Connect with us

Energy

Energy communities bring renewable power to the people

Published

on

Traditional energy production in advanced economies involves the importation of large amounts of oil and gas from a small number of suppliers. Renewable energy systems under new community ownership structures are being pioneered all over the Europe. The goal is to develop cheap, clean and secure energy by bringing power generation closer to the people who will use it.  

Squeezed between the war in Ukraine, the pandemic and climate change, the European energy system is experiencing an unprecedented crisis. Bill payers are coping with sharp increases in energy prices which show no signs of abating. In the second half of 2021, average prices for electricity (and gas) jumped by more than 11% in the EU, compared to the same period in 2020, according to Eurostat electricity price statistics. That was before the geopolitical crisis arising from the invasion of Ukraine by Russia in late February prompted sanctions which further squeeze energy supply.

The European Green Deal strategy which plans to decarbonise energy production in the European Union has been strengthened by the REPowerEU plan to decrease dependency on Russian fossil fuels. This combination will accelerate the green transition. ‘In this respect, the Ukraine crisis can be seen as a catalyst in renewable energy transitions,’ said Nicolien van der Grijp of the NEWCOMERS project.

One answer to the global energy challenge is being devised at the local and regional level through clean-energy communities. These are groups of people that voluntarily pool their resources to produce energy together. The goal of NEWCOMERS is to identify thriving and sustainable business models in newly emerging clean communities. A senior researcher with the department of Environmental Policy Analysis (EPA) at VU Amsterdam, van der Grijp says energy communities ‘contribute to making citizens more aware of energy issues and give them a perspective to take action themselves’.

Energy imports

Heating and cooling alone making up 30% of Europe’s energy use. To satisfy this demand, about 60% of EU energy needs are met with imports and over 66% of the EU’s energy imports in 2020 were petroleum products, followed by gas and coal. Instead of importing fossil fuels from far away, the growth of renewables makes it possible to produce energy closer to the location where it is consumed.

The main renewables produced in energy communities are solar, wind and hydro-power, but other sources such as hydrogen, geothermal and district heating are increasingly being tested and deployed. Members of the energy community usually consume the electricity produced and, depending on local conditions, they may also adopt other activities such as car shares, communal gardens and green roofs.

NEWCOMERS highlights the types of policy environments in which energy communities flourish, how the players are organised, the technologies used and how the business models work. It also analyses the value the energy community creates for members and broader society as well as the effects membership has on energy-related behaviour.

‘Besides helping to tackle the climate crisis, energy communities also provide value in economic and social respects,’ van der Grijp said. ‘They may create local jobs and enhance social cohesion.’ The advantages of this approach go beyond independence from polluting sources, to include a tangible social transformation.

NEWCOMERS’ research results show that awareness levels differ greatly between European countries. According to van der Grijp, this presents challenges around creating supportive policies and laws in EU Member States. It also complicates subsidy schemes that support a good business case, and services dedicated to helping people to set up and operate energy communities.

‘We hope that our findings will contribute to several policy changes that are urgently needed,’ said van der Grijp, who formulated a series of policy recommendations and a policy brief for European policy makers together with similar projects.

Distributed energy

Dr Maria Rosaria Di Nucci is coordinating the COME RES project which aims to facilitate the diffusion of renewable energy communities (RECs) in nine EU countries and to support the implementation of a regulatory framework for RECs. In doing so, the project will initiate learning processes and exchange between regions with advanced REC development and regions with expansion potential. Each country has a target and a learning region. 

‘Renewable energy communities are important vehicles for reducing greenhouse gas emissions and for providing positive social, environmental and economic impacts,’ said Di Nucci. ‘They also foster regional and rural development.’ 

‘The vision is the evolution from an energy system based on large centralised power plants to a citizen-led distributed energy production model based on renewable energy sources, which still represents a socio-political and regulatory challenge in most European countries,’ said Di Nucci.

The unique selling point of COME RES and the operative arm of the project are the nine so-called country desks. These can be regarded as informal dialogue fora involving the national project partners, community energy organisations, other key actors and market players from specific target regions and beyond. They organise thematic dialogues and policy roundtables to create solutions to overcome existing barriers for the growth of community energy. 

