GDF Suez preferred bidder for Saudi plant

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GDF Suez SA has been appointed the preferred bidder for the greenfield 1,730-megawatt (MW) gas-fired independent power project known as Riyadh PP 11, located approximately 125 kilometers west of Riyadh, Saudi Arabia.

In conjunction with Saudi Electricity Company (SEC), GDF Suez plans to raise about $1.8 billion through export-credit facilities and syndicated bank loans for the $2 billion power plant. A private bank syndicate, understood to involve Banque Saudi Fransi, Alinma Bank and Credit Agricole SA, is set to arrange 20-year financing for the project over the coming months.

Bidding for the plant was initiated in July 2009, when the project was estimated to cost $3.2 billion. This was reduced to $2 billion in October. Bidding for the plant closed in December, with GDF Suez bidding as part of a consortium with Saudi firm Al Jomaih Holding Company. General Electric Company was to supply gas turbines, and Hyundai Heavy Industries Company Limited was the consortium's main contractor.

The consortium was named as the preferred bidder earlier this month, against competition from other bidders, including Korean Electric Power Corporation (KEPCO), Marubeni Corporation and Mitsubishi Corporation. As the winning bidder, the GDF Suez consortium will own 50% of a company that will build, own and operate the power plant, while the remaining 50% will be owned by SEC.

The combined-cycle gas turbine (CCGT) power plant is scheduled to be developed in two phases, with the first phase scheduled to be completed by 2013. The CCGT plant will use recovered heat from the gas-fired turbines to provide extra steam to drive steam turbines to produce additional electricity. In addition to using gas as the main fuel for the plant, it will also be capable of using Arab super-light crude oil as a backup fuel supply.

SEC will purchase electricity produced from the power plant under a 20-year power purchase agreement (PPA). The power plant is a part of Saudi Arabia's $20 billion plan to increase electricity generating capacity by at least 10,000 MW in the next three years. The country plans for at least six independent power plants to be established within this timeframe.

With many infrastructure projects under way in Saudi Arabia, demand for electricity is growing substantially in the country. Power consumption in 2006 was 30,000 MW, but many experts believe that Saudi Arabia will require up to 70,000 MW of generating capacity to meet demand by 2024.

SEC has a current installed generating capacity of about 40,000 MW and plans to invest up to $80 billion by 2018 to increase generating capacity by a further 20,000 MW. Last year, SEC signed a contract for the construction of a fuel oil-powered plant at Rabigh with a consortium led by KEPCO. As with the Riyadh project, the consortium will be required to supply SEC with electricity from the plant over the next 20 years under a PPA.

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Altmaier's new electricity forecast: the main driver is e-mobility

Germany 2030 Electricity Demand Forecast projects 658 TWh, driven by e-mobility, heat pumps, and green hydrogen. BMWi and BDEW see higher renewables, onshore wind, photovoltaics, and faster grid expansion to meet climate targets.

 

Key Points

A BMWi outlook to 658 TWh by 2030, led by e-mobility, plus demand from heat pumps, green hydrogen, and industry.

✅ Transport adds ~70 TWh; cars take 44 TWh by 2030

✅ Heat pumps add 35 TWh; green hydrogen needs ~20 TWh

✅ BDEW urges 70% renewables and faster grid expansion

 

Gross electricity consumption in Germany will increase from 595 terawatt hours (TWh) in 2018 to 658 TWh in 2030. That is an increase of eleven percent. This emerges from the detailed analysis of the development of electricity demand that the Federal Ministry of Economics (BMWi) published on Tuesday. The main driver of the increase is therefore the transport sector. According to the paper, increased electric mobility in particular contributes 68 TWh to the increase, in line with rising EV power demand trends across markets. Around 44 TWh of this should be for cars, 7 TWh for light commercial vehicles and 17 TWh for heavy trucks. If the electricity consumption for buses and two-wheelers is added, this results in electricity consumption for e-mobility of around 70 TWh.

The number of purely battery-powered vehicles is increasing according to the investigation by the BMWi to 16 million by 2030, reflecting the global electric car market momentum, plus 2.2 million plug-in hybrids. In 2018 there were only around 100,000 electric cars, the associated electricity consumption was an estimated 0.3 TWh, and plug-in mileage in 2021 highlighted the rapid uptake elsewhere. For heat pumps, the researchers predict an increase in demand by 35 TWh to around 42 TWh. They estimate the electricity consumption for the production of around 12.5 TWh of green hydrogen in 2030 to be just under 20 TWh. The demand at battery factories and data centers will increase by 13 TWh compared to 2018 by this point in time. In the data centers, there is no higher consumption due to more efficient hardware despite advancing digitization.

