Low natural gas and electricity prices have created a tough competitive environment for renewable energy, but this has remarkably had little impact on the momentum of alternative energy growth, finds a new Deloitte report entitled, “Alternative Thinking 2016: Five game-changers that are powering the future of renewable energy.”
The report identifies the important trends and opportunities in the renewable energy industry. It also presents “what if” scenarios that may propel the renewable power sector forward, outpacing current projections. Alternative energy is at a tipping point, the growth we have seen over the past few years is now ready to be propelled forward as a result of these game-changers.
According to the report, the convergence of forces driving renewable energy forward has created a momentum that is likely irreversible for the industry. These five game-changers include:
Regulatory reform and public policy support: Far-reaching regulations at global, national and local levels are driving increased adoption of renewable energy. This includes the 2015 United Nations Climate Change Conference as well as adoption of state and provincial regulations to protect the environment.
Corporate commitment: A significant number of large global companies have launched a movement to generate all of their energy from renewables in the next two decades. In the U.S. alone, 58 leading multinational corporations have signed on to the Renewable Energy Buyers’ Principles1, an initiative that aims to make renewable energy easier for companies to procure at a large scale.
Financing innovation: Investors now understand renewables as an asset class and are more confident in investing in them, while new financing vehicles have lowered the cost of capital and improved access to it. Giving companies the opportunity to reduce their tax burdens bolsters the trend of corporations investing in renewables by making the overall financial proposition even more attractive.
Energy storage: Energy storage technology is advancing and making renewable energy more viable by eliminating the issue of intermittency.
Grid integration: Once the nemesis of utilities, a host of new technologies are quickly making integration of intermittent power sources into the electricity grid a problem of the past. With the capability to manage electricity flows in different directions, the system operators have the ability to manage production and supply in real-time.
Though the traditional barriers of cost, intermittency, and grid integration are still present, they are not seen as deal-breakers in the long run, according to the report.
“Growing pains are inevitable, but they are surmountable for renewable energy,” Allen added. ”First-movers such as Denmark, Germany, China, the UK, the US and Spain have addressed them, and the results of recent regulatory initiatives suggest that many other nations now believe it is necessary to do so. This indicates that perhaps alternative energy has not just entered the mainstream, but is quickly becoming the norm itself.”
West Karoun: fields with promise for Iran’s oil industry
In the last few years, especially after the implementation of the nuclear deal (known as the Joint Comprehensive Plan of Actions or JCPOA), Iran’s oil industry has been strongly focused on developing joint oil and gas fields, aiming to increase the seven-percent share of such fields in the country’s oil production.
In this regard, West Karoun oilfields which Iran shares with Iraq at the western part of Iran’s southwestern region of Karoun, have been prioritized among the country’s top development projects.
After the implementation of JCPOA in January 2016, Iranian oil industry once again broke free from the shackles of pressure which held it back from its full potential since January 2012, in which the EU agreed to an oil embargo on the country.
Immediately after the removal of the sanctions, Iranian government put it on the short term agenda to hastily increase its oil production to reclaim its oil market share lost to the fellow OPEC members due to the restrictions imposed by the West.
In doing so, plans were made for continuous increase in the country’s oil output and also development of new fields.
Following the new policies for attracting foreign investors to develop the country’s fields, in 2016, Iran introduced the Iran Petroleum Contract (IPC), which replaced the old buyback model.
Shortly after, National Iranian Oil Company (NIOC) announced that the company is in serious talks with potential foreign suitors in order to hold tenders to hand out the development projects mostly for shared fields.
According to the oil ministry’s planning, West Karoun region which includes five major fields namely North Azadegan, South Azadegan, North Yaran, South Yaran and Yadavaran, was introduced as the main candidate for the new IPC tenders.
According to the managing director of Petroleum Engineering and Development Company (PEDEC), the oil ministry targeted an output of 700,000 barrels per day (bpd) for this region, by the end of the Iranian calendar year of 1397 (March 2019).
However, the initial enthusiasm did not lead to any entrust and since mid-2016 which IPC was introduced, still no tender has been held.
