Connect with us

Energy News

EU invests a further €800 million in priority energy infrastructure

Newsroom

Published

on

EU Member States voted on a Commission proposal to invest almost €800 million in key European energy infrastructure projects with major cross-border benefits. The EU funding comes from the Connecting Europe Facility (CEF), the European support programme for trans-European infrastructure.

Priority is given to projects that increase competitiveness, enhance the EU’s security of energy supply through the promotion of safe, secure and efficient network operation, and contribute to sustainable development and environmental protection. Creating a connected, modern energy grid represents a crucial element of the Energy Union, one of the political priorities of the Juncker Commission.

Commission Vice-President in charge of the Energy Union, Maroš Šefčovič affirmed:“CEF is one of those instruments that prove the EU’s added value. Today’s approved list showcases that Energy Union is an efficient tool to modernise and green our economies, to make them future proof in line with climate and environmental goals.”

Commissioner for Climate Action and Energy, Miguel Arias Cañete said: “As a crucial element of our overall energy and climate strategy, we need to ensure that our energy infrastructure is sustainable, goal-oriented, and operational. With almost two thirds of today’s investment decision devoted to electricity, we are delivering on our promise to align EU funding with our political ambition to deliver the clean energy transition. We continue to invest in the right energy infrastructure projects which are essential to the EU’s clean energy transition and security of supply. I am particularly pleased by the support given to the Baltic electricity synchronisation project, which will help materialise the Baltic States’ ambition to integrate their electricity system with continental Europe and improve security of supply in the Baltic region.”

Today’s vote concerns CEF financial aid for studies and works for a total of 14 projects: 7 for electricity, 2 for smart grids, 2 for CO2 cross-border transportation and 3 for gas. The proposed CEF-Energy funding amounts to almost €800 million, with electricity and smart grids accounting for €504 million, €9.3 million to support studies on the development of a CO2 transport infrastructure; and €286 allocated to the gas sector. This current call for proposals (2018-2) was launched in June and closed on October 11th 2018.

In the electricity sector, a €323 million grant is awarded to the Baltic electricity synchronisation project. The Baltic States remain synchronously connected to the central dispatch facility of Russia, hindering their full integration into EU electricity markets. The project aims to increase the security of supply and reliability of the power systems in the region through their synchronous connection to the Continental European Network (CEN). In June of 2018, EU leaders agreed the political roadmap for completing the synchronisation.

On smart grids, support has been approved for the ACON SG project tomodernize and improve the power grid between Czechia and the Slovak Republic. The €91 million grant will now contribute to the setting up of smart grids in the border region.

Moreover, €6.5 million in funding will be allocated to a study on the development of a CO2 infrastructure in the Port of Rotterdam. The objective is to establish an open access, cross-border, carbon dioxide network in North-West Europe, with its core located in the Port of Rotterdam.

Finally, in the gas sector, the CEF will support, with nearly €215 million, the Baltic Pipe project, a new, bi-directional offshore gas interconnection between Poland and Denmark. This pipeline will be crucial for security of supply and market integration of the region.

Background

The CEF envisages a total budget of €5.35 billion for trans-European energy infrastructure for the period 2014-2020. In order to be eligible for a grant, a proposal has to be ‘a project of common interest’ (PCI). When completed, the projects will each result in significant benefits for at least two Member States, enhance security of supply, contribute to market integration, and enhance competition, as well as reduce CO2 emissions. The Union-wide list of Projects of Common Interest is updated every two years. The latest PCI list was published by the Commission in November 2017. The CEF-Energy already granted €647 million to 34 projects in 2014, €366 million to 35 projects in 2015, €707 million to 27 projects in 2016, and €873 million to 17 projects in 2017.

Continue Reading
Comments

Energy News

ADB, Gulf PD Sign Deal to Build 2,500 MW Power Plant in Thailand

Newsroom

Published

on

The Asian Development Bank (ADB) and Gulf PD Company Limited (Gulf PD) today signed a $180 million agreement to build and operate a 2,500-megawatt (MW) combined cycle gas turbine power plant in the Rojana Rayong 2 Industrial Park of Thailand’s Rayong Province, about 150 kilometers southeast of Bangkok.

Gulf PD is owned by Independent Power Development, a joint venture between Gulf Energy Development Public Company Limited (GED) and Mitsui & Co., Ltd. (Mitsui).

ADB’s support is composed of a regular loan of $50 million and a B loan of up to $85 million. ADB will also mobilize $45 million through the Leading Asia’s Private Infrastructure Fund (LEAP), established in 2016 and supported by the Japan International Cooperation Agency. ADB signed the loan agreement with its cofinanciers—the Japan Bank for International Cooperation and 12 other international and local commercial banks—playing an anchor lender role in the project by catalyzing up to $764 million in commercial cofinancing. The B loan will be funded by Singapore’s Oversea-Chinese Banking Corporation and Germany’s DZ Bank.

