Showing posts with label electricity. Show all posts
Showing posts with label electricity. Show all posts

Monday, 30 April 2012

A crisis in leadership in Japan's nuclear industry.



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By:Nicholas Newman



Failing to make the right decision is easy to do. Regrettably, despite years of technological progress and experience, governments and energy companies continue to make such mistakes. Nevertheless, due to the increasing scale of investment and environmental hazards that the industry faces, the world energy leadership needs to do better than it has in the past.

If it is clear those events at Japan’s Fukushima Daiichi nuclear plant have as much to do with bad decision-making by the country's energy leadership as it has to do with the massive sea quake that caused a tidal wave to hit the doomed nuclear power station. Examining the factors that contributed to the poor decision-making that led to disaster in Japan last year, one comes to the conclusion that the events transpired could have been substantially mitigated or even avoided by the country’s energy leadership.

Here are some of the reasons that contributed to Japan's unpreparedness for such a nuclear crisis and surprising negligence of nuclear power plant safety standards. These factors that contributed to the Fukushima incident range from internee sign fighting between the country’s government agencies (Ministry of Environment and its two regulatory agencies the Nuclear Safety Commission and Nuclear and Industrial Safety Agency) as well as the plant’s owners Tokyo Electric Power Co. Nor did it help that the power plant's operator had been found to have ignored safety advice on several occasion from both domestic and international nuclear professionals such as the International Atomic Energy Agency (IAEA).

It is clear from government reports that the leaderships of various stakeholders in the industry, including Japan's regulatory agencies and nuclear power station operator TEPCO made serious errors which would have been avoided if the organisational culture was more accountable and open to inspection to not only Japan's voters, but also the international community at large.

For instance, there are several documented examples of the national regulatory agencies ignoring the advice of such world agencies such as the IAEA. Reports suggest that the regulatory system was suffering from turf wars and intra-agency rivalries between regulatory agencies and departments of government ministries.



Nor did it help that TEPCO falsified safety records and ignored the advice given to it by both the domestic regulators and the International energy agency revealed in a report by Japan's Independent Investigation Commission. In this report, it was revealed that Japanese electric power companies had since 1980, been unwilling to cooperate with the IAEA 's operational safety review of the country’s power plants. This review known as the Operational Safety Review Team (OSART), is where a team of experts conduct an in-depth review of operational safety performance at a nuclear power plant by checking the factors affecting safety management and personal performance.

In 1992, this operational safety review of Fukushima made a number of recommendations which Tokyo Electric Power Co, subsequently dismissed. In 2002, it was revealed that TEPC had falsified 29 cases of safety repair records regarding cracks found at several of its nuclear reactors, including those at Fukushima Daiichi in the late 1980s and 90s. Despite this, the power company declined the offer by the IAEA to institute a fact-finding process to improve safety at the plant concerned. It was announced by the Chief Executive at TEPCO, that the proposed regulations were unrealistically strict and not in accordance with actual operational requirements.

Nor did it help that the entire nuclear community of the country was suffering from isolationist and secrecy tendencies, which were not helped by delusions that the country's nuclear power sector was the best regulated, most advanced and managed industry in the world. The perception amongst many Japanese nuclear professionals was there was no need for Japan to learn from the rest of the world. In a sense Japan's nuclear community was suffering from classic Galapagos Island syndrome symptoms.

Much to the surprise of these professionals the events at Fukushima were a wake-up call; it became clear from various investigations that Japan's nuclear power sector was rotten to the core. It became clear that the industry was totally unprepared for the crisis when it occurred and was not able to provide solutions to such a crisis. It did not help that many of those civil servants working in nuclear regulation and safety management, did not have the opportunity to develop long-term expertise in the subject, because of the practice of regularly rotating civil servants to other government ministries. In addition, it did not help that findings found that the regulators were not truly independent of the power companies they were supervising.

