Energy Jobs at EnergyNorthwest.com

Natural Gas and Wind Are Cheapest Sources of Power in Majority of U.S.

December 12, 2016

In a finding that is likely to boost controversy over the future of U.S. energy policy, a comprehensive study of the full levelized cost of energy (LCOE) from various sources of electricity conducted by the University of Texas (UT) at Austin’s Energy Institute found that wind turbines and natural gas combined cycle power plants (CCPPs) provide the least expensive options for new generation across a large majority of U.S. counties.

The study, “New U.S. Power Costs: By County, with Environmental Externalities,” is part of an ongoing initiative at UT that attempts to take a “holistic approach” to calculating both direct and indirect costs of generating electricity.

The Institute has placed the results online in the form of an interactive tool that allows comparison of the LCOE for various options and adjustment of fuel costs. (The tool also makes some assumptions about the suitability of certain generation in various locations; for example, there are areas that would be unsuitable for fossil plants for environmental reasons.)…

Market Conditions Doom Another Nuclear Plant, Palisades, to Closure in 2018

December 8, 2016

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Entergy Corp. has decided to permanently close the Palisades nuclear power plant on October 1, 2018.

The news comes as a bit of a surprise, because Entergy had a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all of the power generated at Palisades through April 2022.

Late last year, however, UBS utilities analyst Julien Dumoulin-Smith suggested that the contract appeared to be potentially break-even or under water. Terminating the deal early was presumably the best option for both companies.

In a press release, Entergy said Consumers’ customers would save as much as $ 172 million over four years, even after paying Entergy $ 172 million to terminate the contract. The early termination payment is expected to “help assure the plant’s transition from operations to decommissioning.”

The 798-MW plant located about five miles south of South Haven, Mich., faced economic difficulties similar to other single-unit facilities, such as the recently closed Fort Calhoun Plant, and the R.E.…

Germany Must Pay Nuclear Firms Compensation for 2011 Shutdown

December 6, 2016

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Germany’s highest court ruled on November 6 that energy firms E.ON, RWE, and Vattenfall have a right to seek compensation as a result of the 2011 decision to prematurely shut down the country’s nuclear fleet.

The Merkel government’s order in the wake of the Fukushima disaster, in which three Japanese reactors melted down as a result of damage from a 9.0 earthquake and tsunami, was deeply controversial and continues to reverberate across Germany’s energy landscape. Eight of the nation’s oldest 17 nuclear reactors were shut down immediately, with the others slated for retirement by 2022 (Figure).

E.ON’s Grohnde nuclear plant in Lower Saxony is one of the best-performing units in Germany’s fleet. It is slated to retire by 2022. Courtesy: Heinz-Josef Lücking/Wikimedia

Abrupt Turnaround

The German Constitutional Court said the order itself was legal, but because it impacted the companies’ property rights in their plants, the government was obligated to pay compensation. Part of the decision was based on agreements the government had reached with the firms a few months earlier to extend lifetimes for the reactors well beyond 2021.…

Exelon Gets Its Christmas Wish—Illinois Legislation Will Save Nuclear Plants

December 4, 2016

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After a lengthy process of give and take, the Illinois Legislature approved the Future Energy Jobs Bill (SB 2814) on December 1, the last day of the state’s veto session.

The bill will now go to Gov. Rauner (R) for his signature, which is expected. Once signed, it will take effect on June 1, 2017, a concession that was made to reduce the number of votes required for passage. Even with the change, the bill passed with only three votes to spare in the House and two extra votes in the Senate.

Nuclear Plants Rescued

Exelon predictably praised the bill. The power company claims SB 2814 will maintain competitive electric rates in Illinois, while preserving and creating good-paying jobs and spurring billions of dollars in investment in clean energy and energy efficiency.

But those items weren’t quite what Exelon was fighting for in its effort to push the bill through the General Assembly. It was desperate for the $ 235 million the bill will allow it to collect from customers annually to keep its Clinton and Quad Cities nuclear power plants open.…

Arrests Made After Scaffold Collapse Kills 74 Workers at Chinese Power Plant

November 30, 2016

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Nine people, including the chairman and chief engineer of the Fengcheng power plant, have been arrested following a scaffold collapse that killed 74 construction workers on November 24.

The scaffold platform had been erected to facilitate work on a cooling tower that was being constructed at the plant located in Yichun City, Jiangxi Province. According to a CCTV newscast, more than 60 people were working on the platform, and more than a dozen were on the ground waiting for their 7 a.m. shift to start, when the scaffold collapsed.

China orders safety overhaul after power plant accident in Jiangxi killed 74 https://t.co/G3KfkVluIx https://t.co/D6K8nFAEZB pic.twitter.com/Jzdu1Jv2pw

— China Xinhua News (@XHNews) November 28, 2016

China’s state news agency Xinhua reported that the victims ranged in age from 23 to 53 years old, with most under the age of 36. More than 300 rescuers, two drones, four sniffer dogs, and seven cranes were said to have been involved in the search and rescue effort.…

Coal-Fired Generation Projected to Surpass Natural Gas This Winter

November 24, 2016

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Coal, the unchallenged leader in U.S. power generation for most of the past century, may regain its place at the top of the energy mix hierarchy this winter, according to projections released by the U.S. Energy Information Administration (EIA).

The EIA’s November Short-Term Energy Outlook suggests that prices for natural gas delivered to the power sector will continue rising, resulting in gas-fired generation reaching a seasonal peak of nearly $ 31/MWh in February 2017. That’s a far cry from the low recorded in March 2016 of about $ 16/MWh.

Increased gas prices would be a favorable development for the coal power sector. The national average price for power generated by coal has been between $ 21/MWh and $ 23/MWh for the past couple of years, making it the more economical choice.

As recently as 2010, coal supplied nearly twice the electricity generated from gas. However, falling gas prices as a result of the shale boom and coal plants closing due to more stringent environmental regulations have changed the landscape substantially.…