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TERRENUS ENERGY

Energy Transition

What does the green transition mean for energy jobs?

Workers in the Anglo Ashanti mine at a depth of about 330 metres in Obuasi, Ghana. Image: World Bank Photo Collection, CC BY-SA 3.0, via Flickr.

As calls grow for climate action, the shift from fossil fuels to cleaner power sources raises questions about who can access the new jobs, what skills they require and how much they pay.

From The Thomas Reuters Foundation

LONDON, Sept 14 (Thomson Reuters Foundation) – The energy crisis fuelled by Russia’s invasion of Ukraine has put renewed focus on how countries generate and use their power, with several European nations rushing to wean themselves off Russian gas amid a global shift to cleaner energy sources.

As the world seeks to decarbonise by switching from fossil fuels such as coal and oil to renewables like solar and wind, many energy workers now find themselves in the same position.

The rise of clean energy is raising questions about who has access to these new jobs, what skills they require, how much they pay, and what can be done to help communities that rely on traditional extractive industries make the green transition.

The Thomson Reuters Foundation spoke to climate experts to find out more about what the changing energy mix means for jobs.

How many green energy jobs are there?

About 65 million people work in the energy industry worldwide, and clean energy workers now account for more than half of them, according to a recent report by the International Energy Agency (IEA).

These clean energy jobs include workers in bioenergy supply, low-carbon power generation including nuclear and renewables, power grids and storage, manufacturing of electric vehicles, and energy efficiency, according to the IEA’s definition.

“It’s clear that the clean energy economy isn’t around the corner, it’s here today,” said Joel Jaeger, a research associate at the World Resources Institute, a think tank.

He said these jobs have been more resilient to the economic impacts of the pandemic compared to fossil fuel sectors, with oil and gas having not recovered their employment levels since 2020 despite the subsequent high prices of the two commodities.

If current international climate pledges are met, the IEA predicts that an additional 13 million workers will be employed in clean energy and related sectors by 2030, outnumbering the expected decline in traditional fossil fuel industries.

But if countries accelerate decarbonisation to get on a path to net zero by 2050, that number of expected jobs would double, the IEA says.

This transition could also change the gender imbalance of the energy industry: according to the International Renewable Energy Agency (IRENA), women hold 32 per cent of jobs in renewable energy, on average, compared to 22 per cent of those in oil and gas.

Workers weigh a bag of coal outside a warehouse in an industrial area in Mumbai, India May 31, 2017. Image: REUTERS/Shailesh Andrade

Where are the green jobs located?

Jobs in clean and renewable energy are located around the world, but the biggest and fastest growing workforce is in Asia.

China, home to almost 30 per cent of the global energy workforce, dominates the manufacturing of solar panels – also known as photovoltaics (PV) – and employs nearly half of those working in the field, according to the IEA.

“Different regions are further along than others,” said Jaeger, pointing out that the Middle East and Russia are still dominated by traditional fossil fuel jobs.

“Emerging market and developing economies are going to have more jobs no matter what, because those economies are generally a lot more labour intensive,” he said, citing the example of India where clean energy jobs now outnumber fossil fuel roles.

China’s domination of solar PV manufacturing was partly made possible because the equipment is easier to export than other technologies, said Aurélien Saussay, an economist at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics.

Wind turbines, by comparison, have strong regional hubs in northern Europe and the United States which are less threatened by competition from Asia, he said.

Are they high-quality jobs?

Energy jobs in both new and traditional sectors tend to be higher-skilled and better-paid compared to the rest of the economy.

About 45 per cent of energy roles are high-skilled compared to a quarter of general jobs, according to the IEA.

However, workers in coal, oil and gas tend to enjoy higher wages than those in renewable industries like wind and solar.

In the United States, for example, workers in natural gas and coal have a wage premium of 59 per cent and 50 per cent respectively compared to national median hourly pay, far higher than the 36 per cent for wind and 28 per cent for solar, according to the US Energy and Employment Report.

This may be because traditional energy jobs tend to be more unionised and have benefitted from decades of labour representation, while clean energy sectors have a larger share of part-time or contract work, according to the IEA’s report.

This is especially true in emerging markets and developing economies, the IEA said, including in India where coal workers are paid around three to four times the national average.

