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Gene Ellis

EU energy market: Pipe dream - FT.com - 0 views

  • EU energy market: Pipe dream
  • A more competitive market also means importing new sources of gas from Azerbaijan and the eastern Mediterranean, as well as building terminals for liquefied natural gas.
  • France’s nuclear industry was also reticent about cheap renewable energy streaming into the French grid on an uncertain timetable.
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  • Spain’s grid is barely connected to France so its wind farms cannot export their production when it exceeds domestic demand. Similarly, solar and wind energy from southern Italy is wasted because it is not effectively linked to the industrial north.
  • Full energy convergence needs more than interconnectors. Widely divergent electricity prices are often determined by national tax rates. Grids that can respond to demand further afield in a continent-wide “supergrid” will need more direct (rather than alternating) current infrastructure. While it took Spain and France more than three decades to build a 64.5km interconnection, some 52,000km of lines need to be built or upgraded across the continent.
  • Poland argues that Gazprom has confidential data on each country it deals with, knowing its gas prices and infrastructure vulnerabilities. It can then use this data to its advantage, pushing some countries into more onerous contracts than others.
  • The advantage of a hub would become more apparent when new supplies from Azerbaijan and the eastern Mediterranean are integrated into the market by means of the so-called southern corridor supply route.
  • Geoffrey Feasey of the European Network of Transmission Systems Operators for Electricity says one-third of the most vital projects to connect Europe are being held up by “permitting and public acceptance”.
Gene Ellis

Wind Farms Take Root Out at Sea - NYTimes.com - 0 views

  • “If you want to do wind on a big scale with power plants based on wind, you need to go offshore,
  • but that will depend on many factors, including costs and government support.
  • Siemens figures there are about 3.3 gigawatts of offshore wind power connected to the grid in Europe. That is similar in size to a large contemporary nuclear power station.
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  • Wind farms are no longer engineering experiments or small pilot schemes. They have grown very large, to the point where they are of the same scale as gas- or coal-fired power stations.
  • Offshore wind has advantages beyond the presence of sea breezes. The seabed is relatively cheap real estate, and much larger wind farms can be built there than on land. The vast expanses available at sea allow economies of scale that may bring down costs.
  • The key to cutting costs, Mr. Hannibal said, is to simplify the installation process and turn manufacturing of turbines into a cookie-cutter industrial process. The latest turbines are made of just a few components that are relatively easy to anchor to the sea bottom.
  • Still, costs remain stubbornly high. Mr. Hannibal figures that the power to be produced by new German offshore wind projects will cost 130 to 140 euros, or $175 to $185, per megawatt hour, which is about triple the wholesale power price.
Gene Ellis

At Anchor Off Lithuania, Its Own Energy Supply - NYTimes.com - 0 views

  • The price of natural gas in Lithuania was 15 percent higher than the European average last year, according to the European Commission. Only Bulgaria, where Gazprom has a near monopoly, paid more. Gazprom also has an ownership stake in Lithuania’s natural gas distribution network. Part of Lithuania’s electrical infrastructure is still controlled from Moscow, too, and it is not yet possible to connect the country to the European grid.
  • Lithuania also does not use oil shale, which provides much of the electricity for Estonia, the third Baltic member of the European Union.
  • Lithuania used to rely on nuclear power to supply most of its electricity. But as a condition of joining the union in 2004, the country agreed to shut down its Chernobyl-style nuclear power station at Ignalina.
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  • Klaipedos Nafta, a state-controlled oil terminal operator, is leasing the ship, formally known as a floating gas storage and regasification unit, from a Norwegian company, Hoegh, in a 10-year deal for 430 million euros, or $560 million.
  • Lithuania would need to import L.N.G. at prices 5 to 10 percent less than Gazprom charges for its gas to ensure the project breaks even; Lithuanian officials said the price of L.N.G. imports could be as much as 20 percent less than Gazprom charges.
  • “We will be able for the first time in our history to negotiate, because we have alternative sources,”
  • But Mr. Masiulis said his greatest challenge was overcoming the Lithuanian bureaucracy and fending off attempts to give the project “a shade of corruption.”
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