Stalemate Hits $10bn Czech Nuclear Plan on Funding

The Czech Republic's $10bn plan to build 2 atomic reactors near the German border that could supply electricity to the Bavarian industrial heartland is unravelling over financial and pricing disputes. CEZ, Europe's only utility with an atomic project out to bid, is beset by falling power prices and predictions that its financial muscle is too weak to safeguard investors. The Prague-based power company's two most senior executives clashed last month on how to fund the reactors. Bloomberg, 16th March.

Major Energy Firms Lobby for Delay to Green Deal

The UK's largest energy firms - including EDF - are pressing ministers to delay the launch of the Green Deal, saying they will not be ready to deliver the payment mechanism for it until the first quarter of 2013. Climate change minister Greg Barker insisted that the October launch of the Green Deal would go ahead as planned. TUNSE/Buildings, 16th March.

Cockenzie Power Station to Close after 45 Years

The Cockenzie coal-fired power station owned by Scottish Power is to close by next March because it cannot meet environmental standards. Scottish Power said it would make "every effort" to redeploy the 100 staff elsewhere in the company. Permission has been granted for a new gas-fired power plant at the site, though Scottish Power said it was evaluating its options. TUNSE/The Times (Scotland), 16th March.

New Secretary Of State Launches Energy Efficiency Deployment Office

Edward Davey, the new Secretary of State for Energy & Climate Change, used his first public speech to launch the long-awaited Energy Efficiency Deployment Office, which will combat policies that might deter energy efficiency investments. TUNSE/Energy in Buildings & Industry, 1st March.

UK Budget

The UK budget has provided greater certainty to the country's oil and gas sector with tax relief for decommissioning and field allowances to attract new investments. Chancellor George Osborne's promised tax relief of £3bn ($4.6bn) for new field allowances for deep fields with large reserves, targeted for the west of Shetland, in an effort to boost investment in the North Sea. www.interfaxenergy.com 22nd March.

Shotton CHP to Close by the End of 2012

International Power proposes to close the 210MW Shotton Combined Heat & Power (CHP) plant by the end of 2012. The plant is no longer competitive in the U.K. wholesale electricity market. Gas to Power Journal, 22nd March.

Shuweihat S2 IWPP

Japan's Marubeni Corporation announced the Shuweihat S2 IWPP, an Independent Water and Power Project, located at 250km south west of the city of Abu Dhabi, has achieved project commercial operation. The project includes the construction of 1,510MW power and 100 MIGD seawater desalination plant. A consortium of Siemens, Samsung C&T and Doosan Heavy Industries built the desalination and power plant on full turnkey basis. Gas to Power Journal, 22nd March.

CRC Could be Replaced by an Alternative Environmental Tax

The Carbon Reduction Commitment could potentially be replaced by an "alternative environmental tax" if it can't be simplified...Unveiling details of the Budget for 2012, Mr Osborne criticised the CRC...for being "cumbersome" and "bureaucratic" and suggested he wanted to lighten the burden on businesses....DECC will be bringing out full details of how they want to simplify the CRC and a formal consultation will be launched to give businesses a chance to have their say. Eddie News, 22nd March.

Obama Hits Back At Energy Policy Critics

The President says he supports speeding up building of Keystone XL pipeline as opponents accuse him of opposing traditional energy industry. FT, 23rd March.

EON Gas to Power

EON is not planning to mothball any of its gas-fired power plants in Germany, despite the negative impact of oil-indexed gas purchase on the economics of operating power plants. Falling operating hours of gas-fired plants in consequence of rising renewable energy production is exacerbating the dire economics of E.ON's portfolio of gas-to-power plants. Gas to Power Journal, 22nd March. 

www.globalenergyadvisory.com

Turkey Power Prices Influenced by Gas

Electricity prices in Turkey have surged as markets are concerned about a looming reduction in Russian gas supply as well as bottlenecks in the country's gas transmission infrastructure. Uncertainties about the outcome of negotiations between Botas and Gazprom over the extension of long-term gas supply contracts keep gas prices well supported. "There's no acute shortage just yet but electricity prices have jumped on supply concerns," a Geneva-based trader said.  As Botas and Gazprom are at loggerheads over pricing and volumes of gas supply, Turkish electricity producers are keen to secure alternative gas supplies in the form of LNG. Gas to Power Journal, 22nd March.

Third Party Access Rules and Nord Stream

The EU has ruled that the Gazprom-led consortium, Nord Stream, must allow other gas suppliers to share the capacities of that consortium's pipelines on German territory. This requirement, known as third-party access, is based on the EU's competition law and EU energy market legislation (natural gas and electricity). It is designed to mitigate the effects of vertically integrated monopoly arrangements, forcing a monopoly supplier to grant access to its own infrastructure for third-party competitors in a given market. The objects of the commission's decision are the OPAL and NEL gas pipelines in Germany. These lines connect the Nord Stream offshore pipeline (transporting Gazprom's gas on the Baltic seabed) with Germany's interior and farther afield in Europe. In effect, the commission has denied the requests for OPAL and NEL to be exempted from third-party access. Asia Times Online, 21st March.

