The World Bank’s Board of Executive Directors today approved a US$380 million loan to develop Indonesia’s first pumped storage hydropower plant, aiming to improve power generation capacity during peak demand, while supporting the country’s energy transition and decarbonization goals.
“The Indonesian government is committed to reduce greenhouse gas emissions through, among others, development of renewable energy, energy conservation, and use of clean energy technology. Emission reduction in the energy sector will be driven by new and renewable energy generation and application of energy efficiency,” said Arifin Tasrif, Minister of Energy and Mineral Resources of the Republic of Indonesia.
Over 80 percent of the power generated for the Java-Bali grid, which supplies electricity to 70 percent of the country’s population, comes from fossil fuels. A key measure to support Indonesia’s decarbonization agenda is the development of energy storage to enable integration of renewable energy into the grid. Pumped storage hydropower plays a crucial role in this approach.
The financing will support the construction of the Upper Cisokan pumped storage hydropower plant, to be located between Jakarta and Bandung, with an expected capacity of 1,040 MW. The facility will have significant power generation capacity to meet peak demand, provide significant storage capacity to enable a larger penetration of renewable energies and, because of its close location to two large demand centers, will alleviate increasing transmission loads on the grid. As a result, a more environmentally friendly and reliable supply of electricity will benefit consumers in Java and Bali.
“We are excited about this project as it will be the first of its kind for Indonesia. It represents a turning point for Indonesia’s decarbonization pathway. The World Bank will continue to support Indonesia in its efforts to achieve resilient, sustainable, and inclusive development that will benefit the people of Indonesia now and in the future,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste.
Pumped storage hydropower makes use of two water reservoirs at different elevations. At times of low electricity demand or when there is abundant generation from clean power sources, such as solar energy, power from the grid is used to pump water to the upper reservoir. Power is generated during peak demand, usually evening hours, as water moves down to the lower reservoir using a turbine, when electricity generation costs are high.
The project will help enhance the system flexibility and efficiency in balancing supply and demand, and therefore improve the reliability and quality of electricity services in Java and Bali. It also aims to support the government to integrate variable renewable energy into the Java-Bali grid, and to do so in an environmentally and socially sustainable manner.
Iran determined to boost oil exports despite sanctions
Iranian Oil Minister Javad Oji has said the Islamic Republic is determined to increase its oil exports despite the U.S. sanctions on the country’s oil industry, adding that the use of oil sanctions as a “political tool” would harm the market.
“There is strong will in Iran to increase oil exports despite the unjust and illegal U.S. sanctions; I promise that good things will happen regarding Iran’s oil sales in the coming months,” Oji told the state TV.
As reported by IRIB, Oji noted that Iran can barter its crude oil for goods or even for services and investment not only in the oil industry but also in other sectors as well.
“Oil sales have dropped dramatically since the imposition of unjust sanctions, but this capacity exists in the Oil Ministry and all the industry’s departments to increase oil sales,” the minister said.
Iranian oil exports have plunged under U.S. sanctions, which were reimposed three years ago after Washington abandoned Tehran’s 2015 nuclear deal with six powers.
“Iran will return to its pre-sanctions crude production level as soon as U.S. sanctions on Iran are lifted,” Oji said.
“We are against using oil as a political tool that would harm the oil market.”
Since April 9, Tehran and six world powers have been in talks to revive the nuclear pact. The sixth round of the negotiations adjourned on June 20. The next round of talks has yet to be scheduled.
Oji said Iran backed a decision made by the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, on Wednesday to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day (bpd) a month to the market.
Iran has been gradually boosting crude oil production to get ready for a strong comeback into the global market as the talks with world powers over the nuclear deal show signs of progress.
According to a Bloomberg report, National Iranian Oil Company (NIOC) officials have stated that the country’s oil fields are going through overhaul operations and connections with oil buyers are being re-established.
“In the most optimistic estimates, the country could return to pre-sanctions production levels of almost four million barrels a day in as little as three months,” the report published in May stated.
