www.teitimes.com

June 2022 • Volume 15 • No 4 • 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

Australia, the Philippines, and South

Korea have held recent elections. How

will new government policies shape the

region’s path to net zero? Page 14

Joining the big

beasts

Electing a net zero

pathway

Small Modular Reactors still face

challenges but momentum is

building for a big nuclear success

story. Page 13

News In Brief

Russia continues to

cut energy supplies to

neighbours

Finland has become the latest

country to have its energy supplies

cut by Russia. The move followed

Finland’s announcement that it plans

to join NATO, following Russia’s

invasion of Ukraine.

Page 2

Offshore wind picks up pace

in the US

With the rst offshore wind plants

delivered in the US, now states are

vying for investment in the next

phase of projects.

Page 4

Southeast Asia must make

clean transition to ensure

energy security

Southeast Asia’s reliance on fossil

fuels to meet rising demand for

energy is proving to be a signicant

vulnerability in today’s energy

crisis, according to the International

Energy Agency.

Page 5

Huge development and

scale-up interest in

electrolysis industry

Electrolysis developers are seeking

a fast step-change in capacity as

hydrogen becomes an important

energy vector.

Page 7

Energy industry must do

more to prevent cyber

attacks

Cyber attacks on the energy industry

are likely to cause harm to life,

property and the environment in

the next two years, according to

research by risk management and

quality assurance provider DNV.

Page 8

Energy companies may be

next to face UK windfall tax

UK electricity generating companies

are bracing themselves for a

possible windfall tax following

the government’s move to put

an ‘Energy Levy’ on oil and gas

operators.

Page 9

Technology Focus: High

voltage DC GIS for DolWin

kappa

Germany’s DolWin kappa converter

platform features gas insulated

switchgear for DC applications up to

±550 kV.

Page 15

Advertise

advertising@teitimes.com

subscriptions@teitimes.com

or call +44 208 523 2573

The European Commission’s detailed plan to reduce dependence on Russian fossil fuel will

accelerate renewables, hydrogen production and drive energy efciency. However, it is likely

to extend coal use, potentially jeopardising climate targets. Junior Isles

EU steps up wind ambitions to ease reliance on Russia

THE ENERGY INDUSTRY

TIMES

Final Word

There’s more to lightning

than speed,says

Junior Isles. Page 16

The European Commission has pub-

lished its detailed plan to wean itself

off Russian fossil fuels in light of Rus-

sia’s invasion of Ukraine and subse-

quent move to cut energy supplies to a

growing number of European states.

The REPowerEU plan, however, has

come under re from some environ-

mental activists, as the strategy will

likely extend the use of coal.

The strategy will see the EU spend

an additional €210 billion ($220.87

billion) by 2027, in order to increase

the share of renewables, diversify its

energy suppliers in the short term and

promote energy efciency to cut en-

ergy dependence on Russia. The com-

bination of measures aims to elimi-

nate all Russian energy supplies by

2027.

At the heart of the strategy is the plan

to use over half (€113 billion) of the

additional spend on renewables to in-

crease their share from the 40 per cent

currently set for 2030 to 45 per cent.

This translates into 1236 GW of clean

energy by 2030 compared to the 1067

GW initially proposed in the ‘Fit for

55’ package. At the same time money

will be allocated to a Hydrogen

Accelerator, which sets out a strategy

to double the previous EU renewable

hydrogen target to 10 million tons of

annual domestic production, plus an

additional 10 million tons of annual

hydrogen imports. This move to pro-

duce hydrogen to replace natural gas,

coal and oil in hard-to-decarbonise

industries and transport sectors will

call for €27 billion of direct invest-

ment in electrolysers and distribution

of hydrogen in the EU.

Announcing the strategy, Commis-

sion President Ursula von der Leyen,

said: “REPowerEU will help us save

more energy, accelerate the phase-out

of fossil fuels and launch investments

on a new scale,” adding that it will ac-

celerate the transition to clean energy.

In this new reality, the Commission

said gas consumption in the EU would

reduce at a faster pace, limiting the

role of gas as a transitional fuel.

“In parallel, some of the existing

coal capacities might also be used lon-

ger than initially expected, with a role

for nuclear power and domestic gas

resources too,” the Commission said,

estimating that the EU would use 5 per

Continued on Page 2

Europe is betting heavily on wind and

in particular offshore wind, with Bel-

gium, Denmark, Germany, and the

Netherlands announcing a joint off-

shore wind target of having at least

150 GW of generation capacity in-

stalled by 2050 to reduce their reli-

ance on Russian gas. The announce-

ment came as the EU launched its

REPowerEU strategy to end the use

of Russian fossil fuels well before

2030.

With their 150 GW pledge for 2050,

the four EU member states have a

joint target of half of the capacity

aimed for the entire EU by that time

under the EU Offshore Renewable

Energy Strategy, issued in November

2020.

Just ahead of the agreement, Giles

Dickson, WindEurope CEO, com-

mented: “It’s fantastic that the four

EU North Sea Heads of Government

and the European Commission Presi-

dent will come together in Denmark

to make new commitments on off-

shore wind. And that they will do so

the very day the EU launches its big

REPowerEU action plan to trans-

form Europe’s energy system.”

Notably the four countries stepped

up their pledge to build up to four ar-

ticial islands in the North Sea where

electricity from wind turbines could

be either transmitted to shore or used

to produce hydrogen that could also

be transported to shore.

Belgium, Denmark, Germany, and

the Netherlands now plan to quadru-

ple offshore wind in the North Sea to

65 GW by the end of the decade.

Commenting on the plan, Belgian

Energy Minister Tinne Van der

Straaten, said: “Energy is today used

as a weapon and our families and

businesses are the victims. With this

green acceleration we can replace

gas and oil, especially from Russia,

faster with wind at sea and green

hydrogen.”

The expansion will see the addition

of a new articial island, which would

be built on the Danish side of Dogger

Bank. The new “Brintø” project, pro-

posed by Copenhagen Infrastructure

Partners (CIP), will collect 10 GW of

offshore energy and convert it into

hydrogen.

Denmark is already developing an

energy island called Vindø, which

would produce 3 GW of power by

2033. The Danish government is the

big shareholder in the project that is

also backed by the Danish pension

funds PensionDanmark and PFA.

In addition to the Vindø and Brintø

islands, Belgium and Germany are

also studying whether to build energy

islands in the North Sea.

Belgium said it “will establish the

world’s rst offshore energy island”,

which will combine offshore wind

and an international interconnector.

The tender for the project is expected

to be awarded by the end of the year.

Meanwhile, in Germany an energy

island feasibility study is being con-

ducted by Allianz Investment Man-

agement and by CIP.

The countries will coordinate devel-

opment of the energy islands and de-

velop energy-sharing deals. In a joint

statement, the countries said: “We

will begin planning for multiple en-

ergy hubs and islands by undertaking

a screening of the potential for off-

shore wind and, where relevant, green

hydrogen production, in our entire

North Sea territory.”

The news came as Italy announced

it was working on incentives for off-

shore wind projects to help achieve its

climate goals and cut reliance on Rus-

sian gas.

Answering questions from mem-

bers of Parliament, Italy’s Energy

Transition Minister, Roberto Cingo-

lani, said: “Incentive mechanisms are

in the programming phase.” Besides

subsidies, Cingolani said offshore

wind would also receive grants from

Italy’s national Recovery Fund plan.

Cingolani said last year more than

60 developers had expressed interest

in building offshore wind farms.

These include ERG, Eni, Saipem,

EDF-owned Edison and Fincantieri.

According to WindEurope’s re-

cently published Finance and Invest-

ment Trends report investor con-

dence in wind energy remains high.

Europe invested €41 billion in new

wind farms in 2021, nancing a re-

cord 25 GW of new capacity. The

report warns, however, that invest-

ments are falling well short of the 35

GW a year of new wind the EU now

needs to build to meet its 2030 cli-

mate and energy security targets.

n Cumulative global capex spend in

the offshore wind sector is expected to

hit $1 trillion by 2031, according to a

new report by Wood Mackenzie. By

2030, Wood Mackenzie expects 24

countries to have large-scale offshore

wind farms, up from nine today. Total

installed capacity will reach 330 GW,

up from 34 GW in 2020.

