THE ENERGY INDUSTRY TIMES - AUGUST 2017 Asia News 5 Australia split over energy recommendations n HELE coal plants claimed to be cheaper n Tesla to install 100 MW battery in 100 days Syed Ali A set of recommendations aimed at delivering a blueprint for the future of Australia’s electricity market energy policy has split the country’s Coalition government. The government has adopted 49 of the 50 recommendations made in a review led by Chief Scientist Alan Finkel but not the Clean Energy Target (CET) because of concerns it might prohibit investment in new coal fired generation. The Finkel report, which did not rule out new coal fired power plants as being part of the nation’s energy mix, analysed how the government could work to secure energy supply, drive down prices and cut emissions. Dr Finkel’s final recommendation for a CET is expected to return to cabinet over the winter break, and to the party room, where conservative MPs have argued against new emissions regimes. Commenting on the impasse, AGL Energy chief executive Andy Vesey and Origin Energy chief executive Frank Calabria said the government should embrace all 50 of Alan Finkel’s recommendations to improve energy security, affordability and carbon abatement. Calabria said the Finkel review provided a road map for energy security, affordability and carbon abatement that the private sector could use to modernise the system. Vesey noted: “It is not a menu, it is 50 recommendations.” Acting Prime Minister Barnaby Joyce says the government should step in to build a new “clean” coal fired power station to help deliver cheap and reliable electricity to Australians if the private sector fails to stump up the finance. New analysis, compiled by power and energy sector specialists GHD and Solstice Development Services, claims it would cost $2.2 billion to build a 1000 MW ultra-supercritical (USC) coal fired power plant and that it would deliver the cheapest electricity on the market. The high efficiency low emissions (HELE) coal plant, which the Turnbull government has not ruled out funding, would produce electricity at $40-$78/MWh, compared with gas at $69-$115/MWh and solar at $90- $171. The 550-page technical study, commissioned by the Minerals Council of Australia and the COAL21 Fund, claims that clean-coal plants would drive down energy prices, and offers the Prime Minister an economic blueprint on the viability of new coal fired stations. Former US Vice President and now climate change campaigner Al Gore argued that any move by the Australian government to subsidise coal fired power would be “crazy”. “Globally, the world is moving rapidly away from subsidies to fossil fuels,” he said. “It would be odd if Australia went in the opposite direction and subsidised coal. It’s impolitic of me to say it, but it would be crazy,” he said. Despite the uncertainty in government policy, states are still moving ahead with some significant clean energy projects. In July the South Australia state government contracted Tesla to deploy a 129 MWh lithium ion battery storage system near Jamestown. The 100 MW battery is claimed to be three times more powerful than any other system in the world. The system being installed by Tesla and the French renewable energy group Neoen, is designed to provide power to the grid at times of generation shortfall, as well as providing stability to the network, day and night. Tesla’s billionaire boss Elon Musk has promised the system will be installed in 100 days from the signing of the contract or it will be free. In a separate development, Photon Energy has started the development of a 316 MW solar power plant near Gunning in the state of New South Wales (NSW), Australia. When completed, it will become the largest planned solar power plant in the country. S. Korea moves away from coal and nuclear South Korea aims to increase its use of renewables and gas for power generation after the new Moon Jae-in administration committed to reducing its reliance on fossil fuel and nuclear power plants. Moon aims to increase the share of gas in the power generation mix to about 27 per cent by 2030, from 19 per cent today. For renewables the plan is to grow the share from 5 per cent to 20 per cent by 2030. The country currently generates two-thirds of its electricity from thermal coal fired power plants and nuclear reactors. The decision to move away from coal and nuclear has been prompted by the desire to cut air pollution in cities and the Fukushima nuclear disaster in Japan. In a policy report to President Moon Jae-in, who took office in May, the State Affairs Planning Advisory Committee said it will encourage big companies and small merchants to use renewable energy by offering financial incentives and other promotional packages. By 2023, the government will require power utility firms with a generating capacity of 500 MW or more to generate 10 per cent of their electricity from renewable sources, according to the policy outline. The so-called Renewable Portfolio Standard (RPS) mandates power utility firms to generate a certain amount of electricity from renewable sources. Under the RPS system, the proportion of electricity generated by renewables could rise to as high as 28 per cent by 2030, the report said. The Moon administration has yet to come up with comprehensive measures to make up for the expected power production shortfalls caused by the shutdown of the nuclear and thermal power plants. The decision to phase out coal and nuclear could, however, be less painful if demand slows, as some are predicting. A group of experts recently said electricity usage for the 2017- 2031 period is forecast to be smaller than a previous government forecast that covers 2015 through 2029. “The electricity demand for 2030 will likely reach 101.9 GW, down from the forecast of 113.2 GW made two years earlier,” said Yoo Seonghoon, an energy professor from Seoul National University. n South Korean firm Solkiss plans to build the largest rotating floating solar park in the world, with a capacity of 2.67 MW. According to Solkiss, rotating solar parks are 22 per cent more efficient compared to conventional ground-mounted PV plants, while their efficiency is 16 per cent higher than that of water-fixed floating facilities. Bangladesh accelerating energy diversification C M Y CM MY CY CMY K EP17_Ad_160x120-EN_op.pdf 1 9/5/2017 下午12:56 Dr. Finkel has made 50 recommendations The Bangladeshi government is accelerating its efforts to diversify its energy mix and enhance self-sufficiency in the energy sector. In July it set a target to generate 2000 MW of electricity from renewable sources in three years. Making the announcement in July, Nasrul Hamid State Minister for Power, Energy and Mineral Resources said: “We are working to increase power generation from renewable sources at a faster pace so it would meet at least 10 per cent of the total demand for electricity in 2020.” Currently, 447.51 MW of electricity comes from renewable sources, which is 2.87 per cent of the total power generation, according to the Ministry for Power, Energy and Mineral Resources. The increase in renewables runs alongside a continuing move to grow fossil fuel electricity capacity to address a generating shortfall. Last month the government said it will go ahead with the Rampal power coal fired plant after the World Heritage Committee of UNESCO withdrew its objection. Prime Minister’s Adviser on Energy issues Dr Tawfiq-e-Elahi Chowdhury said: "Construction of the Rampal 1320 MW coal fired power plant would be carried through with this new UNESCO stance.” The government also recently announced it will build a 150 MW dieselbased power plant. The plant, which will benefit from government subsidies, will be operated by the Bangladesh Power Development Board (BPDB). Currently, around one dozen dieselbased power plants are operating in the country.
Energy Industry Times July 2017
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