The updated figures are based on ongoing scenario calculations by Prognos, in which the market researchers took into account the goals of the Climate Protection Act for 2030 and the wider European electrification push for decarbonization. In the preliminary estimate presented by Federal Economics Minister Peter Altmaier (CDU) in July, a range of 645 to 665 TWh was determined for gross electricity consumption in 2030. Previously, Altmaier officially said that electricity demand in this country would remain constant for the next ten years. In June, Chancellor Angela Merkel (CDU) called for an expanded forecast that would have to include trends in e-mobility adoption within a decade and the Internet of Things, for example.

Higher electricity demand
The Federal Association of Energy and Water Management (BDEW) is assuming an even higher electricity demand of around 700 TWh in nine years. In any case, a higher share of renewable energies in electricity generation of 70 percent by 2030 is necessary in order to be able to achieve the climate targets and to address electricity price volatility risks. The expansion paths urgently need to be increased and obstacles removed. This could mean around 100 gigawatts (GW) for onshore wind turbines, 11 GW for biomass and at least 150 GW for photovoltaics by 2030. Faster network expansion and renovation will also become even more urgent, as electric cars challenge grids in many regions.
 

 

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Energy Vault Lands $110M From SoftBank’s Vision Fund for Gravity Storage

Energy Vault Gravity Storage uses crane-stacked concrete blocks to deliver long-duration, grid-scale renewable energy; a SoftBank Vision Fund-backed, pumped-hydro analog enabling baseload power and a lithium-ion alternative with proprietary control algorithms.

 

Key Points

Gravity-based cranes stack blocks to store and dispatch power for hours, enabling grid-scale, low-cost storage.

✅ 4 MW/35 MWh modules; ~9-hour duration

✅ Estimated $200-$250/kWh; lower LCOE than lithium-ion

✅ Backed by SoftBank Vision Fund; Cemex and Tata support

 

Energy Vault, the Swiss-U.S. startup that says it can store and discharge electrical energy through a super-sized concrete-and-steel version of a child’s erector set, has landed a $110 million investment from Japan’s SoftBank Vision Fund to take its technology to commercial scale.

Energy Vault, a spinout of Pasadena-based incubator Idealab and co-founded by Idealab CEO and billionaire investor Bill Gross, unstealthed in November with its novel approach to using gravity to store energy.

Simply put, Energy Vault plans to build storage plants — dubbed “Evies” — consisting of a 35-story crane with six arms, surrounded by a tower consisting of thousands of concrete bricks, each weighing about 35 tons.

This plant will “store” energy by using electricity to run the cranes that lift bricks from the ground and stack them atop of the tower, and “discharge” energy by reversing that process. It’s a mechanical twist on the world’s most common energy storage technology, pumped hydro, which “stores” energy by pumping water uphill, and lets it fall to spin turbines when electricity is needed, even as California funds 100-hour long-duration storage pilots to expand flexibility worldwide.

But behind this simplicity lies some heavy-duty software to orchestrate the cranes and blocks, with a "unique stack of proprietary algorithms" to balance energy supply and demand, volatility, grid stability, weather elements and other variables.

CEO and co-founder Robert Piconi said in a November interview with GTM that the standard array would deliver 4 megawatts/35 megawatt-hours of storage, which translates to nearly 9 hours of duration — the equivalent of building the tower to its height, and then reducing it to ground level. It can be built on-site in partnership with crane manufacturers and recycled concrete material, and can run fully automated for decades with little deterioration, he said.

And the cost, which Piconi pegged in the $200 to $250 per kilowatt-hour range, with room to decline further, is roughly 50 percent below the upfront price of the conventional storage market today, and 80 percent below it on levelized cost, he said, a trend utilities see benefits in as they plan resources.

The result, according to Wednesday’s statement, is a technology that could allow “renewables to deliver baseload power for less than the cost of fossil fuels 24 hours a day,” in applications such as community microgrids serving low-income housing.

Wednesday’s announcement builds on a recent investment from Mexico's Cemex Ventures, the corporate venture capital unit of building materials giant Cemex, along with a promise of deployment support from Cemex's strategic network, and also follows project financing for a California green hydrogen microgrid led by the company. Piconi said in November that the company had sufficient investment from two funding rounds to carry it through initial customer deployments, though he declined to disclose figures.

