South Korea raises renewables standard
South Korea's ministry of trade, industry and energy (Motie) has raised the country's renewable portfolio standard (RPS) policy to 12.5pc for 2022.
The South Korean government has adopted a more aggressive stance on renewable energy as it looks to reach its greenhouse gas reduction targets. South Korean power producers with more than 500MW of capacity were previously obligated to produce 9pc of their output from renewable sources in 2021, with the expectation of reaching 10pc in 2022.
The government will increase the mandatory renewable energy ratio to 14.5pc in 2023, 17pc in 2024, 20.5pc in 2025 and 25pc in 2026.
Motie's revised RPS policy, announced in a legislative notice, comes after the country's renewable energy target was increased from 10pc to 25pc in April 2021. The annual RPS targets are designed to help South Korea reach its 2030 greenhouse gas reduction target of 40pc and achieve carbon neutrality by 2050.
Most independent power plants (IPPs) in South Korea are not subject to the RPS programme if their power capacity is below 500MW. IPPs that co-fire imported wood pellets usually do so to earn renewable energy credits (RECs) to sell on the spot market. The policy revision is likely to address oversupply of RECs in the market.
Most stakeholders did not object to the revised RPS yearly ratio. All 23 utilities directly affected by the revision gave their agreement, as did 183 related companies, with 47 giving vague or mixed responses and two disagreeing, Motie said.
Motie will calculate and release the mandated renewable supply volume for each company in January 2022.
Some market participants are not expecting any impact on imported wood pellet demand in South Korea, as Motie halved the number of RECs earned by South Korean state-controlled utilities co-firing imported wood pellets to 0.5 REC/MWh in July 2020, reducing the incentive to co-fire imported wood pellets.
The government has been more inclined towards the use of unused woody biomass as an alternative, although supply is unable to meet the market's demand. Current supply accounts for only 6-9pc of demand and prices are not as competitive as those for imported wood pellets, one market participant said.
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EU needs to shake up energy markets: Draghi report
EU needs to shake up energy markets: Draghi report
Brussels, 9 September (Argus) — The EU should take measures in energy markets that are "dominated by vested interests", including antitrust investigations, a report from former European Central Bank president Mario Draghi found today. The call came as part of Draghi's report into the EU's future competitiveness, which was requested last year by European Commission president Ursula von der Leyen. It identified cost-efficient decarbonisation as a major challenge, and said the bloc must focus on accelerated innovation and growth and overcome geopolitical dependence and vulnerability. The report, which runs to more than 300 pages, says the EU should carry out antitrust investigation into electricity and gas markets, and into energy imports, to deter "anti-competitive behaviour and tacit collusion" among companies, it said. There should be a common maximum level of energy surcharges in the EU covering all energy taxes, levies and network charges, the report found. Draghi — a former Italian prime minister — put forward specific proposals for energy markets including the development of an EU-level gas strategy, progressively moving away from spot-linked sourcing and increasing EU bargaining power, and reinforcing long-term contracts. He argues for decoupling inframarginal generation from natural gas prices through long-term power purchasing agreements (PPAs) and contracts for difference (CfDs). Draghi wants compensation mechanisms for offering flexibility on markets as well as joint purchasing of energy in addition to demand aggregation. Other ideas tackle speculative behaviour via position limits and dynamic caps as well as an EU trading rule book with "an obligation to trade in the EU". A further proposal is a review of a so-called "ancillary activities" exemption, under EU financial regulation, whereby non-financials, typically energy, firms can trade energy derivatives more freely without being authorised as investment companies. Speaking alongside Draghi today, von der Leyen noted the need to shift away from fossil fuels and support industry through decarbonisation, also by bringing down energy prices. Draghi's report noted the difficulty of cutting emissions in hard-to-abate industries, as well as in the transport sector. Planning is crucial, the report noted. For industry, it recommended "a mixed strategy that combines different policy tools and approaches for different industries", importing some "necessary technology" while ensuring the bloc retains some manufacturing capacity. It called for "a joint decarbonisation and competitiveness plan where all policies are aligned behind the EU's objectives." Von der Leyen did not react to specific proposals put forward by Draghi, and she is not obligated to act on the report's proposals. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore lifts low-carbon power import goal to 6GW
Singapore lifts low-carbon power import goal to 6GW
