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Germany likely to miss its 2030 zero-C target
Germany Emissions abatement Online energy news agency Clean Energy Wire has reported the findings of consulting firm McKinsey concerning Germany’s energy transition. According to McKinsey the build-out of Germany’s renewable power capacity is a ‘herculean task’ that will likely take longer than planned, and therefore make an early end to gas and coal-fired power production very difficult to achieve. This is the conclusion the consultant has come to in its 2022 Energy Transition Index for the country. “Germany will continue to depend on natural gas,” the consultancy said, adding that coal-fired power production will also continue to play a key role beyond 2030, the year by which Germany’s government said it “ideally” wants to exit the fossil fuel. Russia’s war on Ukraine had “dramatically altered” the situation for renewables in the country, the company said, and the Europe-wide decision to scrap Russian gas imports would have an impact on the power sector as well, where flexible gas-fired plants are currently used to cushion short-term grid fluctuations due to intermittent renewable power production. While the share of renewables jumped from
41 to 49 % of power demand in the country in the first half of this year, the energy transition would face “the greatest test in its history,” according to the consultancy. As gas continues to play a role in all scenarios, the focus should be put on diversifying supply and substituting natural gas with green hydrogen, McKinsey partner Thomas Vahlenkamp said. In order to make progress on the ambitious target of sourcing 80 % of electricity consumption from renewables by 2030, the entire production and supply chain would have to be strengthened by investing in production capacity and staff, as well as by easing regulation on infrastructure construction. The country would have to install 18 GW of solar panels and commission 1800 new onshore wind power turbines per year, while offshore wind would have to quadruple.
While the continued use of natural gas has long been considered a bridge technology for Germany on its path to an energy system fully based on renewables, the supply crisis has fanned calls for a faster transition away from the fossil fuel. Germany plans to end its use of coal-fired power production no later than
2038 but the government has promised to arrive at zero significantly earlier, but owing to the gas supply crisis, it has re-activated some already decommissioned coal plants.
Third German energy relief package
With its third energy cost relief package since the start of Russia’s war on Ukraine, the German government hopes to alleviate concerns over skyrocketing prices for heating and electricity in the coming winter. The large package worth some €65 billion includes one-off payments to households, a price brake for electricity, postponing the scheduled rise of the national CO2
price, and suggestions for a
nationwide reduced fare public transport ticket. While government members say supporting poorer members of society in the crisis is key, businesses complain the package does not contain enough measures to safeguard economic stability and jobs that are at risk due to high energy costs. The energy industry warned that a tax on windfall profits generated during the crisis could hamper much-needed investments in clean energy infrastructure. ●
Rolls-Royce and ULC-Energy to collaborate on SMR for The Netherlands
Rolls-Royce SMR has signed an exclusive agreement with the Dutch development company ULC-Energy to collaborate on deploying Rolls-Royce Small Modular Reactor power stations in the Netherlands. By signing the agreement, the parties have formalised their alignment and will be working closely together to advance application of this technology solution over coming years. The Rolls-Royce SMR has been selected
by ULC-Energy as its SMR technology provider of choice. The R-R SMR is a modular design – 90% of the 470 MW
unit is built in factory conditions, limiting on-site activity primarily to assembly of pre-fabricated, pre-tested, modules which is intended to significantly reduce project risk, and has the potential to drastically shorten build schedules. Dirk Rabelink of ULC-Energy commented: “Challenging energy market conditions, particularly in Western Europe, have clarified the importance of having reliable and affordable energy systems. The Dutch government believes that nuclear can and should play a meaningful role in The Netherlands.”
California to delay retirement of Diablo Canyon NPP USA Nuclear power
California’s legislators have approved a bill to extend the life of the state’s last operating nuclear plant by up to five years. The bill authorises a $1.4 billion government loan to keep the Diablo Canyon nuclear plant running; and to enable the extension, it exempts some state agencies from certain environmental laws. The decision marks a reversal of California’s 2016 decision to retire the PG&E owned plant by 2025.
Although the bill was opposed by some environmental groups. It comfortably won the support of the required two-thirds of Assembly members when it became apparent that there was a need to shore up the state’s electric reliability and prevent rolling blackouts.
State governor Gavin Newsom has no direct authority over the operating licence for the Diablo Canyon PP and the vote opens up a
way for Pacific Gas & Electric to begin to seek a longer run for the plant beyond its scheduled closing by 2025, but uncertainties remain. For now the utility must obtain permission from the US Nuclear Regulatory Commission to continue making electricity beyond 2025, when its licence expires, and PG&E also will seek a share of $6 billion that the Biden administration has set aside to rescue nuclear plants at risk of closing. ●
www.modernpowersystems.com | September 2022 | 5
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