms: Juan Pablo Terra (67 quite interesting. In the past, private Nordex. A Nordex N29 turbine in- Completion of the Pampa wind MW), Florida (50 MW), Melowind companies that took part in the bid- stalled at the University of Montevi- farm is in many ways the high point (50 MW) and Pampa (142 MW). ding process have developed most of deo at the end of the 1990s, is the only of an energy transformation that be- Pampa was the ideal location for the wind projects in the country. wind turbine that many people knew. gan almost a decade ago. The trans- the largest of these projects for sev- Pampa, however, was developed by It’s an anecdote but it contributed to formation of Uruguay’s energy mix eral reasons. It is located in the larg- UTE, which allowed a different the reputation of the company. But the began during the first term (2005- est and thinly populated Department approach. main thing was that they liked the 2010) of President Tabaré Vázquez, of Tacuarembo in the heart of the About 70 per cent ($224 million) of machines, the technology.” with the renewable energy plan country, at a site that enjoys mean the $320 million project was funded According to Riedweg, the THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Special Project Supplement

N117/2400 offered the best load fac- tor of the competition at the time. “When we launched the machine in around 2013/14, we were probably 6-12 months ahead of the competi- tion. With the high load factor we were able to offer the best cost of en- ergy. There was also good feedback on the machine’s reliability.” The N117/2400 has been specially developed for low-wind sites. With a rotor diameter of 117 m and a swept area of 10 715 m2, the N117/2400 is one of the most efficient IEC 3 tur- bines in its class. According to Nor- dex, in typical low-wind regions, it will achieve over 3500 full-load hours. At Pampa, the turbine’s high load factor will see the wind farm yield an expected 640 GWh of elec- tricity per year. The N117/2400 is the result of over a decade of ongoing technical en- hancements to the multi-megawatt platform. The rotor consists of three rotor blades made of high-quality glass reinforced plastic. Ergonomically beginning about one year ahead of the BOP, it was fairly intense.” In spite of The turbine blades were fibre-reinforced polyester, a hub, designed, it is spacious and thus ser- start of construction. the numerous challenges, turbine shipped to the port of slewing rings and drives for adjust- vice-friendly. Actual construction on site began in erection went pretty much to plan. Montevideo before being ing the rotor blades. A pitch system The nacelle features two redundant August 2015, with concrete for the According to Riedweg, it took just transported to the site is used to control and optimise out- wind direction sensors to continu- first foundation being poured in early eight months to erect the entire wind put. The variable-speed rotor en- ously monitor wind direction. If the November and the first turbine com- farm, with as many as 12 turbines hances the aerodynamic effects and permissible deviation is exceeded, the pleted in January 2016. At points being erected per month at the peak of reduces the wind load on the system. nacelle yaw is actively adjusted by during construction, three main cranes activities. Like at Amakhala, a “star- If necessary, each rotor blade can be means of up to four geared motors. locked in any position by means of When installing the machines, care an innovative locking system to fa- has to be taken to ensure the blades cilitate servicing. and yaw are used in the most opti- The three redundant and indepen- mised way for energy production. dently controlled rotor blades can be Convinced of the turbine’s technical set at full right angles to the rotation capability, UTE first began discussing direction for aerodynamic braking. In the project with Nordex around the addition, the hydraulic disc brake end of 2013 and the deal was closed provides additional support in the by the end of 2014. Riedweg recalls: event of an emergency stop. “At that time we were executing the The wind turbine has two anemom- Juan Pablo Terra project with them eters. One anemometer is used for and we received the Notice to Proceed controlling the turbine, the second for on Pampa in March 2015.” monitoring the first. All operational Pampa is a huge site, covering some data can be monitored and checked on 70 km2. In the first instance, this called a control screen located in the switch for the construction of 42 km of roads cabinet or via an external laptop. The in and around the wind farm to sup- data and signals are transmitted via plement the existing public roads. ISDN for remote monitoring and the As the EPC contractor, with respon- operator can download all key data sibility for all the coordination and for the turbine from the internet. The handling the environmental issues, necessary communications software Nordex had its work cut out. “It was and hardware is supplied by Nordex. not easy dealing with the environ- The drive train consists of the rotor mental issues, said Riedweg. shaft, the gearbox, an elastic coupling “We also had to source and procure and the generator. some equipment, including some key Nordex equips the turbines with a equipment like transformers, from two-stage planetary gearbox with a local manufacturers. This meant we spur gear stage or with a differential had to support them with engineering, gearbox. The gearbox is fitted with a certification and the quality process. cooling circuit with variable cooling There was a lot of work to do in terms were employed plus a set of auxiliary lift” technique was used, wherein all Turbine blades being output. The gearbox bearing and tooth of getting some constructors up to cranes doing pre-erection. With erec- three blades are assembled at the base transported to site by road: engagement are kept continuously speed. At one point we also had to tion being carried out on four different of the tower and the whole “star” 42 km of roads had to be lubricated with oil. step in to do additional coordination fronts (three main cranes and one set lifted to the top of the tower and con- constructed in and around the The generator is a double-fed asyn- after one of our sub-contractors faced of auxiliary cranes) and BOP in paral- nected to the nacelle. This has become wind farm chronous machine. Nordex has been bankruptcy in the middle of construc- lel, it called for a coordination team of Nordex’s standard method of installa- using this type of generator with tion. Everything that could go wrong about 40 people. At the peak of con- tion. “We only do single blade instal- variable-speed turbines successfully went wrong. There was flooding in struction, close to 500 people were lation when the wind is too high, or it for many years. The main advantage April, which closed the site for more working on site. is not possible to erect the rotor on the is that only 25-30 per cent of the en- than two weeks. There were a lot of Riedweg commented: “With three ground, or on higher towers,” com- Nordex’s scope also included ergy produced needs to be fed into the challenges.” main cranes erecting turbines plus the mented Riedweg. construction of the substation electricity grid via a frequency con- And with the general public being a verter. The deployment of this gen- significant shareholder, everything erator/frequency converter system was under the spotlight. Riedweg thus cuts the total cost of the wind added: “We attracted a lot of attention. power system. Some we wanted but some we would The gearbox, generator and con- have liked to avoid.” verter of the turbine each have inde- The challenges were compounded pendent active cooling systems. The by the tight timeline – around 20 cooling system for the generator and months to erect 59 turbines, build the frequency converter is based on a substation and complete the balance- cooling water circuit, while the gear- of-plant (BOP). This was around 6-7 box is cooled by an oil-based system. months shorter than the Amakhala This ensures optimum operating wind farm in South Africa, which conditions in all types of weather. A with 56 turbines was Nordex’s previ- separate cooling system room at the ously biggest project. rear of the nacelle facilitates access “The consequences of having a very to the cooling units and ensures opti- tough timeline, was that we had to do mum performance of the individual BOP and erection in parallel. So there systems. was a lot of coordination to do,” said The nacelle consists of the cast Riedweg. “We were finishing a plat- machine frame, a welded generator form, bringing a crane, constructing a frame, a steel structure for the crane turbine, running the cables under- system and for supporting the nacelle ground and connecting everything the housing and the nacelle housing it- next day.” self, which is made of glass fibre- It all required careful planning, THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Special Project Supplement

