IEA Chief Modeller Laura Cozzi launched the latest World Energy Outlook in Beijing on 23 January. The China launch brought together over 120 officials and experts drawn from government, academia and the power industry to discuss the latest global energy trends, and the outlook for the electricity.
During his opening remarks, Li Ye, Executive Director General of China’s National Energy Agency noted the strong IEA-China relationship that has delivered key results across a range of important areas of reform for China including: power market reform, distributed energy, renewables and gas market design.
At the IEA Ministerial meeting in 2015, China became one of the first countries to activate Association status with the Agency. Since then the IEA and China have been working closely together to achieve energy reform in China. In 2017, the IEA and China agreed a Three Year Work programme to boost energy policy analysis, promote clean energy systems, build capacity on energy regulation, and improve exchange of data on renewable energy and other resources. The launch in Beijing was organised by the China Electricity Power Planning and Engineering Institute, which hosts IEA’s China Liaison Office.
The IEA’s work with China includes collaboration to draw upon best international practice in carbon emissions trading, and power market reforms that enables renewable energy to make a greater contribution to electricity supply. Work is ongoing with Chinese counterparts as the new Five Year Plan, and longer-term plans, are put in place to accelerate China’s clean energy transition. The IEA will launch its latest work on China’s Power System Reform in Beijing on 25 February.
Renewable energy investment in 2018 hit USD 288.9 billion
Global investment in renewable energy hit USD 288.9 billion in 2018, with the amount spent on new capacity far exceeding the financial backing for new fossil fuel power, according to new figures published today.
These numbers, produced by BloombergNEF (BNEF), are being published today as part of REN21’s Renewables 2019 Global Status Report.
The numbers show that while investment was 11 per cent down over the previous year, 2018 was the ninth successive year in which it exceeded USD 200 billion and the fifth successive year above USD 250 billion. The figure does not include hydropower above 50MW, which saw an additional USD 16 billion invested – also down on 2017, when USD 40 billion was invested.
The dip in investment in 2018 can be partly attributed to falling technology costs in solar photovoltaics, which meant that the required capacity could be secured at a lower cost, and a slowdown in solar power deployment in China.
However, globally, solar was still the largest focus of investment, with USD 139.7 billion in 2018, down 22 per cent. Wind power investment increased two per cent in 2018, to USD 134.1 billion. The other sectors lagged far behind, although investment in biomass and waste-to-energy increased 54 per cent, to USD 8.7 billion.
The figures compare the amount invested in new renewable power capacity, which was USD 272.3 billion globally in 2018 (excluding large hydro), with that in new coal- and gas-fired generating capacity, which was USD 95 billion.
China leads, Europe and developing countries rally
A geographical breakdown of the USD 288.9 billion figure for total renewable energy investment in 2018 shows that China led investment worldwide for the seventh successive year, at USD 91.2 billion. However, this was down 37 per cent from 2017’s record number, due to a number of factors including a mid-year change in the government’s feed-in tariff policy, which hit investment in solar power.
China also accounted for 32 per cent of the global total investment, followed by Europe at 21 per cent, the United States at 17 per cent, and Asia-Oceania (excluding China and India) at 15 per cent. Smaller shares were seen in India at 5 per cent, the Middle East and Africa at 5 per cent, the Americas (excluding Brazil and the United States) at 3 per cent and Brazil at 1 per cent.
If China is excluded, renewable energy investment in the developing world actually increased 6 per cent to USD 61.6 billion, a record high.
“When overall investment falls, it is easy to think we are moving backwards, but that is not the case,” Angus McCrone, Chief Editor at BloombergNEF, commented: “Renewable energy is getting less expensive and we are seeing a broadening of investment activity in wind and solar to more countries in Asia, Eastern Europe, and the Middle East and Africa.”
Investment in Europe jumped 39 per cent to USD 61.2 billion, the highest level in two years, driven largely by large on- and off-shore wind investments.
In the United States, investment edged up 1 per cent to USD 48.5 billion, the highest level since 2011, also driven by an increase in wind power financing.
