Renewables will dominate world’s energy needs, says global body

Renewables will dominate world’s energy needs, says global body

By Joshua S Hill, on 11 April 2019

Renewable energy could become the dominant source of energy across the world, provide up to 86% of global power demand under a scenario in which deeper electrification means that electricity’s share of final energy consumption jumps from its current levels of 20% to 50% by 2050.

A new report published by the International Renewable Energy Agency (IRENA), this week at the Berlin Energy Transition Dialogue and entitled Global Energy Transformation: A Roadmap to 2050, charts a pathway to accelerating the transformation of the global energy mix to  meet climate objectives, create jobs and foster economic growth.

IRENA says stepping away from reliance on fossil fuels like coal, oil, and gas is key to this transformation, and electrification delivers the best pathway. This includes the move to more electric vehicles and to using electricity for heating and cooling, which can be supplied by wind and solar.

IRENA says that under this scenario, energy-related CO2 emissions would decline 70% below today’s levels – of which, 75% can be achieved through renewable energy and electrification technologies.

Renewable energy sources would provide the bulk of global power demand, under such a scenario, with as much as 86% of demand, driven by as many as 1 billion electric vehicles and electrified heating & cooling, as well as the emergence of renewable hydrogen.

Under such a plan, then, renewable energy could supply two-thirds of final energy consumption.

“The race to secure a climate safe future has entered a decisive phase,” said newly-installed IRENA Director-General Francesco La Camera. “Renewable energy is the most effective and readily-available solution for reversing the trend of rising CO2 emissions. A combination of renewable energy with a deeper electrification can achieve 75 per cent of the energy-related emissions reduction needed.”

The pathway laid out by IRENA would also have significant economic benefits, saving the global economy between $65 trillion and $160 trillion – or, put another way, between $3 and $7 per each $1 spent on the energy transition – helping the economy to grow by 2.5% in 2050.

“The shift towards renewables makes economic sense,” La Camera continued. “By mid-century, the global economy would be larger, and jobs created in the energy sector would boost global employment by 0.2 per cent.

“Policies to promote a just, fair and inclusive transition could maximise the benefits for different countries, regions and communities. This would also accelerate the achievement of affordable and universal energy access. The global energy transformation goes beyond a transformation of the energy sector. It is a transformation of our economies and societies.”

Unfortunately, at the same time as it lays out a pathway forward, the IRENA report also warns that current action is lagging well behind what is necessary.

The authors write that, “Despite clear evidence of human-caused climate change, support for the Paris Agreement on climate change, and the prevalence of clean, economical and sustainable energy options, energy-related carbon dioxide (CO2) emissions have increased 1.3% annually, on average, over the last five years.”

Their conclusion? “The gap between observed emissions and the reductions that are needed to meet internationally agreed climate objectives is widening.”

“The energy transformation is gaining momentum, but it must accelerate even faster,” concluded La Camera. “The UN’s 2030 Sustainable Development Agenda and the review of national climate pledges under the Paris Agreement are milestones for raising the level of ambition.

“Urgent action on the ground at all levels is vital, in particular unlocking the investments needed to further strengthen the momentum of this energy transformation. Speed and forward-looking leadership will be critical – the world in 2050 depends on the energy decisions we take today.”

The authors of the report urge national policymakers to focus on zero-carbon long-term strategies as well as boosting and harnessing systemic innovation such as fostering smarter energy systems through digitalisation and coupling end-use sectors – particularly the transport and heating & cooling sectors – with greater electrification.

The report also found that, while additional investments needed is $15 trillion by 2050, this is nevertheless 40% down compared to IRENA’s previous analysis “due in large part to rapidly falling renewable energy costs as well as opportunities to electrify transport and other end uses.”

Source: renewables.seenews.com

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UAE plans $163 billion spend on sustainable energy

UAE plans $163 billion spend on sustainable energy

The UAE will invest Dh600 billion ($163 billion) until 2050 to meet the growing energy demand and ensure the sustainable growth of the economy, said the Dubai Electricity and Water Authority (Dewa) in a new report.

The UAE has taken early steps to bid farewell to the last barrel of oil, and achieve a balance between development and maintaining a clean, healthy, and safe environment. The UAE Energy Strategy 2050 aims to achieve an energy mix that combines renewable and clean energy sources to balance economic requirements and environmental goals.

The Dubai Clean Energy Strategy 2050

Dubai has become an international pioneer in developing the clean and renewable energy sector. It has developed a number of techniques and practices to enhance the efficiency of the energy sector while rationalising consumption and finding alternative solutions to conventional energy. This supports the sustainable development of the Emirate.