Turbine tower erection went If erection itself was straight forward, explained Riedweg. A nacelle being installed at the top of a tower smoothly in spite of the commissioning was trickier. Accord- He added: “We had to be extremely challenging schedule ing to Riedweg, the main difficulty coordinated with the utility so they Riedweg explained: “In Uruguay base there. Out of the 1.5 GW that was in commissioning due to difficul- could inform customers of the com- there can be some time between com- will have been installed by the end of ties in securing a grid connection. ing supply cuts and minimise the missioning and commercial operation this year, we will have 309 MW – With a medium-voltage line already duration of the cuts. There was sig- because of the acceptance criteria. roughly 20 per cent.” running to the centre of the wind farm, nificant pressure for commissioning But while you are doing commission- He added that Pampa is already the good news was there was no line the substation because any fault in ing, you still receive 80 per cent of being used as the reference for secur- the tariff for the energy produced. ing other business. “We have been “Since December we have been bringing other clients to the site to providing an availability guarantee to show them how we operate and what the client because we have a 10-year we do,” said Riedweg. maintenance contract on this project” It all ties in with Nordex’s joint He pointed out that maintenance venture with Spain’s Acciona Wind will be performed by Nordex and not Power – a venture that is already bear- sub-contracted out, as is sometimes ing fruit. Two deals were recently the case with its competitors. closed in Argentina – La Castellana “We do as much as we can inter- (97 MW) and Achiras (47 MW). nally with our own technicians. On a “To my knowledge, we are the first wind farm of that size, we currently to announce projects in Argentina. have six full-time technicians located We have been able to enter the market on site and plan to recruit two more very quickly because of the experi- this year. We also have a team in ence we gained in Uruguay combined Montevideo providing some back with a very good product offering for office support and technical - emer the markets in Latin America,” said gency support to the site. It’s a decent Riedweg. sized organisation.” Argentina is one of two big markets The resources that Nordex is put- in the region that Nordex will be ting into the Pampa project reflect its targeting going forward. “The market importance to the company. Not only is opening up following the election is it currently the biggest wind farm last year,” noted Riedweg. Mexico, in Uruguay, it is expected to remain where Acciona has already been the biggest for the foreseeable future. particularly successful, is the other As well as being a landmark project main focus. for the country, it also sets a new He said Nordex would also be milestone for Nordex. “It is the big- building some projects in Peru and gest project that Nordex has built so Chile would be next. He concluded: far,” noted Riedweg. “Although Chile has been slow for In terms of geographic importance, us, it will be an important market Turbine blades were to build. However, as this was the only the substation could potentially trig- it provides a platform for Nordex to further down the line. It ran some assembled on the ground line to the north of the country, shut- ger a fault in the line. further strengthen its position in the auctions last year but for construc- before being “star-lifted” to ting it down would result in 100 000 “We had to have 24/7 monitoring region. Outside of Brazil, which tion in 2020/21.” the top of the tower people losing supply in two cities. and supervision on site so we could Nordex considers separately from its By the time the likes of Chile is “When we erected the first turbine react quickly when there were techni- Latin America efforts due to its size ready to add new wind capacity, we had no grid connection, which cal issues.” and separate operation the company there would have been several years caused some hiccups. It meant we had Following connection of the last has there, Nordex is looking to build of operating experience at Pampa to do a lot of pre-commissioning to turbine to the grid on December 15, on its success in Uruguay. and other projects in the region, plac- As many as 12 turbines were make sure that when the grid was 2016, Pampa is now going a through Riedweg commented: “Uruguay ing Nordex in a good position to ex- erected per month at the peak switched on, we could commission as a period of operational and grid was the first market for Nordex in pand its ever-growing Latin Ameri- of activities many turbines as quickly as possible,” compliance tests. South America and we have a nice can installed base.

Pampa was ready to transmit its full 142 MW to the grid in December 2016 QUIET YET POWERFUL The Nordex N117 / 3600 IEC IIa for Medium-Wind Sites and N131 / 3600 IEC S for Light-Wind Sites.

The next step towards reduced cost of energy

• 20% increased nominal power

• Up to 12% improved AEP

• Lowest sound emission in its class

• Based on the fully-certified and proven Nordex Delta (Multimegawatt) Platform

• Optional serrated trailing edge available on rotor blades for further reduction of sound emissions

›› Find out more at www.nordex-online.com THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Tenders, Bids & Contracts 9

Americas The new plant will have an in- East Anglia One offshore wind farm hydroelectricity specialist from stalled capacity of 550 MW. It will in the UK. Baden-Württemberg, Germany. Longroad buys Vestas help Hong Kong to achieve its target The new wind farm, due to be fin- McPhy Energy will help Energiedi- components of increasing gas fired generation to ished in 2020, will be made of up enst to set up a green hydrogen pro- around 50 per cent of the fuel mix 102 wind turbines installed around duction facility at the site of its US renewable energy developer Lon- for power generation by 2020. 50 km from the shore. Nexans will Wyhlen hydroelectric power plant, groad Energy Holdings LLC has pur- supply and install two 85 km 3-core supplying it with a 1 MW hydrogen chased wind turbine components for Ace contract for Wärtsilä submarine cables with embedded fi- generation unit. It will also manage over 600 MW of projects from Den- bre optics, as well as accompanying this facility’s maintenance under a mark’s Vestas Wind Systems. Wärtsilä will supply a 150 MW Smart accessories, for the wind farm in the long-term contract and will support Longroad said it will use the com- Power Generation plant to Ace Alli- North Sea. The contract is worth Energiedienst to monetise its produc- ponents as part of projects within its ance Power Limited, a special purpose more than €180 million. tion for applications in industrial mar- own pipeline and schemes currently company owned by the Summit Group Nexans will type test, manufacture kets, as well as zero-emission mobility owned by other developers. These of Companies in Bangladesh. and then install the high voltage ca- and injection into gas networks. projects should be completed by the The order comprises eight Wärtsilä bles and accessories at the 300 km2 This project for a green hydrogen end of 2020. 50 engines and one Wärtsilä 32 en- site. The turnkey contract includes a production facility, which will be de- gine. The contract includes the engi- pre-installation survey and cable livered at the end of 2017, is part of Areva to upgrade TVA neering and equipment with addi- protection by burying. Delivery of the renewable energy storage pro- tional advisory services for the the cables will begin in Summer gramme based on hydrogen technol- equipment plant’s installation, testing and com- 2018. ogies launched by the German foun- Areva NP has signed a multi-million missioning, as well as on-site staff dation ZSW. dollar agreement with the Tennessee training. Emerson to convert Valley Authority (TVA) to provide The equipment is scheduled to be GE Hitachi supports fleet-wide nuclear refuel equipment delivered during the second half of Lynemouth upgrades. 