Member States set IFAD on track to largest replenishment ever to tackle poverty, hunger and the climate crisis

19.12.2023

watering-poljporivreda-hrana — Photo-illustration: Pixabay

Photo-illustration: Unsplash (Zoe Schaeffer)

At a time when climate change and conflict are fuelling greater food insecurity in many developing countries, the International Fund for Agricultural Development (IFAD) received record-breaking pledges in support of its largest replenishment ever, putting the organization on track to positively impact the lives of millions of rural people across the globe.

Many of the pledges were made during a fourth replenishment session hosted in Paris over the last two days by Angola and France.

To date 48 Member States have pledged USD 1.076 billion to replenish its core resources. Ten countries have increased by more than 50 per cent from their previous contribution, and 31 countries have committed to their highest contribution ever, marking a record level of financing achieved for IFAD’s 2025-2027 programme of work.

“This is a clear sign of the confidence Member States have in IFAD, and the importance they place on our ability to deliver results and impact through targeted investments that transform agriculture, rural economies and food systems,” said Alvaro Lario, President of IFAD, following the pledging session in Paris. “They understand that investing in rural people and small-scale producers, who produce one third of the world’s food and up to 70 per cent of the food in low and middle-income countries, is the only path to a food secure future.”

IFAD launched its 13th replenishment in February 2023, calling for increased investments in small-scale farmers and rural people across developing countries. IFAD’s resources are replenished every three years by Member States. The consultation culminated in a pledging session in Paris. Fundraising will then continue during 2024. Typically, over 100 countries contribute to IFAD’s replenishments, making it the most widely supported of all the major IFI replenishments.

“I am humbled by the positive momentum from today’s session and confident that IFAD’s ambitious call to mobilize USD 2 billion in new funding to support a USD 10 billion programme of work and impacting over 100 million rural people will be achieved in the coming months,” said Lario.

IFAD’s Member States have demonstrated their record-breaking support and IFAD’s pivotal role in revitalizing the 2030 Agenda of Sustainable Development Goals through investing in rural people.

“We rely on IFAD to ensure the resilience we seek to build, taking into account climate change and all other factors that hinder our development,” said Carmen do Sacramento Neto, Minister of Fisheries and Marine Resources, Angola, at the opening of the session. “There has been an improvement in the living conditions of rural and fishing populations where the IFAD project [was implemented] and it has had a significant impact. We announce that Angola will maintain its contribution and increase it in the coming years as a clear sign of our commitment.”

“Developing countries don’t need external support, but agricultural and food independence. This is where IFAD must play a key role in reversing the trend. IFAD is a decisive player. It enables the development of the most vulnerable countries, and above all it supports what is at the heart of our ambition: structural transformations in agriculture,” said Bruno Le Maire, Minister of Economy, Finance and Industrial and Digital Sovereignty, France, at the high-level session. “You can count on our commitment, and you can count on our determination to make a lasting difference.”

“By stepping up for IFAD13, the global community has a priceless opportunity to turn the tide on poverty and hunger. Rural people are the best investment we can make in a sustainable future, and IFAD, no surprise, is best placed to make this happen,” said Sabrina Elba, IFAD Goodwill Ambassador addressing Member States at the pledging session.

Collaborating with Member States, IFAD invests in rural development and across food systems to help small-scale farmers produce more food and in greater variety, access markets, apply new technologies and adapt to climate change. IFAD ensures that Member State contributions reach those who need it the most, with 45 per cent in total concessional financing going to low-income countries and at least 30 per cent of core resources dedicated to fragile situations.

IFAD’s work achieves measurable impact. Between 2019 – 2021, IFAD’s investments improved the incomes of 77.4 million rural people, while 62 million rural people increased their production, and 64 million rural people improved their access to markets, enabling them to sell their production. In addition, IFAD helped 38 million people bolster their resilience, as measured by their ability to recover from climatic and non-climatic shocks, thanks to improved agricultural practices, access to technical assistance and credit, as well as the diversification of their income sources.

“Today, IFAD Member States have collectively sent a bold message to the world on the strategic importance to invest in rural populations, to ensure food security, to end rural poverty and to act on climate adaptation, building a more stable world for us all,” said President Lario.

IFAD’s unique ability to leverage contributions across the 100 countries it works in, turns every dollar of core contributions into up to six dollars of investment on the ground. Building on its AA+ credit rating, IFAD has been able to mobilize further funds through private borrowing and connecting with global capital markets, the first UN specialized agency to do so.

IFAD seeks to step up its engagement with the private sector. The Fund maintains its strong commitments related to gender equality and women’s empowerment, indigenous peoples, youth, and nutrition as the main axis guiding its work with the most disenfranchised and vulnerable people in rural areas, where 80 per cent of extreme poverty is concentrated.

Source: IFAD

HOW TO PROPERLY MANAGE ENERGY CONSUMPTION

17.12.2023

Andrey Metelev unsplash — Photo-illustration: Unsplash (Andrey Metelev)

The fifteenth consecutive international conference IEEE PES PowerTech Belgrade 2023, held in Belgrade in late June, gathered around 600 participants—academic lecturers, well-known researchers in the field of power engineering, managers, and leaders of research activities in corporations, professors and young people and students from close to 50 countries. This was the largest conference organized in the last 30 years by the Power & Energy Society, the power engineering section of the American Association of Electrical and Electronics Engineering (IEEE) outside the United States, in cooperation with local organizers, which this year took place in cooperation with the Faculty of Electrical Engineering in Belgrade. IEEE PES PowerTech is considered one of the most important global meetings in Europe’s energy segment. IEEE PES PowerTech Belgrade 2023 is the largest and most significant international power engineering conference ever held in the territory of the former Yugoslavia. The main topics of the conference included power supply security, changes in the power system caused by the increased connection of renewable energy sources (RES) to power grids, the need to boost the system’s resistance to major climate changes, the transition to a power system that will not emit harmful greenhouse gases, the integration of electric cars and the management of energy consumption, that is, how to get small and large consumers to plan their consumption with the view of reducing energy use. Over 400 scientific and professional papers were presented at the conference. In an interview for our magazine, Professor Jovica Milanović, Dean of the Department of Electrical Engineering and Electronics at the University of Manchester in Great Britain, foreign member of the Serbian Academy of Engineering Sciences and honorary co-chairman of the conference, pointed out that the greatest benefit of the meeting in Belgrade for our country was that Europe and the world could see that Belgrade is still mindful of power engineering and that the results accomplished by our teachers, researchers, engineers and students in this field deserve in every way the greater involvement of our universities and research institutions in international research and projects funded by EU and other international organizations.

