COMPANIES

Revised IAEA figures predict increased global nuclear power capacity

The International Atomic Energy Agency (IAEA) has revised its nuclear power generation projections to 2030.

It estimates an increase in global nuclear capacity during this period, ranging from a low case scenario of 473 GW, 27 per cent higher than today’s 372 GW, to a high case scenario of 748 GW i.e. double today’s capacity. This increase reflects major expansion plans underway in key countries such as China and India, coupled with relevant new policies and interest emerging in countries such as the UK and USA.

At the same time, the IAEA reported a dip in nuclear’s share of global electricity generation, dropping to 14 per cent in 2007 having remained relatively steady at 16 to 17 per cent from 1986 to 2005. This drop was primarily attributed to an earthquake in western Japan on 16 July 2007, which shut down all seven reactors at the Kashiwazaki-Kariwa nuclear power plant à‚— the seven units total 8.2 GW, almost one sixth of Japan’s nuclear capacity.

According to the IAEA’s 2008 high projection, nuclear power’s share is likely to hold steady at 14 per cent over the coming years, whilst its low projection estimates nuclear’s share will drop to about 12.5 per cent by 2030.

Alstom signs contract to expand Shoaiba plant in Saudi Arabia

Alstom has signed a contract with Saudi Electricity Company to build stage 3 of the Shoaiba power plant, worth approximately.

The new 1200 MW steam power plant will be built adjacent to the existing plant, located on the Red Sea coast 100 km south of Jeddah. Upon completion of the project, the Shoaiba power station will comprise 14 units of 400 MW each, with a gross total output of 5600 MW.

Stages 1 and 2 of the Saudi Arabian power plant were supplied by a consortium that was led by the French engineering giant on a turnkey basis.

IPSA doubles new clean coal fired capacity in South Africa’s Eastern Cape

IPSA Group Inc. has announced that it plans to increase the scale of its clean coal fired power plant programme in South Africa’s Eastern Cape, from 500 MW to nearly 1000 MW, by the addition of new steam turbine units.

Having already developed a power plant at the mouth of the mine at Indwe in the Eastern Cape, IPSA will now be permitted to increase the overall scale of its coal fired development and to accelerate the in-service date of some of its initial capacity on-site.

The mine is controlled by Elitheni Coal Pty. Ltd. and terms for this expansion were set out in an agreement between IPSA and Strategic Natural Resources Plc., a controlling shareholder in Elitheni.

Strong upward trend for project tariffs in the Gulf region

Since May this year, four major independent water and power projects (IWPPs) à‚— in Abu Dhabi, Bahrain, Oman and Saudi Arabia à‚— have received bids from international developers, reports MEED.

And, with the exception of the Salalah IWPP in Oman (where the value of the offers is not known), the power and water tariffs offered by bidders are higher than ever.

According to one leading adviser to Gulf governments on power and water projects, capital costs in Abu Dhabi have increased from $400 000 a MW in 2004-05 to $1m a MW today. In Bahrain the rise in tariffs has been even more striking, with a 75.1 per cent increase in power tariffs over the past four years. Oman, in contrast, has not been subject to a consistent increase in tariffs. The impact of rising engineering, procurement and construction costs on margins has been the single greatest contributor to rising tariffs say developers.

Climate change: developing nations need $170bn

The World Bank has estimated that a total of $170bn is required between now and 2030 to enable developing countries mitigate and adapt to the impact of climate change.

Mr Eduardo Dopazo, Fund Manager in the World Bank’s Carbon Finance Unit, has been reported as saying that the private sector will be expected to account for 80 per cent of the sum. “The huge financing gap for developing countries to contain the impact of climate change is beyond the current funding under the UN Framework Convention on Climate Change” he remarked.

GDF Suez wins power and water project in Bahrain

GDF Suez Energy International has won the contract to build, own and operate the Al Dur 1 power generation and seawater desalination plant, a major independent water and power project (IWPP) in south of Bahrain.