REPowerEU details

plan to cut Russian

energy dependence

Ursula von der Leyen says REPowerEU will

help accelerate the phase-out of fossil fuels and

launch investments on a new scale

THE ENERGY INDUSTRY TIMES - JUNE 2022

Junior Isles

According to the International Energy

Agency’s latest ‘Renewable Energy

Market Update’, the world added a

record 295 GW of new renewable

power capacity in 2021, overcoming

supply chain challenges, construction

delays and high raw material prices.

Global capacity additions are ex-

pected to rise this year to 320 GW –

matching the EU’s total electricity

generation from natural gas. Solar PV

is on course to account for 60 per cent

of global renewable power growth

in 2022, followed by wind and

hydropower.

“Energy market developments in

recent months – especially in Europe

– have proven once again the essential

role of renewables in improving en-

ergy security, in addition to their well-

established effectiveness at reducing

emissions,” said IEA Executive Di-

rector Fatih Birol.

He added: “Cutting red tape, accel-

erating permitting and providing the

right incentives for faster deployment

of renewables are some of the most

important actions governments can

take to address today’s energy secu-

rity and market challenges, while

keeping alive the possibility of reach-

ing our international climate goals.”

Based on today’s policy settings,

however, renewable power’s global

growth is set to lose momentum next

year. In the absence of stronger poli-

cies, the amount of renewable power

capacity added worldwide is expected

to plateau in 2023, as continued prog-

ress for solar is offset by a 40 per cent

decline in hydropower expansion and

little change in wind additions.

While energy markets face a range

of uncertainties, the strengthened

focus by governments on energy se-

curity and affordability – particularly

in Europe – is building new momen-

tum behind efforts to accelerate the

deployment of energy efciency solu-

tions and renewable energy technolo-

gies. The outlook for renewables for

2023 and beyond will therefore de-

pend to a large extent on whether new

and stronger policies are introduced

and implemented over the next six

months.

The World Energy Council’s ‘World

Energy Pulse’, released in early May,

has shown that attitudes towards en-

ergy security, energy affordability and

sustainability, the core dimensions

that dene the World Energy Trilem-

ma, have dramatically shifted since

the start of the year and that tensions

between them are growing.

As the energy sector continues to

manage aftershocks from the impacts

of climate change, Covid-19 and the

conict in Ukraine, the World Energy

Pulse revealed nearly half of the 700

respondents expect the convergence

of these crises to accelerate the pace

of the transition. The survey marks the

rst quantitative assessment of the

conict’s impact on the global energy

transition.

While investment in diversication

of the energy mix is seen as a leading

measure to address security and af-

fordability concerns globally, indus-

try leaders said they expect greater

investment focused on onshore and

offshore renewables in response to the

crises. However, amidst a background

of increasing energy security con-

cerns, respondents underscored the

continued importance of investment

in hydrocarbons – marking a notable

shift away from previous divestment

trends.

cent more coal than previously ex-

pected over the next ve to 10

years.

Coal is expected to produce an-

other 100 TWh of power, about the

annual electricity consumption of

Belgium, during that period. Nucle-

ar, which is low-carbon but unpop-

ular with environmentalists because

of the radioactive waste generated,

is set to produce another 44 TWh

annually.

During a press conference, Frans

Timmermans, the European Com-

mission’s Executive Vice Presi-

dent for the European Green Deal

admitted that using less natural gas

in a transitional phase would mean

using “coal a bit longer”, which

“has a negative impact” on carbon

emissions.

“But if at the same time, as we

propose, you rapidly speed up the

introduction of renewables – solar,

wind, biomethane – you then have

the opposite movement,” he said.

“If we can actually do what I say

– reduce our energy consumption in

combination with a speedier intro-

duction of renewables – we will

bring down our emissions even

quicker than before,” he said.

Ofcials maintained that the bloc

would hit its target to cut emissions

by 55 per cent of 1990 levels by

2030 but the strategy has drawn

criticism from a number of environ-

mental organisations.

The EU executive has opened the

door for the nancing required for

the REPowerEU plan to be chan-

neled through the Recovery and

Resilience Plan, drawing on an es-

timated €225 billion in loans not yet

used under this plan.

Green groups are, however,

against the proposal to raise addi-

tional funding from the sale of €20

billion of surplus carbon emissions

permits, which would allow the re-

lease of 250 million tonnes of CO

under the emissions trading scheme.

“The Commission’s plan to ac-

celerate the EU’s shift to clean

energy solutions such as energy

efciency, wind and solar power is

very welcome,” said Ester Asin,

Director of the WWF European

policy ofce. “But nancing this

by selling pollution permits is mis-

guided, as is building more fossil

gas infrastructure or relying on

increased biomass use. That will

just prolong our dependence on

fossil fuel imports and jeopardise

climate goals.”

Eilidh Robb, an anti-fossil fuels

campaigner at Friends of the Earth

Europe, said: “These plans are sup-

posed to fast-track the clean energy

transition – but the European Com-

mission’s latest strategy gives with

one hand and takes with the other.

“[The] so-called REPowerEU

contains useful and necessary

strides towards renewable solutions

but it simultaneously enables al-

most 50 fossil fuel infrastructure

projects and expansions.”

Continued from Page 1

In the absence of a unied response

from the European Commission,

Spain, Portugal and Greece have ap-

proved national plans aimed at curbing

soaring energy costs.

In mid-May the Spanish government

signed off on a temporary cap on natu-

ral gas prices that it said would im-

mediately reduce the amount paid by

a third of consumers and 70 per cent

of industry. Portugal also approved the

Iberian mechanism to limit the price of

gas for electricity.

As energy prices surge across Eu-

rope, exacerbated by Russia’s war in

Ukraine, Spain and Portugal joined

forces earlier this year to ask the Euro-

pean Union’s executive arm to allow

them to skirt around the EU’s common-

market rules.

The two countries said the mecha-

nism would not affect prices else-

where in the EU because the Iberian

peninsula has limited energy intercon-

nections with France and the rest of

Europe.

Citing the large amounts of renew-

able energy used in both countries and

their lack of connections with the Eu-

ropean power grid, the European Com-

mission agreed to allow a price cap on

gas used for power generation, averag-

ing around €50/MWh for the next 12

months, beginning with a cap of €40

per MWh.

Duarte Cordeiro, Portugal’s Envi-

ronment Minister, said the current

reference price in the European whole-

sale market was about €90. “This will

enable us to protect all consumers

exposed to the market,” Cordeiro said.

Spain and Portugal initially proposed

a cap of €30 per MWh.

Spanish Minister for Ecological

Transition Teresa Ribera said the mea-

sure would protect both consumers and

businesses as Europe grapples with

volatile energy prices that are driving

record ination.

“For the rst time, it’s not the usual

people paying for this,” Ribera said.

“The measures adopted are fundamen-

tally aimed at reducing the extraordi-

nary prots of energy companies so

that this adjustment benets all of us.”

Greece, meanwhile, has said electric-

ity consumers will receive a refund of

up to 60 per cent of all the surcharges

they have paid from December to May,

as part of a government relief package

aimed at easing rising utility bills.

Prime Minister Kyriakos Mitsotakis

said soaring electricity costs forced the

government to act alone because the

EU has been too slow to offer a solution

and a joint response to the problem.

“Regardless of European decisions,

the Greek government, on its own ini-

tiative, will launch a system in July that

will decouple international gas in-

creases from the country’s electricity

bills. This scheme will operate for up

to one year,” Mitsotakis said, referring

to the measures as an indirect cap to

stabilise consumer bills.

In late April, Greek electricity provid-

ers began cutting off power to more

than 26 000 households because they

could no longer pay the bills. This has

increased pressure on the government.