This is the first energy storage investment for Vision Fund, the $100 billion venture fund set up by SoftBank founder Masayoshi Son. While large by startup standards, it’s in keeping with the capital costs that Energy Vault will face in scaling up its technology to meet its commitments, amid mounting demand in regions like Ontario energy storage that face supply crunches. Those include a 35 megawatt-hour order with Tata Power Company, the energy-producing arm of the Indian industrial conglomerate, first unveiled in November, as well as plans to demonstrate its first storage tower in northern Italy in 2019.

For Vision Fund, it’s also an unusual choice for a storage investment, given that the vast majority of venture capital in the industry today is being directed toward lithium-ion batteries, and even Mercedes-Benz energy storage ventures targeting the U.S. market. Lithium-ion batteries are limited in terms of how many hours they can provide cost-effectively, with about 4 hours being seen as the limit today.

The search for long-duration energy storage has driven investment into flow battery technologies such as grid-scale vanadium systems deployed on utility networks, compressed-air energy storage and variations on gravity-based storage, including a previous startup backed by Gross and Idealab, Energy Cache, whose idea of using a ski lift carrying buckets of gravel up a hill to store energy petered out with a 50-kilowatt pilot project.

 

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Website Providing Electricity Purchase Options Offered Fewer Choices For Spanish-speakers

Texas PUC Spanish Power to Choose mandates bilingual parity in deregulated electricity markets, ensuring equal access to plans, transparent pricing, consumer protection, and provider listings for Spanish speakers, mirroring the English site offerings statewide.

 

Key Points

PUC mandate requiring identical Spanish and English plan listings for fair access in the deregulated power market.

✅ Orders parity across English and Spanish plan listings

✅ Increases transparency in a deregulated electricity market

✅ Deadline set for providers to post on both sites

 

The state’s Public Utility Commission has ordered that the Spanish-language version of the Power to Choose website provide the same options available on the English version of the site, a move that comes as shopping for electricity is getting cheaper statewide.

Texas is one of a handful of states with a deregulated electricity market, with ongoing market reforms under consideration to avoid blackouts. The idea is to give consumers the option to pick power plans that they think best fit their needs. Customers can find available plans on the state’s Power To Choose website, or its Spanish-language counterpart, Poder de Escoger. In theory, those two sites should have the exact same offerings, so no one is disadvantaged. But the Texas Public Utility Commission found that wasn’t the case.

Houston Chronicle business reporter Lynn Sixel has been covering this story. She says the Power to Choose website is important for consumers facing the difficult task of choosing an electric provider in a deregulated state, where electricity complaints have recently reached a three-year high for Texans.

“There are about 57 providers listed on the [English] Power to Choose website, and news about retailers like Griddy underscores how varied the offerings can be across providers. [Last week] there were only 23 plans on the Spanish Power to Choose site,” Sixel says. “If you speak Spanish and you’re looking for a low-cost plan, as of last week, it would have been difficult to find some of the really great offers.”

Mustafa Tameez, managing director of Outreach Strategists, a Houston firm that consults with companies and nonprofits on diversity, described this issue as a type of redlining.

“He’s referring to a practice that banks would use to circle areas on maps in which the bank decided they did not want to lend money or would charge higher rates,” Sixel says. “Typically it was poor minority neighborhoods. Those folks would not get the same great deals that their Anglo neighbors would get.”

DeAnn Walker, chairman of the Public Utility Commission, said she was not at all happy about the plans listings in a meeting Friday, against a backdrop where Texas utilities have recently backed out of a plan to create smart home electricity networks.

“She gave a deadline of 8 a.m. Monday morning for any providers who wanted to put their plans on the Power to Choose website, must put them on both the Spanish language and the English language versions,” Sixel says. “All the folks that I talked to really had no idea that there were different plans on both sites and I think that there was sort of an assumption.”

 

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Wasteful air conditioning adds $200 to summer energy bills, reveals BC Hydro

BC Hydro Air Conditioning Efficiency Tips help cut energy bills as HVAC use rises. Avoid inefficient portable AC units, set thermostats near 25 C, use fans and window shading, and turn systems off when unoccupied.

 

Key Points

BC Hydro's guidelines to lower summer power bills by optimizing A/C settings, fans, shading, and usage habits at home.