Analysts also say that more lower-skilled jobs are becoming available as new clean energy sectors move from the research and development phase towards installation and construction of the new infrastructure.

This shift could mean new clean jobs offer less in terms of wages and security, yet are more accessible to those with lower levels of education.

Can fossil fuel workers transition to green jobs?

The good news for fossil fuel energy workers is that many of their skills are transferable in a greener economy.

Those working on offshore oil rigs, for example, have many skills that would be useful to offshore wind farms, while project managers for traditional energy infrastructure will likely be well-equipped for similar positions in new industries.

The biggest issue, however, according to the economist Saussay, is that clean energy roles will not necessarily be created in the same places as traditional jobs which were tied to fossil fuel resources in relatively remote areas.

“They tended to be creating highly-paid jobs in areas that had high unemployment and low wages,” Saussay added, highlighting traditional industrial regions around the world.

By comparison, clean energy jobs are more spread out and not concentrated in economically deprived areas.

He said this underlines the need to retrain and reskill traditional energy workers, while creating new employment prospects where they live to avoid social dislocation.

“If you don’t put in place accompanying policies, what you end up with is a community that is bereft of economic opportunity,” Saussay said.

Author: Jack Graham

AEMO reveals new roadmap for rapid switch to renewables

Work has already commenced on the Victoria-NSW Interconnector (VNI) Upgrade project. Image: Transgrid

The Australian Energy Market Operator has declared approximately $12.7 billion of investment in new transmission lines should begin “as urgently as possible” to accelerate the transition to renewable energy and energy storage, replace exiting coal-fired power plants, and deliver a more efficient and effective grid in eastern and south-eastern Australia.

From pv magazine Australia

The Australian Energy Market Operator (AEMO) has today published the final version of its 2022 Integrated System Plan (ISP), outlining a 30-year roadmap of investments for what it said is “a true transformation” of the National Electricity Market (NEM), from fossil fuels to firmed renewables.

AEMO said the 104-page document, developed with involvement from more than 1,500 NEM stakeholders, calls for levels of investment in generation, storage, transmission and system services that exceed all previous efforts combined.

“Australia is experiencing a complex, rapid and irreversible energy transformation,” AEMO chief executive officer Daniel Westerman said in a statement.

“The 2022 ISP informs Australia’s energy transformation, based on an optimal development path (ODP) of essential transmission investments that will efficiently enable low-cost, firmed renewable energy to replace exiting coal generation.”

Australia’s traditional fossil-fuel fired generators are being replaced by consumer-led distributed energy resources (DER), utility-scale renewable energy, and new forms of dispatchable resources to firm those renewables but AEMO said it is critical the NEM provide the power system assets and services to ensure these resources are efficient, safe, reliable and secure.

The market operator estimates at least 10,000 kilometres of new transmission is required to connect a nine-fold expansion of wind and solar farm capacity and a near five-fold increase in distributed solar by 2050 and to treble the firming capacity from alternative sources to coal, including utility-scale batteries, hydro storage, gas-fired generation, and smart behind-the-meter virtual power plants (VPPs).

Five transmission projects across New South Wales, Victoria and Tasmania have been highlighted as top priorities with AEMO saying they should progress as urgently as possible. The five projects – HumeLink, VNI West, Marinus Link, Sydney Ring and New England REZ Transmission Link – are all currently being assessed for regulatory approval or should begin that process soon.

The five priority projects are in addition to another seven transmission links, including Project EnergyConnect and the Victoria-NSW Interconnector Minor upgrade, already under development.

Map of the network projects in the optimal development path. Image: AEMO

Westerman said the five priority projects would optimise benefits for all who produce, consume and transport electricity in the market; and provide investment certainty.

“These transmission projects are forecast to deliver $28 billion in net market benefits, returning 2.2 times their cost of $12.7 billion, which represents just 7% of the total generation, storage and network investment in the NEM,” he said.

As part of developing the ISP, AEMO and stakeholders identified the most likely future for the NEM, having considered ageing generation plants, technical innovation, economics, government policies, energy security and consumer choice.

The ISP indicates the NEM must triple its overall generation and storage capacity by 2050 if it is to meet the economy’s electricity needs in the ‘step change’ scenario.

“The step change scenario forecasts annual electricity consumption from the grid will double by 2050, as transport, heating, cooking and industrial processes are electrified and 60% of current coal generation exiting by 2030,” Westerman said.