IN FOCUS:

Q. How would you rate the conference?

A. This kind of conference has never been held on the ex-Yugoslavia territory, neither in size nor importance. It is one of the most important professional meetings in the field of energy in the world, which is not industrially oriented. My foreign colleagues and I were surprised by the quality of the participants. PES has around 40,000 members worldwide. The highest global professional recognition in electrical engineering and electronics is to be a Fellow IEEE, roughly translated as a regular member of the IEEE. Fellow IEEE comprise 0.1 per cent of the total number of IEEE members. At this conference, out of the total number of participants (about 600), there were more than 26 researchers with the Fellow IEEE title, which is more than four per cent, that is, 40 times more top experts compared to the number of conference participants, than there are in the entire association. It is an unusually large number of experts gathered in one place.

Q. How can consumers adjust their energy consumption?

A. If we could reduce the consumption of electricity and reach an agreement with the consumers that they should not turn on the devices at the same time during the day but that different groups of consumers do so at different times during the day and night, then there would be no need, to put it simply, for all fossil fuel power plants work at the same time, which, in turn, would reduce the emission of harmful gases. Great research is being done in the world and our country on optimally coordinating and motivating consumers to help reduce greenhouse gas emissions by adjusting their consumption to periods of the day when there are the best conditions for energy to be produced from renewable sources. If during the day, for example, the sun is shining, or the wind is blowing and have a lot of solar power plants and wind power plants, the produced electricity does not contribute to environmental pollution, and if at that moment, people turn on their electrical devices to use the produced energy, this energy will not be dispersed. But, if we don’t have such power plants, but rather fossil fuel ones, which pollute the environment much more, reducing consumption would require less electricity production and thus a reduction in the emission of harmful greenhouse gases from these power plants.

Q. What to do with energy when there is no consumption?

A. In addition to producing energy from the sun and wind, at the confe rence, we also discussed what to do with energy if there is no consumption. If we generate electricity using solar plants or wind farms when there is enough sun and wind and all consumers turn on electrical appliances when this energy is available, it will be largely consumed. The rest of the available energy will be lost if we cannot store it. To prevent this from happening, we need to build and optimally distribute a sufficient number of energy storages (accumulation sources), i.e. batteries and/or storage lakes for hydroelectric power plants, so that on the one hand, these energy storages can be filled when there is an excess of energy produced by RES and that this stored energy, on the other hand, could be used instead of the one produced from conventional power plants that pollute the environment more, when there is no production of energy from RES. The coordination of production and consumption was one of the main topics of discussion related to the management of consumption and energy storage. The other topic was how to make batteries efficient and large enough and where to place them so that this renewable energy is stored and then returned to the system when there is enough of it.

Interviewed by: Mirjana Vujadinović Tomevski

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

ABB and Gravitricity to collaborate on energy storage systems using end-of-life mine shafts and hoist technology

16.12.2023

ABB_provides_complete_mine_hoist_systems_to_customers_worldwide._Image_ABB — Photo: ABB

ABB has signed an agreement with UK-based gravity energy storage firm Gravitricity to explore how hoist expertise and technologies can accelerate the development and implementation of gravity energy storage systems in former mines.

Gravitricity has developed GraviStore, an innovative gravity energy storage system that raises and lowers heavy weights in underground shafts – to offer some of the best characteristics of lithium-ion batteries and pumped hydro storage. Future GraviStores will store more than 20MWh, providing long-duration storage and rapid power delivery to network-constrained users and operators, distribution networks and major power users.

Unlike batteries, the Gravitricity system can operate for decades without any reduction in performance. Gravitricity has already proven the system with a scale demonstrator and is exploring the potential to deploy their groundbreaking technology in decommissioned mines worldwide.

As a market leader for mine hoists with a large installed base of more than 1,000 hoist solutions worldwide, ABB will collaborate by providing research and development, product development and engineering teams specializing in the design, engineering and operations of mine hoists and mechanical, electrical and control technologies for hoisting.

“As the world generates more electricity from intermittent renewable energy sources, there is a growing need for technologies which can capture and store energy during periods of low demand and release it rapidly when required,” said Martin Wright, Gravitricity’s co-founder and Executive Chairman. “Our GraviStore underground gravity energy storage uses the force of gravity to offer some of the best characteristics of lithium-ion batteries and pumped hydro storage – at low cost, and without the need for any rare earth metals.

“We are already seeing significant interest from mine operators in Europe, India and Australia and this partnership with ABB – with decades of electrification and mine hoist system expertise – will help us accelerate our ambitious commercialization plans. I am delighted we are working in tandem.”

The Memorandum of Understanding (MoU) agreement is an important step in ABB’s ambition to further develop its lifecycle service business by collaborating with companies providing adjacent and value-adding technologies.

“ABB has 130 years of history with mine hoists, since we first electrified one in Sweden in the 1890s, but this collaboration with Gravitricity shows how we can continue to diversify and adapt our technologies,” said Charles Bennett, Global Service Manager, Business Line Hoisting, ABB Process Industries. “We are eager to progress with our collaboration and explore the possibilities as we become part of the next generation of renewable energy storage systems and make use of mine shafts that are no longer in service.”

