Geothermal Energy: The Future of Hungary’s Green Economy

09.10.2024

geotermalna — Photo-illustration: Pixabay (longdan91)

For years, Hungary has ranked among the leading countries in Europe when it comes to the direct use of geothermal energy, with plans for significant expansion by 2030. Moreover, according to the National Concept for the Utilization of Geothermal Energy, Hungary aims to make this sector a key branch of the country’s green economy and sustainable development.

As stated on the official website of the Hungarian government, there are plans to increase current usage from around 6.4 petajoules to 12-13 petajoules, which would raise the share of geothermal energy in heat production from 6.5 percent to 25-30 percent. By doing so, geothermal energy could replace a significant amount of natural gas by 2035, reducing dependency on imports.

In the Carpathian Basin, the Earth’s crust is thinner than the European average, resulting in higher underground temperatures in this region. Additionally, the rocks in this area can store large amounts of natural underground water, which is replenished by rainfall. This means Hungary has favorable conditions for diverse applications of geothermal energy.

Although geothermal heat production has increased more than fourfold since 2010, there is still significant potential for further expansion.

Photo-illustration: Pixabay (Gruendercoach)

The geothermal energy sector has recently gained momentum due to a new, flexible permit system, as well as the establishment of the Hungarian Geothermal Cluster. Moreover, the continuation of the national geothermal research program, along with funds allocated through the Climate and Nature Protection Action Plan, has reduced the financial risks associated with geothermal drilling. Finally, a call for funds from Swiss programs has been opened, which will contribute to the modernization of existing thermal wells.

To achieve rapid results, the government plans to play a larger role in researching and promoting geothermal energy. It is expected to provide a stable financial environment to reduce risks and create favorable conditions for investment. The National Concept, prepared by the Ministry of Energy, is available to the public on their website.

These efforts represent a significant step towards strengthening Hungary’s energy independence and reducing greenhouse gas emissions, thereby contributing to global efforts to combat climate change.

Energy portal

The United Kingdom Invests Billions in Carbon Capture Projects – Divided Reactions Emerge

08.10.2024

co2, emisije, industrija — Photo-illustration: Unsplash (anne-nygard)

Foto-ilustracija: Unsplash (Jack Anstey)

The UK government has announced investments of nearly £22 billion to develop carbon capture and storage (CCS) projects aimed at reducing carbon dioxide (CO₂) emissions from industrial sources, supporting economic growth, and creating new jobs over the next two and a half decades, according to local media reports. However, the plan has sparked a debate, with some emphasizing the potential environmental and economic benefits, while critics argue that it is an unproven technology that could extend the dependence on fossil fuels instead of directing funds toward renewable energy sources.

The £22 billion investment is focused on establishing three carbon capture projects in former industrial areas of northwestern and northeastern England, particularly around Liverpool and the North Sea. The Port of Liverpool was once one of the busiest in the world, leading to the development of shipbuilding, manufacturing, and trade.

These projects aim to capture emissions from power plants, cement factories, and blast furnaces, storing the CO₂ underground or reusing it in industrial processes. The government expects these projects to reduce carbon emissions by 8.5 million tons annually, as reported by international media outlets.

Nevertheless, despite government bodies supporting this decision, there are criticisms regarding the CCS project plans. Certain societal groups have voiced concerns, pointing out that CCS technology has a poor track record of results.

As explained, most existing CCS projects are linked to natural gas processing, where a large portion of the captured CO₂ is re-injected into oil fields instead of significantly reducing overall emissions. The issue is that the captured CO₂ is not permanently stored in geological formations to prevent its release into the atmosphere; much of that CO₂ is used to enhance oil extraction from oil fields. This process is known as enhanced oil recovery, which creates a “vicious cycle” where claims of environmental protection and renewable energy development are undermined.

Energy portal

Energy Week – Towards a Sustainable Future

07.10.2024

solar panel — Photo-illustration: Unsplash ( Mariana Proença)

Energy Week Western Balkans 2024 is a key event that brings together leading stakeholders in the energy sector, providing a platform for the exchange of ideas, strategies, and innovations aimed at a sustainable future and green transition in the region. Petar Šainović, Managing Director of Siemens Energy Belgrade, spoke to the Energy Portal about the importance of this gathering for the energy sector in the region.

The conference Energy Week Western Balkans is approaching, bringing together all key players in the energy sector in the region. What does participation in such an important event mean to you, and what outcome do you expect?

– I am honored and pleased to have the opportunity to participate and to speak as a panelist about current developments in this field at such a conference. Considering that the energy sector undoubtedly holds a leading position in the fight against climate change, conferences such as this play a crucial role in the exchange of knowledge, experiences, and defining directions for the development of energy sector in the region. This is what I expect from this prestigious conference.

Among the participants of the Energy Week Western Balkans, there are leading global companies that are shaping the green transition of the region, including Siemens Energy. What message will the company send to the other conference participants?

– The green transition is not a choice, and only through joint efforts can we achieve the set goals. We employ around 98,000 people worldwide in more than 90 countries. An estimated one-sixth of the electricity generated worldwide is based on technologies from Siemens Energy. I would like to highlight our presence in the Western Balkans region, including our Serbian operations. Of 200 our employees in Serbia, three quarters are engineers. Experts from the team are currently executing complex projects in Western and Northern Europe, the Middle East, and Africa. Our presence in Croatia is similar. This capability represents a vast knowledge base, and I hereby invite the conference participants to join with us to create the future of the region’s energy sector.

