www.teitimes.com
March 2020 • Volume 13 • No 1 • Published monthly • ISSN 1757-7365
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
Driving cars of the
future
Headwinds onshore
Utilities are key to the future of
electric vehicles.
Page 13
Unlike offshore wind power, the
conditions onshore have been blustery.
Page 14
News In Brief
Wind continues to pick up
across globe
Wind energy continues to grow
worldwide and could become the
dominant energy source for power
generation by 2050, according to
new gures.
Page 2
PPA record drives US wind
energy
Record numbers of corporate and
utility power purchase agreements
(PPAs) helped to drive the US wind
energy sector to its third strongest
year on record.
Page 4
UOB activates Asia’s rst
solar industry ecosystem
U-Solar, Asia’s rst solar industry
ecosystem, has been launched by
United Overseas Bank (Thai) in
Thailand to power the development
and adoption of renewable energy
across the country.
Page 6
Germany oats hydrogen
strategy
Germany could build up to 5 GW
of hydrogen electrolysis capacity by
2030 under draft plans to develop a
green hydrogen industry.
Page 7
Renewables spike in
sub-Saharan Africa
Sub-Saharan African countries are
seeing increasing capital ows into
renewable energy, according to
analysis from research company
BloombergNEF (BNEF).
Page 8
Vestas leads rankings after
record 2019
Vestas has held its position as the
world’s largest wind turbine supplier
following a record order intake for
2019.
Page 9
Technology Focus:
Trading places
With the help of a new energy
management and trading platform,
energy managers can now trade
based on evidence and statistical
analysis via AI-driven technology,
with no need to rely on just the
opinion of a broker.
Page 15
Advertise
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The ght against global warming may have reached a signicant moment as growth in global
carbon dioxide emissions stalled for the rst time in two years. Junior Isles reports.
EU countries accelerate coal phase-out
THE ENERGY INDUSTRY
TIMES
Final Word
Junior Isles asks: is the
world really atlining?
Page 16
Global carbon dioxide output may
have peaked following two years of
growth, after CO
2
emissions were un-
changed at 33 gigatonnes in 2019, ac-
cording to the International Energy
Agency.
IEA gures showed that energy-re-
lated CO
2
output rose in both 2017
and 2018 and earlier studies had sug-
gested this trend was set to continue,
casting doubt on efforts to drastically
cut emissions to mitigate climate
change.
The IEA says the fall was primarily
due to declining emissions from
electricity generation in advanced
economies, thanks to the expanding
role of renewable sources (mainly
wind and solar), fuel switching from
coal to natural gas, higher nuclear
power generation and weaker elec-
tricity demand.
This resulted in power generation
from coal plants falling by almost 15
per cent last year. Other factors in-
cluded milder weather in several
countries and slower economic
growth in some emerging markets,
according to the IEA report.
Commenting on the ndings, Dr
Fatih Birol, the IEAs Executive Di-
rector, said: “The clean energy transi-
tion is starting to accelerate very
strongly. This makes me hopeful we
are seeing a peak in emissions and
they will now start to decline.”
Across advanced economies, emis-
sions from the power sector declined
to levels last seen in the late 1980s,
when electricity demand was one-
third lower than today, said the IEA.
“A signicant decrease in emissions
in advanced economies in 2019 offset
continued growth elsewhere. The
United States recorded the largest
emissions decline on a country basis,
with a fall of 140 million tonnes, or
2.9 per cent. US emissions are now
down by almost 1 gigatonne from
their peak in 2000.
“Emissions in the European Union
fell by 160 million tonnes, or 5 per
cent, in 2019 driven by reductions in
the power sector. Natural gas pro-
duced more electricity than coal for
the rst time ever, meanwhile wind-
powered electricity nearly caught up
with coal red electricity. Japan’s
emissions fell by 45 million tonnes,
or around 4 per cent, the fastest pace
of decline since 2009, as output from
recently restarted nuclear reactors
increased.
“Emissions in the rest of the world
grew by close to 400 million tonnes in
2019, with almost 80 per cent of the
increase coming from countries in
Asia where coal red power genera-
tion continued to rise,” states the
report.
Dr Birol, commented: “This wel-
come halt in emissions growth is
grounds for optimism that we can
tackle the climate challenge this de-
cade. It is evidence that clean energy
transitions are underway – and it’s
also a signal that we have the oppor-
tunity to meaningfully move the
needle on emissions through more
ambitious policies and investments.”
To support these objectives, the IEA
will publish a ‘World Energy Outlook
Special Report’ in June that will map
out how to cut global energy-related
carbon emissions by one-third by
2030 and put the world on track for
longer-term climate goals.
Continued on Page 2
Several of the EU’s major economies
have announced plans to accelerate
the phase-out of coal red power
generation.
Last month British Prime Minister
Boris Johnson said Britain is set to
bring forward by a year its deadline
for phasing out coal. The govern-
ment’s goal is to bring coal’s share to
zero, by closing the last coal red
plant in the country by October 1,
2024. The previous deadline for that
was 2025, announced in 2015.
The move was announced during
the Year of Climate Action launch
event ahead of the COP26 Climate
Summit in Glasgow in light of statis-
tics showing that Britain’s reliance
on coal red power generation has
dropped from 70 per cent in 1990
to around 40 per cent in 2012 and
to less than 3 per cent in 2019. The
contribution of renewables, mean-
while, is now “at record levels”
standing at 33 per cent.
The news came as the UK Govern-
ment’s Ofce of Gas and Electricity
Markets (Ofgem) set out its plan to
bring the country’s emissions to net
zero. The Decarbonisation Action
Plan details nine steps the agency will
take to achieve the UK’s target of net
zero emissions by 2050.
The plan to bring forward the target
date for phasing out unabated coal
will be subject to a public consulta-
tion. It will be undertaken as part of
the country’s efforts to decarbonise its
power sector as it aims to achieve a
net-zero emissions level by 2050.
According to the latest government
statistics, the UK’s greenhouse gas
emissions have declined by 2.1 per
cent between 2017 and 2018 mainly
thanks to the wave of coal plant clo-
sures. Last year, Great Britain, which
now has four active coal generators,
ran for 3700 hours, or more than ve
months in total, without using coal.