Gravitricity will bring specialist expertise in grid compliance and control systems and the teams will work together on feasibility studies to understand the application of existing hoisting technology in gravity energy stores. ABB will also offer mining industry consultation and work to identify suitable sites and shafts for the deployment of GraviStore.

The decommissioning of mine shafts is a costly and time-consuming process for mining companies. By repurposing disused mine shafts for energy storage, mine shafts can fill a productive function for up to 50 years beyond their original lifetime, and can mitigate decommissioning costs, while simultaneously creating new job opportunities and contributing to the green energy transition.

ABB is a leader in developing world-class hoisting solutions. As a supplier of complete mine hoist systems, customers can benefit from low lifecycle cost, high reliability and system availability, short project execution time, and a single source of supply for complete systems, including service and spare parts.

Source: ABB

Global coal demand expected to decline in coming years

15.12.2023

ugalj - coal — Foto-ilustracija: Unsplash (Bence Balla-Schottner)

Foto-ilustracija: Unsplash (Dominik Vanyi)

After reaching an all-time high this year, global coal demand is expected to decline to 2026, according to the latest edition of the International Energy Agency’s (IEA) annual coal market report – the first time that the report has predicted a drop in global coal consumption over its forecast period.

Coal 2023 sees global demand for coal rising by 1.4 percent in 2023, surpassing 8.5 billion tonnes for the first time. The global increase masks stark differences among regions. Consumption is on course to decline sharply in most advanced economies in 2023, including record drops in the European Union and United States of around 20 percent each. Demand in emerging and developing economies, meanwhile, remains very strong, increasing by 8 percent in India and by 5 percent in China in 2023 due to rising demand for electricity and weak hydropower output.

However, the report expects global coal demand to fall by 2.3 percent by 2026 compared with 2023 levels, even in the absence of governments announcing and implementing stronger clean energy and climate policies. This decline is set to be driven by the major expansion of renewable energy capacity coming online in the three years to 2026.

More than half of this global renewable capacity expansion is set to occur in China, which currently accounts for over half of the world’s demand for coal. As a result, Chinese coal demand is expected to fall in 2024 and plateau through 2026. That said, the outlook for coal in China will be significantly affected in the coming years by the pace of clean energy deployment, weather conditions, and structural shifts in the Chinese economy.

The projected decline in global demand for coal – which is currently the largest energy source for electricity generation, steelmaking and cement production, but also the largest source of carbon dioxide (CO2) emissions from human activity – could mark a historic turning point. However, global consumption is forecast to remain well over 8 billion tonnes through 2026, according to the market report. To drive down emissions at a rate consistent with the goals of the Paris Agreement, the use of unabated coal would need to fall significantly faster.

‘’We have seen declines in global coal demand a few times, but they were brief and caused by extraordinary events such as the collapse of the Soviet Union or the Covid-19 crisis. This time appears different, as the decline is more structural, driven by the formidable and sustained expansion of clean energy technologies,” said Keisuke Sadamori, IEA Director of Energy Markets and Security. “A turning point for coal is clearly on the horizon – though the pace at which renewables expand in key Asian economies will dictate what happens next, and much greater efforts are needed to meet international climate targets.”

The report finds that the shift in coal demand and production to Asia is accelerating. This year, China, India and Southeast Asia are set to account for three-quarters of global consumption, up from only about one-quarter in 1990. Consumption in Southeast Asia is expected to exceed for the first time that of the United States and that of the European Union in 2023. Through 2026, India and Southeast Asia are the only regions where coal consumption is poised to grow significantly. In advanced economies, the expansion of renewables amid weak electricity demand growth is set to continue driving the structural decline of coal consumption.

Meanwhile, China, India and Indonesia – the three largest coal producers globally – are expected to break output records in 2023, pushing global production to a new high in 2023. These three countries now account for more than 70 percent of the world’s coal production.

Global coal trade is expected to contract as demand declines in the years ahead. However, trade will reach a new high in 2023, driven by strong growth in Asia. Chinese imports are on track to reach 450 million tonnes, which is more than 100 million tonnes above the previous global record set by the country in 2013, while Indonesia’s exports in 2023 will be close to 500 million tonnes – also a global record.

Source: IEA

CHARGE&GO CONTINUES TO BUILD A NETWORK OF CHARGER

13.12.2023

Driving an electric car is becoming an increasingly popular choice, especially among people living in cities. However, electric vehicles require a good network of chargers for longer journeys so drivers can prepare and organize their journeys in advance. If there is a widespread charging infrastructure strategically located along highways and in cities—EV drivers will have less trouble.

In Serbia, a country that is increasingly following the development of green technology and renewable energy sources, there was a growth in tourism at the beginning of the summer. According to the latest data from the Statistical Office of the Republic of Serbia, in June, there was an increase in the number of tourists by 4.7 per cent compared to the same month of the previous year. Also, in the first five months of the current year, 1.4 million foreigners visited the country, representing an increase of 16.5 per cent compared to the same period in 2022. There is certainly a certain number of e-car drivers among the tourists, further emphasizing the need to develop good infrastructure. They need to be instilled with enough confidence that they can easily fill up their vehicles in any part of Serbia. Therefore, we see the indirect importance that a good network of chargers can have in areas that we might not initially think of, such as, in this case, tourism.

IN FOCUS:

The company Charge&GO, dedicated to the vision of sustainable transport, continues to expand its network of chargers. A 240 kW electric charger is installed at the OMV—Metro filling station in Zemun. This charger, which was produced by Siemens, will be able to connect two electric vehicles that need fast charging simultaneously because it has two CCS sockets. If a certain premium model of an electric car, such as the Porsche Taycan, is connected to the charger of this power, charging at full power, within half an hour to an hour, the car will have a range of over 800 kilometers, which is an extraordinary calculation.