The Dubai Clean Energy Strategy 2050, which was launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to provide seven per cent of Dubai’s total power output from clean energy by 2020. This target will increase to 25 per cent by 2030 and 75 per cent by 2050. Dubai is the only city in the region to have launched such a promising strategy, with set goals and timelines that map the future of energy until 2050.
The strategy consists of five main pillars: infrastructure, legislation, funding, building capacities and skills, and having an environment-friendly energy mix. The infrastructure pillar includes initiatives such as the Mohammad bin Rashid Al Maktoum Solar Park, which is the largest single-site solar energy project in the world, with a planned total production capacity of 5,000 megawatts (MW) by 2030, and a total investment of Dh50 billion.

Dubai to be the city with the lowest carbon footprint in the world by 2050

“We are working to achieve the ambitious vision of our wise leadership within the framework of federal and local strategies, including the UAE Vision 2021, the UAE Centennial 2071, and Dubai Plan 2021. Our strategies and business plans are inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Rule of Dubai, for the Emirate to be the city with the lowest carbon footprint in the world by 2050,”said Saeed Mohammed Al Tayer MD & CEO of Dewa.

The Mohammed bin Rashid Al Maktoum Solar Park is one of the key projects to achieve this vision. Since its launch, the solar park’s projects see considerable interest from international developers, reflecting the confidence of international investors in the projects that are supported by Dubai Government,” he added.
“We are proud that the solar park, which bears the name of an exceptional personality who is leading the sustainable development of Dubai, was recognised as one of the UAE Pioneers, an achievement that the late Sheikh Zayed bin Zayed Al Nahyan would have been proud of.
“Naming the solar park as one of the UAE pioneers drives us to continue our efforts to achieve the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, which guides us in all our projects and initiatives and achieve the objectives of the Dubai Clean Energy Strategy 2050, which aims to produce 75 per cent of Dubai’s total power output from clean energy by 2050,” Al Tayer concluded.

TradeArabia News Service

500 MW solar project to be built in Oman

500 MW solar project to be built in Oman

With no details reported on the final electricity price agreed for a 500 MW solar project to be built in Oman, speculation will center on whether the victorious Saudi power company and its Kuwaiti partners have again trumped lower offers from overseas rivals. The winning ACWA says:

We are a developer, investor and operator of power generation and desalinated water plants with 51 assets in operation, construction or advance development across 11 countries. We employ over 3,500 people with ~60% local employment. ACWA Power’s portfolio, with an investment value in excess of USD 45 billion, can generate 29+ GW of power and produce over 4.8 million m3 /day of desalinated water.

ACWA triumphs again in Middle Eastern tendering exercise

By Max Hall

With big players from France, Korea, China, Spain, India, Turkey and the U.K. all having expressed an interest in developing a 500 MW solar park in Oman, the organizing body will have surprised hardly anybody by eventually settling on a winning consortium led by Saudi Arabia’s ACWA Power and two Kuwaiti partners.

The winner was reportedly announced late on Sunday night by Kuwait’s state-owned news agency KUNA. pv magazine has been unable to verify that decision, which was reported by news wire Reuters yesterday.

According to the Reuters report, ACWA and partners the Gulf Investment Corporation and the Alternative Energy Projects Co have landed the contract to develop the project at Ibri, 300 km west of Muscat.

Originally announced as a $500 million project, the Ibri scheme is now being reported as a $400 million plant but the commissioning date of early 2021 is unchanged.

Home advantage

The decision of commissioning body the Oman Power and Water Procurement Company (OPWP) will come as a fresh snub to French energy giant EDF, which last year submitted the lowest bid for a 300 MW scheme in Saudi Arabia – SAR0.06697/kWh ($0.018) for the energy generated – only to lose out to ACWA despite the Saudi company offering a higher tariff of SAR0.08872. The Reuters report did not carry any details of final negotiated power tariffs in the Omani procurement exercise.

EDF was one of 12 bidders shortlisted by the OPWP after an initial request for expressions of interest attracted 28 enquiries from around the world. Indian state-owned utility NTPC Ltd was filtered out at the first stage but that left big solar companies including Engie, X-ELIO, Hanwha Q Cells, BP, Chint, GCL New Energy and Abengoa in the running.

The OPWP announced in November there were three consortia left standing, with ACWA and its partners joined by a group made up of Chinese manufacturing giant Jinko Solar, French oil major Total and state-owned Abu Dhabi concern Masdar; and a third bid, from Japan’s Marubeni Corp and the Oman Gas Company.