2017, and the plant is scheduled to EPH Lynemouth Power has awarded Swedish programme Areva NP will upgrade existing re- be operational in early 2018. Emerson a contract to help convert the fuelling platforms, manipulator 44-year-old coal-fired Lynemouth GE Hitachi Nuclear Energy (GEH) cranes, fuel transfer systems and Sri Lanka purchases power station to biomass firing. has been awarded a three-year con- used fuel bridge components. This When the conversion is complete tract by OKG AB to support the dis- modern equipment will help opera- power in late 2017, the plant, near Newcas- mantling of two reactors at the Os- tors increase efficiency, strengthen The government of Sri Lanka has an- tle in the United Kingdom, will be karshamn nuclear plant in Sweden. performance and reduce time when nounced plans to purchase additional fuelled by approximately 1.4 million The contract covers the segmenta- receiving, moving and storing nucle- power generating capacity from the tons of wood waste per year, supply- tion of reactor pressure vessel inter- ar fuel. private sector through an open interna- ing the national grid with up to 390 nals for Oskarshamn Units 1 and 2. Areva NP will complete this work tional competitive bidding process. MW of low-carbon electricity. The work, which will include dis- at Sequoyah Units 1 and 2, Watts Bar It will purchase a total of 60 MW. Emerson will be responsible for mantling, cutting and packing the re- Unit 1 and Browns Ferry Units 1, 2 The new capacity will be installed at demolition, engineering, installation, actor internals for final disposal, will and 3, representing three pressurised a minimum of three locations to ease start-up, commissioning and coordi- begin in January and continue water reactors and three boiling wa- the transmission constraints that have nation of work among multiple sup- through 2019. ter reactors. arisen in the Central and Southern pliers and contractors. provinces. International ABB wins Belo Monte link Global to build floating GE to add 2 GW to Iraq Nordex wins down under ABB has won an order worth around offshore wind demo GE has secured more than $1.4 billion $75 million to supply advanced con- Nordex Group has signed a contract Global Energy Group has been se- in orders from Iraq’s Ministry of Elec- verter transformers for the Belo Mon- to supply 22 AW125/3000 turbines for lected by Dounreay Tri to build a tricity to set up power plants and pro- te 800 kV ultra-high-voltage direct the construction of the first phase of floating offshore wind demonstra- vide technology upgrades and main- current (UHVDC) transmission link in the Mount Gellibrand wind farm in tion power plant off the coast of tenance services. Brazil. Australia. Scotland. The US technology giant has The 2518 km link will transmit The 66 MW project is located near The Dounreay Tri facility will be a signed agreements that will add over clean power generated in the north of Colac, in western Victoria, where two-turbine, wind farm using float- 2 GW of power and secure the deliv- Brazil, from the Xingu substation, to wind speeds average 7.2 m/s. The ing foundations deployed 9 km off ery of approximately 1.75 GW of the Rio substation in the southeast. It turbines are especially designed for the Caithness coast. The prototype existing power to the national grid. will be capable of transporting up to medium wind sites and will be in- installation will put Scotland at the The contract includes the construc- 4000 MW of electricity – enough to stalled on 87.5 m tubular steel tow- forefront of developing floating off- tion of the Samawa and Dhi Qar meet the needs of around ten million ers, which will be built in Victoria. shore wind turbine technology, power plants, adding 1500 MW to the people. Start-up of the wind farm is sched- Dounreay Tri said. grid. GE will initially install four 9E ABB will supply fourteen 400 uled for 2018, after which Nordex Global Energy Group will carry out gas turbines in simple cycle at each MVA, 400 kV converter transform- will service the turbines for two the works at its Nigg Energy Park fa- site by 2018, then later convert the ers and other related equipment. years. cility in the Scottish Highlands. plants to combined cycle operation. Dounreay Tri is aiming to commis- The Power Up Plan will also see Transmission deal for ABB sion the 10 MW wind farm in 2018. GE add over 580 MW to the national Asia-Pacific It hopes to secure planning permis- grid through upgrade and rehabilita- Sembcorp signs BOT ABB has teamed up with India’s na- sion and consents from Marine Scot- tion works at four power plants, and tional electricity grid operator Power land and Scottish ministers by the carry out maintenance on a fleet of Sembcorp has signed a build-operate- Grid Corporation of India Limited end of March 2017. 9E gas turbines installed in six dif- transfer (BOT) agreement with the (Powergrid) to deliver the Raigarh- ferent power plants in Iraq. government of Myanmar for the My- Pugalur 800 kV ultra-high-voltage MHI Vestas lands largest GE has also been working with re- ingyan power plant. direct current (UHVDC) transmission gional and international institutions The 225 MW gas fired power plant link that will connect Raigarh in cen- order to facilitate financing to help the will be built in the Mandalay region tral India to Pugalur in the southern Dong Energy has placed an order with government of Iraq execute these and will supply energy to the Myan- state of Tamil Nadu. MHI Vestas Offshore Wind for the 450 and other projects. Since 2016, GE mar Electric Power Enterprise under The 1830 km link will be among MW Borkum Riffgrund 2 project in has helped the country secure $2 bil- a long term power purchase agree- the longest in the world, capable of Germany. lion in financing for projects in the ment. It was approved by the Myan- transmitting 6000 MW of power. The The order is the largest ever se- energy sector leveraging its global mar Investment Commission in early two-way link will integrate thermal cured by the wind turbine firm, and sourcing capabilities coupled with its 2016. and wind energy for transmission of includes a five-year full-scope -ser strong relationships with lenders. Sembcorp will build the power power to high consumption centres vice with an availability guarantee, plant and operate it for 22 years. located thousands of kilometres ensuring optimised performance of Oman names procurement away, supporting electricity demands the wind power plant with maximum consultant Siemens order for in the south, when wind strength is power output. low, and transmitting clean energy to The order is the third from Dong The Oman Power and Water Procure- Castle Peak the north, when there is excess wind Energy for the V164-8.0 MW tur- ment Company (OPWP) has selected Siemens has received an order from power. bine, following Burbo Bank Exten- Atkins Power and Renewables to pro- Castle Peak Power Company Limited The total project value is worth sion (258 MW) and Walney Exten- vide technical advisory services for (CAPCO) for the delivery of a power more than $840 million and the bal- sion (330 MW) and brings the order the development of the Sultanate’s block for a new combined cycle unit ance will be executed by ABB’s con- pipeline with DONG Energy to over ‘Power 2021 Procurement Cycle’. at the Black Point power station in sortium partner BHEL (Bharat 1 GW. The consultancy contract centres Tuen Mun, in the northwest of Hong Heavy Electricals Limited), a leading When fully commissioned in the on the procurement of a new Inde- Kong. Indian public sector company. first half of 2019, Borkum Riffgrund pendent Power Project (IPP) of a The order is the first from Hong The project is expected to be com- 2 will be one of the largest offshore minimum capacity of 800 MW to Kong for Siemens power plant com- pleted in 2019. wind farms in Germany. help meet forecast power demand re- ponents for 20 years. It includes the quirements of 2021. delivery and commissioning of the Europe McPhy wins Energiedienst OPWP, as the sole procurer of all power block, with a single-shaft con- tender new power generation and water de- figuration, comprising an SGT5- Nexans selected for East salination capacity, is overseeing the 8000H gas turbine, an SST5-5000 Anglia One McPhy Energy, which designs, manu- procurement of this new IPP, which steam turbine, a water-cooled factures and integrates hydrogen is proposed to be set up within the SGen5-3000W generator manufac- ScottishPower Renewables has cho- equipment for the energy and indus- Main Interconnected System (MIS), tured in Germany as well as the SP- sen Nexans’ submarine cables to carry trial sectors, has won the call for ten- serving much of the northern half of PA-T3000 control system. energy onshore from its new 714 MW ders issued by Energiedienst , the the Sultanate. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 10 Energy Industry Data