“This phenomenon of global warm-
ing is taking its toll on the most vul-
nerable populations around the plan-
et,” Johnson said. “That’s why we are
pledged here in the UK to deliver net
zero by 2050. We are the rst major
economy to make that commitment,
and it’s the right thing to do.”
Spain also recently said it was
speeding up plans to phase-out coal.
At the start of February the country
said that only three out of 15 coal red
plants in the country will remain op-
erational by 2022. Coal’s share of
power production has been reduced
from 15 per cent to 5 per cent in less
than a year, and it will be completely
replaced before 2030.
In January German Chancellor An-
gela Merkel and ministers from the
coal-mining states of Saxony-Anhalt,
Saxony, North Rhine-Westphalia and
Brandenburg agreed a shutdown plan
for the country’s coal plants. Plants
would be closed by 2035, instead of
2038 as previously planned.
At the start of February Uniper pre-
sented its closure programme for its
hard coal red power plants in Ger-
many. The company intends to close
about 1.5 GW of hard coal capacity
by year-end 2022, corresponding to
three generating units at the Schol-
ven power plant in Gelsenkirchen
and the Wilhelmshaven power plant.
In addition, Uniper plans to shut
down another 1.4 GW at Staudinger
and Heyden power plants by 2025 at
the latest.
Global
emissions stall
as coal red
generation falls
Dr Birol: “grounds for optimism”
THE ENERGY INDUSTRY TIMES - MARCH 2020
3
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THE ENERGY INDUSTRY TIMES - MARCH 2020
4
Americas News
Siân Crampsie
The US government has announced
funding to develop coal red power
plants with the exibility needed to
support future grids.
The Department of Energy (DOE)
will award up to $64 million of cost-
shared funding to projects aimed at
developing next-generation coal tech-
nologies that are “transformational”
in their efciency and exibility.
The DOE expects to spread the award
across some 14 projects as part of its
Coal FIRST (Flexible, Innovative,
Resilient, Small, Transformative)
initiative.
“Coal is a critical resource for grid
stability that will be used in developing
countries around the world well into
the future as they build their econo-
mies,” said US Secretary of Energy
Dan Brouillette. “Investing in R&D
for cleaner coal technologies will al-
low us to develop the next generation
of coal plants for countries to use this
valuable natural resource in an envi-
ronmentally responsible manner.”
“The evolving US energy mix re-
quires cleaner, more reliable, and
highly efcient plants,” noted Assis-
tant Secretary for Fossil Energy Ste-
ven Winberg. “Technologies devel-
oped for the Coal FIRST initiative will
lead to just that – reliable, highly ef-
cient plants with zero or near-zero
emissions.”
The National Energy Technology
Laboratory (NETL) will manage the
projects supporting Coal FIRST,
which is a joint initiative among the
Ofce of Fossil Energy’s Transforma-
tive Power Generation, Supercritical
Carbon Dioxide Technology, Ad-
vanced Turbines, Gasication Sys-
tems, and Carbon Capture research
programmes.
Last month the DOE also announced
$64 million of funding to nance re-
search and development (R&D) proj-
ects that will further expand the coun-
try’s hydrogen (H
2
) market.
The funding will be extended by the
DOE with the goal to open new markets
for the so-called H2@Scale initiative
– a concept that explores the potential
for wide-scale hydrogen deployment
in various applications. It is also ex-
pected to lift the scale of hydrogen
production from the current 10 million
tonnes per year.
Up to $15 million of the total fund-
ing will go for projects aiming to cut
the cost of H
2
from MW- and GW-
scale electrolysers, while an addi-
tional $15 million will target cost re-
ductions of compressed gas and
hydrogen storage tanks by advancing
carbon-bre technology.
Some $10 million will be channelled
for advancing the development of do-
mestically manufactured fuel cell
components and up to $8 million are
earmarked for R&D on the use of hy-
drogen in steel manufacturing.
Chilean power utility has boosted the
output of its proposed Horizonte wind
farm from 607 MW to 980 MW.
The utility has submitted the envi-
ronmental impact study for the
planned project in the Atacama desert
commune of Taltal in the Antofagasta
region. According to the ling with
the Chilean environmental evaluation
service (SEA), the company antici-
pates investments of up to $700 mil-
lion will be required for the project.
The Horizonte project will feature
140 wind turbines with up to 7 MW
capacity, installed across an 8000 ha
site.
A recent report by Banco Security
said that Colbun has “solid margins”
that would enable it to invest more
heavily in renewable energy.
Banco Security added that overall in
Chile, the electricity sector enjoyed a
healthy nancial performance in 2019
despite the riots and protests that en-
gulfed Chile during the fourth quarter.
However some new legislation
drawn up in response to the riots – in-
cluding a price stabilisation mecha-
nism and a distribution law that re-
duces the protability of power
distributors would affect the sector
in 2020.
Other negatives in the market in-
clude the coal retirement plan, which
will affect the largest utilities with
coal-red capacity, and a continued
drop in hydro generation due to the
drought.
n Xinjiang Goldwind Science & Tech-
nology has connected the Loma Blan-
ca II wind farm its rst wholly-
owned project in South America – to
the Argentine grid. Loma Blanca II is
part of the 250 MW four-project Loma
Blanca wind complex in Chubut prov-
ince, Patagonia. The Chinese wind
turbine company acquired the Loma
Blanca portfolio along with the 97.65
MW Miramar wind project in Buenos
Aires province.
US policy on solar energy equipment
imports has cost the country around
10.5 GW of new capacity, according
to the Solar Energy Industries Asso-
ciation (SEIA).
A market impact analysis carried out
by the SEIA says that tariffs imposed
on imported solar cells and modules
have “devastated” the sector with the
loss of more than 62 000 jobs and $19
billion of investment since 2017.
In addition to its economic impact,
tariffs on solar have caused 10.5 GW
of solar installations to be cancelled,
SEIA said in a statement.
The analysis comes as the mid-term
review process for the tariffs begins at
the US International Trade Commis-
sion on December 5th, and covers
tariff impacts from the beginning of
the 2017 trade complaint by Suniva
through the end of the tariff lifecycle
in 2021.
