Page 9 - AsiaElec Week 07

AsiaElec
NEWS IN BRIEF
AsiaElec
G R I D
Grid Solutions upgrades
300MW HVDC link in South
Korea
Grid Solutions, a part of GE Renewable Energy business, has completed an upgrade of a 300MW high-voltage direct current (HVDC) link between the South Korean mainland and Jeju Island.
The company upgraded the HVDC link to facilitate efficient bi-directional power transfer, including renewable energy.
Considered to be South Korea’s first HVDC upgrade ever, the project is the first commercial application of Grid Solution’s advanced Line Commutated Converter (LCC) valve technology, H450. The project also involved a control system and cooling system upgrade.
The upgraded control system enables the refurbished 300MW link and the second 400MW link to use GE’s latest algorithms to maintain grid frequency and improve operational control.
HVDC refurbishment was completed to meet the Korea Electric Power Corporation’s (KEPCO’s) 24-month deadline.
The valve technology was developed by Grid Integration Solutions, a division of GE’s Grid Solutions, at the HVDC Center of Excellence in Stafford, UK.
KEPCO Power Grid senior executive vice-president and member of the board
of directors Kim Sung-Arm said: “The reinforcement of the grid to accompany the renewable energy generation objective of the Korean government is critical.
PERFORMANCE
AGL Energy sees profits fall
AGL Energy has delivered first half results that was ahead of most expectations, despite underlying profit falling 20%. An outage at Loy Yang A unit 2 did not have the impact that was feared and costs are expected to be recouped in FY21 from insurance.
The company’s Macquarie Generation (MacGen) coal supply chain provided better access to cheaper contracts, which should
lift FY20 earnings. MacGen also offset the prolonged outage of Loy Yang A unit 2. Renewable generation was also higher which allowed AGL Energy to use less gas. FY20 earnings (EBIT) guidance has been reiterated at $780-860m, with a bias to the top end.
The company has acknowledged falling wholesale electricity prices and the re-pricing
of legacy gas contracts will create headwinds. Renewables and cheap gas are putting downward pressure on electricity futures which in turn will put downward pressure on consumer electricity prices.
Wholesale electricity prices were ahead
of Macquarie’s estimates in the first half, reflecting additional generation at MacGen, a reduced need for gas and better spot prices. Yet, while these gains mitigate the impact of the outage at Loy Yang A unit 2 they do not prevent the impact of falling prices on overall profitability, the broker asserts.
D E M A N D
China power demand drops
as coronavirus shutters
plants
China’s industrial power demand in 2020 may decline by as much as 73bn kWh according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.
The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer, the loss is equal to the power
used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.
The reduction is the energy equivalent of about 30mn tonnes of thermal coal or about 9mn tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of
imports, based on customs data.
China has tried to curtail the spread of the
coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home.
Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total.
Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in
a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially.
“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full- year picture in 2020.
GAS-FIRED GENERATION
AG&P, ADNOC Logistics and Services sign agreement for the long-term charter of FSU at the new Indian AG&P LNG import facility
Atlantic Gulf & Pacific (AG&P), the global downstream gas and LNG logistics company, and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement for the conversion, supply, operations and
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