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INDUSTRY REVIEWNON-RENEWABLE POWER GENERATION


Work is now well under way on the USD26 billion Hinkley Point C installation in southwest


England, which is being built by French energy group EDF.


“The Philippines needs to increase its


power generation capacity to cope with population and economic growth, and most of that capacity will continue to come from coal-fired power plants,” he stated. “Coal is a cheap source of power and is


seen as necessary to ensure national development. While renewable energy is included in the future energy mix for the country, the current government is not keen to give up coal in the near future.” In some developing countries, the picture


regarding which types of new power plant will be developed, where and when, is further complicated by the fact that the financing may come from foreign investors with their own particular criteria to meet.


Source investors One example was provided by Graham Witton, managing director of global air cargo carrier Antonov Airlines: “Some years ago we achieved a world-record flight for the heaviest single item ever flown, transporting a 187.6-tonne generator from Germany into Armenia on our 250-tonne capacity AN-225 for a combined-cycle power plant being built in Yerevan. “We were involved in that project from


day one so gained good knowledge of the background to it. We learnt that although the EPC contractor was in South Korea, the actual finance for the project came from Japanese investors. “They had been actively looking for


power generation projects in stable countries www.heavyliftpfi.com


where they could invest in the construction of a plant and get a stable return over 25, 30, 40 years. They saw Armenia as a relatively stable country which needed power, so that is where they decided to invest.” Javier Martinez, executive director for


UK-headquartered ALE, outlined the key factor driving continuing global demand for more electricity: “It is estimated there are now over 7 billion people in the world and that number is growing at an average of around 2 percent a year. That represents 140million more people who, in total, will create a demand for well over 100,000 MW of additional power annually.”


The Philippines needs to increase its power generation capacity to cope with population and economic growth, and most of that capacity will continue to come from coal-fired power plants.


– Elmer Sarmiento, Royal Cargo


Future calculations It is still not clear, however, how much of that extra power will be generated by non-renewable energy versus renewables. “Probably, though, a minimum of 20-30 percent of the new capacity will be generated by wind and other renewables; 20-30 percent, or 20,000-30,000 MW, will be gas; and 20-30 percent will involve other resources including coal, nuclear and hydro. Those percentages may change, depending on political influences, but there is definitely going to be a role for non-renewable energies for the foreseeable future,” he said. That last point is apparent in China, for


example, where the picture relating to the selection of fuelling options for new electricity generation capacity is very mixed. “The Chinese government and people


are generally in favour of clean energy such as wind, solar and nuclear, if nuclear can be considered ‘clean’, but for cost reasons other non-renewable fuels, including coal, will also continue to be used to generate electricity for some time to come,” said Leo Ge, managing director of


May/June 2019 41


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