Oman is aiming to install 4 GW of renewable energy capacity by 2030, from a low base, and is also running a separate 500 MW solar tender as well as a reported $1 billion, 300 MW wind park.

Renewable Energy Situation in Kuwait

Renewable Energy Situation in Kuwait

In September 26, 2018, Salman Zafar wrote about the Renewable Energy Situation in Kuwait as follows.

The renewable energy sector is in nascent stages in Kuwait, however there has been heightened activity in recent years mainly on account of the need for diversification of energy resources, climate change concerns and greater public awareness. The oil-rich State of Kuwait has embarked on a highly ambitious journey to meet 15 per cent of its energy requirements (approximately 2000 MW) from renewable resources by 2030.

One of the most promising developments is the kick-starting of the initial phase of 2GW Shagaya Renewable Energy Park in December last year. As per conservative estimates, more than $8 billion investment will have to be made to achieve renewable energy targets in Kuwait. 

And here we are 6 months later.

Shagaya 2000 MW multi technology renewable energy park (Image Courtesy www.csptoday.com)

Kuwait inaugurates renewable energy park

KUWAIT CITY, Feb. 20 (Xinhua) — The Kuwait Institute for Scientific Research (KISR) on Wednesday announced the full operation of the first phase of the Shagaya Renewable Energy Park in the northwestern governorate of Jahra.

The announcement was made by Samira Omar, director general of KISR, at the opening ceremony of the energy park which “has a capacity of 70 megawatts and is connected to the national electricity grid.”

The complex is composed of a solar thermal power station, a wind power station and a photovoltaic station, Omar said.

It is designed as a world-class facility with a mix of renewable energy technologies to maximize the efficiency of electricity production per square meter in the Kuwaiti desert, she added.

According to the Kuwaiti official, the complex can help reduce the carbon dioxide emissions by 5 million tons per year.

Meanwhile, Khaled al-Fadhel, Kuwaiti oil minister, described the Shagaya project as a “pioneer” in the country’s ambition to provide 15 percent of its power needs from renewable sources by 2030.

Full potential of solar PVs in the MENA

Full potential of solar PVs in the MENA

pv magazine’s The weekend read article dated February 2, 2019 elaborates on the potential of solar PVs in the MENA.

The region’s climate, developing economies and demographic growth are driving increased electricity demand in the Middle East and North Africa. However, as a hub of conventional energy supply, the region has been slow to embrace PV. To capture more of the value chain and deliver the full potential of solar, there are increasing calls for distributed generation deployment to play a bigger role.

The untapped potential of the MENA region


Jordan’s DG segment has been booming since 2012, with 203 MW of capacity made up of small projects – less than 5 MW in size – already installed, and another 244 MW planned.
Image: Amjad Khashman

Distributed Generation (DG) is gaining momentum in the Middle East and North Africa. Regional governments formerly focused on utility-scale solar have begun to welcome small and medium PV systems. Jordan, the United Arab Emirates, Egypt, Tunisia and solar newcomer Saudi Arabia have all introduced legal frameworks to encourage DG adoption.

Traditionally, markets with low access to electricity such as Sudan and Yemen were where DG was needed most. Waleed AlHallaj is a cleantech entrepreneur based in Jordan who believes for DG to flourish in the region, financial innovation will play an important role.

DG project finance “is relatively easy to access, with limited capital and references needed,” said AlHallaj, adding: “Close competition is always expected. The differentiator would be the ability to offer flexible payment terms to customers. Also, already established local mechanical and electrical EPC companies have an advantageous position with their market depth, available resources and manpower.” However, for DG to flourish, enabling regulatory frameworks and government leadership will be required.

Preponderance of utility-scale

Until now, competitive bidding rounds for utility-scale centralized projects have been the preferred renewables option for MENA regional governments. Auctions have succeeded in delivering below grid parity prices, making PV the cheapest source of electricity in the region, with prices as low as $0.0178/kWh, as seen in a record low bid in a Saudi tender of 2017.

It is the economies of scale offered by mega-projects and ideal solar conditions that made such prices possible. Yet the centralized approach requires upgrades to the transmission grid to absorb so much single-point energy. Moreover, skeptics argue such projects fail to bring employment and supply chain capacity.