“Solar was the rst industry to be hit
with this administration’s tariff policy,
and now we’re feeling the impacts that
we warned against two years ago,” said
Abigail Ross Hopper, President and
CEO of the Solar Energy Industries
Association. “This stark data should
be the predicate for removing harmful
tariffs and allowing solar to fairly com-
pete and continue creating jobs for
Americans.”
The US administration imposed Sec-
tion 201 tariffs on solar goods in early
2018, with a 30 per cent tariff on solar
cells and modules.
The policy has helped solar compa-
nies with manufacturing facilities in
the USA such as Suniva, which
brought the original complaint to the
International Trade Commission.
According to SEIAs analysis, each
new job created by the tariff results in
31 additional jobs lost, 5.3 MW of
solar deployment lost and nearly $9.5
million of lost investment.
According to the report, uncertainty
caused the market to lose out on 3 GW
of installations as rumours and actual
tariffs disrupted contracts in 2017 and
2018. The actual tariffs then reduced
the market for new projects by 7.5 GW
from 2019 - 2021.
The reduced solar deployment g-
ures will also impact the USAs emis-
sions, it added, because higher prices
for solar energy push economics in
favour of substitutes, including gas-
red power plants.
Tariffs on solar are most harshly af-
fecting nascent solar markets includ-
ing Alabama, Nebraska, Kansas, and
the Dakotas. These markets “won’t be
able to get off the ground” because
tariffs make solar uncompetitive, SEIA
said in a statement.
The Section 201 solar tariffs began
at 30 per cent in 2018, and ramped
down to 25 per cent in 2019, 20 per
cent in 2020 and 15 per cent in 2021.
US funding backs coal, H
2
Colbun wind farm
swells
US loses
out in solar
tariff war
Brazil eyes offshore prize
Renewable energy developers are
showing signs of interest in Brazil’s
offshore wind sector.
BI Energia, a Brazilian-Italian joint
venture, has plans to invest BRL5 bil-
lion ($1.2 billion) in the offshore wind
sector of Brazil’s Rio Grande do Norte
state, according to a statement by the
local government
The state has an offshore wind en-
ergy potential of 200 GW, according
to the state government, which is
developing a wind atlas to help attract
investors.
BI Energia is also developing a 600
MW offshore wind farm off the coast
of neighbouring Ceara state and has
announced plans to hold a public
hearing on the proposed project later
this month [March].
The Caucaia offshore wind farm
will have 48 offshore wind turbines
and 11 near-shore turbines located
south of Fortaleza. It will be Brazil’s
rst offshore wind farm, with turbine
installation planned to start in late
2021, the company says.
A recent study by Brazil’s state-
owned energy research rm EPE said
that the country has a total offshore
wind energy potential of 700 GW in
water depths of up to 50 m.
However it indicated that a lot of
changes will need to be made for the
country to reach its offshore wind
potential, including the adaptation of
environmental licensing procedures
and establishing supply chains.
n Next-generation focus for coal n $64m for H
2
research
THE ENERGY INDUSTRY TIMES - MARCH 2020
5
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THE ENERGY INDUSTRY
TIMES
The contracts are a key step in
TVO’s work to prepare the 1600
MW Olkiluoto 3 (OL3) for com-
mercial operation. They will cover
nuclear plant outage and mainte-
nance scopes, including engineer-
ing, instrumentation and control
(I&C) and non-destructive testing
services.
“Our presence in Finland will al-
low us to effectively deliver these
service contracts for the Olkiluoto 3
EPR and positions us to further sup-
port our utility partners in Finland
and Sweden,” said Catherine Cor-
nand, Senior Executive Vice Presi-
dent of Framatome’s Installed Base
Business Unit.
Valmet will supply a ue gas condens-
ing plant to Helen Ltd’s Vuosaari C
bioenergy heating plant in Helsinki,
Finland.
The new bioenergy heating plant
will achieve very high energy ef-
ciencies, as the heat from ue gases
will be recovered to increase district
heat production by 69 MW with
Valmet’s technology.
Valmet’s delivery will consist of a
ue gas condensing plant and con-
densate treatment equipment, in-
cluding a boiler make-up water pro-
duction system. The plant will be
handed over to Helen in December
2022.
Samsung C&T Corp., the construction
unit of Samsung Group, has secured a
Won1.15 trillion ($970 million) deal
to build a power plant in the United
Arab Emirates.
Under the deal with F3 Holding
Company B.V., Samsung C&T will
build a 2 400 MW combined cycle
power plant in Qidfa in the Emirate
of Fujairah by the end of April
2023.
Siemens has won an order from Be-
larus to supply six industrial gas tur-
bines to state-run energy provider
RUE Minskenergo.
It will supply six SGT-800 gas tur-
bines for a new gas red power
plant being developed in Minsk,
which will boost grid stability and
the reliability of power supplies in
Belarus.
The 300 MW plant will be de-
signed for 700 operating hours and
350 cold starts per year, Siemens
said. Commissioning is scheduled
for December 2021.
Siemens’ complete scope of sup-
ply includes the six SGT-800 gas
turbines as well as associated gener-
ators and the control system PCS 7.
It also includes the gas receiving
station as well as high- medium-,
and -low-voltage equipment.
GE has been selected to provide gen-
eration equipment and 20-year ser-
vices for Azito’s phase IV extension
combined cycle power plant in Côte
d’Ivoire.
Under the order, placed by Azito
Energie, GE will supply its GT13E2
gas turbine in combined cycle con-
guration, one heat recovery steam
generator, one steam turbine gener-
ator, condenser and associated sys-
tems and maintenance services for
20 years.
The extension will add 253 MW
to the gas red power plant, located
in Yopougon district of Abidjan in
Côte d’Ivoire.
installation of piping systems for the
construction of the new nuclear pow-
er plant in the South West of England.
The £58 million ($74.13 million)
contract will be completed by 2025
and demonstrates Blingers “out-
standing capabilities” on large-scale
new-build projects, the company
said. It will provide execution de-
sign, pre-fabrication and supply of
pipework for the balance of plant
package, which comprises piping
systems that support the operation
of the power station. The piping
systems consist partly of steel and
partly of glass-reinforced epoxy
(GRE) pipework.