“To maintain a secure, reliable and affordable electricity supply for consumers through this transition to 2050, investment is required for a nine-fold increase in grid-scale wind and solar capacity, triple the firming capacity (dispatchable storage, hydro and gas-fired generation) and a near five-fold increase in distributed solar.”

Today the NEM installed capacity of nearly 60 GW delivers approximately 180 TWh of electricity to industry and homes per year. In Step Change, utility-scale generation and storage capacity would need to grow to 173 GW and deliver 320 TWh per year to customers by 2050 to serve the electrification of our transport, industry, office and homes.

The ISP forecasts that variable renewable energy (VRE) capacity will increase from 16 GW currently to 141 GW by 2050. Additionally, distributed PV is forecast to increase from 15 GW to 69 GW over the same period. To firm that VRE and distributed PV, 63 GW of firm dispatchable capacity and additional power system security services will be needed by 2050.

Forecast NEM capacity to 2050, Step Change scenario. Image: AEMO

AEMO also expects that coal-fired generation will continue to withdraw faster than announced, with 60% of the eastern seaboard’s coal fleet to expire by 2030.

“Competition, climate change and operational pressures will intensify with the ever-increasing penetration of firmed renewable generation,” it said. “Current announcements by thermal plant owners suggest that about 8 GW of the current 23 GW of coal-fired generation capacity will withdraw by 2030. In the step change scenario, ISP modelling suggests that 14 GW would withdraw by 2030.”

Westerman said the need to cost-effectively deliver the investment in firmed renewables has gathered momentum in recent months.

“We’ve recently seen market dynamics exhibiting the step change scenario, including accelerated coal-fired power station closures. In addition, generation unavailability and high commodity prices further highlight the need to invest in the transmission plan outlined in the ISP to support firmed renewables,” he said.

“The ISP will help industry participants, investors, governments and communities plan for the decarbonisation of the power system to deliver low-cost, firmed renewable electricity with reliability and security.

“Importantly, the ISP will help meet state and national climate targets, and contribute to economic growth through low-cost, reliable energy.”

Author: David Carroll

‘The villain is the framework’: crisis an opportunity to review regulation requisites

Gas and coal generators’ role in exacerbating the unfolding energy crisis in Australia has been harshly criticised, but Dufty points out companies are simply following the logic of profit within a framework that makes such practices possible. Image: Bluescope

Australia’s energy crisis affords it an intricate, if painful, look at exactly where and how our current electricity regulations no longer fit their purpose. According to analyst Gavin Dufty, now is the time to retrain our eyes on the prize: designing a new framework suitable for the future decentralised system. “But everybody needs to put their guns back in their holsters,” Dufty tells pv magazine Australia.

From pv magazine Australia

With Australia’s National Electricity Market spot market now suspended, an extraordinary move from the market operator yesterday to cool a fiery situation, the emphasis now needs to be on what can be learned from the meltdown, says Gavin Dufty, an energy analyst with St Vincent de Paul.

“Here’s an opportunity,” he tells pv magazine Australia. “It’s about recasting regulatory framework so it’s fit for purpose.”

“The world is watching us,” he adds. “We actually get to be leaders.”

“It’s not just one tweak. Everything needs to move together in concert to create the new orchestra or architecture for the future energy market because this one is not going to work, and it’s not working.”

Our current regulatory framework, built for a centralised fossil fuel system, uses a top down approach. Now, as electricity is increasingly generated on rooftops and in paddocks, the system needs to reflect this shift from a handful of mega generators to a collection of small technologies. That is, it needs to be designed for the bottom up future.

In the days days, the operator (AEMO) and ministers have come out against gas and coal generators’ role in exacerbating the situation, and therefore jeopardising an essential service, Dufty is quick to point out the companies are simply following a logic made accessible to them.  “They’re doing what they’ve been told to do for a hundred years”: maximise profits.

“Maybe the villain is the framework,” he posits.

Under Australia’s current framework, he says, the cost of the crisis will eventually wash up with consumers, but this doesn’t have to be the case. “Where it falls depends on how governments intervene,” he says. “In unusual times, you probably need unusual transition methods.”

He believes the electricity system is moving from a goods market to service market, which means companies operating within it should have a duty of care. This is especially true since the market delivers an essential service.

