Connect with us

Energy

Engaging the ‘Climate’ Generation in Global Energy Transition

Published

on

photo: IRENA

Renewable energy is at the heart of global efforts to secure a sustainable future. Partnering with young people to amplify calls for the global energy transition is an essential part of this endeavour, as they represent a major driver of development, social change, economic growth, innovation and environmental protection. In recent years, young people have become increasingly involved in shaping the sustainable development discourse, and have a key role to play in propelling climate change mitigation efforts within their respective communities.

Therefore, how might we best engage this new generation of climate champions to accentuate their role in the ongoing energy transition? In short, engagement begins with information and awareness. Young people must be exposed to the growing body of knowledge and perspectives on renewable energy technologies and be encouraged to engage in peer-to-peer exchanges on the subject via new platforms.

To this end, IRENA convened the first IRENA Youth Forum in Abu Dhabi in January 2020, bringing together young people from more than 35 countries to discuss their role in accelerating the global energy transformation. The Forum allowed participants to take part in a truly global conversation, exchanging views with each other as well as with renewable energy experts and representatives from governments around the world, the private sector and the international community.

Similarly, the IRENA Youth Talk webinar, organised in collaboration with the SDG 7 Youth Constituency of the UN Major Group for Children and Youth, presented the views of youth leaders, to identify how young people can further the promotion of renewables through entrepreneurship that accelerates the energy transition.

For example, Joachim Tamaro’s experience in Kenya was shared in the Youth Talk, illustrating how effective young entrepreneurs can be as agents of change in their communities. He is currently working on the East Africa Geo-Aquacultural Development Project – a venture that envisages the use of solar energy to power refrigeration in rural areas that rely on fishing for their livelihoods. The project will also use geothermal-based steam for hatchery, production, processing, storage, preparation and cooking processes.

It is time for governments, international organisations and other relevant stakeholders to engage with young people like Joachim and integrate their contributions into the broader plan to accelerate the energy transition, address climate change and achieve the UN Sustainable Development Agenda.

Business incubators, entrepreneurship accelerators and innovation programmes can empower young people to take their initiatives further. They can give young innovators and entrepreneurs opportunities to showcase and implement their ideas and contribute to their communities’ economic and sustainable development. At the same time, they also allow them to benefit from technical training, mentorship and financing opportunities.

Governments must also engage young people by reflecting their views and perspectives when developing policies that aim to secure a sustainable energy future, not least because it is the youth of today who will be the leaders of tomorrow.

IRENA

Continue Reading
Comments

Energy

Jordan, Israel, and Palestine in Quest of Solving the Energy Conundrum

Published

on

Gas discoveries in the Eastern Mediterranean can help deliver dividends of peace to Jordan, Israel, and Egypt. New energy supply options can strengthen Jordan’s energy security and emergence as a leading transit hub of natural gas from the Eastern Mediterranean. In fact, the transformation of the port of Aqaba into a second regional energy hub would enable Jordan to re-export Israeli and Egyptian gas to Arab and Asian markets.

The possibility of the kingdom to turn into a regional energy distribution centre can bevalid through the direction of Israeli and Egyptian natural gas to Egyptian liquefaction plants and onwards to Jordan, where it could be piped via the Arab Gas Pipeline to Syria, Lebanon, and countries to the East.  The creation of an energy hub in Jordan will not only help diversify the region’s energy suppliers and routes. Equal important, it is conducive to Jordan’s energy diversification efforts whose main pillars lie in the import of gas from Israel and Egypt; construction of a dual oil and gas pipeline from Iraq; and a shift towards renewables. In a systematic effort to reduce dependence on oil imports, the kingdom swiftly proceeds with exploration of its domestic fields like the Risha gas field that makes up almost 5% of the national gas consumption. Notably, the state-owned National Petroleum Company discovered in late 2020 promising new quantities in the Risha gas field that lies along Jordan’s eastern border with Iraq.

In addition, gas discoveries in the Eastern Mediterranean can be leveraged to create interdependencies between Israel, Jordan, and Palestine with the use of gas and solar for the generation of energy, which, in turn, can power desalination plants to generate shared drinking water. Eco-Peace Middle East, an organization that brings together environmentalists from Jordan, Israel and Palestine pursues the Water-Energy Nexus Project that examines the technical and economic feasibility of turning Israeli, Palestinian, and potentially Lebanese gas in the short-term, and Jordan’s solar energy in the long-term into desalinated water providing viable solutions to water scarcity in the region. Concurrently, Jordan supplies electricity to the Palestinians as means to enhancing grid connectivity with neighbours and promoting regional stability.

