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Power | Mott MacDonald


manipulation of the carbon price, or other means of reducing carbon, will be an important and unpredictable issue for the power sector. The greatest innovation is


happening in generation. Having been raised on thermal generation, the developed world is now struggling to wean itself onto new technologies. Converting to 100 per cent renewables would mean not only funding and constructing the new generation infrastructure required and connecting it to the grid, but decommissioning existing thermal plants. A major dose of political willpower is required to overturn the status quo, and many countries may have to turn to fossil fuel-fired plants fitted with carbon capture and storage technology as an intermediate stepping-stone on the journey toward renewables. Non-conventional hydrocarbons such as shale gas are currently receiving particular interest as a transitional solution, but this must not eclipse focus on the ultimate renewables objective. Today, Europe and North America remain highly dependent on thermal power sources despite some movement toward renewables. However, emerging economies such as China, South Africa, India, Indonesia and Brazil have the furthest to go. The Middle East is also dominated by thermal power.


Korat 1 solar farm, Thailand


Meanwhile, there is overwhelming


evidence that the planet’s climate is already changing, with extreme weather events set to become more commonplace. Power infrastructure needs to become more resilient to these threats, while emitting many fewer emissions to help stop the planet’s movement toward an even more volatile climate. And with countries increasingly considering and implementing carbon pricing, failing to reduce emissions could have financial implications for power infrastructure operators – and their customers. The simple energy economics of the past, where financial issues dominated, have been replaced by a more complex political - economic paradigm where plant economics are no longer the only driving force. Political


global-opportunity.co.uk PREM MAHI


l Dr Prem Mahi is Mott MacDonald practice manager for power. Encompassing projects on five continents, his work to coordinate Mott MacDonald’s power-related activities includes power sector risk management, strategy development, business development, resource management and practice leadership.


Alongside a deep understanding


of current power markets and future ideas, Prem has extensive experience in environmental engineering, environmental management systems and the formulation of energy and environmental management policies for power generation and transmission projects. Prem sits on the British Expertise


Board of Directors and is a Fellow of the Institution of Mining and Metallurgy.


France and the USA are the world leaders in nuclear. According to the International Atomic Energy Agency, the USA had the world’s greatest nuclear generating capacity in 2012 at more than 100GW, while France produced the highest percentage of its electricity from nuclear (75 per cent). Japan, Russia and South Korea also have impressive generating capacity, and the World Nuclear Association reports that 70 new reactors are currently under construction worldwide – 28 of them in China. Russia is constructing 10, India six, South Korea and the USA five each. Hundreds more reactors are planned or proposed worldwide. However, the safety fears provoked by the 2011 Fukushima disaster have already shown signs of curbing nuclear appetites. In the incident’s aftermath, Germany decided to decommission all its nuclear plants by 2022, and Italy banned all future construction of reactors. Hydropower is an attractive


prospect, being a renewable power source that is relatively very reliable. But specific natural resource conditions are required for hydropower to be viable. As well as providing suitable hydraulic head and flow rates, the conditions must be such that any environmental or social risks – such as loss of land, displacement of people, methane emissions and ecosystem disturbance – can be mitigated.


Renewable Energy China is the world’s largest


hydropower market with over 200GW of installed capacity, according to the International Hydropower Association. Hydropower is also well developed in countries such as Canada, India, Pakistan, Norway and western Russia – although the majority of Siberia and eastern Russia’s hydro potential is untapped. Further massive hydroelectric potential can be found throughout South America and Africa, and in many south Asian countries. Barrage and tidal generation in particular offer huge opportunity, with a single scheme capable of providing generation capacity up to 20GW. Wind and solar generation are


different in that potential exists everywhere – although wind


ISSUE 01 | GLOBAL OPPORTUNITY 2014 163


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