Coal to stay top fuel up to 2030, says Frost & Sullivan

Electricity generation is set to climb steadily up to 2030, with coal remaining the dominant fuel source, finds Frost & Sullivan’s Annual Global Power Generation Forecasts 2011.

China and India are expected to play a key role in both trends. Their share of global electricity demand is forecast to hit 34.5 per cent in 2030, up from 23.6 per cent in 2010. Their share of global coal fired generation is predicted to soar from 43.8 per cent in 2010 to 57 per cent by 2030.

Coal will make up nearly 28 per cent of global installed capacity and more than 34 per cent of electricity generation in 2030, says Frost & Sullivan.

Global electricity generation is forecast to rise at a compound annual growth rate (CAGR) of 2.7 per cent from 2010 until 2020, driven by urbanization and a rapidly growing middle class in the developing world, finds the report.

Annual growth in generation will then slow to 1.8 per cent between 2020 and 2030 as emerging markets expand more slowly and energy-efficiency measures take greater effect.

Gazprom merger to create power giant

Gazprom aims to create a Russian electricity giant with 52 GW in capacity by combining its power assets with those of IES Holdings, part of the Renova Group.

The merger will create Russia’s largest power company with about a quarter of Russia’s generating capacity by combining Gazprom’s 36 GW with Renova’s 16 GW. The new firm is expected to be worth more than $15bn.

Renova will get a 25 per cent stake in Gazprom Energoholding, which controls Gazprom’s main power assets. The parties said they may sell shares in the newly merged company through an IPO.

Nigeria to spend $5.8bn on power over next two years

Nigeria’s President Goodluck Jonathan has announced plans to develop the country’s economy that include investing $5.8bn up to 2013 into alternative energy and power generation, and transmission and distribution to raise current output of 4 GW. Objectives in ‘The First National Implementation Plan for 20:2020’ include reducing the 40 per cent proportion of Nigerians that lack access to electricity.

Global carbon market climbs 3 per cent in H1 2011

The global carbon market grew by three per cent to €50bn ($70bn) in the first six months of this year, compared to €48bn in the first half of 2010, mostly due to higher prices for emissions permits, according to Thomson Reuters’ Point Carbon.

Transaction value increased despite a five per cent drop in volume from the first half of 2010 to 3.6bn tonnes, mainly due to lower volumes of Europe’s EU Allowances (EUAs).

“Global carbon markets as a whole continue to perform well despite significant global economic turmoil,” said Carina Heimdal, the report’s author.

Point Carbon analysts said average global carbon prices rose to €14.09/tonne in H1 2011, compared to €12.97 in H1 2010. But a sell-off in the EU’s emissions trading scheme in June led Point Carbon to cut its average price forecasts for Phase 2 EUAs to €15.75 from €20.

Moves to develop trading schemes in Australia, South Korea and California should help the global carbon market continue to grow over the next few years, the report said.

Qatar to lead Middle East energy growth

Qatar is set to spend $125bn in new energy projects, making it the main player in an ambitious power generation drive in the Gulf Cooperation Council (GCC) countries.

GCC countries are projected to invest more than $300bn in 20 energy projects by 2020. Energy industry analysts estimate that consumption in the region will grow by 7-8 GW annually over the next 15 to 20 years.

Saudi Arabia is forecast to spend about $100bn on power generation up to 2020. The UAE will also invest about $74bn between 2011 and 2015, according to the Arab Petroleum Investment Corporation.

Jordan receives final nuclear reactor bids

Jordan’s Energy Ministry has accepted final bids for the construction of its first nuclear reactor from Atomstroy Export, AECL and a consortium of Areva and Mitsubishi Heavy Industries.

The Jordan Atomic Energy Commission said the plan is to construct a 1000 MW Generation III reactor by the end of the decade.

A ministerial committee began reviewing the bids in mid-July, and is expected to announce the results in December.


Bahrain: French gas and power group GDF Suez plans to sell its 30 per cent stake in the Al Hidd power and water desalination plant. GDF Suez’s stake carries an enterprise value of $200m.

China: A new higher feed-in tariff means grid operators will pay developers 1.15 yuan (18 US cents) per kWh from PV projects approved under non-competitive tenders, which could now have internal rates of return as high as 8 per cent.

Germany: Siemens has started testing the 60 Hz version of its SGT-8000H, which recently achieved more than 60 per cent efficiency in its 50 Hz version at the Irsching 4 combined-cycle power plant.

Israel: The cabinet has approved a plan to cover 10 per cent of the country’s energy needs through renewable resources by 2020. Chief goals include using solar panels and biogas to generate 1550 MW by 2014 and 2760 MW by the end of 2020.

Kenya: Kenya Power said it would begin scheduled power cuts from 27 July. But the power supply situation is expected to improve in the next two to three months when an emergency 60 MW power plant is installed and operating in Muhoroni.

Nigeria: The Nigerian Electricity Regulatory Commission (NERC) has called on Siemens to extend its involvement in Nigeria from EPC contracts in power generation and distribution to building and owning power plants in the country.

Norway: Fortum has picked Telvent and Echelon for a smart metering project that will connect 100 000 households by 2015 as the country nears its 2016 deadline for hourly meter reading.

Russia: E.ON Russia has officially commissioned two new CCGT units with a combined capacity of 800 MW at its Surgutskaya GRES-2 power station in West Siberia.

South Africa: Oracle Utilities expects Smart Grids to enable better electricity management in the country as power generation becomes more decentralized through the greater use of renewable energy.

UAE: Private sector investment in alternative energy projects is expected to reach $100bn by 2020, said the economy ministry in a statement.

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