Page 14 - AsiaElec Week 18

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NEWS IN BRIEF
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demand loss,” says Buckley.
“Renewables get priority over coal when
power demand drops given their “must run” status, which is a reflection of their zero marginal cost of production. Coal-fired generation, the high marginal cost producer, is losing out,” he added.
IEEFA
COAL-FIRED GENERATION
China fires up coal power plant construction
China approved nearly 10 gigawatts of new coal-fired power generation projects in the first quarter, roughly equal to the amount approved for all of last year, amid a broader scramble to jump-start an economy hobbled by the COVID-19 epidemic.
Investment in infrastructure like power generation has played an important part in China’s rapid economic rise, especially in times of economic distress like the global financial crisis of 2008 and 2009. Many expect such spending to play an important role as Beijing tries to restart the economy in the aftermath of the coronavirus outbreak that has brought activity to a crawl, causing the economy to post its first quarterly contraction since modern record-keeping began.
Coal has always been a controversial
part of the nation’s power mix. On the one hand, China has plentiful supply of the resource, which it has harnessed to rapidly build up power infrastructure to feed the country’s growing economy. But such energy is notoriously dirty, and overly aggressive building led to oversupply earlier this decade that sent many producers into the red.
Those factors led the government to
scale back and even halt many new coal- powered projects in recent years. But that trend went into reverse in the first quarter, when six major new coal-fired projects were approved that could add 9. 96 GW of capacity, according to calculations by Caixin.
That was roughly equal to the amount of similar new power projects approved for all of last year. Of the new projects, four were in the coal-rich area of Shaanxi province, one was in South China’s Guangdong Province and one was in Inner Mongolia.
The climate for approving such projects appears to have eased during the quarter, a senior electricity analyst told Caixin, speaking on condition of anonymity. But he added it was unclear if more such large-scale projects would be approved over the rest of the year, and also pointed out that around 10 GW of older coal-fired capacity had typically been
retired annually in recent years. As such, he said it would be important to monitor the pace of new project approvals for the rest of the year.
HYDRO
Japanese investor buys
31% stake in Georgian
hydropower plant
economic distress.
The opening ceremony for Dariali HPP
was held on April 8, 2017.
The total cost of the project was $123mn.
Dariali Energy JSC in 2014 was awarded an $80mn loan from the European Bank for Reconstruction and Development (EBRD) for the financing of the development, construction and operation of Dariali HPP.
TEPCO is Japan’s largest energy producer. It owns hydroelectric power plants, thermal power plants and nuclear power plants in Japan.
SOLAR
Bangladesh solar
manufacturers ask for
government support
Solar manufacturers in Bangladesh have asked for government support after being crippled by a 40-day Covid-19 industrial shutdown.
Module makers have demanded BDT5bn ($58. 9mn) worth of grants; interest-free, long-term loans; and tax incentives over the next five years to help them weather the crisis.
Industry representatives have also called for a programme to drive solar rooftop installation on public buildings to be fast-tracked to generate work for
Japanese energy group TEPCO’s renewable power division has acquired a 31. 4% stake in the 108MW Dariali hydropower plant (Dariali HPP) in Kazbegi, Georgia, from the state- owned operator of the facility Dariali Energy JSC, Business Media has reported, citing an investor’s press release.
Dariali HPP generates power that accounts for 4% of Georgia’s electricity consumption. Its annual output stands at 510mn kWh.
The press release outlined how the power station has a guaranteed purchase agreement with ESCO, the commercial operator of Georgia’s electricity system. Its duration is set at 15 years.
Natia Turnava, Minister of Economy
and Sustainable Development, commented
on TEPCO entering the Georgian market.
She said its market arrival was particularly important since it was taking place at a time of
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Week 18 05•May•2020