Bilnger was already recognised
as a strategic supplier to EDF’s
Hinkley Point C project in 2018 and
has since received contracts worth
€20 million for design preparation
and planning work. In November
2019, EDF reafrmed its intention
to award the NSSS (Nuclear Steam
Supply System) contract to Biln-
ger. The award is expected later in
2020.
Danish wind turbine manufacturer
Vestas has secured a wind turbine sup-
ply contract from its Swedish cus-
tomer Stena Renewables.
According to the contract, Vestas
will supply its EnVentus V162-
5.6MW turbines for installation at
the Riskebo wind energy project in
Hedemora municipality, Sweden.
The 39 MW project will be the rst
in the country to use that turbine
type.
The contract includes supply, in-
stallation and commissioning of the
wind turbines and a 30-year service
agreement. Vestas is planning to de-
liver the turbines by the third quar-
ter of 2021, with commissioning
planned for the fourth quarter of
2021.
MHI Vestas Offshore Wind to supply
its WindStar transformers to the Triton
Knoll offshore wind farm, 33 km off
the east coast of England.
MHI Vestas will deliver 90 wind
turbines for the wind farm and
ABB’s WindSTAR transformers
will be installed in each turbine.
The transformers are designed to t
inside the wind turbine and can
withstand strong vibrations, sudden
movements and variable electrical
loading, typical of wind power.
The transformers also increase
voltage to 66 kV, the highest volt-
age category for wind transformers.
Marine energy rm Minesto has
signed a power purchase agreement
(PPA) with Faroese utility SEV for a
proposed tidal energy project in the
Faroe Islands.
The PPA comprises both the
planned installations of two 100 kW
systems of Minesto’s subsea kite
technology and an additional 2 MW
allocated for installations of utility-
scale tidal energy systems.
Minesto eventually hopes to in-
stall up to 70 MW of tidal energy
capacity in the Faroe Islands, which
has set a goal of sourcing 100 per
cent of its electricity needs from re-
newable energy by 2030.
Framatome has signed a series of ser-
vice contracts with Finnish utility
TVO to support the long-term opera-
tion of the Olkiluoto 3 nuclear power
plant.
Spanish civil engineering group
Obrascon Huarte Lain (OHL) has se-
cured two contracts worth €80 million
($86.4 million) to build 136 MW of
renewable energy projects in Chile.
The company was awarded the en-
gineering, procurement and con-
struction (EPC) contract by Austria-
based renewables investor Clean
Capital Energy Group (CCE) for an
86 MW solar photovoltaic (PV)
project in the region of Atacama.
Alongside the full EPC, the scope
of the €70 million Atacama deal in-
cludes operation and maintenance
(O&M) services, OHL said.
The second contract, worth €10
million, was awarded by Spanish
renewables developer OPD Energy
SA. The agreement covers the bal-
ance of plant (BOP) for the 50 MW
La Estrella wind project in Chile’s
O’Higgins region.
The Nordex Group has received an
order to supply the turbines for the
fourth construction phase of a wind
farm complex in Brazil.
The wind farm is located in the
state of Rio Grande do Norte near
to the city of São Miguel do Gosto-
so and is being developed in four
phases. Nordex will supply 24 of its
AW132/3465 wind turbines for the
fourth phase, bringing its overall
capacity to over 256 MW.
Nordex will install the 24 turbines
on 120 m concrete towers. The con-
tract also includes a long term ser-
vice agreement for maintenance and
repair of the turbines for a period of
15 years.
Candu Energy has been awarded two
ve-year vendor of record (VOR)
contracts by Canada’s Ontario Power
Generation (OPG).
The rst VOR contract is for ma-
chine shop services to support
OPG’s facilities while the second
contract covers nuclear safety anal-
ysis at Darlington, Pickering and
the Western Waste Management Fa-
cility adjacent to Bruce Power.
Under the contract for nuclear
safety analysis, SNC-Lavalin’s team
of nuclear safety experts, project
managers and reactor engineers will
deliver projects important to safety
for the workers, environment and
public.
The scope of work under the ma-
chine shop services contract will in-
clude machining, fabrication, heat
treatment, welding and assembly of
equipment for all OPG-owned sites.
Siemens Gamesa Renewable Energy
(SGRE) has won a 205 MW turbine
order for part of a 400 MW wind en-
ergy complex in Alberta, Canada.
Suncor Energy has placed an or-
der for 45 SG 4.5-145 turbines with
exible power rating for the Forty
Mile wind power project. SGRE
will also maintain the machines for
20 years following their commis-
sioning in 2021.
The entire capacity of the Forty
Mile wind farm will be switched on
in December 2022. It will comprise
a total of 89 turbines.
MHI Vestas Offshore Wind has been
selected as the preferred turbine sup-
plier for the 300 MW Zhong Neng
offshore wind farm in Taiwan.
The company says it is in the nal
stages of developing a local supply
chain for the project, which is being
developed by China Steel Corpora-
tion and Copenhagen Infrastructure
Partners (CIP). Local industrial
partners will be unveiled in the next
few weeks, it added.
The wind farm is due to go into
operation in 2024.
Vestas has won an order from an un-
named customer to deliver 52 MW of
wind turbines for a project in China.
Under the contract, the manufac-
turer will supply 12 units of its
V150-4.2 MW turbines in 4.3 MW
power optimised mode. It expects
to start delivering the turbines in the
last quarter of this year and com-
mission them in the same quarter.
Bangladeshi developer Jamuna Power
has awarded Wärtsilä a contract to sup-
ply a 78 MW power plant to support
the growth of an industrial complex in
northeast Bangladesh.
Wärtsilä will supply eight of its
34SG engines on a fast track basis
for installation at the Jamuna indus-
trial Park, which is in need of an in-
dependent power supply to ensure
reliability and support growth.
Delivery of the Wärtsilä equip-
ment will be completed during the
rst half of 2020, and the plant is
expected to become fully operation-
al in early 2021.
Bharat Heavy Electricals Limited
(BHEL) is inviting tenders for contrac-
tors to set up a 100 MW AC oating
solar project for the National Thermal
Power Corporation (NTPC) in Telan-
gana, India.
BHEL won a contract to develop
the $3.66 million plant in December
2018. It has already launched a ten-
der process for the design and sup-
ply of the project’s oatation plat-
form.