Finland has become the latest country

to have its energy supplies cut from

Russia. The move followed Finland’s

announcement that it plans to join

NATO, following Russia’s invasion of

Ukraine.

On May 14, Inter RAO cut off elec-

tricity supplies to its Scandinavian

neighbour through its subsidiary RAO

Nordic Oy, citing “problems in receiv-

ing payments for electricity sold”.

Finnish grid operator Fingrid said the

issue was related to Western sanctions

that affected payments, rather than be-

ing retaliation for any other action by

Finland.

Fingrid, which said Moscow sup-

plied about 10 per cent of Finland’s

needs, said it could replace Russian

supplies with Swedish power and by

boosting domestic production. Fingrid

said in April it had prepared for the

prospect of Russia cutting electricity

ows to Finland by restricting the

transmission capacity by a third.

Russia also cut gas exports to the

country after Finland refused to pay in

roubles. Two thirds of the gas used in

Finland comes from Russia but gas

only accounts for about 5 per cent of

its annual energy consumption.

Finnish energy provider Gasum, the

Finnish government and gas consum-

ing companies said they were prepared

for a shutdown of Russian ows and

that the country will manage without.

“The Finnish gas system is in balance

both physically and commercially,”

Gasgrid Finland said.

Finland said it had agreed to charter

a storage and regasication vessel from

US-based Excelerate Energy (EE.N)

to help replace Russian supplies, start-

ing in the fourth quarter this year.

Tension between Finland and Russia

had been escalating since the start of

last month when Fennovoima can-

celled its contract with Russia to build

the Hanhikivi 1 nuclear power plant.

The 1200 MW plant was expected to

generate approximately 10 per cent of

Finland’s electricity needs

The Finnish company terminated

the engineering, procurement and

construction (EPC) with RAOS Proj-

ect due to signicant delays and

RAOS Project’s inability to deliver

the project. Fennovoima said the war

in Ukraine has worsened the project’s

risks and RAOS has been unable to

mitigate any of the risks.

The Hanhikivi 1 project, of which

Rosatom owns a 34 per cent stake with

the remainder held by a Finnish con-

sortium, had been delayed several

times and the construction permit had

not yet been granted.

“The decision to terminate the EPC

contract with RAOS Project is not

made lightly. In such a large project

there are signicant complexities and

decisions are made only after thorough

considerations. We fully acknowledge

the negative impacts and do our best

to mitigate those,” said Esa Härmälä,

Chairman of the Board.

Headline News

Countries take initiative in

tackling volatile energy prices

Russia continues to cut energy supplies to neighbours

Record year for renewables as

energy security drives momentum

Timmermans admitted coal

may have to be used “a bit

longer”

New capacity for generating electricity from solar, wind and other renewables increased to

a record level worldwide in 2021 and will grow further this year as governments increasingly

seek to take advantage of renewables’ energy security and climate benets, says the

International Energy Agency.

THE ENERGY INDUSTRY TIMES - JUNE 2022

CONFERENCE & EXHIBITION

#RUKGOW212

Programme live

Exhibition sold-out

Book now!

Event partners

Events.RenewableUK.com/GOW22

THE NEXT

GENERATION

4000

Attendees

200

Speakers

170

Exhibitors

Countries

-23

JUNE

LANDMARK CENTRE, LAGOS

Conneccng the Nigerian Uclices Industry

Digiczacon. Sustainability. Opcmizacon.

POWER & WATER

NIGERIA 2022

Look towards a brighter energy future

at Gastech Milan 2022

Be a part of the conversation to enable a low-carbon and aﬀ ordable energy

future for all at Gastech’s 50th anniversary. Showcase your technologies to

the world and exhibit at the leading natural gas, LNG, hydrogen and low-

carbon solutions event, Gastech Milan, 2022.

Book your stand today by visiting gastechevent.com/exhibit,

call +44 (0) 20 4551 1602 or email sales@gastechevent.com

40,000+

Attendees

1,000+

Exhibitors

600+

Speakers

4,000+

Delegates

International

country pavilions

Co-host

Host Region Host City Host Venue Organised byUnder the patronage of Supported by

GT22 Exprom adv 12x16.indd 1GT22 Exprom adv 12x16.indd 1 29/03/2022 11:4029/03/2022 11:40

Janet Wood

Electrolysis developers are seeking a

fast step-change in capacity as hydro-

gen becomes an increasingly impor-

tant energy vector.

Twenty chief executives recently

joined Thierry Breton, the EU’s Com-

missioner for the Internal Market to

try to pave the way for Europe’s elec-

trolyser manufacturing sector to pro-

duce 10 million t of hydrogen from

renewables by 2030.

They said this would require a ramp

up of electrolyser production to

around 25 GW per year and an in-

stalled electrolyser capacity of 90-100

GW, which they described as “an un-

precedented challenge and a signi-

cant industrial opportunity”.

The group signed a Joint Declaration

seeking a supportive regulatory

framework, adequate access to -

nance and research and development

that would quickly develop the indus-

try’s supply chains.

Breton said: “With RePowerEU, we

have just doubled our target for EU

hydrogen production to 10 million

tons by 2030. This will require large

amounts of electrolysers for hydrogen

production… The Commission is

committed to support this important

industrial upscaling with a number of

supportive measures.”

The electrolyser industry is experi-

encing a step change in capacities, as

illustrated by a new order from H2

Energy Europe, which has taken on

US-based Plug Power to supply elec-

trolysers for a 1 GW offshore wind-

to-hydrogen project in Denmark. Ac-

cording to Plug Power, this is the

world’s largest electrolyser order to

date.

In Germany, RWE AG has received

an €8 million funding commitment

from the state of Lower Saxony to

build a 14 MW pilot electrolysis plant

that is meant to pave the way for the

power group’s goal to have a 300 MW

electrolyser facility at Lingen by

2026. RWE will invest €30 million in

the project, which will see two elec-

trolysis technologies tested at the site

– a 10 MW pressure-alkaline elec-

trolyser from Sunre GmbH and a 4

MW proton exchange membrane

electrolyser from Linde. The hydro-

gen will be fed into a public hydrogen

network, blended with the fuel for gas

turbines at RWE’s Emsland power

plant or used to supply the hydrogen-

capable gas turbine that RWE and

Kawasaki plan to build at the site by

2024.

In the UK, Swedish utility Vattenfall

AB has been awarded € 11 million in

UK government funding to produce

hydrogen at one of the turbines at its

97 MW Aberdeen Offshore Wind

Farm. The 8 MW pilot project will see

an electrolyser integrated into an ex-

isting operational turbine. The hydro-

gen produced will be piped to the coast

at Aberdeen Harbor.

Elsewhere, Scottish Power and

Storegga have forged a partnership to

develop, build and operate a series of

green hydrogen production facilities

in Scotland. Called Cromarty Hydro-

gen the rst facility is expected to

provide 20 t of green hydrogen per

day, with operations slated to start in

2024. Subject to demand, the facility

could also be expanded to 300 MW,

according Scottish Power.

The nascent industry is still seeing

new technologies enter the eld. A

new ‘Step Change Memorandum of

Understanding’, signed by green hy-

drogen start-up PlusZero and TTP,

aims to deliver a new generation dem-

onstrator electrolyser that addresses

current scalability challenges.

David Amos, Managing Director at

PlusZero, said: “We believe it is not

unrealistic to suggest that the UK Hy-

drogen Strategy target of 10 GW low

carbon hydrogen production capacity

by 2030 could be met by Scottish

green hydrogen alone. However, lim-

ited green hydrogen production ca-

pacity has created a massive scalabil-

ity challenge. We want to change that,

and through this exciting partnership

with TTP, we believe that we can.”

Meanwhile Gravitricity and Arup

secured UK government funding to

study the feasibility of storing hydro-

gen in purpose-built underground

shafts.