The infrastructure is already in place, the charger is ready to use and will be online in a few days.

Charge&GO continuously works on its mission, and among the last projects was the installation of chargers at the OMV filling station in Borska Street in Banjica. Its power is 120 kW, and it is also a Siemens model with two CCS connections. On the other hand, the company is waiting for the EPS’s approval to put the installed ABB charger into operation, with a power of 50 kW, within the OMV filling station on Ada Ciganlija. In this case, it will be possible to charge vehicles with European and Japanese connectors quickly. Apart from the chargers located on the territory of Belgrade, a 120 kW charger, a model produced by Siemens and which will soon be put into operation, is installed at the OMV filling station in Zaječar.

With the help of the first digital platform, finding available chargers and organizing trips certainly become simpler. Charge&GO enabled drivers to make a payment in one place, in addition to viewing the charger map. Users also have electric chargers available across the continent, given the partner network they are part of. After registration with the application, certain benefits can be obtained.

With electric cars and the infrastructure being developed by the company, drivers could reduce their expenses without sacrificing vehicle performance. Electromobility is an important topic for ecology, tourism, and traffic, as well as for individuals and countries. Expanding the network is an opportunity to participate in creating a world where roads are not only a means of connecting places but also the people, ideas and values that shape our future. Charge&GO can be proud of its contribution to this dynamic time of change and everything it does to make traveling by electric vehicles economical and tireless.

Prepared by: Milica Vučković

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

An energy-efficient home for a three-generation family in Serbia

12.12.2023

windpark_vetropark — Foto-ilustracija: Pixabay

Photo-illustration: Unsplash (Michael Fortsch)

From a conventional Serbian dwelling to a model of modern energy efficiency – the Đukanović family from Serbia have transformed their home by reducing their energy consumption and taming their growing energy costs.

Thanks to an investment in energy-efficient technologies through the European Bank for Reconstruct and Development’s (EBRD) Green Economy Financing Facility (GEFF), they will enjoy a more comfortable and affordable home. At the same time, they will reduce their carbon footprint, which is at its highest in winter.

Miloš Đukanović shares his family home in Belgrade with his wife, children and parents. Last year, the family embarked on a journey to modernise their house and improve its energy efficiency. The 250 m2 house previously relied on a wood burner and, later, a pellet stove for heating. However, the need to enhance the family’s comfort during Serbia’s chilly winters and to find sustainable energy solutions prompted the Đukanovićs to switch to innovative green technologies.

Milos secured a loan totalling 31,000 euros from ProCredit Bank, one of the GEFF partner banks in Serbia, which on-lends funds to residential borrowers for investments in residential energy efficiency and renewable energy solutions.

The family invested in a heat pump, a photovoltaic system, energy-efficient windows and underfloor heating.

Although such home improvements can reduce energy use and long-term costs significantly, the initial financial outlay can be high. To help homeowners invest in green solutions, GEFF provides technical assistance and grants, supported by its donors.

Upon successful completion of the investment, the Đukanovićs received a grant incentive of 5,800 euros, funded by the European Union (EU).

It was not a quick journey, but definitely a worthwhile one. It took them a year to complete all the work, during which time their home underwent a remarkable transformation.

The expected benefits include a substantial reduction in energy consumption and a corresponding decrease in CO2 emissions of 3.6 tonnes per year. These reductions, coupled with significant savings on energy costs, mean the family will be able to recoup their investment within seven years.

“With the electricity sourced from the photovoltaic system, I anticipate a 50 per cent reduction in our non-heating electricity consumption,” Miloš says. “In addition, the new heating system promises further savings this winter. It means enhanced comfort and, above all, substantial financial relief. The decision to embrace green technologies has not only transformed our home, but also our quality of life.”

Beyond the financial aspects, the shift to green technologies has brought myriad advantages. Not only does the family enjoy a cosier home environment, but their reduced heating expenses have freed up additional funds. Furthermore, the market value of their property has surged, rendering their residence more appealing to prospective buyers or tenants.

The EBRD GEFF in the Western Balkans is co-funded by the EU through the Western Balkans Investment Framework, Austria, Japan and Switzerland through the High-Impact Partnership on Climate Action (HIPCA).

The HIPCA, launched by the EBRD and partner governments at the Glasgow COP26 climate conference in 2021, is supported by Austria, Canada, Finland, South Korea, the Netherlands, Switzerland, Spain, the Taiwan International Cooperation and Development Fund (TaiwanICDF) and the United Kingdom.

Source: EBRD

HOW TO DEVELOP ELECTROMOBILITY FASTER

10.12.2023

michael-fortsch-joiwHqPUv-o-unsplash — Photo-illustration: Unsplash (michael-fortsch)

Photo: : Courtesy of Vladimir Momčilović

Numerous factors influence the importance and representation of electric vehicles at the local and state level. In the first place, global trends are important, or let’s colloquially call it fashion. This has been dominant in the past, for instance, in the development strategies of smart technological solutions, i.e. smart mobile phones. Thus, due to a wrong assessment and a strategic decision not to implement touch screens, the Finnish Nokia, once the world’s leading mobile phone manufacturer, disappeared from the global market. But fashion is dominant even today in the sustainable short-range urban individual mobility segment, the so-called micro-mobility. No one could have guessed that electric scooters would flood cities worldwide in the number they have, except perhaps their manufacturers.

The reason for this growth is primarily due to their affordable price. However, the possibility of their unhindered use in cities was also affected by affirmative measures to increase the accessibility of city facilities, primarily intended for citizens with reduced mobility (disabled, elderly, mothers with prams), considering that these are transport means which with their 50 plus kilograms are not at all easy to carry in the hands upstairs and the like.