The scope of work includes the
assembly of oatation devices and
is expected to be completed within
six months of the contract award.
Raghuganga Hydropower Limited
(RGHPL), a unit of the Nepal Electric-
ity Authority (NEA), has placed an
order with BHEL for the electrome-
chanical works for the Rahughat hy-
dropower project in Nepal.
Under the order, BHEL will carry
out the design, engineering, manu-
facturing, supply, erection and com-
missioning of the complete electro-
mechanical package involving
supply of two Vertical Pelton Tur-
bines (20 MW each) along with as-
sociated equipment, matching gener-
ators, governors, controls and
instrumentation, protection system,
transformers, 220 KV switchyard
and balance of plant (BoP) packages.
Bilnger has won a contract from Hin-
kley Point C for the execution design,
supplier management, fabrication and
Americas
Asia-Pacic
OHL bags 136 MW Chile
contract
Nordex turbines for
83 MW Rio Grande do
Norte wind farm
MHI picked for Zhong
Neng
Bilnger wins Hinkley
contract
Stena orders Vestas units
ABB to deliver Triton
transformers
Minesto signs Faroe PPA
Samsung wins UAE plant
contract
Success for Siemens in
Belarus
GE equipment to power
Azito extension
Helen opts for Valmet
Wärtsilä boosts
Bangladesh growth
Success in China for Vestas
BHEL launches oating
solar tender
Raghuganga places BHEL
order
OPG awards VOR
contracts
Siemens bags 205 MW
Canadian order
International
International
Europe
10
THE ENERGY INDUSTRY TIMES - MARCH 2020
Tenders, Bids & Contracts
Framatome signs OL3
service contracts
THE ENERGY INDUSTRY TIMES - MARCH 2020
13
Industry Perspective
A
shift to electric vehicles (EVs)
has never been more viable
than it is right now. For start-
ers, consumers are opening up their
minds to more environmentally
friendly forms of transportation. This
could be largely due to advance-
ments in EV technology increasing
vehicle range and new models and
options making the price tag more
tenable to a wider range of buyers.
Currently, Tesla is selling around
40 000 Model 3s a month, and every
major manufacturer from Porsche to
Volkswagen has new models in the
making.
But electric vehicles aren’t just a
viable option. Soon, for motorists,
they’ll become one of the only op-
tions. Just last month, the UK gov-
ernment announced it will ban the
sale of all polluting cars by 2035,
and all eyes are on EVs as an alter-
native. The International Energy
Agency predicts the installed base of
EVs could reach as much as 125
million in 2030, compared to 3.1
million in 2017. But is our utility in-
frastructure ready for so many more
cars plugging in?
While the rise of EVs will help in
our global goal of being more envi-
ronmentally friendly, it cannot hap-
pen without an impact on our exist-
ing electricity grid. The grids were
built a long time before even cars
were a commercially viable consum-
er product – let alone EVs. So, as
transportation evolves from gas to
the grid, utility retailers need to start
factoring in the substantial increase
in energy demand across the country,
but with peaks in certain areas.
Estimates suggest the shift to EVs
will mean peak energy loads will
grow from 1 to 4 per cent. That
doesn’t seem like a lot, but it could
bring with it volatile, unpredictable
energy spikes at both a local substa-
tion and feeder level. In certain ur-
ban areas, where the population is
denser, EV charging could be re-
sponsible for as much as 30 per cent
peak growth. For individual house-
holds, the impact will be just as sig-
nicant, with energy usage increas-
ing by 15 per cent or more. And
during peak times, energy use could
even double.
The year 2035 isn’t that far away,
so the pressure is mounting now for
utility providers to start planning for
the shift if we’re to minimise its ef-
fects. The UK energy regulator, Of-
gem, has proposed system reforms to
support the electric vehicle revolu-
tion, planning for extra grid capacity
to be built. The government’s ‘Auto-
mated and Electric Vehicles Act’ has
made it easier to install charging
points at motorway services, mean-
while. But how do utility providers
work out where to expand or in
which locations to add additional
charging points?
The rst step will be understanding
the impact EVs are currently having
on the grid, including full visibility
of the current footprint of EVs with-
in concentrated areas, as well as the
energy consumption habits of their
owners.
Luckily, technology is available to
help utilities better understand these
factors. With machine learning and
advanced analytics added to data in-
telligence from household energy
patterns and Advanced Metering In-
frastructure data (where available),
utilities can now detect and disaggre-
gate the presence of EVs within a
household. Using this technology,
utility companies can glean the time
and frequency of charging, and as
such, better predict energy consump-
tion and forecast future demand as
more EVs come online.
This is critical for several reasons.
First, it helps time and resource-
strapped utilities make needed as-
sessments on grid investments. They
can then assess whether enhance-
ments are needed to meet supply and
demand today or whether customer
engagement programmes can help
curb and even-out the ow of charg-
ing at peak times.
This insight also allows utilities to
become trusted advisors to custom-
ers who may be in the dark as to
how owning an EV is impacting
their energy footprint and bill. By
giving customers insight into both
these factors, utilities can incentivise
EV owners to change their charging
behaviour to plug-in at off-peak
times – saving them money and sup-
porting the health of the energy grid.
In the future, similar engagement
programmes could be used to buy
back unused energy from their cus-
tomers EV batteries, further benet-
ting the customer while balancing
supply and demand in times of need.
EVs are set to change the way we
get from A to B, and are also going
to change the way we consume ener-
gy. But it’ll be a disaster if the grid
just isn’t ready to support an inux
of EVs on the road. Utilities need to
start planning now, to manage the
changes that the EV explosion is go-
ing to bring. Advanced analytics and
machine learning are helping utilities
manage the shift, and ensuring the
impact of EVs is a positive one, for
consumers and energy grids alike.
Dan Byrnes is Senior Vice President
of Product Development at Oracle
Utilities.
The UK recently announced plans to ban all polluting cars by 2035. Any country going down this path, however, will
need to make changes to its existing grid infrastructure to manage the added demand from electric vehicles, says
Oracle Utilities’ Dan Byrnes
Utilities are key to the cars
of the future
Byrnes: Electric vehicles
aren’t just a viable option.