The Al Dur 1 facility is a greenfield, natural gas fired installation, which will deliver 1234 MW of electricity and 218 000 m3 of water per day.

GDF Suez Energy International and Gulf Investment Corporation each hold 50 per cent in the bidding consortium. Completion of the Al Dur 1 plant is scheduled for 2011.

Temasek sells Senoko Power to Japanese consortium for $2.5bn

Singapore’s Temasek Holdings has sold its wholly-owned power generation company, Senoko Power, to a Japanese consortium, Lion Power Holdings, for $2.5bn.

The sale of Senoko Power brought to a close the competitive and rigorous bidding process which began in July, Temasek said in a statement. Senoko Power is the second of Temasek’s three power generation companies to be sold under its plan previously announced in July last year to divest all of its wholly-owned power generation companies in Singapore by end of next year.

Temasek and Lion Power signed the share purchase agreement for the 100 per cent sale of Senoko, which provides over 30 per cent of Singapores electricity needs.

In addition, Lion Power will assume $226m of net debt of Senoko Power as at 31 March 2008.

Lion Power is a special-purpose vehicle owned by a consortium comprising Japan’s Marubeni Corporation, GDF SUEZ SA of France, Kansai Electric Power (KEPCO), Kyushu Electric Power and Japan Bank for International Cooperation.

GE Hitachi eyes a global $60bn in new nuclear deals by 2030

GE Hitachi hopes to get up to $60bn in new business constructing up to ten nuclear power plants globally from 2016 to 2030 as the nuclear industry gears up to supply low carbon electricity to countries worried about high oil prices and dependence on imported energy, President and CEO John Fuller has said.

GE Hitachi Nuclear Energy, the joint venture between General Electric Co and Hitachi Ltd, is focusing on its established markets in Japan and Taiwan, and the US where it already has a presence. It is also expanding into new markets such as the UK, Turkey and the United Arab Emirates.

Chadbourne & Parke expands capabilities in UAE by bolstering Dubai office

The international law firm of Chadbourne & Parke has bolstered its Dubai office by transferring two partners from its London office.

Partner Sohail Barkatali will move to Dubai at the beginning of October, bringing his deep experience in energy and related infrastructure projects in the Middle East.

Mark Pring, who focuses on insurance and reinsurance and arbitration, relocated to Dubai in August while maintaining an office in London. Also joining the Dubai office is international partner Richard Keenan, previously a project finance lawyer with leading law firms in London.

Siemens and E.ON sign 1150 MW wind turbines deal

Siemens Energy and E.ON have agreed that the former will supply 500 wind turbines with a total capacity of 1150 MW to E.ON for new projects in the United States and in Europe.

The wind turbines will be delivered and installed in 2010 and 2011. This major contract marks a new era of collaboration between E.ON and Siemens in the renewable energy business.

“This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history” said René Umlauft, CEO of the Renewable Energy Division within the Siemens Energy Sector.

The agreement between Siemens and E.ON covers the delivery of 500 wind turbines with a capacity of 2.3 MW each. The machines will feature various combinations of tower heights and rotor diameters. Around 600 MW of wind power capacity is reserved for U.S. projects, 550 MW will be installed in wind farms across Europe. E.ON will place individual orders with Siemens for each project.

EU approves Edison-Hellenic JV in Greece

Italy’s Edison and Greek refiner Hellenic Petroleum has won approval from the European Commission for a joint venture that would make the combination the second-biggest power operator in Greece.

The 50-50 joint venture aims for a generating capacity of more than 1500 MW, equal to about 12 per cent of the fast-growing Greek market, Edison said when the deal was announced in July.

Under the deal, Hellenic Petroleum would fold into the new joint venture its T-Power SA subsidiary, which owns a 390 MW gas-fired combined-cycle power plant in Thessaloniki, the first private-sector power plant built in Greece.

GDF Suez to buy FirstLight Power for $1.9bn

French utility group GDF Suez has announced plans to buy U.S. electricity provider FirstLight Power Enterprises.