Global CO2 emissions from fossil fuel combustion in the power sector by scenario 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 2016, © IEA/OECD, Figure 6.4 , page 250

Growth in generation to 2040 by low-carbon technology in the New Policies and 450 Scenarios

World Energy Outlook 2016, © IEA/OECD, Figure 6.5 , page 252

Global annual capacity additions of low-carbon technologies in the 450 Scenario,

World Energy Outlook 2016, © IEA/OECD, Figure 6.6, page 253 This section is supported by ABB

Source: World Energy Outlook 2016 THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Fuel Watch 11

Oil

US shale is wild card Crude Oil Prices - 2016/2017 2014 Settlement Prices For Benchmark Crudes ($/B) Nymex WTI ICE Brent DME Oman ICE Dubai OPEC Basket

Price/Barrel in Opec cutback plan $80.00 $75.00 n Production cuts have entered “probation period” $70.00 n Shale rig count rising $65.00 $60.00 David Gregory the agency. “Early indications suggest predicted that US shale oil production $55.00 a deeper Opec reduction may be un- would step in to fill any gaps that the As Donald Trump prepared to take the derway for January, as Saudi Arabia Opec and non-Opec cuts might pro- $50.00 oath of office for the US presidency and its neighbours enforce supply duce and that this would lead to oil $45.00 last month, crude oil prices were aver- cuts,” the IEA report said. prices declining again. aging around $55/b as it became clear But the IEA also forecast higher “As a result of the increase in prices, $40.00 that Opec members were beginning to crude production among non-Opec we are going to see a substantial $35.00 comply with the agreement they states during 2017, predicting that sup- amount of oil pouring into the market reached at the end of November to cut plies would rise by 385 000 b/d during from the United States,” Birol said. “I $30.00 production by 1.2 million b/d during 2017 as higher prices in anticipation of would expect that we see a rebalanc- the first six months of 2017. the production cut “stimulate increased ing of the markets within the first half $25.00 Hurting from two years of low oil investment in the US.” The IEA said of the year, but what I want to say [is] Date 1 Nov 15 Nov 1 Dec 15 Dec 1 Jan 15 Jan 19 Jan prices, Opec members, with the ex- recovering light tight oil – known also that we are entering a period of much 2016 2016 2017 2016 2017 2017 2017 ception of Nigeria and Libya, and 11 as shale oil – production underpins 320 more volatility in the market.” Birol non-Opec producers, particularly 000 b/d in total US output this year. said that with an oil price at $56 or Russia, made a rare agreement to cut Added output is expected from Brazil, $57 per barrel, there are a lot of shale production in an effort to see the price China, Canada and Colombia during oil plays in the US where it would to come back, a prime indicator of million b/d during the first week of increase. On that promise, crude oil 2017, the report said. make perfect sense to produce. shale oil activity, the rig count, has also this year, the higher averaged since prices have started to rise. Throughout his election campaign This is what many analysts have been come back. April 2016. The US rig count num- The latest monthly oil market report Trump spoke of putting America first saying for well over a year. Saudi Ara- “Not only is the rig count rising,” bered 529 in early January, compared released by the International Energy and making the US energy indepen- bia took the decision to flood the oil the IEA said in its monthly report, to a 2016 low of 316. Agency (IEA) on January 19 said the dent. As with the Opec and non-Opec market in 2014 in order to force prices “but recent reports tell us that the It will be mid-February before any production cuts “had entered their probation period, it is still too early to down and subsequently force high-cost productivity of shale activity has im- numbers are available that reflect probation period and it was still too tell how the new US administration producers like shale oil out of the proved in leaps and bounds. Whether whether the Opec/non-Opec produc- soon to see what level of compliance will shape its energy policy, but US market. But while the plan worked to a it be shorter drilling times or larger tion cuts are taking hold and reducing would be achieved.” Opec production, domestic oil and gas production will certain extent and forced many US amounts of oil produced per well, stockpiles, and in the meantime, the which now excludes Indonesia, aver- likely receive encouragement from firms to cease production or into bank- there is no doubt that US shale indus- oil price will do what it always does aged 33.09 million b/d during De- Team Trump. ruptcy, shale oil producers have learned try has emerged from the $30/b oil – react to a variety of statements by cember, down from a record high in Speaking at the Global Economic how to adapt and remain in the game world we lived in a year ago much officials and market indicators that November by 320 000 b/d, with Saudi Forum in Davos, Switzerland, IEA even if it has been on the sidelines. As leaner and fitter.” capture a trader’s attention for a lim- Arabia taking the lead, according to Executive Director Fatih Birol oil prices have in recent months begun US crude output averaged 8.95 ited time. Gas East Mediterranean gears up for new phase in New Year Real work in the East Mediterranean Sea is scheduled to get started during 2017, bringing the region out of a period that has involved a lot of preparation for the future but little exploratory and development work.