COME RES also provides input to policy through policy labs, action plan proposals, policy recommendations and engagement with stakeholders. Some fundamental changes are needed ‘if the energy transition is to continue to be implemented locally and democratically.’ Di Nucci mentioned simplifying financing, reducing bureaucratic barriers, and reforming the auction model for renewables projects. 

Most energy communities adopt the legal form of a cooperative, but they can also take the form of associations or foundations. Some have developed specific approaches to include marginalised groups and people living in energy poverty.

For the energy communities to be successful, civic engagement is key. W4RES is working to scale up the involvement of women in supporting and accelerating market uptake of renewable energy sources. A total of 50-60 renewable heating and cooling projects and initiatives across eight countries is expected to be supported by the end of the project.

Agents of change

The W4RES perspective is that women as agents of change can make a difference in the energy transition,’ said W4RES coordinator, Ioannis Konstas. Energy communities should engage more women in their organisational structures and provide leadership.

‘To be truly transformative, energy access and the energy sector must be linked with an agenda that challenges the stereotypes of women,’ said Konstas, ‘And that also advances their rights, dignity and visibility in their various roles as consumers, producers, investors, experts, and agents of change.’

Although a relatively new innovation, renewable energy communities possess a huge potential. Their development will have a profound impact on the energy transition and the everyday lives of European citizens.

The research in this article was funded by the EU. This article was originally published in Horizon, the EU Research and Innovation Magazine.  

Continue Reading
Comments

Energy

Mozambique Risks Economic Stability if it Purchases Russian Oil

Published

on

Mozambique risks destabilizing its economy and further loosing western development finance if it goes ahead to purchase sanctioned oil from Russia. With the return of western development finance institutions such International Monetary Fund, World Bank and the USAID, and currently showing tremendous support for sustainable development projects and programmes, Mozambique would have to stay focus and stay clear from the complexities and contradictions of the Russia-Ukraine crisis.

Mozambique needs to seriously concentrate on and pursue its plans of exporting of liquefied natural gas (LNG), extracted from the Coral South field, off the coast of Palma district, in the northern province of Cabo Delgado, possibly starting this October. It marks an economic turning point and opens a new chapter for its revenue sources.

According our research, Mozambique will become the first country in East Africa to export LNG. It will be produced on a floating platform, belonging to a consortium led by the Italian energy company, Eni. The platform, built in a Korean shipyard, arrived in Mozambican waters in January, and is now anchored in Area Four of the Rovuma Basin, some 40 kilometres from the mainland. 

This is the first deep-water platform in the world to operate at a water depth of about two thousand meters. The Coral South project is expected to produce 3.4 million tons of LNG per year over its estimated 25-year lifespan. A second project is planned for Area One of the Rovuma Basin, where the operator is the French company TotalEnergies. The planned LNG plants for this project, are onshore, in the Afungi Peninsula of Palma district. The jihadists seized Palma town in March 2021, and TotalEnergies withdrew all of its staff from the district. Subsequently the Mozambican defence and security forces and their Rwandan allies drove the terrorists out of both Palma and the neighbouring district of Mocimboa da Praia.

Current global economic situation is changing, competition and rivalry for markets also at its height. During the past months, Russia has cut its export of gas as a reciprocal action against European Union members and has redirected its search for new clients in the Asian region. It has already offered discounted prices to China and India, and now looking beyond to Africa.

United States Special Envoy to the United Nations, Thomas-Greenfield, has made one point clear in her speeches with African leaders that “African nations are free to buy grain from Russia but could face consequences if they trade in U.S.-sanctioned commodities such as oil from Russia.”

“Countries can buy Russian agricultural products, including fertilizer and wheat,” Linda Thomas-Greenfield said. But she added that “if a country decides to engage with Russia, where there are sanctions, then they are breaking those sanctions. We caution countries not to break those sanctions because then … they stand the chance of having actions taken against them.”

Russian Ambassador to Mozambique, Alexander Surikov, after a meeting with the Confederation of Economic Associations of Mozambique (CTA), had proposed that the Mozambican authorities could buy Russian oil in roubles, after Moscow presented the option to Maputo. Ambassador Surikov further expressed Russian companies’ continuing interest in investing in Mozambique. Likewise, the possibility was raised of Russia opening a bank in Mozambique focused on supporting bilateral trade and investment.

