THE ENERGY INDUSTRY T I M E S May 2017 • Volume 10 • No 3 • Published monthly • ISSN 1757-7365 www.teitimes.com What’s in store post-Brexit? Smart moves may not be easy Collaboration will be key to unlocking the UK’s full potential for energy storage when it leaves the EU. Page 13 Future smart grid and smart meter opportunities exist but may be difficult to realise, says the GSGF. Page 14 News In Brief Renewable installations hit record levels Renewable installations hit record levels in 2016 as costs continue to fall, according to a recent report. Page 2 Mexico converts waste Up to five waste-to-energy plants are to be built in Mexico as the country seeks to improve the green credentials of its energy sector. Page 4 US viewpoint Future carbon emissions may not be so gloomy, despite Trump’s new energy policies. Page 5 Vietnam approves solar tariffs Vietnam’s solar sector has received a boost with the Prime Minister’s official approval of the support regime for the development of solar power projects. Page 6 EDF pours Hinkley concrete Nuclear power projects are starting to make progress in the UK but Westinghouse’s bankruptcy has highlighted the risks of undertaking such mammoth projects.. Page 7 LM deal brings blades in-house for GE GE has closed a deal to buy LM Wind Power, a move it hopes will give it the edge in an increasingly competitive market. Page 9 Fuel Watch: Opec weighs question of continued production cut Opec and its non-Opec partners, in a plan to reduce global crude supply, may opt to extend a cutback in crude oil production beyond June. Page 12 Technology: Getting the drop on coal A new type of black pellet looks set to offer generators a true ‘drop-in’ biomass replacement for coal. Page 15 Advertise advertising@teitimes.com Subscribe subscriptions@teitimes.com or call +44 208 523 2573 Final Word After Trump’s first 100 days in office, Junior Isles says set not thine promises in stone. Page 16 Climate change concerns grow post-Brexit UK Prime Minister Theresa May triggered Article 50 at the end of March There is growing concern that climate change and green energy targets will suffer following the UK’s triggering of Article 50. Junior Isles EU and UK ministers are being urged to keep discussions on climate change and environmental policy at the heart of discussions following the triggering of Article 50. The triggering of Article 50 at the end of March, formally beginning the UK’s process of leaving the European Union, has raised concern in the energy sector on both sides of the Channel. Eurelectric, the Brussels-based organisation representing Europe’s electric utilities, recently outlined its views on the future energy relationship between the EU and the UK. “We welcome the certainty that triggering Article 50 provides and advocate for negotiators to demonstrate urgency in establishing the negotiating framework, while engaging with affected interest parties,” said Eurelectric’s Secretary General Kristian Ruby. “Following the triggering of Art. 50, we call upon the negotiators to recognise the importance of energy in the upcoming debate and to keep negotiations on the Internal Energy Market separately from those on the EU single market.” The discussion surrounding climate change goals and environmental rules was one of several key elements it said must be included in the agenda. Eurelectric urged the UK and EU to continue to work together internationally on climate issues, including UK participation in emissions trading with the EU. It said a fundamental component for the fair trading of electricity is the carbon price paid by electricity generation in one country relative to another. To avoid disruptions, the organisation said the UK should continue to participate in the current trading phase. Otherwise a linked emissions trading scheme (ETS) would be highly desirable in the longer term. Notably, Eurelectric says careful consideration needs to be given to the impacts on the EU’s 2030 energy and climate framework. It believes the UK’s departure could well require an UK commitment to sustainable energy unpredictable, says WEC adjustment of the non-ETS, renewables and energy efficiency targets applicable to other Member States, or impact other political commitments in the 2030 framework such as the modernisation fund. Brexit is also fuelling intense debate in the UK. Reacting to the Prime Minister’s triggering of Article 50, Nick Molho, Executive Director of the Aldersgate Group in London, noted that several key environmental and climate change policies are derived from EU legislation and that Brexit will “open up opportunities to make improvements in certain areas”. Continued on Page 2 A recent report by the World Energy Council (WEC) says that despite investment in renewables being ranked as a top priority by energy leaders globally in 2017, Brexit has left the UK’s commitment to future sustainable energy projects uncertain. According to its World Energy Issues Monitor 2017: ‘Exposing the New Energy Realities’, the WEC says that the UK’s decision to leave the European Union has created ambiguity surrounding its future participation in schemes such as the Energy Union project. It also says there is further uncertainty around continued funding from the European Investment Bank and around regulations such as EU state aid rules, the 15 per cent interconnection target by 2030, the Renewable Energy Directive as well as the EU Industrial Emissions Directive 2010. Francois Austin, Board member, UK Member Committee of the World Energy Council and Partner & Global Head at Oliver Wyman, commented: “Political and regularity uncertainty including Brexit is making market design unpredictable and are barriers to sustained investments needed to transform and update energy infrastructure in the UK, which has been estimated as being £215 billion by 2030.” Other findings related to the UK include: n New physical and virtual risks – Cyber-attacks are posing ever greater threats to the energy sector. If a critical attack was to occur on the electricity distribution network of London and the South and East of England between 9 million and 13 million electricity consumers could be affected with economic losses ranging from £11.6 billion to £85.5 billion n Commodity price volatility remains the number one critical uncertainty. Compared to 2015 the issue of commodity prices in 2016 and 2017 is seen as less uncertain but higher in impact, by UK energy leaders. Now in its eighth year, the World Energy Issues Monitor provides a snapshot of the current priorities, facing global energy leaders. This year’s survey highlights shifting priorities in the energy sector with an increasing impetus towards a lower carbon future. Disruptive technologies including renewable energies and energy efficiency are impacting top action priorities for energy leaders globally in 2017. The survey of more than 1300 energy leaders in 95 countries showed that renewables ranked high in impact within every region. It noted that solar has seen immense growth in installed capacity reaching 227 GW by the end of 2015, while global wind power generation capacity increased at a rate of 17.2 per cent in 2015. Commenting on the report, Dr Christoph Frei, Secretary General of the Council said: “Our survey shows that energy leaders face and acknowledge disruptive change. The Issues Monitor illustrates that innovation issues such as digitalisation, decentralisation, innovative market design or electric storage rapidly gain traction, while a more difficult growth context and new physical and digital risks are posing ever greater threats to the energy sector... five years ago these issues were far from being a priority.” 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 May 2017
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