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Australia plans to slow power plant closures

  • Spanish 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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25/09/24

Vietnam’s Vinacomin to boost coal imports

Vietnam’s Vinacomin to boost coal imports

Singapore, 25 September (Argus) — Vietnamese coal producer Vietnam National Coal and Mineral Industries (Vinacomin) plans to more than double its thermal coal imports over the next six years to meet an anticipated growth in demand. The state-owned company, which meets most of Vietnam's coal requirements, aims to lift imports to 12.6mn t this year and to 14.5mn t in 2025, and increase its receipts of seaborne thermal coal to 22mn t in 2030, a senior official from the firm told Argus on 25 September. It imported 9.2mn t of coal in 2023. The move to raise imports comes as Vinacomin wants to raise its blended coal supplies to utilities, because it is the key supplier to local coal-fired power plants. Vinacomin typically blends its domestic coal with imported thermal coal to meet utility requirements as anthracite accounts for most of the locally produced coal, and is not preferred by plants for direct use given its low volatile matter content. Vinacomin is also a key supplier of coal to industries such as steel and cement. The coal import plans support Vietnam's overall coal import outlook at a time when the country's seaborne coal receipts are set to reach an all-time high in 2024. Vietnam has imported 45.86mn t of all types of coal in the first eight months of the year, up by about 33pc from a year earlier, according to its customs data . The country could end up importing close to 69mn t of coal this year at the current average rate of 5.73mn t/month, according to Argus calculations, marking Vietnam's highest annual imports since the 55mn t of coal it received in 2020. The imports could reach about 73mn t by 2030 and rise further to peak at around 85mn t in 2035 , according to the government's latest national energy master plan released last year. Vinacomin's strategy to grow imports also comes as Vietnam's domestic coal output has remained rangebound and sluggish. Vinacomin has set a target to produce 37.4mn t this year, up from 36.8mn t it produced last year. Domestic coal output growth faces challenges as there is no near-term plan to explore the Red River delta, which accounts for nearly 86pc of Vietnam's total coal reserves of 48.9bn t. Coal mining in the belt could be ecologically sensitive as the bulk of the land is used for agriculture, while coal projects in the region could also be economically unviable. Vinacomin in 2024 is seeking imported coal with calorific value of NAR 4,800-5800 kcal/kg coal of low and mid-volatile matter coal, with typical sulphur content of 0.6pc to aid its blending efforts, the official said. Vinacomin buys the bulk of the coal via tenders and it refers to international coal indices including Argus' ICI index for Indonesian coal as well as the API index for non-Indonesian coal. By Saurabh Chaturvedi Vinacomin's thermal coal import plan (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Leaders call for fast-tracking renewable projects


24/09/24
24/09/24

Leaders call for fast-tracking renewable projects

New York, 24 September (Argus) — Countries need to fast track permitting processes for renewable projects and build more transmission infrastructure to meet the goal of tripling global renewable capacity by 2030, leaders said at the Global Renewables summit today. At the UN's Cop 28 climate summit in Dubai last year, countries agreed to take action to triple global renewable energy capacity from 2022 levels by 2030 and to double energy efficiency. Almost a year later, there are major barriers that are impeding investment needed to boost a faster expansion of renewables. "We must double down on implementation," European Commission president Ursula von der Leyen said at the event in New York, New York. Permitting has become a major barrier for developers to build their renewable and transmissions projects within the timeframes originally set, leading to delays and rising costs. This is turn creates uncertainty for investors interested in providing funds for the development of projects and expecting returns, speakers said. Countries' nationally determined contributions (NDCs) to reduce greenhouse emissions not only need to show their renewable capacity targets but also their electricity grid goals that allow the flow of renewable electricity and accelerate the growth of renewable capacity, Cop 28's president Sultan Ahmed Al Jaber said. Sorting out these bottlenecks with the proper regulations and policies will create certainty for investors and attract more project financing, leaders agreed. This year's Cop 29 will focus on speeding the delivery of goals set at Cop 28 as well as expanding and adding new solutions for the integration of renewables. Cop 29 president-designate from Azerbaijan Mukhtar Babayev said that they hope countries back a pledge to increase global energy storage capacity to 1.5GW by 2030 and to add or refurbish more than 80mn km (49mn miles) of electricity grids by 2040. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Spain approves new national energy and climate plan