Unfortunately, breaking out of the Galapagos syndrome for Japan's nuclear sector is going to prove hard task. Japan will need the help of the international community to create a new decision making energy leadership culture so that it equips it with the tools to avoid such complacency and a repeat of such disastrous mistakes. There are plans to establish a new, powerful nuclear safety agency this summer that will replace the old agencies and ministerial departments. Unfortunately, many of the new staff for this new agency will come from the failed organisations that contributed to Japan's nuclear disaster.

However, perhaps the best way to revolutionise Japan’s nuclear community is if it imports new leadership and experts from abroad, until Japan has trained up the necessary recruits in the standards of the world nuclear community. Unfortunately, foreign CEOS leading Japanese companies are rare and tend only to stay a short time due to inherent organisational resistance to change. In addition, Japan, the country finds very difficult to change its organisational culture, given the extremely conservative, traditional nature of its society. This is despite its appearance as one of the world's most technologically advanced nations. This can be seen by its failure to implement the radical changes required to break the country out of economic stagnation in recent years.


Japan's government wants to restart two nuclear plants to avert summer power shortages this summer, but public skepticism of nuclear safety and the industry remains high. Before March 2011, Japan depended for 30% of its power from nuclear power plants. Unless Japan can make the necessary changes it is unlikely there will be public support for the country’s nuclear power stations to start operating again. Instead the country’s energy leadership will have to continue to depend on expensive renewables and imports of gas from Australia to fuel its power sector in order to maintain energy security.

See also East Asia - a nuclear hotspot?

Japan's natural disaster will boost demand for LNG imports.

Wednesday, 7 December 2011

GARRIGILL NAMED BRITAIN’S SOLAR PANEL CAPITAL


A tiny village in Cumbria is laying claim to be Britain’s solar panel capital.
At least half a dozen residents out of just 200 in Garrigill have had panels installed – beating by days the Government’s controversial reduction in Feed-in-Tariff subsidies.
And other residents and potentially even the village hall are expected to go ahead with installations next year. All of the installations have been carried out by leading renewable energy company Eco Environments.
One villager, Fiona Gifford, who has had a 12-panel Sanyo system fitted, said: “A few of us had been talking about having solar panels installed for a while.
“As soon as the Government announced it was cutting the Feed-in-Tariff subsidies available, we decided we had better get a move on.
“By getting in ahead of December 12, when the reduction is due to come into force, the financial returns are extremely attractive. I expect my system to have paid for itself in about eight years. With electricity prices only set to go up, installing solar panels made total sense.
“Although we have been able to get our panels installed before the deadline, we believe the Government should have allowed a longer consultation period. The villagers felt so angry we wrote to our local MP Rory Stewart to protest.”
Other villagers who have gone ahead with installations are Tim Haldon and Jules Cadie, who have had 18-panel Sungrid systems installed, Paul Lincoln, an 18-panel Hyundai system, Laurie MacDonald, a 10-panel Hyundai array and Janette Thorley a 14-panel Sungrid system.
David Hunt, a director with Eco Environments, said: “For a village as small as Garrigill, the interest and uptake has been phenomenal. The village may even be Britain’s solar panel capital!
“We have worked round-the-clock to ensure that all of the current installations are up and running before December 12, but we are hopeful that as the word spreads, more of the villagers will want to install their own arrays next year.
“While the current subsidies are incredibly attractive, the post-December 12 tariff levels are still excellent especially when allied to the anticipated reduction in the cost of the panels.”
Eco Environments, which has its head office in Liverpool and regional offices across the UK, took three months’ orders in just two weeks following the news that the cuts would kick-in from December 12.
As of next week, the tariff for Solar PV schemes up to 4kW will be cut from 43.3/kWh to 21p/kWh.
Eco Environments is led by its three directors, Mike Clarke, David Hunt and Mark Buchanan, and employs 46 people compared to 11 at the same time last year. It is on course to increase turnover from £1.4million to £5million during the current financial year.
Eco Environments designs, installs and commissions renewable energy solutions for the domestic, commercial and construction sectors. It offers a comprehensive range of technologies including Solar Photovoltaic (PV), wind turbines, solar thermal and air source heat pumps. It is one of only a small number of companies to have successfully secured Microgeneration Certification Scheme (MCS) accreditations for all four of its specialist areas.
Apart from its new head office in Liverpool, Eco Environments has regional offices in Carlisle, Newcastle, Manchester, Leeds, Birmingham and North Wales. During the next few months, further offices will open in the south of England. Staff numbers will also rise to approximately 60 during the current financial year.

