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Coal Fuel Contracts: A Moving Target

January 28, 2017

In recent years, coal power generators have faced increasing difficulty predicting annual fuel requirements due to more cycling and low-load operation. That presents problems for the people negotiating fuel contracts. Not all mining companies are amenable to contract changes, but some unique solutions have been developed.

Remember when coal-fired power plants supplied baseload power 24/7/365 (when they were not offline for scheduled maintenance)? It seems like ages ago. Nowadays, load is as unpredictable as the weather, which is to say, if the sun is shining or the wind is blowing, renewable resources are often putting a crimp in coal-fired generation.

But renewable energy isn’t the only thing pushing coal plants to the sidelines; low-cost natural gas has played a role as well. Consequently, some gas turbines previously used as peaking units are now being dispatched for baseload power. That has meant various coal units have had to run at reduced loads or even to shut down for “economy” from time to time.…

Global Nuclear Fuel Update

January 26, 2017

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Uranium oxide, the basic fuel for nuclear power plants, has recently sold at prices not seen in the past 13 years. In fact, the price is less than the cost of production in many cases. That could be a problem, because little is being done to increase the fuel supply, even though the world is adding new and larger reactors.

Late last year, the Organisation for Economic Co-operation and Development’s Nuclear Energy Agency and the International Atomic Energy Agency released a joint 550-page report titled Uranium 2016: Resources, Production and Demand. It was the 26th edition of the now-biennial report, commonly referred to as the Red Book,with data current as of January 1, 2015.

One potentially concerning revelation was that total identified uranium resources had only increased by 0.1% since the previous report had been issued. A reason cited for the minuscule uptick was that very little investment had been made in exploration due to depressed uranium market conditions.

Indeed, the price for uranium oxide (U3O8) has been in a death spiral (Figure 1).…

Where Are We After 10 Years of Bulk Electric System Reliability Standards?

January 24, 2017

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As concerns about grid security increase globally, it’s a good time to review the history, scope, and effect of North American electric system reliability standards. As the threat landscape changes, standards alone are not enough.

Mandatory. That’s the key word in the Energy Policy Act of 2005 (EPAct) where grid security is concerned. Within two years of that legislative action, the electric power industry was welcomed into the world of operation and planning regulation far beyond anything that had come before. As of June 18, 2017, we will have 10 years of experience with mandatory reliability standards. Are we better off as a result? Are the costs of compliance commensurate with the benefits? Will changes in approach to compliance currently under way enable a more efficient regulatory environment going forward? This article examines how we got to the current system and where we may go from here.

The Triggering Event

The April 14, 2003, blackout of much of the northeastern United States and parts of Canada was the impetus for EPAct and the accompanying changes to Section 215 of the Federal Power Act.…

Start Generator Relay Loadability Study Now for Timely NERC PRC-025-1 Compliance

January 22, 2017

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Complying with reliability standards requires considerable resource planning. The tools and suggestions provided here may help engineers conform to new generator relay loadability requirements. But compliance isn’t the only reason to be an early adopter; doing so can also avoid unnecessary downtime and reduce maintenance costs.

If you are the owner or operator of a generation facility connected to the bulk electric system (BES), starting a new year may trigger some anxiety regarding regulatory requirements. In particular, the October 2019 deadline to demonstrate compliance with the North American Electric Reliability Corp.’s Generator Relay Loadability Standard (NERC PRC-025-1) just got a little closer. But not to worry, there are resources that can streamline the work required and make your job a little easier.

PRC-025-1 is just one of the reliability standards created following the 2003 electric power blackout that affected 50 million people in the U.S. and Canada. As the most widespread blackout in North American history, it is estimated to have cost between $ 7 billion and $ 14 billion.…

THE BIG PICTURE: The Nuclear Fuel Cycle

January 20, 2017

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The post THE BIG PICTURE: The Nuclear Fuel Cycle appeared first on POWER Magazine.

POWER Magazine…

Global Developments Giving CHP a Much-Needed Boost

January 18, 2017

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According to the International Energy Agency (IEA), global power production from combined-heat-and-power (CHP) technologies has stagnated since 2000, lagging far behind growth in conventional power technologies and commercial heat generation. Despite having an average efficiency of 59%, CHP’s share of global generation in 2013 stood at just 9% (Figure 1), the bulk of it at industrial sites in the chemicals, metal, oil refining, pulp and paper, and food processing sectors (see this issue’s cover stories).

1. Co-generation trends. Source: International Energy Agency (2016), Tracking Clean Energy Progress 2016, OECD/IEA, Paris

That may be poised to change, however: Along with the Paris agreement and a renewed drive for increased energy efficiency, a number of countries have of late implemented policy initiatives that could spur growth for CHP.

U.S. In the U.S., where CHP has a long history in the industrial sector, several market drivers are emerging, the Department of Energy noted in an April 2016 report. These include lower energy operating costs, environmental regulations, resiliency initiatives, utility support, and project replicability (for more, see “CHP Update: Policies, Partnerships, and Challenges” in POWER’s February 2016 issue).…