On the other hand, we have the measures of the so-called traffic calming through the redistribution of street space from passenger cars to different modes of movement, reducing their speed and relegating their dominant role in local environments to increase the safety of children, pedestrians, cyclists, and other vulnerable categories of road users in cities.

At the time of their expansion, the unpreparedness of all relevant state administration bodies and local governments in cities worldwide was evident because the regulations and rules necessary for their safe use were not in place. Evidence that this development has surprised state administration and local government bodies worldwide comes from the heterogeneity in their approach to solving this pressing problem. While some completely prohibit their use, others wander around looking for ways to integrate them with other forms of movement in cities safely. Therefore, to increase the representation and more significant role of electric vehicles, they must become modern transport means of the future in users’ minds, as opposed to outdated conventional passenger cars.

As an excellent example from the previous successful practices in cities and countries that have advanced far in the use of electric vehicles, below are recommendations on how to be successful in implementing this relatively new environmental concept, for which several key factors are crucial, plus the challenges and various obstacles that are still not overcome.

IN FOCUS:

Factors, challenges and obstacles

Photo-illustration: Unsplash (kumpan-electric)

The first factor is the clear and unequivocal determination of state administration and local governments for electric, i.e. environmentally friendly and sustainable operation of means of transport in road and city traffic. For example, when purchasing new buses for public city and suburban transport or new vehicles for rubbish collection, the decisive (dominant) criteria should be the environmental one (quieter operation and so-called zero emissions) instead of the economic one (lower price). It is manifested through continuously transparently applying green or environmentally friendly procurement criteria for all utility vehicles. In this case, the priority must be the general public interest and the well-being of the population, i.e. the purchase of exclusively electric and/or other fully environmentally friendly vehicles as opposed to the purchase of a larger number of cheaper, environmentally unacceptable vehicles. Public procurement of all government vehicles, especially utility vehicles, must be green.

Visibility is another factor. All electric vehicles should be clearly marked with the message that the state and local government bodies care for the population’s health and quality of life. It is not only marketing but also the promotion of this determination, which in the long run, raises the population’s awareness about the importance of purchasing exclusively environmentally friendly vehicles (for their individual use). When the population’s awareness matures, every individual will be ashamed to irresponsibly buy a passenger vehicle that is not environmentally friendly and powered by conventional fossil fuels, which, although cheaper, are still dangerous to health and harmful to the environment. Therefore, if something is demanded from the population, at least as much must be given to them.

The third indispensable success factor is comprehensive support. There are two segments here – the first is affordable and sufficiently widespread top-quality infrastructure for the electricity supply, i.e. chargers for electric vehicles and the other is state subsidies for the purchase of environmentally friendly vehicles.

Photo-illustration: Unsplash (andrew-roberts)

Serbia promptly started the installation of public charging stations on its motorways as part of its commitment and strategic determination on the road to EU membership. However, motorway support is not enough. An extensive network of fast and semi-fast chargers with sufficient power, to begin with, must be established near tourist destinations, cultural & historical sites, and sports & recreational facilities until it is so widespread that it is available in every populated place with a certain number of inhabitants.

A measure stipulating one charging place for every 10,000 inhabitants could be adopted. This would mean that to start with, Serbia will have to have 600 semi-fast and fast chargers in public parking lots in attractive locations. Support can also come from the private sector, especially since this is a commercial activity, where competition and the creation of the infrastructure for the electricity supply with a higher capacity, shorter charging time and the like must be ensured. In addition, the management of the charger system and efficient charging for the energy used.

There is an ongoing problem both here and abroad with the capacity of the power system for a complete transition to electric drive vehicles, but also with the imperative of obtaining environmentally clean electricity from renewable sources, which is an issue that many countries have been actively dealing with for the past few years. There are also a certain number of current problems in our system, such as the impossibility of billing for consumed electricity (which, according to the regulation, can only be done by a person authorized to distribute electricity), which forces current providers to charge for this service in line with the duration of the charger’s use, i.e. parking, using applications that only support payment cards of Serbian banks which prevents foreign users from using the charger, billing via a mobile phone operator which requires that you have the Serbian phone number and others.

To avoid demotivation, electric vehicle users should be given the most flexible and universal payment method, analogous to the current functioning of fuel supply stations. However, this part will certainly develop spontaneously under the developing market demand and improve at the request of users, so it is still not realistic to expect that to happen until there is a greater share of electric vehicles in the overall number of vehicles in Serbia.

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

Financial headwinds for renewables investors: What’s the way forward?

08.12.2023

fossil fuels foto unsplash — Foto: Unsplash

Foto-ilustracija: Unsplash (
Chris LeBoutillier)

The impressive growth in clean energy investments in recent years has been led by renewable power. Annual spending on solar PV and wind projects has risen by more than USD 300 billion in the last five years, and now accounts for one-third of the total USD 1.8 trillion that we expect to go to clean energy investments in 2023. Deployment has been driven by a virtuous circle of policy support and cost reductions. The global energy crisis, coupled with acute concern over emissions and competition among countries for positions in the clean energy economy, has redoubled policy momentum in recent years.

Through the 2010s, renewable investors and governments designing policies became used to two supportive trends: relatively cheap capital in an era of low interest rates, and steadily falling costs. However, this context changed as the world emerged from the Covid-19 pandemic into the global energy crisis.

An environment of higher interest rates (outside China) means financing becomes more expensive, with multiple effects for renewables. Projects become harder to finance; companies’ profitability is affected as they need to increase their reliance on more expensive equity; and very leveraged companies have a higher risk of default. Clean energy investments are more vulnerable to a rise in borrowing costs than other types of energy investments, as they typically involve relatively high upfront costs that are compensated over time by much lower operating expenses.