Soon, for motorists, they’ll
become one of the only
options
Global EV count climbs to 7.9 million
The number of electric vehicles (EVs) on the road worldwide has
risen to around 7.9 million in 2019, according to a recent report
by the Centre for Solar Energy and Hydrogen Research Baden-
Württemberg (ZSW).
In terms of totals, China remains the global leader with 3.8
million EVs, followed by the USA with nearly 1.5 million. Nor-
way takes third place with 370 800. Japan is in fourth place with
around 300 000 e-cars, followed by France with 274 100 and the
United Kingdom with 235 700. Germany is in seventh place with
230 700 electric vehicles, which is one higher than the previous
year’s placing.
New registrations reached a record high in 2019 at 2.3 million
vehicles worldwide. However, the global growth rate was just
four per cent, compared to 74 per cent in the previous year. This
development is largely attributable to the reduced subsidies for
battery-powered vehicles in China and the USA. Even so, the
number of new registrations in these countries approached the
previous year’s marks with 1.204 million in China, down 52 000
from the previous year, and 329 500 in the USA, down 31 800
from 2018.
In Europe, Germany bucked the international trend as the
number of new registrations continued to rise, topping last year’s
24 per cent growth rate with 61 per cent this year. The country is
now third worldwide with 108 600 newly registered electric cars,
moving up one place from last year’s showing. Norway follows in
fourth place with 81 540 newly registered vehicles.
A different picture emerges when it comes to EV’s share of total
new passenger car registrations. More than one of every two new
passenger cars in Norway is electric. This 57 per cent share is the
largest worldwide. By comparison, electric cars account for three
per cent of new registrations in Germany, ve per cent in China
and two per cent in the USA.
The report encompasses only those passenger cars and light
commercial vehicles with battery-powered electric drives, range
extenders and plug-in hybrids – that is, all vehicles that are
charged externally with electrical power. It does not factor in full
hybrid vehicles that can cover shorter distances with a relatively
small battery, but cannot be charged externally; nor does it
include mild hybrids and vehicles equipped with fuel cells. This
assessment is based on data from the German Federal Motor
Transport Authority, government agencies and NGOs abroad, and
other sources.
The authors of the report were able to ascertain the number
of previously and newly registered electric vehicles in countries
worldwide. However, data on specic makes and models is not
available on a global scale. The authors therefore based their
analysis of newly registered makes and models on data sourced
from the 18 largest markets for e-vehicles. ZSW says its gures
represent a conservative assessment of actual developments.
THE ENERGY INDUSTRY TIMES - MARCH 2020
15
Technology
With the help of a new energy management and trading platform, energy managers can now trade based on evidence
and statistical analysis via AI-driven technology, with no need to rely on just the opinion of a broker.
Junior Isles explains.
E
nergy management today is
not just about reducing the
cost of consumption. With
exible markets and the ability to
trade, there are tremendous com-
mercial opportunities for energy
consumers, if their energy managers
can make more accurate trades
more reliably.
Last year, UK energy management
consultants ZTP introduced what it
sees as a revolutionary software plat-
form that could be a game-changer
in terms of managing energy costs
and mitigating risks on energy
trades.
ZTP was established in 2012, orig-
inally procuring energy for real es-
tate clients. Joe Warren, co-founder
and Director explained the challeng-
es facing energy managers in the
sector at the time.
“The immediate challenge back
then was getting hold of data. Every-
thing was run wholeheartedly manu-
ally. There were individual sites do-
ing individual contract negotiations,
getting individual bills by PDF and
paying them, which would then go
onto an accounting system some-
where else. We had to give people
the ability to report on their costs,
consumption and carbon emissions.”
To address the issue ZTP devel-
oped its Trace software, which es-
sentially digitalised the energy pro-
curement, bringing visibility to
consumption patterns across multi-
ple buildings. This in turn then
opened up the exibility market to
ZTP. “Suddenly we had a big
enough consumption to allow us to
start trading the energy for our cli-
ents,” said Warren. Taking this next
step, however, was not straightfor-
ward.
Warren explained: “There was a
massive challenge on the data side
the visibility of what’s going on:
what’s my open position, what’s my
close position? For example, if the
market moves two per cent today,
does that mean my budget of £10
million has jumped two per cent? Or,
if you consider that non-commodi-
ties represent more than half the bill,
and I’ve already locked-out more
than 80 per cent of my position, a
two per cent rise may look scary on
a graph but on my budget it’s only a
matter of pounds. We had none of
this visibility whatsoever.”
ZTP therefore set about building
Kiveev, which is essentially a plat-
form to improve business perfor-
mance and mitigate risk. “It started
off as this admin piece but we soon
realised there was a massive oppor-
tunity on the risk management ele-
ment,” said Warren.
Kiveev has been designed to digi-
talise the procurement and manage-
ment of ex power and gas con-
tracts, providing users with enhanced
clarity of position, risk mitigation,
time saving and budget control.
ZTP says it spotted a gap in the
market whereby many domestic and
international multi-site businesses
buying high volumes of energy on
exible/monthly contracts, had no
system in place to monitor and fore-
cast their energy usage, analyse cur-
rent market prices, forecast future
prices or build-in accurate risk
calculations.
“Basically, what we are saying is if
today’s [energy] price is, say £40/
MWh, what’s the chance of that go-
ing up to, say £50/MWh tomorrow
or in 5 days, 6 months or 12 months,
for example? Or coming down to
£30/MWh?” said Warren. “So we
started looking at how we could
build this risk management piece.
There was no commercially avail-
able tool that we thought was any-
where near good enough.”
Development of the platform was
undertaken through a two-year proj-
ect in collaboration with the Univer-
sity of Kent’s Kent Business School
(KBS) and School of Mathematics,
Statistics and Actuarial Science
(SMSAS). Funding for the project
was secured in May 2018 from
Innovate UK and the Economic Re-
search and Social Council (ESRC).
“With funding from Innovate UK,
it had to be innovative. So we had to
build new and very advanced risk
modelling software, concentrating
on UK power and gas. And once
we’d gone as far as we could at that
stage with the model, we would then
start looking at Europe.”
