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GE Power Falters on Underperformance of Alstom Investment

November 24, 2017

Weak earnings associated with General Electric’s (GE’s) underperforming $ 10.1 billion investment in Alstom have prompted the giant conglomerate to rejigger its power business and lean more heavily on other segments.

GE Power, the company’s long-standing and lucrative business unit that has installed 1.6 GW of the world’s installed capacity over its 125-year history, has also suffered costly operational misses owing to softer markets for new capacity and an energy transition unfolding worldwide, company executives said in a November 13 investor call.

While the GE Power franchise remained “good,” even in the face of a “tough market,” GE had “exacerbated the market situation with some really poor execution,” GE CEO John Flannery said.

GE, a company renowned for technology breakthroughs will now seek to reinvent itself with a number of broad changes, including shrinking its board from 18 to 12, shaking up leadership, and shifting its focus to cultivate more earnings for shareholders.

At GE Power, specifically, the changes relate to costs, capital allocation, working capital and operations, governance, and culture.…

Siemens Will Consolidate Power Divisions, Cut 6,900 Jobs

November 18, 2017

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Siemens has announced it will cut 6,900 jobs, about half of them in Germany, over the next “several years” as the company consolidates its three power-related divisions. The November 16 announcement comes just days after U.S. power giant GE announced its own restructuring plan.

Lisa Davis, a member of Siemens managing board, said in a statement “The power generation industry is experiencing disruption of unprecedented scope and speed,” necessitating changes to the company’s operations.

Siemens CEO Joe Kaeser had mostly confirmed the restructuring plan last week, saying it would be “painful,” after reports surfaced in October that the company would likely cut jobs, close some units, and sell others as it downsized its Power and Gas Division. According to the company’s 2016 annual report, its Power and Gas business employs 48,700 workers and accounts for about 20% of the company’s revenue.

Janina Kugel, head of the company’s human resources department, in a statement said “The cuts are necessary to ensure that our expertise in power-plant technology, generators and large electrical motors stays competitive over the long term.”…

India Launches Probe of Power Plant Blast; Death Toll at 36

November 14, 2017

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India’s Power Ministry has established a committee to investigate the November 1 explosion at NTPC’s thermal power plant in Unchahar. The death toll from the blast is at 36, and dozens more workers at the plant were injured when flue gases and steam were released from a 500-MW coal-fired unit at the plant. Several remain hospitalized with severe burns.

The investigative panel was created November 6 by order of the Power Ministry, under a provision of the country’s Electricity Act 2003. It is led by P.D. Siwal, a thermal power expert from the Central Electricity Authority (CEA). The Power Ministry said it wants a report from the committee within the next month, and would like a report on the cause of the blast within the next week. The agency also asked the committee to “fix responsibility for lapses, if any,” and “to suggest remedial measures to avoid recurrence of such incidents in future.”

Other members of the investigating committee are Subir Chakraborty, director of projects for Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd.…

FPL Halfway Through 600-MW Solar Power Expansion

October 23, 2017

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Florida Power & Light (FPL), which recently sustained a blow to its nuclear expansion plans, on October 19 said it’s about halfway through an ambitious plan to add eight new solar plants in the state by early 2018, as it continues to increase its photovoltaic (PV) generation capacity as part of a larger strategy to install more than 10 million solar panels in its service territory by 2023.

FPL already has installed about 1.25 million solar panels at the eight new plants, with another 1.25 million to go. It’s the utility’s largest one-year solar expansion, surpassing the company’s installation of 1 million panels at three solar plants in 2016. FPL said construction at the sites at its peak employed more than 1,000 workers.

FPL President and CEO Eric Silagy on October 19 said the company is “investing nearly $ 1 billion to grow solar in Florida this year alone.” Silagy, visiting the Barefoot Bay Solar Energy Center in Brevard County on Thursday as part of a tour with local officials, said: “Together, these eight new plants are projected to generate an estimated net lifetime savings of more than $ 100 million for our customers, over and above the cost of construction.”…

Eversource Will Sell 14 New Hampshire Power Plants, Completing Deregulation

October 15, 2017

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Fourteen power plants in New Hampshire, including nine hydroelectric facilities, will soon have new owners as Eversource Energy divests its holdings in the state to satisfy an agreement with state regulators. Eversource outlined the sale of the hydro assets, along with three fossil fuel-fired plants and two combustion peaker units, in an October 12 filing with the New Hampshire Public Utilities Commission (NHPUC).

The NHPUC is expected to approve the deal, with the transactions expected to close by year-end 2017 or in early 2018. As part of the agreement, the new owners must keep the plants in service for at least 18 months. The ownership change will mark the completion of electric deregulation in New Hampshire and bring rate adjustments to customers in the first half of 2018, according to an Eversource spokesman, who said the Eversource plants were the last operated by a regulated utility in New England.

Eversource now will purchase electricity on the wholesale market, which the utility said will lower rates for its customers.…

EPA Ready to Attack Clean Power Plan

October 8, 2017

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The Trump administration’s Environmental Protection Agency (EPA) is considering its options to repeal or replace the Clean Power Plan (CPP), the signature climate regulation of former President Barack Obama.

POWER magazine on October 6 obtained a 43-page draft of the EPA’s proposed action on the CPP. The formal document is expected to be released soon. The document notes “The EPA has not determined whether it will promulgate a rule … to regulate greenhouse gas [GHG] emissions from existing EGUs [electric generating units], and, if it will do so, when it will do so and what form that rule will take.”

President Donald Trump has said the CPP violates federal law, something the EPA proposal says it will attempt to determine. Trump has said the emissions regulations could cost power consumers as much as $ 33 billion. He also has called the CPP a “job killer,” and in June said he would pull the U.S. out of the landmark Paris climate agreement after saying that man-made climate change is a “hoax.”…