 

WiseEnergy Africa awarded 500MW facilities management deal


WiseEnergy Africa awarded 500MW facilities management deal by ix:Africa fund
WiseEnergy Group now managing €2bn renewable energy assets worldwide
London – 7th December 2011: WiseEnergy Group, a leader in the complete management of renewable energy generation assets, with €2 billion under control, will manage up to 500MW of solar and wind power projects in South Africa on behalf of ix:Africa, a new impact investment fund seeking to raise €400m to dedicate to renewable energy projects in Africa.
Already present in the UK and Italy, the world’s largest market for solar energy, WiseEnergy will operate in Africa as WiseEnergy Africa. Its local team is already working with the ix:Africa fund and the South African Government to review the potential for major solar and wind projects in the country, ahead of the next round of government project auctions in March 2012.
WiseEnergy Africa offers investors seeking to enter the South African market a full suite of services, from project design and consent, to management of construction and operation of the plant.
"Africa is one of the most promising markets for the development of renewable energy projects and South Africa acts as a true gateway”’said Aldo Beolchini, Director at WiseEnergy. “Having expanded into the UK and South Africa, two attractive markets for renewable energy, we seek to replicate our success in the Italian market where we are the largest operator in the sector.”
“In emerging nations such as South Africa, there is an enormous appetite for energy and a requirement to double generation capacity in a very short space of time. Only renewable energy projects can meet this demand. Last year, Italy and Germany alone installed solar power equivalent to ten new nuclear power plants. Combined with high solar radiation and a willing Government, South Africa’s hunger for the swift development of new generation capacity makes it an attractive, low risk market for renewable energy investment.”
Earlier this year, WiseEnergy passed the milestone of managing €2bn of renewable energy assets worldwide, having taken on the management of its first solar energy development in the UK – a 2MW facility in Trevemper, Cornwall, owned by NextEnergy Capital and with an expansion capacity of up to 5MW.
WiseEnergy UK is now in talks to take on comprehensive management and operation responsibilities for a string of other utility-scale UK solar developments owned by third parties. Aldo Beolchini explains: “There are over twenty professional solar project owners in the City that have been impacted by changes to UK solar subsidy and policy. Similar to NextEnergy Capital, these investors had no choice but to complete the construction of their most advanced developments and shelve plans for a much bigger portfolio of UK assets.
“It no longer makes sense for these owners to invest in their own in-house asset management teams. The solution is outsourcing. We have brought WiseEnergy to the UK to fill this gap in the market. Asset management is a fundamental requirement in the solar sector, where people underestimate the potential for performance optimisation and the need to ensure professional technical management.
“There is a common misconception that PV stands for “Plain Vanilla” and that these assets can be left to operate on their own following grid connection; this is far from true and our experience demonstrates that with active management these plants can perform better than expected, with exponential impact on their financial returns. With over fifty years’ combined solar management experience, our team is well placed to offer the UK market the independent asset management it now clearly needs.”

About WiseEnergy:
WiseEnergy is a subsidiary of NextEnergy Capital, a London-based merchant bank focused on the renewable energy sector in Europe and South Africa.
In the field of private equity, NextEnergy Capital promotes, co-finances and manages funds whose objectives are to identify, acquire, realise and manage investment platforms in the renewable energy sector. These include power plants implementing different technologies (mainly photovoltaic, thermodynamic, biomass from algae and biofuel for aircrafts) in Europe, with the brand name NextPower.
NextEnergy Capital launched NextPower development, the largest development company in Italy, and WiseEnergy, the firstEuropean company specialised in solar asset management. In the field of Financial Advisory, NextEnergy Capital undertakes mandates involving M&A and capital market transactions for clients wishing to expand their presence in the renewable energy market. Over the past 18 months, NextEnergy Capital has arranged investments for €100m in the renewable market. www.nextenergycapital.com

Monday, 21 November 2011

Dragons’ Deborah and Theo commit to solar industry


Tomorrow afternoon there is going to be a big solar rally and lobbying of Parliament by the solar industry to demonstrate the sector's anger over the government's proposal to cut the all important Feed-in-Tariff by 50%. On 31 October the coalition announced that they plan to bring in this drastic cut which could damage the solar industry and discourage British homeowners from investing in solar panels on their home.