Moreover, Dufty says there needs to be a laser focus on consumer households and delivering value to them.

“Follow the money,” he says, “in the next 10 years, if you have five million Australian households investing in electricity assets like PV, EVs [electric vehicles], batteries and the like, that’s $250 billion worth of energy assets installed behind the metre.”

“The investment in energy is going to happen and those consumers will want value for their investment.”

The role of industry and the framework which governs it is to make sure that value is realised.

Solaray Energy says its inquiries and battery sales have surged since the federal election in May. Image: Solaray Energy

St Vincent de Paul were one of the primary proponents of two-way pricing, which quickly came to be dubbed a ‘sun tax’ and fiercely criticised. Be that as it may, the vision is not without merit – especially when taking into account future technologies beyond solar. The Australian Energy Market Commission agreed, heralding in the change last year.

The changes, for Dufty, are imperative because they shine a light on the other side of the electricity grid balancing equation, the side often left out of the discussion: load flexibility.

Creating and compelling load flexibility, that is changing when electricity is used, is the other side of the generation drama. As others have pointed out before him, jamming more solar into the situation simply won’t work. The penetrations are already so high that much of the energy generated in the day is simply going to waste and causing greater imbalances in the night.

“There isn’t one magical solution,” he says, “diversity is the key here.”

Dufty is adamant what’s good for individual households and what is good for society and the larger electricity network don’t need to compete. But to ensure those two forces aren’t mutually exclusive, the regulatory framework needs to change drastically.

“This is not incremental change. We might have step by step,” he says, but in the end it must amount to a full redesign, especially in terms of consumer protections.

Likewise complementary frameworks like the Small-scale Renewable Energy Scheme (SRES) and the National Electrical and Communications Association (NECA) need to be reviewed to ensure they remain fit for purpose as well, Dufty says.

Author: Bella Peacock

China’s massive hydro energy storage goals may be getting bigger

China has been eyeing a major pumped hydro build-out since at least last year. Image: Pixabay

From Bloomberg

BEIJING (BLOOMBERG) – China’s biggest dam builder says the country is launching an even-larger-than-expected campaign to build hydro energy storage to complement renewable power.

The nation will start construction on more than 200 pumped hydro stations with a combined capacity of 270GW by 2025, Mr Ding Yanzhang, chairman of Power Construction Corp of China, the country’s largest builder of such projects, said in a Monday (June 13) commentary in the Communist Party-run People’s Daily.

That’s more than the capacity of all the power plants in Japan, and would be enough to meet about 23 per cent of China’s peak demand.

It would also be a massive increase from what China proposed just three months ago in its 14th five-year plan for energy development, when officials said the country wanted to have 62GW of pumped hydro in operation and another 60GW under construction by 2025.

PowerChina did not immediately respond to an e-mail seeking comment, and the National Energy Administration (NEA) did not answer calls to its Beijing office.

Hydro storage technology dates back more than a century.

Water is pumped into an uphill reservoir using electricity when demand is low, and then generates power when needed by letting gravity carry the water downhill through turbines.

It can be paired with China’s rapidly growing fleet of solar panels and wind turbines to generate electricity when the sun isn’t shining and breezes aren’t blowing.

China has been eyeing a major pumped hydro build-out since at least last year. In August, a draft NEA document identified the potential for 680GW of pumped hydro in the country, and mooted a possible goal of starting construction of 180 gigawatts by 2025.

The final version of the plan released in September toned down the scale, but still called for 120GW of capacity operating by 2030.

The entire world had 158GW of hydro storage at the end of 2019. China is also ramping up plans to deploy newer forms of energy storage such as batteries, with the country’s largest grid saying it hopes to have 100GW of such capacity available by 2030.

New model for grid-forming inverter operation

A transformer-coupled, grid-tied inverter. Image: Wikimedia Commons, Towel401

Scientists in the United States have developed a new model to allow utilities to use grid-forming inverters in order to better renewable energy intermittency. They described the inverter main circuit representation, the droop control, and the fault current limiting function.

From pv magazine

Scientists from the US Department of Energy’s Pacific Northwest National Laboratory (PNNL) have developed a model for power utilities to operate grid-forming (GFM) inverter–based resources.