The two-year project would see
the partnership design and build
risk management algorithms that
will enable UK and multi-national
businesses to mitigate risk associat-
ed with open energy market posi-
tions. Ultimately, the platform will
engage stakeholders from multiple
countries and aggregate risk report-
ing to a single reporting facility.
A major milestone in the project
was reached in March last year with
the ofcial launch of the platform.
Using articial intelligence (AI), the
platform will enable users to: track
and forecast consumption; build and
analyse budgets; design trade strate-
gies; assess market conditions and
price forecasts; calculate risk; record
trades and positions; evaluate strate-
gies and report on performance.
As Kiveev constantly monitors the
market, businesses can quickly re-
act to market conditions and imme-
diately see the impact against pur-
chasing strategies. Investigation of
price trends can also be performed
through the Kiveev market dash-
board. This dashboard provides: live
data – live commodities exchange
and OTC price data; market com-
mentary daily and weekly market
insight commentary; delivered cost
total transparency with built-in non-
commodity rate algorithms; strategy
library strategy builder and library
provides users with more control;
alerts live alerts provide a constant
over-watch; and legislative change
updates on legislation to ensure users
are aware of changes.
With the UK modelling complete
for now, although modelling is an
ever-progressing process, the next
stage is to carry out modelling for
the European markets.
According to ZTP, there are two el-
ements to doing this. The rst is the
“range”, which Warren describes as
“a fan chart of where prices may
go”. He explained: “We are using AI
to apply different models to different
forecasts. Tomorrow’s range forecast
might be a very different mathemati-
cal model to a six-monthly forecast.
And we are using AI to determine
which model, or combination of
models, has been the most accurate.”
The second element, which Warren
says is perhaps the more exciting
part, is price forecasting.
“Here, as well as predicting the
chance of it being between this
range, we are also predicting what
the price will be. Again, it is using
AI or machine learning to say, for
example, determine what effect
does oil have on UK power or what
inuence does wind production
have? And doing the same for Ger-
many, wind production, for exam-
ple, will denitely have a very dif-
ferent inuence on German markets
to that of the UK. So we put differ-
ent weightings on these predictors,
which could be anything from
weather to interest rates and any
number of commodities. For exam-
ple, the models are constantly moni-
toring the price of carbon, as that is
going to have a major impact on
UK and European power prices. We
use AI to say what level of impact
that predictor is having and to en-
able the model to keep correcting it-
self. It basically uses all the data
available to it to predict where pric-
es will go.”
So far, modelling has been done for
nine EU power markets (in addition
to the UK) and seven gas markets.
State-by-state modelling is also on-
going for the US. “Modelling is now
being client-led. If a client wants,
say, Japan, the rst check is: is it an
open market and the second is can
we get the data? If there is enough
data, we can model it and get back to
the client,” said Warren.
ZTP also says it has branched out
from real estate and is already speak-
ing with a number of the biggest en-
ergy users in the UK. These include
retailers, car manufacturers, chemi-
cal production companies and other
industrial players.
Warren noted: “Previously these
companies just wouldn’t give any
sort of time to a traditional energy
broker although we don’t see our-
selves as ‘energy brokers’ because
they probably know the energy mar-
ket better than the person that’s call-
ing them. But now suddenly, they
can have some technology and digi-
talised information that helps them
trade much better.
“Kiveev is a really big turning
point for them... no one has this level
of risk modelling; certainly there is
nothing nearly as advanced.”
The payback for big energy con-
sumers can be huge and in some cas-
es immediate. “It could save a lot of
money: we’re talking double-digit
percentages,” said Warren. “Not nec-
essarily by consumption reduction
but by trading better. Although there
is a cost to having the software,
which isn’t in anyone’s budget… the
payback could be from a single
trade. So it could be one day. We re-
cently saved a client over £100 000
on one trade the cost of the soft-
ware was nowhere near that for that
particular client.” He added: “It’s
trade, so it’s not risk-free but it cer-
tainly mitigates the risk tremendous-
ly compared to what we see at the
moment, which is basic gut decision
and over-reliance on a consultant’s
opinion.”
With the ability to predict with 98
per cent condence that a future
spend will fall within a given range,
and all within a dynamic system,
Kiveev demonstrates the power of AI
as a new tool for energy managers.
Warren concluded: “It is impossi-
ble to keep up as a human: If you
wanted to look at this level of detail
on your Excel spreadsheets, you lit-
erally can’t. So this is really exciting.
And it digitalises the whole aspect of
trading of using your own data to
see the implications on your budget
or delivered costs. Users can then
make much more informed trading
decisions and open themselves to
opportunities to reduce their costs
massively, while protecting them-
selves against increases in costs. It’s
a fundamental improvement in how
people can now trade energy.”
Trading places
Warren: “We are using AI
to apply different models to
different forecasts”
“Range” forecasting is
an important part of the
modelling
THE ENERGY INDUSTRY TIMES - MARCH 2020
16
Final Word
F
or want of a better word, Febru-
ary was “wavy” (not in the ur-
ban sense). On a personal level,
the undulations of the Caribbean sea
was a high; followed by a brief low of
news that our cruise ship was sus-
pected of having passengers that con-
tracted the novel coronavirus just days
after the end of our journey. Fortu-
nately the results were negative; it
seems we are in the clear – for now.
Meanwhile, news of global carbon
emissions atlining last month came
as a pleasant surprise – and a welcome
relief from the hugely worrying
headlines surrounding the coronavi-
rus, Covid-19, which is threatening to
become a global pandemic.
In spite of widespread expectations
of another increase, global energy-
related carbon dioxide emissions
stopped growing in 2019, according
to data released last month by the In-
ternational Energy Agency (IEA).
The Paris-based agency reported
that after two years of growth, global
CO
2
emissions remained unchanged
in spite of the economy growing by
almost 3 per cent. The halt in carbon
growth has largely been put down to
progress in decarbonising the electric-
ity sector – greater use of renewables,
switching from coal to gas, and more
nuclear. Subsequently, power genera-
tion from coal red plants in advanced
economies declined by nearly 15 per
cent as a result.
The IEA said global power sector
emissions declined by some 170 Mt,
or 1.2 per cent, with the biggest falls
taking place in advanced economies
where CO
2
emissions are now at
levels not seen since the late 1980s
(when electricity demand was one-
third lower). “Emissions trends for
2019 suggest clean energy transitions
are underway, led by the power sec-
tor,” it said.
