We offer you five short, like this year’s summer, but extremely interesting news. The world is steadily moving towards the “green” energy.Our western colleagues pay more and more attention to environmental issues. We closely follow the world of energy trends and focus on them while doing our job.
1. California undertakes to switch to 100% of RES by 2045. California Assembly approved a bill that obliges the state to abandon fossil fuels by 2045. At the same time, by 2030, all energy companies should produce 60% of electricity from RES. After the document has been approved by the lower house, it is to be passed by the Senate. The bill has been a subject of discussion for two years. This was reported by The Los Angeles Times.
The politicians who supported the bill say that the country should make more efforts to reduce greenhouse gas emissions. According to a new state report, California will have to deal with higher temperatures, more powerful wildfires and sea-level rise in the coming years due to climate change.
Opponents of the bill believe that the abandonment of fossil fuels will lead to a sharp increase in electricity prices.
Following the adoption of this bill, California will become the second US state to declare a full transition to renewable energy sources. Hawaii was the first state to do this.
2. The surging costs of carbon permits prompts the EU to reduce its coal assets. Large European utilities stopped purchasing electricity for future periods due to the huge increase in the prices for carbon permits traded under the world’s largest emissions trading mechanism, the EU Emissions Trading System (EU ETS). This was reported by Reuters.
Since January 2018, after a rise in energy prices and reduced supplies, the price of carbon permits has increased more than three times: from € 6 to € 21 per ton. The experts surveyed by the agency believe that prices will keep rising. This, in turn, will result in inefficient coal assets being gradually withdrawn from the market.
Such tendencies force market participants to hedge the risks associated with the need to buy carbon permits. To do this, they buy the permits at the lowest prices and resell them when the price on the market is increasing. One of such companies is German RWE, which increased fuel sales and started to purchase carbon permits. Another large German supplier Uniper said that the following year it planned to sell all electricity to be produced at its hydroelectric power plants.
Analyst Hanns Koenig believes that a significant rise in carbon prices could produce additional costs of € 2.3 billion. According to Columbus Consulting analyst Nicolas Goldberg, expensive carbon permits are very beneficial for the companies generating large volumes of electricity at nuclear and hydroelectric power plants, such as, for example, French EDF operating 59 nuclear power plants.
At the same time, experts believe that the cost of carbon permits at the level of € 20-30 per ton should encourage market participants to switch to lower carbon fuels.
3. ENTSO-E started a public discussion of the draft 10-year network development plan. On 3 August 2018, ENTSO-E presented the next version of its Ten Year Network Development Plan (TYNDP 2018) for the public consultation. The discussion will continue until 21 September 2018. This was reported on the official website of the organisation.
The plan includes about 180 projects for the development of network infrastructure and energy saving technologies up to 2030 with a total investment of around € 115 billion. Each project is estimated from the point of view of the impact on electricity markets, energy security and the environment. As one of the main incentives for strengthening the networks, as well as in the previous versions of TYNDP, the plans focuses on the integration of RES generation.
Moreover, the paper presents the forecasts regarding the development of power systems of the EU countries and their mutual relations for the periods up to 2025, 2030 and 2040. The Executive Report and the information materials on TYNDP 2018 are available on the official website.
4. Sales of electric cars in Europe increased almost 1.5 times. In the first half of 2018, the sales of electric vehicles in Europe increased by 49%. This is reported by EV-Volume.
In real terms, 195 thousand electric cars were sold, or 2% of the total number of sales of cars. This includes both “clean” electric vehicles (BEVs) and hybrid (PHEVs), also equipped with a gasoline or diesel engine. At the same time, the “clean” cars account for 51%, while hybrids take 49% of the market.
The most dynamic market of electric vehicles is Germany. During six months, their sales grew by 52%. Norway is still Europe’s largest market for plug-ins, with a staggering share of 37% in this year’s light vehicle sales.
In total, the number of electric cars in Europe has already exceeded 1 million. It is expected that their number will increase by about 350 thousand by the end of the year.
5. Global cities to make all buildings carbon-neutral by 2050. 19 mayors representing 130 million urban citizens signed the Net Zero Carbon Buildings Declaration. The document assumes that all new buildings in these cities will become carbon-neutral by 2030 (and all buildings, old and new, will become “net-zero carbon” by 2050). This is reported by C40Cities.
The Declaration was signed by the mayors of Copenhagen, Johannesburg, London, Los Angeles, Montreal, New York City, Newburyport, Paris, Portland, San Francisco, San Jose, Santa Monica, Stockholm, Sydney, Tokyo, Toronto, Tshwane, Vancouver and Washington D.C.
In general, the emissions from buildings account for about half of carbon emissions in such big cities. At the same time, buildings is London, Los Angeles and Paris cover more than 70% of carbon emissions.