24/09/24
24/09/24

Spain approves new national energy and climate plan

London, 24 September (Argus) — Spain approved a new draft national energy and climate plan (Necp) on Tuesday, alongside a new law regulating offshore wind capacity auctions. The cabinet approved the new plan for 2030, which will be sent to Brussels in the coming days, environment minister Teresa Ribera said on Tuesday. The new draft lays out Spain's goal of reaching 81pc of generation from renewables by 2030, but the final text will be made public in the official gazette in the coming days, alongside a new law regulating offshore wind capacity auctions, Ribera added. Spain could use up to 0.46pc of its territorial waters for offshore wind and tidal projects. But the country's fishing unions have been critical of plans to develop offshore wind plants, with Ribera saying that proximity to other industries, such as fishing, will be one of the factors under consideration in deciding project sites. Spain's deep seabed will require floating offshore wind farms, with only pilot projects currently in operation. This makes the development of offshore wind more complex and expensive, Iberdrola chief executive Ignacio Galan said. By Thess Mostoles Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop 28 goals ‘feasible’ with right conditions: IEA


24/09/24
24/09/24

Cop 28 goals ‘feasible’ with right conditions: IEA

London, 24 September (Argus) — Goals agreed by nearly 200 countries at the UN Cop 28 climate summit in 2023 — to treble renewables and double energy efficiency by 2030 — are "feasible with the right enabling conditions", energy watchdog the IEA said today. Those targets could "on their own, get the world fully two-thirds of the way to a Paris-aligned energy system by 2030", the IEA said. The Paris climate agreement seeks to limit global warming to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. But reaching those goals "will hinge on additional international efforts", including countries ramping up ambition in the next round of national climate plans, which are due for submission by early 2025. Today's report from the IEA "can serve as a guidebook for turning countries' collective pledges into action", it said. Countries agreed at Cop 28 to treble global renewable energy capacity to at least 11TW by 2030. This is "within reach thanks to favourable economics, ample manufacturing potential and strong policies", the IEA said. But countries will need to "build and modernise" 25mn km of electricity grids by 2030, and reach 1.5TW of energy storage capacity by 2030, it added. Of that, 1.2TW must come from battery storage, a 15-fold increase on current levels, the report found. The incoming president of Cop 29, Azerbaijan's Mukhtar Babayev, has placed grids and storage in the spotlight . His recently disclosed pledges for this year's summit include one that matches the IEA's recommendation on energy storage, plus seeks to add or refurbish at least 80mn km of grids by 2040. Doubling energy efficiency by 2030 "looks far out of reach under today's policy settings", the IEA said. Hitting that goal could reduce global energy costs by nearly 10pc, it said. Advanced economies should focus on electrification, as electric vehicles and heat pumps are "two- to five-times more efficient than their fossil fuel equivalents", the report found. Emerging markets should strengthen and enforce efficiency standards for new buildings and appliances, while switching from traditional cookstoves to "clean cooking" could save "save more energy annually than the current energy demand of Brazil", the IEA said. But finance is an obstacle. "Clean energy investment is skewed", the IEA said, with the vast majority going to advanced economies and China. The report suggested "stronger and more stable policies to attract private investment", and "more sizable, more targeted and more catalytic international support". The IEA pointed to the new climate finance goal , to be decided at Cop 29, as a key spur. The report recommended "inefficient fossil fuel subsidies" be phased out. "At a time when governments are concerned about the social acceptance of transitions, the fact that globally they spend nine times more making fossil fuels cheaper than they do on clean energy subsidies for consumers is a striking discrepancy", it said. Clear fossil fuel transition policies are necessary, and can "help to set market expectations", the IEA said. New unabated coal plants should not be approved, while "a significant number" of existing coal plants should be retired early. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Draught limits tighten on lower Mississippi River


23/09/24
23/09/24

Draught limits tighten on lower Mississippi River

Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. 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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