Energy Policy
The UK’s remaining coal-fired power stations will be shut by 2025 at the latest, Energy Secretary Amber Rudd is expected to say later. Unveiling the government’s new energy strategy, Ms Rudd will say that relying on “polluting” coal is “perverse”. Instead, gas will become “central” to the UK’s future, with building new gas-fired power stations an “imperative”. Environmental groups welcomed the move away from coal but criticised plans to focus on gas instead of renewables. Currently, coal provides almost a third (28%) of the UK’s electricity, but Ms Rudd will say that relying on the “ageing, often unreliable” plants “cannot be satisfactory for an advanced economy like the UK”. “One of the greatest and most cost-effective contributions we can make to emission reductions in electricity is by replacing coal fired power stations with gas,” Ms Rudd will say. Ms Rudd is also expected to say that investment in nuclear power is vital to the government’s policy. She believes that plans for new nuclear power stations, including at Wylfa in Wales and Moorside in Cumbria, could provide almost a third of the low carbon electricity the UK needs for the next 15 years. “Opponents of nuclear misread the science. It is safe and reliable,” Ms Rudd will say.
BBC 18th Nov 2015 read more »
The energy secretary, Amber Rudd, is to “reset” Britain’s energy policy on Wednesday in a direction that downgrades tackling climate change from its highest priorities but commits to closing all traditional coal-fired plants by 2025. In her biggest speech in the job, Rudd will say she wants policy to focus on making energy affordable and secure. She will say the aim is a “consumer-led, competition-focused energy system that has energy security at the heart of it”, and will suggest the balance has swung too far in favour of climate change policies at the expense of keeping energy affordable. Green campaigners are likely to be somewhat mollified by the fact she is likely to pledge to restrict coal-fired power by 2023 and all but eradicate it within the decade. Coal provides around 30% of the UK’s electricity but it is the most carbon-intensive of fossil fuels and environmentalists have long been pushing the Department for Energy and Climate Change (Decc) to set a date for phasing it out, preferably by 2023. To meet this goal, the UK will have to put a huge effort into getting enough gas-fired power stations built to meet demand.
Guardian 18th Nov 2015 read more »
Telegraph 18th Nov 2015 read more »
FT 18th Nov 2015 read more »
The US should be a “model” for countries seeking to tackle climate change because of the way it has reduced carbon dioxide emissions through increased use of natural gas, the American Petroleum Institute has said. The API, the influential oil and gas industry group, urged President Barack Obama to use the UN climate talks starting in Paris at the end of the month as an opportunity to showcase the success of the US in cutting emissions while sustaining economic growth.
FT 17th Nov 2015 read more »
Britain needs a new generation of gas-fired and nuclear power stations, the energy secretary will say today as a leading think-tank warns of the growing threat of blackouts. In her first major speech on energy policy, Amber Rudd will say that the new power stations will replace dirty coal-fuelled plants. New nuclear power plants at Wylfa in Wales and Moorside, near Sellafield in Cumbria, are expected to provide up to 30 per cent of low-carbon electricity by the 2030s and create 30,000 jobs, she will say. Ms Rudd wants to close all of Britain’s 13 coal-fired stations, which still generate nearly a third of all electricity. “We need to build a new energy infrastructure fit for the 21st century,” she will say. “Gas is central to our energy-secure future. In the next ten years, it’s imperative that we get new gas-fired power stations built.”
