Renewable energy set to be cheaper than fossil fuels by 2020, according to new report

According to a new report, renewable energy will be cheaper than fossil fuels in two years, Experts predict that investment in green infrastructure projects will lead to decreases in the cost of energy for consumers. 

IRENA believes there are three main reasons why this will happen: improvements in technology, a competitive market, and more experienced developers in the industry. The more renewable energy capacity increases, the further it will lower electrical costs. As it doubles, investment drops by nine percent and electricity generation costs drop by 15 percent.

Continuous technological improvements have led to a rapid fall in the cost of renewable energy in recent years, meaning some forms can already comfortably compete with fossil fuels.

The report suggests this trend will continue, and that by 2020 “all the renewable power generation technologies that are now in commercial use are expected to fall within the fossil fuel-fired cost range”. The report looked specifically at the relative cost of new energy projects being commissioned.

Prices could be as low as three cents per kilowatt-hour for onshore wind and solar photovoltaic projects over the next two years. When renewable energy becomes cheaper, consumers will benefit from investment in green infrastructure. The current cost for fossil fuel power generation ranges from around 4p to 12p per kilowatt hour across G20 countries.

“This new dynamic signals a significant shift in the energy paradigm,” said Adnan Amin, director-general of the International Renewable Energy Agency (IREA), which published the report.

Of those technologies, most will either be at the lower end of the cost range or actually undercutting fossil fuels.

“Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now – overwhelmingly – a smart economic one.”

“If the stuff you’re building to generate electricity costs less, the end effect of that is having to pay less for the electricity that comes from it,” Jonathan Marshall, energy analyst at the Energy and Climate Intelligence Unit (ECIU) told The Independent.

Even though much of the focus was on solar and wind, hydropower, bioenergy, and geothermal sources were all part of the ongoing process to make renewable energy a more viable option.

“The cheaper you install it, the better it is for everyone.”

Amazon to Plug into Five Utility-Scale Solar Projects in Step toward 2040 Net-Zero

Online retail giant Amazon has announced plans for five PV projects totaling 615MW in three countries i.e. Australia, China, US, to support its commitment to reaching 80% renewable energy by 2024 for its operations and net-zero carbon across its international network of facilities by 2040.

The retail giant has provided the detail on five new renewable energy projects it hopes will supply approximately 1.2 million MWh of additional renewable energy to its fulfilment network and Amazon Web Services (AWS) data centres. 

The projects – 105MW in New South Wales, Australia, 100MW in Shandong, China, and 410MW in the states of Ohio and Virginia in the US – will supply 1.2 million MWh of solar power to its warehouses and Amazon Web Services’ (AWS) data centres that support its global cloud computing services.

AWS Australia and New Zealand commercial sector managing director Adam Beavis touted this as enough to power the equivalent of 40,000 average Australian homes. Vice president of sustainability at Amazon Kara Hurst said its 2030 milestone could be reached as early as 2025, noting that while the goal will be challenging, the company has a "credible plan to get there".

To date, Amazon has announced 31 utility-scale solar and wind projects and 60 PV rooftops on fulfillment centres and sort centres around the globe, together amounting to a almost 3GW of capacity.

In the US, AWS had contracted 733MW of wind capacity at the end of 2019, sixth among companies behind Google, Facebook, Walmart, AT&T and Microsoft.

According to analyst group BNEF, Corporations globally bought a record of almost 20GW of wind and solar generation through power production agreements last year, which is a leap of 44% from 2018. This has emerged as a key driver in the accelerating global energy transition.

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Dealing Karachi’s Energy Crisis

Karachi is the economic hub of Pakistan, but the city is facing a massive energy crisis, which needs to be dealt on an urgent basis. To remain viable in the coming years as the highest contributor to the country’s gross domestic product (GDP), a strategic energy road-map needs to be devised for the city under a comprehensive framework.

In this spectrum, creating the right benchmarks is crucial. To improve technological expertise within the sector, four components are needed to be simultaneously inter-connected:

• Human resources
• Research
• Development
• Investment

Moreover, providing incentives for the private sector must be the top priority, followed by research-based target setting, bench-marking, and finally enacting the appropriate legislation. 

