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Producción y mercados energéticos 28/11/18

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Latest Energy News 28 November 2018
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France delays nuclear phase-out and plans to shut down 14 reactors by 2035

The French government has unveiled the first version of the revised PPE energy plan (Programmation pluriannuelle de l’énergie), which has two main targets: tackling climate change by cutting greenhouse gas (GHG) emissions and diversifying the electricity mix by reducing the country’s dependence on nuclear power.

The PPE will postpone the gradual phase-out of nuclear energy by a decade: the share of nuclear power in the French power generation mix is now slated to drop below the 50% threshold by 2035. The government currently plans to shut down 14 nuclear reactors rated 900 MW each between 2020 and 2035, including France’s two oldest reactors in Fessenheim by 2020, and between 4 and 6 units by 2030. Moreover, there will be no decision on the building of any new EPR nuclear reactor project before at least 2021.

Another core objective of the updated policy is the entire decarbonisation of the domestic energy sector by 2050. Efforts will be made to reduce energy consumption and to improve energy efficiency, through building insulation and equipment renewal, less-consuming vehicles, and recycling in the industrial sector. In the power sector, all coal-fired power plants will be shut down by 2022.

The government also announced future investments of €7-8bn/year to support the development of renewable energies, which is much more than the current €5bn/year. Domestic photovoltaic (PV) capacity will more than quintuple to 40 GW, while onshore wind capacity will more than double from 14 GW to 35 GW by 2028. Another 2.5 GW of offshore wind projects will be deployed on top of the 3 GW currently planned. These new capacities should increase solar PV power generation fivefold and triple onshore wind generation. The government will also focus on developing geothermal and biogas.

The revised PPE is only a draft and it will be submitted to several consultative bodies and authorities in the coming months. Meanwhile, the 2015 Energy Transition Act (Loi de transition énergétique) will have to be amended to include the nuclear reduction target of 2035, compared with the previous objective of 2025. The final version of the PPE is slated for summer 2019.

The current PPE runs over the 2018-2028 period and was laid out in 2016 after the adoption of the 2015 Energy Transition Act, which aims to diversify the energy mix and to accelerate the development of renewables. It initially planned to and reduce the share of nuclear in the power mix from 75% to 50% by 2025. However, this latter objective was abandoned in November 2017.

Companies

Rio Tinto divests Rössing uranium mining operations (Namibia) to CNUC

Global mining giant Rio Tinto will sell its entire 68.62% stake in Rössing Uranium Limited, the owner of the Rössing mine in Namibia, to the Chinese state-run uranium miner CNUC (China National Uranium Corporation, a subsidiary of CNNC) for a total consideration of US$106m.

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Emera sells 3 gas-fired power plants (1.1 GW) for US$590m (US)

US energy utility Emera will sell three natural gas-fired power plants located in New England (United States) to an affiliate of The Carlyle Group for US$590m. The assets included in the transaction have a total capacity of approximately 1.1 GW and correspond to the 520 MW Bridgeport Energy plant (three units, Connecticut), the 275 MW Tiverton Power (two units,…

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Policy & Regulatory

European Union clears €600m support scheme for solar power (France)

The European Commission has approved a €600m French support scheme for innovative solar power installations under EU State aid rules and under the 2014 Guidelines on State Aid for Environmental Protection and Energy.

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Tunisia prequalifies 28 consortia for wind and solar tenders

The Tunisian Ministry of Industry and Small and Medium Enterprises has issued a list of the pre-qualified companies that submitted an offer for the ongoing solar photovoltaic (PV) and wind first round tender processes. 28 consortia have been selected and they include major players such as Enel Green Power, Masdar, Engie, EDF Energies Nouvelles and Total Eren.

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Ghana will implement new wholesale power market rules by 2021

The government of Ghana has unveiled plans to implement new electricity market rules by 2021 to regulate the domestic wholesale distribution of electricity. The changes will be accompanied by the Ghana Grid Company Limited (GRIDCo) with support from the Electricity Market Oversight Panel (EMOP), a panel created in 2008 to supervise the Ghana Wholesale Electricity Market (GWEM).

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Forecasts

New projects are set to stop Gulf of Mexico gas production decline (US)

According to the United States Energy Information Administration (EIA), offshore natural gas production in the US portion of the Gulf of Mexico (GoM) has been declining during the last two decades. However, the development of new projects is likely to slow or reverse this long-term production decline.

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Infrastructure & Investments

UK regulator grants consent for pouring of Hinkley Point C concrete

The British nuclear regulator Office for Nuclear Regulation (ONR) has given project license holder NNB Genco its consent to begin pouring of concrete for the nuclear island of the Hinkley Point C-1 nuclear project in Somerset (United Kingdom). The island will entail the reactor building along with the four electrical and safeguard divisions on one common reinforced concrete base.

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Cyprus, Greece, Israel and Italy close East Med pipeline project agreement

The governments of Cyprus, Greece, Israel and Italy have reached an agreement on the East Med gas pipeline project, one year after the positive conclusion of a feasibility study by the European Union. East Med has been confirmed as Project of Common Interest (PCI). Initial works on the project is expected to begin within a few months and the project is slated for completion by 2025.

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