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Thomas LUBECK, IFC: Tailwinds to the Financial Market

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International Finance Corporation – IFC, one of the five members of the World Bank Group, is the world’s largest institution that encourages economic development by investing in the private sector in emerging markets. Serbia became a shareholder and a member of IFC in 2001 by purchasing a small package of shares, which was followed by an official invitation from our government to the IFC to come to Serbia and take part in the creation of an investment market as well as in connecting private companies with potential investors. IFC’s activities in our country have been managed for the past three years by Thomas Lubeck, who has recently been appointed Regional Manager for Southeast and Central Europe.

Photo: IFC

BRIEFLY ABOUT THE ICF

  • Founded in 1956 in Washington to promote economic development through investments in the private sector
  • It’s one of the five organizations that make up the World Bank Group
  • „175 countries are members of the IFC
  • „The major shareholders are the USA, Japan, Germany, France, and Great Britain
  • „Other countries have a share of 54.2 percent
  • „Invests solely in private business through loans or in the form of equity interest
  • „Does not invest with government guarantees, but can offer advisory services
  • „One of the IFC’s key roles in emerging markets is to bring private sector and investors together
  • „More information can be found at www.ifc.org

Having in mind that development of any market segment does not happen on its own, this financial institution has been supporting businesses through investment and advisory services for years in order to develop the domestic financial market and to encourage other investors to take part in the existing or future projects. Over the last 16 years, IFC has invested more than 2 billion dollars in a vast number of different projects in Serbia, and the first investment in infrastructure is a project for which IFC allocated the funds in the amount of 19.1 million euros to the Belgian company Elicio for the construction of the Alibunar wind farm. Following this project, IFC also supported the construction of the Čibuk 1 wind farm. The IFC and the European Bank for Reconstruction and Development approved 215 million euros loan to the company “The Balkan Wind farm” for building a wind farm, which will be the largest in the Balkans. Thomas Lubeck believes that these projects herald a change and we can now expect other investors to significantly devote their resources to projects in our country.

Photo: Elicio

“We can finally see our efforts being paid off, as the construction of these two wind farms stands for the first sizeable private foreign investment in renewable energy sources in Serbia.”

These two projects have manifold significance for our country – the renewable energy supply will be increased, the emission of harmful gases will be reduced and both energy mix and energy supply of households and businesses in Vojvodina will be improved. Having in mind that Serbia is one of the biggest greenhouse gases producers in Europe, based on the fact that 70% of our electricity is generated from coal-fired power plants, it’s essential we should use the great potential of renewable energy sources on hand.

These projects have brought in the added value such as the key support to the commercial banks, as investors, to help them finance and invest in renewable energy sources. Thomas points up that the IFC is making great effort to mobilize domestic banks so that they take part in such projects alongside the IFC. “By doing this we are creating the market, we are motivating the banks to invest paying attention at the same time that they should be protected. In fact, working on these projects we have mobilized other entities to also invest their funds.“

THE CONSTRUCTION PROGRESS: MALIBUNAR FINISHED, ALIBUNAR UNDERWAY

Elicio company finished in October the construction of Malibunar wind farm, with the total capacity of 8 MW, which will supply 7,200 households with electricity. In this area of South Banat, which is very suitable for wind energy exploitation, since it belongs to the region with strong Košava wind, this company started in June the construction of another and larger wind farm Alibunar, that will have 21 wind turbines providing five times bigger capacity. The investment value is 80 million euros, and besides the IFC, the investors are UniCredit Bank, Dutch Development Bank, and GGF and the Elicio company.

In addition to the direct investments, this financial corporation was involved as an advisor to the City of Belgrade on a major project for getting energy from waste which was brought to an end after two years of negotiations and cooperation with the City’s authorities. “State and local governments hire us to help them properly structure concessions or public-private partnerships, we do tenders and make sure the governments get absolutely the best deal for the market. If you take into account the fact that we work primarily with the private sector, who can better know how private companies think and work. That being the core of our business, we can offer the best advice on how to get the private sector in, so that they invest in a matter of public importance, always bearing in mind the well-defined interest of state or local government. Here we’ve got a team experienced in working with investment banks precisely on investment advisory projects. To this end, Belgrade will be able to use up to 60-70 percent of waste for heat and electricity production. All this waste is now still dumped at the Vinča landfill without any sorting. There are many benefits from this project − besides energy production, the lifespan of the landfill will be prolonged, and certain environmental problems caused by ongoing method of waste disposal to the landfill will be solved”, explains Thomas Lubeck adding that this is the first IFC’s advisory service project related to the establishment of a private-public partnership in Serbia in the field of energy production that will surely pave the way to new partnerships that require long-term investment in other sectors in our country.