Investment in the Asia-Pacific region (excluding China and India) increased 6 per cent to USD 44.2 billion, the highest level in three years, while the Middle East and Africa saw investment leap 57 per cent to a record USD 15.4 billion. However, in the Americas (excluding Brazil and the United States), investment declined 23 per cent (excluding large hydropower) to USD 9.8 billion.
“It is reassuring to see investment growing in the US,” said Prof. Dr. Nils Stieglitz, President of Frankfurt School of Finance & Management, involved in the report, “Ironically, this renewables investment growth may in part be driven by projects rushing to qualify for the current tax-support scheme, which is due to expire in only a few years as chances for extension are currently quite low.”
A wealth of more detailed information on global investment in the financing of renewables in 2018 will be shared in the Global Trends in Renewable Energy Investment report, to be released in September ahead of the Global Climate Action summit of the UN Secretary-General. That report has been published every year since 2007. this year’s edition is co-funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It will feature a look back on a decade of renewable energy investment.
Clean Energy at Forefront of Fight Against Climate Change in Asia and Pacific
The advancement of affordable and reliable clean energy is not only at the forefront of Asia and the Pacific’s development progress, it is also at the heart of the region’s development of resilient infrastructure and fight against climate change, participants at the Asia Clean Energy Forum (ACEF) 2019 heard today.
Co-hosted by the Asian Development Bank (ADB), the United States Agency for International Development, and the Korea Energy Agency, with the support of the International Energy Agency as the Knowledge Partner, ACEF 2019 is being held from 18–21 June under the theme “Partnering for Impact.” In line with this theme, the event is highlighting the need to focus on collaborative partnerships, ideas, and efforts that have market potential, with the goal of delivering tangible clean energy impact across the Asia and Pacific region.
Some 1,300 people will attend the event, including many from the private sector involved in clean energy development, as well as academicians, officials from governments, and representatives from nongovernment organizations and multilateral development banks. ACEF began in 2006 as an annual event to provide a platform for discussion and collaboration in promoting clean energy in Asia and the Pacific.
ADB President Mr. Takehiko Nakao participated in the opening panel discussion featuring Co-founder and Chief Scientist of the Rocky Mountain Institute Mr. Amory Lovins and Global Strategic Development Advisor and Member of the United Nations High-Level Panel on Women’s Economic Empowerment Ms. Fiza Farhan.
“A sustainable and secure energy supply remains essential as more than 350 million people still lack access to electricity in our developing member countries (DMCs). It is also a key part of the fight against climate change,” said Mr. Nakao. “People around the world are demanding affordable energy, clean air, and a more responsible approach to the environment. ACEF is a leading event in Asia and the Pacific that enables our DMCs and other participants to share their experiences and innovative ways to meet these critical demands.”
Through Strategy 2030, ADB has committed at least 75% of its operations to support climate change mitigation and adaptation efforts by 2030. Climate finance from ADB’s own resources will reach $80 billion for the period 2019–2030. Based on historical trends, ADB’s lending, equity, grants, and programs in support of renewable and energy efficiency could contribute significantly to this target.
ADB has also affirmed its commitment to advanced technologies in sustainable energy by launching its first innovation technology challenge, which will invite technology providers to submit proposals for grants from the High-Level Technology Fund which is supported by the Government of Japan to address energy related development challenges. This new modality aims to build partnerships with technology providers and accelerate innovative technology development and deployment in DMCs.
ACEF 2019 features five thematic tracks based on key elements of Strategy 2030: energy and livable cities; energy and water sustainability; energy and rural poverty alleviation; energy and innovative finance; and clean energy technologies. There will be 21 workshops focusing on a range of topics, including radical energy efficiency, hydro mini-grids, electric vehicles, the empowerment of women in the energy sector, renewable energy systems, the future of cooling, and the food–energy–water nexus.
ACEF 2019 will be limiting its carbon footprint by purchasing carbon credits to offset the travel related emissions of all participants. The event will also be paperless, with all program materials to be made exclusively available on ACEF’s website and mobile app.