High borrowing costs exacerbate challenges facing renewable project developers in many emerging and developing economies, where the cost of capital is already two or three times higher than in advanced economies and China. According to the latest survey data from the IEA’s Cost of Capital Observatory, nine out of ten respondents expect increases in the cost of capital in emerging and developing economies in 2023.

In addition, the extended run of cost declines for key clean energy technologies has been interrupted by volatile commodity prices and supply chain constraints. The IEA’s Clean Energy Equipment Price Index tracks prices for a basket of solar PV modules, wind turbines and lithium-ion batteries. There was a noticeable uptick in prices that started towards the end of 2020 and which remains visible for many clean technologies with the exception of solar PV.

The renewable power industry as a whole has demonstrated considerable resilience over the last few years. But the change in broader market conditions has brought signs of strain, especially in the wind sector.

Project commitments and economics have been upset by higher financing costs and higher input costs for key raw materials, including critical minerals, meaning that these projects have become difficult or impossible to deliver as planned. This has led wind developers to request price negotiations to accommodate higher costs, and in some cases to project delays and cancellations. It has also sapped willingness to bid in new auctions where the price expectations are not aligned with today’s costs. As reported in the latest Renewable Energy Market Update, auctions have been left undersubscribed as a result, especially in Europe. In 2022, unallocated capacity globally reached its highest-ever level with only around 85 percent of capacity awarded – compared with 90-95 percent in 2020 and 2021. Europe accounted for 14 out of the total 20 GW auctioned capacities that were left unallocated globally. This trend continued in 2023; a striking example came in the UK when an offshore wind auction was left with no bids.

This uncertainty is having cascading implications for supply chains, with wind manufacturing facilities operating at well under full capacity. Many manufacturers of wind turbines in the sector in Europe and the United States have posted negative net margins for seven consecutive quarters over the last two years.

The offshore wind sector has been particularly affected, with 12 GW of offshore wind capacity facing delays or cancellation in the UK and US alone. As a result, Ørsted wrote off USD 4 billion against US offshore wind projects. BP and Equinor also wrote off USD 800 million, and Iberdrola cancelled an 800 MW project in the US due to financial complications.

The solar PV industry has also been exposed to cost and financing pressures, but from a slightly different direction. Higher borrowing costs have been a concern for developers, but the main issue has been the emergence of a large excess in manufacturing capacity that is reducing the profitability of players throughout solar PV supply chains. As described in detail in the Special Report on Solar PV Global Supply Chains, the solar industry is dominated by large integrated Chinese companies and manufacturing capacity in China and elsewhere has been running ahead of deployment.

Foto-ilustracija: Unsplash
(Marcin Jozwiak)

The resulting fierce competition for market share has reduced the profits of vertically integrated manufacturers while non-integrated firms are struggling to attain profitability altogether. Smaller manufacturers are faced with extremely challenging conditions, as prices for solar PV modules reached record lows despite rising levels of demand.

Some of the challenges facing the wind and solar industries are primarily cyclical or temporary in nature. Cost pressures along supply chains are starting to ease: prices for key clean energy technologies have either levelled off or resumed their downward trajectory. Some issues facing projects have been attributable to delays in policy implementation, for example with aspects of the EU Green Deal or in finalising detailed tax credit guidance in the case of the US Inflation Reduction Act.

But the recent difficulties facing renewable projects also highlight some broader structural issues that policymakers need to address. Four issues stand out:

Inflexible tender designs: the trend in recent years in tenders was that renewables were able to offer increasingly lower prices in a low cost, low interest rate environment. This set expectations among governments that auction prices would only ever head downwards. Procurement and contracting terms were not flexible enough to accommodate changing macroeconomic conditions or cost pressures.
Long waiting times for permitting and connection: financial pressures have been compounded by long lead times required to connect to the grids and gain necessary permits. As the recent IEA report on Electricity Grids and Secure Energy Transitions makes clear, at least 3 000 GW of renewable power projects, of which 1 500 GW are in advanced stages, are awaiting grid connection. This is to equivalent to five times the solar PV and wind capacity added in 2022. In some countries, early-stage project contracts are awarded prior to securing permits and connection, which complicates final generation cost estimates for power producers.

Source: IEA

THE FUTURE GUIDED BY INNOVATIONS

06.12.2023

The engine of the future will be powered by electricity, and the future starts here and now. Led by innovation, the BMW strives to shape a tomorrow that will offer new opportunities for a greener and more sustainable society. That’s why the BMW’s vision is evolving along with the changes of the new era, which focuses on electric cars.

The BMW Group aims to be completely CO2 neutral by 2050 at the latest, and sustainability will be the basic postulate that shapes the business of one of the largest car manufacturers in the world, while respecting the highest standards in the field of electric mobility.

For all those who resolutely keep up with the upcoming changes, BMW Serbia has prepared special promotional benefits with the purchase of electric cars in the next period.

Thus, with every purchased electric vehicle, you get a BMW Wallbox charger, a four-year warranty (valid for up to 200,000 kilometers), as well as four years of regular service.

After almost five decades of research and development on the topic of sustainable and environmentally friendly mobility, BMW Serbia offers electric models with innovative technology, modern and attractive design.

Impressive ranges make driving the BMW electric cars more flexible and practical, but also more attractive than ever before.

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That’s why we present six attractive BMW electric models that are available within our special promotional offer from BMW Serbia: BMW iX, BMW iX1, BMW iX3, BMW i4, BMW i5 and BMW i7.

BMW IX

It is an attractive SAV model was created for electric mobility. Thanks to efficient BMW eDrive technology and fully electric four-wheel drive, the BMW iX achieves the range of 403 km to 633 km according to the WLTP standard (depending on the version and equipment of the model) and delivers impressive acceleration. The intelligent BMW Operating System 8 is used intuitively, and it made its debut on this particular model. With two powerful electric motors and BMW xDrive electric four-wheel drive, the BMW iX offers outstanding performance and unique driving experience.

