Regulation & Policy

The U.S. Environmental Protection Agency (EPA) has proposed to expand the reach of National Emission Standards for Hazardous Air Pollutants (NESHAP) for stationary combustion turbines. Lifting a 15-year stay on NESHAP standards, the environmental watchdog is now working on a long overdue residual risk and technology review (RTR). New rules will impact lean pre-mix and diffusion flame gas combustion turbines.

Lawmakers in the U.S. state of Colorado are debating a bill that proposes the Colorado Public Utilities Commission (PUC) should consider the ‘social cost of carbon emissions’ before issuing permits for new fossil power plants. The concept seeks to put a price on harms caused by emissions and, if enacted, the new carbon tax would be $46/ton of CO2 emitted, starting from 2020.

Just prior to the first meeting of Germany’s newly installed ‘climate cabinet’ this week, Finance Minister Olaf Scholz has tabled his vision of the country’s energy transition. In his ‘Energy Concept 2038’, Scholz urges the government to show “more commitment for climate action” and focus on electricity supply and grid stability.

The German government is evaluating the launch of CO2 pricing across various emission-intensive economic sectors, including transport. So far, no proposal for a CO2 tax has been included in the German Transport Ministry’s official recommendations because the Conservative CDU/CSU alliance prefers to expand the scope of the European Emissions Trading System (EU-ETS) instead.

The CEO of German regional utility EnBW, Frank Mastiaux, has forecast Germany will see a significant number of new gas-fired power stations being built over the coming years. Flexible combined-cycle gas turbine (CCGT) capacity, in particular, is deemed vital to guarantee cost-efficient supply of electricity and grid stability as the country exits coal and nuclear energy.

China has chosen April 1 as the date when two-digit reductions in Value-Added Tax (VAT) will have to be implemented by key industries, including electric power producers, in bid to lower fuel costs and ultimately reduce electricity prices. Manufacturing companies will benefit from 13% to 16% VAT cuts, while construction and transport firms will pay around 10% less VAT and industrial users of thermal coal, including power producers will see VAT drop by 3%.

Striving to streamline China’s energy market, the National Development and Reform Commission (NDRC) is advancing plans to create a single oil and gas pipeline company by mid-2019. The new China-wide TSO will integrate the pipeline assets of former competitors, notably CNPC and its listed arm PetroChina, Sinopec and CNOOC.

Since the start of the February billing cycles, customers of the Dominion Energy subsidiary SCE&G are enjoying a 15% drop in their expenses for electricity. Dominion had to commit to lower energy bills to get approval from South Carolina’s state regulators for the $7.9 billion SCANA takeover.

Alarmed by an air pollution crisis in Seoul and other key cities, the South Korean government is proposing measures to help utilities to convert their power plants from coal to natural gas in order to reduce worsening levels of toxic fine dust and mercury emissions in Seoul and other northern cities.

U.S. Democrats have voiced concern that Andrew Wheeler, the new head of the Environmental Protection Agency (EPA), will undermine the Obama-era Clean Power Plan by rolling back regulation on power plant emissions. President Trump-nominee Wheeler was instated at the top of the EPA after winning a vote in the Senate by 52-47.

Andrew Cuomo, the Democratic Governor of New York, has proposed to phase out less efficient gas peaking plants to meet the state’s target of reducing greenhouse gases by 40% by 2030, and achieve zero-carbon electricity supply by 2040. The new rules lower the NOx emission threshold, with more stringent controls set to start in five years’ time.

Nearly half of the German public wants a nuclear exit to happen before a coal phase-out: 49.5% of respondents of a Verivox survey say closing the last nuclear plant by 2022, and the last coal plant by 2038, is ‘the right order’. But 44.1% of respondents say nuclear closures are ‘wrong’ from a climate perspective.

Pakistan’s Economic Coordination Committee (ECC) has approved the terms of a power purchase agreement (PPA) and a gas supply deal for what will be the fourth LNG-fuelled power project in Punjab province. Built by a Chinese EPC company near the city of Jhang, the start-up of the 1,263 MW plant is being fast-tracked to help avert a regional energy crisis this summer.

Voters in a referendum have approved developers to proceed with a long-delayed gas power plant in central Mexico, one of seven projects halted in the region. About 60% of the votes cast were in favour of finalizing construction of the $1.3 billion power plant project in Huexca, southeast of Mexico City.

Proposals to put a price on carbon emissions – in the form of a CO2 tax – will not be realise in the current legislative period, Germany’s energy state secretary Andreas Feicht said. The Conservative-led Government had earlier dismissed the initiative, saying it was not in the governing coalition’s agreed agenda.

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News in Brief

$500m Birdsboro plant gets powered up

April 17 – Birdsboro Power, a subsidiary of EmberClear of Canada, is in the process of commissioning the $500 million Birdsboro open-cycle gas power plant. Built on a site of the former Amourcast steel foundry, and driven by a GE 7H02 turbine, the new power unit will generate about $500,000 in revenue for the Reading Area Water Authority and another $125,000 city of Reading, Pennsylvania. All electricity will be supplied into PJM Interconnection, the power grid operator in the U.S. Northeast.

Gas now dominant fossil fuel in Europe

April 17 – Rising cost of carbon emissions and closures of coal power stations throughout Europe have led to gas-fired generation overtaking the output of other fossil fuels for the first time. According to EnAppSys figures, gas power plants in the EU produced 117 TWh of electricity in the first quarter of 2019, compared with a combined 110.9 TWh from coal, lignite and gas-to-coal plants.

