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IEA hosts leading global meeting on energy analysis and modeling

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Professor William Nordhaus delivers his opening keynote address at IEW 2019 in Paris (Photograph: IEA)

The International Energy Agency is hosting the 2019 edition of the International Energy Workshop this week, the leading conference for the international energy modelling community. The three-day workshop has brought together 250 participants from over 40 countries with more than 100 authors presenting original academic work.

The event opened this morning with lectures from Professor William Nordhaus (winner of the 2018 Nobel Prize in Economics and Sterling Professor of Economics at Yale University) and H.E. Dr. Kandeh Yumkella (Former UN Under-Secretary General and first CEO of Sustainable Energy for All ), and was chaired by Dr Fatih Birol, the Executive Director of the IEA.

“I am thrilled that the IEA is hosting this important event for the fifth time, continuing our longstanding involvement with the International Energy Workshop. I am particularly pleased at this year’s record attendance, including the largest ever number of participants from emerging and developing economies,” said Dr Birol. “Having Professor Nordhaus and Dr Yumkella speaking today gives us renewed inspiration and direction of where we should be heading: climate, energy access and local pollution have to be dealt with hand in hand.”

Keynote speakers will include Dr Richard Newell (President of Resources for the Future), Dr Maria Neira (Director, WHO), Professor Pantelis Capros (head of E3M Lab), Dr Ken Koyama (Chief Economist, Institute for Energy Economics Japan), Dr Ritu Mathur (Director, TERI India)  and Mr Damgaard Jensen (Chair of the Institutional Investors Group on Climate Change).

The workshop is an occasion for the IEA to exchange with, and learn from, global energy modelling experts. Ms Laura Cozzi, IEA Chief Energy Modeller, provided insights into IEA modelling along with members of the IEA modelling teams in a series of deep-dive sessions. Participants are taking part in parallel sessions that focus on topics including: 100% renewable energy systems, pathways to net-zero emissions, flexibility in power systems, stranded assets, energy and the SDGs, energy demand in emerging markets. The participation of over 20 energy modellers from emerging and developing economies was made possible through the IEA’s Clean Energy Transitions Programme

In conjunction with IEW 2019, the IEA’s Technology Collaboration Programme on Energy Technology Systems Analysis (IEA-ETSAP) is holding the TIMES training course (3-5 June) and the ETSAP workshop (6-7 June).

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The Gambia: World Bank to Strengthen Access to Energy and Water

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The World Bank Board of Executive Directors approved today a $43 million grant from the International Development Association (IDA)* for The Gambia’s Electricity Restoration and Modernisation Project (GERMP). The additional financing was made available through reallocation of IDA18 balance, thus augmenting the Banks initial funding envelope for The Gambia by 20 percent.

The people of The Gambia face many challenges in terms of access to electricity and water. Nearly 50% have still no access to electricity, and in urban areas, about 69 percent of the population has access to safe drinking water. Further, the quality of services is weak due to frequent service outages, with some neighbourhoods not receiving water for days, weeks or even months at a time. While the National Water and Electricity Company (NAWEC) has made significant improvements in its operational and financial performance in recent years, the utility has yet to achieve financial viability. Customers still face erratic supply of water and electricity, which have been exacerbated by the COVID-19 pandemic.

“This support will build on the ongoing efforts of the government to strengthen the electricity and water sectors, and further boost the national response to the COVID-19 pandemic through communications and targeted investments including hand washing facilities in the Greater Banjul Area,” said Elene Imnadze, World Bank Resident Representative.

The additional financing will further strengthen NAWEC’s transmission and distribution network, provide additional support to transform NAWEC into an efficient and credit-worthy utility, and expand the scope of the project to the water sector. Specifically, more than 1.6 million people will have gained or improved access to electricity; 17 km of transmission lines will be constructed or rehabilitated; 20 grid-connected photovoltaic system with storage will be installed; 20,000 water meters will be installed or replaced; and three water storage tanks will be repaired.

“This additional grant comes at an important moment in the reform process underway. We have already seen significant improvements in NAWEC’s performance. Additional resources will help to solidify these gains,” said Chris Trimble, Task Team Leader and Senior Energy Specialist, World Bank.

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ADB Approves $200 Million Loan to Modernize Power Supply, Distribution System in Nepal

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The Asian Development Bank (ADB) has approved a $200 million concessional loan to improve power supply and distribution systems in Nepal.

Nepal has made significant progress in electricity supply after years of chronic power shortages. However, its power transmission and distribution systems need further strengthening to increase network capacity, improve quality and reliability, and remove delays between generation hubs and load centers.