Times 18th Nov 2015 read more »
Energy and Climate Change Secretary Amber Rudd will today outline the government’s plans to “reset” the UK’s energy policy, highlighting how gas and nuclear power should play a key role in replacing the country’s fleet of ageing coal-fired power stations. In a much anticipated speech in London this morning, Rudd is expected to announce that energy security will be prioritised as part of a “new direction” for energy policy in the UK, following a series of controversial moves over the summer to cut support for renewable energy projects and energy efficiency measures. Today, she will also argue the government wants to deliver a “consumer-led, competition-focused energy system”, which prioritises keeping the lights on for “hard working families”. She will say nuclear power and gas provide the best opportunities for delivering on this goal, while still curbing carbon emissions. Rudd will accuse opponents of nuclear power of “misreading the science”, arguing it is both safe and reliable. However, it remain to be seen if she will address concerns raised by nuclear power advocates, who fear the government has chosen an outdated and costly technology for the reactors at Hinkley. “We are dealing with a legacy of under-investment and with Hinkley Point C planning to start generating in the mid-2020s, this is already changing,” she will say. “There are plans for a new fleet of nuclear power stations, including at Wylfa and Moorside. This huge investment could provide up to 30 per cent of the low carbon electricity which we’re likely to need through the 2030s and create 30,000 new jobs.”
Business Green 18th Nov 2015 read more »
A new report published today (18 Nov 2015) by the Centre for Policy Studies warns that Britain is on the verge of an energy crisis as electricity demand threatens to outstrip supply in early next year for the first time. Energy analyst Tony Lodge’s report – The Great Green Hangover: How to Cut Bills and Avoid an Energy Crisis – shows that decades of energy policy mismanagement have overseen the shutdown of energy plants vital to Britain’s long-term energy security. Now for the first time Britain will not have enough dispatchable energy generation capacity to cover forecast demand from next year due to the systematic early closure of power plants. The average dispatchable capacity remaining by the end of March 2016 is calculated to be 52,360MW – which contrasts with National Grid’s 2015/2016 Winter Outlook demand forecast of 54,200MW.
Scottish Energy News 18th Nov 2015 read more »
NFLA submission to House of Commons Energy and Climate Change Committee. What future low carbon electricity networks will need is flexible back-up generation which can be turned on and off quickly to provide electricity at peak times when renewables are not producing much. Large centralised baseload power stations will undermine moving towards a clean energy future, and simply result in more renewable electricity going to waste.Flexible renewable sources of electricity such as geothermal, biomass (from sustainable localsources) and anaerobic digestion which have identical variability to coal-fired power stations should be promoted. The UK should aim to double its international grid interconnector capacity by 2020. The UK should team renewables up with grid-scale storage so that surplus output is captured for use later when the sun fails to shine or the wind fails to blow. A National Policy Statement for energy storage should be developed to encourage would-be investors and developers in storage technology. A national strategy to install new district heating networks is required. New CHP Stations can provide the back-up flexible generation needed in a renewable dominated system, and heat stores working in conjunction with heat pumps can make the most of renewable electricity surpluses. Local authorities should be encouraged to establish energy service companies. New legal, planning and institutional frameworks as well as incentives will be required.
Parliament 17th Nov 2015 read more »
Energy Costs
The latest study by US investment bank Lazard has highlighted the extent to which wind and solar technologies are beating conventional fuels – coal, gas and nuclear – on costs of production, and also on abatement. The study, the “Levellised Cost of Energy Analysis 9.0 notes that utility scale solar PV has fallen 25 per cent in the last year alone, since its most recent study. Since 2009, when it began the analysis, solar and wind energy have fallen by 80 per cent and 60 per cent respectively. Lazard says that because of this, and despite big falls in the cost of natural gas in the US, wind and solar are beating conventional fuels in most situations, as revealed in their success in competitive capacity auctions.
Renew Economy 18th Nov 2015 read more »
In its first in-depth analysis on the costs of energy storage, US investment bank Lazard says storage is already competitive in some situations – particularly at the utility scale and in providing services such as frequency regulation that was previously the province of conventional fuels. Lazard for the past eight years has been producing an annual in-depth analysis of generation costs, tracking the fall in the costs of solar and wind energy in particular, and how they are now beating conventional fuels. The latest analysis shows wind and large-scale solar PV beating all conventional technologies on cost by a widening margin. And Lazard is hinting that battery storage is likely to follow the cost trajectory of renewable energy and be competitive without subsidies in many applications. In some cases, it already is.
