Commentary

Affordable, reliable, clean energy is essential to the economic prosperity of all nations – especially to underpin the development of emerging and developing economies. The World Bank estimates that at least 1.4 billion people, mostly in Africa and Asia, lack access to electricity. For hundreds of millions of others, supply is often limited and/or unreliable. About 80% percent of the world’s total commercial energy demand is met by fossil fuels, with about 30% from coal. The U.S. Energy Information Administration (EIA) projects that world energy demand will grow by almost 40% by 2030 compared to 2007. Also, the International Energy Agency (IEA) has indicated that coal use has increased more than any other energy source worldwide over the past decade, mostly from the rapid expansion of coal power generation in Asia, especially in China and India.

Owner‘s and operators of asset-intensive infrastructure understandably look for decades of safe and reliable operation.. History shows clearly how industrial disasters potentially cause immense damage to the environment, the economy and can be deeply harmful to a businesses long-term reputation.

Interconnected electricity grids can be a variety of sizes but they all do the same thing: balance supply and demand at all times.

Competitive markets are usually the most efficient way of organizing economic activity, and power markets are no exception. Competitive operation encourages more capacity and a system which will use the cheapest power generators available to meet demand.

Globally one of the energy topics atop many electric utility executive’s minds is what we are all calling the “Smart Grid.” Of course what constitutes the Smart Grid can mean many different things from new digital meters on someone’s house to advanced Flexible AC Transmission Systems (FACTS) to new sensors on transmission lines and substations. Regardless of the exact deployment for an electric utility, a key consideration – something on my agenda every day – is the security of the Smart Grid deployment.

As I write this in Sydney the Australian body politic fights a continuing battle over whether Australia will or won’t have a carbon tax and, if so, what form will it take and which sectors are to be fully or partly compensated. If it were not for a “hung” parliament, with neither major party having control on its own, there would be no question of such a tax or of a carbon trading scheme for the coming few years.

An effective alarm system is a key element for reliable power generation operations, but poorly configured and performing alarm systems in power plants can actually hinder the operator’s ability to effectively manage abnormal situations. This is a common problem throughout the power industry, and results in unplanned outages and decreased profitability.

In the wake of the earthquake in Japan and the subsequent problems with several nuclear plants, people are beginning to doubt nuclear energy more and more. Many say that we need to replace nuclear energy with renewable energies. But do they consider the amounts of energy that will be needed to replace nuclear energy?

Overview On 16 February 2011, the Minister of Energy and Mineral Resources (the MEMR) issued a new regulation on Electricity Pricing for Indonesian Geothermal Projects (MEMR Reg 2/2011). This new regulation is important because it obliges PT Perusahaan Listrik Negara (Persero) (PLN) to buy electricity from independent geothermal power producers and sets price guidelines for the purchase of the power by PLN under the applicable power purchase agreements (PPAs). This regulation will be used as a reference for all geothermal power projects in Indonesia. The procedure for establishing tariffs for Indonesian geothermal power projects has lacked clarity for some years. We expect that MEMR Reg 2/2011 will provide greater certainty to the process of settling tariffs for such projects, thereby expediting the negotiation of geothermal PPAs and helping to provide much-needed impetus to the development of this sector.

“Asia is rolling out its new build ambition on a global basis, but technology vendors should be mindful of a range of challenges that could arise in new nuclear jurisdictions”, say John Yeap and Carl Watson.

The impressive safety and efficiency of modern coal power plants can only be maintained through careful attention to the operating conditions in all stages of the process.

Soaring energy needs, volatile oil prices and an increased focus on curbing global warming have spurred investments in clean energy, or “green financing”.

The three ring circus that was COP-15 has long since packed up leaving behind recriminations and all sorts of “I told you so’s”.

Consequently, the country’s grid companies will need to improve their power transmission technologies.