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Australia plans to slow power plant closures

  • Market: Coal, Electricity
  • 07/04/22

The Australian federal government plans to slow down the accelerated rate of power plant closures, which are mainly ageing coal-fired power plants, with proposals requiring utilities to provide a five-year notice before closing a plant compared with the current 3½ years.

The changes are to ensure that the energy sector has enough time to build new power generation capacity to replace the planned exiting capacity, with the lead time required to build most forms of new generation capacity far exceeding the current 3½-year notice period, Australian energy minister Angus Taylor said. The government has requested the Australian Energy Market Commission to make changes to the National Electricity Rules, he said.

The proposed changes come as several utilities operating in Australia have brought forward the closure dates of their respective coal-fired plants, most of which are near the end of their technical life and are facing increasing competition from solar power generation during daylight hours and in turn reduce spot power prices and cause operating losses for the coal-fired power plants.

The proposed new rule also includes a new definition of ‘longer term mothballing', within notice of closure arrangements, Taylor said. A longer term mothballed plant will be defined as a generator that will be unable able to dispatch electricity for nine months or longer over a 12-month period.

These generators will be subject to the same notice period that applies to permanent closures, to avoid potential gaming where generators could mothball a plant indefinitely without providing any notice or date of an intended closure, Taylor said. Under the proposed rule, the Australian Energy Regulator would investigate any notice that it suspects to be speculative.

In 2019 the government also set up a [task force to look into options to deal with the planned closure of the 1,680MW Liddell coal-fired power plant in New South Wales by April 2023, including a further extension to its lifespan or replacing it with a new coal-fired power plant.

Taylor has also had a plan where idle coal-fired power plants would be paid in case they are required during peak periods if demand surges or supplies from existing power generation plants are disrupted. This plan was opposed by the majority of Australia's state and territory governments.

The rule changes come ahead of an expected federal election to be held before the end of May.


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19/09/24

Kosovo confident in winter 24-25 supply: TSO

Kosovo confident in winter 24-25 supply: TSO

London, 19 September (Argus) — Kosovar transmission system operator (TSO) Kostt is confident it can meet demand over the winter season through domestic generation and imports, Kostt told Argus in an interview ahead of the Energy Week Western Balkans conference. Domestic generation capacity is not enough to meet demand during periods of high consumption, such as during the winter season, and imports will be necessary during peak tariff periods to meet demand, the TSO said. Maximum demand over the upcoming winter season is expected to reach 1.45GW, and transmission capacity can reach 1.85GW under normal operating conditions, Kostt said. Kosovar distribution company Keds and energy supplier Kesko had to import up to 35pc of power during peak periods in December last year, when peak demand reached 1.1GW. Annual maintenance at the 680MW Kosova B lignite-fired plant was completed on 18 August, and the plant is scheduled to be fully available over the winter season. Constraints on the electric system should be reduced in the upcoming winter season, as Keds has started metering the four Serbian-majority municipalities located in the country's north in January . Kostt was responsible for supply in the region last year, but received payment through subsidies from the Kosovar government, rather than tariffs. But subsidies were sometimes delayed, which created challenges in balancing real-time deviations within Kostt's control area, the TSO said. An agreement was reached last year with Serbian state-owned utility EPS subsidiary Elektrosever to normalise power supply for the Serbian majority municipalities, which were not paying for the unauthorised withdrawal of electricity. Elektrosever is now responsible for supply in the region and submits daily nominations and adheres to balancing requirements, although Kostt still meets its financial requirement to cover losses in the transmission system. There have been no violations of the operational terms since the agreement went into effect on 1 January, Kostt said. "System operations have become more stable, and deviations are now within the Entso-e acceptable limits," Kostt said. And Elektrosever has agreed to Kostt's request to submit an electricity supply plan for the region for 2025. By Annemarie Pettinato Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Western Australia to allow some onshore gas exports