Photo: Elicio

Many countries are facing one of the crucial developmental challenges such as urban infrastructure, bearing in mind that urban globalization trend will continue in the next twenty or thirty years and that people will keep on leaving rural areas in search for better life in cities. Having implemented individual projects in various cities in order to set up sustainable infrastructure, the IFC launched a more comprehensive initiative called Smart Cities. Thomas Lubeck explains that they have aimed for a holistic approach to designing this city development strategy, taking into consideration what cities will look like in the upcoming decades and what their population will be. “Here we have a strategy that should include numerous improvement measures, which also involves the implementation of energy efficiency in buildings, and we have chosen several cities to work with. Along with Istanbul, Izmir, and Lima, Belgrade is also among the future Smart Cities, and with these advisory projects on investment possibilities for energy production from waste, or for water supply and energy efficiency in public buildings, we have taken the first steps that should help your capital city to address emerging developmental challenges.” While financing and construction projects are still far from being carried out, a review is being done in partnership with the European Union about where investment might get the most efficiency.

ČIBUK 1 – THE LARGEST FARM IN THE BALKANS

Čibuk 1 wind farm, with the capacity of 158 MW, 300 million euros worth, will occupy a total area of 37 square kilometers. The wind farm is part of “The Balkan Wind farm” project that is implemented through a 60:40 partnership between Abu Dhabi Future Company Masdar, United Arab Emirates and Cibuk Wind Holding, branch of the American company Continental Wind Partners. The 107.7 million euros financial package provided by the IFC consists of a direct top-up loan of 52.7 million euros, a loan of 36.7 million euros granted by IFC through its Co-financing Program portfolio and Syndicated B Loan of 18.3 million euros. At the same time, the EBRD has provided 17.7 million euros through syndicated loans of type A and B. The project will include 57 wind turbines obtained from General Electric company and it is expected to improve power supply for approximately 113,000 households and businesses. It is expected that the construction of Čibuk 1 wind farm will be finished at the beginning of 2019. The project will also help reduce carbon dioxide emissions by 370,000 tons per year. The project should create as many as 400 new jobs during its construction, as well as to improve local infrastructure with 50 km of new roads. The project will also help Serbia fulfill its obligations under the Energy Community Treaty establishing that in 2020, 27 percent of energy consumption comes from renewable sources.

Interview by: Tamara Zjacic

This content was originally published in the eighth issue of the Energy Portal Magazine ECOHEALTH, in November 2017.

UK Carbon Emissions Fall to 1890 Levels

Foto- ilustracija: Pixabay
Photo-illustration: Pixabay

The last time annual UK carbon dioxide emissions were as consistently low as they are currently air travel was still an unproven invention and Oscar Wilde was preparing to publish his first and only novel, The Picture of Dorian Gray.

New analysis published today by Carbon Brief reveals carbon emissions dropped 2.6 per cent in 2017, bringing them down to levels last seen at the end of the 19th Century.

The only exceptions were the miner strikes in 1893 and 1921, and the general strike in 1926, when plummeting industrial activity led to record low annual emissions.

Last year’s fall in emissions was driven by a 19 per cent decline in coal use during 2017, which followed the game-changing 52 per cent drop in coal use in 2016 that drove total emissions down by 5.8 per cent.

The analysis, which comes ahead of official government emission estimates later this month, underscores the remarkable progress in CO2 reduction made in the UK over the last two decades, thanks in large part to the retirement of large-scale coal power from the UK electricity system.

The UK government has pledged to close all coal-fired power stations by 2025, paving the way for further emission reductions in the coming years.

But the UK still has long way to go to it meets its legal target of cutting emissions to 80 per cent below 1990 levels by 2050. Currently, emissions are 38 per cent below 1990 levels and need to fall a further 68 per cent to reach the target.

With coal largely phased out of the UK energy system, the responsibility for delivering deep cuts in emissions will increasingly fall on other areas of the economy. But transport, which as the highest emitting sector of UK economy is firmly in the crosshairs for decarbonisation, saw emissions rise in 2017.

Carbon Brief estimates 38 per cent of total UK CO2 emissions from fossil fuels can be attributed to oil consumed in the transport sector in 2017, a rise of two per cent compared to 2016.

Although the latest analysis cautions that due to differences in methodologies this number may differ from government estimates later this month, it follows a trend from 2016 when government data showed a rise in transport emissions on 2015 levels.

Meanwhile, average CO2 emissions from individual cars have started rising again for the first time in years, as motorists shun diesels in favour of new petrol cars in the wake of the ‘dieselgate’ scandal and tightening air quality rules in many urban areas.

Source: businessgreen.com

Microsoft Inks First Renewable Energy Deal in India

Foto: pixabay
Photo-illustration: Pixabay

Microsoft has this week announced that it has inked its first-ever renewable energy deal in India, a small solar Power Purchase Agreement with Atria Power in the Indian state of Karnataka.

Announced on Tuesday, Microsoft confirmed that it had signed its first renewable energy Power Purchase Agreement (PPA) in India. The deal will see Microsoft purchase 3 megawatts (MW) of solar power from renewable energy provider Atria Power, a small company based in the capital of Karnataka. The power is intended for powering Microsoft’s new office building in the city and will account for 80% of the building’s electricity consumption.