Siemens Energy is one of the leaders in energy transition, both globally and in the region. Tell us more about the company’s projects in the Western Balkans and how they have impacted the improvement of environmental quality and energy stability.

– Our operations encompass power generation and transmission, as well as industrial solutions, with focus on decarbonization and reducing greenhouse gas emissions. Siemens Energy has a unique Center of Competence for Industrial Solutions, which is an integral part of our company in Serbia and currently employs more than 100 experts from various engineering disciplines, executing projects worldwide. This engineering center is particularly focused on the electrification of industry with the aim of decarbonization. We have executed major projects in this field in the region. As for projects in our region, I would like to mention that we are currently involved in construction of a wind farm, the largest biomass power plant in the region, a power plant that utilizes waste steam from industrial processes, and a unique high-efficiency tri-generation plant. All these projects aim to improve environmental quality. In the field of power transmission, we are currently involved in several major regional projects with the goal of enhancing energy stability.

Where does the untapped potential of the Western Balkans for green energy production lie, and how can the implementation of Siemens Energy’s innovative technology help?

– First and foremost, in the people. From Siemens Energy’s perspective, I can say that expert knowledge is our main driving force. Our experts from this region are highly sought after and successful in the energy sector. This is confirmed by our Center of Competence that I already mentioned, and the fact that we have quadrupled the number of employees in Serbia in less than 5 years. Additionally, we have ambitious plans for the further development of the local team

Energy Portal

Harmful Effects of Climate Change on Winter Sports and Tourism

06.10.2024

winter-zima-sport — Photo-illustration: Unsplash (Kasya Shahovskaya)

The International Ski and Snowboard Federation (FIS) and the World Meteorological Organization (WMO) have announced a new partnership to raise awareness of the fact that winter sports and tourism face a bleak future because of climate change.

A new Memorandum of Understanding commits the organizations to work together to highlight the far-reaching impacts of rising global temperatures on snow and ice cover and to establish practical initiatives to strengthen scientific and sporting dialogue. This is the first time that WMO, as a United Nations’ specialized agency, partners with an international sports federation.

“Ruined winter vacations and cancelled sports fixtures are – literally – the tip of the iceberg of climate change. Retreating glaciers, reduced snow and ice cover and thawing permafrost are having a major impact on mountain ecosystems, communities and economies and will have increasingly serious repercussions at local, national and global level for centuries to come,” says WMO Secretary-General Celeste Saulo.

“The climate crisis is obviously far bigger than FIS − or sports, for that matter: it is a genuine crossroads for mankind. It is true, though, that climate change is, simply put, an existential threat to skiing and snowboarding. We would be remiss if we did not pursue every possible effort that is rooted in science and objective analysis. This is what we are trying to follow and what is at the core of this promising partnership with the WMO,” says FIS President Johan Eliasch.

In 2023/24, FIS organized 616 World Cup races among all disciplines, spanning across 166 venues. Twenty-six races were cancelled for weather-related reasons.

Source: WMO

Legislative Framework of the EU and Serbia for the Energy Transition

06.10.2024

emisije — Photo-illustration: Unsplash (Etienne Girardet)

The energy transition is a global process involving almost every country in the world. The goal is to build a sustainable and secure energy system that can meet the growing demand for energy while reducing the negative impact on the environment. Although each country tailors its approach according to its own capabilities, Europe has set an even more comprehensive and ambitious goal—to become the first climate-neutral continent in the world. Clean energy is the central thread in achieving this transition, as energy accounts for about 75 percent of total greenhouse gas emissions in the European Union.

The transformation of the energy sector has led to the development of important policies that regulate various areas, from transitioning from fossil fuels to low-carbon and renewable energy, improving energy efficiency in industry and buildings, product energy labeling, electromobility, to the introduction of smart meters, integration, and digitalization of the energy market.

The European Green Deal, the Fit for 55 package, and the REPowerEU Plan are among the most important European Union policies in the field of energy and climate transition.

The European Green Deal

In 2019, the European Commission adopted a long-term vision called the European Green Deal, which aimed at achieving climate neutrality by 2050. It laid the foundation for all subsequent policies and legislative initiatives related to sustainable energy development and the reduction of greenhouse gas emissions. As part of the European Green Deal, the first European Climate Law was adopted in 2021, setting the goal for the European economy and society to become climate-neutral by 2050, along with an intermediate goal of reducing net greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels. The goal of net-zero greenhouse gas emissions by 2050 became legally binding with this law. It stipulates that EU institutions and member states have the duty to take the necessary measures at both the Union and national levels to meet this goal.

It is particularly emphasized that it is necessary to consider the importance of promoting fairness and solidarity among member states. The European Climate Law also includes measures for monitoring progress and adjusting actions accordingly based on certain existing systems. For example, the Regulation on the Governance of the Energy Union is cited. It is intended to help the European Union achieve its climate and energy goals by setting common rules for planning, reporting, and monitoring. It aims to ensure that planning and reporting are aligned with the goals and cycles of ambition defined in the Paris Agreement. Another example is the so-called NECP, which represents the ten-year national energy and climate plans of EU countries. Within these plans, member states outline how they will address decarbonization, energy efficiency, energy security, the internal energy market, research, innovation, and competitiveness issues. In February 2024, the European Commission recommended that an additional intermediate goal of a 90 percent reduction in emissions by 2040 be included in the European Climate Law. However, the legislative proposal for this recommendation is still pending.