Mark Goetz the resource is estimated at 22 tcf. could provide Israel and Cyprus with in Israel had brought offshore work to launch its third licensing round in early Over the next couple years, Ener- the export option they are seeking, a halt as legislators argued over indus- 2015 and in December it announced Things should get busy in the East gean will invest $1.3-1.5 billion in the provided markets for the LNG mate- try regulations, and drilling had the preferred bidders for the three Mediterranean Sea in the near future. fields, which will supply gas to Israel’s rialise. Letters of Intent and other ini- stopped in Cyprus following the drill- blocks tendered: ExxonMobil/Qatar Greece’s Energean Oil & Gas an- domestic market. tial documents have been signed by ing of two dry wells there by Eni in Petroleum for Block 10, Eni (which nounced last month that it would de- This year is expected to see further the companies and branches of gov- mid-2014. The lack of a functioning already holds Blocks 2, 3 and 9) for velop its newly-acquired Tanin and development of the Tamar gas field, ernments paving the way for the plan, government in Lebanon had brought a Block 8, and Eni/Total for Block 6. Karish gas fields offshore Israel using which is proving Israel with some 60 but solid commercial agreements re- licensing round launched in 2013 to a Total, which was awarded Block 11 a floating production storage and of- per cent of its electricity, and a final main elusive. stop for want of two government de- in February 2013, will drill its first floading (FPSO) unit. Energean in investment decision (FID) on the Le- That plan could be complicated by crees approving the licensing model well offshore Cyprus during the first December received approval from the viathan field. While an important whether Egyptian gas production re- and block demarcations. half of this year, and Eni will return to Israeli authorities to purchase 100 per commercial export agreement has covers sufficiently in the near term to Even Egypt, which was forced to resume its suspended drilling pro- cent of the two fields, which were dis- been made to sell 45 billion cubic allow the country to return to the role start imports of LNG in 2015 due to a gramme offshore Cyprus during the covered by US explorer Noble Energy metres (bcm) of gas to Jordan’s Na- of gas exporter. It was reported in the lack of supplies resulting from failed second half. Total’s well is targeting in 2011 and 2013, respectively. To- tional Electric Power Company Egyptian press last month that Italy’s government policies, made adjust- the same Zohr geology in a location gether they hold an estimated 2.4 tril- (NEPCO) over 15 years, it awaits rati- Eni had received approval from the ments to encourage investment. It just north of the Egyptian well. lion cubic feet of natural gas and 25 fication from Jordan’s parliament, Egyptian government to export gas now expects to be energy sufficient A licensing round opened by Israel million barrels of condensate. Ener- where there is opposition to the propo- produced at its giant Zohr field and again by 2020. last November tendering 24 blocks gean agreed to pay $148 million plus sition of buying gas from Israel. other gas assets in Egypt through the Zohr, with a resource of 850 bcm, is will close in March and preferred bid- royalties for the licenses. During the last year there has been idle LNG facility at Damietta, in the largest discovery ever in the ders are expected to be named by Noble and its Israeli partner Delek considerable speculation about Israeli which Eni holds a 40 per cent share. Mediterranean, and the fact that it was mid-year. In Lebanon, now with a Group were forced to sell the two – and Cypriot – gas being exported to Eni’s discovery of the 30 tcf Zohr found in a carbonite geological stra- working government, the cabinet has fields as part of the Israeli govern- Egypt where there are two idle LNG field in August 2015 shook up the en- tum that was not considered promising approved the two crucial decrees and ment’s Gas Framework Strategy, which plants that are unable to secure sup- tire East Mediterranean. Exploration now makes the region even more in- is now working on a hydrocarbon tax was devised in order to resolve regula- plies of Egyptian gas because of the work had fallen into something of a teresting to companies. law that once passed will enable the tory issues that had held up further growing demand for gas in that coun- slumber as low oil prices forced com- Laying just a few miles south of the country to proceed with a new bidding development of the Tamar field and try. Those plants, with a combined panies to trim down and avoid specu- Cypriot maritime border, Zohr round that is expected to generate also the giant Leviathan field where capacity of 12.2 million tons per year, lative investments. Domestic politics prompted the Cyprus government to considerable attention. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 12 Viewpoint Demand-side management Developing incentives for greater flexibility

ggregators, energy suppliers the provision of DSM. For instance, a Aggregators, and electricity network opera- high number of activations over the integrated utilities tors have demonstrated in a same year, especially if in quick suc- Carlot: battery A storage is few European countries their willing- cession, will create increasing pres- and end users ness to rely on end users’ flexibility to sure on the production operations for gaining more need to define their respond to grid needs. So far, this has an industrial and potentially offset a and more been done with great success but it is larger portion of the avoided costs popularity strategy to seize the still somewhat limited in scope. than desired. Appropriate valuation of business potential Demand-side management (DSM) the applicable mechanism is required is a flexible solution to ensure secu- in order to compensate the related that demand side rity of supply, which can bring tremen- costs and therefore to ensure an ap- dous value to transmission-system propriate level of participation. management (DSM) operators (TSOs) and an additional The majority of markets have de- offers as a flexibility source of revenue to other market veloped DSM mechanisms, though at players. However, understanding the very different paces. solution. However, needs and constraints of DSM provid- The US, supported by state regula- understanding ers is required in order to design the tors, is undeniably the leader in in- market in a way that will facilitate centivising DSM providers to par- the needs and and increase flexibility activation. ticipate in the market. Selected constraints of DSM The technical functionality is European markets have also em- straightforward – aggregators, indus- braced the importance of facilitating providers is required trials and even households can pro- their access to the energy market to in order to design vide additional capacity and energy to ensure security of electricity supply. the market, and be remunerated for it, With many energy systems “under the market in a way by adjusting energy demand when stress”, DSM penetration can and external signals are received. should be further stimulated. It not that will facilitate and Two types of external triggers typi- only helps TSOs to manage their net- increase flexibility cally create DSM activity: electricity works more effectively (e.g., deferred activation. system supply conditions and electric- reinforcement capex, decreased net- ity market prices. We identify four work losses, reduction in costly tem- Utilities, a UK Water company, stated industrial player. They ease market Kurt Baes and main mechanisms as the pillars of the porary isolated generation), but also that it expects to make £5 million in access for it and enable optimal lever- DSM market. enables utilities, aggregators and elec- Florence Carlot n revenue from DSM by 2020 by reduc- age of the know-how each party Wholesale and balancing mar- tricity users to capture extra value in ing power usage, including turning off brings to the table. kets: access to energy markets to sell/ the struggling electricity markets. pumps at its treatment works. REstore, In addition to the above recommen- buy energy during high or low price Unlocking this value-add requires a European aggregator, stated that pri- dations, infrastructural and technical periods. various initiatives at different levels. n mary reserve capacities can earn solutions in support of demand re- Grid and retail tariffs can vary Our experience and interactions with €180 000/MW per year in Belgium. sponse can be envisaged to facilitate depending on the time of day or sea- TSOs, aggregators and industrials al- Key actions to take (by TSOs, regula- reactivity and availability of assets. son. Shifting consumption away from low us to recommend four initiatives tors, aggregators, utilities) are: We distinguish battery storage as high-tariff periods can generate sav- to increase participation in DSM: n Inform and educate industrials one of the domains that is gaining ings for industrials and households. 1. Facilitating access to the DSM mar- n about additional revenue streams via more and more popularity across the System services: primary, sec- ket. Access to the DSM market must demand response and the economic energy value chain, and can be part ondary and tertiary control services be facilitated via attractive and fair value proposition. Indeed, industrials of the answer to decrease risks on the agreed between DSR providers and market mechanisms in order to im- active in the steel, paper, food & bev- DSM provider side and increase re- TSOs are designed to ensure security prove the participation of end users erage, water treatment, glass and sponsiveness. Alternatives such as of supply. and prevent discrimination between n other industries have high interests in distributed generation and electric Capacity markets: sufficient ca- actors along the energy value chain. reducing their consumption or shifting vehicles are other means to bring gen- pacity in the market is guaranteed This is one of the key barriers in those it to another time. Total, ArcelorMittal eration up or demand down to satisfy through contracts established before markets in which DSM penetration is and Tereos are examples of high en- grid constraints. Positioning and sub- the target delivery period, with remu- low. The main actions here for TSOs ergy consumers which became DSR sidies from the EU and regional neration based on the capacity made and regulators should be: n providers regulators are expected by various available. Treat demand-side management n Support companies in identifying market parties in Europe, and should There is no wrong or right mecha- on equal and transparent terms with adjustable manufacturing processes be part of the solution to facilitate and nism. Generators, aggregators and end generation in the provision of ancillary that are able to free up flexibility in the increase demand response usage in Baes: The value proposition users can choose to activate their flex- services and in capacity markets, and market when required grid balancing. needs to combine the ibility based on a price or a system- design specific mechanisms for DSR n Develop and tailor DSM products In conclusion, TSOs need to design additional revenues with need trigger. They will favour one providers (i.e. and not to adapt mech- and mechanisms that are adapted to a and propose a range of simple mech- proactively managing mechanism over another, depending anisms that were once designed for company’s operations to its risk ap- anisms adapted to their real needs, complexities and risks on their risk appetite, capabilities, and generation asset owners) n petite and the expected benefits; and to DSR providers’ constraints and overall ability to deliver. Rationalise the number of mecha- 3. Incentivising and triggering DSM expectations in terms of incentives, Even though there is an advantage nisms to limit overlaps and therefore activation through real-time price sig- with limited impact on operations and for participants in DSM to secure ad- cannibalisation, as well as to limit their nals. Real-time price signals are re- certainly not acting as a penalty for ditional revenues through contracts, proliferation. Today, it is often difficult quired to incentivise and trigger DSM the DSR provider. Another critical they can be significantly penalised in for demand-side providers to identify activation, but also need to integrate activity here is to educate the market case of non-delivery – a risk that which products are suited best to their and reflect those activations. This is in accordingly. should be minimised by aggregator operations n the hands of the market manager, At the same time, however, aggrega- interventions. Create viable and tailored products typically driven by TSOs: tors, integrated utilities and end users By contrast, with a price-incen- that enable aggregators (and their us- n Implement time-of-use tariffs to need to define their strategy to seize tivised response, load is adapted to ers) to unlock the real potential of incentivise shifting of consumption the “DSM business potential”. The market or network price signals show- demand response in the market n n Design wholesale markets (day- value proposition needs to combine ing risk of market exposure or imbal- Appropriately incentivise risks ahead and intraday markets) capable the additional revenues (upside) with ance costs. Participants will not re- taken by utilities and industrials n of sending real-time price signals for proactively managing complexities ceive any payment as such – their Develop specific value proposi- unlocking flexibility when required; and risks (technical and business con- reward is in avoided costs, which can tions to be put forward to the regulator 4. Collaboration of aggregators and straints). In this, an open-minded ex- be high. However, for industrial play- if room for demand response in the energy suppliers. Partnerships be- change with grid operators and re- ers the ability to reschedule production market has not yet been created via tween aggregators and energy suppli- gional regulators should aim to then processes in line with grid or energy regulation n ers can bring high added value, al- converge into a clear setting out of the tariffs is not guaranteed. Create alignment between market though their implementation will only requirements to facilitate DSM de- Risk monetisation is not the only fac- players on the baseline methodology be possible in the absence of conflicts ployment in regional markets. tor when flexibility providers are se- to be used to calculate the available of interest. Aggregators’ DSM techni- lect one DSM product over another. load reduction of a given resource to cal knowledge and their capacity to Kurt Baes is a Partner in Arthur D. Indeed, time response, duration of ac- respond to a need for flexibility; advise industrials on shifting or reduc- Little’s Brussels office and responsible tivation, load direction (up or down), 2. Teaching and helping industrials. ing the consumption of the produc- for the Operations Management Prac- frequency of activation per year and Although the benefits for industrials tion assets associated with existing tice in Benelux; Florence Carlot is availability of load are conditions are real, much more flexibility can energy supplier customer portfolios Manager at Arthur D. Little, Brussels which can constrain participation in be unlocked. For example, United work together to the advantage of the Area, Belgium. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Industry Perspective 13 Redefining grid efficiency