IRENA and IAEA to Help African Union Develop Continental Power Master Plan
The International Renewable Energy Agency (IRENA) and the International Atomic Energy Agency (IAEA) have been selected as modelling partners for the development of the African Continental Power Systems Master Plan (CMP). The initiative is led by the African Union Development Agency (AUDA) with the technical and financial support of the European Union (EU), and is aimed at establishing a long-term continent-wide planning process. The two agencies’ modelling tools will be the official planning models utilised in this initiative.
African energy ministers tasked the African Union Development Agency (AUDA-NEPAD) to lead the development of the master plan. Following a two-year consultation process coordinated by the EU Technical Assistance Facility (TAF) for Sustainable Energy, the five African power pools selected IRENA and the IAEA to support the continent’s modelling and capacity needs. The two organisations will lead the development of an electricity master plan that promotes access to affordable, reliable and sustainable electricity supplies across the continent.
A unified transmission network in Africa will enable inter-country trade between African countries as well as cross-continental trade with Europe and Asia, via existing links in North Africa, allowing African countries to source electricity from a wide-range of competitive, clean energy sources. It will also create beneficial socioeconomic opportunities by increasing interregional access to affordable African renewable energy resources within the continent, fostering investment opportunities, job growth and ultimately contributing to the region’s sustainable development.
The urgency of this task is underlined by the prospect of carbon lock-in. Existing plans in Eastern and Southern African countries include more than 100 GW of new coal-fired power plants by 2040 – the development of which would triple carbon dioxide (CO2) emissions to 1,200 megatonnes (Mt) per year. Under the CMP, power generation options will be reviewed and re-considered to maximise socioeconomic benefits while simultaneously minimising emissions.
IRENA and the IAEA, as modelling partners, will support African stakeholders with the development of the CMP identifying surplus and deficit regions/countries in Africa in terms of electricity generation and demand. This will help identify the most cost-effective ways of expanding clean electricity generation and transmission infrastructure across the African continent.
IRENA and IAEA will also train AUDA-NEPAD staff and Power Pool experts on the use of the modelling tools, including IRENA’s System Planning Test (SPLAT) models using the IAEA’s Model for Energy Supply System Alternatives and their General Environmental Impacts (Message) tool, and support the team in the development of the CMP, ensuring knowledge transfer and capacity building.
The MESSAGE-SPLAT capacity expansion models are a key component and product of IRENA’s support to African countries. Built using the MESSAGE software, the agency has developed SPLAT models covering 47 African countries across the five African power pools. They have been used in IRENA’s capacity building programmes on energy planning across the continent.
The IAEA and IRENA cooperate on energy planning with a view to enhancing the effectiveness and impact of capacity-building efforts by joining the complementary competencies of the two organisations. The inter-agency cooperation was formalized through a Practical Arrangement, signed by both organizations on 2 November 2016, and extended for another three years in 2019.
Inside the 20-year campaign to rid the world of leaded fuel
On 9 December 1921 at a General Motors laboratory in Dayton, Ohio, chemists poured a teaspoonful of a compound called tetraethyl lead into a spasming motor.
They were hoping to stop what’s known as ‘knock’ – the wild and potentially engine-destroying vibrations that come from burning low-grade petrol.
Almost immediately after adding the tetraethyl lead, the motor began to “purr”, recounts Sharon Bertsch McGrayne in her book Prometheans in the Lab.
And so leaded petrol was born.
In the months to come, the fuel would be hailed as a breakthrough, one that would power a new generation of cars, planes and motorcycles.
There was just one problem: leaded exhaust is toxic. As leaded fuel spread to every corner of the world, it was followed by epidemics of heart disease, cancer, stroke and, most vividly, developmental delays in children.
“Leaded petrol was a huge mistake from the start, even if people may not have known it at the time,” said Rob De Jong, the head of sustainable mobility at the United Nations Environment Programme (UNEP). “The world would be dealing with the consequences for a century.”
Today that toxic legacy officially came to an end. At a press conference in Nairobi, Kenya, the United Nations Environment Programme (UNEP) announced the last country to use leaded petrol, Algeria, had phased out the fuel. For the first time since 1923, no driver on the planet will be legally able to fill their tank with lead-infused petrol.