The PPA is also part of a program set out by the state government of Karnataka to encourage investment in local solar energy operations to help meet the country’s larger goal of increasing solar power generation to 100 gigawatts by 2022.

“Investing in local solar energy to help power our new Bangalore office building is good for Microsoft, good for India and good for the environment,” said Anant Maheshwari, president, Microsoft India. “We are proud to be deepening our long history of partnership and investment in India with this agreement. This deal will help us grow sustainably and supports the growth of the Indian solar energy industry so that the entire country can more easily and reliably access clean electricity.”

“Microsoft, like India, has ambitious commitments to use more renewable energy,” added Rob Bernard, chief environmental strategist, Microsoft. “By purchasing local solar power to meet some of our local electricity needs, we’re not only meeting our goals but also supporting the growth of local clean energy industries. This growth leads to more clean electricity capacity, which will help India meet its targets for the Paris Agreement, reduce carbon emissions and provide clean electricity to its growing population. We’re proud to play a small role in this Indian energy transformation.”

This is not only Microsoft’s first renewable energy deal in India but also one of the company’s first in Asia, following hot on the heels of last week’s announcement in Singapore in which Microsoft signed an agreement to acquire 100% of the electricity generated by the country’s largest solar project. Specifically, Microsoft will secure 60 MW from a solar portfolio that spans hundreds of rooftops across Singapore for use in powering Microsoft’s data center in the region.

Source: cleantechnica.com

Dutch PM Calls for More Ambitious 2030 EU Climate Target

Photo-illustration: Pixabay
Photo-illustration: Pixabay

The Dutch prime minister has urged the EU to “raise the bar” on climate action by adopting a new emissions reduction target for 2030 of 55 per cent below 1990 levels.

The high-profile intervention comes shortly after calls by Swedish and French ministers on the European Commission to commit to deeper, faster emissions cuts.

The EU’s current goal of a 40 per cent cut on 1990 levels by 2030 was “too low to keep warming below 2C, let alone 1.5C”, said Mark Rutte in a speech in Berlin on Friday.

The 2015 Paris climate agreement formalised global goals to limit warming to “well below” 2C and ideally hold it to 1.5C. But Rutte said the EU’s current goals, set in 2014, were insufficient and needed to be updated.

“We need to raise the bar… This will show that we’re serious about the commitments we made in Paris. By adopting this target, the EU will be doing its share to get closer to the global ambition of keeping warming to 1.5C. So let’s not delay. The current commission could start making preparations. I’d like to see the June European Council approve this.”

EU targets are set through three-way negotiations between the European Commission, the parliament and the council of national governments. Broadly, climate ambition within Europe is subject to a contest between coal-reliant eastern member states and more green-minded western countries.

“The path ahead may be long,” said Rutte. “But one way or another we’re going to have to kick our addiction to fossil fuels. And make no mistake: most of us will live to see it. This is another area where Europe has a responsibility, and a job to do.”

Camilla Born, senior policy advisor at E3G, said Rutte’s speech “stands out and gives shape to an emerging coalition of countries” who are pushing the EU to raise its sights.

This vanguard includes Sweden. Climate minister Isabella Lövin met with EU climate commissioner Miguel Arias Cañete last month and said she had pushed for the EU to raise its ambition to become a net zero carbon emitter by 2050.

Also last month, French ecology minister Nicolas Hulot met with Maroš Šefčovič, the commission’s vice-president in charge of the energy union, and lobbied for a net zero emissions target.

CHN asked the commission whether it was considering recommending a policy change and whether it agreed that the EU target had been outdated by the Paris deal.

Commission spokeswoman Anna-Kaisa Itkonen referred to a package of measures laid out by the commission in November 2016 aimed to meet the 40 per cent emissions cut, which has not yet been adopted by the member states and parliament.

“The commission has made ambitious yet realistic proposals for the EU to reduce at least 40 per cent of GHG emissions by 2030, which is our pledge to the Paris Agreement. These proposals are with the European co-legislators (member states and the European parliament) now and they might decide to go further,” said Itkonen.

Rutte’s speech coincided with a major speech on Brexit by British prime minister Theresa May. Rutte used the opportunity to draw a line between divisive and inclusive visions for Europe’s future.

“You had a choice today,” Rutte told an audience at the Bertelsmann Foundation. “You could have listened to a speech in the UK about a future without Europe. Or a speech in Berlin by someone who believes in Europe and wants to talk about the best way to move forward with Europe.”

Europeans had committed to working together, Rutte said, “because it is the only way we can respond effectively to global challenges like climate change, migration and the future of world trade”.

According to a transcript from the Spectator, May did not mention climate change, despite it being a major area of cooperation between the UK and EU.

The UK has long been seen as an advocate for ambition within EU climate policy. It’s current domestic 2030 emissions target is for a 57 per cent cut.

Rutte’s latest governing coalition, when it was formed last year, promised to phase out coal power by 2030 and flagged its intention to push stronger ambition at EU level. It also laid out a domestic 2030 target of 49 per cent.