Gravitricity’s Hydrogen and Ther-

mal Storage Lead, Sally Molyneux

said: “Storing hydrogen in under-

ground shafts is intrinsically safer and

less obtrusive than above ground op-

tions and is a solution that does not

require unique geology such as salt

caverns.”

New delays have hit the start of energy

production at Finland’s Olkiluoto 3

nuclear power plant and commercial

operation has been postponed from

July to September, according to opera-

tor Teollisuuden Voima Oyj (TVO).

The reactor went online in March, 12

years behind schedule. It will meet

around 15 per cent of Finland’s elec-

tricity needs but TVO said “inspection

and repair needs concerning the cool-

ing system of OL3’s generator will last

approximately three weeks”.

In UK new-build, EDF has now ad-

mitted that startup of its Hinkley Point

C plant will be delayed by a year to

June 2027 and it will cost an extra £3

billion, although the Contract for Dif-

ference funding means the cost will

not fall on consumers. Costs are now

estimated at £25-26 billion.

EDF said it lost more than half a

million days of critical work in 2020

and 2021 because of Covid measures.

A government decision on whether to

award development consent for a

follow-on unit, Sizewell C, has been

delayed after ministers said they

needed more time to look at new in-

formation. The nal decision is now

expected by July 8.

Meanwhile in France, 12 of EDF’s

56 nuclear power plants have been

taken ofine over safety concerns.

EDF conrmed recently that it had

lowered its electricity production tar-

get for the year to 280-300 TWh, in-

stead of 295-315 TWh. EDF said it was

working at full speed to repair any

damage.

European countries are looking for

fast roll-out of offshore wind and so-

lar power to help reduce energy im-

ports as well as cut soaring electricity

prices.

Illustrating the offshore wind indus-

try’s ambition, Deep Wind Offshore

has started consultation for a 6 GW

oating offshore wind project in the

Swedish Baltic Sea. The Erik Segersall

project will have 240 units of 25 MW

or 300 units of 20 MW turbines. The

same area could see two oating wind

projects from Irish blue economy de-

veloper Simply Blue Group, which

recently announced plans for oating

wind projects totalling 5 GW.

Other new offshore wind areas are

also opening up for development, in-

cluding Greece, where a new legisla-

tive framework for offshore wind

development is expected to open for

public consultation shortly.

In the solar sector, last month there

were announcements for several

large-scale projects.

In Zwartowo, Poland, the European

Bank for Reconstruction and Devel-

opment (EBRD) has agreed to provide

a $47.8 million in funding for the

construction and operation of a 285.6

MW solar project. Stigma – a special

purpose vehicle owned-by Solarnet

Investment – will deliver the project.

In Germany the Federal Network

Agency recently launched a tender for

1.125 GW of large-scale solar proj-

ects, open to bids by June 1. In addi-

tion, renewable energy company

Green Genius said it will install 500

MW of solar power plants in Lithu-

ania by 2025, along with 200 MW of

wind power.

Meanwhile, ve EU member states

have called for mandatory solar pan-

els on some types of buildings, saying

it would help the bloc’s reduce its

energy dependency on Russia. In a

letter to the European Commission,

Austria, Belgium, Lithuania, Luxem-

bourg and Spain have called for solar

panels on public buildings, factories,

supermarkets and other buildings

with at roofs, and solar panels as

standard on new houses.

Janet Wood

A German offshore wind farm is the

rst to win approval on the basis that

it will be used to help balance the trans-

mission grid as the country’s amount

of renewables grows.

The 312 MW wind farm, Borkum

Riffgrund 1 will produce electricity

specically to stabilise power supplies,

taking the place of conventional coal

and nuclear plants, which are being

progressively shut down.

The wind farm underwent prequali-

cation by transmission system opera-

tor (TSO) TenneT, which showed it is

able to balance short-term grid uc-

tuations. The concept was approved by

the other three TSOs in Germany.

Joerg Kubitza, Managing Director at

the German division of Ørsted, which

part owns Borkum Riffgrund 1, said it

was “breaking new ground” that had

been reserved for conventional energy

sources.

The project is expected to encourage

other wind farms to become qualied

so their power can be traded on the

German balancing power market in the

future.

Meanwhile German grid owners are

planning on major expansion to ac-

commodate renewables and invest-

ments will be made also in technologies

such as Statcom systems to ensure the

stability of the grid at all times.

Hansewerk AG will invest nearly

€1.2 billion into expanding the power

grid in northern Germany in the next

three years, while operator Amprion

GmbH said it is planning to spend €12

billion on expansion in the period to

2026. Amprion’s investment is focused

on expanding the north-south axes of

the power grid to enable electricity sup-

ply from offshore wind in the north to

be transmitted onshore. A major initia-

tive in this area is a project that will

allow for 4 GW of wind power to be

transported to the Ruhr area from 2030,

replacing the capacity of ve large coal

red power plants. It also recently un-

veiled plans to increase electricity dis-

tribution capacity in North Rhine-

Westphalia by 8 GW by the end of the

decade, requiring €4 billion of invest-

ment by 2026.

Hansewerk AG said expansion was

required to prepare for a boom in e-

mobility and new renewable energy

capacity. Chief Executive Matthias

Boxberger warned that without expan-

sion, renewable generation will have

to be compensated to the tune of mil-

lions of euros because they are not able

to export their power to the grid.

German networks

prepare for renewables-

based system

Delays and

repairs hit

nuclear units

Offshore wind and major PV rollout to help Europe cut power costs

Huge development and scale-up interest

in electrolysis industry

n New developments claim ‘world’s largest’ n New technologies still gaining government support

n Offshore wind farm qualies to provide stability services

n Grids plan expansion to accommodate more renewables

THE ENERGY INDUSTRY TIMES - JUNE 2022

Europe News

he twin drivers of climate

change and energy security

have resulted in renewed in-

terest in nuclear technology. Along-

side large conventional nuclear re-

actors though, a buzz is also

growing around small modular re-

actors (SMRs), units that hold the

promise of low cost, rapid installa-

tion and relatively straightforward

development.

Like their larger cousins, SMRS

are a low-carbon energy source and

benet from a largely secure supply

chain but there are key differences

too. Large conventional reactors are

huge civil engineering projects,

which can easily take a decade or

more to build. In contrast, SMRs are

much smaller in size and are largely

factory built off-site and with limited

on-site construction. This is one of

the key gains of SMRs, which are

delivered almost complete to their -

nal destination for assembly. They

also typically feature passive safety

systems, minimising further even the

remote risk of a reactor accident.

Furthermore, unlike full-scale nu-

clear units, the SMR concept is cen-

tred on production line-type manu-

facturing with a high degree of

commercial off-the-shelf compo-

nents further reducing production

and installation costs. As a result,

they hold the promise of a much

more economically viable option

than a conventional nuclear reactor.

If SMRs are successfully deployed

at scale, this approach is expected

to cut the LCOE for nuclear capaci-

ty bringing it on a par with current

renewables.

It’s no surprise that the obvious ad-

vantages of the SMR concept have

prompted a lot of attention and there

are dozens of different designs of

SMR currently under development.

Among the leading technologies are

products being developed by Rolls-

Royce, GE Hitachi and NuScale.

Rolls-Royce, for example, is work-

ing up its 470 MW pressurised water

reactor (PWR) design, which it

claims will produce dependable en-

ergy for as little as £60/MWh ($76/

MWh) and potentially even cheaper

if SMRs go into volume production.

The Rolls-Royce design will provide

220-440 MW of power, depending

on the conguration.

Meanwhile, GE Hitachi’s BWRX-

300 design is a 300 MW boiling wa-

ter reactor with natural circulation

cooling. It is based on GE’s NRC-

certied ESBWR design. GE Hitachi

believes the BWRX-300 can become

the most cost-competitive SMR and

the quickest to market.

NuScale’s SMR technology centres

on a 77 MWe module, also a PWR

that is congured into a number of

different-sized units, such as the

VOYGR™-12 (924 MWe) featuring

12 so-called Power Modules. This is

the world’s rst SMR design to re-

ceive US Nuclear Regulatory Com-

mission (NRC) design approval.

