Chile passes energy storage, electromobility bill

  • Spanish Market: Electricity, Emissions
  • 19/10/22

Chile's congress passed a bill today promoting investment in energy storage and electromobility to alleviate power transmission congestion and assist in closing all coal plants by the early 2030s.

The government-sponsored bill authorizes capacity payments for standalone storage systems that provide power or function as spare capacity. It also enables industries that self-generate power from renewable sources for productive purposes, such as green hydrogen projects, to connect to the national grid to inject excess electricity or withdraw energy.

It will exempt electric vehicles from annual road taxes for two years. The exemption would cover 75pc of road taxes in years three and four, 50pc in years five and six and 25pc in years seven and eight.

Transmission expansions have lagged the development of non-conventional renewable energy in Chile, causing 770GWh of curtailment from solar and wind sources in the first nine months of 2022.

The bill will allow intermittent renewable energy to be stored and dispatched during peak periods or at night providing flexibility and security to the system.

The senate's unanimous passage cemented its approval by the chamber of deputies in March.


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22/04/24

Australia to launch 6GW renewables tender in May

Australia to launch 6GW renewables tender in May

Sydney, 22 April (Argus) — Australia's federal government plans to launch the country's largest ever tender for renewable energy in May, with more than a third of the capacity to be allocated to New South Wales (NSW) state. The first major tender under the federal government's expanded Capacity Investment Scheme (CIS) will offer support for 6GW of renewable generation capacity, with at least 2.2GW of the total set specifically to NSW, the federal and state governments said in a joint statement on 22 April. A market briefing outlining the tender process will be released in early May. A minimum of 300MW will also be exclusively allocated to projects in South Australia (SA), even though that is still subject to a final agreement between the federal and state governments. The remaining capacity will be allocated across the National Electricity Market, which apart from NSW and SA also includes Queensland, Victoria, Tasmania and the Australian Capital Territory. Tenders will run every six months until 2026-27 under the expanded CIS, with up to 15 years of support for a total of 32GW . This will consist of 23GW of renewable capacity like solar, wind and hydro and 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries with at least two hours of dispatch. The inclusion of generation projects in NSW in the first CIS tender will replace the state's scheduled long-term energy service agreements (LTESA) tender under its NSW Roadmap. NSW will proceed though with the LTESA tender for long-duration storage infrastructure in the second quarter of 2024, as well as processes to award access rights for its Central West Orana and South West Renewable Energy Zones. The federal government also said it plans to launch a separate tender in Western Australia in mid-2024 targeting 500MW of dispatchable capacity. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan's Jera shuts Chiba gas-fired power unit


22/04/24
22/04/24

Japan's Jera shuts Chiba gas-fired power unit

Tokyo, 22 April (Argus) — Japan's largest electricity producer by capacity Jera has shut the 360MW No.1-4 combined cycle gas turbine (CCGT) units at its Chiba power complex because of a technical problem. Jera closed on 22 April the CCGT units at the 4.38GW Chiba complex in east Japan's Chiba prefecture, according to a notice by Japan Electric Power Exchange (Jepx). It is unclear when the units will be brought back on line. The unexpected shutdown is likely to have limited impact on Japan's power market as the country has experienced mild weather lately that has capped power consumption. Jera consumed 16.7mn t of LNG in April-December 2023, lower by 4.8pc compared with the same period a year earlier, according to the firm's latest financial results. Japan's total power demand averaged 83GW during 15-21 April, down by 3pc from the previous week, data show from nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators. Japan plans to add 1.1GW of thermal capacity during the week to 28 April, with the addition of 11.5GW outstripping the closure of 10.4GW, according to Argus' survey based on a Jepx notice. The difference incorporates the net increase this week in gas-fired capacity of 2GW and the net drop in coal-fired capacity of 887MW. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's QPM to focus on gas, cut Tech battery spend


22/04/24
22/04/24

Australia's QPM to focus on gas, cut Tech battery spend

Sydney, 22 April (Argus) — Australian battery metals refiner Queensland Pacific Metals (QPM) will focus on energy markets via its Moranbah gas project (MGP) and limit further expenditure on its Townsville Energy Chemicals Hub (Tech) project. The firm will switch its prioritisation to its wholly-owned QPM Energy (QPME) business, with QPME's chief executive David Wrench to be appointed as QPM chief executive, the company said on 22 April. MGP's coal mine waste gas output from nearby the coal mining hub of Moranbah in Queensland's Bowen basin will be increased to 35 TJ/d (935,000 m³/d) by late 2024, up from October-December 2023's 28 TJ/d, with QPME to accelerate production and reserves to provide required peaking power for the national electricity market (NEM) via Thai-controlled energy firm Ratch Australia's 242MW Townsville Power Station. QPME aims to drill a further seven wells by the year's end, increase workovers and increase production from third-party supply of waste mine gas from regional coal mines. The company is also seeking to develop a portfolio of plants to supply up to 300MW of gas-fired power to the NEM, while compressed natural gas and micro-LNG facilities will also be developed in Townsville and Moranbah, QPME said. A surge in government support for renewable power generation in order to meet Australia's 2030 emissions target by retiring coal-fired power means more gas-peaking plants will likely be needed in the coming years to support variable generators. But Australia's domestic gas supply is forecast to experience shortfalls this decade, with predictions of a 76 PJ/yr gap in 2028. The Tech project which aims to produce 16,000 t/yr of nickel and 1,750 t/yr of cobalt sulphates from imported laterite ore saw its funding significantly reduced in February because of what QPM described as a "challenging investment environment" resulting from depressed nickel prices. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Europe 2.6°C above pre-industrial temperature in 2023