✅ Set thermostats to 25 C; switch off A/C when away

✅ Prefer fans and window shading; close doors/windows in heat

✅ Avoid multiple portable A/C units; choose efficient HVAC

 

BC Hydro is scolding British Columbians for their ineffective, wasteful and costly use of home air conditioners.

In what the electric utility calls “not-so-savvy” behaviour, it says many people are over-spending on air conditioning units that are poorly installed or used incorrectly.

"The majority of British Columbians will spend more time at home this summer because of the COVID-19 pandemic," BC Hydro says in a news release about an August survey of customers.

"With A/C use on the rise, there is evidence British Columbians are not cooling down efficiently, leading to higher summer electricity bills, as extreme heat boosts U.S. bills too this summer."

BC Hydro estimates some customers are shelling out $200 more on their summer energy bills than they need to during a record-breaking 2021 demand year for electricity.

The pandemic is compounding the demand for cool, comfortable air at home. Roughly two in five British Columbians between the ages of 25 and 50 are working from home five days a week.

However, it’s not just COVID-19 that is putting a strain on energy consumption and monthly bills, with drought affecting generation as well today.

About 90 per cent of people who use an air conditioner set it to a temperature below the recommended 25 Celsius, according to BC Hydro.

In fact, one in three people have set their A/C to the determinedly unseasonable temperature of 19 C.

Another 30 per cent are using more than one portable air conditioning unit, which the utility says is considered the most inefficient model on the market, and questions remain about crypto mining electricity use in B.C. today.

The use of air conditioners is steadily increasing in B.C. and has more than tripled since 2001, according to BC Hydro, with all-time high demand also reported in B.C. during recent heat waves. The demand for climate control is particularly high among condo-dwellers since apartments tend to trap heat and stay warmer.

This may explain why one in 10 residents of the Lower Mainland has three portable air conditioning units, and elsewhere Calgary's frigid February surge according to Enmax.

In addition, 30 per cent of people keep the air conditioning on for the sake of their pets while no one is home.

BC Hydro makes these recommendations to save energy and money on monthly bills while still keeping homes cooled during summer’s hottest days, and it also offers a winter payment plan to help manage costs:

Cool homes to 25 C in summer months when home; air conditioning should be turned off when homes are unoccupied.
In place of air conditioning, running a fan for nine hours a day over the summer costs $7.
Shading windows with drapes and blinds can help insulate a home by keeping out 65 per cent of the heat.
If the temperature outside a home is warmer than inside, keep doors and windows closed to keep cooler air inside.
Use a microwave, crockpot or toaster oven to avoid the extra heat produced by larger appliances, such as an oven, when cooking. Hang clothes to dry instead of using a dryer on hot days.

 

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SC nuclear plant on the mend after a leak shut down production for weeks

V.C. Summer nuclear plant leak update: Dominion Energy repaired a valve in the reactor cooling system; radioactive water stayed within containment, NRC oversight continues as power output ramps toward full operation.

 

Key Points

A minor valve leak in the reactor cooling system contained onsite; Dominion repaired it as the plant resumes power.

✅ Valve leak in piping to steam generators, not environmental release.

✅ Radioactive water remained in containment, monitored per NRC rules.

✅ Plant ramping from 17% power; full operations may take days.

 

The V.C. Summer nuclear power plant, which has been shut down since early November because of a pipe leak, is expected to begin producing energy in a few days, a milestone comparable to a new U.S. reactor startup reported recently.

Dominion Energy says it has fixed the small leak in a pipe valve that allowed radioactive water to drip out. The company declined to say when the plant would be fully operational, but spokesman Ken Holt said that can take several days, amid broader discussions about the stakes of early nuclear closures across the industry.

The plant was at 17 percent power Wednesday, he said, as several global nuclear project milestones continue to be reported this year.

Holt, who said Dominion is still investigating the cause, said water that leaked was part of the reactor cooling system. While the water came in contact with nuclear fuel in the reactor, the water never escaped the plant's containment building and into the environment, Holt said.

He characterized the valve leak as '"uncommon" but not unexpected. The nuclear leak occurred in piping that links the nuclear reactor with the power plant's steam generators. Hundreds of pipes are in that part of the nuclear plant, a complexity often cited in the energy debate over struggling nuclear plants nationwide.

"There is always some level of leakage when you are operating, but it is contained and monitored, and when it rises to a certain level, you may take action to stop it," Holt said.