In neighbouring Israel, gas largely replaced diesel and coal-fired electricity generation feeding about 85% of Israeli domestic energy demand. It is estimated that by 2025 all new power plants in Israel will use renewable energy resources for electricity generation. Still, gas will be used to produce methane, ethanol and hydrogen, the fuel of the future that supports transition to clean energy. The coronavirus pandemic inflicted challenges and opportunities upon the gas market in Israel. A prime opportunity is the entry of American energy major Chevron into the Israeli gas sector with the acquisition of American Noble Energy with a deal valued $13 billion that includes Noble’s$8 billion in debt.

The participation of Chevron in Israeli gas fields strengthens its investment portfolio in the Eastern Mediterranean and fortifies the position of Israel as a reliable gas producer in the Arab world. This is reinforced by the fact that the American energy major participates in the exploration of energy assets in Iraqi Kurdistan, the UAE, and the neutral zone between Saudi Arabia and Kuwait. Israel’s normalization agreement with the UAE makes Chevron’s acquisition of Noble Energy less controversial and advances Israel’s geostrategic interests and energy export outreach to markets in Asia via Gulf countries.

The reduction by 50% in Egyptian purchase of gas from Israel is a major challenge caused by the pandemic. Notably, a clause in the Israel-Egypt gas contract allows up to 50% decrease of Egyptian purchase of gas from Israel if Brent Crude prices fall below $50 per barrel. At another level, it seems that Israel should make use of Egypt’s excess liquefaction capacity in the Damietta and Idku plants rather than build an Israeli liquefaction plant at Eilat so that liquefied Israeli gas is shipped through the Arab Gas Pipeline to third markets.

When it comes to the West Bank and Gaza, energy challenges remain high. Palestine has the lowest GDP in the region, but it experiences rapid economic growth, leading to an annual average 3% increase of electricity demand. Around 90% of the total electricity consumption in the Palestinian territories is provided by Israel and the remaining 10% is provided by Jordan and Egypt as well as rooftop solar panels primarily in the West Bank. Palestinian cities can be described as energy islands with limited integration into the national grid due to lack of high-voltage transmission lines that would connect north and south West Bank. Because of this reality, the Palestinian Authority should engage the private sector in energy infrastructure projects like construction of high-voltage transmission and distribution lines that will connect north and south of the West Bank. The private sector can partly finance infrastructure costs in a Public Private Partnership scheme and guarantee smooth project execution.

Fiscal challenges however outweigh infrastructure challenges with most representative the inability of the Palestinian Authority to collect electricity bill payments from customers. The situation forced the Palestinian Authority to introduce subsidies and outstanding payments are owed by Palestinian distribution companies to the Israeli Electricity Corporation which is the largest supplier of electricity. As consequence 6% of the Palestinian budget is dedicated to paying electricity debts and when this does not happen, the amount is deducted from the taxes Israel collects for the Palestinian Authority.

The best option for Palestine to meet electricity demand is the construction of a solar power plant with 300 MW capacity in Area C of the West Bank and another solar power plant with 200 MW capacity across the Gaza-Israel border. In addition, the development of the Gaza marine gas field would funnel gas in the West Bank and Gaza and convert the Gaza power plant to burn gas instead of heavy fuel. The recent signing of a Memorandum of Understanding between the Palestinian Investment Fund, the Egyptian Natural Gas Holding Company (EGAS) and Consolidated Contractors Company (CCC) for the development of the Gaza marine field, the construction of all necessary infrastructure, and the transportation of Palestinian gas to Egypt is a major development. Coordination with Israel can unlock the development of the Palestinian field and pave the way for the resolution of the energy crisis in Gaza and also supply gas to a new power plant in Jenin.

Overall, the creation of an integrating energy economy between Israel, Jordan, Egypt, and Palestine can anchor lasting and mutually beneficial economic interdependencies and deliver dividends of peace. All it takes is efficient leadership that recognizes the high potentials.

Continue Reading

Energy

The EV Effect: Markets are Betting on the Energy Transition

Published

on

The International Renewable Energy Agency (IRENA) has calculated that USD 2 trillion in annual investment will be required to achieve the goals of the Paris Agreement in the coming three years.

Electromobility has a major role to play in this regard – IRENA’s transformation pathway estimates that 350 million electric vehicles (EVs) will be needed by 2030, kickstarting developments in the industry and influencing share values as manufacturers, suppliers and investors move to capitalise on the energy transition.