Alongside the established energy

market players new entrant OEMs

are also piling into the SMR market.

Nucleoeléctrica Argentina, for exam-

ple, is developing the CAREM 32

MWe prototype SMR that is already

under construction, with a bigger

100-200 MWe version on the hori-

zon should trials prove successful.

With considerable interest and in-

vestment from vendors and OEMs,

governments and policymakers are

also investigating the possibilities of

SMR technology as they try to map

a route to net zero. In the UK for ex-

ample, the government presented its

British Energy Security Strategy

document earlier this year, which

emphasises the role of nuclear in the

future energy mix and highlights the

contribution from SMRs.

As part of a goal to reach 95 per

cent of electricity from low-carbon

sources by 2030 a signicant accel-

eration of nuclear is envisaged. The

UK has an ambition of up to 24 GW

of new nuclear by 2050, meeting

around 25 per cent of total electricity

demand and SMRs forming a key

part of the nuclear pipeline.

Great British Nuclear, a new gov-

ernment body, is already being set up

to bring forward new projects, in

part through the new £120 million

($151 million) Future Nuclear En-

abling Fund targeting barriers to en-

try. In addition, the Ten Point Plan

for a Green Industrial Revolution an-

nounced an Advanced Nuclear Fund

of up to £385 million to invest in the

next generation of nuclear technolo-

gies. This specically includes up to

£215 million for SMRs and the de-

velopment of a domestic design. A

further £170 million is earmarked

for a research and development pro-

gramme to deliver an Advanced

Modular Reactor (AMR) demonstra-

tion by the early 2030s. As part of

the AMR programme the UK depart-

ment of Business Energy and Indus-

trial Strategy (BEIS) is providing up

to £2.5 million in innovation funding

to support the development and

demonstration of High Temperature

Gas Reactor (HTGR) technology in

the UK.

Buoyed by government backing for

SMRs, Rolls-Royce is leading a con-

sortium including BNF Resources

UK and Exelon Generation that is

investing £195 million in SMR de-

velopment over a three-year period.

The consortium is also funded to the

tune of up to £210 million with a

grant from the government’s UK Re-

search and Innovation (UKRI)

through the Industrial Strategy Chal-

lenge Fund (ISCF) and the Low Cost

Nuclear (LCN) challenge. Earlier

this year the SMR design entered the

Generic Design Assessment (GDA)

process with regulators. The Ofce

for Nuclear Regulation and the con-

sortium is aiming to build 16 SMRs

initially with the rst planned in the

early 2030s and as many as 10 by

2035.

Beyond the UK’s shores, progress

on SMRs has also been accelerating.

Late last year GE Hitachi, BWXT

Canada and Synthos Green Energy

announced their intention to cooper-

ate in deploying at least 10 BWRX-

300 SMRs in Poland by the early

2030s. GE Hitachi has also been se-

lected by Ontario Power Generation

(OPG) to install a BWRX-300 at the

Darlington New Nuclear Project that

could be complete by 2028. They

claim they can construct and operate

a new nuclear plant in as little as 24-

36 months.

With Fluor Corporation now a ma-

jor investor, NuScale Power has also

been working to implement its SMR

design. It signed a contract with Pol-

ish mining company KGHM early

this year, to implement SMRs in Po-

land with the rst power plant opera-

tional by 2029. More recently, NuS-

cale signed a Memorandum of

Understanding (MOU) with Associ-

ated Electric Cooperative to evaluate

its technology and this deal follows

close behind a similar MOU with

Korean investors GS Energy, Doo-

san, and Samsung.

China is also rapidly moving ahead

with its SMR technology, the 125

MWe PWR ACP100 by China Na-

tional Nuclear Corporation (CNNC).

A key foundation slab for Linglong

One at the Changjiang nuclear pow-

er plant on China’s island province

of Hainan has already been poured.

Despite the range of potential ben-

ets and the considerable commer-

cial interest in pursuing the technol-

ogy, there are nonetheless some

considerable challenges to be over-

come if SMR ambitions are to be

realised.

One of the key advantages of

SMRs, i.e., manufacturing at scale,

relies on signicant and sustained

market demand. While there clearly

is demand, questions remain over

whether the market is buoyant

enough to achieve such economies

of scale. In the UK, for example,

there are just eight designated nucle-

ar sites currently – Hinkley, Size-

well, Heysham, Hartlepool,

Bradwell, Wylfa, Oldbury and

Moorside. The challenges of obtain-

ing licensing agreements for other

new sites cannot be over-estimated.

And, while the economic case is

strong at face value – SMRs being

much smaller need far less upfront

capital expenditure – the existence of

multiple competing models could

also dilute potential market value by

reducing the available market for

each specic design.

Nonetheless, as some SMRs can

produce much higher temperatures

than existing reactors, new market

opportunities – in steel-making or

hydrogen production for example –

might present themselves.

New nuclear reactors also need to

present an unimpeachable safety

case. Evidence suggests that most

SMRs will be considerably safer

than current designs and in some

cases the core technology is well

proven. In Russia there are already

SMR units installed on board oat-

ing power plants and many small re-

actors have been produced for ma-

rine propulsion, aboard submarines

for example. In the US, NuScale’s

SMR has already been issued design

certication by the NRC and thus

meets safety requirements. However,

for the vast bulk of designs there is

the challenge of obtaining design

and operating licences. Each national

regulator has its own rules, increas-

ing the risk that SMRs will not be

able to secure approval in a timely

way and at reasonable cost.

To address this concern the IAEA

has launched the Nuclear Harmoni-

zation and Standardization Initiative

(NHSI), which aims to develop com-

mon regulatory and industrial ap-

proaches to SMRs. Another issue to

consider is waste disposal. While

some designs can use existing routes

developed for large reactors, others

use novel fuels for which no such

pathways currently exist. Although

these issues can ultimately be ad-

dressed this could take considerable

time and add further costs and risks.

Given the barriers to commercial

deployment that remain for SMRs

it’s a big ask to see them rolled out at

scale within the decade. It is certain-

ly important that continued govern-

ment support is available to help

them build a sustainable market.

However, SMRs could become an

important tool in the battle to curb

carbon emissions. Rolls-Royce esti-

mates the size of the potential SMR

market as around 65-85 GW world-

wide by 2035, including 10 GW in

the USA and China and 15 GW in

China, it’s a market valued at £250-

£400 billion. The challenges of

SMRs are there to be solved, but if

that happens then the market is too.

Small Modular Reactors hold huge promise for low-carbon and low-cost energy and are attracting considerable

interest as a result, with dozens of designs under development. Challenges remain, but momentum is building for a

big nuclear success story. Sam Curtis

SMRs powering up to join

the big beasts

THE ENERGY INDUSTRY TIMES - JUNE 2022

Industry Perspective

Rendering of the GE Hitachi BWRX-300. GE Hitachi believes

the 300 MW boiling water reactor can become the most cost-

competitive SMR and the quickest to market. Source: GEH

A$36 billion ($25.5 billion) to develop

and will involve building wind and

solar facilities of about 26 GW in

Western Australia.

Just over two months before Alba-

nese’s election, South Korea’s new

President Yoon Suk-yeol was sworn

in on March 8. President Yoon’s po-

litical manifesto is generally more

conservative than that of the nation’s

previous ve-year, one-term Presi-

dent, Moon Jae-in. However, when it

comes to taking the nation down the

NZE path, President Yoon is likely to

accelerate decarbonisation.

His new Environment Minister,

Han Hwa-jin, has stated that that the

Yoon-government is committed to

carbon neutrality. She also empha-

sised that the administration regards

nuclear power generation as a green

source of energy. This reverses former

President Moon’s rejection of nuclear

energy. He had actually announced at

the time of COP26 a phase-out plan

for nuclear power in South Korea.

President Yoon’s commitment to

nuclear power as one of the tools to

achieve decarbonisation will be rein-

forced by fossil fuel price volatility

and supply chain disruptions

prompted by Putin’s war on Ukraine.