DG projects in either the residential or commercial and industrial segments are considered more grid-friendly, as the electricity generated is often consumed on-site. Indeed, DG capacity can bring more resilience and flexibility to the electrical system with minimal integration costs. Off-grid applications such as water pumping, with PV integrated with batteries or diesel generators, can be considered DG and used to supply remote and isolated loads.

As small consumers take the initiative to install DG arrays, supportive laws and regulations are essential. Such consumers need to be empowered by regulation to grant them grid access as prosumers – producers and consumers. Cost now appears less of an impediment – recent PV technology cost reductions and technical advancements such as the extended lifetime of modules and continuous improvement of string inverters, have made solar more appealing to potential prosumers.

Besides the advantages for grid operators and electricity networks in MENA states, the bottom-up approach offered by DG has the advantage of employing local contractors and vendors, maximizing solar’s economic and social impact by creating sustainable jobs through project phases from design to decommissioning. And, as AlHallaj noted, they have an existing advantage in the market.

Challenges and success stories

The road to mainstream DG in MENA is still full of obstacles. A chief setback is the lack of legal and regulatory frameworks. Subsidized electricity prices are also limiting the financial feasibility of DG. Countries including Iraq, Kuwait and Bahrain apply huge subsidies to electricity tariffs for household and commercial applications.

A skilled, trained workforce is also lacking in some countries – especially those new to PV. As experience has shown in Jordan, technical standards are needed to ensure the safe design, construction and operation of DG systems.

Net metering is proving the favored mechanism to enable DG and seven countries in the region – Egypt, Jordan, Lebanon, Tunisia, the UAE, Morocco and more recently, Saudi Arabia – have adopted net metering policies, with Jordan and the UAE showing particular progress.

Since 2012, the DG sector has boomed in Jordan, with a total generation capacity of 203 MW made up of small projects – less than 5 MW capacity – and another 244 MW planned. High electricity prices and favorable solar conditions make net metering schemes very successful in the kingdom. In addition, a wheeling scheme was introduced to permit electricity to be generated off-site – very handy for large consumers such as hotels and hospitals in crowded cities where there is limited land on which to install ground-mounted PV arrays.

In Dubai, the Shams initiative was introduced to facilitate net metered rooftop systems. Household and building owners were encouraged to apply through a simple, well structured process including pre-approved contractors and equipment manufacturers. With the help of an online calculator, end consumers can estimative the required system size and energy savings they need.

Saudi focus: winds of change

Saudi Arabia, always viewed as a conventional energy fortress, is dramatically shifting towards renewables. Beside the huge tendering rounds for wind and PV that prompted world record low tariffs, DG is evolving and is about to kick off a new round of electricity reforms in the country. After years of reluctance and lack of a clear strategy, the country has finally taken steps to diversify its energy mix and started to look to solar as a strategic option.

On July 1, the Saudi Electricity & Cogeneration Regulatory Authority put in place the first framework to enable net metering in the country. Projects of up to 2 MW in capacity can be connected on low and medium voltage grids. Only certified PV contractors and consultants can carry out design and installation of small-scale systems. A 20-year connection agreement covers the relationship between distribution company and end consumer.

However, the fees and charges system owners will be required to pay have not yet been specified. To date, contractors are waiting to be officially accredited after providing trained workforce within the requirements. Project requests are already in the hands of Saudi electric companies and are expected to start in this quarter.

Expert opinion

Ali Hamam, MENA head of sales for Chinese module maker JinkoSolar, praised the DG market for its sustainable demand, by contrast with the stop-start nature of the utility-scale segment. As for Saudi, Hamam spoke of huge potential given the market’s vast size, with more than 280,000 GWh of annual electricity consumption by eight million customers. However, he also emphasized the importance of module quality, given the kingdom’s harsh climate. “There are three points to consider closely when it comes to module selection for the MENA region conditions: the quality of the bill of materials, with special attention to the backsheet, which is most prone to high temperature effects; testing procedures, which are advised to be beyond normal IEC standards; and the track record of the module supplier in similar harsh conditions,” he said.

Jordan’s AlHallaj is already engaged in the Saudi market. He said EPCs and contractors have been anticipating growth in the DG segment in the kingdom for some time and stand poised to jump in directly when projects start, which he expects to happen in the first half of this year.

“Even with an expected payback period of seven to eight years, end consumers have shown a huge appetite to build their own DG systems,” said AlHallaj. “Any new increase in electricity tariffs will give extra momentum to the sector, pushing it to boom in a way never seen before in any other country in the region. Even more, other gulf countries like Bahrain and Kuwait may likely follow the Saudi experience.”

By Amjad Khashman.