Despite its geographic scale, the strategic advantage that Karachi has over other cities is that it can leverage a viable energy programme through a transition to renewable energy since it possesses almost all possible renewable energy resources, namely: wind power (inland and offshore), biomass energy production, wave and tidal energy, solar (photovoltaic) power, and waste to energy. And one of the leading solar energy company, Reon Energy, is fully capitalizing the true potential of solar energy and working with different companies, which are seeking for solar energy solutions.

In recent years, Karachi has faced a directional crisis. Instead of focusing on the above mentioned potential avenue. Despite the world moving away from coal production as a source of power, policies for imported coal for energy generation have been developed.

Coal is counter-productive as a power source since it loses the majority of its energy due to high emissions in the coal extraction phase, making it a very expensive source of energy to rely on. As a result, we are unable to comprehend the economic and human loss to our city incurred due to coal extraction.

The ambitious claims of the government to re-shape Karachi’s energy sector are commendable. But that doesn’t reflect the ongoing state of the city. One major concern for our city is the complete absence of research. Instead of building internal capacities, we have resorted to importing equipment from China and other countries, thereby reducing our academic and scientific capability when it comes to solving the energy crisis.

The future energy road-map for Karachi requires a balanced mix of legislation, fiscal instruments, regulations and ordinances, creating a regulatory framework, and introducing the required financial incentives.

How Are Eco-Friendly Transformers Improving Renewable Energy

Although most of power still comes from fossil fuels, solar and wind are among the two fastest-growing renewable energy sources of electricity in the world. It’s easy to see why — the power of the sun and wind won’t be remotely exhausted in our lifetimes.

The “fuel” used in solar- and wind-based electricity generation may be free, accessible, renewable and sustainable, but the manufacturing processes behind the equipment itself can be gigantic. When it comes to individual components like transformers, renewable energy can’t just replace the source of power — it needs to redesign the entire distribution apparatus.

So, how can eco-friendly versions improve clean energy efforts? What Are Eco-Friendly Transformers and its benefits?

It will be a widely used term soon. Eco-friendly transformers are created from the ground for sustainability through each part of the equipment lifecycle. The design mission for eco-friendly transformers is generally as follows:

•      Greener manufacturing process: Assembled from less problematic materials for a reduced impact on natural resource availability.
•      More sustainable operation: Eco-friendly transformers are designed for lower maintenance costs over time, as well as more energy-efficient operation with lower rates of power loss.
•       Lifecycle and retiring EOL products: Eco-friendly transformers last longer. When they do reach their end-of-life date, they’re generally easier to recycle than traditional transformers.

Given below is not the complete benefit list, but some of the sustainability benefits of eco-friendly transformers are as follows:

Quieter Operation

Noise reduction is another benefit that premium build materials can bring. Transformers fabricated using synthetic ester oils operate more quietly than traditional models. They are suitable for use in schools, densely populated communities and areas where the human or ecological impact from noise pollution is a concern. 

As an example, biologists have grown increasingly concerned about the impact on human-generated noise pollution on the foraging, migratory and reproductive behaviors of a wide range of land and marine animals. In addition, potential digestive and general health issues may follow. These and other new technologies may lessen the impact of our most critical infrastructure.

 

Cleaner Manufacturing and Lifecycle

Eco-friendly transformers are designed from the ground up for a greener product lifecycle. They’re manufactured using ester oil — derived from vegetables — rather than more conventional and environmentally harmful mineral oil. 

Ester oil as a coolant and insulating agent is nontoxic and biodegradable. This makes it a good choice for reducing pollution during manufacturing, installation and after the product has been retired from service.

 

Safer Energy Distribution

Our energy distribution infrastructure must become cleaner and more sustainable if human civilization continues in its current form. As we find ways to realize this vision and meet a tightening climate change deadline, we’ll inevitably find ways to make our power grids safer, as well. Call it a two-for-one. 