In February, the government announced the development of a “national climate agreement”, which will lay out the path to reach that target.

At the same time, Rutte’s government is appealing a landmark court ruling. Campaign group Urgenda convinced a Dutch court that the country’s 2020 target was insufficient to deal with the threat climate change and sea level rise poses to the low-lying country. The government has to implement the court’s orders pending the outcome of the appeal.

Dennis van Berkel, legal counsel for Urgenda told Climate Home on Monday: “We welcome the speech by the prime minister and are looking forward to his actions to speed up the energy transition in the Netherlands.

“The 49 per cent national target is independent from whether the EU raises its target for 2030. I assume that if the 55 per cent EU targets gets adopted, the Dutch government will also have to step up its ambition for 2030,” he said.

Source: businessgreen.com

Researchers Unveil Several Ways to Limit Global Warming to 1.5°C by 2100

Photo-illustration: Pixabay
Photo-illustration: Pixabay

A group of researchers led by International Institute for Applied Systems Analysis has used new modelling scenarios to showcase several ways with which to limit global temperature rise to 1.5°C by 2100.

According to their research, “Scenarios towards limiting global mean temperature increase below 1.5 °C“, published in the journal Nature Climate Change, there are in fact several ways to limit global warming to the Paris Agreement’s goal of 1.5°C by 2100, but their modelling shows that the right circumstances are necessary. The research represents one of the first times that scientists investigating limiting global warming to 1.5°C by 2100 have also looked at how socioeconomic conditions such as inequalities, energy demand, and international cooperation would contribute to the feasibility of achieving those goals.

The new research is based on six integrated assessment models and a simple climate model, run under different socio-economic, technological, and resource assumptions that stem from five Shared Socio-economic Pathways (SSPs). The SSPs were previously developed by the International Institute for Applied Systems Analysis (IIASA) along with key partners, and provide a look at different ways in which the world and society might progress. They include a scenario in which the world pursues sustainability, another scenario in which economic and population growth continues along business-as-usual pathways, and another in which the world focuses instead on high economic growth over sustainability.

The researchers showed that not all of these Pathways can limit global warming to 1.5°C by 2100, but did show (unsurprisingly) that all of the successfully modelled scenarios included a rapid shift away from the use of fossil fuels and towards low-carbon energy sources, lowered energy use, and the removal of CO2.

Meanwhile, barriers to achieving a 1.5°C limit to global warming included strong social and economic inequalities, continued reliance on fossil fuels, and unambitious short-term climate policies.

“A critical value of the paper is the use of the SSPs, which has helped to systematically explore conditions under which such extreme low targets might become attainable,” said IIASA Energy Program Director and coauthor Keywan Riahi. “Our assessment shows particularly the enormous value of pursuing sustainable development for reaching extreme low climate change targets. On the other hand, fragmentation and pronounced inequalities will likely come hand-in-hand with low levels of innovation and productivity, and thus may push the 1.5°C target out of reach.”

According to the research, successful scenarios saw greenhouse gas emissions peak and already begin to decline by 2030, continuing to decrease over the next two to three decades at which point zero net greenhouse gas emissions are reached between 2055 and 2075. The successful scenarios also limited energy demand by improving energy efficiency measures. Bioenergy and renewable energy technologies must scale up dramatically over the coming decades, making up at least 60% of electricity generation by 2050. Coal use must fall to less than 20% of its current levels by 2040 and oil is phased out by 2060.

“One of the goals of the Paris Agreement is to limit warming to 1.5°C, but scientific studies mainly looked at the question of limiting warming to 2°C,” said Joeri Rogelj, IIASA researcher and lead author of the study. “This study now fills this gap and explores how climate change by the end of the 21st century can be brought in line with 1.5°C of warming. Individual studies have looked at this question in the past, but this study is the first to use a broad and diverse set of models.”

The successful 1.5°C pathways are now intended for use by the wider climate change research community to be run on the most complex coupled climate models, and will serve as a starting point for further research.

“The study provides decision makers and the public with key information about some of the enabling conditions to achieve such stringent levels of climate protection,” added Rogelj.

Source: cleantechnica.com

India’s Lithion Power To Invest $1 Billion In Battery Swap Program For EVs

Foto - ilustracija: Pixabay
Photo-illustration: Pixabay

India has seen announcements of ambitious plans by automakers in the past few months regarding the introduction and expansion in production of electric vehicles. Companies that provide charging technology have also announced plans to invest in India. Now, a small company based in New Delhi has announced a huge plan to take advantage of the impending explosion in battery demand in India.

According to media reports, Lithion Power plans to invest $1 billion to create a battery swap ecosystem for electric vehicles in India. The company is expected to enter a partnership with other companies to muster the $1 billion investment.

Although the company launched just two years back, it has announced a very ambitious, yet sound business plan. The Indian government has set a target to stop sales of fossil fuel-based cars by 2030. In a policy document released by NITI Aayog, a government arm responsible for drafting long-term policies in India, battery swap was explicitly mentioned as a market-based solution to promote electric vehicles.