Although NIOC have repeatedly said in 2017 that international energy companies including France’s Total, Malaysia’s Petronas and Japan’s Inpex are eager for the development of the Azadegan field, the tender has been postponed several times for unspecified reasons.
West Karoun holds great importance for the country’s oil industry since according to the latest studies, its in-situ deposit is estimated to be 67 billion barrels containing both light and heavy crude oils, and therefore it could have a big impact on Iran’s oil output increases in the future.
With the fields fully operational, their output could add 1.2 million bpd to the country’s oil production capacity.
The complete development of the West Karun oilfields will require about $25 billion of investment, of which only about $7 billion has been funded and spent in implementation and development plans so far.
Considering the fact that West Karoun fields are still young, pristine and untapped reservoirs (also called green fields), the government should increase the efforts to attract the necessary investment for developing these fields.
Since most of the country’s already active fields are old and obviously with aging, the recovery factor decreases resulting in a lower production rate, increasing production level requires either new technologies to keep the recovery factor from falling or new fields coming on stream.
So, again considering the issues regarding banking relations, entering new technologies would be rather a challenge for the oil ministry, thus as it is already prioritized, young and untapped oilfields should be given extra attention in the ministry’s future planning to increase oil output.
Having an estimated 67 billion barrels of in-situ oil, West Karoun fields definitely deserve the spotlight which has been put on them recently.
Hopefully, in the new Iranian fiscal (which starts on March 21), the tender for development of the Azadegan oilfield, which is the first of its kind, won’t get postponed any further and the 10 IPC deals which were promised by the oil minister to be signed by March 2018 will go through by the yearend.
First published in our partner Tehran Times
Australia’s commitment to affordable, secure and clean energy
Australia should rely on long-term policy and energy market responses to strengthen energy security, foster competition, and make the power sector more resilient, according to the International Energy Agency’s latest review of the country’s energy policies.
In line with global trends, Australia’s energy system is undergoing a profound transformation, putting its energy markets under pressure. Concerns about affordable and secure energy supplies have grown in recent years, following several power outages, a tightening gas market in the east coast and rising energy prices.
Besides assessing progress since the IEA review of 2012, the Australian government requested the IEA to focus on how Australia can use global best practices in transitioning to a lower-carbon energy system. This question points to safeguarding electricity supply when ageing coal capacity retires, increased variable renewable energy comes on line and natural gas markets are tight. In this context, the IEA also contributed to the Independent Review into the Future Security of the National Electricity Market (NEM) by Chief Scientist Dr Alan Finkel.
“The government’s efforts to ensure energy security and move ahead with market reforms have been impressive. Australia can develop its vast renewable resources and remain a cornerstone of global energy markets as a leading supplier of coal, uranium and liquefied natural gas (LNG), securing the energy for growing Asian markets.” said Dr Fatih Birol, the IEA’s Executive Director, who presented the report’s findings in Canberra. “A comprehensive national energy and climate strategy is needed for Australia to have a cleaner and more secure energy future. The National Energy Guarantee is a promising opportunity for Australia to integrate climate and energy policy.”
Along with the United States, Australia is leading the next wave of growth in liquefied natural gas (LNG). As a major exporter of coal, Australia is also a strong supporter of carbon capture, utilization and storage technologies. The report commends Australia’s efforts which can be critical globally to meeting long-term climate goals.
The IEA’s review points out that the sustainable development of new gas resources is critical for natural gas to play a growing role in the energy transition, satisfying a growing domestic gas demand in power generation and industry and to honor export contracts at the same time. The report calls on Australia to continue efforts to improve transparency of gas pricing, boost market integration and facilitate access to transportation capacity.
Welcoming the government’s energy security focus, including the creation of the Energy Security Board, the Energy Security Office, and Australia’s plan to return to compliance with the IEA’s emergency stock holding obligations, the IEA recommends regular and comprehensive energy security assessments to identify risks early on, and foster the resilience of the energy sector.