Today, around eight million EVs account for a mere 1% of all vehicles on the world’s roads, but 3.1 million were sold in 2020, representing a 4% market share. While the penetration of EVs in the heavy duty (3.5+ tons) vehicles category is much lower, electric trucks are expected to become more mainstream as manufacturers begin to offer new models to meet increasing demand.

The pace of development in the industry has increased the value of stocks in companies such as Tesla, Nio and BYD, who were among the highest performers in the sector in 2020. Tesla produced half a million cars last year, was valued at USD 670 billion, and produced a price-to-earnings ratio that vastly outstripped the industry average, despite Volkswagen and Renault both selling significantly more electric vehicles (EV) than Tesla in Europe in the last months of 2020.

Nevertheless, it is unlikely this gap will remain as volumes continue to grow, and with EV growth will come increased demand for batteries. The recent success of EV sales has largely been driven by the falling cost of battery packs – which reached 137 USD/kWh in 2020. The sale of more than 35 million vehicles per year will require a ten-fold increase in battery manufacturing capacity from today’s levels, leading to increased shares in battery manufacturers like Samsung SDI and CATL in the past year.

This rising demand has also boosted mining stocks, as about 80 kg of copper is required for a single EV battery. As the energy transition gathers pace, the need for copper will extend beyond electric cars to encompass electric grids and other motors. Copper prices have therefore risen by 30% in recent months to USD 7 800 per tonne, pushing up the share prices of miners such as Freeport-McRoran significantly.

Finally, around 35 million public charging stations will be needed by 2030, as well as ten times more private charging stations, which require an investment in the range of USD 1.2 – 2.4 trillion. This has increased the value of charging companies such as Fastnet and Switchback significantly in recent months.

Skyrocketing stock prices – ahead of actual deployment – testify to market confidence in the energy transition; however, investment opportunities remain scarce. Market expectations are that financing will follow as soon as skills and investment barriers fall. Nevertheless, these must be addressed without delay to attract and accelerate the investment required to deliver on the significant promise of the energy transition.

IRENA

Continue Reading

Energy

Lebanon and Syria: A Complicated Relationship between Energy and Geopolitics

Published

on

Syria continues to offer the ground where Russia and the United States compete over control of oil and gas fields and the transportation routes that bring energy to consumers. Russia seeks to expand its energy footprint in Syria to build influence over rebel-controlled areas in Northeast Syria that are backed by the American military and over neighbouring Lebanon through Syria’s Mediterranean coast.

The Syrian government’s decision to sign exploration and production contracts with Russian energy companies Mercury LLC and Velada LLC for three blocks in different parts of Syria ensures delivery on Russian objectives. The contracts for oil and gas exploration include a gas field north of Damascus, and oilfields in west of Deir Ez-zor and near the oil-producing town of Rasafa in Northeast Syria. Russian energy companies have also reportedly taken over contracts for hydrocarbon exploration in three blocks off Syria’s Mediterranean coast, while a Russian ship conducted geophysical mapping across Syrian and Lebanese territorial waters for gas exploration. The presence of Russian energy companies Mercury LLC and Novatek, both with direct ties to Kremlin, in Syrian and Lebanese maritime blocks signal a long-term involvement of Russia in the East Mediterranean’s energy geopolitics.

New sanctions on Syria under the Caesar Act that took effect in June 2020 are an American tool to counter Russian companies from doing business in the Syrian petroleum and military sectors and in rehabilitating Syria’s energy infrastructure. The presence of small sized American Delta Crescent Energy company in northeast Syria solidifies American energy interests in the region and cements U.S. alliance with the Syrian Democratic Forces. The fact that the U.S. Department of Treasury extended a waiver to Delta Crescent Energy to allow development of oil and gas fields and to revamp the energy infrastructure in northeast Syria shows American commitment to maintain a long-term presence in Syria.

In fact, Delta Crescent Energy plans to build a refinery in northeast Syria at a cost of 150 million dollars. The aim is to reduce the northeast’s dependence from the Assad government where currently there is no refining capacity and as consequence, all extracted oil from the American-backed Syrian Democratic Forces is sold to the Assad government and is bought again after it is refined.  Delta Crescent Energy signed a contract with the Syrian Democratic Forces that foresees not only exploration and development of energy resources but also construction of transportation infrastructure so that energy products reach the international market either through Turkey or the Kurdistan region of Iraq. 

In this complex context, it seems that it would be of great value if revenues from oil and gas trade are directed to alleviate the humanitarian burden in Syria and to restore basic infrastructure. 

