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EU imports of energy products continued to drop in Q2 2023

Photo-illustration: Pixabay
Foto-ilustracija: Unsplash (Grant Durr)

Following a strong increase in energy imports in the EU between 2021 and 2022, the scenario is different in 2023, with imports dropping for the second quarter in a row when compared with the same period in the previous year.

In the second quarter of 2023, compared with the same quarter of 2022, EU imports decreased by 39.4 percent in terms of value and 11.3 percent in terms of net mass (weight expressed in tonnes). These results follow declines of 26.5 percent and 6.1 percent, respectively, in the first quarter of this year.

In terms of net mass, Russia’s shares in the EU imports of petroleum oils and natural gas have been decreasing continuously over time since the second quarter of 2022. Petroleum oils imports from Russia fell from a monthly average of 8.7 million tonnes in the second quarter of 2022 to 1.6 million tonnes in the second quarter of this year (-82 percent), but, in contrast, the imports from the extra-EU partners except Russia increased by 5.8 million tonnes, from 31.5 million to 37.3 million tonnes.

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Russia’s share in total EU imports of petroleum oils was 4.0 percent in the second quarter of 2023, a staggering difference from the 21.6 percent share recorded in the same quarter of last year.

EU imports of natural gas dropped significantly (-17 percent in terms of net mass) in the second quarter of 2023, compared with the same quarter in 2022. This reduction could have been triggered by the EU reduction plan, where EU countries committed to reducing gas consumption.

Natural gas imports from Russia fell from a monthly average of 5.1 million tonnes in the second quarter of 2022 to 2.5 million tonnes in the second quarter of 2023.

Diversification of suppliers ongoing

Russia’s war of aggression against Ukraine led the EU to implement several packages of sanctions, which directly and indirectly affected the trade of oils and natural gas. The impact is now visible in a growing diversification of energy suppliers.

Regarding petroleum oil, the EU ban on seaborne imports of Russian crude oil entered into force on 5 December 2022, followed by the embargo on refined oil products as of 5 February 2023, which impacted results in the first and second quarters of 2023.

In the second quarter of 2022, Russia was the leading supplier of petroleum oils, with a share of 15.9 percent of total EU imports. In the second quarter of 2023, Russia ranked only 12th, with a share of 2.7 percent, down 13.2 percentage points (pp) compared with 2022.

By contrast, Norway (+3.5 pp up to 13.7 percent), Kazakhstan (+3.2 pp up to 10.2 percent), the United States (+2.1 pp up to 13.6 percent) and Saudi Arabia (+2.3 pp up to 9.0 percent) saw their share increase over the same period, and Libya became an important partner, accounting for 8.1 percent of EU petroleum oil imports.

Foto-ilustracija: Pixabay (piviso)

The situation was similar for natural gas in a gaseous state, with Russia’s share dropping by 14.5 pp to 13.8 percent of total EU imports, while the shares of Algeria (+9.3 pp) and Norway (+6.2 pp) increased significantly. In the second quarter of 2023, Norway was the EU’s top supplier with a share of 44.3 percent of total EU imports, followed by the United Kingdom (17.8 percent) and Algeria (16.5 percent).

As far as liquefied natural gas is concerned, the United States remains by far the EU’s leading supplier in the second quarter of 2023, with a share of 46.4 percent in total EU imports, followed by Russia (12.4 percent), Qatar (10.9 percent), Algeria (9.9 percent) and Nigeria (5.1 percent). Among these suppliers, only Algeria and Nigeria saw their share increase (+5.2 pp and +1.0 pp respectively) compared to the second quarter of 2022. By contrast, the respective shares of the United States, Russia and Qatar fell by -2.8 pp, -2.7 pp and -1.1 pp respectively. Norway and Oman became important suppliers, with shares of 3.3 percent and 2.9 percent respectively.

Source: Eurostat

THE MT-KOMEX COMPANY EXPANDED BUSINESS IN BIH

Photo-illustration: Unsplash (Asia Chang Yr)
Photo: MT-KOMEX

Many years of experience in constructing solar power plants have positioned MT-KOMEX as a safe and reliable partner. Engineers and installers employed by the company regularly attend specially prepared trainings and have so far built and delivered equipment for numerous solar power plants on the ground and on roofs, with a total installed capacity of 60 MW. As pioneers in solar power plant construction projects in Serbia, they are always there to help with expert advice and find the best solution for each client.

The leaders of the company realized that with their knowledge and experience in this field, they could help the development of projects in the area of renewable energy sources in Bosnia and Herzegovina, which is why in April of this year, the decision was made to open the company MT-KOMEX BH.