Russia previously had a VTB bank in Maputo, later involved in opaque deals. It was a financial scandal involving three fraudulent security-linked companies, and two banks – Credit Suisse and VTB of Russia, relating to an illicit loan guarantees issued by the government under former President Armando Guebuza. Until today, it is popularly referred to as “Hidden Debts” scandal involving US$2.7 billion (€2.3 million), the financial scandal that happened in 2013. 

In the aftermath, financial institutions exited and projects abandoned and this southern African country has struggled to rebound economically. Now these institutions are returning with new financial assistance programmes that would promote sustainable and inclusive growth and long-term macroeconomic stability.

In the context of the current cereal crisis, one other issue that the ambassador raised was how Mozambican companies could have direct access to Russian wheat suppliers. In this regard, it was not clear how Russian wheat would enter the market and how it would be paid for because Mozambique uses principally the US dollar in its foreign transactions, and Russia cannot conduct transactions using the US currency due to the sanctions imposed following the invasion of Ukraine.

“The rouble and the metical are worthy currencies that do not need the benevolence of some other countries that control the international system,” the Russian diplomat explained, adding that Moscow wanted to strengthen cooperation with Maputo.

Nonetheless, Minister of Mineral Resources and Energy of Mozambique, Carlos Zacarias, admittedly the possibility of buying Russian oil in roubles. “I am sure that we will study and verify the feasibility of this offer from Russia. If it is viable, for sure Russian oil will be acquired in roubles,” Carlos Zacarias said.

Mozambique’s receptivity to the Russian proposal stems from the fact that the world is experiencing a peculiar moment, characterized by great volatility in oil prices on the international market as a result of the Russia-Ukraine war.

Mozambique was among the countries that abstained on two resolutions that were voted on by the General Assembly of the United Nations, one condemning Russia for the humanitarian crisis in Ukraine as a consequence of the war and the other suspending Moscow from the Human Rights Council.

The Mozambican Liberation Front (Frelimo, the ruling party) was an ally of Moscow during the time of the former USSR, and received military support during the struggle against Portuguese colonialism and economic aid after independence in 1975.

Mozambique and Russia has admirable political relations. Mozambique has to focus on trade and economic development with external partners. According to data provided by CTA, the annual volume of economic transactions between Mozambique and Russia is estimated to be, at least, US$100 million (€98.5 million at current exchange rates).

Experts point to the fact that there is tremendous opportunity window for Mozambique. With partners including ExxonMobil Corp., China National Petroleum Corp. and Mozambican state-owned Empresa Nacional de Hidrocarbonetos, Mozambique has to move towards its own energy development.

Mozambique has considerable gas resources, the right decision is to move toward both an onshore concept and an offshore concept. It has to determine influential external investment partners ready to invest funds and, in practical terms, committed to support sustainble development in the country.

The Mozambique LNG offshore project, valued at around US$20 billion, aims to extract about 13.12 million tonnes of recoverable gas over 25 years and generate profits of US$60.8 billion, half of which will go to the Mozambican state.

The process to achieve this task has started and would generate 14,000 possible jobs in phases – first creating 5,000 jobs for Mozambicans in the construction phase and 1,200 in the operational phase, with a plan to train 2,500 technicians and so forth. These projects also have a great capacity to create indirect jobs, with foreign labour decreasing throughout the project and Mozambican labour increasing. Most of these jobs are expected to be provided by contractors and subcontractors.

Several corporate projects came to a halt due to armed insurgency in 2017 in Cabo Delgado province. The entry of foreign troops to support Mozambican forces mid-2021 has improved the security situation. Since July 2021, an offensive by government troops was fixed, with the support of Rwandan and later by the Standby Joint Force consisting forces from members of the Southern African Development Community (SADC).

Cabo Delgado province, located in northern Mozambique, is rich in natural gas. Although the gas from the three projects approved so far has a destination, Mozambique has proven reserves of over 180 trillion cubic feet, according to data from the Ministry of Mineral Resources and Energy. With an approximate population of 30 million, Mozambique is endowed with natural resources. It is a member of the Southern Africa Development Community (SADC) and the African Union. 