“The successful enforcement of the ban on leaded petrol is a huge milestone for global health and our environment,” said UNEP Executive Director Inger Andersen.
The announcement followed a two-decade-long campaign, led by UNEP, to help the world abandon leaded fuel. The drive, part of the Partnership for Clean Fuels and Vehicles, used a mix of science, public education, policy work and shame to score a stunning environmental victory. Estimates have found that every year, leaded fuel bans save more than 1.2 million lives while helping the global economy avoid $2.4 trillion in healthcare expenses and other costs.
“I think this may be the single biggest success story in the environmental field,” said Michael Walsh, the former head of motor vehicle pollution control programmes with the United States’ Environmental Protection Agency.
The toxic history of lead
Lead has long been known to be toxic. Ancient Romans were aware it could cause madness and death, though that didn’t stop them from using it in pipes, paints, cosmetics and as a wine sweetener.
In the 17th century, French nobility routinely poisoned familial rivals with lead, earning it the nickname poudre de la succession, or inheritance powder.
But for the burgeoning automotive industry in the 1920s, lead was a prayer answered. It was a cheap way to raise the octane level of fuel, allowing a smoother burn and ending the problem of “knock”, which could damage engines.
But not long after leaded petrol went on sale, workers at tetraethyl lead factories began to die: two perished in Ohio, four in Delaware, five in New Jersey.
The inventor of leaded petrol, Thomas Midgely, who had a habit of smearing tetraethyl lead on his hands to prove it was safe, would come down with a severe case of lead poisoning, McGrayne wrote in her book.
Despite its toxic origins, leaded fuel would spread like wildfire through the 1970s, reaching petrol pumps in every country on Earth.
As it did, its impact on human health became clear. As early as the 1950s researchers realized that leaded exhaust was toxic and, in the decades to come it would be linked to high blood pressure, kidney failure, anaemia, blindness, infertility and other disorders.
But it was a 1979 study by American paediatrician Herbert Needleman that would galvanize a global movement against leaded fuel. Analyzing the lead content in the teeth of schoolchildren, Needleman found the chemical robbed kids of IQ points and caused a host of behavioural problems.
Over the next two decades, dozens of countries – from Japan to Germany, to the United States – would abandon leaded gas. But the fuel remained entrenched in many places, including much of the developing world.
The partnership begins
In 2002, at the United Nations-backed World Summit on Sustainable Development in South Africa, a group of environmentalists, scientists, government officials and business leaders came together to form the Partnership for Clean Fuels and Vehicles. Its goal: stamp out leaded petrol
The alliance thrust together clean air campaigners and oil industry executives – two groups who in the past had gone toe-to-toe over other emissions standards.
“This type of partnership had never been tried before,” recalled De Jong, one of its architects. “Some people said it would never work.”
Some founding members were angered that decades after being phased out in rich countries like the United States, leaded petrol was still being sold in poor ones.
“They were getting the dirtiest fuel. It was very frustrating,” said Walsh, the former EPA official who is now a consultant. “The people that were most vulnerable were getting poisoned.”
At the time, leaded petrol was still being used in 117 countries, including all of Africa, where it was having a devastating effect in fast-growing cities, like Lagos, Cairo, and Nairobi, said De Jong.
The focus on Africa
The media had begun to catalogue the toxic trail of the fuel, which provided the partnership with an opening. Spearheaded by De Jong and a team of 15 UNEP staffers, the alliance launched a multi-pronged campaign to get Africa off leaded petrol.
It helped governments update air pollution standards, many of which dated to colonial times. It published a study to debunk the urban legend that unleaded fuel would damage engines. It funded blood testing in places like Ghana and Kenya, which found dangerously elevated levels of lead in children’s blood.
Using what De Jong described as a “market approach”, UNEP staffers also lobbied petrol-importing countries to buy their fuel from the global market if local producers refused to churn out unleaded petrol.
Finally, partnership members, which included oil engineers, provided “boutique solutions” that allowed African refineries to switch over to unleaded fuel, said Rob Cox, the technical director of IPIECA, an oil and gas industry association specializing in environmental and social issues.