BMW IX1

The all-electric BMW iX1 exudes energy and functionality, as well as the ability to inspire the driver to explore new roads. The self-confident appearance of this model leaves a breathtaking impression, thanks to the modern design language and perfect proportions. Superior comfort in the interior is achieved thanks to the active seats with massage and lumbar function for sitting comfort. The modern multimedia cabin is created thanks to the innovative BMW curved touch-sensitive display and voice control concept. Its range is from 417 km to 439 km according to the WLTP standard (depending on the equipment of the model).

BMW IX3

The BMW iX3 model is characterized by attractive, sporty appearance, while the aerodynamic and blue elements emphasize the electric nature of this vehicle in full. With the range of 453 km to 461 km according to the WLTP standard (depending on the equipment of the model) with efficient consumption, this model is ideally adapted to any route. The BMW iX3 features state-of-the-art technologies that combine emission-free mobility with supreme comfort. Intelligent driver assistance systems can be easily controlled by voice command, which increases safety during the journey. More dynamic, efficient and innovative than ever, the BMW iX3 features the fifth generation of BMW eDrive technology. This attractive SAV offers top performance that will impress you every meter you drive.

BMW

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

Enhancing infrastructure can help boost Denmark’s clean energy investment

05.12.2023

photovoltaic-system-solarni-paneli — Foto-ilustracija: Pixabay

Denmark’s energy and climate ambition in sectors such offshore wind, biomethane and district heating are transforming the country’s energy system and reinforcing its image as a clean energy leader toward net zero emissions by 2050, according to a new in-depth policy review by the IEA.

In 2022, Denmark enjoyed the highest share of wind electricity (54 percent) in the IEA, which together with bioenergy and solar photovoltaics (PV) account for around 80 percent of the power mix. In the same year, almost 40 percent of Denmark’s gas consumption came from biomethane.

While great strides have been made in the energy sector, achieving Denmark’s goal of a 70 percent reduction in greenhouse gas (GHG) emissions by 2030 will require even greater efforts. By the end of the decade, Denmark must achieve in seven years what it managed over the past 30 years in terms of emissions reductions.

According to the new IEA energy policy review, additional measures will be needed most notably in the transport and buildings sectors. The completion of the green tax reform is critical, but should be accompanied by a broad transport decarbonisation strategy and a new vision for energy efficiency, focused on digitalisation, smart cities and buildings. The report offers a detailed evaluation of Denmark’s energy transition in each sector.

Denmark continues to demonstrate great leadership and innovation in the clean energy economy. As the birthplace of the modern offshore wind industry, it is now using that foundation to build an energy system for the future that will offer opportunities for its citizens and businesses on both the domestic and global stage,” said IEA Executive Director Fatih Birol. “At a time of uncertainty for energy markets, the IEA is committed to working with Denmark to achieve its energy transition and security goals.”

The global energy crisis sparked by Russia’s invasion of Ukraine brought Denmark’s reliance on energy imports into sharp focus, highlighting the need for security of supply, energy diversification and an acceleration of fossil fuel phase out. In 2022, the government proposed to bring forward its climate neutrality target to 2045 and aim for a 110 percent emissions reduction goal by 2050. This increased ambition will require solutions that enable negative emissions in addition to clean energy technologies.

Denmark already has ambitious renewable energy deployment targets. Notably, in the heating sector with an aim to fully replace fossil fuels with biomethane by 2030. There are also plans to increase offshore wind capacity almost eightfold as well as quadrupling onshore wind and solar PV by the same year. Under its Power-to-X (PtX) Strategy of 2021, Denmark is targeting up to 6 GW of hydrogen electrolysis capacity by 2030.

While Denmark has led the way on streamlined permitting for offshore wind, no fast-track process exists for onshore. As such, the IEA report recommends the government review best practices for fast tracking permitting, including a one-stop shop for onshore wind developers with a focus on digitalisation and auction designs to spur further cost reduction.

The report finds that Denmark is well placed to advance the decarbonisation of its economy thanks to regional integration. The North Sea region is a hub for shipping, aviation and industrial clusters and a future centre of demand for low-emissions hydrogen, e-fuels as well as carbon capture utilisation and storage (CCUS). Within only three years, Denmark has created framework conditions and rules for CCUS, completed its first tender and allocated the first CO2 storage licence in addition to agreeing regional hydrogen pipelines. The PtX taskforce is supporting the roll-out of Denmark’s hydrogen and low-emission fuels strategy with more than 30 PtX projects and actions underway.

The Danish government has an important role to play in mitigating supply chain risks, supporting bilateral agreements and the development of rules at the European Union (EU) level. These include the Carbon Border Adjustment Mechanism, rules on the certification of hydrogen and negative emissions, and a framework for CO2 transportation and storage. The IEA report also recommends preparing a green infrastructure master plan at the regional level, as Denmark assumes the Presidency of the North Sea Energy Cooperation in 2024. Such a plan would help to lower cost and de-risk investment. This includes power grids, CO2 and hydrogen networks.

Source: IEA

Holding the oil and gas sector accountable to methane promises

04.12.2023

emisije , zagađenje — Photo-illustration: Freepik (frimufilms)

Much of the world has felt the sting of climate change this year although, as ever, the poor and vulnerable have suffered the most.

This climate chaos has arrived at estimated global average temperatures of 1.4°C above pre-industrial levels. According to UNEP’s Emissions Gap Report, we are heading for 2.5 to 2.9°C this century. At those temperatures, the sting will become debilitating and deadly for many more people and economies.