ABB, Porsche co-develop electric vehicle chargers

April 16 – ABB and Porsche have agreed to develop electric vehicle chargers for Porsche Japan’s new electric vehicles, including Tayan – the carmakers’ first fully electric car due to be launched in 2020. Under the deal, Porsche will install ABB chargers at its public facilities across Japan, creating a network of fast-charging stations for its electric vehicles. The first installation is set to go live in mid-2020.

Power gen from biomass flatlines

April 15 – Increases of U.S. electricity generation from biomass have stopped after a decade of growth. Power produced from biomass totaled 70.6 million megawatthours (MWh) in 2018, or about 2% of total U.S. electricity generation, according to EIA figures. Having grown from 2004 through 2014, and the 2018 output was 2% below its peak generation of 71.7 million MWh.

Aeroderivative GT market to top $3.5bn by 2024

April 12 – The global market for aeroderivative gas turbines is seen grow at a 7% rate to surpass $3.5 billion by 2024. A main growth driver, according to Global Markets Insight, will be the rising adoption of small-scale turbine-driven cogeneration plant and the trend towards decentralized energy supply.

Lumenaza creates regional green power grids

April 11 – Utility-in-a-box software, developed by Lumenaza, creates a regional green power grid by connecting producers and consumers of locally produced wind and solar energy. The system monitors renewable power output, balances supply and demand, and can help organize the billing process. Pilot projects have been implemented with two of Germany’s big utilities, E.ON and EnBW as well as with various smaller players.

MHPS licenses H-25 turbine production to Chinese manufacturer

April 10 – Mitsubishi Hitachi Power Systems (MHPS) has agreed to license production technology for its H-25 series gas turbines to the Chinese manufacturer CSIC Longjiang GH Gas Turbine Co. The agreement will establish a small local supply chain which helps expands MHPS’ share in the Chinese market, the Japan-based company stated. So far, MHPS received five orders for H-25 Series gas turbines, or nine units in total, from Chinese power plant developers.

SIEW 2019 to focus on energy transformation

April 9 – “Accelerating Energy Transformation” will be the theme for the Singapore International Energy Week (SIEW) 2019. This theme has been chosen by the Energy Market Authority (EMA) of Singapore to address mounting challenges in Asia over meeting climate change commitments against a backdrop of continuously rising energy demand.

ENGIE launches 1st mini-grid in Zambia

April 8 – The French utility ENGIE has inaugurated its first PowerCorner – an off-grid renewable energy solution – in the Zambian village of Chitandika. Located in the East of Zambia, Chitandika counts 1500 inhabitants who previously had no access to electricity.

Global gas engine market to reach $4.4 billion by 2020

April 5 – Over the next five years, the global gas turbine market is forecast to grow 11.1% annually in terms of revenue, reaching a market size of $24,100 million by 2024, up from $14,300 million in 2019. Market-leading companies include: GE, Siemens, Ansaldo Energia, MAN Energy Solutions, Mitsubishi Hitachi Power Systems and Shanghai Electric Group.

EDAC, Siemens seek ‘industrial app’ for 3D-printing

April 4 – Siemens is intensifying its cooperation with the EDAG Group, an independent engineering company for the automotive industry, to promote industrial applications of additive manufacturing (AM), also known as 3D printing. The companies’ joint "NextGenerationSpaceframe 2.0" project is on show at the Hannover Messe this week.

ABB electrifies Lodi campus of Milan University

April 3 – The Swiss manufacturer ABB will ensure smarter, safer and more reliable electricity supply for students at the Milan University’s new campus in Lodi. Covering an area of 20,000 square meters, the campus has installed ABB’s UniSec switchgear and main distribution switchboard solution, System pro E power.

Chevron launches $90m Fund VII

April 2 – Chevron Technology Ventures (CTV) has set up Fund VII, a new $90 million fund focused on venture capital investment across the energy industry. Investments target early- to mid-stage companies as well as limited partnership funds with the aim of supporting breakthrough technologies that have the potential to improve Chevron’s oil and gas business performance.

Siemens to implement VW Industrial Cloud

April 1 – The German carmaker Volkswagen has chosen Siemens as integration partner for the VW Industrial Cloud. Based on Siemens’ MindSphere system, the VW Industrial Cloud will link production systems, machinery and equipment of various manufacturers at the 122 Volkswagen manufacturing plants worldwide. The resulting data transparency and analysis is meant to enhance productivity at the sites.

Marubeni, 4R Energy to deploy large refurbished batteries

March 29 – Marubeni Corp and 4R Energy, along with SIGNET EV have achieved a Proof of Concept (PoC) using 4RE’slarge refurbished batteries for the development of the world’s first mass-productional EV charger in Namie-machi, Fukushima-Prefecture. The installation, with an output of more than 50kW, helps the community reduce electricity demand from the central power grid, which saves costs.

Regulators approve £300m Belfast power project

March 28 – Northern Ireland’s Department for Infrastructure (DfI) has approved plans for a £300 million gas-fired power project in Belfast. The 480 MW power station, developed by Belfast Power Holdings, will be situated in the city's Harbour Estate and provide energy to about 500,000 homes and businesses.

Capstone wins two orders in Mexico

March 27 – California-based Capstone Turbine has secured orders for two C200 and two C65 microturbine systems to be installed in industrial combined heat and power (CHP) plant projects in Mexico. An energy drink manufacturer ordered C200 turbine-based gensets mainly to use their thermal energy to create steam for its manufacturing process. The two C65s turbines, meanwhile, will be installed at a produce packager where thermal energy will be used to create chilled water used for vegetable packaging.