Energy Efficiency and Climate Change News: 25 August 2010 – 31 August 2010
Merkel: Nuclear plants could run up to 2035
(EurActiv, 30 August 2010)
German chancellor Angela Merkel said earlier this week that Germany’s nuclear power plants could reasonably be extended 10-15 years past their scheduled shut down date of 2021. Economy Minister Rainer Bruederle also supports running plants 12 years beyond the scheduled shutdown date. Chancellor Merkel would want to be able to extend nuclear power without the approval of the Bundesrat (upper house of parliament). Environment Minister Norbert Roettgen would like to limit nuclear plant extension to eight years. He has said the expert report the government had received and will use to make a decision did not present any cost-benefit analyses, and that different extension lengths would have little difference on electricity prices, and would not affect the achievement Germany’s “relevant goals.”
Analysis: China clean energy plan hinges on coal price (Reuters, 27 August 2010)
China’s major energy investment plan, currently awaiting government approval, will require parallel policies to make it work, say analysts. Wang Yi of the China Academy of Science said fossil-fuel prices must be lifted while providing incentives to non-fossil energy sources. Private energy firms point out that power price reform is also essential, otherwise only state firms will invest in “green” plants as they can afford to lose money initially. Another challenge will be upgrading China’s electricity grid, without which adding new renewable sources will be difficult.
Implementation the crux for China energy plans: IEA (Reuters, 27 August 2010)
In an interview with Reuters, the IEA’s Fatih Birol said China’s USD 736 billion energy investment plan represented nearly half the investment needed over the next 20 years to limit emissions growth, and was going to the right areas: renewables, nuclear power, and efficiency. He said the plan would help the world meet its climate goals, but that implementation of the plan could be a challenge, such as existing fossil fuel subsidies that would slow implementation. He also pointed out the absence of CCS in the plan.
Vice President Biden Releases Report Showing Recovery Act Energy Impact (EERE News, 25 August 2010)
A report tracking the results of the USD 100 billion invested as part of the American Recovery and Reinvestment Act says the funding is having an impact on science, technology and innovation projects and has set the US on track to achieve three major energy breakthroughs: Halving the cost of solar power by 2015 (from 2009 level); cutting cost of electric vehicle batteries by 70% by 2015 (from 2009 level); and doubling renewable energy generation and manufacturing capacity by 2012.
China, South Africa in talks on http://www.esi-africa.com/node/11538″>nuclear power cooperation (ESI-Africa, 24 August 2010)
A China National Nuclear Corp. (CNNC) official said talks were ongoing between Chinese and South African officials over exporting nuclear technology. South Africa is exploring the potential for nuclear energy to face electricity supply gaps and out of climate change concerns. South Africa’s Standard Bank Group and the Industrial & Commercial Bank of China Ltd have signed a MOU to serve as a platform for nuclear co-operation, and participated in discussions between Guangdong Nuclear Power Co. and the South African government.
Seoul to bring G20 leaders’ attention to ‘http://www.koreatimes.co.kr/www/news/biz/2010/08/123_71799.html”>green growth‘ (The Korea Times, 22 August 2010)
In an interview with the Korea Times, Young Soo-gil, chairman of Korea’s Presidential Committee on Green Growth, says he believes Korea is entering “ecological modernisation” – the final phase of modernisation. Korea is also set to help developing countries with harmonising growth and environmental objectives, and will make green growth a component of increased ODA commitments. He adds that the Presidential Committee will be allocating the national GHG emission reduction target to individual sectors over the next year, and will prepare for the introduction of an emission trading system.
China closes factories as green deadline looms (AFP, 22 August 2010)
In an effort to meet its target of reducing energy consumption per unit of GDP by 20% between 2006 and 2010, the Chinese government is ordering thousands of factory closures rather than risking embarrassment. Heavy industry firms have been ordered to close down old and obsolete furnaces, production lines and even entire factories by the end of September or risk bank loan freezes and power cuts.
