THE ENERGY INDUSTRY March 2012 • Volume 5 • No 1 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES Renewable pursuits Smart response Final Word Minister Dr Farooq Abdullah The Energy Efficiency Directive can Junior Isles talks of explains why India’s renewable promote demand side management wind pains. targets are achievable. and help realise the smart grid. Page 13 Page 14 Page 16 News In Brief China faces import tariffs The trade dispute between China and the USA heats up as the US US wind industry government’s investigation draws to a conclusion. Page 4 NTPC ruling throws lifeline to flagging five-year plan India’s faltering 12th Five-Year threatened by Plan was given a boost after the National Thermal Power Company won a court order against a lawsuit challenging its tendering process. Page 6 tax credit French nuclear industry needs massive investment France will have to spend billions of euros to bring its nuclear energy fleet Martha Wyrsch urged up to tough new standards. an extension of the Page 8 withdrawal Production Tax Credit Germany accelerates FITs cuts Uncertainty surrounding support for With the withdrawal of a tax credit, the US wind industry is looking at a dramatic slowdown in renewable energy continued after the German government 2013. Junior Isles announced changes to its feed-in tariff scheme. The withdrawal of a tax credit for wind wind turbines. Vestas officials have power credit on behalf of Vestas “Wind energy has grown dramati- Page 9 power production at the end of the year been seeking a multi-year extension of American Wind Technology, which cally in the past several years, creating could result in massive layoffs and a the tax credit as a way to ensure future has four wind turbine plants in a manufacturing renaissance in the UNEP calls for sustainable delay or abandoning of projects. sales, but Congress has been authoris- Colorado. US, and the PTC has been a significant energy boost in Africa The move is expected to have major ing the credit year to year. It is esti- In December Martha Wyrsch, driver in that growth. The jobs at stake, The United Nations Environment ramifications in states such as Illinois, mated to cost the treasury about $3.5 president of Vestas American Wind which include 20 000 people in the US Programme has called on where 13 892 MW of wind projects are billion a year. Technology, Inc., gave testimony to wind industry’s manufacturing sector governments in Africa to open up awaiting connection to the grid. It was thought there would be little the U.S. Senate Finance Subcommittee and technical jobs throughout rural their energy sectors to private sector Illinois, which benefits from strong opposition to continuing the tax credit on Energy, Natural Resources & America, are skilled-labour positions investment in order to unlock its midwestern winds, is home to more and the decision by a House and Senate Infrastructure to urge an immediate with competitive wages and medical massive renewable energy potential. than 150 companies that support the conference committee to leave the tax extension of the Production Tax Credit and retirement benefits.” Page 9 wind industry. At least 67 of those bill out came as a surprise. (PTC). Wyrsch warned that if the PTC is not companies make turbines or The outcome left a Colorado “An extension of the PTC is neces- extended, hundreds wind industry Fuel Watch: Algeria to boost components for wind farms. congressional delegation scrambling sary for the continued employment of suppliers in the US employing The wind power credit provides a 2.2 for a new strategy – along with a new the 80 000 people working in the U.S. gas production with Repsol Continued on Page 2 deal per cent tax credit for the purchasers of legislative vehicle to carry the wind wind industry,” said Wyrsch. Algeria is allowing Spain’s Repsol to proceed with the development of the North Reggane project. Page 12 Path cleared for offshore wind Technology: A leap forward The completion of a study examining companies to specify which tracts they study under President Obama’s “all- right places, where the wind energy for solar thermal panels how offshore wind development might want to lease. of-the-above” energy strategy, outlined potential is significant and where A new, high-vacuum flat collector at would affect the US Mid-Atlantic Unlike Europe, which is experiencing during January’s State of the Union environmental effects and conflicts Masdar City could change the solar Coast essentially clears the way for huge growth in offshore wind instal- address. “When it comes to powering with other uses can be minimised and industry. wind farm lease sales off the coasts of lations, especially in the UK, the US our nation’s homes, businesses and managed.” Page 15 Delaware, Maryland, New Jersey and has made no progress in establishing economy, we need to take an all-of- Since the new environmental study