19/09/24
News
19/09/24

Western Australia to allow some onshore gas exports

Darwin, 19 September (Argus) — Western Australia's (WA) state government will allow onshore developers of gas fields to export about 20pc of their output as LNG during a five-year window, in response to a growing failure to bring on new supplies for the domestic market. WA previously banned onshore gas exports, except in the case of Australian independent Beach Energy's 250 TJ/d (6.7mn m³/d) Waitsia stage 2 project . Beach may be required to share its infrastructure with fellow Perth basin firms, the WA government said, to expedite market access for new projects. Australian mining firm Mineral Resources, which has argued for permission to export 85pc of the gas from its Lockyer project as LNG and fellow WA-based firm Strike Energy may benefit from the changes, as both hold significant reserves in the Perth basin. The changes apply to new onshore developments or existing projects seeking to expand production. Developers are required to reserve 80pc of gas produced for WA, with this rising to 100pc from 2031 onwards. The policy shift follows dire outlooks for WA's gas supplies as the state attempts to wean itself off coal-fired power generation. It currently contributes about a third of the electricity into the state's largest power grid. A parliamentary report last month warned WA cannot rely on sporadic appeals for more gas to meet demand. "These policy changes are sensible responses that balance the need for Western Australia to secure its energy future while encouraging onshore producers to bring on more gas supply as and when it is needed," mines and petroleum Minister David Michael said on 19 September. The 15pc reservation for offshore LNG projects will continue, while WA has promised more transparency on the policy with the publication of a yearly WA Domestic Gas Statement to reveal how producers are meeting obligations, with a review to take place after two years. An interim parliamentary report tabled earlier this year showed about 8pc of the state's offshore gas output has reached WA consumers since 2006, representing just over half the required volumes. Following public criticism of LNG producers' contributions, Australian independent Woodside Energy has since pledged an extra 32PJ (854mn m³) of domestic supplies by the end of 2025 . WA will also seek to strengthen laws designed to prevent companies banking prospective onshore oil and gas tenements, with a review into the "use it or lose it" policy to be led by the state's energy department. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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EU needs future power grids task force: Ember


18/09/24
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18/09/24

EU needs future power grids task force: Ember

London, 18 September (Argus) — The EU must put in place a future grid task force to bring together scattered legislation and directives, so the bloc can better implement its power grid roadmap and integrate renewable capacity, according to UK-based think-tank Ember. Integrating intermittent renewables into the power grid adequately will require substantial upgrades to the power network across the continent. This is a political priority for the EU but responsibility is shared across a number of European governmental bodies, Ember said. Most of the 80 action points laid out in EU policy and legislation are the European Commission's responsibility, but some objectives are overseen by EU distribution system body DSO Entity, European grid operators association Entso-E, energy regulators' agency Acer, the EU's High-Level Forum on European Standardisation, and individual member states. The policy framework is a "positive step", Ember said. But significant grid work and modernisation are needed, which would be best met through a single body that can ensure "timely and effective" delivery, according to Ember. A dedicated task force would centralise policy support and monitoring through a single channel, provide access to financing from the European Investment Bank and European Bank for Reconstruction and Development, and develop a clear roadmap for all actions that are currently in the commission's remit. The need for a roadmap is significant as several of the commission's targets do not have scheduled completion dates, Ember said. The EU must centralise funding access for member states and grid operators to ensure stakeholders can use as much of the funding available to them as possible, according to Ember. Funding is currently underutilised and spread across several financial instruments. In addition to uniting these instruments, the access mechanisms should be streamlined and administrative burdens reduced so that stakeholders of varying sizes can utilise these funds. The EU should provide targeted funding for pilot projects on grid digitalisation, and then create a "technical toolbox" to support the digitalisation of distribution grids. The toolbox would detail best practice approaches, standardisation guidelines and interoperability technologies to ease digitalising the power network. These innovative grid technologies (IGTs) or grid-enhancing technologies (GETs) use existing infrastructure to improve renewable integration while reducing overall investment needs. IGT and GET technologies could improve renewable integration with costly network upgrades by as much as 40pc, according to a study by Latvian grid operator AST. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Indonesian Sumsel 1 coal-fired unit eyes December start


18/09/24
News
18/09/24

Indonesian Sumsel 1 coal-fired unit eyes December start

Manila, 18 September (Argus) — The first 300MW unit of the 600MW Sumsel 1 mine-mouth coal-fired power plant in Indonesia's south Sumatra province is scheduled to begin commercial operations in December following several years of delays. The plant, which is located in Muara Enim regency, is being developed by China Shenhua Energy and Lion Power Energy, which have 75pc and 25pc respective stakes in the project. Once fully operational it is expected to consume around 2-3mn t/yr of coal. Lion will be responsible for sourcing the coal. The $750mn plant is part of Indonesia's 35GW power generation roadmap developed by the Indonesian government in 2015. The project was contracted to China Shenhua Energy in 2016. The first unit at the plant was originally scheduled for completion by 2020. But land acquisition delays and the Covid-19 pandemic and resulting restrictions on the movement of people and travel bans delayed construction, Lion said. Construction work on the plant structure is now in the final stages and operational testing is expected to begin soon. But hitting the operational target date also depends on the completion of a 275kV high-voltage line that will connect the plant to the grid, state-owned utility PLN said. The 80km transmission line will pass through four districts in south Sumatra. The local government is pushing for the acceleration of the voltage line construction and has instructed the sub-district head and local government offices to provide support for the power line construction, PLN said. Sumsel 1, once fully operational, will operate on a build-own-operate basis with a 25-year power supply contract with PLN, the utility said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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USCG updates ongoing lower Mississippi restrictions


17/09/24
News
17/09/24

USCG updates ongoing lower Mississippi restrictions

Houston, 17 September (Argus) — The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week. The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft. Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft. The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years. Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week . But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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