December
2016
Please
enjoy this edition of the
Prospect Resources
newsletter
Did
You Know - How
is Electricity
Generated?
Classic
electricity generation,
while on a much larger and
more efficient scale, is
still utilizing a process
very similar to the
steam-turbine method
developed by Thomas Edison.
Edison used coal-fired
boilers to heat water,
producing high-pressure
steam. The steam, in turn,
rotated a turbine, which
powered a generator.
Spinning turbines still
account for the majority of
the electricity produced
today.
Aside
from coal, there are other
methods of producing the
steam. In nuclear power
plants, steam is produced by
heat released from a nuclear
fission reaction.
As
coal and nuclear generating
stations are being retired,
natural gas has become an
increasingly popular
driver. Natural gas
generation can be achieved
two ways. “Simple
cycle” natural gas
generation involves direct
combustion for spinning the
turbine blades, similar to a
jet engine. On the other
hand, "combined cycle"
natural gas generation
combines the simple cycle
turbine generating power on
its own and a separate steam
turbine generating power
using the exhaust heat from
the combustion process.
Alternative
energy generation moves away
from thermal sources. The
two most common methods
currently being employed and
further enhanced are solar
power, which captures the
sun's energy through
photovoltaic panels, and
wind power, which utilizes
the natural movement of the
air to spin power
generating turbines.
Landmark
Energy Bill Deal in
Illinois
The energy bill that has been
negotiated over the past two
years was finally passed after
multiple changes on the final
afternoon of the Illinois
legislative session.
Among the provisions included in
the bill are:
- expansion of the
state’s energy efficiency
programs
- changes to the state’s
renewable portfolio standard
- payments to the nuclear
plants in danger of closure
for 10 years
- a 1.3% cost impact
limit on all business
classes compared with 2015
rates
The final wording of the bill
received support from
environmental groups such as the
Sierra Club, the Natural
Resources Defense Council and
the Environmental Defense Fund.
For more details about this story,
click here.
Continued
Pressure on Natural Gas
Prices in New England
Pipeline constraints into New
England could result in the most
expensive natural gas prices on
the planet, according to a
Bloomberg report.
The supply of gas is already
severely limited by pipeline
capacity. The increased demand
for natural gas for use in
electricity generation
creates severe price shocks
during cold snaps. Prices over
$7.50 per MMBtu are already a
reality. Over half of the
generation in New England is
being driven by natural gas, and
additional coal plants are being
retired. Environmental and
consumer groups are opposing
capacity increases into the
area.
New England will intensify its
import of liquefied natural gas
(LNG) into Boston Harbor in
order to help mitigate the
shortages.
For more details about this story,
click here.
Electricity
Storage in Commercial
Markets
The underground storage of natural
gas is an important component in
market supply and consequent
pricing. The three primary
facilities for gas storage are
aquifers, salt mines,
and depleted reservoirs.
The Federal Energy Regulatory
Commission (FERC) is proposing to
incorporate localized electricity
storage into wholesale markets.
Should the proposal go through,
these markets can expect to see
rate improvement.
For the complete FERC news
release, click here.
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