Deborah Meaden and Theo Paphitis from the Dragons’ Den have just signed the deal today to invest in a solar company. I know this in itself isn't necessarily worthy of an interview, but given the fact that the Dragons have decided to invest in the solar industry despite the current troubles shows that they believe there is a strong future for the solar sector. Chris Hopkins, the founder and MD of Ploughcroft Solar who appeared on the Dragons' Den is available for interviews tomorrow if you would be interested in getting a local solar firm's point of view on what is happening in London.

Chris Hopkins, the founder and MD of Ploughcroft Solar who appeared on the Dragons' Den is available for interviews tomorrow if you would be interested in getting a solar firm's point of view on what is happening in London. And we can also offer Deborah Meaden to give her views as to why solar remains a strong investment opportunity for the British consumer.

Dragons’ Deborah and Theo commit to solar industry

Dragons’ Den investors Deborah Meaden and Theo Paphitis have today shown their commitment to the distressed British solar sector by signing a deal with Yorkshire-based Ploughcroft Solar, one of the UK’s leading solar PV panel installers.

With a solar rally and lobby of Parliament planned for tomorrow afternoon (Tuesday 22 November), the solar industry and green organisations are up in arms over the government’s plans to halve the all important Feed-in-Tariff (FIT) which has encouraged tens of thousands of British homeowners to turn to solar.

Demonstrating that they believe there is still a bright future for solar in this country, Deborah and Theo have invested in Ploughcroft Solar as a result of MD Chris Hopkins’ pitch on the Dragons’ Den programme this summer.

Said Deborah: “In our lifetime, a switch towards renewable energy is not an option – it has to happen. Consumers need help to make the right choices as there are many conflicting messages being issued to the public. A review of the FIT is the right thing to do, although the scope, timing and conflicting messages have not been helpful.

“Although the government’s proposals to reduce the FIT from 43p/KWh to 21p/KWh are drastic, we believe that even if this new tariff is introduced solar is still an attractive option to homeowners. As energy bills continue to rise consumers will be looking for ways of lowering their energy costs and going green. With the 21p/KWh FIT solar photovoltaic (PV) panel homeowners will get a sensible return on their investment, as well as seeing lower electricity bills and helping the environment.

“Theo and I are both 100% committed to the growth and stability of Ploughcroft, which is leading by example within the solar industry. The government’s proposals haven’t scared us off and should not discourage the British public from investing in solar and other renewable energies. Our job is to make sure people still understand there is a good reason to commit to renewable energy, both financially and ethically. Once the government’s final decision on the new FIT has been made the solid, forward thinking renewable industry can continue to grow.”

Chris Hopkins, who has been at the forefront of the solar industry for six years and is also a member of the newly formed Green Construction Board for the Department of Business, Innovation & Skills added: “Since the government made its FIT reduction announcement on 31 October we have seen a 50% increase in enquiries compared with the previous month. We have already secured sales on systems that we will be installing in January and February 2012 on the new tariff. This indicates that homeowners remain keen to reduce their electricity bills whilst doing their bit to help the environment.”

The expertise of Deborah Meaden and Theo Paphitis will help Ploughcroft Solar expand into new areas of renewable energy throughout 2012, and support the company’s mission to become the name for renewable energy for homeowners across Britain.

Members of the public and businesses can email fits@decc.gsi.gov.uk or telephone 0300 068 5733 to register their comment on the proposed policies.

For further information visit www.ploughcroft.co.uk

Monday, 24 October 2011

Could Britain scrap offshore wind power?