Continue Reading

Energy

Mozambique’s Gas Among the Alternatives for European Union

Published

on

Mozambique is increasingly stepping up efforts in the production of liquefied natural gas and consequently become one of the suitable reliable suppliers to Europe. While it might not replace Russia which cuts its export of gas as a reciprocal action against European Union members, Mozambique seeks ultimately to earn some revenue from its natural resources.

Mozambique’s state-owned National Hydrocarbons Company (ENH) has acknowledged the chances of helping to address growing gas needs in Europe, due to uncertainty over Russian supplies following the invasion of the former Soviet republic of Ukraine.

“With the situation of the war in Ukraine, the European market has increased demand for gas. One of the ways to speed up our gas to reach the markets is to use a second floating platform similar to the one that is already here in Mozambique,” said ENH’s Executive Commercial Director, Pascoal Mocumbi Júnior, quoted by Mozambique’s Information Agency (AIM).

Mocumbi Júnior explained that a second floating liquefied natural gas production platform would join an identical infrastructure that already exists in Mozambican waters, if the country were to be part of the solution to the energy deficit caused by the Russia-Ukraine crisis.

The construction time for a possible second floating unit would be three years, two years less than the time it took to build the unit that has already started loading hydrocarbons, as a way to gain time and speed up gas production.

“With the amount of gas existing in Mozambique, automatically positions itself as an alternative to supply the need that currently exists and the faster the country can get its gas on the market, the greater the possibility of taking advantage of the current crisis caused by the Russia-Ukraine conflict,” he stressed.

Late July, the outgoing European Union (EU) Ambassador to Mozambique argued that natural gas from Cabo Delgado was among the alternatives in Europess plan to diversify energy sources in the face of constraints caused by Russia’s invasion of Ukraine.

“Mozambique’s gas, with the presence of large European multinational companies, now has an even more important and strategic value,” Sánchez-Benedito Gaspar said in an interview with Lusa, Mozambican News Agency, in Maputo.

According to the diplomat, with Russia’s invasion of Ukraine, Europe came to the conclusion that “it cannot trust its old partner [Russia, among the world’s biggest gas exporters], which is authoritarian and uses gas as an instrument of war,” and is making efforts to secure alternative sources.

“We have adopted a new strategy in Europe, called RePower EU, which has several elements […] With regard to gas, which is considered a transitional energy, we are looking for alternative suppliers […] Mozambique is among the alternatives,” Sánchez-Benedito Gaspar stressed. The Spanish diplomat (EU Representative) ended his mission in Mozambique in July and replaced by the Italian Ambassador Antonino Maggiore.

According to Noticias, an information portal, the government is creating the necessary conditions for resumption of TotalEnergies-led Mozambique LNG project, a verification team is already working in Cabo Delgado.

Minister of Mineral Resources and Energy, Carlos Zacarias, explained that the government wanted to see operations resume as soon as possible. “The security situation in the area where the TotalEnergies and ExxonMobil projects will be implemented has, in our view, improved a lot. Naturally, before resuming activities, there will be a lot of scrutiny on the part of the companies carrying out the investments,” Minister Zacarias said.

Carlos Zacarias said although the government considered the conditions for the resumption of the project were improving, it was up to the company to verify if, from its point of view, the environment to recommence activities was in place. The restoration of security in the district of Palma has permitted the return of some of the residents and the resumption of some economic activities.

According to Minister Zacarias, in the same way that the population was gradually returning following the improvement of security conditions, economic enterprises could also do so. That it was not just the TotaEnergies project that had been suspended, but also many others such as the roads under construction in various locations.

In April last year, the multinational Total announced the withdrawal of all personnel from its LNG project in Afungi. The Mozambique LNG offshore project, valued at around US$20 billion, aims to extract about 13.12 million tonnes of recoverable gas over 25 years and generate profits of US$60.8 billion, half of which will go to the Mozambican state.