One of the ways eco-friendly transformers improve safety in the energy sector is through their flame-retardant qualities. With ester oil derivatives as the base material, sustainable transformers offer a much higher fire point than incumbent materials, at about 680 F. 

This gives eco-friendly transformers a far lower chance of catching and spreading fire. As recent news has shown, infrastructure design and management can both play a key role in exacerbating or containing wildfires. Fire management extends to the choice of transformer, as well. A dry type transformer minimizes the chance of fire since it doesn’t contain flammable liquids. 

Every detail is important if utility companies want to reduce the threat of climate change-related wildfires and other disasters destabilizing our electric grids in the future. 

 

Helps Make Clean Energy More Competitive

An appealing side effect of making solar and wind energy more affordable to maintain over time is that it brings down costs for clean energy technology in general. The energy sector will be in transition for some time as the world comes to grips with climate change. This is a significant moment for eco-friendly transformers and similar technologies to step to the fore.

Bringing down operational costs using eco-friendly transformers and other measures serves to make solar and wind more competitive with incumbent fossil fuels, now and into the future.

Making operational expenses more manageable should also help quicken the adoption of other key energy sector technologies, like the smart grid.

 

Longer Equipment Lifecycle

Helping keep transformers and other equipment functioning out in the field for as long as possible is great for cost management. 

It’s also vital for achieving eco-friendliness throughout the nation’s electric grids. Getting the most out of infrastructure investments delivers the bonus of prolonging the amount of time it takes the materials and chemicals in this equipment to reach landfills.

Using greener materials in power generation and electricity distribution equipment keeps these assets running reliably for longer. For instance, the winding insulation within green transformers may last up to five to eight times longer than that of standard transformers. That means a substantially greater return on investment and far less material waste over time. 

Renewable Could Be the Big Winner in the Post-Pandemic World

Undoubtedly, the global health crisis has affected every corner of the energy industry, including renewables, due to which renewable energy investments and installations slowed down. However, renewable energy and green technologies have the chance to emerge as the winners in the post-COVID-19 world.

According to a recent report from the International Energy Agency (IEA), demand for renewables is set to grow this year—and this will be the only energy source to grow in 2020 compared to 2019, in contrast to all fossil fuels and nuclear 

Some analysts argue that we may have already hit peak oil demand, considering that the pandemic might result in lasting changes in consumer behavior and lifestyles, such as the opportunity to work from home indefinitely. Even the bosses of BP and Shell do not rule out the notion that the world may have already seen peak oil demand. 

As per the IEA, the pandemic “is hurting – but not halting – global growth in renewable power capacity.” 

Supportive government policies will be crucial for renewables growth to recover quickly. Early indications from major economies, especially in Europe, are that the so-called green recovery will be the pillar of the policies for economic recovery.

Two of the biggest European economies—Germany and France—called for an acceleration of the green and digital transitions in May. The European Commission (EC) pledged US$630 billion (560 billion euro) to support investments and reforms, including to back the green and digital transitions and the resilience of national economies.

On the other hand, UK, which decided to leave EU, more than 200 companies and business associations called on the UK Government to deliver a clean, inclusive, and resilient recovery plan. Oil supermajors BP and Shell are among the signatories of the letter to the UK government.

While the push for greener economies has been gaining traction, oil companies and their stocks have been suffering in recent years from volatile oil prices and the investor push for accountability for global warming.

Imperial College Business School in partnership with the IEA recently published a report, which states that returns of renewable energy stocks have been significantly higher than returns on fossil fuel stocks.

The report showed that “publically-traded renewable power portfolios have posted significantly higher returns for investors and lower volatility over fossil fuels during the past ten years and during the COVID-19 crisis,” Imperial College London said in a statement.

Uncertainty in the oil and gas industry looks to be much higher than in renewables However, renewables is set for investment and installation setbacks in the short term. The longer-term prospects and economic rationale for renewable energy remain strong as costs continue to decline, while the specter of peak demand will continue to loom over the oil industry.