Lithion Power is reportedly operating five battery swapping stations in Delhi. They usually cater to small, shared mobility vehicles such as two-wheelers and three-wheelers. The company is expected to maintain a focus on this market segment at least for the next few years. The Indian government is expected to push electric mobility in the public/shared transportation sector first. Automakers in India, too, have mentioned that it would not be easy for the government or the industry to thrust the use of electric cars in the passenger segment.

Company officials told media outlets that battery swapping for electric cars would take time as the battery manufacturers would have to understand the required technical requirements. Yet, the company expects at least one million electric vehicle batteries working on a swapping model in the next three years.

As India moves to introduce electric vehicles on a large scale, many companies are expected to introduce such experimental market models to figure the most financially viable options to survive and thrive.

Source: cleantechnica.com

Statoil Acquires 50% Interest In 1.2 Gigawatt Polish Offshore Wind Farms

Photo illustration: Pixabay
Photo-illustration: Pixabay

Norwegian oil and gas giant Statoil has announced this week it has signed an agreement to acquire a 50% interest in the early phase development of two offshore wind farms in Poland with a combined capacity of 1.2 gigawatts.

Statoil, which is the world’s largest offshore operator and has significant oil and gas assets, is nevertheless making significant strides in diversifying its holdings to acquire renewable energy projects. Among its many new renewable assets is the groundbreaking world first floating offshore wind farm, the 30 megawatt Hywind Scotland, which was recently revealed to be performing even better than had been expected.

Announced on Monday, Statoil revealed that it had entered into an agreement with Polish electric power distribution company Polenergia to acquire a 50% stake in the Bałtyk Środkowy III (BSIII) and Bałtyk Środkowy II (BSII) offshore wind farms which, together, have a planned capacity of 1.2 gigawatts (GW), enough to supply electricity to approximately 2 million Polish households.

“We are very pleased to have entered into a partnership with Polenergia, which is an experienced energy company with a growing renewable portfolio and in-depth knowledge of the Polish electricity market,” explained Irene Rummelhoff, executive vice president of New Energy Solutions in Statoil. “Statoil has an ambition to grow significantly within renewable energy investing up to EUR 10 billion in profitable renewable energy towards 2030, and this acquisition strengthens our presence in the Baltic Sea area giving opportunities for scale and synergies in a longer perspective.”

Located approximately 27 and 40 kilometers off the coast of Poland in the Baltic Sea, Bałtyk Środkowy II and III each have a planned capacity of 600 megawatts and are expected to begin construction respectively in 2023 and 2020, with completion dates respectively in 2026 and 2022.

The move for Statoil falls in line with its existing priorities and projects, as it is already developing with EON the 385 MW Arkona wind farm in the German part of the Baltic Sea, and is also operating three offshore wind farms off the UK coast.

“We are entering a market with growth potential through two of the most advanced offshore wind developments in Poland,” added Rummelhoff. “The country is well-placed to develop a strong offshore wind industry that would create jobs and value in one of the most dynamic parts of the European markets. Following a dramatic reduction in cost for offshore wind, we are looking forward to work with our new partner, the Polish authorities and the Polish supply chain to advance offshore wind as a competitive source of energy and industry.”

Source: cleantechnica.com

ENGIE North America Secures 320 Megawatt Solar Pipeline In SoCore Energy Acquisition

Foto-ilustracija: Pixabay
Photo-illustration: Pixabay

ENGIE North America has this week announced the acquisition of Chicago-based SoCore Energy and its 320 megawatt pipeline of operational and late-stage development solar and battery storage projects.

The North American subsidiary of French multinational electric utility company ENGIE announced on Monday that it had signed an agreement to acquire SoCore Energy, a Chicago-based solar and storage developer with experience in the commercial, industrial, and distributed sectors. SoCore Energy boasts 150 megawatts (MW) of solar assets already in operation or under construction as of March 31, and a further 170 MW worth of solar projects in late-stage development, as well as numerous projects combining battery storage elements.

The move comes only a fortnight after ENGIE North America announced the acquisition of leading California-based utility-scale wind energy developer Infinity Renewables, and its pipeline of 8,000 MW worth of wind projects in various stages of development.

“As with our recently announced acquisition of wind developer Infinity Renewables, with SoCore, ENGIE is investing in an experienced, accomplished development team, and we look forward to working with this team to accelerate the expansion of our renewables presence within the United States,” said Frank Demaille, President and CEO of ENGIE North America. “By adding more solar energy to our other retail, wind, and biomass offerings in the U.S., we can meet customers’ renewable energy procurement goals much more comprehensively than before.”

“The SoCore team is enthusiastic about joining the ENGIE group,” added Rob Scheuermann, CEO and President of SoCore Energy. “Solar development firmly aligns with the strategic direction of ENGIE, and the combination of our talents will enable accelerated growth in the business, as well as more solutions for customers, including solar-with-storage options.”