It should be noted that the European Green Deal places people at the heart of the transition, striving to make the transition fair, particularly paying attention to those vulnerable in the clean transition and most affected by the consequences of climate change. This includes significant investments through funds and other financial instruments. For example, the Just Transition Fund supports workers and regions in developing new skills and advancing the green economy. The Social Climate Fund is intended to support vulnerable groups in investments in energy efficiency or energy renovation of buildings, clean heating, renewable energy integration, and more.

IN FOCUS:

The Fit for 55 Package

While the European Green Deal is the European Union’s long-term vision to achieve climate neutrality by 2050, the Fit for 55 Package represents concrete legislative proposals to make that vision a reality. This package was introduced in 2021, and its name refers to its main goal: reducing net greenhouse gas emissions by 55 percent by 2030, compared to 1990 levels. It includes revisions to several significant directives related to achieving the European Union’s climate goals. These directives include the Renewable Energy Directive (RED), the Energy Efficiency Directive (EED), the Energy Performance of Buildings Directive (EPBD), the Energy Taxation Directive, and the Gas and Hydrogen Package. The revisions aim to align the existing legal frameworks with the goals set by the Fit for 55 Package.

The Fit for 55 Package encompasses numerous areas that need improvement. This package makes the EU Emissions Trading System (EU ETS) more ambitious in several ways, one of which is its expansion to include emissions from maritime transport.

Numerous additional targets are established to achieve the main goal set by the Fit for 55 Package. The first target mentioned is the transition from fossil fuels to low-carbon and renewable energy sources. The next goal is to reform the EU Emissions Trading System, which involves introducing stricter rules and expanding them to additional sectors. These goals also include reducing emissions in transport, buildings, agriculture, and waste, as well as in land use and forestry sectors. Speaking of specific emissions, particular attention is directed towards reducing methane emissions. Other goals include establishing funds to provide financial support during the transition to a green economy.

Prepared by: Katarina Vuinac

Read the whole story in the new issue the Energy portal Magazine ENERGY TRANSITION

Bulgaria and the USA Expand Cooperation on Building a New Nuclear Power Plant in Kozloduy

05.10.2024

power-plant-nuklearna-elektrana — Foto-ilustracija: Pixabay

Bulgaria and the United States have announced the expansion of an intergovernmental agreement on energy cooperation, which will include the construction of a new nuclear power plant in Kozloduy, as well as the development of Bulgaria’s civil nuclear program. This initiative follows talks between Bulgaria’s Minister of Energy Vladimir Malinov and Geoffrey Pyatt, the U.S. Assistant Secretary of State for Energy Resources.

The goal of the expanded agreement is to further deepen bilateral cooperation between the two countries, particularly in the areas of renewable energy sources (RES), oil, and natural gas.

“We have built trust through successful cooperation, and we are confident that joint efforts will bring stability and energy security not only to Bulgaria but to the entire region,” Minister Malinov stated.

One of the key topics of the meeting was the initiative for the Vertical Gas Corridor, a project of strategic importance for the energy security of Southeast Europe. Project activities are currently underway for the construction of new infrastructure in Bulgaria, which is expected to be completed by the end of 2025. This project is in synergy with the liquefied natural gas terminal in Alexandroupolis and the expansion of the “Chiren” gas storage facility, which will contribute to the energy independence not only of Bulgaria but also of countries like Moldova and Ukraine.

Support from the U.S. Exim Bank During his visit to the U.S., Minister Malinov also met with the President of the Exim Bank, Reta Jo Lewis, who confirmed the full support of this financial institution for the construction of the 7th and 8th units of the Kozloduy nuclear power plant. Exim Bank will develop the financial framework and provide funding for the project by the end of next year, which will significantly contribute to the implementation of priority energy projects in Bulgaria.

Malinov also emphasized Bulgaria’s interest in the U.S. experience in developing small modular reactors, which will help the country achieve its goals of a low-carbon economy based on clean energy.

One of the key steps in the realization of the 7th and 8th unit project in Kozloduy is the involvement of the international law firm Pillsbury Winthrop Shaw Pittman, which has over 50 years of experience in the nuclear energy sector.

Milena Maglovski

Sustainability And Development For A Better Quality Of Life

05.10.2024

DJI_0099 — Photo: Municipality of Podgorica

Cities, as major centers of population growth and dynamic urban development, often stand out as particularly vulnerable areas to the impacts of climate change. In this regard, Podgorica, the capital where nearly a third of Montenegro’s population resides and which, during the workweek, is visited by tens of thousands of people due to daily migrations, is no exception. Climate parameter analyses conducted so far indicate that the shift towards a warmer climate began in 1990, with each subsequent decade warmer than the previous one.

“Recorded weather and climate extremes include, among other things, more frequent and longer heat waves from May to September, a longer vegetation period, more frequent droughts accompanied by high temperatures and forest fires, and an increased number of days with very heavy rainfall. As for projected climate changes, further increases in the overall length and number of tropical waves, a rise in the number of consecutive days without precipitation, and a slight decrease in the average annual maximum wind speeds are expected. An adequate response to the impacts of climate change, or the preservation of the environment as a whole, can only be ensured through a multidisciplinary approach and collaboration at all levels, from local to international. Considering the most prominent challenges faced by Podgorica as a rapidly developing city, it is imperative to preserve space while ensuring the infrastructure necessary for a quality life,” says Professor Olivera Injac, PhD, the Mayor of Podgorica.

According to her, the priorities of the city administration include improving public transportation, preserving public green spaces through continuous maintenance of existing ones and the creation of new ones, establishing protected natural areas, continuously improving waste management systems, constructing a new wastewater treatment plant, and expanding and improving the water supply system. All city services and enterprises actively address these priorities through continuous cooperation, with a high degree of transparency, by encouraging citizen participation and engagement with the non-governmental sector to define the highest quality decisions that are important for society as a whole.

