Development’s existing portfolio of
solar projects in California and to its
overall renewable energy asset base
around the U.S.
Report says 8,700 MW
to be retired in PJM during
May and June
The already significant pace of coal
plant retirements in PJM Interconnec-tion is about to kick into high gear over
the next couple of months, according to a
new study by Genscape.
The onslaught of coal capacity retirements in May and June could likely exert
upward pressure on power prices in PJM,
which have so far been running below
2014 levels, according to Genscape.
From June 2014 through the end of
March 2015, more than 2. 5 G W of generation has retired within the PJM footprint,
and a number of retirements are planned
for the next couple months, Genscape
said in the white paper, which was shared
That first major wave of retirements
was primarily coal, along with some natural gas and oil-fired capacity.
More than 1. 4 GW of capacity in PJM
is set to retire this month. The May retirements will be followed by another round
of retirements set for June 1, 2015, when
more than 7. 3 GW of capacity is scheduled to be deactivated.
“Should any of the units slated to retire
on June [ 1] come offline in May, there is
significant bullish risk to prices especially
during the last week of May,” Genscape
said. “The retirements that are coming
in June are major, baseload coal units in
Western PJM including Big Sandy (800
MW), Tanners Creek (988 MW), Musking-um River ( 1,400 MW), and Sporn (600
MW),” according to Genscape. All four of
those facilities are affiliated with American Electric Power.
Between April 15 and June 15 of this
year almost 10,000 MW, or 9,983 MW
to be exact, are expected to have retired,
according to Genscape data. The vast
majority of these retirements come from
coal-fired capacity – as well as some oil
and natural gas capacity.
Allete Clean Energy to acquire
wind facilities in three states
Allete Clean Energy secured a contract
to acquire wind farms in Minnesota, Iowa
and Oregon from The AES Corp.
In addition, the company signed an option agreement to buy a fourth wind energy facility in Pennsylvania in mid-2015.
Under the acquisition agreement, Allete Clean Energy would acquire AES’ position in operating wind energy projects
in Lake Benton, Minn., Storm Lake, Ia.,
and Condon, Ore. with a total output of
231 MW for $27 million. All three wind
farms to be acquired have power purchase agreements in place for their entire
The project sites enjoy favorable wind
energy resources in their respective areas,
are strongly supported by local communities, and are currently staffed by about 40
Pursuant to the option agreement, Allete Clean Energy will have an option to
acquire the 101 MW Armenia Mountain,
Penn. wind farm.
That project became operational in
2009 and has two long-term power purchase agreements in place.
It is in the PJM Interconnection electricity market area near the Pennsylva-nia-New York border.
MHPS to supply gas turbine
to CHP plant in India
Mitsubishi Hitachi Power Systems
(MHPS) subsidiary Mitsubishi Hitachi
Power Systems India Private Ltd. (MHPS
India) was awarded a contract by Indian
Farmers Fertiliser Cooperative Ltd. (
IFFCO) to supply its H- 25 gas turbine for a
22-MW combined heat and power (CHP)
The contract represents the first turnkey
order from the Indian market after MHPS
started its operation as a new business en-
tity in 2014.
IFFCO, India’s largest fertilizer producer, will build the cogeneration plant at its
existing Phulpur plant in Uttar Pradesh,
The plant will feature the H- 25 gas
turbine, a generator and a heat recovery
steam generator (HRSG). MHPS India
will supply the HRSG and other equipment.
Additionally, MHPS has also proposed
a long-term maintenance contract to support the operation of the plant.
The CHP plant is scheduled to go on-line in July 2016.
The H- 25 is a state-of-the-art high-re-liability, heavy-duty gas turbine. To date,
MHPS has delivered 17 gas turbines to
Areva to cut up to
6,000 jobs worldwide
Areva said it would cut between 5,000
and 6,000 jobs globally through 2017
Areva said in a release that it planned
to cut labor costs in France by 15 percent
and worldwide by 18 percent to help reduce capital costs and shore up cash.
The company announced a 4. 8 billion
euros ($5.4 billion) loss in March due to
delayed nuclear projects and hesitation
toward nuclear following the 2011 accident at the Fukushima Daiichi nuclear
power plant in Japan.
Several Chinese companies and France-based EDF and Engie - formerly known as
GDF Suez - have all expressed an interest
in buying sectors of Areva’s business. Areva said the economic situation calls for
immediate cost saving measures of one
billion euros by 2017.
The company said negotiations with
labor organizations are expected to take
place in May and June to plan voluntary
Areva currently employs 44,000 workers in 30 countries.