THE ENERGY INDUSTRY T I M E S January 2017 • Volume 9 • No 11 • Published monthly • ISSN 1757-7365 www.teitimes.com Special Project Supplement Storage is finding its feet Advanced boilers help Bouchain reach recordbreaking efficiency. Energy storage deployment continues to accelerate as costs continue to fall. Page 13 News In Brief Climate policy concern grows as Trump selects team Concern over future US government energy policy and climate change is growing following key appointments in the incoming Trump administration. Page 2 Keen interest in US offshore wind auction The award of a lease to develop an offshore wind zone off the coast of New York state and the startup of the country’s first offshore wind farm point toward a bright future for the US offshore wind sector. Page 4 Australia calls for carbon policy certainty In Australia’s electricity industry has called for the state and federal governments to adopt consistent energy policies. Page 6 New build CCGT loses out in latest GB auction The results of Great Britain’s latest capacity market auction have led to questions over whether the mechanism will drive construction of new generating capacity. Page 7 Digitalization key to Enel business plan Enel is to invest €4.7 billion to digitise its asset base as part of an enhanced strategic plan aimed at boosting growth, efficiency and protecting customer operations. Page 9 Getting smart about network management Intelligent networks have the power to transform how energy is distributed and consumed. Page 14 Technology: Pioneering enzyme process improves waste recycling DONG Energy is building the world’s first commercial full-scale waste-to-energy bio plant, which uses enzyme treatment to convert household, municipal and some commercial waste into biogas. Page 15 Advertise advertising@teitimes.com Subscribe subscriptions@teitimes.com or call +44 208 523 2573 Final Word Junior Isles finds danger in the forest. Page 16 EU energy proposals could go further Cañete: providing “a strong market pull for new technologies” While the EU’s latest package of clean energy proposals has been welcomed, some argue the measures do not go far enough. Junior Isles The European Commission has received praise for its latest set of legislative measures related to the energy sector but some believe it can go further. The overhaul of energy markets by the Commission will strengthen binding targets requiring EU member states to increase energy efficiency, step up the use of renewable energy and end fossil fuels subsidies for power generation in a five-year transition period. The European Commission announced plans to cut energy usage by 30 per cent by 2030 to meet Europe’s Paris Agreement commitments. Energy suppliers will now be required to save 1.5 per cent each year between 2021 and 2030. The package will also see new incentives for smart metering and innovative design, seek to boost renewables and give greater power to consumers to sell any electricity they produce. The proposals will now need to be approved by member states and the European Parliament before going ahead. Most notably, the package of measures contains the revised Renewable Energy Directive (RED), the Energy Efficiency Directive (EED) and Energy Performance of Buildings Directive (EPBD). Together, they constitute the legislative pillars underpinning the EU renewable energy sector. Unveiling the measures, the EU Commissioner for Climate Action and Energy, Miguel Arias Cañete, said: “Our proposals provide a strong market pull for new technologies, set the right conditions for investors, empower consumers, make energy markets work better and help us meet our climate targets. I’m particularly proud of the binding 30 per cent energy efficiency target, as it will reduce our dependency on energy imports, create jobs and cut more emissions.” The European Environment Agency (EEA) commented that EU members “are collectively well on their way” to meeting 2020 targets on renewables, energy efficiency and greenhouse gas emissions. The package was welcomed by the Coal phase-outs continue electricity industry. Eurelectric, the organisation representing Europe’s electric utilities, said the proposals clearly underpin market integration and the removal of some regulatory interventions, which distort the functioning of the market. “Market designs are not carved in stone and they are bound to evolve, but it is crucial that energy, flexibility and capacity are adequately valued to ensure cost-efficiency and security of supply,” said Hans ten Berge, Eurelectric Secretary General. Others, however, while welcoming the proposals, questioned its ambition. Brook Riley, from Friends of the Continued on Page 2 The phase-out of coal fired generation is gaining momentum, as several countries recently announced they would be closing all existing plants by 2030. French President Francois Hollande announced during COP22 that all coal plants in France will close by 2023. The country sees the move as as the most cost-effective way of meeting its Paris Agreement commitment. The government says updating old coal plants is more expensive than developing facilities for renewable energy production, so keeping them open no longer makes financial sense. According to the French President, the deal is “irreversible”. The news follows similar announcements by the UK, Finland, Canada. In mid-November, Finland announced its plans to phase out the use of coal for electricity generation by 2030. Finland’s national climate target is to reduce greenhouse gas emissions by 80 per cent by 2050. Olli Rehn, Finnish Minister of Economic Affairs said: “Finland is well positioned to be among the first countries in the world to enact a law to ban coal... This will be my proposal.” He also said: “Giving up coal is the only way to reach international climate goals.” When the ban is put in place, Finnish utilities will be forbidden to produce energy from coal and the import of coal-based electricity will also be forbidden. The new plan will be presented to the Finnish Parliament in March for approval. The news came as Canada said it will shutter its coal fired power plants by 2030 as part of its strategy to cut greenhouse gas (GHG) emission under the Paris climate accord. The plants, located in four provinces, produce about 10 per cent of Canada’s total CO2 emissions, and closing them will remove the equivalent in emissions of 1.3 million cars from roads. Reacting to the announcement, John Gorman, President and CEO of Canadian Solar Industries Association said: “Goals such as 90 per cent clean electricity by 2030 and an emissions reduction of 80 per cent by 2050 send a clear signal to investors that we are continuing to transition from fossil fuels to renewable electricity, as we must, to limit global warming to 1.5 degrees.” Canada has the cleanest, most renewable electricity generation system in the G7, and the fourth-largest renewable energy capacity in the world. Renewable energy sources such as sun, wind, and water currently meet 65 per cent of Canada’s electricity needs. In December, Canadian Prime Minister Justin Trudeau announced the country’s first carbon tax at C$10 a tonne. The pricing will be introduced from 2018 and will rise by C$10 every year to reach C$50 in 2022. Under the agreement, the provinces can either implement a carbon tax or a capand trade market. Elsewhere, Ontario and Quebec, the country’s most populous provinces, are installing a cap-and-trade system, and British Columbia already has a carbon tax. THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: enquiries@teitimes.com
Energy Industry Times January 2017
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