The agreement for the Eastern Economic Corridor Independent Power Project was signed by ADB Deputy Director General for Private Sector Operations Mr. Christopher Thieme and the CEO of GED Mr. Sarath Ratanavadi at a ceremony in Bangkok.

“The project will build the fourth-largest power plant and one of the largest combined cycle gas turbine power plants in Thailand, which will be key in the Eastern Economic Corridor (EEC) development plan, considered as the prime economic growth driver for the country until 2028,” said Mr. Thieme. “ADB is proud to play an essential role in this transaction, which will help provide reliable power to industry and households and boost Thailand’s economic growth and development prospects. We are particularly pleased to bring in additional cofinanciers to this transaction through our B loan program and LEAP, since the financing gap will be one of the major challenges for the success of the EEC development plan.”

The plant will be fully operational by 2024, delivering at least 16,000 gigawatt-hours of electricity to users. With the state-of-the-art combined-cycle gas turbine technology to be used at the plant, the project will mean 1 million fewer tons of carbon dioxide is emitted every year compared with current electricity grid emissions. The plant will be integral to sustaining Thailand’s energy security given that more than 8,500 MW of generating capacity—equivalent to about 20% of current national energy capacity—of aging power plants will be retired between 2020 and 2025.

Gulf PD was established in 2012 to develop, construct, own, and operate the 2,500 MW power plant. GED is a leading power generation company with the largest portfolio of contracted power purchase agreements in Thailand. Mitsui, established in 1947, is one of Japan’s largest trading companies involved in the development of more than 74 power projects globally.

Continue Reading

Energy News

Latin America and Caribbean on the Brink of Massive Solar Power Growth

Newsroom

Published

on

Latin America and the Caribbean could grow their installed solar capacity by a factor of 40 by 2050, a new report by the International Renewable Energy Agency (IRENA) shows. Annual investmens exceeding seven billion would see the region’s solar PV capacity rise from 7 gigawatts (GW) today, to more than 280 GW by mid-century. While solar energy remains the highest in Asia, North America and Europe, market growth is set to shift to other regions in the world.

By that time, solar PV would represent the second-largest power source behind wind, generating a quarter of the world’s power, “Future of Solar Photovoltaic” launched today at “Sun World 2019” in Lima finds. In total, global solar power capacity would rise from 480 GW in 2018 to over 8000 GW by 2050, growing by nearly 9 per cent every year.

“Solar PV and other renewables sources represent the most effective and ready solution for addressing growing energy demand and limiting carbon emission at the same time,” said IRENA’s Director-General Francesco La Camera. “Renewables are practical, affordable and climate-safe. They are key to sustainable development, enabling energy access, spurring economic growth, creating employment and improving health. Particularly solar energy is set to become one of the most prominent power sources in 2050. Projected growth rates in markets like Latin America showcase that we can extend the energy transition to all countries. It’s possible.”

If accompanied by sound policies, the transformation driven by renewables such as solar can bring substantial socioeconomic benefits, IRENA’s new report finds. The global solar industry has the potential to employ over 18 million people by 2050, four times more than the 4.4 million jobs today.

Over the last decade, installed capacity of off-grid solar PV has grown more than tenfold, from roughly 0.25 GW in 2008 to almost 3 GW in 2018 around the world. With its modular and flexible nature, solar PV technology can be adapted to a wide range of off-grid applications and to local conditions. Indeed, off-grid solar PV is a key technology for achieving universal electricity access, in line with the UN Sustainable Development Goals.

Similarly, the deployment of rooftop solar PV systems has increased extensively, which today makes solar PV in some markets more attractive than buying electricity from the grid. The competitiveness of distributed solar power is clearly raising deployment in large markets, including Brazil, China, Germany and Mexico.

Statistical highlights:

Accelerating solar PV can cut energy-related CO2 emissions by 21 per cent in 2050.

With over 50 per cent of installed capacity in 2050, Asia (mostly China) would continue to dominate solar PV power, followed by North America (20%) and Europe (10%). The Latin American market would grow from 7 GW in 2018 to over 280 GW.

Annual solar PV investment would have to increase by 68 per cent on average globally, from USD 114 billion in 2018 to USD 192 billion in 2050.

Global levelised cost of electricity (LCOE) for solar PV will continue to fall from an average of USD 85 cents per kilowatt-hour (kWh) in 2018 to between USD 5-14 cents per kWh by 2050. A recent solar and wind power auction in Colombia was awarded for an average electricity price of USD 27 cents per kWh.