As with many energy utilities around the world, the urge to diversify into renewable energy sources is strong, and in particular the solar energy sector, with its opportunities for widespread utilisation.

“This is definitely a strategic play in the commercial solar space,” said GTM Research solar analyst Michelle Davis. “In general, Engie is trying to get involved in earlier stages of the commercial solar development value chain. This helps reduce transaction costs and lengthy due diligence steps that are necessary for any given commercial project.”

Source: cleantechnica.com

IKEA Enjoys Sustainable Product Sales Growth and Clean Energy Uptick

Photo-illustration: Pixabay
Photo-illustration: Pixabay

IKEA has revealed further growth in global sales across its sustainable products range last year, as the Swedish furniture giant today reported progress on renewable energy generation as part of its latest sustainability update.

Published today, IKEA’s annual global sustainability report covers the year ending 31 August 2017, and shows that sales of its Sustainable Life at Home range – items which enable customers to save energy, water, waste and money – have grown to €1.7bn.

The range now encompasses more than 500 products, including recycling bins, low energy lightbulbs, efficient kitchen taps and induction hobs which are designed to avoid the air pollution produced by traditional gas cookers.

It also includes its in-store solar panel and battery storage range, which after launching last year is now available in five countries – the UK, Netherlands, Poland, Belgium and Switzerland. The firm said it wanted to become the “first global solar retailer”.

The reportalso confirms the proportion of renewable electricity used by IKEA globally rose from 71 per cent in 2016 to 73 per cent last year, with 750,000 solar panels now installed on IKEA buildings and the firm having invested in 416 wind turbines.

In total, IKEA’s wind and solar sites generated more than 2,300GWh of renewable electricity over the period, the report confirmed, as the company moves closer to its target of generating as much clean energy as it consumes by 2020.

LED lightbulb sales, meanwhile, surged from 79 million bulbs in 2016 to 85 million last year, with IKEA setting its sights on selling 500 million ultra-efficient bulbs between 2015 and 2020.

Scope 1 and 2 emissions from within the retailer’s operations also fell 2.3 per cent, as the company reported slight improvements in energy efficiency across its retail and distribution centre buildings.

However, challenges remain for the company regarding its overall climate impact, with the report showing its scope 3 emissions from across its value chain – by far its bigger source of CO2 – increased from around 22.6 million tonnes to 23.5 million tonnes last year.

Moreover, while IKEA said it diverted 91 per cent waste from its operations away from landfill and instead towards energy recovery, recycling or reuse, the overall amount of waste generated by the company rose fractionally due to business growth and “other factors” IKEA said it was currently investigating.

Waste and resources are set to be a priority for 2018, IKEA said, with a new waste reduction strategy on its way later this year.

Elsewhere, the report signals IKEA is considering “alternatives to our current out of town locations” with a view to improving access for walkers and cyclists, as well as trialling more small ‘pick up and order points’ in city centres for customers.

In addition, the company said it was looking at adding more plant-based protein alternatives to meat in its rapidly growing food business, as well as researching ‘urban farming’ projects in Sweden.

Pia Heidenmark-Cook, chief sustainability officer at IKEA, said she was “excited by the year ahead when we will introduce our updated sustainability strategy with ambitions and commitments leading to 2030”.

The Swedish retailer is poised to launch a new set of global, science-based sustainability targets as part of its People and Planet Positive strategy. The previous strategy, which set targets for 2020, was first launched in 2012 and updated in 2014.

“Since we decided to go all-in for people and the planet, we’ve demonstrated how sustainability can be a driver of innovation and renewal – contributing to the success of our business,” Heidenmark-Cook added. “These steps are not just critical for the future-proofing of our business, they are also what the world needs today.”

The global sustainability results follow a year in which IKEA’s UK stores sent zero waste to landfill and generated 41 per cent of the electricity it uses from renewables.

It has also recently teamed up with the Big Clean Switch campaign to encourage staff and customers to switch their energy supplier to those that source 100 per cent renewables.

Source: businessgreen.com

Vattenfall Plans €100 Million Investment In Large-Scale Solar

Photo: Pixabay
Photo-illustration: Pixabay

Swedish power company Vattenfall, known most recently for its wind energy development, has announced that it plans to invest €100 million in large-scale solar energy generation over the next two years, as part of the company’s plans to become fossil free within a generation.

Announced last week, Vattenfall revealed plans to invest 1 billion Swedish krona (SEK), or €100 million, in large-scale solar energy generation over the next two years — specifically in areas where Vattenfall can use existing infrastructure to reduce the overall cost of a project.

This is not a surprising move, considering a July 2017 announcement that it would begin moving into the solar PV + storage market. The move split its previous Business Area Wind unit into three separate Business Units — Offshore Wind, Onshore Wind, and Photovoltaic & Battery.

“Already early this year, we have taken a decision to adjust our ways of working towards the anticipated market developments,” explained Gunnar Groebler, Head of Vattenfall Wind at the time. “With the “go live” of the new structure, we again put more focus on profitable growth in the renewable space and hence supporting Vattenfall’s overall ambition to power climate smarter living and becoming CO2 free in just one generation.”