So, energy supply security, which can

be met by domestically generated

clean energy sources, is even higher

on the new administration’s agenda;

the country imports virtually all of the

fossil fuels it consumes while nuclear

power generation accounted for about

28 per cent of the total in 2020.

The Philippines, meanwhile, is

somewhat of a laggard in NZE, espe-

cially when compared to the new

momentum in Australia and South

Korea. The Philippine Congress pro-

claimed Ferdinand ‘Bongbong’ Mar-

cos Jr. as President-elect on May 25.

He will replace President Rodrigo

Duterte, whose six-year term ends in

June; similar to South Korea, a Presi-

dent may only serve a single term.

Duterte’s climate action could be best

described as minimalistic and its ex-

ecution slow.

An example was the commitment to

cut greenhouse gas emissions by

2030. President-elect Marcos has yet

to present clear targets backed by a

comprehensive climate action blue-

print. However he sees environmental

lections, such as the recent ones

in Australia, the Philippines,

and South Korea, are crucial in

the determination of the net zero

emissions (NZE) path of a country.

The rst building block for a country

to achieve an NZE objective is the

establishment of policies, regulation,

and institutions by its government.

Ideally the execution of these is ef-

cient and effective. However, a

country can still make good progress

in its NZE path even in an environ-

ment where execution is weak. This is

because it will send the right invest-

ment signals to industry participants,

the capital markets, and others. Spe-

cically, it is important to lower in-

vestment risk which usually also

translates into a lower cost of capital

– i.e., lower borrowing costs.

Australia, the Philippines, and

South Korea are important actors in

Asia’s energy markets, though they

have very different decarbonisation

pathways. Their energy prole differ-

ences are quite striking. Australia has

a relatively small population com-

pared to its regional peers, with about

26 million people – half of South

Korea’s, which in turn is less than half

that of the Philippines, as of 2020.

In terms of primary energy con-

sumption, South Korea’s is almost 12

EJ, versus Australia’s 6 EJ and just

1.8 EJ for the Philippines. Looking at

primary energy from non-fossil fuel

sources as a percentage of the total

primary energy, South Korea had the

highest ratio with 15.4 per cent, the

Philippines’ was 11.5 per cent, and

Australia’s was just 10.4 per cent.

This means that all three have a long

path to decarbonise their market.

National elections were held in

South Korea in March, and in the

Philippines and Australia in May. The

new leaders in Australia will reverse

the country’s climate change denial

policies. Those in South Korea should

broadly continue with the previous

government’s decarbonisation policy.

For the Philippines, there is some

hope that the new administration will

adopt an NZE target soon.

Australia’s new Prime Minister,

Anthony Albanese, was sworn-in on

May 23rd. His centre-left Labour

Party has advocated for more robust

climate change-related policies.

Something that the former Prime

Minister Scott Morrison’s coalition

government, led by the liberal party,

had been extremely weak on. For ex-

ample, when Australia attended the

2021 United Nations Climate Change

Conference (COP26) in Glasgow in

November 2021, Lord Deben, Chair-

man of the UK Climate Change

Committee, was one of many to pub-

licly slam Australia’s NZE plan.

Among other things, Morrison’s

NZE plan was betting on some new

technological breakthroughs. Some

experts have argued that the Albanese

NZE strategy blueprint could be mas-

sively improved. Still, the new

‘Powering Australia’ plan, pledges to:

create over 600 000 jobs; bring down

household power bills; increase the

share of renewables in the main

power market, the National Electricity

Market, to 82 per cent by 2030; and to

reduce emissions by 43 per cent by

2030 to reach net zero by 2050.

Albanese is highly likely to succeed

thanks to some pretty strong tail

winds. Many state governments, such

as those of New South Wales and

Western Australia, have been staunch

supporters of advancing investments

in clean and sustainable energies.

This has resulted in Australia looking

at building some massive projects.

One of the many examples is the In-

terContinental Energy’s Asian Re-

newable Energy Hub (AREH) which

will take 10 years and approximately

protection as a high priority and has

also shown to be keen on raising the

amount of energy from clean sources.

He was quoted as saying: “We will

use natural sources of energy. We

will no longer use coal. We will no

longer use fossil fuel. We should

have alternative [sources of energy]

and the renewables are [always]

available.” Albeit this was stated in

January, early in the election cam-

paign process. Importantly, he is

pro-nuclear energy. He has men-

tioned that he hopes to restart work

on a nuclear power plant which was

going to be built under his father’s

administration, almost four decades

ago. While nothing is on paper yet,

there seems to be the possibility of

momentum in climate action and

energy transition.

Australia, the Philippines, and

South Korea will gain new impetus in

addressing decarbonisation and the

energy transition. Australia’s is likely

to become one of the fastest in the

region, as the country strives to

change the perception that it is a cli-

mate action laggard by becoming a

leader, at the very least in the Asia

region. South Korea will continue its

very robust NZE path, and possibly

even accelerate a little. The Philip-

pines is likely to formulate some kind

of NZE plan in the coming months, or

at the very least structure and execute

policies accelerating the build out of

clean energy in the country including

onshore wind and solar as well as

offshore wind and maybe even nucle-

ar energy. Put together it is clear that

the world’s largest energy consuming

and polluting region in the world is on

a very steady path toward NZE. As

such, Asia will continue to attract

enormous amounts of capital in its

clean energy buildout, including

transport electrication.

Joseph Jacobelli is Managing Partner,

Asia Clean Tech Energy Investments,

a single-family ofce, and a direct

clean energy investments advisor. He

has over 30 years’ experience in Asia

energy at leading investment banks

and as a senior executive at energy

developers. He is author of ‘Asia’s

Energy Revolution’ (De Gruyter,

2021) and hosts The Asia Climate

Capital Podcast.

THE ENERGY INDUSTRY TIMES - JUNE 2022

Asia Decarbonisation

Australia, the

Philippines, and South

Korea have each

held elections in the

last three months. As

‘inuencers’, given

their size and level

of development,

the results add

momentum to the

region’s energy

transition and will

enable faster capital

mobilisation in the

three energy markets.

Joseph Jacobelli

Elections will accelerate

Asia’s path to net zero

(Data as of 2020) Unit Australia Phillippines South Korea Asia ex-China

Population Million 25.7 109.6 51.8 2,726.8

% 0.9% 4.0% 1.9% 100.0%

GDP Current US$ Billion 1,328 361 1,638 11,732

% 11.3% 3.1% 14.0% 100.0%

Primary Energy Consumption Exajoules 5.57 1.82 11.79 107.79

% 5.2% 1.7% 10.9% 100.0%

Primary Energy Consumption, Fossil Fuels Exajoules 4.99 1.61 9.97 96.00

% 5.2% 1.7% 10.4% 100.0%

Primary Energy Consumption, ex-Fossil Fuels Exajoules 0.58 0.21 1.82 11.79

% 4.9% 1.8% 15.4% 100.0%

Electricity Generation, Total Terawatt-Hours 265 102 574 5,140

% 5.2% 2.0% 11.2% 100.0%

Electricity Generation, Clean Energy Terawatt-Hours 65 n.a. 205 3,952

% 1.6% n.a. 5.2% 100.0%

Australia (23 May 2022)

• Net zero target year: 2050

• Overall rating: Highly insufficient

• Comprehensiveness rated as: Poor

Philippines

• Net zero target year: Nil

• Overall rating: Nil

• Comprehensiveness rated as: Nil

South Korea (8 March 2022)

• Net zero target year: 2050

• Overall rating: Highly insufficient

• Comprehensiveness rated as: Average

Australia, the Philippines

and South Korea country

snapshot by The Climate

Action Tracker. Sources:

Joseph Jacobelli based on data

from The Climate Action Tracker

(climateactiontracker.org)

Australia, the Philippines and South Korea energy markets snapshot.