IEA takes part in G20 Energy and Environment Ministerial in Japan
The International Energy Agency has provided in-depth support for this weekend’s meeting of G20 energy and environment ministers, including the publication of a major new study on hydrogen’s potential role in global energy transitions.
Under Japan’s G20 presidency, the ministerial meeting took place in the town of Karuizawa.
The IEA report on hydrogen – The Future of Hydrogen: Seizing Today’s Opportunities – analyses hydrogen’s current state of play and offers recommendations for its future development and how it can help to tackle critical energy challenges. The IEA carried out the study at the request of Japan’s G20 presidency. It was launched Friday by Dr Fatih Birol, the IEA’s Executive Director, alongside Mr Hiroshige Seko, Japan’s Minister of Economy, Trade and Industry.
The IEA provided several other important contributions to the G20 this year at the presidency’s request, including an analysis identifying more than 100 innovation gaps across the energy system and recommendations for how to fill them; a report on securing investment in low-carbon power generation; and other activities and analyses to encourage greater international collaboration on data gathering.
The IEA’s G20 work also involves tracking progress towards phasing out inefficient fossil fuel subsidies that encourage wasteful consumption. This is done through an annual update in the World Energy Outlook, the IEA’s flagship publication, and a joint report with the Organisation for Economic Co-operation and Development.
At the ministerial meetings in Karuizawa, Dr Birol presented findings from the new reports and spoke about other important topics, including energy access in Africa, tracking progress towards clean energy goals and developments in the global trade in liquefied natural gas (LNG). (Slides from his two presentations are available here and here.)
On the sidelines, he held bilateral meetings with ministers from several countries, including Australia, Brazil, India, Indonesia, Japan, Saudi Arabia and Singapore.
The IEA also supported the official side events of the ministerial meetings: the G20 Natural Gas Day, the G20 Energy Efficiency Financing Summit and hydrogen investor events in Japan. The IEA’s contributions to this year’s G20 are the latest instance of the agency’s active support for a range of G20 meetings and work streams over the past 10 years.
Fast-Paced Reforms Lead to Improvements in Ease of Doing Business Across Kazakhstan
Regions of Kazakhstan have made doing business easier by improving business regulation over the past two years, says the World...
Armenia’s position blurred the progress for the Nagorno-Karabakh conflict and leads to an escalation
The conflict between two South Caucasus countries – Armenia and Azerbaijan over the Nagorno-Karabakh became as one of the bloodiest...
Tanker Incidents: Who Blinks First?
The recent tanker incidents in the Gulf of Oman have heightened the potential for a dangerous conflict. Now that the...
Tourism: A Global Force For Growth And Development
The World Tourism Organization (UNWTO) has met in Baku, Azerbaijan, for the 110th Session of its Executive Council (16-18 June)....
Trump’s New Wall? Mexico’s Southern Border
For much of modern history, Mexico defined itself in opposition to the United States. In recent years, the two countries...
A Vision of Sustainable Middle Eastern Design at Four Seasons Hotel Abu Dhabi
Discover a vision of modern Middle Eastern Design at Four Seasons Hotel Abu Dhabi at Al Maryah Island. Developed in...
The impact of US-China Trade war
It is highly unlikely, that any tangible solution to the Trade war between Beijing and Washington will emerge in the...
Energy News2 days ago
IEA takes part in G20 Energy and Environment Ministerial in Japan
Defense2 days ago
Effectiveness of Nuclear Deterrence of India and Pakistan in Pulwama incident
Economy2 days ago
8 facts you don’t know about the money migrants send back home
Science & Technology2 days ago
Girls Don’t Code? In The Caribbean, They Lead Tech Startups
Economy2 days ago
The Game of Tariffs
Newsdesk2 days ago
Micro and Small Rural Entrepreneurs’ Access to Credit Enhanced by ADB
Energy3 days ago
Fossil fuel consumption subsidies bounced back strongly in 2018
Middle East2 days ago
The tension between Iran and the United States