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Energy Industry Times February 2017

THE ENERGY INDUSTRY TIMES - FEBRUARY 2017 4 Americas News Trump sets out “America First” energy plan Siân Crampsie US President Donald Trump says that increasing domestic energy production will boost the US economy and free the country from dependence on foreign oil. The newly inaugurated President has outlined an energy plan that aims to reduce the cost of energy and maximise the use of domestic resources. He has pledged to revive the USA’s coal industry, which, he says, “has been hurting for too long”, but says he is aware of the need for “responsible stewardship of the environment”. Trump’s “America First” energy plan includes a commitment to eliminating “harmful and unnecessary” policies such as the Climate Action Plan, as well as other “burdensome” regulations that have stifled domestic energy production. “I will cancel job-killing restrictions on the production of American energy, including shale energy and clean coal, creating many millions of high-paying jobs. That’s what we want, that’s what we’ve been waiting for,” said Trump. In the run-up to his inauguration, 24 state attorneys-general, together with Vice President Mike Pence and congressional leaders asked Trump to kill the Clean Power Plan by issuing an immediate executive order declaring it to be unlawful and prohibiting the US Environmental Protection Agency (EPA) from enforcing it. Although Trump has stopped short of this action, his new energy plan and his stance on energy and the environment during the presidential campaign have alarmed environmentalists. Sierra Club executive director Michael Brune called the energy plan “a shameful and dark start to Trump’s Presidency” and “an historic mistake on one of the key crises facing our planet”. Just days into his presidency, Trump signed executive orders expediting the permit process for two controversial pipelines: the Dakota Access pipeline, which would carry oil from North Dakota, through South Dakota and Iowa to be shipped out of Illinois, and the Keystone XL pipeline, which would bring oil from Canada to Nebraska. He has also been criticised for his appointment of former Texas governor Rick Perry to lead the Department of Energy, and of Oklahoma Attorney General Scott Pruitt to head the EPA. Pruitt is widely seen as a climate skeptic and has sued the EPA 14 times in order to attempt to block federal air and water pollution regulations. In his energy plan statement, Trump says that “protecting clean air and water … will remain a high priority” and says he will “refocus” the EPA’s role. Investment in Chile’s renewable energy sector is growing as the country looks to expand its installed solar generating capacity. Environmental authorities in the country have approved the $535 million, 446 MW Elena solar project planned by Spain’s Ibereólica. The approval comes just weeks after approvals were issued for a further 13 energy projects that will require investments of $1.37 billion. Several more projects, worth a combined $474 million, are awaiting approval, according to CNE, the national energy commission. Ibereólica’s Elena solar project comprises two solar farms, each with a capacity of 223 MW in Chile’s Antofagasta region. They will connect to the northern SING power grid via an 18.6 km, 220 kV transmission line. Other recently-approved projects include eight power plants with a combined installed capacity of 462 MW, and four transmission projects. They form a key part of plans by Chile’s government to boost generating capacity to meet rapidly rising demand, as well as improve energy security. Approved generation projects include WPD’s 270 MW Malleco wind farm and the 95 MW Santa Marta de Marchigüe solar photovoltaic farm planned by Andes Mainstream. Projects recently submitted for approval include Andes Mainstream’s 220 MW Santa Ana wind farm, and the Llanos de Potroso and Los Libertadores solar PV parks. Generating capacity in Brazil is continuing to grow in spite of fears of a supply glut amid a prolonged economic recession. Regulator Aneel says that the country will add around 7 GW of capacity to its grid in 2017, on top of the 9.5 GW commissioned in 2016. Installed capacity in Brazil now stands at over 149 GW, according to the Brazilian mining and energy ministry. Data from energy planning agency EPE shows that electricity use yearon year dipped 1.2 per cent in November 2016, with demand from the commercial sector eroded by poor economic growth. Electricity demand in 2015 fell by 2.1 per cent compared Dong, Eversource deal shows growing confidence in US offshore wind n US utility buys stake in 1 GW proposals n Deal backs Massachusetts wind plans Dong Energy has brought New England utility Eversource on board to help it develop its proposed Bay State offshore wind farm in a move that demonstrates growing confidence in the USA’s offshore wind industry. Eversource acquired a 50 per cent ownership interest in the Bay State wind farm to be built approximately 25 km off the coast of Martha’s Vineyard, and which could have a capacity of up to 1000 MW. It is the latest of several recent positive developments in the US’ offshore wind sector. Last year the states of New York and Massachusetts announced plans to support offshore wind industry developments, and the offshore wind sector in the country celebrated in December 2016 with the opening of Block Island, the country’s first offshore wind farm. New York has developed an offshore wind master plan that includes directives from state governor Cuomo to make leasing areas available and to carry out studies into rapid and costeffective ways of boosting renewable energy capacity. Massachusetts last year passed an energy bill requiring utilities to enter into long-term contracts for 1600 MW of offshore wind from 2027. to 2014. Aneel expects 4 GW of hydropower capacity and 2.4 GW of wind energy to be added to the grid in 2017. It said that 2016 was a record year for capacity additions, with 5 GW of new hydropower, 2.5 GW of wind energy and 1.7 GW of thermal capacity added. The rapid growth in Brazil’s electricity sector has attracted new entrants to the market. Chinese firms in particular have put aside concerns over the country’s economic recession to gain a foothold in what they see as a key target market. At the end of December 2016, Duke Energy completed the sale of its international “New England is setting the pace for a national clean energy future with its proven track record in energy efficiency and bold clean energy goals,” said Jim Judge, President and CEO of Eversource Energy. “Our partnership with Dong Energy on Bay State Wind represents a significant opportunity to help make those goals a reality and we look forward to delivering this renewable and reliable source of power to customers.” A partnership with Eversource gives Dong a strong local partner in the project, the company’s first offshore wind farm outside European waters. It was awarded the site area by the US Department of Interior in 2015. “Offshore wind is a reliable homegrown energy source that can be delivered at scale to Massachusetts residents and businesses,” said Thomas Brostrom, General Manager for Dong Energy Wind Power US Inc. “New England’s water depths and wind speeds are similar to those in Europe and provide attractive conditions.” Dong and Eversource said in a statement that they “are committed to playing a central role in bringing their companies’ respective expertise and successes to bear” to help Massachusetts meet its renewable energy business in Brazil to China goals. Three Gorges Corp (CTG) for approximately $1.2 billion. The sale includes ten hydropower plants with a combined generating capacity of 2090 MW. The firm has also reached an agreement with I Squared Capital, a global infrastructure investment manager, over the sale of Duke’s remaining Latin American business, which includes power generation and transmission assets in Peru, Chile, Ecuador, Argentina and Central America. That portfolio includes over 2300 MW of hydro and thermal generation, 730 km of 220 kV transmission lines and natural gas processing facilities. The USA’s new President has stopped short of decisive action on the Clean Power Plan but hopes to expand production of domestic oil and gas. n 7 GW of new capacity forecast in 2017 n Duke completes Brazil sale Chile’s renewables investment gains momentum Generating sector in Brazil expands


Energy Industry Times February 2017
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