This area’s market is developing very quickly and has great potential, as needs in terms of energy and investments in renewable energy sources. BiH certainly requires its energy capacities in the production of clean electricity to stop using coal for energy production. As they are in the pre-accession arrangement for membership in the European Union, they must work to reduce carbon dioxide emissions, and they can achieve this by phasing out the use of fossil fuels. The logical sequence of events is the transition to clean energy.

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‘’Solar and wind energy are our chance to switch to green energy, and I see a lot of room for progress there. The problem in BiH is numerous legal regulations and regulations. It significantly complicates the entire procedure of obtaining all the permits required to construct a solar power plant, which significantly complicates the way for all potential investors’’, explains Radoslav Marić, director of MT-KOMEX BH.

The Law does not regulate the prosumer category in the Federation of Bosnia and Herzegovina, and this deters people from investing in small solar power plants. At the same time, the situation is somewhat better in the Republic of Srpska. Still, Marić believes that the laws and measures that have been adopted are not sufficiently encouraging for ordinary citizens.

He hopes that the legal regulations will be changed and that the authorities will follow the examples of the Republic of Serbia and the Republic of Croatia, which recognized the importance of the prosumer concept by adopting the Law on the Use of Renewable Energy Sources. The fact that the number of small solar power plants doubled last year shows that this segment of the Law is also well-regulated.

Complicated procedure

Different legal procedures in the Federation of Bosnia and Herzegovina, at the level of Republika Srpska and in Brčko District, cause headaches for potential investors in solar power plants. Marić says that the company saw that it could help in this segment, and that’s where they recognized their chance.

‘’We offer, so to speak, a complete package of services. It practically means that the company’s expert team does everything, from idea to implementation. So we issue all the necessary permits, work on the project’s development, and obtain all the necessary approvals. We actually do the entire project, the whole administrative part, and then realize it according to the turnkey system. It is one of the rare and unique offers in Bosnia and Herzegovina’’, Marić explains.

Numerous investors are ready to invest in solar power plants in this country; projects are being prepared for solar power plants, both on the ground and on the roof. The engineers and installers of the company MT-KOMEX BH are ready for all the challenges that business brings to them in Bosnia and Herzegovina and to help every client construct a solar power plant.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

Stepping up in renewables towards energy stability

Photo: OIE Srbija
Photo: OIE Srbija

Alessandro Bragonzi, Head of Regional Hub for the Western Balkans, one of the participants in the OIE Serbia 2023 conference, organized by the Association of Renewable Energy Sources of Serbia, wrote for OIE Serbia about renewable sources, the increase of which leads to energy stability.

With cold season approaching, European economies are reevaluating their energy plans, hoping for equally mild winter temperatures as in 2022, even though a lot has been achieved to shore up the energy security, independence and foster the path to decarbonisation. Thanks to the REPowerEU plan, wind and solar generated a record one fifth of EU electricity in 2022 (22 percent), for the first time overtaking fossil gas (20 percent), and remaining above coal power (16 percent), according to the European Electricity Review.

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Accompanying infrastructure to enable expansion of renewables

Despite the progress, vulnerabilities in the energy sector remain. Clean energy investments on a global scale need a threefold increase by 2023, if we are to reach carbon neutrality by 2050. Public spending constraints make progress even more challenging. Investments are also hindered by higher upfront expenditures, making the cost of funding a crucial variable for investors, even if this is offset over time by lower operating costs.

Expanding transmission and distribution capacity, building interconnections, and bolstering energy storage capabilities to improve grid flexibility will be key determinants for achieving EU renewable targets of 45 percent by 2030. The European Commission estimates that investments of 584 billion euros will be needed. The International Energy Agency indicates that up to a record 2.6 trillion euros will be invested in energy in 2023.

Climate change and the accompanying extreme weather events may seriously impair these ambitions, insofar as causing severe damages to power lines and energy supply. On top of that, heat waves are increasing the demand for energy for cooling, which represents 10 percent of global electricity demand on average, reaching up to 50 percent in some countries. Prolonged droughts are also responsible for water shortages which are directly affecting hydropower and other electricity production capacities. In 2022, due to extreme droughts across Europe, hydropower generation was the lowest in over two decades.