GDF gave no financial details in a statement, but according to industry sources quoted by Le Figaro newspaper the deal would be worth €1.3bn ($1.85bn).

GDF Suez Chairman Gerard Mestrallet commented that the deal would make GDF Suez the third-largest supplier of electricity to businesses in the United States.

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Ghana: A $350m rural electrification project in Ghana has been awarded to a Weldy-Lamont based in Illinois, USA. The company will procure equipment and services from US suppliers as part of a loan arrangement.

Iran: Iran is developing new ventures for dams and power plants in ten countries, reports the BBC. Exemplifying plans are the Sangtudeh dam and its 200 MW power plant in Tajikistan, and a new power plant in Sri Lanka.

Iran: The country’s first solar power station is up and running on a dairy farm in the Negev desert. This follows a recent announcement of state incentives to allow home and industrial customers to install solar power panels.

Liberia: Monrovia says that it might turn over operation of the Mount Coffee Hydro plant to a private US-based group. It may cost the government approximately $300m to rehabilitate the plant, money which the government would struggle to raise.

Nigeria: Abuja has set an ambitious target of moving 20 per cent of the country to off-grid renewable energy sources by 2012. Renewable energy currently contributes less than one per cent of the country’s energy mix profile.

Turkey: Turkey is to build a natural gas power plant in Turkmenistan, and is planning to take part in oil and natural gas exploration works in the Caspian region of the country, according to the Turkish Energy Minister Hilmi Guler.

UAE: Siemens Energy is delivering four turnkey high voltage substations for the planned ‘Dubailand’ theme park in the United Arab Emirates, continuing Siemens Energy’s steady growth in the Gulf region over the past few years.

UAE: Dubai Electricity & Water Authority has received bids from three groups for the $1.5bn contract to build the Hassyan seawater intake and outfall system for the Hassyan power and desalination complex, reports MEED.

Uganda: Uganda Electricity Transmission Company Limited has been granted a license to clear a route through the Central Forest Reserves of Mabira, Kifu and Namyoya to establish a power supply line to the Bujagali hydropower site

Selling power: German utility RWE has sold its 50 per cent stake in Spanish power generator Tarragona Power to Iberdrola Generacion, also of Spain, but did not provide any financial details. Tarragona owns and operates a 417 MW gas fired combined-cycle plant.

Cross-border clincher: Norway’s Hydro has signed a contract with Vattenfall for the supply of close to 18 TWh of electricity in Norway over an eight-year period, starting in 2013. It is one of the largest cross-border contracts since the integration of the Nordic power market in the early nineties.

Finding Atlantis: US investment bank Morgan Stanley has increased its stake in Singapore-based tidal power company Atlantis Resources Corporation. Morgan Stanley now has the largest shareholding in Atlantis after a non-cash deal, whereby it added its own tidal power project development business to the bigger company.

Cell cell cell: LG Electronics has signed a preliminary deal on a solar cell production venture with German’s Conergy, a first foray in its goal to become a global player in the solar industry.

Easing the bottleneck: Vattenfall has signed a general agreement with wind power supplier, Vestas, for delivery of wind turbines. During 2010, Vattenfall will purchase wind turbines with a capacity of 100 MW.

A quiet revolution: RWE Innogy GmbH in Essen, Germany, is taking a minority shareholding and making a à‚£6m ($10.8m) capital injection into Quiet Revolution Ltd, a wind turbine company based in London, UK.

Our friends electric: Baldor Electric has acquired Poulies Maska, a Canadian manufacturer of V-belt pulleys, sheaves, bushings, couplings and related mechanical power transmission components.

Conglomerate construction: Japanese conglomerate Sumitomo is to spend up to $1.5bn to build two additional generators at Tanjung Jati B coal fired power plant in Jepara, central Java, Indonesia.

Core investment: India’s Tata Power has acquired ten per cent of Australia-based Geodynamics, which specializes in geothermal energy and enhanced geothermal systems (EGS).

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