In neighbouring Lebanon, the surge in coronavirus cases in Lebanon and global low oil prices prompted the government to postpone the second international licensing round for the third time to the end of 2021. This development along with the failure to identify commercially viable gas in block 4 impedes Lebanon from proceeding with long-anticipated projects like Liquefied Natural Gas (LNG) terminals and Floating Storage and Regasification Units (FSRU). In addition, the lack of bidders or potential financiers puts on hold the construction of power plants that will convert gas into electricity for domestic consumption.

The development of Lebanon’s hydrocarbon reserves faces internal and external challenges ranging from lack of institutional mechanisms to enhance transparency and accountability to geopolitical complexities that hinder overall exploitation in block 9 that is located on the disputed Lebanon-Israel maritime border. Poor drilling results in block 4 that lies in the Lebanese Exclusive Economic Zone (EEZ) has surfaced the absence of transparency that favoured the diffuse of conspiracy theories. One such conspiracy held that the block’s consortium found gas but was forced to falsify its report for political reasons. In fact, conspiracies have come to counterbalance perpetual failure of the existing political system to address deep-seated economic problems that plague Lebanon.

Lebanon’s gas hopes are built on exploration of block 9 that is partly disputed by Israel. Lebanon has been sceptical about Israel’s initiation of oil and gas exploration activities in a maritime area close to disputed Block 9 and within block 72, previously known as Alon D, that lies in the northern part of Israel’s EEZ. Interestingly, Israel has released a map, in light of the upcoming 4th international offshore licensing round, that does not extend the northern limit of block 72 into the Lebanon-Israel disputed maritime area. This can be viewed as a token of de-escalating bilateral tensions while leaving room for third party mediation.

American mediation to settle the Lebanon-Israel maritime 854 km dispute resumed in October 2020 at a base of UNIFIL, the UN peacekeeping force. Discussions have been conducted upon a map that was registered with the UN in 2011 with Lebanon raising demands for an extra sea area of 1,430 sq. km further south extending partly to Israel’s Karish gas field that is owned by Greek medium-sized company Energean Oil & Gas. On the other side, Israel demanded the maritime border to be moved further north in compliance with its traditional position that it is entitled to potential gas findings in Block 9.

For the resolution of the maritime dispute that could unleash Israel’s and Lebanon’s energy potential, various proposals have been put in place. The most representative is the 2019 proposal of David Satterfield, former US deputy assistant secretary of state, that centred on the establishment of a mutual trust fund under UN supervision so that profits are allocated to Lebanon and Israel in accordance with an agreement over gas fields’ distribution and profit-sharing percentages. Another proposal that surfaced recently revolves around a likely constructive role of the UAE in the resolution of the Lebanon-Israel maritime dispute through the taking over of a development and operational stake in northern Israeli blocks and in Lebanese southern blocks. Overall, likely unitization agreements can ensure joint development and production of the reservoirs across the disputed maritime border maximizing the economic recovery of gas from licenses of the contract areas.

Evidently, Syria and Lebanon must explore opportunities in terms of financing, revenue sharing and political relations with third countries. Despite challenges both countries have an interest in ensuring that they are not excluded or left behind from regional energy cooperation. In this respect, time is of paramount importance.

Continue Reading

Publications

Latest

Reports1 hour ago

Greater Innovation Critical to Driving Sustained Economic Recovery in East Asia

Innovation is critical to productivity growth and economic progress in developing East Asia in a rapidly changing world, according to...

Southeast Asia3 hours ago

Myanmar: Exploiting lessons learnt in the Middle East

Demonstrating for the third week their determination to force the country’s military to return to its barracks, protesters in Myanmar...

Energy5 hours ago

Jordan, Israel, and Palestine in Quest of Solving the Energy Conundrum

Gas discoveries in the Eastern Mediterranean can help deliver dividends of peace to Jordan, Israel, and Egypt. New energy supply...

Reports7 hours ago

Sea transport is primary route for counterfeiters

More than half of the total value of counterfeit goods seized around the world are shipped by sea, according to...

Development9 hours ago

Lao PDR: New Project to Protect Landscapes and Enhance Livelihoods

The World Bank’s Board of Executive Directors today approved a US$57 million project to help Lao PDR promote sustainable forest...

Eastern Europe11 hours ago

As Georgians Fight Each Other, Russia Gleefully Looks On

Earlier today, the leader of Georgia’s major opposition party – United National Movement (UNM) – was detained at his party...

Energy News13 hours ago

Policy Measures to Advance Jordan’s Transition to Renewables

A new report published today by the International Renewable Energy Agency (IRENA) has identified a series of policy measures that...

Trending