Utility Week

Utility Week 18th April

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28 | 18th - 24th April 2014 | UtilitY WEEK Markets & Trading This week Commission to make renewables compete European state aid guidelines will increasingly push developers into competition for subsidies Renewable energy developers will be increasingly pushed into competition for subsidies, under new European state aid guide- lines adopted last Wednesday. Feed-in tariffs for small-scale renewables are to be gradually replaced by feed-in premiums, which expose recipients to the market, while larger renewable schemes are subjected to competitive bidding processes. The European Commission rules also encourage support for cross-border infrastructure and allow for member states to introduce capacity mechanisms and levy exemptions for energy-intensive industries. Competition commissioner Joaquin Almunia said: "Europe should meet its ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the single market. This will contribute to making energy more affordable for European citizens and companies." A statement from the Commission said "remark- able growth" of renewable energy in recent years had "helped to make progress on environmental objectives" but caused "serious market distortions". Nina Skorupska, chief executive of the Renewable Energy Association, said it was "a big risk" to rely on the "untested theory" that competitive mechanisms would deliver results at a lower cost to the consumer. Environmental think-tank E3G said the Commission had missed opportunities to steer states towards a more resource-efficient and low-carbon economy. It lowered a cap on the level of allowed support to energy-efficiency measures, a move Manon Dufour, head of E3G's Brussels office, described as "astonishing" and "illogical". MD ElEctricitY Plan spiked to feed UK with Irish wind A plan to develop a windfarm in Ireland to supply the UK market has been scrapped. Ireland's energy minister Pat Rabbitte announced at the beginning of this week that fur- ther examination of the scheme had "failed to conclude an inter- governmental agreement". The collapse of the deal comes despite David Cameron holding talks with his Irish opposite num- ber Enda Kenny on the matter. The project would have seen more than 1,000 wind turbines constructed across the Irish mid- lands by 2020, with up to 8GW of power being exported to the UK. Despite the shelved plan, Rabbitte was optimistic that the export of Irish wind energy to the UK was "inevitable" post- 2020 due to the development of the EU internal energy market. rEnEWAblEs Germany sets caps as Poland subsidises The German government moved to curb renewable growth last week as neighbouring Poland draed a law to offer renewable generators long-term subsidies. Germany's "Energiewende", or energy transformation, has prompted a surge in renewable generation in recent years, push- ing up power costs and render- ing conventional power stations unprofitable. Under a dra law approved by chancellor Angela Merkel's cabinet, onshore wind and solar PV installations will each be capped at 2.5GW a year and offshore wind at 6.5GW to 2020. Subsidies will be scaled back and green generators made to compete in the market from 2017. The legislation still antici- pates a substantial role for renewables, with a plan to gen- erate 40-45 per cent of electricity from green sources by 2025 and 55-60 per cent by 2035. Meanwhile, Poland's govern- ment set out dra plans to offer renewable developers the chance to sell their energy at auctions for a 15-year fixed price. Poland has a target to get 15 per cent of its energy from renewable sources by 2020, but has historically shown reluc- tance to move away from coal generation, which provides 90 per cent of its electricity. ElEctricitY SSE to fire up Great Island CCGT in May The first fire at SSE's €331 mil- lion combined-cycle gas turbine (CCGT) power plant at Great Island is expected next month. The landmark event at the 461MW CCGT in County Wexford, Ireland, will test the power sta- tion's drive train for the first time, with both turbines and the elec- tricity generating unit being run. The Great Island CCGT power plant is expected to become operational in late 2014. Commission: flying the flag for taxpayers PLUS AN INTERACTIVE FULL-DAY POST-CONFERENCE WORKSHOP Wednesday 25th June, 2014, Holiday Inn Regent's Park, London, UK UK Smart Meter Roll Out Workshop Leader: Vic Tuffen, Technical Director, Tuffentech Services Ltd Register online using voucher code SMI3Y5R at checkout to save £300 www.smi-online.co.uk/meter.asp Alternatively, to claim contact Mohammed Malik Tel: +44 (0) 20 7827 6166 Email: mmalik@smi-online.co.uk SMi present... 23 - 24 JUNE 2014 Meter Asset Management and Operations Holiday Inn Regent's Park, London

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