In today’s issue of Ukrenergo Review, you can read about the world trends in the development of renewable energy and other non-carbon technologies, international investments in combating climate change,the development of electric vehicles in the United States and other interesting news from the world of energy.
1.The World Bank to invest USD 200 billion in combating climate change.
The World Bank will allocate USD 200 billion in 2021-2025 to overcome the adverse effects of climate change. As reported by Spacedaily, this was announced at the 24th UN Climate Conference (COP-24) in Katowice. This amount is twice as large as the total amount of funding over the past five years.
USD 100 billion of the declared USD 200 billion were allocated as direct investments from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The other USD 100 billion were allocated as the aggregate of direct investments from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) and private funds mobilised by the World Bank Group.
Developed countries are seeking to increase total annual public and private expenditures to USD 100 billion by 2020 to overcome the impact of climate change in developing countries. According to the Organisation for Economic Cooperation and Development (OECD), the amount of USD 48.5 billion was invested in combating climate change in 2016, while in 2017 this figure reached USD 56.7 billion.
John Roome, the World Bank Senior Director for Climate Change, noticed that starting from July 2017 to June 2018, the World Bank invested USD 20.5 billion in climate change, while in 2014-2018, the annual average levels reached only USD 13.5 billion. The funds currently being invested in the area of climate change account for about 35% of the total funding of the World Bank Group.
A significant part of the funding for climate measures is aimed at reducing greenhouse gas emissions through the implementation of renewable energy strategies and programmes.
2.Developing countries have become leaders in the implementation of carbon-free technologies.
In 2017, a large proportion of new carbon-free generation capacities came from emerging countries. The reason for this was a rapid decline in technology costs. This is stated in a report by Bloomberg New Energy Finance (BNEF) Climatescope Emerging Market Outlook 2018.
In 2017, the total installed capacity of new carbon-free generating units (nuclear, hydro, etc.) in developing countries reached 114 GW, while there are only 63 GW in developed countries.
In addition, in 2017, developing countries created 186 GW of RES capacity. At the same time, solar and wind power generation alone accounted for 94 GW.
The growth rates of RES capacity in the same year in this group of countries are also much more dynamic comparing with those in developed countries (20.4% and 0.4% respectively).
According to BNEF estimates for many developing countries, the price level for solar and wind power generation is about USD 50 per kWh, which is lower than the cost of electricity generated from traditional sources.
Such trends will encourage the situation when the construction of new solar and wind power plants are cheaper than the construction or operation of fossil fuel power plants.
At the same time, foreign direct investments in clean energy rose to record highs. In 2017, they increased up to USD 21.4 billion comparing with USD 13.9 billion in 2016. The European Union was the largest investor with USD 9.6 billion. The U.S. invested USD 5.1 billion, while Asian countries allocated USD 4.8 billion.
3.Use of satellite technology to optimise the power grid.
The European Space Agency (ESA), the European Network of Transmission System Operators for Electricity ENTSO-E and the European Distribution System Operators Association (EDSO) have launched a joint ESA Business Applications programme with the purpose of developing applications for the collection and processing of information from satellites, which will help manage the European power system. This was reported at the ENTSO-E website.
The programme supports the development of new information services for European power operators and a wide range of communities.
Satellite applications can support power networks in many areas, including: asset management; two‐way communication between smart meters and grid operators; prediction of consumption or generation peaks; developing Internet of Things services for smart homes and electric vehicles; and the use of virtual power plants.
“This cooperation will identify business cases where both sectors can support each other and deliver benefits for the European consumer. A key example is to ensure secure and reliable data exchange between European TSOs in case of failure of other communication channels, like in the event of cybersecurity incidents,” said ENTSO-E Secretary General Laurent Schmitt.
Roberto Zangrandi, Secretary General of EDSO, added that the future of grids would be based on the development of technologies and applications enabling the integration of renewable energy and active consumers in the grid for efficient power management. He noted that the collaboration with ESA for innovation within a series of DSO defined topics would enable electric industry development of new models and tools that improve the design, operation and maintenance of grids.
4.More than 18 million electric vehicles on the U.S. roads in 2030.
In less than three years, namely in the beginning of 2021, the number of electric cars in the United States may increase by one million. By 2030, this number will already exceed 18 million. This accounts for about 7% of 259 million cars (including light trucks) expected to drive on American roads in 2030.
Such a forecast was presented in the report “Electric Vehicle Sales Forecast and the Charging Infrastructure Required Through 2030”, prepared by the Edison Electric Institute (EEI) and the Institute for Electric Innovation (IEI).
The document states that today there are more than 1 million electric vehicles on the U.S. roads. Researchers believe that electric transport is a win-win option and meets the needs of customers, provides environmental benefits and supports America’s energy security.
Moreover, the report predicts that in 2030, the annual sales of electric vehicles in the U.S. will reach 3.5 million units, accounting for 20% of the total annual sales. To charge 18.7 million electric cars in 2030, about 9.6 million charging stations will be needed. In turn, this requires significant investments in infrastructure.
American electric companies are already developing the infrastructure that could serve 18 million electric cars in the future. Thus, EEI has invested more than USD 1 billion in programmes and projects to deploy infrastructure of charging stations and accelerate the development of electric transport.
5.Crete to be connected to the mainland through an underground cable line.
The Greek island of Crete will be connected with the mainland of the country in the city of Peloponnese by a cable transmission line of 135 km in length. This was reported by energetika-net. This is the first electrical connection between Crete and the mainland.
To implement this project, the Greek transmission system operator Anexartitos Diacheiristis Metaforas Ilektrikis Energeias (ADMIE) concluded a contract with the Italian transnational corporation Prysmian. The amount of the transaction is USD 141 million. The commissioning of the line is scheduled for 2020.
In addition, ADMIE concluded an agreement with the French cable manufacturer Nexans for USD 125 million within the framework of the project on connecting the Cyclades Islands and the city of Lavrion on the mainland of Greece. The project will include designing, manufacturing, and installation of equipment for 150 kV underwater cable line with the length of 108 km.
The aim of the projects is to shut down power generation from fuel oil and diesel plants on the Greek islands.