IN FOCUS:

Q: What measures are you taking to reduce air pollution?

A: The results of air quality monitoring conducted in Podgorica at both the state and local levels indicate that the air in our city is still relatively well-preserved, with the average annual concentration of PM10 and PM2.5 particles below the threshold limit, which further obligates us to maintain and improve the quality of this segment. According to data obtained through monitoring, all exceedances of these parameters, except in emergencies predominantly caused by fires during the summer period, occur during the heating season, which presents a particular challenge for local governments. The main recommendations for improving air quality in monitoring reports relate to improving public transportation, promoting and encouraging alternative modes of transport, expanding urban green areas, and enhancing energy efficiency. The city has a significant number of roundabouts, which reduces traffic congestion and thus decreases pressure on air quality.

We are also working on establishing cycling infrastructure. In this context, a significant project is “Podgorica on Two Wheels,” which subsidizes the purchase of bicycles and electric scooters, a project that has garnered considerable interest. Podgorica is characterized by the expansion of urban green areas, with over 300,000 m² of new and revitalized spaces in the past few years. For more efficient planning and management, the Green Space Cadastre of Podgorica was completed at the end of 2022, spanning about 1,200 hectares of public green spaces. The cadastre was developed as an intuitive, user-friendly application containing data on trees, shrubs, recreational areas, and urban furniture, searchable by various criteria. Recently, we have also begun developing the concept of green roofs, which is a particularly significant mechanism in this context in urban areas, and we are conducting activities to reforest the hills surrounding Podgorica.

Q: How much are you investing in the development of city parks and botanical gardens, and what are the plans for implementing the so-called green belt around the city?

A: “Green Podgorica” is a vision to which we are fully committed, and the efforts we put into this area have already yielded visible results. As a city that ranks as the fifth greenest city in Europe in the urban green infrastructure category, we are continuously working to make the city greener. In the past year, Podgorica has gained more than 35,000 m² of new parks, over 30,000 m² of landscaped areas, nearly 20,000 m² of developed urban pockets, and almost 100,000 m² of new green spaces, which makes us very proud. In addition, the Micro 020 project, implemented by the Office of the Chief City Architect, focuses on revitalizing neglected and forgotten urban pockets, that is, smaller areas in the city that are in poor condition. Within this project, we will soon have about ten ready project solutions based on which we will develop an equal number of public spaces throughout the city.

Since the beginning of the year, we have arranged numerous park areas in several neighborhoods in Podgorica.

Additionally, several smaller green spaces have been constructed and reconstructed, and tree rows have been planted where technically feasible. The reconstruction of Karađorđev Park in the city center and the construction of a large park in the Zabjelo neighborhood will soon begin. The creation of the so-called green belt around Podgorica, with the planting of tens of thousands of new seedlings, further strengthens efforts to create a sustainable urban environment. This project will continue into the fall, with another planting season set to begin. Along with the formation of linear greenery and the development of smaller green areas, the goal is to connect suburban and urban areas into a unified system of city greenery. There are also plans to develop Lješkopoljska Gorica Hill, which will be an essential part of the city’s green infrastructure. It will serve as another foundation for adapting to climate change by establishing ecological stability and improving residents’ quality of life.

Q: How have you regulated proper waste disposal, and how have you improved waste management?

A: At the end of 2006, following the decision of the City Assembly, the Podgorica government formed the Deponija Company, which began operations in 2007. Its primary role was the disposal of municipal waste from the territory of Podgorica, Cetinje, and Danilovgrad municipalities, as well as the urban municipalities of Tuzi and Zeta, now independent municipalities. The urban planning envisaged six sanitary landfills. All were constructed following Directive 1999/31/EC on the landfill of waste (later amended by Directive (EU) 2018/850). Subsequently, operations were defined by the Law on Waste Management and the Regulation on the Specific Characteristics of Locations, Construction Conditions, Sanitary-Technical Conditions, Operation, and Closure of Landfills. In mid-2010, the Regional Recycling Center for Municipal Waste and the Recycling Center for Waste Vehicles were put into operation.

Regarding the increase in the share of renewable energy sources, Deponija’s role is reflected in initiating a cogeneration project, i.e., generating electricity and heat from the combustion of landfill gas. A public call is currently open for the development of a feasibility study that will provide answers on the profitability of this project. Given that three sanitary landfills have been filled and closed, and the fourth one is active with space remaining for landfills 5 and 6, there is optimism that this study may yield very encouraging results, allowing the construction of the cogeneration plant to begin next year.

Interview by Mirjana Vujadinović Tomevski

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

Belgium helps tackle climate change with support for groundbreaking initiatives 

04.10.2024

belgija — Photo-illustration: Freepik (wirestock)

In June 1972, dozens of countries convened in Stockholm, Sweden, for the United Nations Conference on the Human Environment, the first global gathering on the environment. Among the largest delegations was Belgium, with more than 40 representatives supporting a historic moment that would lead to the creation of the United Nations Environment Programme (UNEP) and its financial bedrock, the Environment Fund.

This June, some 52 years later, Belgium further cemented its longstanding partnership with UNEP, providing 3 million euros or approximately 3,31 million US dollars to UNEP’s thematic fund dedicated to countering the climate crisis.

Belgium has been a consistent contributor to the thematic fund for climate since it launched in 2022, in addition to being one of the few Member States to have also supported the Environment Fund each year since its inception. By doing so, Belgium has been instrumental in supporting UNEP to achieve the many environmental milestones over the decades in several areas, including tackling climate change, nature, land and biodiversity loss, and pollution and waste. Belgium has played a specific role in initiatives to reduce marine litter, expand the circular economy and promote the safe handling of hazardous chemical waste.