Vattenfall already has the 5 megawatt (MW) Parc Cynog solar farm in Wales, paired with its wind farm. The company has also already finalized investment decisions for three large-scale solar projects at existing plants in Velsen, Hemweg, and Eemshaven in the Netherlands which, in total, will have a capacity of 10.5 MW. Vattenfall also has planned investments in the Netherlands this year, including the Haringvliet solar farm which will have a total capacity of 40 MW and will be combined with the nearby Haringvliet wind farm.

“Solar power is an important supplement to wind power as a renewable source of energy,” said Magnus Hall, Vattenfall’s President and CEO. “We are now increasing the investment budget for solar power to satisfy our customers’ increased interest and demand. From electricity consumers, who can obtain electricity from our future solar farms, but also from potential customers, who want to both consume and generate electricity from solar power.”

Source: cleantechnica.com

Costs Fall In Latest French Onshore Wind Tender

Photo-illustration: Pixabay
Photo-illustration: Pixabay

Costs have fallen in the latest French onshore wind tender with a total of 22 projects totaling 508 megawatts being awarded at an average winning price of €65 MW/h, according to results published by the French Government.

The results from the recent French onshore wind auction were published on the 28th of February, and a total of 22 projects were awarded contracts for a cumulative total of 508.4 megawatts (MW) at an average price of €65 MW/h. A total of nearly 900 MW worth of bids were submitted. The weighted average of €65 MW/h, according to European wind energy trade body WindEurope, was lower than the current tariff for smaller projects (€72 MW/h) and the €82 MW/h Feed-in Tariff previously awarded.

According to French renewable energy valuation company Envinergy, Nordex Development walked away with the largest share of the tender, with 99.6 MW, followed by Quadran and WPD.

“The results are unambiguous,” said French Minister for Energy, Nicholas Hulot. “The maturity and competitiveness of onshore wind and more widely renewable energies are a reality. We are only at the beginning of the energy transition.”

Praising the results of the tender, WindEurope CEO Giles Dickson said:

“It’s good to see costs fall. But they remain higher in France than elsewhere in Europe for a number of reasons. First, because project lead-time in France is seven to nine years on average, and once you apply for your permit at the start of the process it’s almost impossible to update it later on with the latest technology. So French developers don’t install state of the art turbines. Also the tip height of turbines is often limited to 150m or less in case of radars and aviation constraints which undermines the deployment of the latest technology. Projects are also get held up in the courts: 70% of authorised projects are currently held up in Administrative Tribunals.

“The government has now proposed reforms that will reduce the average time it takes for wind projects to be completed and connected to the grid. This is very good. The government also proposes to partially phase out the Contract for Differences tariff for small projects, reducing the eligibility to very small projects. It’s extremely important they do this the right way. Retroactive changes undermine investor confidence. They need protection for existing investments and stability and visibility on support mechanisms.”

Source: cleantechnica.com

Oklahomans Overwhelmingly In Support Of 2 Gigawatt Wind Catcher Wind Farm

Photo-illustration: Pixabay
Photo-illustration: Pixabay

A new survey from SoonerPoll has revealed that Oklahomans are overwhelmingly in support of the 2 gigawatt Wind Catcher Energy Connection set to be developed Invenergy and GE Renewable Energy.

Announced back in July of 2017, the 2 gigawatt (GW) Wind Catcher wind farm is set to become the world’s second largest, and the United States’ largest onshore wind farm, once completed. It is being jointly developed by Invenergy and GE Renewable Energy with a $4.5 billion investment from American Electric Power. The project will consist of 800 GE 2.5 megawatt wind turbines and eventually link 1.1 million South Central US customers across a network with clean wind energy.

And, according to a new study conducted by SoonerPoll, Oklahoma’s only independent, non-partisan public opinion pollster, an overwhelming majority of 75.5% of Oklahomans support the project. Of that support, 45% “strongly supported” the project and 30.5% “somewhat supported” it.

The poll showed that support for Wind Catcher was spread broadly across all ages, geographical location, political parties and ideological viewpoints, and both men and women. Support also existed both inside and out of the Public Service of Oklahoma (PSO) service area which will primarily benefit from the renewable energy.

Further, the poll showed that 78% of Oklahomans support the development of more wind and other renewable energy sources across Oklahoma, a vitally important figure for Oklahoma’s renewable energy industry.

Source: cleantechnica.com

SmartestEnergy Inks PPA Agreement to Kickstart Construction on 10MW Wind Farm

Photo: Pixabay
Photo-illustration: Pixabay

Work has started on a new Scottish wind farm after energy firm SmartestEnergy agreed a power purchase agreement (PPA) with Whirlwind Renewables to buy the power from the project.

Under a 15-year deal announced yesterday, SmartestEnergy will buy electricity from the five-turbine, 10MW Achlachan project in Northern Scotland.