Renew Economy 18th Nov 2015 read more »
Cybersecurity
Britain’s nuclear power stations could be more exposed to cyber attacks within months, experts have warned after the police force that protects them revealed they are considering using the “cloud” to store information. The Civil Nuclear Constabulary (CNC), the armed police force tasked with guarding all of Britain’s nuclear plants, has previously refused to use the new storage technology given much of its information is classified as “sensitive”. However the force has revealed it could start using cloud technology as early as April next year despite a series of high profile information breaches which raised questions about the software’s reliability.
Telegraph 9th Nov 2015 read more »
Areva
Negotiations over the government-backed bailout of French nuclear group Areva have hit a roadblock as none of the parties involved want to bear responsibility for a costly project in Finland. The agreement on a multibillion-euro rescue deal for Areva is supposed to be finalised by the end of this month, but important issues have yet to be resolved. People familiar with the situation said all the parties involved in the rescue package – Areva, EDF and the French government – were reluctant to assume liability for further problems with the nuclear group’s troubled Olkiluoto 3 power plant in Finland. The project is already 5bn euros over budget and nine years behind schedule. “EDF say they don’t want it, Areva say they can’t take the risk and the government is proving reluctant to put so much taxpayers’ money on the table,” said one person close to the negotiations. Several people involved in the talks expected a rescue package would be finalised for Areva, but the sticking points in the negotiations are significant. Olkiluoto 3 was the first time Areva, which manufactures nuclear reactors, took the lead role on the construction of a power plant. It was an attempt by former chief executive Anne Lauvergeon to get out from under the wing of French rival EDF, which typically managed the building of nuclear plants, but the project has unravelled on Areva. Areva, which is also supplying the reactor for the planned new nuclear power plant at Hinkley Point in the UK, reported a record 4.8bn euro net loss for 2014 under the weight of weak sales and crippling cost overruns on key projects, notably in Finland.
FT 17th Nov 2015 read more »
Toshiba
Toshiba Corp., the Japanese industrial group embroiled in a widening accounting scandal since April, slumped in Tokyo trading after reports questioning how the company booked losses at its nuclear power operations over two past fiscal years. The shares fell 5.9 percent to close at 295.2 yen on Friday, after tumbling as much as 9 percent to the lowest since December 2012 earlier in the day.Toshiba disclosed on Nov. 7 that its Westinghouse unit booked writedowns on new construction projects and automation services in fiscal 2012 and 2013. Nikkei Business online reported Nov. 12 that the charges totaled $1.3 billion and questioned whether the losses should affect how Toshiba accounts for the overall value of Westinghouse. Kyodo News also reported the total losses.
Bloomberg 13th Nov 2015 read more »
Radwaste
The pressing need to decommission the world’s ageing fleet of nuclear reactors has prompted a British engineer to splash out $318 million on a specialist that worked on cleaning up after the Fukushima disaster. WS Atkins has agreed to buy the projects, products and technology business of the private equity-owned EnergySolutions, of Salt Lake City, Utah. Heath Drewett, Atkins’ finance director, said that there were more than 400 reactors worldwide, of which about three quarters were more than 25 years old. This would provide “a huge wave of work for us” as they were shut down or maintained to keep them going. Atkins, which is working at Sellafield, in Cumbria, and which last year bought Nuclear Safety Associates, said that its nuclear business had experienced annual growth of more than 20 per cent a year over the past four years. It employs about 850 people and the purchase will add to that workforce by another 650.
Times 18th Nov 2015 read more »
Shares in WS Atkins, the British engineering consultancy designing the Riyadh Metro, touched their highest level in 18 months after it announced plans to acquire a nuclear services business. The company, which maintains some of the Britain’s railways and roads, said on Tuesday it would buy the nuclear services division of EnergySolutions for $318 million (206 million pounds) to help boost its capabilities in nuclear decommissioning.