The project will finance, among others, the reinforcement and modernization of the power supply system in Kathmandu Valley, Bharatpur metropolitan area of Chitwan district in Bagmati Province and Pokhara of Kaski district in Gandaki Province, where supply interruptions are frequent and prolonged. The project also aims to support Province 2, where the quality of electricity supply is poor and about 20% of households are still without access to the national grid.

“The project will help sustain Nepal’s improved electricity supply momentum over the past two years. This will facilitate meeting future demand from commercial and industrial activities as well as from communities, particularly women, who can now benefit from electricity-based enterprises and focus on productive economic and social activities,” said ADB Principal Energy Specialist Jiwan Acharya. “It is also very timely because the project will create employment opportunities for skilled and unskilled labor during the construction phase as the country adopts measures to mitigate the socioeconomic impact of the coronavirus disease (COVID-19) pandemic.”

Complementing ADB’s loan, the Government of Norway is providing a $35 million cofinancing grant for the installation and upgrading of power distribution networks in Province 2 and various substations to evacuate hydropower in the country. In addition, it is providing a $5 million technical assistance grant for capacity development of the Nepal Electricity Authority to ensure that gender equality and social inclusion are strengthened, and new technologies are used to make electricity infrastructure resilient.

The project is aligned with the South Asia Subregional Economic Cooperation program on intraregional power trade through cross-border power exchange. The upgrading of substations in Khimti, Barhabise, and Lapsiphedi to 400 kilovolts will facilitate cross-border power exchange with India.

ADB and other development partners have been engaged in Nepal’s power system reform efforts, including the approval of the Nepal Electricity Regulatory Commission Act of 2017, which created the Electricity Regulatory Commission as an independent regulatory body with respect to tariff-setting and consumer protection.

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Urgent need to tackle impact of likely electric car battery production boom

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Demand for raw materials used in the production of electric car batteries is set to soar, prompting the UN trade body, UNCTAD, to call for the social and environmental impacts of the extraction of raw materials, which include human rights abuses, to be urgently addressed.

Electric cars are rapidly becoming more popular amongst consumers, and UNCTAD predicts that some 23 million will be sold over the coming decade: the market for rechargeable car batteries, currently estimated at $7 billion, is forecast to rise to $58 billion by 2024 .

The shift to electric mobility is in line with ongoing efforts to reduce the world’s dependence on fossil fuels, and reduce harmful greenhouse gas emissions responsible for climate change, but a new report from UNCTAD, warns that the raw materials used in electric car batteries, are highly concentrated in a small number of countries, which raises a number of concerns.

Drilling down in DRC, Chile

For example, two-thirds of all cobalt production happens in the Democratic Republic of the Congo (DRC). According the UN Children’s Fund (UNICEF), about 20 per cent of cobalt supplied from the DRC comes from artisanal mines, where human rights abuses have been reported, and up to 40,000 children work in extremely dangerous conditions in the mines for meagre income.

And in Chile, lithium mining uses nearly 65% of the water in the country’s Salar de Atamaca region, one of the driest desert areas in the world, to pump out brines from drilled wells. This has forced local quinoa farmers and llama herders to migrate and abandon ancestral settlements. It has also contributed to environment degradation, landscape damage and soil contamination, groundwater depletion and pollution.

Climb the value chain

Noting that “the rise in demand for the strategic raw materials used to manufacture electric car batteries will open more trade opportunities for the countries that supply these materials”, UNCTAD’s director of international trade, Pamela Coke-Hamilton, emphasised the importance, for these countries, to “develop their capacity to move up the value chain”.

In the DRC, this would mean building processing plants and refineries that would add value and, potentially, jobs within the country. However, for various reasons (including limited infrastructure, financing and a lack of appropriate policies), refining takes place in other countries, mainly Belgium, China, Finland, Norway and Zambia, which reap the economic benefit.

The report recommends that countries such as DRC provide “conducive environment to attract investment to establish new mines or expand existing ones”.

Diversify and thrive

UNCTAD also recommends that the industry find ways to reduce its dependence on critical raw materials. For example, scientists are researching the possibility of using widely-available silicon, instead of graphite (80% of natural graphite reserves are in China, Brazil and Turkey).

If the industry manages to become less reliant on materials concentrated in a small number of countries, says UNCTAD, there is more chance that prices of batteries will drop, leading to greater take-up of electric cars, and a shift away from fossil-fuel powered transport.

As for the environmental consequences of the batteries themselves, the report recommends the development of improved, more sustainable mining techniques, and the recycling of the raw materials used in spent Lithium-Ion batteries, a measure that would help deal with the expected increase in demand, and also create new business opportunities.

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