Solar Panel Recycling: Turning ticking time bombs into opportunities

Australia has certainly increased its appetite for solar power. As the average lifespan of a solar panel being approximately 20 years, the installations from the early 2000’s are set to reach their end-of-life. Will they end up in landfill or be recycled?

Not only the cost of recycling is higher than landfill, but also the value of recovered materials is smaller than the original. Therefore, the interest in recycling is limited. However, given the presence of heavy metals, such as lead and tin, managing the waste poorly can lead to another recycling crisis. A potential time bomb could present itself as an opportunity, however, if the global EV industry showed an interest in the recovered solar products.

The emission of pollution from the hazardous materials in the end-of-life panels can result in significant health issues, if released into the environment. To close the energy cycle, the next task of the solar panel industry is the safe recycling of end-of-life products. In the waste management hierarchy, however, re-use or value-added recovery/re-purposing is preferable to recycling.

The main contributor to the total weight of a typical crystalline silicon PV module is glass (75%), followed by polymer (10%), aluminum (8%), silicon (5%), copper (1%) and small amounts of silver, tin, lead, and other metals and components. Lead and tin, after leaching into soil and groundwater can cause health and environmental concerns, whereas copper, silver, and silicon present a value opportunity if recovered efficiently. So, the landfill option should be fully replaced with recycling to prevent environmental pollution and retrieve the valuable materials present in the panel.

Currently, considering all the impact of recycling, it isn’t be considered the economically favorable option. Therefore, economic incentives are required to accelerate this displacement.

Among the valuable materials in the panel, the best opportunity lies in silicon, given its considerably larger fraction and its ultra-high purity (99.9999% or six nines/6N). The solar-grade silicon from PV waste can be recovered for second-use applications in solar panels or repurposed for value-added application in the anode of the 3b generation of Lithium-ion batteries.

As the solar energy has gained momentum in the past few years, it is expected that more than 100,000 tonnes of solar panels will enter Australia’s waste stream by 2035. But one should think that whether it is the crisis or an opportunity?

If you look up solar panel recycling in Australia, there are a number of services. However, mostly they can recycle less than 20% by weight – the aluminium frame and the terminal boxes. Recycling the remaining 80%, including the precious silicon, is not currently offered in Australia, but it does not have to remain like that.

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OPEC Producer Algeria Aims to Build $3.6B Solar Power Projects

Algeria, an OPEC member, plans to install solar photovoltaic (PV) projects of up to US$3.6 billion worth, to produce renewable electricity for export and meeting increasing domestic power demand. It is expected that the solar power facilities will have a combined installed capacity of 4,000 megawatts (MW), the office of Prime Minister Abdelaziz Djerad said in a statement.

The project for the new solar power plants, called TAFOUK1, is part of the government’s plan to boost power generation from renewable energy sources. The whole project will require investments of between US$3.2 billion and US$3.6 billion, and is expected to create 56,000 jobs during the construction phase and 2,000 jobs during the operational stage, the government said.

The objective of this project is to meet the national demand for energy and to preserve our fossil resources, explains a press release from the Prime Minister. The project would also position itself on the international market, via the export of electricity at a competitive price, as well as the export of know-how, added the press release

The OPEC member generates most of its electricity from natural gas, and therefore plans to have those solar PV plants installed between 2020 and 2024, the prime minister’s office said.

Apart from meeting growing domestic demand and positioning Algeria to export electricity, the new solar projects will help it preserve its oil and gas resources, the government said.

In Algeria, the oil and gas industry is the backbone of the economy, accounting for 20 percent of GDP, and 85 percent of total exports, according to OPEC data. The oil price crash hit Algeria’s finances, and earlier this month, the country decided it would slash its budget for this year by 50 percent due to the drastically lower income from oil after the price crash.

Algeria – which was already feeling a squeeze on foreign exchange reserves even before oil prices collapsed in early May due to the Saudi-Russian oil price war and the global demand crash in the pandemic – is now taking drastic action to protect its finances this year.

Due to the low oil prices, another oil and gas producer in the Middle East and North Africa (MENA) region, Oman, has recently decided to liquidate a solar power company it funded together with Shell because of the persistent depression in oil prices.

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