Transitioning the Grid to Renewables

Transitioning the Grid to Renewables

One of the ongoing arguments that the forces opposed to dealing with climate change make is that transitioning the grid to renewables will be economically devastating.  A nuance that’s emerging is that a mixed grid with lots of fossil fuels is economically superior.  It isn’t, and it’s worth pulling together the set of arguments for why.

An All-Renewable Grid Is Economically Superior To Mixed Generation

January 23rd, 2019 by Michael Barnard 


We have to start by asking ourselves what we mean when we say ‘economically superior’. The Exxon-Valdez disaster of 1989 spilled 35,000 metric tons of oil into sensitive waters off of Alaska. Was that an economic benefit or negative? It depends on what lens you use. One of the odd impacts of the spill was a short-term economic uptick in jobs and business due to the massive oil spill cleanup efforts. In the long term, tourism, fisheries and related industries have continued to be impacted, but if you picked your timeframe the disaster could be read as an economic benefit.

Similarly, the US healthcare system has a very high per-capita cost with poorer outcomes than other roughly equivalent societies, yet the healthcare industry in the USA is a massive economic driver. Is the poor structuring and payment system in the USA a net economic benefit or a net economic negative?

In context of economic benefits, we have to cast our nets across a broader rather than narrower set of topics and a broader rather than narrower timeframe in other words.

Power generation mixes

The question boils down to whether a solely renewable grid is superior to a grid with a remaining substantial percentage of fossil fuel generation mitigated with carbon capture and sequestration.

The first contains a couple of variants that are worth exploring a bit. The first variant is a fully electrified economy, with industry, agriculture, transportation and the like all using electricity generated by renewables and stored in some interim form, mostly batteries but also hydrogen in some cases and (cleaner) manufactured hydrocarbons in others. The second variant adds biofuels from woodchips, biodiesel, and biomethane sources to the mixture with continued thermal generation of electricity and greater continued use of internal combustion and diesel engines for transportation.

The partially fossil fuel grid assumes that the negative externalities of fossil fuel generation and transportation fuels can be managed. The expectation is that these will be internalized in the cost rather than remain uncosted negative externalities. This includes carbon dioxide and methane emissions which cause global warming, with the Pigovian tax being some combination of a straight carbon tax, cap and trade, and regulation. This would enforce carbon capture and sequestration in theory, although the practice remains so uneconomic it’s hard to see it working. Pollution negative externalities include loss of productivity via multiple causal mechanisms, additional burdens on healthcare systems and premature loss of life.

Timeframe

The timeframe is important. Carbon emissions today create economic impacts 20–100 years from now. Pollution emissions today create economic impacts that are both immediate and long-term, as the Exxon Valdez example shows. Burning fossil fuels for transportation and generation, in other words, requires us to view longer term, not quarterly or annual economic cycles.

Viability

There are a couple of additional pieces to the puzzle. A key one is viability. Can we actually transform our global economy to one powered by renewable energy, regardless of storage?

Yes, we can. The go-to source for this is the work of Dr. Mark Jacobsen out of Stanford. The Solutions Project he spearheads looks at the transformation globally through 2050. That gives us the timeframe necessary, but to be clear, Jacobsen is only looking at direct economic impacts of jobs and the like. He’s ignoring negative externalities in his work.


As the infographic shows, across the largest 139 countries in the world, there are two primary economic metrics he calls out.

Jobs

Renewables create a lot more jobs than the increasingly capital-intensive fossil fuel industry. Putting up 100 3.3 MW wind turbines across a few dozen square miles of Idaho and then maintaining them takes more people than the equivalent generation in gas or coal.

This can perhaps be most clearly seen in the jobless recovery in Canada’s oil sands, where economic recovery did not see a return of the thousands of jobs for workers whose jobs had been automated in the efficiency drive of the recession. Traveling to Brazil is instructive, as Petrobras remains a governmentally-owned oil company and is vertically integrated. There are half-a-dozen service people at every gas station and it takes four times as much labor per barrel in their refineries. This is because Petrobras is a governmental mechanism for balancing employment numbers, not an efficiently run organization. It’s a dying breed globally, when even Saudi Aramco has floated shifting to private ownership.

Right now in the USA, there are more people employed in the solar industry alone than in the entire fossil fuel industry. Add in wind generation and the necessary transmission and distribution of electricity. Add in Tesla’s employees and all of the businesses working on the transition to electrified transportation. There’s a big jobs gain to be had in the transition.

Read more on the CleanTechnica original document.