Rising energy bills or putting increasing pressure on operators and government s to cut power prices. there is increasing talk that socalled eco friendly offshore power is too expensive for both both customers and taxpayers. Could we see many planned offshore wind projects never built as european governmenst switch to gas and more coal power stations as the politically and economically expediant thing to do.

Offshore wind is one of the most talked-about forms of renewable energy. No doubt when the European Commission will publish its Energy Roadmap 2050 in December, it will be crucial in reaching the EU's renewable energy and climate targets. Yet in practice not too many offshore wind parks have been built as yet. At the end of 2010, barely 3,000 MW of offshore wind capacity had been installed in Europe, mostly in the UK and Denmark, according to figures from the European Wind Energy Association (EWEA).

 Countries like Spain (number two in onshore wind power), Portugal, France, Greece and Italy have not built a single offshore wind turbine yet. Germany (number one in onshore wind) has built just 92 MW. This picture, however, is set to change drastically. Many European countries have highly ambitious expansion plans in offshore wind. Germany wants to scale up its capacity to 8,000 MW, France to 4,000 MW, the UK to 13,000 or maybe even 20,000 or 25,000 MW. Countries like Denmark, Ireland, Sweden and Belgium also have ambitious plans.

In all, according to EWEA, by 2020 some 40,000 MW of offshore wind power capacity will have been built in Europe. That's the equivalent in capacity of some 40 coal-fired power stations.

That is, of course, if all plans go through, which is still an "if". The first country to have scrapped its offshore wind power plans is, a bit ironically, Holland, the country of windmills. The reason: the high costs. So far the Dutch are the exception, but in the UK too a political discussion has started. The UK government has now set up a panel that will investigate how the costs of offshore wind farms can be brought down. To read more http://www.europeanenergyreview.eu/site/pagina.php?id=3299

Friday, 21 October 2011

Eni announces a giant gas discovery offshore Mozambique

Comment on below press release:This announcement by Eni S.p.A. should turn Mozambique into a major energy exporter for Southern Africa. This will be good news for investors in various new power station schemes being constructed to export power from Mozambique to South Africa and other members of the South African Power Pool. Currently, many of the countries in the region are suffering from power cuts due to insufficient investment by operators to keep pace with demand.

Eni announces a giant gas discovery offshore Mozambique
San Donato Milanese (Milan), 20 October 2011 - Eni announces a giant discovery at the Mamba South 1 prospect, in the Area 4 Offshore Mozambique. The discovery well encountered a total of 212 meters of continuous gas pay in high-quality Oligocene sands.

The Mamba South 1 discovery well is located in water depths of 1585 meters approximately 40 km off Cabo Delgado coast, in the Northern offshore of Mozambique. This is the first exploration well in Area 4. Results exceed pre-drill expectations and confirm the Rovuma Basin as a world-class natural gas province.

The well will be drilled to reach an expected total depth of around 5000 meters. After completion of drilling and testing activities, the rig will move to drill the second commitment well, Mamba North 1.


Eni considers that this impressive discovery can lead to at least 15 tcf of gas in place in the Mamba South Area where the potential of the Tertiary Play that exists in Area 4 will be further assessed under the present drilling.
The outstanding volume of natural gas discovered will lead to a large scale gas development with a combination of both export to regional and international markets through LNG and supply to the domestic market. This will support the industrial and economic growth of the Country.

The Mamba South discovery marks a new milestone for Eni since the resource potential assessed with the first exploration well makes it the largest operated discovery in the company's exploration history. The exploration success in Mozambique expands the leadership of Eni in Africa by opening a new eastern front of activities.

