Eskom seeking superior coal

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Eskom is in negotiations with coal miners over quality and quantity of coal, and the utility might pay more for better quality coal in future, Eskom CEO Jacob Maroga said recently.

At the height of the electricity crisis earlier this year, Eskom said it was experiencing problems with coal quality.

It generates about 90% of its power from coal. Coal miners export better quality coal, at more than $100 a ton.

Maroga said if Eskom used better quality coal, it would spend less on maintenance. He said to get better quality coal, the utility might have to pay more. Maroga has consistently refused to divulge the price at which Eskom buys coal from its suppliers.

The power supplier intends to purchase 45-million tons of coal over two years to combat crippling coal shortages at coal-fired power generating stations. To date, the utility has purchased 39-million tons of this.

MarogaÂ’s comment came as the recent rains have dealt a blow to EskomÂ’s ambition to increase coal stock levels at all its power stations to 20 daysÂ’ supply, as its inventory has fallen from 13 days to 12 days.

Maroga said he was concerned about the quality of coal, saying if the utility continued to use it, it could shorten the lifespan of power stations.

Eskom’s chief officer for generation, Brian Dames, said: “I am very worried about the plant status and condition.”

On Eskom’s proposal to hike electricity prices by 53%, Maroga reiterated the power utility’s proposal to have what is called “primary energy costs” such as coal and diesel passed through to consumers.

He said these fell within a category of costs that Eskom could not forecast with accuracy.

The proposal, if approved by the National Energy Regulator of SA (Nersa), will ease the financial burden on the utility. Eskom said its financial performance for the year ended March would be hurt by the rising costs of coal and diesel.

Maroga said Eskom’s price proposal replaced the previous one, to which Nersa responded by granting a 14,2% increase. “We will have to live with the previous prices until we get the new prices,” he said.

Maroga said failure to get the requested 53% could jeopardize some of the utilityÂ’s projects.

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Ontario Providing Support for Industrial and Commercial Electricity Consumers During COVID-19

Ontario Global Adjustment Deferral provides COVID-19 relief to industrial and commercial electricity consumers, holding GA charges at pre-COVID levels, aligning Class A and Class B rates, and deferring non-RPP costs from April to June 2020.

 

Key Points

An emergency measure that defers a portion of GA charges to stabilize electricity bills for non-RPP Class A/B consumers.

✅ Holds GA near pre-COVID levels at $115/MWh for Class B.

✅ Applies equal percentage relief to Class A customers.

✅ Deferred costs recovered over 12 months from Jan 2021.

 

Through an emergency order passed today, the Ontario government is taking steps to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan for the period starting from April 2020, at a time when Toronto's growing electricity needs require careful planning. This initiative is intended to provide companies with temporary immediate relief on their monthly electricity bills, as utilities use AI to adapt to shifting electricity demands in April, May and June 2020. The government intends to keep this emergency order in place until May 31, 2020, and subsequent regulatory amendments would, if approved, provide for the deferral of these charges for June 2020 as well.

This relief will prevent a marked increase in Global Adjustment charges due to the low electricity demand caused by the COVID-19 outbreak. Without this emergency order, a small industrial or commercial consumer (i.e., Class B) could have seen bills increase by 15 per cent or more. This emergency order will hold GA rates in line with pre-COVID-19 levels, even as clean energy initiatives in British Columbia accelerate across the sector.

"Ontario's industrial and commercial electricity consumers are being impacted by COVID-19. They employ thousands of hardworking Ontarians, and we know this is a challenging time for them," said Greg Rickford, Minister of Energy, Northern Development and Mines. "This would provide immediate financial support for more than 50,000 companies when they need it most: as they do their part to stop the spread of COVID-19 and as they prepare to help get our economy moving again with Toronto preparing for a surge in electricity demand in the years ahead."

Quick Facts

  • The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value, alongside efforts to develop IoT security standards for electricity sector devices today. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.
  • Subject to the approval of subsequent amendments, deferred costs would be recovered over a 12-month period beginning in January 2021, amid increasing exposure to harsh weather across Canadian grids.

 

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Egypt's renewable energy to reach 6.6 GW by year-end

Egypt Renewable Energy Expansion targets solar and wind power projects to diversify the energy mix, adding 6.6 GW by 2020 and reaching 8,200 MW, with UK cooperation, grid upgrades, and investment in the electricity sector.