The 9 million euros (approximately 9,66 million US dollars) Belgium has now contributed to UNEP’s climate-focused thematic fund over three years aims to give an additional boost to climate science, supporting enhanced transparency in reporting in line with the Paris Agreement, fostering climate change adaptation, reducing greenhouse gas emissions and catalyzing more climate finance.

“Addressing climate change requires creativity and agility as we race against the 2030 clock,” said UNEP Executive Director Inger Andersen, referring to the deadline for the UN Sustainable Development Goals. “Belgium’s understanding and support of this has been an important part of UNEP’s work for decades.”

“To leave the world better than we’ve found it, we’ll continue to strengthen our partnership with UNEP,” said Peter Maddens, Ambassador of Belgium to Kenya, Madagascar, Seychelles, Comoros, Eritrea and Somalia, and Permanent Representative to UNEP.

Belgium is a key supporter of ground-level initiatives that are helping reduce poverty and ensure a just transition in climate-vulnerable parts of the world, such as Africa. One of those projects is the Pan-African Action Plan for Active Mobility (PAAPAM), which works with governments across the continent to create safe spaces for pedestrians and cyclists, helping to reduce greenhouse gas emissions, pollution and traffic congestion.

Belgium helped get the  Restoration Factory  hybrid incubation programme off the ground in Kenya, which has since led to the programme being replicated and scaled up in the Democratic Republic of Congo, Rwanda and Tanzania as well. Each year, the programme matches mentors with entrepreneurs with ideas for conserving and restoring ecosystems. These relationships help startups refine their business model and tap into private financing.

Photo-illustration: Freepik (frimufilms)

“Before the onset of this programme, I had no courage to speak about what we do or what our contribution to restoration was,” said Shiro Ndirangu, who runs Afrex Gold, a small Kenyan business that links local farmers with international markets. “I am now able and encouraged to do that and I attribute this to the lessons received during mentoring sessions.”

Beyond Africa, Belgium’s partnership has underpinned UNEP’s work on a wide range of efforts, from mapping green infrastructure opportunities in Mexico City to helping Indonesian rural banks go green to supporting UNEP’s flagship Adaptation Gap Report. The report, which gives an annual update on how the world is adapting to climate change, is a critical source of information in the lead-up to countries’ climate negotiations each year.

As well, Belgium’s embassy and residence in Kenya is the first carbon neutral embassy in Nairobi, the result of a two-year-long retrofit. The properties are powered by solar panels and biogas, while the grounds are dotted by gardens fed by recycled rainwater.

“Part of the beauty of this project is that you learn to live differently,” said Maddens, who spearheaded the initiative. “Climate adaptation and resilience are among our biggest priorities. We must boost them in our own environmental footprint as well as in our support for work around the world.”

Source: UNEP

Natural Gas Demand Growth Oicks up in 2024 Amid Uncertainties Over Supply

04.10.2024

gas-gasovod — Foto-ilustracija: Unsplash (Martin Adams)

Global demand for natural gas is increasing at a stronger rate in 2024 than in the previous two years, which were heavily affected by the turmoil of the global energy crisis. At the same time, new gas supplies coming to market in 2024 remain limited due to the relatively slow growth of LNG production while geopolitical tensions continue to fuel price volatility, according to a new IEA review of global gas markets and security.

Global gas demand is forecast to rise by more than 2.5 percent in 2024, with similar growth expected in 2025, according to the latest edition of the IEA’s annual Global Gas Security Review. Fast-growing markets in Asia account for a large amount of the increase while a rebound in Europe’s industrial gas demand is also contributing, even though it remains well below its pre-crisis levels. The new Security Review also includes the IEA’s latest quarterly Gas Market Report analysis.

“The growth we’re seeing in global gas demand this year and next reflects the gradual recovery from a global energy crisis that hit markets hard,” said IEA Director of Energy Markets and Security Keisuke Sadamori. “But the balance between demand and supply trends is fragile, with clear risks of future volatility. Producers and consumers must work together closely to navigate these uncertain times while taking into account the need to advance clean energy transitions to ensure a secure and sustainable future.”

The report finds that markets remain sensitive to unexpected supply and demand side developments. LNG’s role in the global gas trade has grown since the onset of the global energy crisis, and it is likely to play a crucial part in maintaining the supply-demand balance globally. Constraints across the Panama Canal and the Red Sea continue to impact shipping but have not led to a decline in LNG supply thus far. However, they highlight the potential vulnerabilities of LNG trade in an increasingly interconnected global gas market. The situation may shift in 2025 when LNG supply growth is set to accelerate to near 6% as several large LNG projects come online, mainly in the second half of the year. North America will account for the vast majority of new capacity, while new volumes from Africa and Asia will also contribute.

A key uncertainty ahead of the 2024-25 Northern Hemisphere winter is the transit of Russian gas via Ukraine, with existing contracts set to expire at the end of 2024. This could mean an end to all piped gas deliveries to Europe from Russia through Ukraine. In turn, this would require higher LNG imports to Europe in 2025 and consequently lead to a tighter global gas balance than if transit via Ukraine continued. To address some of these challenges, the IEA recommends that flexibility mechanisms along gas and LNG value chains could be enhanced by improving the liquidity of the global LNG market, integrating the Ukrainian gas storage system into the global gas market, and considering potential frameworks for voluntary gas reserve mechanisms.