The deal allowed the site to reach financial close and start construction work, Whirlwind Renewables said, with commissioning scheduled for January 2019.

Achlachan was one of the only schemes to have been awarded a Contract for Difference (CfD) price support contract from the government before rule changes excluded onshore wind farms from participating in the auctions.

“We’re delighted that construction work has now started following financial close on the project,” Thomas Chappell, director at Whirlwind, said. “Achlachan is the biggest project we have taken forward entirely by ourselves and will make a valuable contribution towards Scotland and the UK’s renewable energy targets.”

Advocates of onshore wind maintain that it represents one of the lowest cost forms of power currently available. However, developers are struggling to bring new projects to market after the government controversially blocked onshore wind projects from competing with more expensive offshore wind projects for CfD contracts at auction.

Some industry insiders are hopeful that private sector PPAs with large power users could replicate CfDs in the future and allow “subsidy-free” onshore wind farms to come to market.

Source: businessgreen.com

The World’s First Floating Wind Farm has Already Exceeded Expectations

Foto: Pixabay
Photo-illustration: Pixabay

Hywind is the first commercial floating wind farm, located more than 15 miles off the coast of Aberdeenshire, Scotland in the North Sea. Built by Norwegian conglomerate Statoil, the six turbines came online last October, generating 30MW of power.

Since that time, the wind farm has exceeded expectations, with a 65 percent capacity factor over the last three months. As noted at Ars Technica, capacity factor is a measure of a power plant’s production against its maximum capability. Nuclear plants, for example, have a capacity factor of nearly 100% because they’re always running.

By comparison, according to the U.S. Energy Department, solar photovoltaic generation averaged 27 percent in 2017, with conventional hydropower such as dams averaging about 45 percent. It’s an encouraging development for the future of renewable energy.

The strong offshore winds produce a lot of electricity, but even the huge wind turbines have their limits. The wind farm weathered hurricane Ophelia in October, with gusts of up to 80 mph, followed by a December storm that produced winds as high as 100 mph and 27-foot-high waves.

“Whilst the wind turbines shut down for safety reasons during the worst of these winds, they automatically resumed operation promptly afterwards,” Statoil wrote in a post on its website. “A pitch motion controller is integrated with the Hywind turbine’s control system and will adjust the angle of the turbine blades during heavy winds which mitigates excessive motions of the structure.”

The turbines are massive floating structures, more than 830 feet tall with nearly a third of that below sea level. The blades themselves are more than 245 feet long.

Winds are stronger during the winter months, of course, so the capacity numbers don’t reflect the year-round output. Still, Hywind can power as many as 20,000 homes, and the company is hoping that innovation and technology will drive the price down even further. By 2030, the company wants to lower cost to $50 to $75 per MWh.

“This is an ambitious, but realistic target,” said a Statoil spokesperson. “Optimized design, larger and more efficient turbines, technology development, and larger wind parks will drive down costs, improve infrastructure and logistics.”

The company points out that fixed wind farms can only be built in certain locations close to shore, but their floating turbines aren’t restricted to shallow waters. “The west coast of the USA, Japan, and Hawaii are all places that need a lot of energy and that are consistently windy, but where the sea is very deep,” said engineer Halvor Hoen Hersleth. “Floating wind power is ideal for these areas.”

Source: digitaltrends.com

Kazakhstan to Add 2 GW of Renewables by 2020 – Report

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Photo-illustration: Pixabay

Renewable energy facilities totalling 2 GW are set to be commissioned in Kazakhstan by end-2020, the Astana Times reports, citing energy minister Kanat Bozumbayev.

The capacity will come from about 52 of renewable energy projects that will add to the 55 already operational plants in the country with a combined capacity of 336 MW.

Bozumbayev was also quoted as saying that the renewable energy industry in the Asian country will be supported by around USD 244.2 million (EUR 198.5m) by the European Bank for Reconstruction and Development (EBRD). The lender will also aim to bring between EUR 40 million and EUR 80 million of private and international investment in the sector, he added.

According to the report, among the companies seeking development opportunities in Kazakhstan’s renewable energy field are US conglomerate General Electric (NYSE:GE) and the Development Bank of Kazakhstan (DBK). The Asian Republic’s long-term goal is to source from renewables and alternative energy plants 50% of its electricity consumption by 2050.

Source: renewablesnow.com

Goshen College Set for Campus Solar Energy Project

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Photo-illustration: Pixabay

A Mennonite college in northern Indiana is planning to install more than 900 electricity-generating solar panels on its campus.

Goshen College says the solar panels will be placed atop the school’s Rec-Fitness Center. The 900-student college says it is undertaking the project with the College Mennonite Church, with which it shares the Church-Chapel building on campus.

Church member David Lapp Jost says the renewable energy project is a testament to the college’s values of environmental sustainability and stewardship. Planners anticipate the project’s power production will offset the chapel building’s electric bill

School officials expect the 924-panel solar array will be installed by the end of March.

Source: sanluisobispo.com