“The model specification was recently approved by the Western Electricity Coordinating Council (WECC), a non-profit corporation that assures reliable electricity in 14 western US states, two Canadian provinces, and northern Baja, Mexico,” the research group stated. “The approval means that the model is available to be integrated into commercially available grid simulation tools used by thousands of utilities in North America and other parts of the world.”

The researchers said their work built on previous work demonstrating that grid-forming inverters can operate microgrids without conventional synchronous power generators. “The outcomes of microgrid research suggested that grid-forming inverters can ensure system stability for integrating renewable energy sources into future power grids,” they emphasized.

In their recent work, published on the WECC website, the PNNL scientists described the inverter main circuit representation, the droop control, and the fault current limiting function. “This model applies to energy storage systems and photovoltaic (PV) systems,” they specified.

“Our preliminary simulation studies based on the model show that grid-forming inverters can impact power system stability in a very positive way,” said Song Wang, president of the WECC Modeling and Validation Subcommittee. “We believe the work done by PNNL will greatly help the utility industry better understand grid-forming inverters and their potential impacts on power systems.”

Looking forward, the US group said it wanted to create an ecosystem for grid-forming inverters and unify different models for grid-forming technologies and their diverse applications.

Author: Emiliano Bellini

3 ways to speed up Singapore’s transition towards a green future: Grace Fu

Minister for Sustainability and the Environment Grace Fu highlighted three ways Singapore can accelerate sustainability and climate action. Image: ST FILE

From The Straits Times

SINGAPORE – The Republic must keep up the international momentum in addressing the threat of climate change amid pressing priorities such as the Covid-19 pandemic, rising inflation and geostrategic challenges, said Minister for Sustainability and the Environment Grace Fu on Tuesday (June 7).

Speaking at the gala dinner of Temasek’s annual sustainability conference – Ecosperity Week – Ms Fu highlighted three ways the nation can accelerate sustainability and climate action.

1. Catalyse action towards inclusive transition

As the carbon tax is progressively raised to $50 to $80 per tonne by 2030, the revenue will support the transition to a greener economy through incentivising low-carbon solutions and cushioning the impact on businesses and households.

Businesses increasingly recognise the opportunities in the circular, low-carbon economy, while the choices of individuals can also play a role, said Ms Fu.

“Individual action may feel insignificant and is indeed insufficient. However, our collective actions will enable us to achieve our ultimate common goals,” she added.

If consumers avoid disposables, buy locally farmed vegetables and fish, and choose energy-efficient appliances, for instance, these choices will create ripple effects that accelerate the development of more sustainable products.

From the middle of next year, large supermarkets will implement a disposable bag charge, which aims to encourage the public to use reusable bags and be more judicious in their use of disposables.

2. Unlock more sustainable solutions

Technologies and solutions to decarbonise still remain out of reach or are not yet commercially viable, but industry collaborations can bring about new solutions, said Ms Fu.

Last month, Singapore joined the First Movers Coalition with eight other nations, which will allow companies to harness purchasing power and supply chains to create early markets for innovative low-carbon technologies.

This serves as a launchpad for them to reach commercial scale and could open doors for local businesses to innovate with like-minded partners.

Ms Fu also cited the Jurong Island Circular Economy study last year, which analysed the energy, water and chemical waste from 51 companies on the island.

The study has provided insights on how to reduce resource use and boost Jurong Island’s competitiveness and sustainability.

A new research institute focusing on how to shrink the carbon footprint of the industrial sector – responsible for about 60 per cent of the country’s total emissions – was also set up on Jurong Island earlier this year.

One focus area of the Institute of Sustainability for Chemicals, Energy and Environment is on reducing or removing planet-warming emissions.

This can be done through carbon capture, utilisation and storage technologies – which aim to capture greenhouse gases released from industrial processes before they reach the atmosphere, and then either convert them into useful substances, such as chemicals or store them underground.

The institute was set up by the Agency for Science, Technology and Research, which is working with industrial partners and other government agencies to study and plan for the development of a carbon capture and utilisation translational test bed on Jurong Island.

3. Specialise in green finance and carbon services

Ms Fu noted that Singapore is highly disadvantaged by its lack of natural renewable energy sources, as it does not have large rivers to draw hydropower or vast lands for wind turbines.

But with its reputation as an international financial hub, it is well placed to support countries with untapped natural renewable energy sources through the trading of carbon credits, she added.