Source: IEA

Why the 2035 Zero-Emission Car Target Is Crucial

03.10.2024

car-auto-punjenje-električni — Photo-illustration: Pixabay

1. Why is it important for the climate, the economy and jobs in Europe?

Economy and jobs

Maintaining the ambition of the EU car CO2 standards, including the 2035 100 percent zero emission target is crucial for providing carmakers and the emobility value chain with the regulatory certainty needed to securely invest in electric car, battery production and charging infrastructure in Europe. In September 2024, 50 CEOs and executives called on the new EU Commission and MEPs to ‘maintain the 100 percent zero-emission car target in 2035’.

The car CO2 regulation has been the main driver of investment in the EV value chain in Europe. With the introduction of the EU car CO2 targets in 2020, EV investments in Europe increased by a factor of 20 (from €3.2 bn to €60 bn). More than 50 European gigafactories are planned to produce battery cells by 2030, requiring more than €170 billion in investments, sufficient to power all new vehicle sales in the EU from 2026.

With uncertainty over its 2035 zero-emission car target and a weak industrial policy, Europe is proving less attractive to electric vehicle manufacturers. While €70 billion of EV investment by carmakers has been announced for Europe between 2021 and 2023, North America, attracted €97 billion over the same period. Any weakening of the targets will further reduce the attractiveness of Europe as an investment destination.

A study by BCG analysed the impact of a shift to EVs on jobs in the automotive sector and showed that jobs lost in the traditional fossil-fuel focussed industries would be offset by new jobs in the fast growing e-mobility value chain.

Climate

Achieving climate neutrality by 2050 requires the EU to eliminate fossil fuels, especially from the transport sector, which accounts for 29 percent of EU emissions. Light duty vehicles (cars and vans) are responsible for around half of these emissions. EVs emit significantly less CO2 over their lifecycle compared to petrol or diesel cars, making them essential in combating climate change.

Car CO2 regulation: how does it work?

The car CO2 regulation sets legally binding targets for average CO2 emissions from new cars sold by carmakers annually. The regulation operates in five-year steps, creating an inevitable acceleration-stagnation momentum. The same targets apply from 2021 to 2024, with the next targets being a 15 percent reduction in 2025 (versus 2021), a 55 percent reduction in 2030, and a 100 percent reduction by 2035. Until now those targets have been met by almost all carmakers and the same is expected for future targets. Technological advancements and compliance options, such as pooling with other carmakers, CO2 bonus for selling a certain number of EVs, and using eco-credits, support this compliance. The regulation contains a clause to review the regulation in 2026.

2. The 2035 100 percent zero emission car target is feasible

A Bloomberg study shows that reaching 100 percent electric cars and vans in 2035 is feasible. Battery electric cars will be cheaper to buy in Europe than fossil-fuel vehicles by 2028 at the latest. In many cases this will come earlier as carmakers have announced a dozen affordable, sub-€25,000 Made-in-Europe EV models for 2024-2027. Combined with much lower running costs, the EV transition is bound to be irreversible.

In addition, binding EU regulation mandates that the EU’s main highways and roads be covered with fast chargers from 2025, and that the number of chargers overall increase in line with the uptake of electric vehicles in each member state.

Most car companies, including Volkswagen have been in support of the 2035 target as they need investment certainty. Fundamentally, the question of feasibility is not a matter of technical feasibility but rather a matter of political willingness and commitment to existing climate and industrial policies.

3. What is needed for the new EU legislative term

First, European carmakers and politicians need to be firmly committed to the 2035 target and to accelerate the ramp up of electric car models, especially the more affordable ones. In particular, the EU should not get sidetracked by polluting, inefficient and expensive synthetic fuels (or e-fuels) and biofuels.

Second, the new EU Commission should support an ambitious industrial strategy to accelerate and scale up the European e-mobility value chain, with a focus on attracting investment to Europe, R&D clean local manufacturing, and upskilling of local workers.

Source: Transport and Environment

Heating Season – Choosing Energy Sources in Times of Ecological Crisis

03.10.2024

grejanje — Photo-illustration: Freepik (freepik)

After yet another hot summer, the weather forecast shows a gradual drop in temperature, which will soon become more noticeable. This also signals the beginning of the heating season. In the past, the decision on how to heat a home was based on the availability of a particular energy source and which was the most cost-effective. Today, we face the additional dilemma of which energy source is more environmentally friendly, alongside the various options available to each household. As colder days approach, we will be met with challenges, but aside from bundling up in warm scarves and jackets, we will also face something that our school textbooks did not teach us. Let’s remember those school days when we learned that air has no color, smell, or taste. Now, we increasingly encounter the opposite – we can see the air through smog, and we can smell its unpleasant odor.

As the official heating season in Serbia is about to begin, and many homes have already started heating independently, I would like to briefly outline some of the most important energy sources we use. It’s difficult to cover them all, especially considering the fact that some households burn anything they can find. By this, I mean the information I learned at a lecture – certain citizens use used diapers, tires, books, and other “suitable” items found in their homes as energy sources.

The Most Commonly Used Energy Sources

In this category, we could include coal, wood, fuel oil, electricity, pellets, gas, heat pumps, and heating oil. Each of these has a different impact on financial costs and the environment. Among them, coal stands out as the largest polluter, while natural gas and heat pumps are at the lower end of the pollution scale. When it comes to electricity, its environmental impact depends on the energy source used for its production.