Sources: World Bank; bp Statistical Review of World Energy 2021; Joseph Jacobelli

enewable energy and particu-

larly offshore wind has long

been seen as crucial to the Eu-

ropean Union hitting its targets for

carbon emissions. And since the eye-

watering rise in gas prices, exacer-

bated by Russia’s war against

Ukraine, the importance of renew-

ables has taken on even greater im-

portance as a way of not only meet-

ing net zero targets but also as a

means of the bloc weaning itself off

Russian gas.

Naturally, utilising the wind re-

source of the North Sea is a key part

of Europe’s strategy. The European

Commission is aiming for 60 GW by

2030 and 300 GW 2050, and in Feb-

ruary this year the European Parlia-

ment called for the current rate of de-

ployment to be accelerated.

Along with the UK, Germany has

in particular been looking to exploit

offshore wind potential to meet its

own net zero target by building off-

shore wind farms in the north and

transporting that power down to the

major load centres in the south. As of

early 2022, there were about 1500

turbines with a capacity of nearly 7.8

GW in operation in German waters

in the North Sea and Baltic Sea.

Going forward, the country plans

to install 30 GW of offshore wind

power by 2030, 40 GW by 2035, and

70 GW by 2045. Connecting this

amount of offshore wind, however,

is no small task. Since December

2006 the European grid operator,

TenneT, has been legally obliged to

connect all offshore wind farms in

the German North Sea to the power

grid.

By 2019, the cross-border trans-

mission system operator (TSO) had

already met and even signicantly

exceeded the Federal Government’s

expansion targets of 6.5 GW by 2020

for sustainable North Sea wind pow-

er: the 12 completed grid connec-

tions in the North Sea already trans-

port more than 7 GW of renewable

energy from sea to land. By 2027,

TenneT will have completed four

more offshore grid connections,

thereby increasing transmission ca-

pacity to over 10 GW.

One of the most important of these

connections, certainly in terms of

power capacity and technology, is

DolWin6. With a rating of 900 MW,

along with BorWin 3, it is currently

the largest of TenneT’s connections.

The DolWin6 grid connection,

scheduled for completion in 2023, is

around 90 km in length and will con-

nect multiple offshore wind turbines

to the mainland. The 155 kV alter-

nating current supplied by the wind

turbines will be converted into 320

kV direct current on the DolWin6

offshore platform and transported to

Hilgenriedersiel on the mainland via

a 45 km subsea cable. On the ocean,

the cable will pass underneath the is-

land of Norderney by means of hori-

zontal bore holes. Once on land, the

electricity will be transported by an-

other 45 km underground cable to

Emden, East Frisia, where Siemens

is building another converter station

for converting the direct current back

into three-phase current and feeding

it into the high voltage grid.

The DolWin kappa converter plat-

form, which is being built in the

Dragados shipyard in Cádiz, Spain,

sits at the heart of the project. The

platform utilises Siemens Energy’s

HVDC Plus technology to convert

power from AC to DC. It is based

around the Modular Multi-level Con-

verter (MMC) for high voltage, high

power voltage source converter

(VSC) applications.

In Siemens Energy HVDC Plus

systems, one modular multi-level

converter comprises three single-

phase inverters. One converter com-

prises three identical phase units

with two converter arms, and each

converter arm contains a number of

sub-modules supporting the full DC

voltage. Each sub-module contrib-

utes only a small voltage step and is

controlled individually. Essentially,

each module within an MMC is a

discrete voltage source with a local

capacitor to dene its voltage step

without creating ripple voltage dis-

tortion across the converter’s other

phases. This way, it is possible to

achieve the required sinusoidal AC

and smooth DC side output voltage

waveforms without excessive har-

monic distortion and HF noise.

The insulated-gate bipolar transis-

tors (IGBTs) at the heart of the sub-

modules are fully controllable. This

enables modular multi-level convert-

ers to absorb and generate reactive

power independently from active

power up to the converter rating. The

output currents can be varied over

the complete operating range in a

smooth, linear way. This enables in-

dependent and very exible control

of active and reactive power, which

supports the connected AC grid.

The technology allows the convert-

er platform to be more compact than

its predecessors, leading to around a

10 per cent saving on investment

cost.

Notably, DolWin kappa uses com-

pact DC gas insulated switchgear

(GIS). The new GIS for ±320 kV re-

quires up to 95 per cent less space

compared to previous air-insulated

switchgear (AIS) solutions. This was

the main driver behind its develop-

ment. By using this switchgear on an

offshore platform, the size of the

platform itself can be reduced by up

to 10 per cent. While comparable

AIS in standard conguration would

require 4000 m

, Siemens Energy’s

DC GIS requires only 200 m

DC GIS continually measure cur-

rent and voltage. They also detect

any failures and prevent hazardous

events. According to Siemens Ener-

gy, the technology can operate for

decades, even in harsh weather

conditions.

According to Siemens Energy, this

is the rst time such a switchgear is

being used on an offshore converter

station. “This is the world’s rst off-

shore gas insulated switchgear. It is

something we have developed over

the last year for DC applications

even up to ±550 kV,” said Dr Maria

Kosse, HVDC Lead Engineer at Sie-

mens Energy.

The DC GIS is based on Siemens

Energy’s well-proven AC GIS tech-

nology, which has been supplement-

ed with a newly developed DC insu-

lator. Under DC voltage, the

insulators are exposed to a different

electric eld than under AC voltage

due to the phenomenon of eld tran-

sition accompanied by charge accu-

mulation at interfaces. Siemens,

therefore had to develop a new DC

insulator capable of handling these

DC-specic aspects.

Dr Kosse explained: “Compared

to AC GIS, the DC GIS gas-solid

insulating system is exposed to an

electrostatic eld at the time of en-

ergisation, followed by a eld tran-

sition to an electric ow eld. The

resulting eld distribution under DC

voltage is strongly inuenced by

several factors, such as the materials

used and their temperature- and

eld-dependent conductivities or

additional charge carriers from volt-

age-dependent sources. In view of

the related physical characteristics,

safe DC GIS operation requires the

selection of appropriate materials

for reliable electric eld control.”

The technology has been several

years in the making, with the whole

development process being accom-

panied by continuous short- and

long-term testing. The rst DC GIS

generation for ±320 kV projects was

fully type-tested in 2015. The type

tests for the second generation for

voltages up to ±550 kV were carried

out in 2018 and 2019 in Berlin and

Munich, including third-party wit-

nessing. All performed tests have

been passed.

The type tests have been per-

formed in accordance with relevant

IEC standards of AC GIS and DC-

specic recommendation of CIGRE

joint working group D1/B3.57, -

nally published as technical bro-

chure no. 842.

DolWin kappa was the ideal proj-

ect for the rst commercial use of the

technology. Timing-wise, the design

phase for DolWin kappa exactly

matched the nalised product devel-

opment of the rst DC GIS genera-

tion. Hence, the new product was

immediately integrated into the de-

size of the converter platform.

The DC GIS modules for DolWin

kappa have been pre-tested in the

switchgear factory in Berlin. After

transport to the yard in Cádiz and -

nal assembly of the transport units in

the platform, the DC GIS has been

successfully commissioned includ-

ing high-voltage testing. It is now

ready for sail-out in summer this

year.

The commissioning of this system

next year will be a milestone in Sie-

mens Energy’s rollout of the DC

GIS technology. The next will be

for the BorWin 5 offshore project,

Germany, which is scheduled to go

live in 2025. At 230 km, this will be

the longest offshore DC connection

to date.

Looking forward, future develop-

ment of the technology will see the

elimination of carbon emissions

from high voltage DC GIS. Follow-

ing a successful feasibility study,

the product development for what

Siemens Energy calls ‘Blue’ DC

GIS for voltages up to ±550 kV was

kicked-off at the start of this year.

Dr Koss concluded: “Siemens En-

ergy’s vision to achieve carbon neu-

trality includes utilising clean air, a

pure mixture of nitrogen and oxygen,

as the most sustainable insulating gas

with zero global warming potential.

In the future, the DC GIS will be F-

gas-free.”