f a utility operator in the last integration will be the cornerstone of software applications to support ro- of a federation of networks that com- Once treated as quarter of the 20th Century were the future of distribution utility busi- bust and successful cross-vertical bine private and public infrastruc- to see into the future and catch a ness. It’s the core component of digi- business processes ture, and integrate standards-based, separate domains, I n glimpse of today’s energy technolo- tised mechanisms for asset manage- Leveraging the ubiquitous pres- open technologies such as IP with IT and OT are now gy, they would no doubt be amazed ment, grid operations and more. ence of the Internet for data monitor- existing proprietary, legacy solutions. by the proliferation and complexity Once treated as separate domains, ing and collection, to enhance scal- This integrated group of interdepen- intersecting to of different systems within utility IT and OT are now intersecting to ability. From information systems in dent communications systems will infrastructures. enable more efficient and reliable the enterprise to smart devices de- grow and evolve, and while interop- enable more efficient However, it’s likely they would utility operations, directed and em- ployed in the grid, the observation of erability standards have flourished, also be disappointed by the lack of powered by data. Open and interop- the network has never been easier. security continues to be a significant and reliable utility progress in the information systems erable solutions, including Schneider However, the process of asset data topic. and operational tools to accommo- Electric’s EcoStruxure platform, con- management can be complex due to With one connected network from operations. date new digital technologies. Prog- nect until now siloed software and multiple industry standards and regu- smart devices to control centre and ress has been made, but utilities are equipment using IoT technology to lations. Scalable tools across data key enterprise information (including Vincent Petit still some way off achieving digital manage collected, aggregated, sources and automated data filtering confidential customer data), archi- transformation. Take enterprise re- cleaned and enriched data to create is required to ease the process and tects must be well versed in cyber source planning (ERP) systems for value and optimise utility operations. free up operator time security protocols, standards, and example – we are still using the sys- OT represents a broad category of n Tapping into multiple data sourc- compliance rules. It is also critical tems that were installed in the 1990s physical infrastructure components es for improved visual situation that the software and systems used to manage physical assets, resulting and associated software that utilities awareness and usability. User inter- have been designed per the highest in limited access to the data model- depend on. It encompasses commu- faces are required to deliver more cyber security software engineering ling capabilities offered by modern nication capabilities used to monitor dashboards and graphics to present standards. There are also services power automation systems. and operate automated electrical an overview of the situation, as well available that assess the vulnerability So how fast can utilities move in equipment in real-time, as well as as identifying where more detail is state of the smart grid and control replacing enterprise systems? Utili- advanced simulation to guide crews needed. Interfaces can be fed by systems, recommending mitigating ties that embrace change too quickly in the field. OT systems also include multiple data sources to display past actions. risk investing in technologies that the software implemented in control trends with present patterns, along- Of course, the new grid-edge world can quickly fail, or can experience centres and power generation man- side the ability to simulate the future of utilities, with thousands of new short-term reductions in operational agement systems. state of the system. endpoints outside the sphere of physi- efficiency. While those that are too In contrast, IT encompasses all the 2. Commit to accurate network mod- cal control of the utility, does not slow off the mark will fall behind the related software and networking gear elling. Accurate network models are make securing the grid an easy task. rapid pace of technology deployment that allow machines to exchange in- essential for better operations, im- A comprehensive approach that con- and end up maintaining obsolete formation directly with humans, of- proved operator performance, the siders the entire network, targeting se- equipment with archaic systems at a ten within seconds. These include the safety of switching operations and curity, patch management, and com- higher cost and risk of failure. likes of enterprise resource planning crew works, and optimisation of the pliance, is needed to succeed in this New, improved systems that make (ERP), customer information sys- overall grid. When an outage occurs evolving and mixed environment. the most of the Internet of Things tems and billing, geographic infor- or an emergency switching operation Having addressed these three key (IoT) innovation will allow utilities mation systems (GIS), and customer is imminent, grid operators need an aspects for a modern asset manage- to manage their networks in a much relationship management (CRM) accurate network model. Model ar- ment and operation strategy, getting more flexible manner; and key inter- systems. chitecture must therefore include a the timing right is important for a national standards adopted by the in- Beyond IT/OT systems conver- design where a central master net- smarter tomorrow. dustry will facilitate this implemen- gence and IoT deployment, informa- work model (hosted by the GIS) is The architects of utility IT-OT tation. Modern electric utilities have tion-level interoperability is abso- shared and updated across all opera- systems will have some tough acquired multiple software systems lutely crucial to enable interactions tional systems, including the SCA- choices to make between upgrading to manage operational assets and within and among systems that DA, DMS, and OMS. legacy systems or replacing them support their key business processes. haven’t previously communicated The advantage of data modelling with newer, better systems. Prior to At the core, the convergence of in- with one another, with a wider vari- is that it provides a way to uniquely the advance of middleware, utilities formation technology (IT) and oper- ety of data, more components, and associate a physical component to had implemented point-to-point in- ational technology (OT) systems of- more applications. the data, which helps to avoid ambi- terfaces, which led to an unmanage- fers a means to support future-ready Stronger, more efficient, and better guity when exchanging information able system because of too much integrated business processes. Data automated distribution grids will rely between applications. It also pro- interdependency. on internationally recognised stan- vides a way to associate labels and Now the proliferation of adapters/ dards in terms of data models, data apply rules to help manipulate data. web services has created a level of integration, and open data and com- The process of maintaining a ‘sin- complexity difficult to manage by munication for smart grids and grid gle truth’ of the network is imple- the utility’s IT department and some- edge technology. It will also support mented through a workflow and the times not performing enough for the the increasing need for data ex- interoperability of the network model requirement of real-time operation. change with other actors involved in exchange is achieved thanks to CIM Enabling a new type of IoT frame- the power ecosystem, including standards. Data integrity is essential work that connects intelligent devic- TSOs, distributed generation opera- for this and the necessary steps must es with real-time control, open soft- tors, aggregators, and prosumers. For be taken to better share and make ware and analytics and services this reason alone, standardised data sense of data, across all IT and OT increases collaboration with all the models and interfaces belong at the systems. actors in tomorrow’s grid ecosystem core of a utility’s business. Distribution utilities benefit not to help the entire system work more For many utilities, there may be only from deploying IT, OT and IoT efficiently. some confusion as to where to start technologies that adhere to interoper- Globally, the need for reliable pow- with IT-OT integration. Three key ability standards, but also leveraging er has never been greater, but equally aspects should be addressed for a the comprehensive set of open stan- the established way energy is deliv- modern asset management and oper- dards for the power business, which ered is under threat. IoT technologies ation strategy: has been developed by the IEC TC57 have enormous potential for building 1. Create an architecture blueprint. committee. These standards are es- a cleaner and more reliable grid and By nature, the grid is an integrated sential for interoperability and sus- they are available to adopt today. system. Therefore, IT-OT systems tainability, and leverage both IEC Fortunately, the digital transforma- designed to represent the grid to op- 61850 and CIM as the two main pil- tion of utilities is helping us get erators, planners, and engineers must lars, which were initially created for there. IoT can become both a com- be integrated. Utilities must follow a substations and the grid. prehensive framework and guiding well-thought-out architecture blue- Their semantic data model is ex- path toward implementing new and print ahead of starting the implemen- tensible and agnostic from the com- innovative digital technologies to in- tation, which focuses on: munication network. This is a key crease the flexibility of grid opera- n Mapping business processes to pillar for an efficient and sustainable tions and make the entire grid eco- data and user workflows for greater integration and analytic develop- system, including the operator, more flexibility through workflow man- ment, and is complemented by IEC efficient and reliable. Petit: getting the timing right is important for a smarter agement software. This can bring the 62351 for cyber security. tomorrow vertical silos found in many utilities 3. Facilitate secure communication. Vincent Petit is SVP of Energy Auto- together in order to connect multiple An integrated IT-OT world consists mation at Schneider Electric THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 14 Energy Outlook Taking the risk out of solar PV he future looks bright for solar rodents; modules damaged during cally invest large pension funds for failures. Modules typically have 20 to The cost of solar photovoltaic (PV) projects as installation; module output cut by the the long term, might demand low 25 year