 

Key Points

A plan to boost solar and wind by 6.6 GW by 2020, reaching 8,200 MW and diversifying Egypt's energy mix.

✅ Adds 6.6 GW by 2020; targets 8,200 MW total capacity

✅ Focus on solar, wind, grid upgrades, and investment

✅ UK-Egypt cooperation in electricity sector projects

 

Egypt is planning to expand into renewable energy projects in a bid to increase its contribution to the energy mix, in step with global records being set in renewables, and amid Saudi Arabia’s 60 GW drive in the region, the country’s minister of electricity and renewable energy Mohamed Shaker said.

Renewable power is expected to add 6.6 gigawatts (GW) by the end of 2020, a scale comparable to Saudi wind expansion underway, with plans to reach 8,200 megawatts (MW) after the completion of the renewable energy projects currently under consideration, reflecting gains seen since IRENA’s 2016 record year for renewables, Shaker added in a statement on Tuesday, even as regional challenges persist.

This came during the minister’s video-conference meeting with the British ambassador to Egypt Geoffrey Adams to explore the potential means for cooperation between the two countries in the electricity sector, including lessons from the UK project backlog now affecting investments and from Ireland’s green-electricity goals being pursued.

 

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Electricity Prices Surge to Record as Europe Struggles to Keep Lights on

France Electricity Crisis drives record power prices as nuclear outages squeeze supply, forcing energy imports, fuel oil and coal generation, amid gas market shocks, weak wind output, and freezing weather straining the grid.

 

Key Points

A French power shortfall from nuclear outages, record prices, heavy imports, and oil-fired backup amid cold weather.

✅ EDF halted reactors; 10% capacity offline, 30% by January

✅ Imports surge; fuel oil and coal units dispatched

✅ Prices spike as gas reverses flow and wind output drops

 

Electricity prices surged to a fresh record as France scrambled to keep its lights on, sucking up supplies from the rest of Europe.

France, usually an exporter of power, is boosting electricity imports and even burning fuel oil, and has at times limited nuclear output due to high river temperatures during heatwaves. The crunch comes after Electricite de France SA said it would halt four reactors accounting for 10% of the nation’s nuclear capacity, straining power grids already facing cold weather. Six oil-fired units were turned on in France on Tuesday morning, according to a filing with Entsoe.

“It’s illustrating how severe it is when they’re actually starting to burn fuel oil and importing from all these countries,” said Fabian Ronningen, an analyst at Rystad Energy. The unexpected plant maintenance “is reflected in the market prices,” he said

Europe is facing an energy crisis, with utilities relying on coal and oil. Almost 30% of France’s nuclear capacity will be offline at the beginning of January, leaving the energy market at the mercy of the weather. To make matters worse, Germany is closing almost half of its nuclear capacity before the end of the year, as Europe loses nuclear power just when it really needs energy.

German power for delivery next year surged 10% to 278.50 euros a megawatt-hour, while the French contract for January added 9.5% to a record 700.60 euros. Prices also gained, under Europe’s marginal pricing system, as gas jumped after shipments from Russia via a key pipeline reversed direction, flowing eastward toward Poland instead.

Neighboring countries are boosting their exports to France this week to cover for lost nuclear output, with imports from Germany rising to highest level in at least four years. In the U.K., four coal power units were operating on Tuesday with as much as 1.5 gigawatts of hourly output being sent across the channel. 

The power crisis is so severe that the French government has asked EDF to restart some nuclear reactors earlier than planned amid outage risks for nuclear-powered France. Ecology Minister Barbara Pompili said last weekend that, in addition to the early reactor restarts and past river-temperature limits, the country had contracts with some companies in which they agreed to cut production during peak demand hours in exchange for payments from the government.

Higher energy prices threaten to derail Europe’s economic recovery just as the coronavirus omicron variety is spreading. Trafigura Group’s Nyrstar will pause production at its zinc smelter in France in the first week of January because of rising electricity prices. Norwegian fertilizer producer Yara International, which curbed output earlier this year, said it would continue to monitor the situation closely and curtail production where necessary.

Freezing weather this week is also sending short-term power prices surging as renewables can’t keep up, even though wind and solar overtook gas in the EU last year. German wind output plunged to a five-week low on Tuesday.