As I previously mentioned, coal is a fossil fuel and one of the biggest polluters among energy sources. During combustion, significant amounts of carbon dioxide, sulfur dioxide, nitrogen oxides, PM2.5 particles, and other pollutants are released. It has a significant impact on climate change, global warming, and air pollution. The reason it is still widely used is its easy availability and low cost. It is important to highlight the problem of using lignite, a type of coal that contains a high moisture content, making it a less energy-efficient fuel. It is well-known that lignite is widely used in our country, and despite its lower efficiency, it heavily pollutes the environment.

Fuel oil is another energy source classified as a major polluter. This liquid fossil fuel is a byproduct of oil refining. Its combustion emits high levels of carbon dioxide, sulfur dioxide, nitrogen oxides, and particles. Although it is less harmful than coal, it remains high on the list of the biggest polluters. Worldwide, efforts are underway to shut down power plants that use these two energy sources. Another fossil fuel is heating oil, which emits harmful gases and particles, though in smaller quantities compared to coal and fuel oil. This makes it a more efficient energy source.

The use of wood is considered one of the oldest methods of heating. Readily available, it remains a common energy source, especially in rural areas. Wood is a renewable energy source and can be more environmentally friendly if used sustainably and properly. If burned improperly, it can lead to higher emissions. This happens when it is burned at low temperatures or in inefficient, old stoves, or when the wood is wet or contains chemicals like paint or glue. Pellet, a byproduct of wood, can be considered a descendant of wood. It belongs to the biomass category, produced from wood residues. Special stoves or boilers are required, and pellets emit fewer emissions and particles during combustion than wood. If sourced from trees grown in sustainably managed forests and if the stoves are of high quality, pellets are considered an efficient and environmentally friendly solution.

Natural gas emits fewer harmful emissions than other fossil fuels, but it should not be forgotten that it contains methane, a potent greenhouse gas. When it comes to electricity, there are no direct emissions during its use. Whether it is an environmentally friendly energy source depends on the energy source used for its production. If it comes from renewable sources such as wind or solar power, then the use of electricity is an environmentally friendly option for heating.

Lastly, I would mention heat pumps. They are an efficient and environmentally friendly way of heating, as they use natural heat sources from the air, ground, or water. What is important for them to be eco-friendly is that they are powered by electricity generated from green energy sources. However, the reason they are still not widely used is the high initial costs required for their installation.

The choice we make regarding energy sources for heating in households plays a crucial role in preserving the environment. If you decide to switch to a different heating method, you should be well-informed about the balance between costs and environmental impact. Choose an energy source that aligns with your means and that pollutes less.

Katarina Vuinac

Highest Annual Growth of Renewables Jobs in 2023, Reaching 16.2 Million

02.10.2024

solarni-paneli-radnik — Photo-illustration: Freepik (senivpetro)

2023 saw the highest ever increase in renewable energy jobs, from 13.7 million in 2022 to 16.2 million, according to the newly released Renewable Energy and Jobs – Annual Review 2024 by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO). The 18 percent year-on-year leap reflects the strong growth of renewables generating capacities, together with a continued expansion of equipment manufacturing.

A closer look at the report’s data, however, shows an uneven global picture. Close to two-thirds of new global solar and wind capacity were installed in China alone last year.

China leads with an estimated 7.4 million renewable energy jobs, or 46 percent of the global total. The EU followed suit with 1.8 million, Brazil with 1.56 million, and the United States and India, each with close to 1 million jobs.

As in the past few years, the strongest impetus came from the rapidly growing solar photovoltaics (PV) sector, which supported 7.2 million jobs globally. Of these, 4.6 million were in China, the dominant PV manufacturer and installer. Enabled by significant Chinese investments, Southeast Asia has emerged as an important export hub of solar PV, creating jobs in the region.

Liquid biofuels had the second-largest number of jobs, followed by hydropower and wind. Brazil topped the biofuels ranks, accounting for one third of the world’s 2.8 million jobs in this sector. Soaring production put Indonesia in second, with a quarter of global biofuels jobs.

Due to a slowdown in deployment, hydropower became an outlier to the overall growth trend, with the number of direct jobs estimated to have shrunk from 2.5 million in 2022 to 2.3 million. China, India, Brazil, Viet Nam and Pakistan were the largest employers in the industry.

In the wind sector, China and Europe remain dominant. As leaders in turbine manufacturing and installations, they contributed 52 percent and 21 percent to the global total of 1.5 million jobs, respectively.

Despite immense resource potential, Africa continues to receive only a small share of global renewables investments, which translated into a total of 324,000 renewables jobs in 2023. For regions in urgent need of reliable and sustainable energy access like Africa, and especially in remote areas, decentralised renewable energy (DRE) solutions – stand-alone systems that are not connected to the utility grids – present an opportunity to both plug the access gap and generate jobs. Removing barriers for women to start entrepreneurship initiatives in DRE can stimulate the sector, resulting in improved local economies and energy equity.

Source: IRENA

Challenges of Competitive Energy Production in the Global Market

02.10.2024

strujua-electricity-renewable — Foto-ilustracija: Freepik (freepik)

Forming a unified European energy market is crucial for the Energy Community (EC), which includes European Union members and nine other signatory countries. Although significant progress has been made over the past two years, there are still considerable obstacles. The slow transposition of the Electricity Market Integration Package is causing chain reactions that could jeopardize the Carbon Border Adjustment Mechanism (CBAM).

Artur Lorkowski, Director of the Energy Community Secretariat, spoke to Energy Portal Magazine about the challenges of electricity market integration, the importance of transitioning to clean energy sources, meeting Green Agenda goals, and the recent major power outage that affected Montenegro, Bosnia and Herzegovina, parts of Croatia, and Albania.