Due to innovations, solar PV remains a fast-evolving industry. Floating PV is one of the most prominent examples with global cumulative installed capacity exceeding 1 GW in 2018. Battery storage and electric vehicles are key solutions to support the grid and manage high shares of solar PV as well as to guarantee the flexibility of the power system.

The full report “Future of Solar Photovoltaic. Deployment, investment, technology, grid integration and socio-economic aspects” can be found here

Continue Reading

Energy News

IRENA Facilitates Investment and Renewable Projects on Ground in Africa

Newsroom

Published

on

Boosting renewable energy projects on the ground requires scaling up investment. IRENA’s state-of-the-art analysis of enabling policy frameworks and finance mechanisms channel public and private investment in markets like Africa, Latin America, Asia, South-East Europe and the Small Island Developing States (SIDS). Now, IRENA is taking its work one step further by increasing the Agency’s on-ground impact with 15 regional and sub-regional platforms which aims at scaling up renewables deployment and investments.

One step in this new direction is the event that took place in Johannesburg as part of the Africa Investment Forum hosted by the African Development Bank. It facilitated renewable energy deal-making in Sub-Saharan Africa in partnership with Power Africa and the African Trade Insurance Agency. The event corresponds to IRENA’s new direction and way forward ensuring an acceleration of the renewable energy transformation globally.

Speaking at the Investment Forum in South Africa, IRENA’s Director-General Francesco La Camera underlined the importance of renewable energy to meet sustainable economic growth and Africa’s climate and development ambitions. “Now more than ever, renewables have become a compelling investment proposition”, said La Camera. “With renewable energy technology prices set to decline, the cost-competitiveness of renewables will strengthen further. IRENA’s analysis shows that nearly a quarter of Africa’s energy needs could be met from indigenous and clean renewable energy sources by 2030. This would result in a wide array of socio-economic benefits in terms of economic growth, welfare, employment and energy access. It’s Possible”.

IRENA has been committed to supporting African governments in their quest for a sustainable energy future. The Agency has supported countries in building attractive investment frameworks for renewables to strengthen institutional and technical capacity. It has also supported the development and financing of renewable energy projects through project facilitation tools. 
“A lot remains to be done to address the key risks and barriers that hinder the scale-up of renewable investment in the region”, La Camera continued. “There is no shortage of renewable energy project proposals which are competing for investor capital. But they are not always financially viable. Many proposals fail to materialize due to high cost of capital, limited access to risk mitigation solutions and long delays in projects”.

By building on its extensive project pipeline in Sub-Saharan Africa with over 90 renewable energy projects, the Agency has showcased 10 renewable energy projects at the Investment Forum. Projects from Cameroon, Cote D’Ivoire, Kenya, Mali, Senegal, Sierra Leone and Togo which have a total capacity ranging from 6 MW to 70 MW – covering technologies like wind, solar, bioenergy and hydropower – were presented.

IRENA’s project facilitation platform provides project owners and developers with increased visibility for their projects among financiers and other market players. Project owners have access to wide range of financial instruments provided by multiple investors from development finance institutions, private companies, utilities, private equity funds, donor and multi-donor facilities, commercial banks and more, as well as access to different services for example legal and financial advisory, environmental, project development and Engineering Procurement and Construction contracting.

More information about IRENA’s project facilitation.

Continue Reading

Latest

Urban Development32 mins ago

Banking on nature: a Mexican city adapts to climate change

The Mexican city of Xalapa is surrounded by ecosystems that not only harbor stunning flora and fauna, but also provide...

Reports3 hours ago

Africa: Urgent action needed to mobilise domestic resources as tax revenues plateau

The average tax-to-GDP ratio for the 26 countries participating in the new edition of Revenue Statistics in Africa was unchanged at 17.2%...

Europe5 hours ago

U.S. President Trump to meet Bulgaria’s Prime Minister at the White House: What to expect?

Next Monday, 25 November, President Trump will welcome Bulgarian Prime Minister Borissov at the White House for a bilateral meeting....

Americas7 hours ago

Poll Shows Trump’s Israel Policy Is Opposed Even by Republicans

On Monday, November 18th, Reuters headlined “U.S. backs Israel on settlements, angering Palestinians and clouding peace process” and reported that,...

Africa9 hours ago

The Geopolitics of natural resources of Western Sahara

In the post-bipolar international legal literature, the right to self-determination is part of the broader concept of human rights, and...

Economy10 hours ago

Doing Business Report 2020: Soaring Changes with Soaring Doubts

As Narendra Modi brands his government of making new leaps; similarly, the World Bank’s annually published report, “Doing Business” has...

Travel & Leisure12 hours ago

The Art of Travelling Alone: How to Make the Best of Your Solo Trip

We are currently celebrating Singles’ Day — now one of the biggest shopping holidays of the year — which encourages...

Trending

Copyright © 2019 Modern Diplomacy