THE ENERGY INDUSTRY August 2017 • Volume 10 • No 6 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES Special Incentivising energy Supplement storage Final Word The IEA’s World Energy With digitalisation and The success or failure of storage Investment 2017 reveals a slump decentralisation becoming more programmes in the US may inform the in global energy investment but widespread in the energy sector, decisions of other regulators as they there are reasons to be cheerful, cyber attacks are on the rise. formulate their own policies. Page 14 says Junior Isles. Page 16 News In Brief UK support for storage seen as “game changer” Electricity sector The UK has moved to shake-up the way electricity is produced, used and stored with the announcement that it will invest £246 million in battery technology over the next four years, alongside new reforms investment to govern a flexible energy system. Page 2 Australia split over energy recommendations overtakes A set of recommendations aimed at delivering a blueprint for the future of Australia’s electricity market policy has split the country’s Coalition government. Page 5 oil and gas Varro: wind and solar have been doing “very well” Dutch aim for subsidy-free wind farms The Netherlands is to hold an The electricity industry is leading global energy investment as the sector continues to auction for 700 MW of offshore transform to low carbon generating sources. wind energy capacity for Junior Isles developers interested in building the developments without subsidy Electricity sector investment has over- investment worldwide was around area of electricity spending. Although the IEA’s Chief Economist said: “The support. taken investment in oil, gas and coal $1.7 trillion in 2016, 12 per cent lower renewable investment fell 3 per cent biggest area of power generation in- Page 6 supply for the first time, driven by the than 2015 in real terms. The lower to $297 billion, it will generate 35 per vestment is renewable, low carbon global clean energy push and a contin- investment is largely attributed to cent more power thanks to cost de- generation. Wind and solar power ued drop in upstream oil and gas spend- lower costs in sectors such as wind clines and technology improvements have been doing very, very well and AES, Siemens exert ing. The International Energy Agency and solar PV, as well as in upstream oil in solar PV and wind. 2016 was a record year. We can ex- influence in storage sector (IEA) noted, that the electricity sec- and gas. The report finds that progress in pect 200 TWh of electricity from the AES and Siemens have become the tor’s share (including networks) in Global electricity investment was technology and project management wind and solar investment [made] in latest companies to seal a strategic overall energy investment – grew 12 nearly flat (down just 1 per cent) at are driving down solar and wind costs, 2016.” deal in order to gain traction in percentage points in 2016 to 43 per $718 billion, with growing network reflected in low generation contract Coal fired generation, however, con- the growing global energy storage cent of the overall energy spend. spending mostly offset by fewer coal prices. Solar PV unit capital costs fell tinued to suffer with Laszlo saying market. According to the World Energy In- fired power plant additions. 20 per cent in 2016, partly offsetting a that the days of coal as a major power Page 9 vestment (WEI) 2017 report launched Notably, investment in renewable- 50 per cent rise in additions. generating source were numbered. by the IEA in mid-July, total energy based power capacity was the largest Launching the report, Laszlo Varro, Continued on Page 2 Energy Outlook: Renewables change landscape for gas Although the current market outlook for gas fired generation is at a low in Europe, generators can G20 stands firm on climate pact help themselves by valuing their flexibility and adjusting their trade Despite the US withdrawal from the vour to work closely with other coun- the US decision to quit the global for Growth at the meeting. It calls for strategies in a market increasingly Paris Agreement, all of the other G20 tries to help them access and use fossil deal to demand more money from continued efforts to mobilise private dominated by renewables. members maintain the climate accord fuels more cleanly and efficiently.” wealthy nations. sector investments in renewable en- Page 14 is “irreversible” in a joint statement The German chancellor, Angela More than 150 countries have for- ergy and to tackle the challenge of issued after last month’s summit in Merkel, said she “deplored” the US mally ratified or joined the accord that integration of greater volumes of Hamburg, Germany. exit from the agreement and added came into effect last November but green energy into the energy systems. Technology: Frequency After lengthy negotiations, the final that she did not