Total E&P Mozambique Area 1 Limited, a wholly-owned subsidiary of Total SE, operates the Mozambique LNG project, with a 26.5% equity interest, together with ENH Rovuma Area 1, S.A. (15%), Mitsui E&P Mozambique Area 1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

In order to achieve the task of exporting to Europe, the Mozambique’s National Petroleum Institute (INP) intends to maximize the use of Mozambican labour in gas extraction projects in Mozambique, generating 14,000 possible jobs in the four major projects under way.

Director of Local Content at the INP, Natália Camba, clearly pointed to the latest projects including Mozambique LNG and Rovuma LNG, which are both onshore gas liquefaction projects in the northern province of Cabo Delgado, the Coral Sul floating LNG platform, anchored some 40 kilometres off the Cabo Delgado coast, and the Inhassoro-Temane project in the southern province of Inhambane.

The Mozambique LNG project involves gas liquefaction plants on the Afungi Peninsula, in Palma district. But it is currently interrupted and there is no firm date for the resumption of activities, due to the attacks by islamist terrorists. But once the security issues are solved, the project should create 5,000 jobs for Mozambicans in the construction phase and 1,200 in the operational phase, with a plan to train 2,500 technicians.

In the case of the projects already underway, namely Coral Sul FLNG and Inhassoro-Temane, they have jointly made available 3,820 jobs in the construction phase alone, with a forecast of around 486 fixed jobs in the production phase, including foreign labour that will be reduced in the subsequent phases.

“These projects also have a great capacity to create indirect jobs, with foreign labour decreasing throughout the project and Mozambican labour increasing. Most of these jobs are expected to be provided by contractors and subcontractors,” she said, and it is expected 88 per cent of those recruited would work in construction.

With its strategy to meet the demand for skilled labour for the extractive industry projects in the country, according to the director, the INP intends to develop a framework of skilled human resources to meet the demands of the market, as well as to combat the discrepancy between the investments made in the industry and its capacity to generate employment.

In the framework of Local Content, the INP’s actions with the companies operating the gas projects envisages the qualification, training and certification of about 200 Small and Medium Enterprises operating to internationally required standards.

The armed insurgency that began in 2017 in Cabo Delgado province, the entry of foreign troops to support Mozambican forces in the middle of last year has improved the security situation, recovering important positions such as the village of Mocímboa da Praia. Since July 2021, an offensive by government troops was fixed, with the support of Rwandan and later by the Standby Joint Force consisting forces from members of the Southern African Development Community (SADC).

Cabo Delgado province, located in northern Mozambique, is rich in natural gas. Although the gas from the three projects approved so far has a destination, Mozambique has proven reserves of over 180 trillion cubic feet, according to data from the Ministry of Mineral Resources and Energy. With an approximate population of 30 million, Mozambique is endowed with natural resources. It is a member of the Southern Africa Development Community (SADC) and the African Union.

Continue Reading

Energy

The Messy Fate of Coal: War, Heat, and Instability Delay a Global Phaseout

Published

on

As Europe becomes increasingly divorced from Russian natural gas, Germany, Austria, Italy, Denmark, the UK, and the Netherlands recently announced plans to restart phased-out coal power plants for the coming winter if necessary. Ironically, European countries were reprimanding India and China last November for rewording a key goal of the Glasgow Climate Pact from the “phase-out” to the “phasedown” of “unabated coal power.” “China and India are going to have to explain themselves to the most climate vulnerable countries in the world,” said British MP and conference president Alok Sharma. And with an August 22 start to the EU’s ban on Russian coal nearing, the EU and UK are turning to South Africa and Botswana as their main coal supply alternatives, despite recently agreeing to help give South Africa $8.5 billion to decrease its dependence on coal through the 2021 Just Energy Transition Partnership (JETP). However temporary, Europe’s moves to bring back coal represent a step backwards from the UN Paris Climate Agreement goal of a coal-free EU by 2030 and the UK’s goal of being coal-free by October 1, 2024.

The loss of Russian natural gas is just one of many unforeseen obstacles delaying a global transition away from coal, which provides over one-third of the world’s electricity yet generates the most pollution and greenhouse gases. In India, the immediate task of preventing the country from becoming unlivably hot has been taking precedence over UN decarbonization goals for 2070. Amid a 120-degree heat wave this past May, coal shortages in 9 of 28 Indian states caused power outages of up to 14 hours per day. The lack of electricity for fans and air conditioners during the current heat wave has resulted in 90 deaths across India and Pakistan this year.