Reuters 17th Nov 2015 read more »
Guardian 17th Nov 2015 read more »
Atkins said the move would also enhance the company’s market presence in the UK where it has strong a relationship with Hinkley Point C’s majority stakeholder, EDF, and uranium enrichment firm, Urenco. The news of the acquisition comes a week after Atkins’ UK and Eurrope chief executive Nick Roberts told Construction News the firm was establishing relationships with Chinese contractors with an eye on nuclear new build projects in the UK.
Construction News 17th Nov 2015 read more »
Nuclear Liabilities
Provisions for decommissioning nuclear power plants and disposing of nuclear fuel waste over the next two decades could weigh on European utilities’ credit ratings, Standard & Poor’s said in a report published on Monday.S&P said that at the end of 2014, nuclear liabilities of the largest eight nuclear plant operators in Europe totaled 100 billion euros ($107 billion), representing 22 percent of their aggregate debt as adjusted by the rating agency. The eight utilities are France’s EDF and Engie , Germany’s E.ON, RWE and EnBw , Sweden’s Vattenfall, Finland’s Fortum and the Czech Republic’s CEZ. “Given the tight headroom in the credit ratings of European utilities with heavy nuclear exposures, and that they generally operate with a high adjusted financial leverage, any changes in the valuation of their provisions could drag on their credit metrics and liquidity, and ultimately their credit ratings,” said S&P credit analyst Pierre Georges. He added that the value of nuclear provisions is more difficult to calculate than other debt-like obligations, such as pensions, and are also harder to compare between peer companies, because accounting methods are not standardised.
Reuters 16th Nov 2015 read more »
Europe
Why the EU must ditch gas in favour of efficiency and renewables. Gas should play no part in the EU’s energy transition: policy makers must see through the industry’s lobbying and invest in renewables and energy efficiency, argues Brook Riley of FoE Europe, Whether it’s spinning gas as a solution to climate change (“replace coal with gas” is the standard refrain), or taking up a dominant position in the Brussels’ renewables associations, the gas lobby is doing all it can to delay the energy transition. It’s succeeding too. Just look at the EU’s Energy Union strategy (the Commission is publishing an assessment this week). It was born out of a desire to end gas import dependency, but it puts gas in a prime position. How’s that for irony? The truth is that gas, like coal and oil, is incompatible with the EU’s climate commitments. The overwhelming scientific consensus is that the huge majority of fossil fuels, including gas, will need to remain in the ground if we are to avoid the worst effects of climate change. What’s more – contrary to the gas lobby’s claims – gas is no cleaner than coal. According to research from Stanford University, emissions from gas are comparable to coal when methane leakages during extraction and transportation are factored in. To put it bluntly, saying gas is a solution to climate change is a lot like claiming filter cigarettes prevent lung cancer. There’s no such thing as a clean fossil fuel. We need to think differently. Gas demand is already falling fast (-23% since 2010). Why subsidise external energy suppliers when there are many more benefits to be had from investing in domestic renewables and energy efficiency? According to the Commission’s own analysis, gas imports would be reduced by 2.6% for every additional 1% in energy savings. That’s the real solution to energy dependence. As for the economic benefits of prioritising efficiency and renewables, they’re overwhelming. GDP is expected to increase by 4.45% by 2030, if the EU meets its full cost-effective energy savings potential. Meanwhile, there are expected to be up to 3.4 million direct and indirect jobs in the EU renewable energy sector in 2030.
Euractiv 17th Nov 2015 read more »
Japan
The launch of the reprocessing plant in Rokkasho has been delayed again. The operator of the plant, Japan Nuclear Fuel Ltd. (JNFL) announced that the launch was postponed until the end of the first half of FY 2018 (i.e. September 2018). JNFL cited the need to complete safety upgrades and get regulatory approval.