Q: How integrated are the Western Balkan countries into the common electricity market? What is the biggest obstacle to better and faster integration?

A: Since December 2022, significant progress has been made in integrating the Western Balkans’ electricity market into the EU internal market. The adoption of the Electricity Market Integration Package by the Energy Community is a significant step toward full integration, enabling participation in the Single Day-Ahead and Single Intraday Coupling (SDAC, SIDC) and integration into European balancing platforms. New day-ahead markets have been established in Albania, Montenegro, North Macedonia, and *Kosovo, alongside the existing market in Serbia, which has also launched an intraday market. These initiatives enhance short-term trading and provide transparent price signals. At the beginning of 2024, the price range between Western Balkan exchanges and HUPX averaged 0.28 to 3 EUR/MWh, indicating strong market integration with the EU. Market coupling is expected to increase efficiency and competition further. However, some challenges need to be addressed. The slow transposition of the Electricity Market Integration Package is a significant obstacle. None of the Western Balkan contracting parties have completed this process despite the deadline being the end of 2023. This affects the Capacity Calculation Region (CCR), which is crucial for market coupling. Delays could postpone market coupling with the EU until 2026, jeopardizing exemptions from the Carbon Border Adjustment Mechanism, which will be in effect from the start of CBAM implementation on January 1, 2026. Securing CBAM exemptions is critical for contracting parties with carbon-intensive electricity production that are electricity exporters. Without this exemption, CBAM implementation is likely to reduce the competitiveness of their electricity, leading to decreased revenues and profits for electricity producers and lower tax revenues for national budgets. Significant progress has been made in the Western Balkans. Still, to enable market coupling, the contracting parties must accelerate the transposition and implementation of the Electricity Market Integration Package and resolve political disputes. This will allow the Western Balkans to apply for CBAM exemptions in the electricity sector, improving economic competitiveness and strengthening their integration with the EU.

IN FOCUS:

Q: What are the main problems in electricity production and consumption in the Western Balkan countries, especially Serbia?

A: Serbia, like the rest of the Western Balkans, currently meets its electricity needs and exports surplus, but it faces key challenges in the future. Favorable hydrological and market conditions led to historic net exports in 2023, which continued into early 2024. However, the main challenge lies in producing electricity competitively in the future to finance investments in renewable energy sources needed to meet the 2030 targets. As such, the key issues are the need for a transition to more competitive, clean energy sources to ensure future profitability and investments in renewables while also dealing with outdated coal-fired power plants that are expensive to modernize and will be economically unsustainable under future carbon pricing conditions. A well-planned transition to sustainable energy is essential to ensure long-term electricity production and meet the 2030 targets. To meet the 2030 goals and ensure future profitability, Serbia must address the issue of outdated coal-fired power plants and invest in renewable energy sources. A well-planned transition to sustainable energy, guided by the new National Energy and Climate Plan, is crucial for long-term success.

Q: How will the introduction of CBAM affect the Western Balkan countries? Is it possible to delay the implementation of CBAM, and under what conditions would that be possible?

A: The CBAM regulation is now in effect and could significantly impact the Western Balkan countries due to their higher carbon intensity in exports compared to EU averages. To potentially secure an exemption from CBAM for electricity until 2030, the region must first integrate its electricity markets with the EU and commit to establishing an emissions trading system equivalent to the EU ETS by 2030. This exemption would provide crucial relief. The Energy Community Secretariat is available to support the contracting parties in meeting these criteria and navigating the necessary steps. The European Commission will further clarify options through impact assessments and political discussions at the Energy Community Ministerial Council in December 2024. At an informal ministerial council in Banja Luka earlier this year, the Secretariat and the European Commission advised the Western Balkan countries to consider developing an emissions trading system in line with the EU. This would ensure the best chance for CBAM exemptions in the electricity sector and economic relief.

Interview by Jasna Dragojević

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

* This designation is without prejudice to positions on status and is in line with the United Nations Security Council Resolution 1244 and the opinion of the International Court of Justice on Kosovo’s declaration of independence.

Crisis in the German Auto Industry Points to Deeper Problems and New Changes

01.10.2024

punjenje_električnih_automobila — Foto-ilustracija: Pixabay

The German automotive industry is facing a serious crisis in the sector. One of the factors is the not-so-speedy transition to electric vehicles (EV), along with high expectations and set goals. While the shift to more sustainable transportation is necessary to reduce emissions, German manufacturers such as Volkswagen (VW), BMW, and Mercedes-Benz are struggling with EV sales and high production costs.

What has further complicated the situation is the removal of government subsidies for the purchase of electric cars, which has automatically led to a drop in demand, despite companies having already invested huge amounts in developing this technology.

The renowned Volkswagen, as reported by global media, has seen a 14 percent drop in sales, while Mercedes-Benz has experienced a nearly 16 percent drop. Moreover, VW is facing a surplus of about 500,000 unsold vehicles. The company has already terminated long-standing job security contracts.

Geopolitical tensions and the unavailability of Russian raw materials further exacerbate the situation, while competition from China, which offers cheaper electric vehicles thanks to favorable production conditions and subsidies, is putting additional pressure on German manufacturers. This significantly challenges Europe’s most popular companies for decades.

Although there are no concrete solutions yet, the government is considering reintroducing subsidies for electric vehicles. However, analysts warn that the German auto industry must quickly adapt to electric mobility in order to maintain its competitive advantage in the global market. Otherwise, the crisis could have long-term consequences not only for the auto industry but also for other key sectors like mechanical engineering.

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