We must deliver low-carbon development transformations that slash greenhouse gas emissions, ideally by 28-42 per cent by 2030 to stay on track for 2°C and 1.5°C respectively. Deep reductions in methane emissions are an important part of this transformation. Cuts to this powerful climate-warming gas are relatively cheap, fast and easy to deliver. Such cuts will buy time for decarbonization efforts in developing countries and bring other benefits, such as reducing deadly air pollution and avoiding crop losses.

So, it is welcome to see the oil and gas sector promising action through the Oil and Gas Decarbonization Charter.

However, transparency is going to be critical because trust is low. Sure, companies are saying the right things. Yet the coal, oil and gas production planned for 2030 is more than double the levels consistent with 1.5°C. It would require serious mental gymnastics for oil and gas companies to convince themselves they are doing all they can for the climate.

UNEP is working with the industry to ensure accountability. The Oil and Gas Methane Partnership 2.0, part of UNEP’s International Methane Emissions Observatory, is emerging as the global Monitoring, Reporting and Verification system on methane in the oil and gas sector. The UNEP Methane Alert and Response System detects methane emissions and notifies governments and operators so they can plug the leaks quickly. My thanks to the Bloomberg Philanthropies for providing new funding to these initiatives.

Now we need the oil and gas sector to make stronger promises, live up to them, and accompany action on methane with deep decarbonization of the energy system. This is how the sector can earn the world’s trust and adopt new business models that will allow them to remain profitable during and after the inevitable low-carbon transition.

Source: UNEP

NOVI SAD STEPS INTO THE WORLD OF ELECTROMOBILITY

03.12.2023

Regarding recent investments in innovation and infrastructure, Novi Sad was one of the most engaged cities in the country. The flat terrain that the city rests on has been successfully used for the development and expansion of bicycle paths, and recently, the city held a competition for the distribution of subsidies for cyclists, thanks to which there will be fewer traffic jams, plus boosts what is the healthiest and cleanest transport for people and the environment. Recently, a so-called turbo roundabout was commissioned, whereby drivers choose their direction before entering the roundabout, which should further expedite the traffic at that section. Apart from these innovations in infrastructure and traffic, starting this summer, ten new electric buses are now cruising the city, all part of the fleet owned by the Novi Sad Public City Transport Company (JGSP Novi Sad). We spoke with Apolonija Holo, Head of the Investment Maintenance Department at JGSP Novi Sad, about new buses, the company’s plans and the advantages of electric vehicles.

Q. When and how did the idea to include electric buses in public city transport develop? Have these buses replaced the oldest models that have served their time on the roads?

A. Our company’s engineers closely follow the development of the bus industry and new technologies and analyze the current market, so every new addition to the JGSP Novi Sad’s fleet follows technological achievements that ensure a higher level of safety, affordability, comfort and environmental protection. In recent years, our fleet received a hundred new CNG-powered buses, which will be discussed later. This decision is a substantial step forward.

Investing is part of Novi Sad’s larger involvement in the European Bank for Reconstruction and Development (EBRD) programme—Green Cities— which provides support to cities that want to invest in green and sustainable infrastructure, thereby solving key environmental challenges. With its Green Cities programme, the EBRD had already helped Novi Sad’s public transport to have 29 new buses as part of the ongoing fleet renewal program, when 100 new CNG-powered vehicles were purchased. This type of bus significantly reduces emissions of polluting gases, and they were purchased in 2020 and 2021.

The Novi Sad government signed a document with the European Bank for Reconstruction and Development (EBRD) in June 2020, stipulating its intentions and ambitions for purchasing electric buses. A year later, after being granted a loan with favourable terms and conditions, the procurement ensued.

The company strives to continuously renew its vehicle fleet so that a certain number of old buses are written off by purchasing new vehicles as needed.

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Q. Could you tell us more about the performance of these buses? Which exact models did you buy, and which countries did you import them from?

A. After the public procurement was completed, we decided to go for Solaris from Poland, a company whose buses are used for public transport throughout Europe. Solaris has been repeatedly awarded for quality and innovation in Poland, as well as in other countries. At the same time, Solaris Urbino 12 electric buses, which are now part of the JGSP Novi Sad fleet, won the prestigious 2017 European Bus of the Year award.

These are low-floor, twelve-meter-long buses that can take up to 80 passengers plus the driver. In addition to the equipment that is generally standard in our vehicles (built-in air conditioning, platform for disabled passengers, cameras and video surveillance), the new buses have modern Mirror Eye mirrors. It is a set of cameras that replace conventional mirrors and show the driver the area immediately around the bus, significantly increasing traffic safety. Furthermore, they are equipped with Mobileye Shield+, a solution designed to avoid traffic accidents making driving safer. Thanks to this system that notifies the driver with sound and visual signals where pedestrians and cyclists are and how far the bus is from nearby vehicles, the problem of blind spots is solved. The buses also have a fire extinguishing system and an alcohol testing device—the vehicle’s immobilizer.

Q. How many vehicles does JGSP Novi Sad have in total? What are immediate and not-so-immediate plans regarding this type of electromobility?

A. The JGSP Novi Sad fleet currently has 276 vehicles. According to most research and the regulation being adopted worldwide, electromobility is currently apostrophized as the future of traffic. Following our capabilities and needs, we will adapt to sustainable and economical transportation trends.

Q. Could you compare the financial advantages and disadvantages of conventional buses and new electric ones?

A. Electric buses are more expensive to operate, but only in the beginning. However, the affordability goes in their favor from the moment they start using them. According to data for April 2023 (internal statistics of energy consumption and purchase prices), the cost per kilometer for diesel buses is 65 RSD/km, for CNG buses 46 RSD/km, while for electric buses it is 20 RSD/km. Furthermore, we all know that city traffic is one of the major sources of pollution and we are aware of that part of our responsibility, as companies whose vehicles travel millions of kilometers annually. By investing in a sustainable form of mobility, we will contribute to improving the quality of the environment.

Prepared by: Milica Vučković

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

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