The power sector now accounts for
36 per cent of energy-related emis-
sions across advanced economies,
down from a high of 42 per cent in
2012. The average CO
2
emissions
intensity of electricity generation fell
by nearly 6.5 per cent in 2019, a rate
three times faster than the average over
the past decade. In absolute terms, an
average emissions intensity of 340
grams of CO
2
per kWh in 2019 is
lower than all but the most efcient
gas red power plants.
According to the IEA, the growth of
renewables in electricity generation in
advanced economies delivered 130 Mt
of CO
2
emissions savings in 2019.
Wind accounted for the biggest share
of the increase, with output expanding
12 per cent from 2018 levels. Solar PV
saw the fastest growth amongst renew-
able sources, helping to push renew-
ables’ share of total electricity genera-
tion close to 28 per cent. Coal-to-gas
fuel switching for power generation
avoided 100 Mt of CO
2
in advanced
economies and was particularly strong
in the United States due to record low
natural gas prices. Higher nuclear
power generation in advanced econo-
mies, particularly in Japan and Korea,
avoided over 50 Mt of CO
2
.
Global CO
2
emissions from coal use
declined by almost 200 million tonnes
(Mt), or 1.3 per cent, from 2018 levels,
offsetting increases in emissions from
oil and natural gas. Economic growth
in advanced economies averaged 1.7
per cent in 2019, but total energy-re-
lated CO
2
emissions fell by over 370
Mt (or 3.2 per cent), with the power
sector responsible for 85 per cent of
the drop.
Looking at where the most cuts in
CO
2
were made, the US saw the larg-
est decline in 2019 on a country basis
– a fall of 140 Mt, or 2.9 per cent, to
4.8 Gt. US emissions are now down
almost 1 Gt from their peak in the year
2000, the largest absolute decline by
any country over that period. A 15 per
cent reduction in the use of coal for
power generation underpinned the
decline in overall US emissions in
2019. Coal red power plants faced
even stronger competition from natu-
ral gas red generation, with bench-
mark gas prices an average of 45 per
cent lower than 2018 levels. As a
result, gas increased its share in elec-
tricity generation to a record high of
37 per cent.
In the European Union, including the
United Kingdom, energy-related CO
2
emissions dropped by 160 Mt, or 5 per
cent, to 2.9 Gt. The power sector drove
the trend, with a decline of 120 Mt, or
12 per cent, resulting from increasing
renewables and switching from coal
to gas. Output from EU coal red
plants fell by more than 25 per cent in
2019, while gas red generation in-
creased by nearly 15 per cent to
overtake coal for the rst time.
Germany spearheaded the fall in the
EU. Its emissions fell by 8 per cent to
620 Mt of CO
2
, a level not seen since
the 1950s, when the German economy
was around 10 times smaller. The
country’s coal red power eet re-
corded a drop in output of more than
25 per cent year-on-year as electricity
demand declined and generation from
renewables, especially wind increased
(+11 per cent). With a share of over 40
per cent, renewables for the very rst
time generated more electricity in
2019 than Germany’s coal red
power stations.
The UK continued its progress with
decarbonisation as output from coal
red plants fell to only 2 per cent of
total electricity generation. Rapid ex-
pansion of output from offshore wind,
as additional projects came online in
the North Sea, was a key driver. Re-
newables provided about 40 per cent
of electricity supply in the UK, with
gas supplying a similar amount.
Japan saw energy-related CO
2
emis-
sions fall 4.3 per cent to 1030 Mt in
2019, the fastest rate of decline since
2009. The power sector experienced
the largest drop in emissions as reac-
tors that had recently returned to
operation contributed to a 40 per cent
increase in nuclear power output.
This allowed Japan to reduce electric-
ity generation from coal, gas and oil
red power plants.
Emissions outside advanced econo-
mies grew by nearly 400 Mt in 2019,
with almost 80 per cent of the increase
coming from Asia. Coal demand
continued to expand in the region,
accounting for over 50 per cent of
energy use, and is responsible for
around 10 Gt of emissions. Fortu-
nately, this was offset by cuts in ad-
vanced economies.
In addition to declining emissions in
advanced economies, the IEA also
attributed the halt in CO
2
output to
milder weather in several countries
and, notably, slower economic growth
in some emerging markets.
However, it is far too soon to rest on
our laurels, with the IEA warning that
emissions would need to fall more
sharply still to meet the goals of the
Paris climate agreement. “We now
need to work hard to make sure that
2019 is remembered as a denitive
peak in global emissions, not just an-
other pause in growth,” said Dr Fatih
Birol, the IEAs Executive Director.
But although 2019 might the year
CO
2
emissions stopped rising, 2020
could be the year it gets moving again.
And not because of lack of effort.
Last year emissions in China rose,
even though tempered by slower
economic growth and higher output
from low-carbon sources of electricity.
As is often the case, the words ‘China’
and ‘emissions’ are never far apart.
Unfortunately, this time it is human
‘emissions’ infected with Covid-19
that are the immediate concern.
As of February 28th, the virus had
infected around 85 000 people glob-
ally – nearly 79 000 of which were in
mainland China, where it originated.
The outbreak has had a severe impact
on China’s industries and subse-
quently the world economy. For ex-
ample, last month Hyundai was forced
to halt output across all its car factories
in South Korea after running out of
engine components from China. At the
same time, many of the world’s stock
markets plummeted to their lowest
levels since the 2008 nancial crisis.
The impacts of the virus have been
profound and it will be some time
before supply chains in the energy
sector and other industries return to
normal. And as energy consumption
slumps due to falls in industrial output,
so will emissions rebound.
While we are all hoping for the virus
to be brought under control quickly, it
will be interesting to see how the IEAs
gures for global carbon emissions
play out in 2020. No doubt there will
be a huge spike as China gets the virus
under control and returns to normal
economic production.
A harbinger of doom might surmise:
it seems one way or another, we’re all
doomed; if the virus doesn’t get us, the
impact of carbon emissions will.
Ups and downs of a
atlining world
Junior Isles
Cartoon: jemsoar.com