For example, polluting companies can buy carbon credits from a renewable energy plant to offset and compensate for their own emissions.

And with the Article 6 rulebook on international carbon markets finalised at the United Nations Climate Change Conference last year, Singapore can help propel the growth of green finance and carbon services in the region, said Ms Fu.

“This will enable businesses to access the capital they need to innovate, operationalise, and scale their green projects,” she added.

In March, Singapore and Indonesia inked a partnership, where they will collaborate on carbon pricing and markets, and also explore financing solutions in carbon credit projects.

Author: Shabana Begum

‘Clear winds of change’ in Southeast Asia

From pv magazine 05/2022

Siemens released its “Asia Pacific Energy Transition Readiness Index” in April, and it reported that the region scores very low on the index, at 25%. It said this represents a “solid foundation, but there is a still a long way to go.” One of the key findings was that policy settings need to be addressed. You have been very critical of public policy in support of renewable energy adoption in Southeast Asia. What’s your reaction to this score from Siemens?

The Siemens result isn’t a surprise because if you look at the actual deployment of renewable energy, then Southeast Asia is a laggard. However, I think that we can now finally detect very clear winds of change. I will take you through a quick tour of the region to explain that a bit further.

Starting with the richest country in Southeast Asia, Singapore. In October 2021, Singapore issued a request for proposal (RfP) for companies to tender to supply it with renewable energy and stated its goal that at least 30% of its electricity supply should come from renewables by 2035, while releasing expert studies that its power sector can go net zero by 2050. That is seismic change in the positioning of Singapore in terms of renewable energy. Previously, Singapore was always saying that it didn’t have space [for renewable energy], because it is a small country. Now it has moved decisively to rely on renewable energy nonetheless and issue an RfP to developers to build that capacity around Singapore and then export it to Singapore.

Vietnam, as you know, has already been at the vanguard because it achieved a record-speed deployment of renewable energy in 2019/20/21 – and Vietnam is now up there with the best of the world in terms of what it is doing on renewables.

The Philippines is also in very good shape because it has legally binding Renewable Portfolio Standard obligations imposed on the utilities. These force the utilities over time to increase their renewable energy percentage. So, when we talk about Southeast Asia, I think that Singapore, Vietnam, and the Philippines are now in line with the most progressive countries on renewable energy.

If those three are the leaders, how would you describe the laggards?

In terms of the big markets, there is Thailand, Indonesia, and Malaysia. I would say in all three cases we are seeing clear movement as well, although there are no overarching nor ambitious goals that have been announced. Indonesia has had a goal for a while, but it is not delivering on it on the ground – however, we do see things changing at the developer level across the country. In Thailand we see developers gearing up for a change in the posture of the regulator. And Malaysia has been making some progress on renewables.

We should layer into this what is going on in the gas markets. A lot of these countries are highly dependent on gas. For example, 95% of Singapore’s electricity is powered by natural gas. A large proportion [of electricity generation] is similarly dependent on gas, such as in Thailand. With gas multiplying in price by anywhere between a factor of two and 10, it is very clear that people are taking another look at the sun and the wind. I expect all of these countries to ramp up their efforts because of the volatility in the gas markets, on which a lot of them are dependent. Out of all these countries, only Indonesia is energy independent.

And while Indonesia’s energy independence is based on coal, there was a recent report from Rystad Energy that noted that gas production in the region has been declining for many years and will never recover.

That’s correct and strengthens the argument: The volatility of supply and price of natural gas is a reality all of ASEAN are aware of today and thinking through.

Something that was promising but appears to have been snuffed out, was the 1 GW solar auction in Myanmar. The recent military coup has stalled progress on the successful projects awarded in the tender. Do you have any information as to whether the solar development plans will get back on track?

I think you have to ask some of the developers who were bidding to find out more. But the short of it is that Myanmar became unbankable, and it doesn’t have anything to do with renewable energy itself, but because of political risk. But I should note that even TotalEnergies stopped investing in fossil fuels in Myanmar. And if Total, which is notorious for investing in all sorts of high-risk projects and countries, is not investing in Myanmar, then I am not sure that renewables has anything to do with that conversation at all.

Looking at Indonesia, I am aware that the International Energy Agency (IEA) has been doing a lot of work with the Indonesian government. How encouraging is that kind of work?

