POWER Digest [August 2024]
June and July 2024 saw several notable developments in the global power sector. While Malaysia moved to accelerate its coal phaseout, China unveiled a massive integrated energy project, and India approved significant transmission projects for renewable energy. Japan extended the operation of key nuclear plants, and Sweden took steps to prolong the lifespan of its nuclear facilities. Following are the news briefs curated by POWER’s editors.
Malaysia Slightly Moves Up Timeframe for Coal Phaseout
Malaysia will halve its coal use by 2035 and phase out coal generation by 2044, slightly earlier than previously anticipated by the country’s National Energy Transition Roadmap (NETR), Deputy Prime Minister Datuk Seri Fadillah Yusof said during a June 24 dialogue organized by the Powering Past Coal Alliance at the London Climate Action Week. The plan aligns with Malaysia’s 2022 pledge to halt the construction of coal-fired power plants from 2040 onward. Malaysia’s NETR seeks to increase renewable capacity to 70% (from the current 26%) by 2050, with investments in solar, biomass, and waste-to-energy. “While phasing out coal is critical, it is only one facet of the broader challenge and it is essential for us to acknowledge the cost associated with fully replacing this baseload capacity,” Yusof noted. To prioritize the necessary capital investment that will support strengthening and modernizing Malaysia’s grid, the country recently launched the Malaysia Energy Exchange, one of the world’s first green electricity marketplaces for cross-border trade. The exchange is an “innovative platform” that serves the dual purpose of maximizing the value of the country’s expanding renewable energy portfolio and bolstering its national decarbonization efforts to enhance regional collaboration on clean energy initiatives.
China Mulling 16-GW Integrated Energy Project in Inner Mongolia
The China Three Gorges Renewable Group will invest in an $11 billion integrated energy project in northern China’s Inner Mongolia region. The company in a stock filing on June 28 said the new project will include 8 GW of solar power, 4 GW of wind power, 4 GW of coal power, and 5 GWh of energy storage. Construction of the project is expected to begin in September 2024 with first power potentially delivered by June 2027. The project will dispatch power to the Beijing-Tianjin-Hebei cluster in northern China via an ultra-high-voltage power transmission line. The integrated energy project is notable for the Three Gorges Group, whose mega-power projects have mostly focused on hydropower. The company owns five of the largest 12 hydropower stations built or under construction in the world. The China Three Gorges Renewables Group, listed in June 2021, has spearheaded several noteworthy projects, including onshore and offshore wind projects, solar PV projects, and hybrid projects. The integrated project stems from the 2-GW Ulanqab demonstration project in Inner Mongolia. That project integrates 1.7 GW of wind power, 300 MW of solar PV, and a 550-MW energy storage system.
Indian Government Greenlights Transmission Projects to Transmit 9 GW of Renewable Power
India’s government approved two transmission projects in late June to transmit 9 GW of renewable power from the western state of Rajasthan and the southern state of Karnataka. The Inter-State Transmission System (ISTS) projects, worth a combined $1.63 billion, are part of the government’s plans to implement 500 GW of new renewables capacity by 2030. About 200 GW is already connected, the government said. The ISTS projects will be implemented through tariff-based competitive bidding. According to the Ministry of Power, one project, which will evacuate 4.5 GW within the Rajasthan Renewable Energy Zone (REZ), is slated to be completed within two years. The Karnataka project is a “system strengthening scheme” that will also evacuate 4.5 GW of renewable power from the Koppal area and Gadag area. That project is scheduled to be completed by June 2027.
Japan’s NRA Approves Extended Operation for Ohi 3 and 4 Under New Law
Marking a first under a new law passed in April, Japan’s Nuclear Regulation Authority (NRA) on June 26 approved long-term facility management plans for Kansai Electric Power Co.’s Ohi 3 and Ohi 4 nuclear power plants in Fukui Prefecture. The measure will allow the two pressurized water reactor (PWR) units—a combined 1,180 MW—to extend their operation beyond the standard 40-year limit. Lawmakers approved the GX Decarbonization Power Supply Bill on April 26, maintaining existing provisions that allow nuclear reactors to operate up to 60 years. The law designates nuclear power as a key component of the country’s baseload electricity generation. Under the law, nuclear operators must submit a management plan to extend operations beyond 30 years and perform a technical evaluation of plant deterioration. The new policy permits reactors to operate for more than 60 years by excluding offline inspection periods from their total service life. It also requires periodic regulatory approval every 10 years for reactors in use for 30 years or longer. The Ohi 3 and 4 reactors are the first to gain such approval under the new law. Ohi 3, grid-connected in June 1991, can now run until December 2031, while Ohi 4, connected in June 1992, can run until February 2033. “We will endeavor to enhance the safety and reliability of the plants by actively acquiring the latest domestic and overseas knowledge and information, and by reflecting them in plant designs and the maintenance of facilities,” Kansai said in a statement.
Two Swedish Nuclear Plants Eyeing 80-Year Operation
The owners of the Forsmark and Ringhals nuclear power plants in Sweden issued a directional decision on June 17 to extend their operating lifetime from 60 to 80 years. The 3.2-GW three-unit Forsmark plant, which came online between 1980 and 1985 in Uppsala County, is owned 66% by Vattenfall and 25.5% by Mellansvensk Kraftgrupp (a partnership between Fortum and Uniper). The 3.2-GW two-unit Ringhals plant in Halland County, which came online between 1981 and 1983, is owned 70% by Vattenfall and 30% by Uniper. The companies have invested up to $5 billion to replace or renovate systems and components at the two plants, including turbines, condensers, generators, control systems, switchyards, power lines, and infrastructure. “After the extensive modernizations that have been carried out in the past, we see good prospects for extending the operating life up to 20 years,” said Torbjörn Wahlborg, senior executive vice president of Generation in the Nordic region at Vattenfall. Extending the operating life of the five reactors by 20 years “could provide a total of more than 800 TWh of fossil-free electricity, which is roughly equivalent to today’s Swedish electricity consumption for six years,” Vattenfall noted. The companies now plan to embark on an “in-depth investigation phase,” which will include “detailed cost calculations and an analysis of identified risks in terms of expertise and suppliers, among other things.” A final investment decision may come soon after, likely in the 2030s.
—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).