Industry, business and utilities
US wind power (FT Lex, 31 August 2010)
The US wind power points to the current “quiet period” in wind power development in the US – installations are down 71% compared to the same period a year ago, and down 57% compared with 2008 – as “an opportune time to go green for big, dirty utilities.” A case in point, Exelon’s “wise move” in purchasing Deere & Co’s wind development unit for a little over USD 1,200/kW, “plus some juicy tax credits.”
http://www.energy.gov/news/9433.htm”>Secretary Chu Announces Two Million Smart Grid Meters Installed Nationwide (DOE Press Release, 31 August 2010)
The US Department of Energy (DOE) announced that 2 million smart grid meters have been deployed across the US, thanks in part to funding under the Recovery Act. Analysis by the Electric Power Research Institute (EPRI) estimates that smart grid technologies could reduce electricity use by over 4% annually by 2030.
Poland’s power plans worry environmentalists (EurActiv, 25 August 2010)
Environmentalists are criticising the Polish government’s plans to give away tens of millions of emission permits to new power stations, which it can do in the ETS’s third phase for plants “physically initiated” by the end of 2008. WWF is criticising Poland’s interpretation of the term, as applying if geological documentation is prepared, the area is occupied for construction, or the land has been leveled. This interpretation could allow the construction of up to 15000 MW of new power capacity.
U.N. carbon funding key for China clean coal developers (Reuters, 25 August 2010)
After the CDM Executive Board rejected a 4000 MW ultra supercritical (USC) coal plant in India, developers in China are also concerned as to the viability of their projects, though the nine Chinese projects waiting accreditation are on a much smaller scale. Developers say the only USC plants to have been successful without CDM had government subsidies. The World Bank has previously reported that ¾ of all new plants in China already employ USC boilers, and that costs have been cut to those of regular coal plants.
UK wind farm
Operators are reportedly angry at a National Grid proposal to share the costs of increased backup capacity associated with large new nuclear plants coming online. They argue that though National Grid found that generators with less than 350MW capacity, including all operational wind farms, “pose no additional loss risk to the system”, generators will be charged an equal amount per MW they provide to the grid to cover the increased cost of providing greater backup.
Transport
US wind power (FT Lex, 31 August 2010)
The FT’s Lex column points to the current “quiet period” in wind power development in the US – installations are down 71% compared to the same period a year ago, and down 57% compared with 2008 – as “an opportune time to go green for big, dirty utilities.” A case in point, Exelon’s “wise move” in purchasing Deere & Co’s wind development unit for a little over USD 1,200/kW, “plus some juicy tax credits.”
Secretary Chu Announces Two Million Smart Grid Meters Installed Nationwide (DOE Press Release, 31 August 2010)
The US Department of Energy (DOE) announced that 2 million smart grid meters have been deployed across the US, thanks in part to funding under the Recovery Act. Analysis by the Electric Power Research Institute (EPRI) estimates that smart grid technologies could reduce electricity use by over 4% annually by 2030.
U.N. carbon funding key for China clean coal developers (Reuters, 25 August 2010)
After the CDM Executive Board rejected a 4000 MW ultra supercritical (USC) coal plant in India, developers in China are also concerned as to the viability of their projects, though the nine Chinese projects waiting accreditation are on a much smaller scale. Developers say the only USC plants to have been successful without CDM had government subsidies. The World Bank has previously reported that ¾ of all new plants in China already employ USC boilers, and that costs have been cut to those of regular coal plants.
http://www.reuters.com/article/idUSTRE67O1F420100825
Will wind farms pick up the tab for new nuclear? (BusinessGreen, 24 August 2010)
UK wind farm operators are reportedly angry at a National Grid proposal to share the costs of increased backup capacity associated with large new nuclear plants coming online. They argue that though National Grid found that generators with less than 350MW capacity, including all operational wind farms, “pose no additional loss risk to the system”, generators will be charged an equal amount per MW they provide to the grid to cover the increased cost of providing greater backup.