Virginia. offshore projects. It expects this to the-above approach to safely and was broad, he said the BOEM will A recent study by the Interior change soon. Cape Wind – a 420 MW responsibly developing our domestic conduct further site- and project- Department concludes that it threatens project with 130 turbines in energy resources,” Salazar said. specific analysis before issuing “no significant environmental and Massachusetts’ Nantucket Sound – Obama’s plan involves 10 GW of permits. socio-economic impacts” and says has already received federal approval, offshore wind generating capacity by Deputy Interior Secretary David Advertise lease sales could begin by the end of and construction could begin this 2020, and 54 GW by 2030. Hayes described the Mid-Atlantic as a [email protected] this year. year. Bureau of Ocean Energy Management “sweet spot” for tapping offshore “Offshore wind holds incredible Meanwhile, construction of a smaller (BOEM) Director Tommy Beaudreau winds and called the latest potential for our country, and we’re project in Rhode Island – Deepwater said at the beginning of February: “We announcement an early step in build- Subscribe moving full-steam ahead to accelerate Wind’s 30 MW Block Island project are moving toward commercial-scale ing “a world-class offshore wind [email protected] the siting, leasing and construction of – is planned to begin in 2013 or 2014. offshore wind energy leasing in the industry”. new projects,” Interior Secretary Ken Other companies, including Apex mid-Atlantic and adding the necessary This was echoed by the American or call +44 208 523 2573 Salazar said in a statement. Wind Energy and Fisherman’s Energy, tools to offer those leases. Wind Energy Association, which On top of unveiling the environ- are also jockeying for space on the “We considered public input and called the move “a significant mile- mental assessment, the department Mid-Atlantic Coast. conducted a thorough analysis to stone in efforts to launch a vital new also formally asked wind power Salazar announced the results of the ensure future projects are sited in the American offshore wind industry”. 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 - MARCH 2012 2 Headline News Continued from Page 1 thousands of people also would be affected. That warning was drafted into a delegation letter that was sent to the House and Senate conferees Vogtle approval underlines in January. There is still a possibility the extension for wind power tax credits could come through as a stand-alone bill or tied to other “importance” of nuclear legislation. Reacting to the setback, The approval of two reactors at the Vogtle plant demonstrates the continued Democratic Sen. Michael Bennet drafted a wind power amendment importance of nuclear in the US future energy mix. he wants the Senate to attach to a transportation bill that is currently pending in the House. Sen. Mark Udall, also a Democrat, Junior Isles Construction and Operating License the plant despite objections from the claiming that Southern Company is drafted a letter to both Democratic (COL) for Plant Vogtle units 3 and 4, Nuclear Regulatory Commission keeping US taxpayers in the dark by and Republican leaders in the US Department of Energy Secretary the first such license for a US nuclear chairman, who cited safety concerns covering up details of 12 sizeable Senate, urging them to support a Dr. Steven Chu says that nuclear power plant. resulting from Japan’s 2011 Fukushima construction “change order” requests vote on the wind power amend- will continue to be an important part of Commenting on the approval, Georgia disaster. that are expected to add major delays ment when the transportation bill the energy mix in the United States and Power’s CEO W. Paul Bowers said: NRC Chairman Gregory Jaczko said: and cost overruns. arrives. around the world. “Not only will the addition of units 3 “I cannot support issuing this license The groups are calling on the DOE to However, Washington insiders Following the approval of two new and 4 provide our customers with as if Fukushima never happened. I insist on full disclosure of the Vogtle say it is unlikely that anything will reactors at Vogtle – the first in the US clean, safe, reliable and affordable believe it requires some type of delays and cost overruns before the in 30 years – Chu told workers at electricity, but this project is putting binding commitment that the federal agency moves ahead with a Southern Company subsidiary Georgia people to work. The Vogtle investment Fukushima enhancements that are cur- $8.33 billion taxpayer-backed federal Power’s Plant Vogtle that nuclear is expected to create 25 000 direct and rently projected and currently planned loan guarantee that has been offered to power is “an important part” of indirect jobs, including 4000 to 5000 to be made would be made before the Southern and its partners as an incentive.