A nuclear safety watchdog has criticized Dominion for not issuing a public notice about the leak, but both the company and the U.S. Nuclear Regulatory Commission say the amount was so small it did not require notice.

The V.C. Summer Nuclear plant is about 25 miles northwest of Columbia in Fairfield County. It was licensed in the early 1980s. At one point, Dominion's predecessor, SCE&G, partnered with state owned Santee Cooper to build two more reactors there, even as new reactors in Georgia were taking shape. But the companies walked away from the project in 2017, citing high costs and troubles with its chief contractor, Westinghouse, even as closures such as Three Mile Island's shutdown continued to influence policy.

 

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Elon Musk could help rebuild Puerto Rico with solar-powered electricity grid

Puerto Rico Tesla Solar Power enables resilient microgrids using batteries, renewable energy, and energy storage to rebuild the hurricane-damaged grid, reduce fossil fuels, cut costs, and accelerate recovery with scalable solar-plus-storage solutions.

 

Key Points

A solar-plus-storage plan using Tesla microgrids and batteries to restore Puerto Rico's cleaner, resilient power.

✅ Microgrids cut diesel reliance and harden critical facilities.

✅ Batteries stabilize the grid and shave peak demand costs.

✅ Scalable solar enables faster, modular disaster recovery.

 

Puerto Rico’s governor Ricardo Rossello has said that he will speak to Elon Musk after the Tesla inventor said his innovative solar and battery systems could be used to restore electricity on the island.

Mr Musk was mentioned in a tweet, referencing an article discussing ways to restore Puerto Rico’s power grid, which was knocked out by Hurricane Maria on September 20.

Restoring the ageing and already-weakened network has proved slow: as of Friday 90 per cent of the island remained without power. The island’s electricity company was declared bankrupt in July.

Mr Musk was asked: “Could @ElonMusk go in and rebuild #PuertoRico’s electricity system with independent solar & battery systems?”

The South African entrepreneur replied: “The Tesla team has done this for many smaller islands around the world, but there is no scalability limit, so it can be done for Puerto Rico too.

“Such a decision would be in the hands of the PR govt, PUC, any commercial stakeholders and, most importantly, the people of PR.”

His suggestion was seized upon by Mr Rossello, who then tweeted: “@ElonMusk Let's talk. Do you want to show the world the power and scalability of your #TeslaTechnologies?

“PR could be that flagship project.”

Mr Musk replied that he was happy to talk.

Restoring power to the battered island is a priority for the government, and improving grid resilience remains critical, with hospitals still running on generators and the 3.5 million people struggling with a lack of refrigeration or air conditioning.

Radios broadcast messages advising people how to keep their insulin cool, and doctors are concerned about people not being able to access dialysis.

And, with its power grid wiped out, the Caribbean island could totally rethink the way it meets its energy needs, drawing on examples like a resilient school microgrid built locally. 

“This is an opportunity to completely transform the way electricity is generated in Puerto Rico and the federal government should support this,” said Judith Enck, the former administrator for the region with the environmental protection agency.

“They need a clean energy renewables plan and not spending hurricane money propping up the old fossil fuel infrastructure.”

Forty-seven per cent of Puerto Rico’s power needs were met by burning oil last year - a very expensive and outdated method of electricity generation. For the US as a whole, petroleum accounted for just 0.3 per cent of all electricity generated in 2016 even as the grid isn’t yet running on 100% renewable energy nationwide.

The majority of the rest of Puerto Rico’s energy came courtesy of coal and natural gas, with renewables, which later faced pandemic-related setbacks, accounting for only two per cent of electricity generation.

“In that time of extreme petroleum prices, the utility was borrowing money and buying oil in order to keep those plants operating,” said Luis Martinez, a lawyer at natural resources defense council and former special aide to the president of Puerto Rico’s environmental quality board.

“That precipitated the bankruptcy that followed. It was in pretty poor shape before the storm. Once the storm got there, it finished the job.”

But Mr Martinez told the website Earther that it might be difficult to secure the financing for rebuilding Puerto Rico with renewables from FEMA (Federal Emergency Management Agency) funds.

“A lot of distribution lines were on wood poles,” he said.

“Concrete would make them more resistant to winds, but that would potentially not be authorized under the use of FEMA funds.

"We’re looking into if some of those requirements can be waived so rebuilding can be more resilient.”

 

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