It is encouraging! And a lot of people have been working closely with the Indonesian government, effectively nudging them forward but also counteracting a lot of the propaganda that comes from the coal industry against renewables.

Activity on the ground doesn’t lie, and what we do see is small Indonesian renewable energy developers popping up all over the place and starting to develop deals, in a way that we were not seeing even a year ago. That is a very good sign because it means that the country is communicating that it is turning the corner on renewables. Usually, you need to watch what the locals are doing to get an inkling as to what the trend might be. That certainly was not the case a year ago. So, the IEA and everyone else working with the government helps, because it helps set the direction of travel.

In Indonesia, there is state-owned PLN, a vertically integrated utility. That is not an uncommon situation in Southeast Asia. Do you see that as being a positive or an inhibitor of renewable energy development in the region? Because we know that these kinds of utilities have a captive market and would want to maintain it.

Personally, I think it is neutral. If we contrast Vietnam with Indonesia, both have the same type of setup. You have PLN in Indonesia and EVN in Vietnam and both have monopoly positions. However, Vietnam built renewables at the fastest pace globally for a couple of years, while Indonesia did nothing. So, it is not just about the structure of your utility system for the installation of renewable energy. But there are also liberalised energy markets that work better than others. It is certainly one factor, but it is neither the leading factor nor the least important.

Much more importantly, it is about political will. What we need in Indonesia is to have the political will to make that decisive turn to renewables, so that the monopoly government owned utility gets with the program. It is not going to do it of itself and on its own for precisely the reasons that you mentioned.

And from Vietnam, can we deduce that when given the right signals in terms of the adoption of renewables, that things can move very quickly?

Yes we can. All it took in Vietnam was political will and a determination to accelerate renewable energy deployment. Then, it happened, very fast, because renewable energy is cheaper and cleaner and preferred by local communities.

Author: Jonathan Gifford

Transgrid builds high-voltage interconnector to link Australian states

Image: AER

Transgrid, the transmission network owner in the Australian state of New South Wales, has started building its section of the AUD 2.3 billion ($1.64 billion) Project EnergyConnect. The high-voltage electricity transmission interconnector will link power grids across three states, unlocking gigawatts of planned renewables.

From pv magazine Australia

Transgrid has confirmed that work has begun on the New South Wales section of the 900-kilometer Project EnergyConnect, which will link the grids of New South Wales, South Australia, and Victoria, while supporting the development of new wind, solar and energy storage projects.

Project EnergyConnect, a joint venture between Transgrid and South Australian network operator ElectraNet, will link Wagga Wagga, New South Wales, to Robertstown, South Australia. It will also include an additional “spur” link in northwestern Victoria. The interconnector will provide 800 MW of nominal transfer capacity in both directions and is expected to unlock about 5.3 GW of new renewable energy projects.

The project is a critical link in the National Electricity Market (NEM), with proponents claiming it will enhance power system security. Transgrid CEO Brett Redman said the project “will help deliver the grid of the future.” He also said the project, Australia’s biggest electricity interconnector to date, will increase wholesale electricity competition and help drive down electricity prices.

ElectraNet Interim Chief Executive Rainer Korte said the project will improve energy security in all states, while accelerating the transition to a grid based around wind, solar and storage.

EnergyConnect is a landmark project of national significance that will enable more renewable energy and improve the affordability, reliability, and security of electricity supply,” he said.

Project EnergyConnect will involve the installation of more than 9,000 kilometers of cabling, and the erection of 1,500 new transmission towers, using more than 30,000 tons of steel. Construction of the eastern portion of the project is expected to start in 2023, with the full project set for completion by 2024.

Author: David Carroll

World in one of the most severe energy crises since 1970s: WEF

UN Secretary General Secretary General Antonio Guterres called the short-sighted rush to fossil fuels such as coal and LNG as “madness”. Image: Reuters

From The Straits Times

DAVOS – The war in Ukraine, as well as the pandemic and the quick economic rebound in its aftermath, significantly disrupted energy transition efforts.

This has left the world in one of the most severe energy crises since the 1970s, said the World Economic Forum (WEF) in a new report titled Fostering Effective Energy Transition 2022.

The pace of energy transition needs to be supercharged for the world to keep to its sustainability goals, it noted.