Singapore, 6 September (Argus) — Singapore has raised its low-carbon electricity import goal to 6GW by 2035, up from its initial target of 4GW. The target has been raised on the back of "strong interest by credible parties to participate in electricity import projects, and to ensure adequate supply to meet Singapore's future energy needs," said the country's Energy Market Authority (EMA) on 5 September. In line with this, the EMA has granted conditional approvals to two new projects to import 1.4GW of low-carbon electricity from Indonesia to Singapore. The first project is by Singa Renewables, a joint venture between TotalEnergies and energy resources development company RGE, with an import capacity of 1GW. The second is by Shell Eastern Trading in partnership with power producer Vena Energy, with a 0.4GW capacity. The EMA in September last year granted conditional approvals to five companies to import 2GW of low-carbon electricity from Indonesia. The EMA has now granted conditional licences to the companies, following substantive progress by these five projects. These conditional licences are issued to electricity import projects that have been assessed to be technically and commercially viable, and are at an advanced development stage. The EMA may subsequently issue the companies an electricity importer license to begin construction and commercial operations, once the obligations under the conditional licenses are fulfilled. The companies aim to begin commercial operations in 2028. The EMA "will continue to engage companies with credible and commercially viable proposals that can contribute to Singapore's 2050 net zero ambitions," it said. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore’s SP to launch 240MW solar project in China
Singapore’s SP to launch 240MW solar project in China
Singapore, 6 September (Argus) — Singapore's state-owned utility SP plans to start up a 240MW peak (MWp) agrivoltaic project in Guangdong province's Huizhou city, which will be fully operational by the end of this year. MWp refers to the maximum power output potential a solar farm has when reaching ideal conditions. SP expects the project to generate 7.5bn kWh of green electricity over the next 25 years, reduce coal use by 920,000t and avoid 4.46mn t/yr of carbon emissions. The project's solar installation capacity is 240MW, and marks SP's largest solar investment in China, the company said on 5 September. SP has secured 1.45GW of solar projects in China to date, spanning 18 provinces and municipalities. SP in May also partnered with China environmental technology solutions provider Qingdao Daneng Environmental Protection Equipment to invest and build a 90MW aquavoltaic farm in Qingdao city. This will power a green hydrogen facility in Qingdao, likely referring to Chinese refiner Sinopec's 4,500 t/yr facility . The solar project has an investment value of over 76mn Singapore dollars ($58.5mn) and is on track to connect to the grid by the end of the year. SP expects it to produce 162mn kWh/yr of green electricity and reduce carbon emissions by 160,000 t/yr. The operational model will incorporate renewable energy generation, grid integration, demand-side management, and energy storage. SP's first investment in solar assets was in June 2023, for 78MWp of agrivoltaics assets across four agricultural sites in the Dabu county of Meizhou city in Guangdong province. The project will generate 91.3GWh/yr of clean electricity, and reduce coal usage by almost 30,000t, which amounts to cutting more than 91,000 t/yr of carbon emissions. The operational date of this project was not disclosed. SP in May entered a strategic alliance with Shanghai-based CMB Financial Leasing to obtain financing services, which is expected to reach up to 8bn yuan ($1.13bn) over the next three years, to support the firm's deployment of renewable energy solutions in China. The projects will span utility-scale solar farms, distributed solar photovoltaic, energy storage, and district cooling and heating. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU gas-fired power output down in Aug
EU gas-fired power output down in Aug
London, 4 September (Argus) — EU gas-fired power generation fell on the year in August, even as above-average temperatures bolstered power demand. EU gas-fired output was 27.7TWh in August, making up 14.4pc of the generation mix, according to data from Fraunhofer ISE. EU gas-fired output was 29.3TWh a year earlier and 36.8TWh in August 2022. Spain and France drove the overall EU drop. Spanish gas-fired generation fell to 4.1TWh from 5.6TWh, as renewable generation rose on the year. French generation dropped to 626GWh from 1.6TWh as nuclear output increased. Italy partly offset this fall as gas-fired output increased to 9.6TWh from 7.7TWh. Gas-fired generation in Germany edged up to 3.2TWh from 2.9TWh. In Italy and Spain, usually the two EU countries with the highest summer gas-fired generation supported by strong demand for cooling, average maximum temperatures in Rome and Madrid were almost 3°C above 10-year averages. Maximum temperatures in Athens were also nearly 3°C above 10-year averages. Above-average temperatures boosted power demand for cooling. Total power demand last month hit 193.6TWh across the EU, up from 190.2TWh in August 2023, but still down from August in every other year since at least 2015, as shown by Fraunhofer data. Given the above-average temperatures — especially in southern Europe — and the growing use of air conditioning, the drop in power demand from pre-2023 might have been driven by weaker industrial consumption. Energy-intensive industries across Europe have continued to struggle this year with high energy costs and muted demand. German power demand in August was 36.9TWh, the lowest since at least 2010, apart from last year. And the decrease in gas-fired generation despite higher year-on-year EU power demand came as a result of higher nuclear and renewable output, the latter of which increased to 87.5TWh from 82TWh in August 2023, driven by strong solar output of 31.6TWh, up from 23.8TWh. Nuclear output rose to 51.6TWh from 46TWh, supported by increased French nuclear generation as nuclear unavailability decreased to 19.3GWh from 27.6GWh a year earlier. Coal-fired generation was down by almost a quarter in August from a year earlier, falling to 6.9TWh from 9.1TWh. Clean day-ahead spark spreads for 55pc gas-fired units held a premium to equivalent dark spreads for 40pc-efficient units on most days in August in Germany, France and Italy. This suggests there was an incentive for firms to boost gas-fired generation over coal-fired generation, at times of low renewable output. By Lucas Waelbroeck Boix Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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