warranties, with a guarantee PV has fallen Tsystem costs have fallen by failure of bypass diodes or junction risks and steady long-term income, of 80 per cent efficiency in the final more than 70 per cent since 2008 boxes; flooding; vandalism or theft of which could require regular and ex- year, but inverters do not last that long dramatically in and look likely to continue falling, modules; sunlight blocked by new pensive plant maintenance. Engineer- on average and will have to be re- even as efficiency and reliability buildings nearby; and module soiling ing, procurement, and construction placed or repaired at least once during recent years but have increased. by dust, bird droppings and pollen. (EPC) contractors want short warran- a PV plant’s lifetime. Solar Bank- Yet as the economics of PV and Numerous factors could negatively ties, no extra guarantees and low op- ability notes that integrated circuits as governments other renewable energy projects im- influence the operation of a PV plant erating costs. A utility might trade and optical components will on aver- prove, governments will feel freer to and could lead to a reduction [in] or, some PV profit against a larger share age last for 10 years, with electronic reduce feed-in tariffs, reduce their support, such as capital in the worst case, to complete yield of renewables in its portfolio, whereas components such as bus capacitors, subsidies, feed-in-tariffs (FITs), feed- losses, according to German firm home owners and other retail inves- switches and printed circuit boards all developers will need in premiums, tax credits and tradeable Solare Datensysteme (SDS), which tors might mix profit with environ- being affected by high thermal and green electricity certificates. makes the Solar-Log PV monitoring mental and self-reliance aims. electrical stresses. to look at ways to For example, the fixed power prices system. It said the failure of one or Risk reduction could include insur- Utilities’ large PV plants might have of FITs give renewables a low risk several inverters, cable damage, er- ance, typically for construction risks, as many as 3500 micro-inverters/ reduce risk. exposure, by shifting the cost of out- rors during installation or reductions poor weather and business interrup- MW, which Solar Bankability says put variability on to grid operators from one or several modules due to tion, although the latter might be are at risk of failure because of daily Vic Wyman and fossil-fuel generators. Some be- dirt and grime are only just a few covered by a plant’s operation and temperature cycling, as well as pre- lieve, however, that to spread the pain examples. maintenance (O&M) contractor. senting an O&M challenge. Badly and control costs, governments are Yet PV history has been too short to Caroline Tjengdrawira, Solar Bank- installed cabling and the use of many likely to switch increasingly to other provide enough long-term perfor- ability’s technical manager com- different types of connectors and poor forms of support. mance history to assess risks and mented: “Europe needs to build quality cable ties are high risks, it Swiss Re Group is a leading whole- costs, including risk mitigation costs. knowledge and understanding of the adds. Failures of sun tracking systems, sale provider of reinsurance. Its view However, the two-year Solar Bank- technical, and consequently the finan- data acquisition systems, medium- is that generators will likely be exposed ability project has been developing cial, risks over the lifetime of the PV and low-voltage cabinets and trans- to greater [electricity] market risk. PV project risk assessment methods, system and come up with targeted formers could all mean large losses of recommendations in order to increase output and large replacement costs. the trust of the investors.” Citing a 2016 study Solar Bank- Swiss Re believes the world is un- ability says that PV plant fault correc- Mitigation measures with medium, low and high cost scenarios likely to tackle climate change without tion costs increase exponentially – by a huge increase in PV funding. It said a factor of 10 at each step of a project. Mitigation measure Medium costs Low costs High costs new investors and sources of financ- Therefore, overall costs can be cut by ing are needed to deploy these rela- preventing defects during initial de- Component testing of €3/kWp €1/kWp €10/kWp (€0.5/kWp/year) tively immature technologies on a sign and planning, typically through PV modules (€0.15/kWp/year) (€0.5/kWp/year) larger scale, noting that attempts by testing and qualification of compo- Design review and €20/kWp €10/kWp €40/kWp (€2/kWp/year) plant owners to sell debt or equity will nents and design reviews. It adds that construction monitoring (€1/kWp/year) (0.5 €/kWp/year) add to the demand for finance. even residential and small PV systems To quantify costs, Solar Bankability, should use qualified/certified EPC Qualification of engineering, €3/kWp €1/kWp €10/kWp (€0.5/kWp/year) a project funded by the European firms able to match components to procurement, and (€0.15/kWp/year) (€0.05/kWp/year) Commission’s Horizon 2020 pro- location, humidity and altitude and to construction firms gramme, has collected data from more understand load-profiles for self- Advanced monitoring system €2/kWp/year €1/kWp/year €3/kWp/year than 700 PV plants with a total 420 consumption or PPAs. MWp capacity. Those plants have Solar Bankability puts overall plant Basic monitoring system €0.5/kWp/year €0/kWp/year €1/kWp/year about 2.4 million components, includ- operating expenses at about €65–75/ Advanced inspection €2/kWp/year €1/kWp/year €3/kWp/year ing about 2 million PV modules and 12 MWh/year, with insurance at €4 - 6/ 000 electrical inverters. Solar Bank- kW/year. TÜV Rheinland Energie Visual inspection €1/kWp/year €0.5/kWp/year €2/kWp/year ability has also analysed repair and suggests that the best combinations of Spare part management €10/kWp €2/kWp €20/kWp (€1/kWp/year maintenance costs from more than three preventative measures (compo- (€0.5/kWp/year) (€0.1/kWp/year) 3500 European insurance claims. nent testing, design reviews and EPC One difficulty has been that PV qualification) could reduce a -refer Source: Solar Bankability component manufacturers and plant ence plant O&M cost of €104/kW/ operators usually keep their perfor- year by 90/kW/year. mance data secret. Any data from the Mauricio Richter, PV Expert R&D The USA’s production tax credit, to pin down the economic impact of early days of PV plants may also be at Belgian consultancy and software for example, exposes projects to failures on the levelised cost of elec- poor or poorly understood. firm 3E, and Solar Bankability part- competition and has led developers tricity (LCOE) and on PV business Solar Bankability addressed prob- ner, says that the best combination of to sign power purchase agreements models. lems at all project stages, including: mitigation measures could improve (PPAs) to ensure a predictable in- The project, which ends in February component development and testing; LCOE by four per cent. come. In capacity auctions, successful 2017 and is funded by the European planning; transportation and installa- Plant owners must weigh the cost of developers receive their bid prices. Union’s Horizon 2020 research and tion of parts; O&M; and decommis- different O&M options against the Swiss Re warns, however, that the development programme, has been sioning. “All these risks should be risks. Plants need less attention than developer needs to have a very good developing a framework for calculat- clearly defined. You can save a lot of conventional power plants, yet even understanding of their expected con- ing planning uncertainties and a money if you apply the right mitiga- the low-technology measure of clean- struction and operating costs, and commercial risk modelling tool that it tion measures,” noted Ulrike Jahn, ing modules is often a condition of mistakes can prove very costly. says is a world first. Senior Expert, TUV Rheinland Ener- manufacturers’ and installers’ war- PV installations could be unable to However, the approach must allow gie GmbH and Solar Bankability ranties, according to the UK firm sell their output because of inade- for the different risk appetites and partner. Clean Solar Solutions. quate grid capacity, as building grid assessment approaches of investors, To produce practical results, Solar However, the effects of lack of Top 10 risks for PV modules of transmission lines typically takes lenders and insurers. Bankability focused on four types of maintenance and poor design and all systems. The cost priorty decades. According to Swiss Re, investors PV plants; residential (10 kWp or construction in the past are becoming number (CPN) rates risk and Projects also face many technical might demand long equipment war- below), commercial (10 - 250 kWp), evident in today’s ageing PV plants. is the sum of the other two risks, from design through to decom- ranties, performance guarantees, low industrial (250 - 1000 kWp) and util- Vassilis Papaeconomou, the new parameters. missioning, including: PV cell glass capital costs, low operating costs and ity plants (above 1000 kWp). head of the O&M Task Force of trade Source: Solar Bankability brokenModules by hail; - cabling top 10 damaged risks by long lifetimes. Insurers, which typi- Applying a cost priorty number association SolarPower Europe and (CPN) to rank risks, it found the Managing Director of Italian O&M 18,00 dominant risks for modules, for ex- firm Alectris said: “Such adverse ef- 16,00 Overall cost of repair / ample, included: breakage of PV cell fects are heavily impacting the gener- 14,00 substitution per year [€/kWp] glass; potential-induced degradation; ated revenues of solar assets and cre- and “improper” installation as a re- ating a lot of headaches for investors 12,00 Missing production per year sult of mishandling, damage to and lenders. 10,00 [€/kWp] module frames and bad clamping of “O&M was considered as a ‘check- 8,00 CPN per year [€/kWp] modules. Falling module prices, the box’ to achieve financing and was difficulty of repairing modules and initially perceived as a burden by the CPN in [€/kWp] 6,00 the invalidation of manufacturers’ EPC contractors, a pure cost centre 4,00 warranties if repairs are carried out for the owners and a formal necessity 2,00 often makes module replacement the from the lenders.” 0,00 favoured option, says Solar Bank- A best O&M practice guidelines, Improperly Glass PID = Snail track Detective Delamination Hotspot Soiling Shading Failure ability. However, warranties usually including for activities such as do not cover the cost of installing installed breakage Potential backsheet bypass diode claims management, training and replacements. health and safety issued by Solar- Induced and junction box Past studies have found that invert- Power Europe will go some way to degradation ers are the main source of PV system helping developers. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Technology 15 Redefining wave power