United Nations Secretary-General Antonio Guterres drew attention to the energy crisis in an address last week (May 19), noting that Russia’s assault on Ukraine will likely have major implications for global heating targets.

Many countries are stepping up the use of coal or imports of liquefied natural gas as alternative sources to Russian energy, he noted, calling the short-sighted rush to fossil fuels “madness”.

WEF, in its latest energy transition report, called for urgent action by both private and public actors to ensure a resilient transition.

This “urgency for countries to accelerate a holistic energy transition is reinforced by high fuel prices, commodities’ shortages, insufficient headway on achieving climate goals and slow progress on energy justice and access”, it said.

Mr Roberto Bocca, head of energy, materials and infrastructure at WEF, said: “Countries are at risk of future events compounding the disruption of their energy supply chain at a time when the window to prevent the worst consequences of climate change is closing fast.”

He added: “Now is the time to double down on action.”

WEF’s report detailed key recommendations for governments, companies, consumers and other stakeholders on measures to advance energy transition.

Countries will need to prioritise efforts to ensure a resilient energy transition and diversification of the energy mix, it stated.

Diversification needs to be pursued on two fronts: Countries need to review their domestic energy mix and consider their fuel and energy suppliers in the shorter term.

Most countries rely on just a handful of trade partners to meet their energy requirements and have a deficient diversification of energy sources, providing limited flexibility to deal with disruptions, said WEF.

The report noted that of 34 countries with advanced economies, 11 rely on only three trade partners for more than 70 per cent of their fuel imports.

More countries need to make binding climate commitments, create long-term vision for domestic and regional energy systems, attract private-sector investors for decarbonisation projects and help consumers and the workforce adjust, the report added.

Author: Shefali Rekhi

Energy and Environmental Considerations in the Metaverse

Image: Unsplash/Shahadat Rahman

The tremendous popularity of social networks and advances in virtual reality (VR) and distributed ledger technology are helping to usher in a new technological frontier: an emerging computer-generated universe often called Metaverse

The Metaverse allows users to do almost everything they do in real life: run businesses, buy real estate and build virtual office spaces, sign and enforce contracts, interact with colleagues, trade artwork and other digital assets in the form of non-fungible tokens, and more. Central to the emerging Metaverse ecosystem is blockchain technology, decentralized public ledgers that record the ownership and sale of cryptographic assets, including non-fungible tokens that can represent parcels within a metaverse, without the need for third-party intermediaries by using trustless consensus protocols.  

Blockchain and Energy Usage

Because the proof of work (PoW) consensus protocols that underpin many of the most popular blockchains, including Ethereum and the Bitcoin mainnet, consume large amounts of energy, substantially more energy production will be necessary to sustain the growing Metaverse. For example, Intel estimated in December 2021 that our global computing infrastructure needs to be 1,000 times more powerful to sustain the Metaverse. And a recent study by the University of Cambridge concluded that if Bitcoin were a country, it would be in the top 30 energy users worldwide.[1]

Corporate Responses to Blockchain Energy Uses 

The energy demands of PoW blockchains have led many companies to consider how that energy is generated. For example, in 2021, Tesla suspended accepting vehicle purchases via Bitcoin because the company was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” adding that it would resume its use of blockchain technologies when mining shifted to more renewable energy sources.

Some blockchain mining companies have made that shift to renewable energy, like Canadian-based Bitfarms, which powers 100 percent of its operations by hydroelectricity. Similarly, Google has committed to operating on carbon-free energy in all of its data centers by 2030. Microsoft also intends to be “carbon negative” by 2030, and Amazon Web Services has a goal of powering its operations with 100 percent renewable energy by 2025. Institutional investors may also drive the shift to renewable energy use as their investment decisions, including in digital assets, have been shaped increasingly by the consideration of environmental, social, and governance (ESG) factors, including energy use.

Perhaps with this increased renewable energy demand in mind, the US Energy Information Agency expects 62 percent of all new US electric generation capacity in 2022 to come from solar and wind. Concurrent with the development of new renewable energy sources, other companies are working to develop less energy intensive blockchain technologies, including so-called proof of stake consensus protocols that do not use mining to validate transactions.

Authors: Daniel J Deeb, Alex Garel-Frantzen

Source: https://www.natlawreview.com/article/energy-and-environmental-considerations-metaverse