Governments worldwide have committed over $12tn to recover from the Covid-19 pandemic, spent over the next 5 years. Current estimates say the energy transition needs $1.4tn/year globally between 2020 and 2024 to get us on the path to meet the 1.5oC Paris goal. Clearly, there is an opportunity here. Although support for healthcare systems and the overall economy are the stated priority of governments, much of that $12tn is still not committed. … [Read more...]
Net Zero by 2050 technically and economically achievable, says Energy Transitions Commission report
Making Mission Possible, the latest report by the Energy Transitions Commission, describes a net-zero world by mid-century as technically and economically possible. The solutions are already available or close to being brought to market. What is still missing is the will to embrace, rapidly and at scale, the inevitable disruption that will ultimately deliver net-zero emissions, lower air pollution, cheaper energy bills, create new jobs and raise … [Read more...]
Europe could have subsidy-free Offshore Wind by 2023
A study has analysed offshore wind projects in 5 countries – the UK, Germany, Denmark, the Netherlands and Belgium – to show that wind farms due to be built after 2020 are converging towards a range of €50-70/MWh. It wasn’t long ago that such low prices were only predicted for 2050, say Iegor Riepin, Felix Müsgens (Brandenburg University of Technology), Malte Jansen and Iain Staffell (Imperial College London), writing for Carbon Brief. To make … [Read more...]
Waste Heat Recovery can help replace Poland’s District Heating coal
Three quarters of all district heating in Poland comes from burning coal. So the country is looking for ways to reduce this. It’s why subsidies are provided for combined heat and power (CHP) plants that burn either coal, gas or biomass, which all have lower emissions. But a report by IEEFA authored by Gerard Wynn, Arjun Flora and Paolo Coghe says that waste heat recovery (WHR) – currently unsubsidised – is both emissions free and can be … [Read more...]
Investing for tomorrow, because Energy subsidies will decline 25% by 2050 – analysis
IRENA has modelled energy subsidies to 2030 and 2050 for their pathway to meet the Paris targets. Here, Michael Taylor summarises their findings. Firstly, they estimate today’s global direct energy sector subsidies to be $634bn/year (2017 figures). The vast majority, $447bn, went to fossil fuels. (By the way, he points out that none of these figures include the externality costs - pollution, healthcare, environment - which equate to trillions and … [Read more...]
How much subsidy do EVs need to be competitive?
Despite a wide range of subsidies and incentives, battery electric vehicles (BEV) make up only 1.4% of new car sales in the U.S. That the effective battery cost is zero to the consumer doesn’t seem to be lifting that number any higher. Meanwhile, in Norway the percentage is a much more impressive 42%, but those subsidies and incentives are far higher: the effective battery cost is negative 385 $/kWh for a typical 60kWh battery pack, i.e. a very … [Read more...]
Coronavirus bailouts should be explicit, not hidden by CO2 tax cuts. And nothing for Oil
Many industries will be pleading their case for a Coronavirus bailout. Severin Borenstein at the Energy Institute at Haas explains why the oil industry should not be one of them. Oil prices, already on the slide, are indeed sinking lower thanks to the pandemic. But decarbonisation should be sending them that way anyway. And the oil price has always be artificially high thanks to the OPEC cartel and weak or complicit “competition” from non-OPEC … [Read more...]
2019-2024: competitive auctions will launch over 2/3rds of utility-scale renewables, says IEA
Government support for new utility-scale capacity is being replaced with competitive auctions, the surest sign that the commercial appetite for renewables - particularly solar PV and onshore wind - is growing strong. This article by the IEA pulls out the essential numbers from their annual Renewables 2019 report (their 5-year market analysis and forecast for renewable energy and technologies in the electricity, heat and transport sectors). The … [Read more...]
EVs should be getting cheaper. Instead they’re getting bigger
Manufacturing an EV is getting cheaper, but affluent consumers are buying bigger cars for the same money. If manufacturers are left to serve them first, they’ll leave until last the development of cheaper EVs, penetrating new markets, that would more rapidly accelerate the replacement of fossil fuel cars and therefore the transition. That leaves policy makers with a big problem with the “success” of EVs, explain Leonardo Paoli and Simon Bennett … [Read more...]
Germany 2021: when fixed feed-in tariffs end, how will renewables fare?
Starting in 2021 many of Germany’s existing “pioneer” wind turbines, solar PV installations and biogas plants – launched with generous price guarantees - will stop receiving fixed feed-in tariffs. That means renewable capacity may be shut down if they can’t find a new business model to run on. The new rules comes at a decisive time for Germany’s energy transition as it tries to increase renewables to meet emissions targets and gradually increase … [Read more...]
Energy security v Transition in Algeria, Egypt, Morocco, Turkey
Like most developing countries, the challenge of growing economies, increasing population and rapid urbanisation puts energy security above emissions reductions. So it is for Algeria, Egypt, Morocco and Turkey, says Duygu Sever in her report for IFRI Centre for Energy & Climate. In this article she explains that all four countries nevertheless have high renewables deployment potential, and have already embraced wind and solar. To accelerate … [Read more...]
China’s Solar Paradox: why invest today when prices keep dropping?
Josh Gabbatiss at Carbon Brief reviews a paper published in Nature Energy, showing how grid parity is already achievable today, subsidy-free, across all China’s 344 biggest cities. Consequently, China is already reducing solar subsidies and realigning policy to de-emphasise scale and re-focus on quality. So far, so good. But China now joins those developed nations where cheaper solar has thrown up another problem: why spend now when it’ll be … [Read more...]
Carbon-emitting gas, not renewables, is replacing U.S. nuclear
Ohio, USA, subsidises renewables. Now the Ohio State Legislature is fighting over a bill that will re-shape and extend that support to all clean energy, including nuclear. That’s how it should be, says Jim Conca. He reviews a report by regional transmission organisation PJM that says keeping nuclear plants open is far cheaper. Moreover, it’s far better for emissions. That’s because whenever a nuclear plant is shut down in the U.S. it is replaced … [Read more...]
$400bn in global fossil fuel consumption subsidies, twice that for renewables
At over $400bn in 2018, global fossil fuel consumption subsidies are more than double those for renewables. That makes sense while governments worldwide use energy subsidies to help poor consumers, and clean energy still makes up a smaller proportion of the global energy mix. But it makes the transition harder: cheaper fossil energy means more is consumed, and it’ll take longer for clean energy to compete it away. The IEA’s WEO Energy Analysts … [Read more...]
EU election risk: policymakers should go for real decarbonisation now while efficiency savings can help
With elections in May, the balance of opinion in Parliament is a climate policy risk factor on the minds of many in Brussels. The national draft 10-year energy plans, just in to the Commission, project widespread growth in costlier renewables. But populists who see climate as a globalist rather than nationalist-first agenda may prove hard to bring on side with an expensive and disruptive transition. The public will be influenced by climate … [Read more...]
Recent Comments