Eni is the operator of Offshore Area 4 with a 70-percent participating interest. Co-owners in the area are Galp Energia (10 percent), KOGAS (10 percent) and ENH (10 percent, carried through the exploration phase).
Company Contacts:
Press Office: Tel. +39.0252031875 begin_of_the_skype_highlighting +39.0252031875 end_of_the_skype_highlighting – +39.0659822030 begin_of_the_skype_highlighting +39.0659822030 end_of_the_skype_highlighting
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39.800 11 22 34 56
Switchboard: +39-0659821 begin_of_the_skype_highlighting +39-0659821 end_of_the_skype_highlighting

ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site:www.eni.com

Thursday, 20 October 2011

Sub-Saharan Africa hungers for power



Nicholas Newman http://www.oxfordprospect.co.uk/Freelance-Journalist.html
In terms of its per-capita endowment of primary energy, sub-Saharan Africa (SSA) is close to the global average. Its 800 million people make up about 9 per cent of the world's population and they are estimated to share 8 per cent of global gas reserves, 10 per cent of the world's oil, and 13 per cent of hydropower resources – as well as much more than their fair share of solar radiation. http://www.powerengineeringint.com/articles/print/volume-19/issue-9/power-report/sub-saharan-africa-hungers-for-power.html

Thursday, 6 October 2011

Is Italy’s Power Sector Facing a Risorgimento?

Italy Power Review



The Italian power sector faces six main issues:

  1. high electricity prices
  2. slow pace of market reform
  3. insufficient investment in capacity
  4. dependence on imports
  5. a lack of domestic nuclear power
  6. until recently a lack of a comprehensive energy policy   
Part 1 - The Problems Facing Italy's Power Sector Italy has the most expensive electricity prices in Europe!
Italian consumers today, pay amongst the highest electricity prices in Europe reports Italy’s AEEG (Anti-trust Authority for Electricity and Gas). This is due, in part, to the high usage of natural gas and weak competition in the market.  http://www.oxfordprospect.co.uk/Italian-Power-Review.html

The Balkans: In need of a jolt


Problems including war-damaged infrastructure, unrealistic power prices and insufficient investment trouble southeast Europe. Although the EU is helping the region, will it be able to avoid a looming electricity crisis?

Nicholas Newman http://www.oxfordprospect.co.uk/Freelance-Journalist.html

Southeast Europe is struggling to keep the lights on. Since January 2007, the region has experienced a worsening power supply situation that threatens to reverse many of the economic, social and environmental improvements it has achieved since the end of the Yugoslav conflicts of the 1990s.
In January 2009, the region nearly experienced a system-wide blackout because of the gas dispute between Russia and Ukraine. It helped that the demand for power was lower than usual at the time due to the economic slowdown and the winter holidays, but even when the situation is less difficult, problems can occur.

Damage and disruption


Even without the damage and disruption caused by the Yugoslav conflicts of the 1990s, the region’s power sector would have been in need of substantial new investment and reform. Up to the end of the 1990s, energy decision-makers appeared to have little concern for the economical production and use of electricity. http://www.powerengineeringint.com/articles/print/volume-18/issue-5/features/the-balkans-in-need-of-a-jolt.html

Wednesday, 5 October 2011

Are the Kremlin’s power market reforms in danger?

Did you know we could be seeing the end to Russia’s power sector liberalisation? Russia’s state controlled energy giant Gazprom and Ranova a private-sector investment fund are planning to merge their interests in the nation’s six largest generating companies. Such a proposal would create a new company dominating 25% of Russia’s power sector. It would also increase state influence over the power sector, due to Gazprom being a partially privatised energy utility.

Who will this benefit?

The proposed company would certainly bring new benefits, in terms of economies of scale, improved access to new investment funds, resources and specialist expertise in many related fields from district heating to solar power. http://www.oxfordprospect.co.uk/Are-the-Kremlin's-power-market-reforms-in-danger.html

World Energy Market Prospects 2011


A quick look at various aspects that make up the global power generation sector, including wind, solar, nuclear, hydro and coal power station prospects.
Despite the popularity of renewable technology, development of conventional power plants continues to grow a pace.

This year is likely to see the end of the feather bedding of renewables in many countries, due to budgetary constraints in numerous countries. Given these new market conditions both investors and operators are being faced with harder often politically unpopular choices to make in their investment strategies. This article gives an overview of the picture facing investors in various parts of the world. http://www.oxfordprospect.co.uk/World-Energy-Market-Prospects.html