Emissions trading/Carbon market
Japan plans to bind large firms to CO2 caps: draft (Reuters, 30 August 2010)
In a draft seen by Reuters, Japan’s Environment Ministry has prepared proposals to establish a mandatory emissions trading scheme as of 2013, with decisions needed on how quotas are to be allocated, who is responsible for power sector emissions, and whether the scheme should be linked to others. The draft says companies can use both domestic and international offsets, and special provisions will be made for companies facing international competition, those manufacturing CO2-intensive products, or those whose products help reduce emissions globally. The Environment Ministry would like the draft bill to be presented at an extraordinary session of parliament expected later this year.
EU Climate Commissioner Connie Hedegaard has asked her services to examine quality restrictions for industrial gas offset projects in the EU ETS post-2012, following the examination of industrial HFC-destruction projects in China and India by the CDM Executive Board. She said clarification on offset restrictions in the ETS’ third phase will be provided ahead of UN climate talks in Cancun, following an impact assessment
IETA asks for clarity over CDM in ETS (IETA, 24 August 2010)
The International Emissions Trading Association (IETA) sent a letter to EU Climate Commissioner Connie Hedegaard, expressing concern that regulatory uncertainty and risk will hamper private sector investment in the CDM at a time when it most needed. The letter referred to uncertainty over potentially new eligibility criteria and required bilateral agreements for use of credits within the ETS. A list of specific questions from IETA members is attached to the letter.
U.N. Panel to Review CER Request from 5th HFC Plant (Reuters, 23 August 2010)
The CDM Executive Board said it would review a request for offsets from a HFC-23 destruction project in China, the fifth within a week, and a sign that Chinese HFC-23 projects will likely be scrutinised following allegations from environmental groups that projects intentionally boosted HFC emissions in order to apply for CDM projects.
Oregon and Washington not to trade in WCI; New Mexico hearing on WCI backup plan (Van Ness Feldman, 23 August 2010)
The states of Oregon and Washington were unable to pass implementing legislation before the end of legislative sessions to participate in the Western Climate Initiative (WCI) regional GHG cap-and-trade programme to begin in 2012. They remain WCI partners, though to date only two U.S states (California and New Mexico) and three Canadian provinces (British Columbia, Ontario and Québec) have passed implementing legislation to participate in the trading scheme as of 2012. The New Mexico Environmental Improvement Board (EIB) also held hearings on a state-only emission reduction plan to take effect 2012 if neither the WCI nor a national emissions trading programme begins, or if WCI trading volumes do not meet the 100Mt/year threshold the EIB has set for New Mexico’s participation in the scheme.
China Renewables to Power Ahead Without CDM: Report (Reuters, 23 August 2010)
Nan Li, head of Asian environmental markets for Citibank, says that while CDM investment is drying up in China due to post-2012 policy uncertainty, investment in and development of renewable energy would forge ahead without the offset scheme. Li pointed to the opportunities of future bilateral offset projects, which countries such as Japan are exploring, and the possible establishment of a domestic Chinese emissions trading scheme “within the next five years”.
http://planetark.org/enviro-news/item/59248
Revenue & Customs to restore VAT on carbon credits (BusinessGreen, 23 August 2010)
The UK’s HM Revenue & Customs (HMRC) announced will reintroduce reverse charge VAT on carbon credits as of November, after temporarily approving a zero VAT rate last year in response to widespread VAT carousel fraud.
Climate aid reaches $30 billion goal, but is it new? (Reuters, 26 August 2010)
While funding promised by developed countries under the Copenhagen Accord is reaching close to the USD 30 billion pledged (Reuters estimates this as USD 29.8 billion), several analysts observe that some funds are restated or renamed previous commitments, and that it is difficult to determine how much of it is “new and additional” as countries have either not defined this or do so in different ways. Switzerland, Mexico and Netherlands, along with other countries, will unveil a web portal for countries to voluntarily track promises.
courtesy of IEA
IEA