share the view of Brit- Turkey is one of around 40 nations yet The document also says that the en- response goes offshore joint statement noted US President ish Prime Minister Theresa May that to take such a step. ergy transition should happen not A wind-battery storage hybrid Donald Trump’s withdrawal from the the US could decide to rejoin the Turkey’s President, Recep Tayyip only in power generation but also in system being installed at the Paris deal while stating that the pact. Erdogan, surprised G20 summit the heating and cooling, transport, and Burbo Bank offshore wind farm is world’s other major economies all The strongest proponents of the cli- members when he told reporters his industry sectors. expected to pave the way for rapid still support the international effort to mate deal, including Merkel and the country may be less inclined to ratify The action plan notes that flexibility frequency response services to slow dangerous global warming. French president, Emmanuel Macron, the Paris agreement following the US options such as interconnection and ensure grid stability. The communiqué stated: “We take have attempted to shore up support decision, suggesting it could jeopar- transmission capacities, demand side Page 15 note of the decision of the United for the Paris deal among countries fol- dise funds promised to developing management, smart grid technology States of America to withdraw from lowing Trump’s decision to exit the countries. and energy storage, among others, are the Paris agreement,” adding, “The agreement. Saudi Arabia and Indone- Barbara Hendricks, Germany’s en- key elements of a reliable and resilient leaders of the other G20 members sia were reportedly considering wa- vironment minister, downplayed Er- energy system. G20 members say Advertise state that the Paris agreement is irre- tering down their commitment to the dogan’s remarks saying “it’s about they will also work to improve the [email protected] versible” and “we reaffirm our strong deal but they ended up reiterating access to international financial functioning, transparency and com- commitment to the Paris agreement”. their support at the G20 summit. mechanisms”, rather than a funda- petitiveness of gas markets, as natural The US did, however, successfully During the summit, Germany mental rejection of the Paris accord. gas also has a role to play in the en- Subscribe [email protected] manage to insert text referencing fos- played down a threat from Turkey to The leaders of the world’s 20 ergy transition, including for provid- or call +44 208 523 2573 sil fuels which read: “The United abandon the Paris Agreement amid wealthiest economies also released ing increased flexibility for the inte- States of America states it will endea- fears that countries could start using the Climate and Energy Action Plan gration of variable renewable energy. THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: [email protected] THE ENERGY INDUSTRY TIMES - AUGUST 2017 2 Headline News Continued from Page 1 As the world’s largest energy in- vestor, China saw a 25 per cent de- cline in coal fired power investment last year and is increasingly driven by clean electricity generation and UK support for networks, as well as energy effi- ciency investment, said the report. China’s focus on energy efficien- cy reflects a growing global trend. Investment in energy efficiency rose 9 per cent to $231 billion with storage seen as China being the fastest growing region, accounting for 27 per cent of the total last year. At this rate, China could overtake Europe as the leading spender on energy effi- ciency within a few years, says the “game changer” IEA. India became the fastest growing major energy investment market n Government to invest £246 million in battery technology with spending up 7 per cent, thanks to a strong government push to n Ofgem to introduce new rules modernise and expand the power sector. The report also highlighted the Junior Isles for battery technology, but for the hand- “These technologies give us [the] energy consumption according to ongoing challenges facing the oil brakes to be taken off we need to see flexibility to run on solar when the sun electricity price and availability. and gas sector. Capital spending in The UK has moved to shake-up the the rules and regulations made in a dif- isn’t shining, and be powered by wind The UK’s energy sector regulator, oil, gas and coal continued to way electricity is produced, used and ferent age updated for these new tech- when it is still. It will support the tran- Ofgem, was also expected to unveil plunge, falling by 25 per cent com- stored with the announcement that it nologies and approaches… The govern- sition to electric cars and enable our new rules to govern this new energy pared with 2015 but still accounts will invest £246 million ($321 mil- ment needs to remember that the homes to be more efficient – which system.