“Bit by bit, we broke down the barriers,” said Cox. “As we went through it, we suddenly became conscious that what we were doing was really special.”
Progress was fast. By 2006 all of Sub-Saharan Africa was lead free, an accomplishment the Washington Post called an unheralded success of international environmental diplomacy.
It also ushered in a new era of regional cooperation in places like East Africa, said Wanjiku Manyara, a founding member of the partnership and the Executive Director of the Petroleum Institute of East Africa.
The elimination of leaded petrol showed “Africa has the power to demand clean fuels from suppliers,” said Manyara. “It raised the bar ensuring that the dumping of poor-quality fuels cannot take place.”
In the trenches
While success in Sub-Saharan Africa was quick, the rest of the world would prove to be a slog.
It would take 15 years to persuade the remaining countries – which were clustered in North Africa, the Middle East, Central Asia and Eastern Asia – to abandon leaded fuel.
In some of those places, the Partnership for Clean Fuels and Vehicles faced stiff resistance from the world’s last remaining maker of tetraethyl lead, Innospec, which was based in the United States and the United Kingdom.
In 2010, with the market for tetraethyl lead cratering, the company pleaded guilty to bribing Indonesian and Iraqi officials to secure sales, according to court records in the United States and the United Kingdom.
Still, the partnership continued to register victories, including in some of the world’s most isolated countries, like the Democratic People’s Republic of Korea, where UNEP staff met with officials eager to transition away from leaded fuel, De Jong said.
The end of the line
At partnership meetings, De Jong and colleague Jane Akumu would show a map of the world with leaded countries in red and unleaded ones in blue. As the years passed, the reds became few and far between.
“We could see from relatively early on that it wasn’t hopeless,” said Walsh. “There was a feeling of growing momentum, that ‘Yeah, we’re going to do this.’ In the meantime, we’re helping a million people here and a million people there.”
By 2020, Algeria was the last country on earth where drivers could buy leaded petrol. But in September last year, the government announced state-owned oil company Sonatrach would stop making the fuel and over the next 10 months Algeria decontaminated its storage facilities and distribution networks. In July, the government confirmed that service stations were no longer selling leaded petrol, 99 years and seven months after its invention.
“It was a proud moment for the sustainable mobility team and partners,” said UNEP’s Akumu, referring to the unit leading the campaign against leaded fuel. “We joked that we could now put in our retirement papers.”
There was no popping of champagne, though. “It was more like ‘Finally we’re done’,” said De Jong laughing.
In all, the partnership helped 86 countries wean themselves off leaded fuel.
“It was a sweet spot,” said Cox, a former oil industry engineer who is set to retire this fall. “The timing was right. The people were right. It is something that has effected me.”
The phasing out of leaded petrol has had a profound effect on the world. A study from California State University found that every year, it saves the lives of 1.2 million people, including 125,000 children who would otherwise die prematurely from cardiovascular, renal and neurological diseases.
Because lead exposure in childhood leads to behavioural problems, including violence in adulthood, the end of leaded fuel also prevents some estimated 58 million crimes annually. As well, it saves the global economy $2.4 trillion in medical bills, lost wages, incarceration charges and other expenses every year.
Perhaps as importantly, it unlocked the widespread use of catalytic converters, filters installed on the exhaust systems of all petrol cars. These filters, which can be destroyed by a single tankful of leaded fuel, scrub out a host of toxic chemicals, like carbon monoxide and nitrogen oxides, making vehicles up to 90 per cent cleaner.
Hope for the future
While leaded petrol may be gone, air pollution still kills about 7 million people annually. Much of it comes from tailpipe emissions, including small particulates known as PM 2.5 that can penetrate deep into the respiratory tract, causing asthma and heart disease. Ultimately, De Jong says, the world will need to transition to zero emissions electric vehicles if it wants to conquer air pollution.
Still, observers say the end of leaded petrol is an encouraging step with humanity staring down the barrel of another environmental catastrophe: climate change.
“I’m certainly not a Pollyanna about climate change,” said Walsh. “But at least we can say ‘We solved (the leaded fuel) problem. Let’s do something similar. It gives me hope.”
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