This week, the energy world is discussing the enhancement of competition among carmakers in the electric car segment and the Asia-Pacific wind power breakthrough. Read our weekly Ukrenergo Review and keep up to date with the latest global energy news.
1. Spanish energy group Iberdrola to invest 11.5 billion euros in RES development.
According to Enerdata, Spanish energy group Iberdrola published an updated energy strategy for 2018-2022 providing for the total investments of 32 billion euros.
As established by the plan for 2018-2022, the company will focus on five main areas:
- increase in regulated tariffs for distribution networks;
- construction of new facilities;
- increase in the volume of electricity generation;
- achievement of economic efficiency and consolidation with Neoenergia’s subsidiary in Latin America.
Iberdrola also plans to actively develop renewable energy sources in all regions of its operation. It will direct 86% of its investments in construction of up to 10 GW of “green” facilities. It should be noted that this company is the world’s leader in the field of wind energy. It has already built offshore wind farms with a capacity of 2.5 GW. Another 7.7 GW are under construction.
Iberdrola is a holding company involved in the generation, distribution, trade and marketing of electricity around the world. This is the largest energy group in Spain in terms of market capitalisation.
During the next four years, the company’s investment portfolio will reach 32 billion euros, of which 50% will be directed for the development of power grids, 37% (11.5 billion euros) for renewable energy sources, 9% (2.8 billion euros) for electricity generation and retail sales and 4% (1.4 billion euros) for the development of the energy supply company of Iberdrola in Mexico.
2. Asia-Pacific offshore wind power to rise 20-fold over 10 years.
Wood Mackenzie is a leading research and consulting company on global energy, chemical, metallurgy and mining industries. Wood Mackenzie provides objective analysis and advice on assets, companies and markets for global natural resources. The company’s new report states that the use of wind power in the Asia-Pacific region will increase 20 times by 2027 and reach 43 GW.
According to analysts, China will hold the first place. It is expected that offshore wind power capacity will increase there from 2 GW in 2017 to 31 GW within the next decade.
The second place will be taken by Taiwan, where the capacity of offshore wind farms will increase by 20% (to 8.7 GW) by 2027. Today, the country’s economy is dependent on coal, gas and nuclear energy. However, the state authorities plan to shut down up to 5 GW of nuclear power plants by 2025. It is expected that they will be replaced by offshore wind facilities since more than 5.7 GW of the projects have already been approved and are scheduled to be put into operation by 2025.
Together with South Korea and Japan, East Asia needs about $ 37 billion of investments to ensure the offshore wind power growth over the next five years.
According to forecasts, prices for using offshore wind power will be able to compete with the prices from thermal generation electricity by 2025.
Despite the enormous potential of offshore winds in the Asia-Pacific region, the main problems are related to the outdated technology and the corresponding constraints on the regional use of wind power.
The introduction of new technologies will take some time because this process requires new research and development studies. In addition, in order to support the ambitious development of RES, a reliable supply chain needs to be developed.
This will require that regional governments fulfil their significant commitments to maintain and invest in the increased use of offshore winds.
3. Janez Kopač: “The Energy Community has to take part in the momentum towards building the energy sectors of the future”.
The Energy Community Secretariat issued an annual report on 31 October 2018, as was mentioned at the Energy Community’s website.
The Annual Report covers the period from September 2017 to September 2018 and contains special sections on electricity, renewable energy sources, infrastructure, national regulatory authorities, gas, oil, energy efficiency, environment, climate, competition, statistics, etc.
The report emphasises that Energy Community members have succeeded in reforming the energy sector, while further efforts are needed. This is especially important in the course of the transition to “clean” energy economy. The report was updated to show which steps had already been taken and which ones remain to be completed. The report concludes that the average score for implementing projects is about 43%.
Director of the Energy Community Secretariat Janez Kopač emphasised that the Energy Community had to take part in the momentum towards building the energy sectors of the future marked by decarbonisation, decentralisation and digitalisation.
4. General Motors supports National Zero Emission Vehicle (NZEV) Programme in the United States
General Motors, the largest carmaker in the United States, supports a nationwide programme until 2030, which provides for 25% of electric vehicles in the structure of all new cars in the country. This was reported by media.gm.
General Motors (GM) proposed to consider the draft National Plan for the transition of the United States to a zero-emission environmentally-friendly transportation system to support the decision of 50 states and promote the successful development of the respective American industry and the preservation of the US industrial leadership for many years. The US government is proposing to extend the subsidy programme for the purchase and loans for electric transport development.
The main objective of the programme is to increase sales of new electric vehicles: by 2021 – by 7%, by 2025 – by 15%, by 2030 – by 25%. The average annual growth rate of the market for electric vehicles is expected at the level of 2%.
The second most important goal is to reduce the cost of electric car batteries from the current $ 200 to $ 70 per kWh.
According to the programme, it is expected that more than 7 million electric vehicles will be on the road by 2030, resulting in a reduction in the volume of 375 million tons of CO2 emissions between 2021 and 2030.
However, China plans to increase its share of electric vehicles to 12% already in 2020, or four years earlier than GM plans this goal in the United States.
5. Solar panels on 1.2% of the territory of the Sahara Desert will be able to supply the whole world with energy
A new study from Roof Stores says that 1.2% of the Sahara Desert covered with solar panels will be able to provide the whole world with energy. This was reported by EnergyLiveNews.
Ensuring the world’s demand for electricity only at the expense of solar energy will cost $ 5 trillion (£ 3.9 trillion). This is the amount the American society spends on fast food every 13 years.
A new study from Roof Stores suggests that the Sahara Desert region perfectly suits for energy generation from solar radiation not only because of its territory but also because it is not harmful to nature.
The study shows that the photovoltaic panels, which will cover an area of 43,000 square miles of desert, will account for only 1.2% of the entire desert area and will be able to generate 17.4 TW of renewable energy that will meet the world demand. This is equivalent to the total expenditure of the world on the three-year maintenance of their military services.