22/04/24
22/04/24

Europe 2.6°C above pre-industrial temperature in 2023

London, 22 April (Argus) — Temperatures in Europe stood at 2.6°C above pre-industrial levels in 2023, data from the World Meteorological Organisation (WMO) show. Europe last year experienced either its joint-warmest or second-warmest year on record, the WMO and EU earth-monitoring service Copernicus found today, in a joint report, European State of the Climate 2023 . The organisations use datasets covering different geographical domains for Europe. WMO includes Greenland, the South Caucasus and part of the Middle East in its dataset. Copernicus put the temperature in Europe last year at between 2.48–2.58°C above pre-industrial levels. The Paris climate agreement seeks to limit global warming to "well below" 2°C and preferably to 1.5°C. Europe is warming roughly twice as fast as the rest of the world. The global average temperature in 2023 was 1.45°C above the pre-industrial average, the WMO said earlier this year . It confirmed 2023 as the hottest on record. Climate scientists use the period 1850-1900 as the baseline for a pre-industrial average. Temperatures in Europe in 2023 were above average for 11 months of the year, and there was a record number of days with "extreme heat stress", the report found. The three warmest years on record for Europe have occurred since 2020, and the 10 warmest since 2007, it said. Electricity generation from renewables in Europe last year reached the highest proportion on record, at 43pc up from 36pc in 2022, the WMO and Copernicus said. Increased storm activity between October-December and above-average precipitation and river flow resulted in higher potential for wind power and run-of-river hydropower generation, respectively. Atmospheric concentrations of CO2 and methane — the greenhouse gases (GHGs) causing the most warming — continued to increase in 2023, "reaching record levels", the report found. It put CO2 concentrations at 419 parts per million (ppm) and methane at 1,902 parts per billion (ppb) on average last year. "Only around half of anthropogenic emissions of CO2 have been absorbed by land vegetation and oceans", the organisations said. GHGs from human activity are driving climate change, but the El Nino weather phenomenon also typically leads to higher temperatures. The El Nino weather pattern, which started in July 2023, peaked in December , the WMO said previously, but could still affect temperatures this year. There is a 60pc chance of La Nina conditions — which typically lead to lower temperatures — developing in June-August, the US National Oceanic and Atmospheric Administration said earlier this month. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Spain-Portugal congestion income up by 554pc in March


19/04/24
19/04/24

Spain-Portugal congestion income up by 554pc in March

London, 19 April (Argus) — The spread between the Spanish and Portuguese spot index prices has widened in the first quarter of 2024, with Portugal clearing at the lowest price in Europe in March, Iberian power exchange Omie reported. Spanish and Portuguese day-ahead market prices have cleared at larger spreads between them compared with the first quarter of 2023, Omie data show. Congestion income between the two at times of decoupling more than doubled on the year in January, but fell in February. March registered the largest decoupling, supporting congestion income to 554pc compared with February, and was up by 172pc from March 2023. Negotiated output in the intra-day market auctions increased by 19.6pc on the month, and rose by 10pc from March last year. But lower prices pushed economic volume down by 43pc on the month, and by almost 76pc on the year. The volume of negotiated power in the day-ahead market in the first quarter of 2024 was up by 5.49TWh from the same period in 2023. March accounted for the largest increase, rising to 21.52TWh from 19.39TWh in March 2023. 1Q24 spot index price down Spot index prices rose by €4.64/MWh on the year in January, but fell during the rest of the first quarter. February cleared at an average discount to the previous year of €93.92/MWh, and March of €70.02/MWh. Combined the first quarter of 2024 has cleared below half of the same period in 2023. Portugal cleared at the lowest average price among European day-ahead market indexes in March, followed by Spain at a €1.03/MWh premium. The Spanish spot has cleared at an average of €5.82/MWh so far in April, sharply below the €73.77/MWh it cleared at in April 2023. This is also below expectations in the over-the-counter (OTC) market, as the April contract expired at €23.55/MWh at the end of March. The Spanish spot also cleared below zero for the first time . Gas-fired output down, hydropower generation up CCGT generation has averaged 2.6GW in the first quarter of 2024, down from 4GW in the same quarter last year. Average nuclear output also fell by 800MW to 6GW compared with the same period. And the trend has continued so far in April, with nuclear generation averaging 4.9GW, down from 6.3GW in April 2023. Solar photovoltaic (PV) output increased by around 240MW, while wind generation remained similar to the previous year's levels. Operational wind capacity increased to 30.29GW from 30.18GW over the quarter, and PV to 25.22GW from 25.16GW. Hefty rainfall over the first quarter has supported an increase of hydropower output by 1.5GW. And the trend of higher hydropower generation has carried on so far in April, supported by stocks at around 75pc, the highest in a decade . Hydropower has averaged 6.2GW so far in April from 2.36GW in the same month in 2023. But wind generation is down by around 500MW compared with the same period last year. By Thess Mostoles Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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