THE ENERGY INDUSTRY T I M E S June 2018 • Volume 11 • No 4 • Published monthly • ISSN 1757-7365 www.teitimes.com Special Supplement Decarbonising Europe Start up of the Kozienice 11 power plant highlights Poland’s commitment to building modern, high efficiency coal fired generation. A recent study by Pöyry assesses the economics of two potential pathways to decarbonising Europe’s transport, heat and electricity sectors by 2050. Page 14 News In Brief EC to massively increase spending on climate change and energy transition The European Commission has put forward its future budgetary plans, which include spending a quarter of its entire finances on tackling climate change. Page 2 SMRs progress in USA The USA is looking to continue developing small modular nuclear reactors (SMRs) as operating nuclear plants in the country struggle with economic conditions. Page 4 Investors line up for Taiwan offshore wind projects A growing number of international investors are lining up to take advantage of Taiwan’s budding offshore wind power sector. Page 6 Greece unveils renewables auctions Greece’s government will auction 600 MW of wind and solar energy capacity in July as part of a move to competitive renewable energy tenders. Page 7 Organisations recognising value of “energy leadership” The role of energy is increasingly being considered an integral part of business objectives and boardroom strategies, according to UK-based energy company Centrica. Page 8 Energy Outlook: US plots course for wind power breakthrough Despite a rollercoaster ride in terms of policy support, hard-won reductions in the lifetime cost of energy is making the case for wind power increasingly compelling in the US. Page 13 Technology: Gravity-based energy storage: a weighty prospect An energy storage system that will utilise disused mine shafts to store energy using a similar principle to pumped storage is gearing up to enter the demonstration phase. Page 15 Advertise advertising@teitimes.com Subscribe subscriptions@teitimes.com or call +44 208 523 2573 Final Word One size doesn’t fit all when it comes to adopting new business models, says Junior Isles. Page 16 Sustainable Development Goals driven by gains in renewables Adnan Z. Amin: renewables “expanding energy access” An increasing number of the world’s population is gaining access to electricity, partly driven by renewables. However, there is still a need for greater ambition in harnessing renewables to meet sustainable development and climate goals. Junior Isles The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, but real progress is being made in areas such as renewable energy, says a new report from five international agencies. The report – which is the most comprehensive look available at the world’s progress towards the global energy targets on access to electricity, clean cooking, renewable energy and energy efficiency – finds that while global trends are disappointing, recent national experiences around the world offer encouraging signs. ‘Tracking SDG7: The Energy Progress Report’ is a joint effort of the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO). The report’s findings are based on official national-level data and measure global progress up to 2015 for renewable energy and energy efficiency, and 2016 for access to electricity and clean cooking. According to the report, 1 billion people – 13 per cent of the world’s population – still live without electricity. Sub-Saharan Africa, and Central and South Asia continue to be the areas of the world with the largest access deficits. Almost 87 per cent of the world’s people without electricity live in rural areas. The number of people gaining access to power has been accelerating since 2010, but needs to ramp up further to achieve universal access to electricity by 2030. If current trends continue, an estimated 674 million people will still live without electricity in 2030, the report says. Solar has played an important role in improving access to electricity, with “tens of millions of people” now having access to electricity through solar home systems or connecting to minigrids. Rapidly falling costs have allowed solar and wind to compete with conventional power generation sources in many regions, driving the growth in the share of renewables in electricity Continued on Page 2 Emissions reduction supported by carbon pricing initiatives A new report launched by the World Bank shows that carbon pricing continues to gain traction as governments at national and subnational levels around the world continue to prepare for, and implement, initiatives as a means to curb their emissions while raising revenues. The annual ‘State and Trends of Carbon Pricing 2018’ report shows that 70 jurisdictions (45 national and 25 sub-national) have implemented, or are scheduled to implement, carbon pricing initiatives. These mechanisms helped governments raise about $33 billion in 2017 in carbon pricing revenues from allowance auctions, direct payments to meet compliance obligations, and carbon tax receipts. This represents a 50 per cent increase compared to the US$22 billion raised in 2016. The report also finds that carbon prices are rising, with about half of emissions now covered by carbon pricing initiatives priced at over $10/tCO2e, compared to one-quarter of emissions covered in 2017. According to the World Bank, 2017 was “a very good year” for carbon pricing, noting that there are now 51 carbon pricing initiatives either implemented or scheduled to be implemented. This is roughly a 10 per cent increase on the previous year. The Bank noted that once the Chinese emissions trading scheme (ETS) – which was officially launched in December – becomes operational, these initiatives will cover 11 gigatons of carbon dioxide equivalent (GtCO2e), or about 20 per cent of global greenhouse gas emissions. This is up from 15 per cent the previous year. “Governments at all levels are starting to see the effectiveness of carbon pricing in their efforts to cut harmful carbon pollution while also raising revenues for climate and other policies, including environmental action,” said John Roome, World Bank Senior Director for Climate Change. “As countries take stock of their Paris Agreement commitments and set a path towards increased ambition, carbon pricing mechanisms with robust pricing levels are proving to be essential elements of the toolkit.” He warned, however, that although 50 per cent of trading schemes are now operating at above $10/t CO2 (25 per cent more than a year ago), there is still a long way to go. Experts recommend a range of $40-80/t in 2020 and $50-100 by 2030. “Although we have seen significant movement this year, it’s still short of where prices need to be, so we have to see some further increase,” said Roome. To get prices up, he says allocations could be tightened, as is being implemented in the EU, for example. He noted, however, that there are concerns among some in the industry over whether higher carbon prices will affect competitiveness.“We have formed a forum looking at carbon pricing and competitiveness… it’s very important to have clear communication on this and raise prices gradually,” he said. In late April, the London School of Economics found that all 197 countries, which signed the landmark Paris Agreement now have at least one law in place to fight climate change. The new research is a ‘snapshot’ into global trends on climate legislation and shows the significant uptake in new laws and rules over the past 20 years. According to the researchers, there are now more than 1500 climate laws and policies in place around the world. Of these, 106 were introduced since the Paris Agreement was signed in December 2015. THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: enquiries@teitimes.com
Energy Industry Times June 2018
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