Shell Signs Landmark Shale Gas Deal in China

Royal Dutch Shell has signed China's first shale gas production sharing contract (PSC) with China National Petroleum Corp. (CNPC). The PSC, which is awaiting government approval, covers the exploration, development and production of shale gas for a 3,500 square km area in the Fushun-Yongchuan Block within the Sichuan Basin. ....The shale interval they were targeting in the Fushun-Yongchuan Block was "very deep", and that hydraulic fracturing ('fracking') technology was being deployed...Gas produced from the PSC will be sold to Petro China, the operating division of CNPC, through its pipeline network in the Sichuan Basin, and will be delivered to customers throughout China. www.interfaxenergy.com 22nd March.

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Salmond Defies Party with Major Nuclear U-Turn

In what is seen as an astonishing U-turn, Scotland's First Minister Alex Salmond has said that an independent Scotland would retain its ageing nuclear power stations until as late as 2030. EDF Energy had been planning to extend the lifespan of both nuclear plants north of the border by an average of 5 years. However, it could extend their lifespan by up to 7 years. TUNSE/The Mail on Sunday (Scotland), 11th March.

Thousands Protest Against Reopening of Nuclear Plants

A year after the Fukushima Daiichi disaster, as many as 45,000 people took part in demonstrations in Tokyo against nuclear power. There are concerns that the government is pressurising local authorities to bring reactors back online after being shut down for safety checks. TUNSE/The Daily Telegraph, 12th March.

Safer Nuclear Power Set To Become Reality

Nuclear fusion remains the 'holy grail' in the search for a sustainable and non-polluting power source. Scientists have been working on fusion technology for 50 years, and an international collaboration based in Cadarache, southern France, is hoping to make fusion a reality. Components for fusion machinery are starting to be manufactured. TUNSE/Professional Engineering, 1st March.

Having Atomic Kittens

Cumbria will decide later this month whether to pursue being the site of the underground storage facility for the UK's nuclear waste. Though local support has been expressed for such a facility it is as yet unclear whether Cumbria's geology is suitable. TUNSE/Daily Mail, 15th March.

Third Nuclear Plant Plans on Ice

EDF Energy has cancelled an agreement with the National Grid to set up any new connection to the grid from Heysham. EDF Energy said all its plans for new stations will be focused on their sites at Sizewell and Hinkley Point. TUNSE/BBC 15th March.

US Nuclear Outlook

The US nuclear industry seemed to be staging a comeback several years ago, with 15 power companies proposing as many as 29 new reactors. Today, only 2 projects are moving off the drawing board. A shale-gas boom flooded the market with cheap natural gas, offering utilities a cheaper, less risky alternative to nuclear technology. PO Review, 19th March.

Safety Culture at Kori 1

The manager of the Kori 1 nuclear power reactor in South Korea has been sacked for covering up a safety-related incident at the plant last month. The plant owner now faces prosecution by safety regulators. A report yesterday by the Nuclear Safety and Security Commission (NSSC) said the incident came about during Kori 1's month-long maintenance outage in February. Placed in a cold shutdown state, the reactor had been receiving power from one of its three grid connections while the other two were undergoing maintenance. One of the two diesel generators was also under maintenance while the other was on standby and a third was available for manual start. The incident began when a worker made a mistake that led to the disconnection of grid power supply and then the standby diesel failed to start automatically. World Nuclear News, 22nd March.

Black Swan Nuclear Cost

Jim Crawford needs to know his nuclear power station on a gentle stretch of England's North Sea coast can withstand a chunk of volcanic rock dropping into the ocean 2,000m (3,200km) away in the Canary Islands. Since Japan's 2011 nuclear disaster, SizewellB's operator EDF has earmarked about £200mn ($317mn) to protect its U.K. reactors from previously inconceivable events. The collapse of an island off northwest Africa is among the most likely causes of a wave big enough to threaten the UK. EDF, the largest producer of atomic power, is preparing for so-called black swan events, crises that are almost impossible to predict, following the earthquake and tsunami that crippled the Fukushima atomic complex a year ago. Bloomberg, 22nd March.

www.globalenergyadvisory.com 

The EU's Vanishing Electricity Market

The EU's contestable electricity markets are shrinking. The deployment of subsidized Renewable Energy Sources (RES) is eating up the lion's share of new demand growth, or, where demand is contracting, they are biting deep into the share of the contestable market. As a result, wholesale electricity prices are becoming increasingly disconnected from the cost of new generation plant. There are two forms of power generation that have dominated new build capacity in recent years in Europe, and increasingly in the US: natural gas-fired plant and wind. This suggests that the backbone of the low carbon energy system of the near future will be flexible gas-fired plant responding to the vagaries of wind and other variable RES. Gas will act as the hydrocarbon bridge to a more sophisticated low carbon smart energy system that will include a greater range of RES, backed by demand response, storage and other clever means of balancing electricity supply with demand. Platts, 22nd March.

Weak European Spot Power Prices

European spot electricity prices were weaker on Thursday due to bearish supply factors and poor demand, as temperatures continued to climb above seasonal averages ahead of the weekend. French baseload prices for Friday delivery fell by 60 cents to €46.40/MWh in the over-the-counter market, while the equivalent German contract was off 70 cents at €43.90. The warmer weather has helped generate huge amounts of solar power while curbing consumption. Together with good thermal capacity supply, this has overridden the potentially bullish effect of low German wind power generation. Reuters, 22nd March.

UK Gas-Fired Plants Get Pass On Emissions Regulations