In terms of power system security, the report offers a series of recommendations on how to improve the market design of the National Energy Market (NEM), one of the most liberalised and flexible power markets in the world. To accommodate higher shares of variable renewables, the IEA recommends that the NEM prioritises measures to safeguard system stability, enhance grid infrastructure, including interconnections, and regularly upgrade technical standards. As consumer choice and prices in retail markets are liberalised across Australia, the government needs to focus on wholesale competition and demand-side flexibility, in recognition of the changing ways energy is produced and consumed, thus contributing to reducing peak demand.
5 myths about solar panels, debunked
Home solar panels can drastically cut or even eliminate electricity bills, reduce a home’s carbon footprint, increase resale value, and may even help a home sell faster.
The cost of rooftop solar systems has fallen dramatically in recent years, and most homeowners have the option of buying the system, leasing it on reasonable payment terms, or having a third-party pay for and install the system at no up-front cost at all for the homeowner. Plus, home solar systems are eligible for federal tax credits.
All of this explains why the number of homeowners installing solar has sky-rocketed across America. Nevertheless, many homeowners remain skeptical about taking control of their energy use and installing solar. Why? The various myths that still persist around solar power could be the reason.
“Solar technology has been around for a long time, but even though it’s entered the mainstream, many homeowners are still skeptical,” says renewable energy expert Roger Ballentine, president of Green Strategies, a leading Washington-based consulting firm. “That’s because a number of myths persist, pointing to the need for better consumer education about the benefits of home solar installations.”
Ballentine points to private and government studies providing real information that debunks the myths surrounding solar power. For example, research by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) and the Lawrence Berkeley National Laboratory found solar panels help homes sell faster and for more money than those without solar.
If you’re considering installing a solar panel system on your home, here are five common myths — and why you shouldn’t believe them:
Myth 1: Solar panels only work if you live in a warm, sunny climate
While solar panels work best when they get a lot of sun, a lack of bright sun doesn’t mean they’re not working. Panels can still absorb ambient sunlight, even on cloudy days or in regions that get less bright sun. What’s more, today’s solar panels are more energy efficient than ever. Newer systems like the “LG NeOn R” maximize sunlight absorption and generate the maximum possible output — as much as 26 percent more than other comparably sized solar panels. This higher efficiency means that solar panels can work in virtually any climate and every season.
Myth 2: You need a lot of roof space for solar panels
Just like other amazing technologies (think microchips), solar panels are getting smaller, more powerful and more efficient. High-efficiency panels take up less space because fewer panels are required to produce the electricity needed to power your home. So even a smaller home could have enough roof space to fit the number of panels needed to generate the necessary power and save you money.
Myth 3: Installation is a long, drawn-out hassle
While adding solar panels to your home isn’t a DIY project, installation usually takes only a day or two. New models streamline the process further, eliminating the need to install a separate inverter. Most solar panels require a separate inverter to bring electricity into your house, but new panels from LG, for instance, incorporate the inverter, simplifying and accelerating the installation process.
Myth 4: If something goes wrong, you’re on your own
As with any major investment in your home, you should make sure you understand the manufacturer and installer warranties for your solar panels, including how long the coverage lasts and what types of problems are covered. One leading solar player, LG, even offers an industry-leading, 25-year product and power warranty. And unlike a furnace or an air conditioning system, a solar installation has no moving parts to wear out and typically requires little maintenance and repair.
Myth 5: Solar panels will look big, bulky and ugly on your roof
Solar panels are becoming smaller, sleeker and more aesthetically pleasing. Higher-efficiency models are also offering increased flexibility of configuration. Instead of having to cover an entire roof with panels in a specific arrangement in order to generate power, modern options allow you to arrange panels to meet your sense of aesthetics.
Adding solar power to a home offers homeowners many benefits, from reducing energy costs, to increasing the value of your home and helping the environment, Ballentine says. “Overall, it’s a decision most homeowners feel positively about once they’ve made it.” The NREL notes in its study: “Buyers of homes with (solar panel) systems are more satisfied than are comparison buyers. A significantly higher percentage … indicate they would buy the same houses again.”
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