THE ENERGY INDUSTRY T I M E S
July 2018 • Volume 11 • No 5 • Published monthly • ISSN 1757-7365 www.teitimes.com
Powering growth Morocco shows
Africa the way Innovation to address the industry’s
megatrends is at the heart of Nexans’
strategy. TEI Times speaks to the
company’s new Chief Technology
Officer. Page 13
Sub-Saharan African countries can
learn much from Morocco about the
opportunities presented by developing
renewable energy. Page 14
News In Brief
Global clean energy
transition is irreversible
Continuing investment in fossil
fuels appears doomed regardless
of governments’ actions on climate
change, say scientists. Page 2
US renews focus on cyber
security
Experts say that solutions are
available to improve cyber security
in the US electricity sector, but more
needs to be done to improve sector
skills and collaboration.
Page 4
China’s new policy may lead
to solar slowdown
China’s new solar photovoltaic
(PV) policy, aimed at rationalising
capacity growth, might not only
slow the country’s solar PV market
but could also jeopardise efforts to
stem rising carbon emissions.
Page 6
UK negotiates on direct
nuclear stake
Plans for a direct investment in
Wylfa have drawn criticism but
could help to stimulate the UK
nuclear supply chain and skills
growth. Page 7
Kazakhstan attracts
international renewables
developers
Eni says it will move forward with
the construction of a 50 MW wind
farm in Kazakhstan as the country
moves forward with its ambitious
renewable energy development
goals.
Page 8
BP builds EV business
Oil giant BP has furthered its
operations in climate-friendly
technologies with an investment in
StoreDot, a developer of ultra-fast
charging battery technology.
Page 9
Technology: At your service
With large gas turbine sales
struggling in Europe and other parts
of the world, generating revenue by
upgrading existing fleet is becoming
increasingly important. GE is
looking to expand in the market
through its Cross Fleet solution.
Page 15
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Final Word
There’s no point
fantasising about the
future, says Junior Isles.
Page 16
Coal, nuclear
bailout could cost
US nearly
$35 billion per year Trump: security cited
to justify bailouts
US President Donald Trump’s plan to support failing nuclear and coal fired power plants has
come under scathing criticism from experts who argue it could cost consumers billions.
Junior Isles
US President Donald Trump’s latest
plan to support coal and nuclear fired
generation could cost US consumers
up to $34 billion per year in artificially
higher electricity bills, according
to experts.
A recently leaked memo has outlined
potential actions by the US Department
of Energy (DOE), including
a proposed plan that would require
power grid operators to buy electricity
from financially burdened coal and
nuclear plants over the next two years
to prevent the closure of additional
capacities.
For several years, the boom in natural
gas production and growth in renewable
generation has lowered prices
and forced coal and nuclear competitors
out of business, a trend President
Trump has promised to slow. During
his presidential campaign he pledged
to help coal miners in particular, having
received millions of dollars in
campaign donations from coal company
executives.
The Trump administration has therefore
been trying to push for bailouts
for several months. At the beginning
of June, however, in the leaked 41-
page draft memo circulated before the
National Security Council (NSC), it
proposed that the bailouts were needed
as a matter of national security.
According to the Federal Energy
Regulatory Commission (FERC),
some 15 864 MW of coal and 4532
MW of nuclear power capacity would
retire in the US by April 2021. Meanwhile,
the expected coal and nuclear
power capacity additions over the period
stand at 1687 MW and 6363
MW, respectively.
“Unfortunately, impending retirements
of fuel-secure power facilities
are leading to a rapid depletion of a
critical part of our nation’s energy
mix, and impacting the resilience of
our power grid,” Sarah Sanders, the
White House Press Secretary, said in a
statement, adding that the President
wants US Secretary of Energy Rick
Perry “to prepare immediate steps” in
response.
Experts argue, however, that such
steps will be costly. According to the
Nuclear Information & Resource Service
(NIRS) estimates, the current
Continued on Page 2
BP Statistical Review shows 2017 was two steps
forward, one step back
The recently launched ‘BP Statistical
Review of World Energy’ showed that
2017 was a year of two steps for-
ward and one step back for the energy
sector.
Introducing the 2018 edition of the
Statistical Review, Bob Dudley, BP
Group Chief Executive, said: “2017
was a year where structural forces in
the energy market continued to push
forward the transition to a lower carbon
economy, but where cyclical factors
have reversed or slowed some of
the gains from prior years. These factors,
combined with rising demand for
energy, has resulted in a material increase
in carbon emissions following
three years of little or no growth.”
Notably, this year’s Review, which
looks at the energy mix within the
power sector for the first time, shows
that the share of coal in the sector is
unchanged from 20 years ago.
Dudley commented: “As we have
said in our ‘Energy Outlook’, our
‘Technology Outlook’ and now our
‘Statistical Review’, the power system
must decarbonise. We continue
to believe that gains in the power sector
are the most efficient way to drive
down carbon emissions in coming
decades.”
According to the report power generation
rose by 2.8 per cent, close to
the 10-year average. Practically all
growth came from emerging economies
(94 per cent). Generation in the
OECD has remained relatively flat
since 2010.
Most notable was the growth in renewable
generation. Renewables accounted
for almost half of the growth
in power generation (49 per cent),
with most of the remainder provided
by coal (44 per cent). The share of
renewables in global power generation
increased from 7.4 per cent to
8.4 per cent.
The report revealed that renewable
power grew by 17 per cent – higher
than the 10-year average and the largest
increment on record (69 mtoe).
Wind provided more than half of renewables
growth, while solar contributed
more than a third despite accounting
for just 21 per cent of the
total.
In China, renewable power generation
rose by 25 mtoe – a country record,
and the second largest contribution
to global primary energy growth
from any single fuel and country, behind
natural gas in China.
Hydroelectric power rose by just 0.9
per cent, compared with the 10-year
average of 2.9 per cent. China’s
growth was the slowest since 2011,
while European output declined by
10.5 per cent (-16 mtoe).
Global nuclear generation grew by
1.1 per cent. Growth in China (8 mtoe)
and Japan (3 mtoe) was partially offset
by declines in South Korea (-3
mtoe) and Taiwan (-2 mtoe).
The report, however, stated that
global coal consumption increased
last year for the first time since 2013,
led by production from China and the
US. Although coal’s market share in
the global power mix rose and then
fell in the past 20 years, coal’s percentage
share remains unchanged at
38 per cent from 1998.
BP Chief Executive Bob Dudley
said it was “astonishing” that more
progress has not been made since
1998, “especially when the world is
trying to meet the goals of the recent
Paris climate accord to combat climate
change”.
BP Chief Economist Spencer Dale
agreed: “To have any chance of getting
on a path consistent with meeting
the Paris climate goals, there will
need to be significant improvements
in the power sector.”
Carbon emissions from energy rose
by 1.6 per cent last year, after remaining
nearly flat for the three previous
years.
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
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