 

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Annual U.S. coal-fired electricity generation will increase for the first time since 2014

U.S. coal-fired generation 2021 rose as higher natural gas prices, stable coal costs, and a recovering power sector shifted the generation mix; capacity factors rebounded despite low coal stocks and ongoing plant retirements.

 

Key Points

Coal output rose 22% on high gas prices and higher capacity factors; a 5% decline is expected in 2022.

✅ Natural gas delivered cost averaged $4.93/MMBtu, more than double 2020

✅ Coal capacity factor rose to ~51% from 40% in 2020

✅ 2022 coal generation forecast to fall about 5%

 

We expect 22% more U.S. coal-fired generation in 2021 than in 2020, according to our latest Short-Term Energy Outlook (STEO). The U.S. electric power sector has been generating more electricity from coal-fired power plants this year as a result of significantly higher natural gas prices and relatively stable coal prices, even as non-fossil sources reached 40% of total generation. This year, 2021, will yield the first year-over-year increase in coal generation in the United States since 2014, highlighted by a January power generation jump earlier in the year.

Coal and natural gas have been the two largest sources of electricity generation in the United States. In many areas of the country, these two fuels compete to supply electricity based on their relative costs and sensitivity to policies and gas prices as well. U.S. natural gas prices have been more volatile than coal prices, so the cost of natural gas often determines the relative share of generation provided by natural gas and coal.

Because natural gas-fired power plants convert fuel to electricity more efficiently than coal-fired plants, record natural gas generation has at times underscored that advantage, and natural gas-fired generation can have an economic advantage even if natural gas prices are slightly higher than coal prices. Between 2015 and 2020, the cost of natural gas delivered to electric generators remained relatively low and stable. This year, however, natural gas prices have been much higher than in recent years. The year-to-date delivered cost of natural gas to U.S. power plants has averaged $4.93 per million British thermal units (Btu), more than double last year’s price.

The overall decline in electricity demand in 2020 and record-low natural gas prices led coal plants to significantly reduce the percentage of time that they generated power. In 2020, the utilization rate (known as the capacity factor) of U.S. coal-fired generators averaged 40%. Before 2010, coal capacity factors routinely averaged 70% or more. This year’s higher natural gas prices have increased the average coal capacity factor to about 51%, which is almost the 2018 average, a year when wind and solar reached 10% nationally.

Although rising natural gas prices have resulted in more U.S. coal-fired generation than last year, this increase in coal generation will most likely not continue as solar and wind expand in the generation mix. The electric power sector has retired about 30% of its generating capacity at coal plants since 2010, and no new coal-fired capacity has come online in the United States since 2013. In addition, coal stocks at U.S. power plants are relatively low, and production at operating coal mines has not been increasing as rapidly as the recent increase in coal demand. For 2022, we forecast that U.S. coal-fired generation will decline about 5% in response to continuing retirements of generating capacity at coal power plants and slightly lower natural gas prices.

 

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US Approves Rule to Boost Renewable Transmission

FERC Transmission Rule accelerates grid modernization and interregional high-voltage lines, enabling renewable energy integration, load balancing, and reliability to advance net-zero goals while strengthening resilience, capacity expansion, and decarbonization across U.S. regional transmission organizations.

 

Key Points

A federal policy mandating interregional grid planning and cost sharing to expand high-voltage lines for renewables.

✅ Expands interregional high-voltage transmission capacity

✅ Improves reliability, resilience, and load balancing

✅ Aligns cost allocation and long-term planning for renewables

 

On May 13th, 2024, the US took a monumental step towards its clean energy goals. The Federal Energy Regulatory Commission (FERC) approved a long-awaited rule designed to significantly expand the transmission of renewable energy across the nation's power grid, a US grid overhaul that many advocates say was overdue. This decision aligns with President Biden's ambitious plan to achieve net-zero carbon emissions by 2050, with renewable energy playing a central role.

The new rule tackles a critical bottleneck hindering the widespread adoption of renewables – transmission infrastructure. Unlike traditional power plants like coal or natural gas that run constantly, solar and wind power generation fluctuates with weather conditions. This variability poses a challenge for the existing grid, which is not designed to efficiently handle large-scale integration of these intermittent sources, helping explain why the grid isn't 100% renewable today.