International Panel on Fissile Materials 17th Nov 2015 read more »
Completion of Japan’s Rokkasho reprocessing plant and mixed-oxide (MOX) fuel factory have been postponed by around two years as work continues to comply with new safety requirements. An announcement from Japan Nuclear Fuels Ltd (JNFL) today explained that Rokkasho would be complete in mid-2018 rather than early 2016, while the MOX plant will be complete in mid-2019 instead of late 2017. Together the facilities will store used nuclear fuel from Japanese nuclear power plants before separating it into one stream of waste for disposal and another stream of uranium and plutonium that would be recycled in new MOX fuel assemblies. This work has previously been carried out for Japanese power companies at similar facilities in France and the UK.
World Nuclear News 17th Nov 2015 read more »
Argentina
China will finance and build two nuclear power plants in Argentina in a deal worth up to $15bn, underlining Beijing’s continued presence in Latin America despite its slowing economy. The deal comes amid a push to export China’s homegrown atomic technology, often by offering cheap technology and generous financing. It follows China’s move last month to take a one-third stake in a French-led project to build the first in a new generation of UK nuclear plants. The agreement with Argentina, signed in Turkey during the G20 meetings, will see China provide most of the financing for the two new plants at a time when Buenos Aires is locked out of global credit markets.
FT 17th Nov 2015 read more »
China National Nuclear Corp has clinched deals with Argentina, opening the doors for exports of nuclear equipment which might amount to 30 billion yuan ($4.7 billion) to the South American country. The State-owned CNNC has inked contracts for work related to Argentina’s fourth nuclear reactor and an agreement for a fifth nuclear power plant.
China Daily 17th Nov 2015 read more »
Vietnam
Viet Nam has witnessed significant steps in the development of nuclear power, said Arnold Soetrisnanto, chairman of the Indonesian Nuclear Society, yesterday while attending a workshop entitled “Public acceptance of nuclear technologies: sharing Asian experience” in the southern province of Ninh Thuan. In an assessment of Indonesian Nuclear Society and the International Atomic Energy Agency (IAEA) on abilities of a nation to develop nuclear power, Viet Nam scored 12 out of 19 points. State support is Viet Nam’s advantage, he said. The international workshop, held by the Viet Nam Atomic Energy Agency and Russia’s State Atomic Energy Corporation (ROSATOM), was a platform for nuclear electricity experts from Asian countries to share experience in attracting public acceptance of nuclear technologies. It is necessary to improve the public acceptance in the growth of nuclear power sector, which is still new in Viet Nam, as well as share roles of relevant agencies in developing Vietnamese nuclear power industry, Hoang Anh Tuan, director general of the Viet Nam Atomic Energy Agency said. The first nuclear power plant in Indonesia was selected to be located in Muria of Java island but encountered disagreement from the government and local residents.
Vietnam News 14th Nov 2015 read more »
Nigeria
With fossil power falling short of covering Nigeria’s energy demand, the chairman of the Nigeria Atomic Energy Commission (NAEC), Erapamo Osaisai, suggested that Nigeria could generate over 1,200 MW from each of its four proposed nuclear power plants.
Gas to Power Journal 17th Nov 2015 read more »
Renewables – Hydro
Perthshire North MSP John Swinney has officially opened a new Scottish hydro power project in Kinloch Rannoch. With an output of 350kW, the scheme has been constructed on the Allt Mor burn at Kinloch Rannoch. Located in a National Scenic Area and at the junction of two core paths the scheme has been designed to provide both educational and architectural interest to visitors. The powerhouse is fitted with a large viewing window and visitors can learn about the development of hydro power in the Tummel valley, from the adjacent 18th century mill house, through large scale development of grid connected hydro under the Hydro-Electric Development (Scotland) Act 1943, to the current developments under Feed in Tariffs.