India has the world’s third-largest coal reserves in the ground, but its coal stockpiles have dwindled. This has hampered its efforts to close the gap between those with cooling systems and those without. Only 12% of Indians have air conditioning, and some 323 million (nearly equal to the entire US population) lack access to working fans and refrigerators, according to a May report by Sustainable Energy for All (SE4ALL). Many Indian farms are losing up to half of their produce as it rots in the heat in the absence of working fans.

Meanwhile, after mass blackouts last year, electricity demand in China has already set records this summer, due to heat waves and high factory activity amid its post-pandemic industrial rebound. In June, these strains on China’s grid prompted premier Li Keqiang to urge “tapping into advanced coal capacity” and to call for “efforts to ramp up efficient and clean coal power production… underpinning the push for renewables such as wind and solar power,” according to Chinese state media. In fact, over half of the new coal plants being built in the world today are in China, contrary to President Xi Xinping’s 2021 promise that China would reach peak coal use in 2025 and start phasing it down in 2026.

Xi’s current rhetoric has emphasized the need to balance lowering carbon emissions with maintaining social stability and productivity. In January, he said in a Politburo session that the goal of greenhouse gas reduction should not conflict with other priorities that “ensure the normal life of the masses,” like providing food, energy, and materials. “The gradual withdrawal of traditional energy must be based on the safe and reliable replacement by new energy,” said Xi.

But even as China produces and consumes half the world’s coal and continues to invest in new coal plants, its eventual transition away from coal could be sharp. China has rapidly developed alternative energy sources, such that now—despite being the world’s biggest polluter—it is a “clean energy powerhouse,” the world’s biggest investor in green energy and the world leader in solar, wind, and hydropower. In recent decades, China has dramatically reduced the cost of solar panels, wind turbines, and electric vehicles, to the world’s benefit. Shenzhen, the fourth-largest city in China, converted all of its over 16,000 buses and another 22,000 taxis to electric vehicles over a decade, with the help of national and local government mandates and subsidies. The province of Qinghai, population 6 million, has become a wind and solar showcase and ran on entirely renewable energy for a week. And China may soon become the world leader in nuclear energy as well: In November 2021, it announced plans to build 150 nuclear reactors (which emit no greenhouse gases or pollution) by 2035, more than the rest of the world has built in the past 35 years. In short, while China will continue to use coal as a bridge to the future, its success in developing alternative energy sources—along with its habit of building infrastructure, like coal plants, then tearing it down within a few decades—are signs that by China may be poised to make a dramatic shift away from coal by 2040, if not earlier.
 
China (57%) and India (51%) both get over half their electricity from coal today. They provide energy for 36% of the world’s population, much of which received electricity for the first time in the last decade or two. And in the ASEAN region, coal power has skyrocketed due to hyper-speed industrialization and plentiful available coal reserves, especially in Indonesia and Vietnam. Many ASEAN coal plants were built by China through the Belt and Road Initiative, and while many coal plants in the West are 40 or 50 years old, Southeast Asia’s are the youngest in the world, averaging under 12 years old. But the coal plant building spree in Southeast Asia may soon slow dramatically, as China, Japan, and South Korea, the region’s top three foreign funders of coal plants, have all recently announced that they are cutting funding for new coal projects overseas.

The West on the whole has managed to drastically reduce coal use, in the EU to roughly half 1990s levels and in the US to 1980s levels. But on closer inspection, the regions and countries within the West are heavily divided on coal. For example, France’s coal use is near zero, as 70% of its electricity comes from nuclear power. By contrast, coal provides nearly half the electricity in Poland, and it is still a significant power source in the Czech Republic, Germany, Bulgaria, and the UK. Only two EU countries still produce any coal at all, Poland (96%) and the Czech Republic (4%), making the region especially vulnerable to the upcoming EU ban on Russian coal.

US coal use peaked in the late 2000s, and since then, scores of coal plants across America have been retired or converted to natural gas plants, which are fed by the US fracking boom. But coal use varies widely across US states. For example, West Virginia still gets 88% of its electricity from coal and Indiana 47%, whereas Texas is at 20% and Vermont and Rhode Island are coal-free.