The FERC rule aims to address this by promoting the construction of new, high-voltage transmission lines, particularly those connecting different regions, where grid limitations in the Pacific Northwest have highlighted the need for better interregional transfers. This improved connectivity would allow for a more strategic distribution of renewable energy. Imagine solar energy harnessed in the sun-drenched Southwest being transmitted eastward to meet peak demand during hot summer days on the Atlantic Coast.

The benefits of this expanded transmission network are multifaceted. First, it unlocks the full potential of renewable resources by allowing for their efficient utilization across the country, a trend consistent with wind and solar surpassing coal in U.S. generation. Abundant wind power in the Midwest could be utilized on the West Coast, while surplus solar energy from the South could supplement demand in the Northeast.

Second, a more robust grid with a higher capacity for renewables reduces reliance on fossil fuel-based power plants and complements other ways to meet decarbonization goals across sectors. This translates to cleaner air and a significant reduction in greenhouse gas emissions, contributing to the fight against climate change.

Third, a modernized grid with improved long-distance transmission bolsters the nation's energy security. Extreme weather events, a growing concern due to climate change, can disrupt energy production in specific regions. This interconnected grid would provide a buffer, ensuring a more reliable and resilient power supply and helping put regions on the road to 100% renewables even during adverse weather conditions.

The FERC's decision is a win for environmental groups and the renewable energy industry. They see it as a critical step towards a cleaner energy future and a significant driver of job creation in the construction and maintenance of new transmission lines. However, concerns have been raised by some stakeholders, particularly investor-owned utilities. They worry about the potential cost burden associated with building these expansive new lines, and recent reports of stalled grid spending underscore those concerns and the need for efficient cost allocation mechanisms. Striking a balance between efficiency, affordability, and environmental responsibility will be crucial for the successful implementation of this policy.

 

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B.C. Hydro adds more vehicle charging stations across southern B.C.

BC Hydro EV Charging Stations expand provincewide with DC fast chargers, 80% in 30 minutes at 35 c/kWh, easing range anxiety across Vancouver, Vancouver Island, Coquihalla Highway, East Kootenay, between Kamloops and Prince George.

 

Key Points

Public DC fast-charging network across B.C. enabling 80% charge in 30 minutes to cut EV range anxiety.

✅ 28 new stations added; 30 launched in 2016

✅ 35 c/kWh; about $3.50 per tank equivalent

✅ Coverage: Vancouver, Island, Coquihalla, East Kootenay

 

B.C. Hydro is expanding its network of electric vehicle charging stations.

The Crown utility says 28 new stations complete the second phase of its fast-charging network and are in addition to the 30 stations opened in 2016.

Thirteen of the stations are in Metro Vancouver, seven are on Vancouver Island, including one at the Pacific Rim Visitor Centre near Tofino, another is in Campbell River, and two have opened on the Coquihalla segment of B.C.'s Electric Highway at the Britton Creek rest area.

A further six stations are located throughout the East Kootenay and B.C. Hydro says the next phase of its program will connect drivers travelling between Kamloops and Prince George, while stations in Prince Rupert are also being planned.

BC Hydro has also opened a fast charging site in Lillooet, illustrating expansion into smaller communities.

Hydro spokeswoman Mora Scott says the stations can charge an electric vehicle to 80 per cent in just 30 minutes, at a cost of 35 cents per kilowatt hour.

Mora Scott says that translates to roughly $3.50 for the equivalent of a full tank of gas in the average four-cylinder car.

“The number of electric vehicles on B.C. roads is increasing, there’s currently around 9,000 across the province, and we actually expect that number to rise to 300,000 by 2030,” Scott says in a news release.

In partnership with municipalities, regional districts and several businesses, B.C. Hydro has been installing charging stations throughout the province since 2012 with support from the provincial and federal governments and programs such as EV charger rebates available to residents.

Scott says the utility wants to ensure the stations are placed where drivers need them so charging options are available provincewide.

“One big thing that we know drivers of electric vehicles worry about is the concept called range anxiety, that the stations aren’t going to be where they need them,” she says.

Several models of electric vehicle are now capable of travelling up to 500 kilometres on a single charge, says Scott.

BC Hydro president Chris O’Riley says the new charging sites will encourage electric vehicle drivers to explore B.C. this summer.

 

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