rom a eureka moment in the “Studies show that wave energy is the idea to wave energy research along. The opportunity bath to the observation of an five times more concentrated than centres like WavEC Offshore Re- “Historically we’ve seen many de- presented by wave Fapple falling from the tree, in- wind and 10 times more concentrat- newables in Lisbon and NTNU in velopers ramping quickly to full- spiration often strikes at the least ex- ed than solar. In fact, wave energy Trondheim, they agreed that we were scale devices being tested in the power is significant. pected moments. For Dr. Stig Lund- could supply 10 per cent of global on to something. We have been ocean – where such devices typically bäck, a cardiologist from Stockholm, energy demand – or four times the working with their research groups haven’t survived or have shown poor TEI Times reports it was the pumping mechanisms of installed capacity of nuclear energy ever since.” power performance. That’s been a the human heart that led to his idea today. That wave energy has not CorPower Ocean’s wave energy painful learning in this sector. There on the WaveBoost for a viable wave energy converter. achieved its potential is our big op- converters comprise a buoy on the are no short cuts – you can’t build A serial inventor and holder of portunity,” said Johansson. surface of the sea that is connected and scale before basic principles of project, a three- more than 100 patents, Lundbäck un- “Anyone concerned with develop- to the seabed by a taut mooring line, hydrodynamics, system stability and derstood the gap between a good ing wave energy in Europe will look and which absorbs energy from the robustness have been proven.” year innovation idea and a feasible technology. He to the Atlantic coast of France, Spain combined surge and heave motion In accordance with this philosophy, eventually secured the support of In- and Portugal, or the waters around of the waves. A pneumatic pre-ten- the CorPower device has been programme noEnergy – the innovation engine for Scotland and Ireland and see enor- sion module runs between the moor- through a number of iterations since sustainable energy. mous possibilities – but until now, ing line and the buoy, creating a the first bench-top prototypes were targeting significant “We were immediately interested have not seen the technology to har- system with high natural oscillation developed. The concept was first because wave energy remains the vest it.” frequency that is smaller and lighter validated in 2012 on a 1:30 scale improvements in last great untapped source of cost-ef- The possibilities inherent in wave than conventional gravity-balanced model with €500 000 funding. Wave fective renewable energy,” says Ken- energy is what has driven the product converters. tank and HIL tests were performed the reliability and neth Johansson, InnoEnergy’s CEO development of CorPower – from an While CorPower was developing with WavEC, NTNU and KTH on performance of wave in Stockholm. “Although we have initial concept to the creation of a the product, researchers at Trond- 1:16 to 1:3 scale prototypes, with a seen commercially viable technolo- company that is preparing to launch heim University invented an innova- further €1.7 million. energy converters. gies for harvesting tidal energy a complete prototype system later in tive phase control technology, which CorPower has just started dry test- emerge, realistic solutions for taking 2017. Following positive assess- CorPower and NTNU agreed to co- ing a half-scale device in a custom- advantage of wave energy are much ments of the initial technology by In- develop. Known as WaveSpring, the built test environment that emulates rarer. Dr Lundbäck’s concept was a noEnergy and various external ex- patented control system makes the wave impacts on the device to prove significant advance on other technol- perts, CorPower Ocean has been able buoy inherently resonant over a reliable operation up to full storm ogies, so we arranged for our busi- to develop the wave energy convert- broad range of wave periods. It am- and mechanical loading. In the sec- ness coaches and technology experts er concept into a practical, feasible plifies the motion of and power cap- ond half of the year, ocean testing to evaluate it both technically and and competitive product. ture from regular waves, while al- will begin at EMEC’s Scapa Flow economically.” Patrik Möller, CEO of CorPower lowing the system to be naturally site in Orkney, with project partners The opportunity presented by wave Ocean explained the challenges of ‘de-tuned’ during storm conditions. Iberdrola, EDP, University of Edin- power is significant. More predict- bringing a viable wave energy tech- Tank testing has shown that the buoy burgh, WavEC and EMEC. After able, consistent and controllable than nology to market: “Many smart peo- can survive waves of up to 32 m completing this Stage 3 programme either wind or solar power, with the ple have tried to develop wave ener- without excessive load on the struc- the company aims to start work on right infrastructure in place, it could gy converters, but to date no one has ture. This significantly improves the the next Stage 4 pilot together with be a sustainable alternative for sup- succeeded in making it a commercial system’s ability to survive in harsh leading partners of the sector. plying base load power. It also has a product. The challenge is to have a conditions and so lengthens its pro- Throughout the Stage 3 pro- very low impact, that neither disturbs device that is robust enough to sur- ductive lifecycle. After proving the gramme, CorPower has attracted CorPower Ocean’s wave aquatic life nor spoils the coastal vive a tough ocean environment WaveSpring technology with Cor- funding from the Swedish Energy energy converters comprise view that prompts so much ire from while generating enough revenue Power, the NTNU inventor Jörgen Agency and Wave Energy Scotland, a buoy on the surface of the the public. over time to make it a viable busi- Hals Todalshaug joined the company in addition to InnoEnergy. A new sea that is connected to the Wave power also fits within the ness case. as Lead Scientist. programme named WaveBoost, sup- seabed by a taut mooring line, new energy framework being creat- “To date, most concepts have either In addition, a proprietary, highly ported by EC’s Horizon 2020 fund- and which absorbs energy ed by distributed energy resources failed the durability test – they durable drive train is responsible for ing, was recently started to further from the combined surge and and off-grid applications. Although couldn’t cope with storm conditions transforming amplified linear motion develop innovative concepts that can heave motion of the waves. A major utilities, particularly those – or their size and weight made them into rotation motion. Because the be introduced at the point of market pneumatic pre-tension mod- with extensive offshore wind port- too expensive compared to their en- cascade gear divides a large load introduction, without disrupting the ule runs between the mooring folios, are likely to be the major de- ergy output. onto a number of smaller gears – architectural design that has been line and the buoy, creating velopers of wave energy farms, sin- “The more we explored, we rea- much like a planetary gearbox – it is tested. a system with high natural gle installations can also serve more lised there was a significant and prin- capable of providing high-power Möller is confident about CorPow- oscillation frequency that remote, smaller island-based or ciple difference in the way the Cor- density. As a result, CorPower avoids er’s prospects: “All the testing and is smaller and lighter than coastal communities – and even Power device can harvest wave the poor efficiency associated with prototyping shows that the technolo- conventional gravity-balanced tourist resorts – particularly in de- energy and overcomes these reliabil- the hydraulic power drive trains that gy can generate five times as much converters veloping economies. ity problems. In 2012 when we took typically feature in wave energy con- energy per tonne and three times as verters, as well as large and expen- much energy per force compared to sive linear generators that reduce previously known solutions to har- competitive devices’ power rating. vest wave energy. We’ve also been To eliminate the peaks and troughs able to design it to be robust, com- of power supply, the buoys incorpo- pact and significantly lighter than rate a dual set of flywheels/genera- traditional models, so installation, tors that provide power absorption service, maintenance and decommis- and temporary energy storage. These sioning are much easier – giving a generators and the power electronics low OpEx per kilowatt.” behind them are based on standard Möller acknowledges that develop- components used in the offshore ments in subsea power cabling and wind industry. Finally, a programma- related technologies in both the off- ble logic controller is located inside shore wind and oil and gas sectors, the device to allow the buoy to oper- are also contributing to an increasing- ate autonomously, while an interface ly favourable technological and com- enables remote control and data ac- mercial environment for wave power. quisition by onshore engineers over “There is an extent to which we are fibre and a radio-link. piggy backing on the developments Tests show that the technology de- made in offshore wind,” he ex- livers optimal performance at sea- plained. “But the trajectory is very depths between 50 and 100 m. different. Wind turbines have been According to Möller, CorPower’s optimised over 30 years to achieve success can also be attributed to its 10 megawatt hours per tonne of de- development approach as well as its vice. Our device aims to show a sim- innovative technology: “We are one ilar level of structural efficiency of the first wave energy companies within five years. We anticipate that to strictly follow a structured verifi- this will allow the technology to be cation approach set by the IEA-OES competitive with most advanced and Wave Energy Scotland. We start- wind and solar implementations after ed on a small scale to prove the reli- reaching a moderate installed base, ability and performance of the differ- and better than nuclear, oil and coal.” ent pieces of the technology and If all goes according to plan, 2017 gradually scaled up, securing fund- could be the year that wave energy ing for further tests as we went finally comes in from the deep. THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 Final Word 16 Master of the tide or master of disaster? gainst all the odds, Donald climate leadership position. America’s economic rivals. an obligation but also an opportunity. Junior Isles Trump finally made it into the China is already home to five of the “China is snapping at America’s McKenna noted: “The conversation AWhitehouse – still sounding top six solar panel manufacturers and heels and is ready to take its mantle is no longer limited to the NGOs and his clarion call to “make America great five of the top 10 wind turbine makers. as the most pro-active, low-carbon governments. It has gone far beyond again”. While his mantra might be In early January, it pledged to invest superpower.” that. It’s now the business sector, fi- understandable, some of the methods Yuan2.5 trillion ($360 billion) in re- He argued that it is in America’s nancial institutions, etc. he is proposing to achieve his objec- newable energy through 2020 to re- interest for President Trump to take “I have had so many bilaterals with tive are questionable at best. duce greenhouse gases. climate change seriously. Apart from businesses and companies who are Under former President Barack Certainly China’s air quality is play- the economic benefits, a recent study saying ‘yes we have an internal price Obama, the US had largely won the ing a role in government planning but by the University of Massachusetts on carbon’. Many good companies are respect of the global community in its clean energy ambitions extend be- showed that parts of the US are ex- looking at how they find opportunities terms of its energy policy and cham- yond its own borders. In 2016 China pected to warm much faster than the but also how do they manage risk… I pioning the climate change drive. spent a record $32 billion on renew- global average. see this as a huge opportunity, so that’s That all looks set to change under able projects abroad. Climate change is a top tier geo- why Canada has stepped up. Pricing President Trump. Global leadership on According to Bloomberg New En- strategic issue and the international pollution is a way to actually prepare tackling global warming now seems ergy Finance, its total investment in community needs to be united in its our economy to make it more attractive more likely to come from countries renewable energy reached almost $88 commitment to tackle it. Carbon is not for investors. I’ve actually had so that would have just a few years ago billion, the highest in the world and a typical ‘commodity’ that is produced many companies come to us and say been seen as unlikely candidates. one third more than the US. Further, and consumed in the same geographic ‘we like what’s going on in Canada’ The recent World Economic Forum the green transition has boosted em- area. This is one of the reasons we need because you’re providing certainty to in Davos, Switzerland, highlighted ployment. Reuters reports green a global solution. the market.” just how much the landscape has technology investment will spark the Speaking in Davos at a special debate It is a far cry from the noises that have changed in terms of climate leader- creation of 13 million Chinese jobs. on carbon markets, Douglas L. Peter- been made by President Trump, who ship. Speaking as the first Chinese By contrast, roughly 10 million jobs son, President and Chief Executive is doing little to ease the concern of President to attend the summit, Xi across all industries have been created Officer, S&P Global said: “Carbon is international clean technology inves- Jinping showed how China is increas- in the US since the 2008 recession. not like many other products. It can be tors. His isolationist rhetoric on trade ingly taking a global leadership role These are numbers that President produced in one place but the impact – prompted President Xi to say: “Pursu- in combatting climate change. Trump should take note of. Christian the ‘consumption’ so to speak – goes into ing protectionism is like locking one- While Trump stayed away, President Aid’s International Climate Lead, the air and it becomes a global issue.” self in a dark room. While wind and Xi took the spotlight and, without di- Mohamed Adow urged him to follow It is for this reason that many argue rain may be kept outside, that dark room rectly mentioning him by name, urged his business instincts and not “squan- that a global carbon price – in the re- will also block light and air. No one will climate change naysayer President der America’s hard fought pro-climate gion of $40-50 per tonne of CO2 – is emerge as a winner in a trade war.” Trump to keep the US in the Paris diplomacy”. needed to induce the right behaviour. Indeed, his protectionism will do Agreement. He said: “Donald Trump is always At the same debate, Catherine nothing to help the US take advantage During his speech he said: “The telling us how smart he is. Well the McKenna, Minister of Environment from the burgeoning clean technol- Paris Agreement is a hard-won smart thing to do on climate change and Climate Change said that “putting ogy sector. In an interesting report, the achievement… All signatories should is to listen to the scientists and busi- a price on pollution” instead of “put- UK’s Guardian newspaper inter- stick to it rather than walk away.” nesses and ensure America is ready ting a price on carbon” has worked viewed more than a dozen leading If Trump follows through with his to capitalise on the growing low well in Canada. global voices on climate change in the threats to “rip up” the Paris Agreement, carbon revolution that will help make She said the Paris Agreement was a run-up to Trump’s inauguration. it will only leave the way open for it great again. If he doesn’t he will signal to the markets, observing that “The best way to make America great China to further strengthen its growing hand the next industrial revolution to addressing climate change was not just again is by owning the clean tech- nologies of the future,” said Michael Liebreich, who has advised the UN and World Economic Forum on en- ergy. “Not only will this create count- less well-paid, fulfilling jobs for Americans, but it will also lock-in the US’s geopolitical leadership for an- other generation.” Meanwhile, John Schellnhuber, a climate expert who has advised An- gela Merkel, the Pope and the EU said: “I would say [to Trump], if you want to make China great again, you have to stay the course you have promised.” President Trump, who has called global warming a hoax created by the Chinese, appears to have softened his stance a little since his election win, saying there is “some connectivity” between human activity and climate change. However, he also claimed climate action was making US com- panies uncompetitive. Above all President Trump has to realise we live in an interconnected world and that he cannot turn back the clock; the clean energy surge is in full flow. He may want to build “a big beauti- ful wall” along the Mexican border, which may stop the less determined potential immigrants but that will not hold back climate change. New data released last month revealed that temperatures rose to their hottest on record for the third year in a row in 2016 and that global temperatures have already soared more than 1°C since pre-industrial times – halfway to the 2°C considered a crucial ceiling under the Paris deal. King Canute once demonstrated that he had no power to hold back the tide. Cartoon: jemsoar.com President Trump will no doubt find the same applies for climate change.