THE ENERGY INDUSTRY August 2018 • Volume 11 • No 6 • Published monthly • ISSN 1757-7365 www.teitimes.com TIMES Special Supplement Some like it hot Final Word The massive Samcheok Green Greenhouse gas emissions have reached Climate change means Power Project in South Korea an all-time high, yet some world leaders more heat waves and takes circulating fluidised bed seem reluctant to stand behind the green more solar, technology to the next level. push. TEI Times hears what more can be says Junior Isles. done. Page 14 Page 16 News In Brief Denmark sets new renewables target, as cost of Slowdown in clean offshore wind slides Offshore wind looks set to play a key role in Denmark’s recently agreed new target for renewables. Page 2 energy investment Argentina tenders first of seven transmission lines under PPP Argentina is continuing to make threatens climate investments in its power sector with the announcement of tender terms for a high voltage power line. Page 4 goals Australia seeks strategy to tackle rising energy costs Australia’s Federal Energy Minister Josh Frydenberg has indicated Birol: decline in investment for renewables and energy efficiency “is worrying” the coalition government could financially support new power The energy transition seems to have paused as investments in clean energy falls, according generation as part of a set of measures to tackle rapidly rising to the International Energy Agency’s latest World Energy Investment report. Junior Isles power costs. Page 6 The latest data published in the Inter- efficiency declined by 3 per cent in investment in renewables falling by While energy efficiency showed national Energy Agency’s World En- 2017 and there is a risk that it will nearly 7 per cent, nuclear investment some of the strongest expansion in Renewables rise in Germany ergy Investment (WEI) 2018 report slow further this year. in 2017 plummeted 45 per cent. 2017, it was not enough to offset the Renewable energy is continuing to reveals a “worrying” fall in clean en- The IEA’s figures show that al- “Such a decline in global invest- decline in renewables. Moreover, overtake fossil fuels as Germany’s ergy investment. though electricity investment has ment for renewables and energy effi- efficiency investment growth has main source of power as the country According to the report, renewable shifted towards renewables, networks ciency combined is worrying,” said weakened in the past year as policy continues its Energiewende policy. power investment fell to $298 billion and flexibility, expected output from Dr Fatih Birol, the IEA’s Executive activity showed signs of slowing Page 7 in 2017 from $318 billion in 2016, low carbon sources fell 10 per cent in Director. “This could threaten the ex- down. representing the biggest absolute drop 2017 and did not keep pace with de- pansion of clean energy needed to Michael Waldron, one of the re- SPIC building GT since the agency started keeping track mand growth. meet energy security, climate and port’s lead authors noted: “The fastest programme of clean power in 2000. This indicates that investment is not clean air goals. While we would need growing area was in energy efficien- Siemens says it will support China’s The report also finds that after sev- growing in a way that supports deep this investment to go up rapidly, it is cy. Although slower than in 2016, this goal of independently developing eral years of growth, combined global decarbonisation of the power system, disappointing to find that it might be and building its own heavy-duty investment in renewables and energy said the IEA. At the same time as falling this year.” Continued on Page 2 gas turbine technology through a memorandum with State Power Investment Corporation (SPIC). Page 9 Clean energy investment remains steady in Energy Outlook: Charging ahead Exciting new storage capabilities being developed for renewable first half of 2018 energy resources have the potential to dramatically transform the global Overall clean energy investment was fewer dollars spent per megawatt in- average of 24.4 U.S. cents per watt.” from India to the Netherlands and energy sector, as they deliver the steady in the first half of the year, stalled; and a cooling-off in China’s In its World Energy Investment Norway. capacity to balance electricity supply thanks to a strong second quarter for solar boom. These trends are set to 2018 report, the International Energy The news comes as the World Bank and demand. wind power investment, led by the US gather pace in the second half, says Agency also said that policy changes released figures that show it invested Page 14 and China, according to research BNEF. in China could result in a slowdown $20.5 billion during the 2018 fiscal company Bloomberg New Energy Justin Wu, head of Asia-Pacific at in investment in solar PV this year. year on projects which address the Technology: Three-way Finance (BNEF). BNEF, said: “On June 1, the Chinese In the first half of 2018, China in- impacts of climate change. This rep- storage breaks the mould Its latest figures show world invest- government released a policy docu- vested $35.1 billion in solar, down resents 32.1 per cent of all funding A new energy storage system ment in clean energy in the first six ment restricting new solar installa- 29 per cent from 1H 2017. However, and exceeds its target of spending at capable of supplying electricity, months of 2018 at $138.2 billion, tions that require a national subsidy, BNEF expects the full extent of the least 28 per cent of its finances on heating and cooling could shape the down just 1 per cent from the same with immediate effect. We expect this government-ordered cutback to be- tackling the problem by 2020. future of the thermal energy storage period in 2017. The second quarter, to lead to a sharp drop in installations come clear only from the second half “We have not just exceeded our cli- market. from April to June, actually saw a rise in China this year, compared to 2017’s of the year onwards. Its analysts see mate targets on paper, we have trans- Page 15 year-on-year of 8 per cent to $76.7 spectacular record of 53 GW.” a possibility that that world solar in- formed the way we work with coun- billion. Pietro Radoia, senior solar analyst at stallations in 2018 could fall for the tries and are seeing major transitions The first half of 2018 shows solar BNEF, added: “It will also mean over- first time on record. In 2017, they to- to renewable energy, clean and resil- Advertise investment down 19 per cent com- capacity in solar manufacturing glob- talled 98 GW, far more than for any ient transport systems, climate-smart [email protected] pared to the same period last year at ally, and yet steeper price falls. Before other technology, renewable or non- agriculture and sustainable cities,” $71.6 billion, with wind up 33 per the Chinese announcement our team renewable. said the bank’s Chief Executive Of- cent at $57.2 billion. The slippage in was already expecting a 27 per cent The jump in wind power invest- ficer Kristalina Georgieva. Subscribe [email protected] solar reflects two main developments fall in PV module prices this year. ment in the first half of 2018 came As a result, the bank will set new or call +44 208 523 2573 – significantly lower capital costs for Now we have revised that to a 34 per thanks to a stream of large project fi- targets at the December UN climate photovoltaic projects, and therefore cent drop, to an end-2018 global nancings from the US to Taiwan and conference in Poland. 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 2018 2 Headline News Continued from Page 1 was up 3 per cent. At the same time, however, renewable investment Denmark sets new was down by nearly 7 per cent. When you put energy efficiency and renewables together, which are two things that are critical to the clean energy transition, you find renewables target, as cost that this combined investment was down three per cent – this is after two years of increase.” The IEA also said there has been of offshore wind slides a 13 per cent decline in renewables for transport and heat, which is im- portant for the decarbonisation of n Plan for 2.4 GW of offshore wind sectors outside of electricity. This, Luter says improved methods of it says, is largely due to insufficient n MHI Vestas says “still room to go lower” on cost of energy developing and producing blades policy support. will help cut LCOE in offshore wind An important finding from the report is that electrification, a key Junior Isles 4300 to 1850. This means that onshore shows that costs to build and operate offshore wind, James Luter, Director part of the energy transition is wind in Denmark is becoming a repow- an offshore wind farm in the country of Production, MHI Vestas Offshore continuing. Offshore wind looks set to play a key ering market where old turbines are have declined by more than 30 per cent Wind said: “In 2014, we were saying The electricity sector attracted the role in Denmark’s recently agreed new replaced by state-of-the-art models. compared to previous projections. the cost of energy from an offshore largest share of energy investments target for renewables.