Scottish Energy News 18th Nov 2015 read more »
Renewables – Offshore Wind
One of the most important parts of our work – making the case for offshore wind – stepped up a gear this week. For the first time, over the course of several days, the biggest names in the industry have come together, including RenewableUK, to take part in a series of co-ordinated events to increase awareness and understanding of how far the sector has come, and how far we can go. It won’t have escaped your notice as an avid BusinessGreen reader that we now have more than 10GW of offshore wind capacity either operational, under construction, or with financial support secured – double our current capacity. That’s enough to power 10 per cent of the UK’s electricity needs. Announcements of major offshore infrastructure projects achieving financial close within the last few weeks show that the UK remains the top destination for offshore wind investors. Not bad for an industry which began just 15 years ago with a couple of turbines off the coast of Blyth. We think that’s an achievement that’s worth exploring and amplifying.
Business Green 17th Nov 2015 read more »
Renewable Heat
Seven major renewable energy trade associations in Scotland-UK have signed a joint letter to Amber Rudd, Energy Minister, publically supporting comments she made in a recent select committee meeting – and calling for her to commit to continuing the renewable heat initiative (RHI). The government’s stance on renewable heat since the UK general election, has been unclear, and the continuation of the renewable heat initiative – a major policy supporting the renewable energy industry -has hung in the balance. The Minister emphasised that heat is essential to meeting government 2020 targets in front of the Energy and Climate Change committee in Parliament. The joint letter emphasises that the heat sector is critical to meeting legally mandated 2020 targets, but also “to our carbon budgets and the long term de-carbonisation of the UK’s energy system.” Nina Skorupska, Director, Renewable Energy Association, said: “A third of all UK carbon emissions originate from heat, and just about half of all UK energy is used for heating. Yet only 4.9% of our heat infrastructure is currently renewable and low carbon. “The RHI has been hugely successful, and has encouraged 12,000 installations in schools, hotels, offices and businesses, and 43,000 installations in homes. The RHI needs a renewed budget to continue to incentivise renewable heat, so we can reach our 2020 renewable targets.”
Scottish Energy News 18th Nov 2015 read more »
Community Energy
A two-week campaign has been launched to help community energy projects raise enough money to fund their projects before they become ineligible for tax relief. Climate change charity 10:10 has launched a two-week “Clean Energy Dash” funding campaign to help renewable energy projects rushing to close their share offers before the November 30 deadline, which was unexpectedly announced less than three weeks ago.
Business Green 16th Nov 2015 read more »
Energy Storage
The cost of batteries is falling to the point that they are becoming an increasingly viable option for uses such as supporting the stability of power grids, according to Lazard, the investment bank. Electricity storage has until recently been prohibitively expensive, but its emergence at an economically viable cost will enable increased use of wind and solar power, which are not always available. The cost of renewable energy has fallen sharply over the past decade as market growth, usually encouraged by subsidies, has enabled manufacturers of wind turbines and solar panels to benefit from economies of scale. Similar trends are now at work in electricity storage with investments such as Tesla’s battery “gigafactory”, now under construction in Nevada, greatly increasing manufacturing capacity. Within five years, Lazard believes, the price of batteries is likely to have fallen to the point that they will be competitive against back-up fossil fuel power generation for a wide range of uses. “Storage is looking far more optimistic in terms of innovation and material impact now,” said George Bilicic, global leader of Lazard’s power, energy and infrastructure practice. New electricity storage installed on to the grid to support wind and solar power is likely to grow more than 60-fold from 196 megawatts of capacity this year to 12,700MW in 2025, according to Navigant, a research firm. Jim Robo, the chief executive of NextEra Energy, told a conference in September he expected that after 2020, “there may never be another peaker built in the United States”, because electricity storage would be used instead.
FT 17th Nov 2015 read more »
Climate Conference
Talks between the French foreign minister, Laurent Fabius, and campaigners over the fate of a huge march before the forthcoming Paris climate summit have ended without agreement. In the wake of attacks in Paris last Friday, the French government proposed scaling down the protest from a march on 29 November – which organisers had hoped would draw hundreds of thousands of people – to a stationary rally. One activist source said organisers would respond flexibly to Fabius’s suggestions, but that a “kettled” rally of 5,000 people held in the Paris suburbs “would not be acceptable”.
Guardian 17th Nov 2015 read more »