The coal divide also runs through Africa and Latin America. While both regions have largely avoided coal dependence, South Africa and Botswana are the exceptions. South Africa is world’s most coal-dependent nation, getting 90% of its electricity from coal. It has 19 of Africa’s 36 coal plants, while many African countries have none. Latin America enjoys plentiful hydropower as well as oil and gas reserves, and only 5% of its electricity comes from coal, with very few new coal plants planned. Under President Jair Bolsonaro, however, Brazil’s Mines and Energy Ministry last year published a nearly $4 billion plan to invest in “sustainable use of the national mineral coal.” And in January, Bolsonaro extended government subsidies for coal plants from 2027 to 2040 in Santa Catarina, one of Brazil’s coal-rich southern states. Bolsonaro’s initiatives are an attempt to boost the economies of southern Brazil, but they have drawn criticism domestically and abroad.

Australia is an energy paradox: a wealthy, modern country with massive natural resources and a population smaller than Texas, yet which relies on coal for around 75% of its electricity. There are many reasons for this. First, coal is abundant lucrative: Australia has the third-largest coal reserves in the world and is the world’s largest exporter of coal, mostly to Asia (although China banned Australian coal in 2020). Second, Australia is the driest inhabited continent, with very limited and unpredictable rivers to generate hydropower, which provides only about 5% of its electricity. And third, despite having one third of the world’s uranium stores, Australia has never had a nuclear power plant.

But the fate of coal power in Australia may shift dramatically in the next few years. The country is rapidly deploying wind and solar farms as the prices of turbines and solar panels drop, such that last December, the Australian Energy Market Operator (AEMO) announced that Australia is on track to cut its coal capacity by 60% by 2030. In February, Australia’s Origen Energy announced plans to shut down country’s biggest coal plant in 2025, seven years earlier than scheduled. In June, the state of Western Australia announced it will shut down its two remaining coal plants by 2030. And in July, The Australian Academy of Technical Sciences and Engineering projected that Australia could generate half its electricity from renewable sources by 2025—and 69% by 2030. If these predictions come true, Australia’s transition away from heavy coal dependence would be the fastest the world has ever seen.  

The global transition away from coal has been anything but smooth. It is possible that more regions that have made great progress in phasing out coal will be considering bringing it back, amid new unforeseen obstacles to energy security. And it could be decades before China and India, the behemoth coal consumers, start to cut back on coal significantly—especially as China has been investing heavily in clean coal research. But as cases like Australia and even China show, every day that coal hangs on, renewables are expanding and becoming cheaper. And this is a sign that an eventual end to the coal era could be on the horizon.

Continue Reading

Publications

Latest

South Asia5 hours ago

Politics of Pakistan: A Riot or an Opportunity

On 14th August, 1947 Pakistan appeared on the world map as the largest independent Muslim state of that time. Sixty-five...

New Social Compact14 hours ago

COVID- a way forward with Sustainability & Biodiversity

Since the onset of the COVID- 19 pandemic, a new unprecedented situation has arisen many new challenges including social, health,...

South Asia17 hours ago

Seventy-Five Years of India’s Independence

If anyone had asked Jawaharlal Nehru as he made his midnight speech on August 15 and freedom dawned, how he...

World News19 hours ago

‘Immensely bleak’ future for Afghanistan unless massive human rights reversal

The international community must dramatically increase efforts to urge the de facto authorities in Afghanistan to adhere to basic human...

Economy21 hours ago

The Policy of Sanctions and the Golden Horde Legacy

The modern policy of sanctions resembles, to some extent, the management practices of the Mongol Golden Horde. One of its elements was a system of labels...

International Law24 hours ago

What Is a Sovereign State?

Against the backdrop of the rapid collapse of the US-led world order, the question of which states will survive in...

World News1 day ago

IAEA: ‘Very alarming’ conditions at Ukraine’s Zaporizhzhia nuclear power plant

The situation at Ukraine’s Zaporizhzhia nuclear power plant has deteriorated rapidly to the point of becoming “very alarming,” Director General...

Trending