THE ENERGY INDUSTRY TIMES - JUNE 2022

Technology Focus

The DolWin kappa

converter platform

is a key part of

Germany’s

DolWin6 offshore

wind farm

interconnection

project. Junior Isles

visited the platform as

it neared completion

to take a rst hand

look at an installation,

which for the rst

time features gas

insulated switchgear

for DC applications

up to ±550 kV.

High voltage DC GIS for

DolWin kappa

Almost ready to set sail:

Topside of the Dolwin

kappa converter station in

the yard in Cádiz, Spain

Dolwin kappa will see the rst use of a ±320 kV DC GIS

THE ENERGY INDUSTRY TIMES - JUNE 2022

Final Word

et’s dash into renewables at

lightning speed”, was the rally-

ing cry from European Com-

mission VP for the European Green

Deal, Frans Timmermans, as the Com-

mission rst outlined REPowerEU – a

plan to make Europe independent from

Russian fossil fuels well before 2030.

Now, a little over two months later, the

Commission has provided greater de-

tail on what that plan entails.

Certainly the EU needs to move at

warp speed as Russia cuts off gas and/

or electricity supplies to EU countries

one-by-one. But doing so at the neces-

sary pace will be far easier said than

done.

Progress does not come without

struggle and its way is neither swift

nor easy but the EU is, by and large,

taking the right approach.

Mark Zukerberg once said: “… if

you do the things that are easier rst,

you can actually make a lot of prog-

ress.” It is heartening to see that, with

energy savings being the quickest and

cheapest way to address the current

energy crisis, and reduce bills, the

Commission has at least not missed

this trick.

REPowerEU proposes to enhance

long-term energy efciency measures,

including an increase from 9 per cent

to 13 per cent of the binding Energy

Efciency Target under the ‘Fit for 55’

package of European Green Deal

legislation. “Saving energy now will

help us to prepare for the potential

challenges of next winter,” the Com-

mission stated.

The Commission has therefore also

published an ‘EU Save Energy Com-

munication’ detailing short-term be-

havioural changes that could cut gas

and oil demand by 5 per cent and en-

couraging Member States to start

communication campaigns targeting

households and industry. The EU’s

executive arm also sets out contin-

gency measures in case of severe

supply disruption, and will issue

guidance on prioritisation criteria for

customers and facilitate a coordinated

EU demand reduction plan. Through

its ‘EU Save Energy Communication’

Member States are also encouraged to

use scal measures to encourage en-

ergy savings, such as reduced VAT

rates on energy efcient heating sys-

tems, building insulation and appli-

ances and products.

But that is where the quick and

easy(ish) tasks end.

The REPowerEU strategy calls for a

“massive scaling-up and speeding-

up” of renewable energy in power

generation, industry, buildings and

transport to accelerate the bloc’s en-

ergy independence, give a boost to the

green transition, and reduce prices

over time. The Commission proposes

to increase the headline 2030 target for

renewables from 40 per cent to 45 per

cent under the ‘Fit for 55’ package.

In the long term, the EU executive

aims for solar and wind energy to

produce 66 per cent of the system’s

electricity by 2050, doubling the rate

from the current 33 per cent. Within

this framework, the aim is for wind

to account for 31 per cent of the EU’s

energy production capacity and the

bulk, 35 per cent, to come from solar

energy.

It says that setting this overall in-

creased ambition will create the

framework for other initiatives, in-

cluding: a dedicated EU Solar Strat-

egy to double solar photovoltaic ca-

pacity by 2025 and install 600 GW by

2030; a Solar Rooftop Initiative with

a phased-in legal obligation to install

solar panels on new public and com-

mercial buildings and new residential

buildings; doubling of the rate of de-

ployment of heat pumps, and measures

to integrate geothermal and solar

thermal energy in modernised district

and communal heating systems; and a

Commission Recommendation to

tackle slow and complex permitting

for major renewable projects, and a

targeted amendment to the Renewable

Energy Directive to recognise renew-

able energy as an overriding public

interest. It said dedicated ‘go-to’ areas

for renewables should be put in place

by Member States with shortened and

simplied permitting processes in ar-

eas with lower environmental risks.

Gerben Hieminga, ING’s Senior

Sector Economist, however, points to

what he sees as several “pinch points”

in the strategy, especially the rapid

acceleration of renewables.

While improving the permitting

procedure helps developers, it is

important to remember that there also

has to be buy-in from communities.

“While co-creation might increase

local support, it is not a guarantee that

processes will speed up. And local

opposition could easily increase as

the transition accelerates and re-

gional sceneries change faster than

people are willing to accept,” said

Hieminga.

Power grids will also be a limiting

factor. Reacting to the REPowerEU

announcement, European grid opera-

tor TenneT stressed that the ambitious

national and international renewable

energy targets requires offshore wind

developers, policy-makers and grid

operators to “intensify and accelerate

their cooperation”. It also highlighted

the huge challenge for offshore wind

power, noting that the whole supply

chain needs to be prepared for the

coming growth.

Speaking at the recent North Sea

Wind Summit in Esbjerg, Denmark,

where Commission President Ursula

von der Leyen presented the RE-

PowerEU package to Heads of State

from the four North Sea countries,

TenneT’s CEO Manon van Beek, said:

“The REPowerEU package sets im-

portant steps shortening and simplify-

ing permitting processes for the de-

ployment of renewable energy. Grid

infrastructure projects should benet

from the same acceleration rules as

renewable energy projects.”

Hieminga believes power grids are

likely to remain a persistent barrier.

“Phasing out fossil fuels increases

power demand, and on the supply side,

renewables cause peak supplies at

times when the sun shines and the wind

blows,” he said. “In many cases, we’re

reaching capacity limits on transport-

ing power over the grid. Governments

are still a long way from designing a

clear rulebook to allocate scarce ca-

pacity. It remains to be seen if it will

come soon, as it requires tough

choices between economic activities.”

Labour and material shortages

should also not be overlooked. Noting

that the transition is very labour inten-

sive, he said electricians, welders, in-

stallers, etc., are “very hard to nd”.

These issues, he stressed, “could get

far worse if the transition needs to

progress at ‘lightning speed’ and the

war in Ukraine continues”.

But perhaps the biggest pinch point

with the EU’s overall plan to wean

itself off Russian fossil fuels, is the

limited ability of renewables to meet

heat demand.

“Too often, the energy transition is

framed in terms of solar and wind

power as a solution to everything,”

said Hieminga. “But power demand

only makes up one-fth of total en-

ergy demand. The vast majority of

energy demand comes from heating

purposes. Solar and wind power can-

not make much of a difference here as

power electrons are far from a perfect

substitute for gas molecules. Such

examples always make me realise that

the real challenge is in transforming

heating demand, not power demand.

REHeatingEU would have been a

better name instead.”

It is an important point, one that has

to some extent been addressed in the

new strategy. REPowerEU builds on

the ambitious heat pump targets it set

out in March. Those targets require

around 20 million heat pumps to be

installed in the EU by 2026 and

nearly 60 million by 2030. The Euro-

pean Commission now aims to double

the deployment rate.

Arguably more is needed, at least in

terms of overall strategy to help the

sector deliver on the targets.

Thomas Nowak, the European Heat

Pump Association’s secretary-gener-

al, said: “Today the EU Commission

set out many good jigsaw pieces but

did not shape a consistent picture on

heating and cooling. Europe needs a

heat pump strategy and the industry

an EU heat pump accelerator to speed

up deployment and help Europeans

get off fossil gas faster. Since today’s

package does not address this need,

we invite interested groups to join us

in co-creating it, hoping that its core

aspects will be taken up in forthcom-

ing policy.”

Clearly there is plenty work to be

done and at daunting speed. But per-

haps any forthcoming policy not only

needs to framed in terms of ‘the speed

of lightning’ but should also give

thought to ‘the heat of lightning’.

There’s more to lightning

than speed

Junior Isles

Cartoon: jemsoar.com

“