Initiative for coal regions in transition

Photo-illustration: Pixabay (Pexels)

In the Western Balkans, fossil fuels still account for around three quarters of primary energy supply and energy intensity of GDP is still relatively high. When you look at the technical issues associated with the operation of coal plants, high electricity prices, but also the impact of drought on hydropower and the cost of biomass, the pressure to shift to a more secure and diversified energy strategy becomes clear. However, due to limited financial resources and unstable investment climates, the financing renewable energy projects can be challenging, especially for countries with weaker economies.

Further support of policy makers, enhanced public-private collaborations, targeted investments and technological advancements will be decisive going forward. The EU is providing ongoing support for the regional energy transition through the EU accession process that harmonises energy policies, facilitates cross-border projects and fosters market integration.

The Western Balkans is also part of the EU’s Initiative for Coal Regions in transition that helps countries move towards a carbon-neutral economy, while ensuring that this transition remains just. Thirteen NUTS-2 regions have been identified as eligible, including Kostolac, Kolubara, Obrenovac and Pomoravlje in Serbia. The country also benefits from the EU energy support package allocated to the Western Balkans in 2022, with an individual allocation of 165 million euros provided for Serbian citizens and companies as response to energy crisis.

Increasing financing targets for green investments

As the EU Bank, the EIB Group is contributing to this just and inclusive transformation through clean energy investments, as key enablerof the REPowerEU plan. In July 2023, the bank approved an increase by 50 percent of the financing targets of the original EIB commitment, thus aiming to achieve up to 45 billion euros until 2027 under this initiative. This additional financing is expected to mobilise over 150 billion euros in new green investments, helping Europe cut its carbon emissions to net zero by 2050.

In the Western Balkans, EIB Global aims to help utilities decarbonize their energy production and to back transmission systems operators in their efforts to integrate renewables in modernised electricity grids. Along with large-scale energy infrastructure, it is providing financing for SMEs and local municipalities for renewable energy and energy efficiency projects through dedicated credit lines available at commercial banks.

Alongside European Commission, the bank will continue to help drive forward EU initiatives, including the Economic and Investment Plan, the Global Gateway and the Green Deal which entail substantial funds towards more secure and sustainable energy system in the region.

Author: Alessandro Bragonzi, Head of Regional Hub for the Western Balkans

Lagging policy support and rising cost pressures put investment plans for low-emissions hydrogen at risk

Foto-ilustracija: Freepik (freepik)
Photo-illustration: Pixabay

Momentum behind low-emissions hydrogen continues to grow despite the slow roll-out of financial incentives and stubborn cost pressures that threaten to delay projects, a new IEA report says today. But production levels can still increase substantially by 2030 if all announced projects are realised and greater efforts are made on encouraging uptake.

The number of announced projects for low emissions hydrogen continues to expand rapidly while more than 40 countries worldwide have set out national hydrogen strategies to date. Yet, installed capacity and volumes remain low as developers wait for government support before making investments. As such, low-emissions hydrogen still accounts for less than one percent of overall hydrogen production and use, according to the latest edition of the IEA’s annual Global Hydrogen Review 2023.

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Against the backdrop of a global energy crisis, high inflation and supply chain disruptions, new projects face rising costs, at least temporarily, that threaten long-term profitability. Inflation and more expensive borrowing costs are affecting the entire hydrogen value chain, driving up financing costs for developers and reducing the impact of government support. This confluence of factors is particularly detrimental for an industry that faces high upfront costs related to equipment manufacturing, construction and installation.

Despite economic headwinds, deployment of electrolysers is beginning to accelerate. By the end of 2022, electrolyser capacity for hydrogen production reached almost 700 MW. Based on projects that have reached final investment decision or are under construction, total capacity could more than triple to 2GW by the end of 2023, with China accounting for half of this. If all announced projects are realised, a total of 420GW could be achieved by 2030, an increase of 75 percent compared to the IEA’s 2022 review.

“We have seen incredible momentum behind low-emissions hydrogen projects in recent years, which could have an important role to play in energy-intensive sectors such as chemicals, refining and steel,” said IEA Executive Director Fatih Birol. “But a challenging economic environment will now test the resolve of hydrogen developers and policymakers to follow through on planned projects. Greater progress is needed on technology, regulation and demand creation to ensure low-emissions hydrogen can realise its full potential.”

Photo-illustration: Pixabay (akitada31)

Beyond the challenges facing manufacturers and developers, the report also finds that efforts to stimulate demand for low emissions hydrogen are lagging behind what is needed to meet climate ambitions. Hydrogen use globally reached 95 million tonnes in 2022, an increase of nearly three percent compared with the previous year. There was strong demand growth in all major consuming regions except Europe, which suffered a hit to industrial activity due to the sharp increase in natural gas prices. However, uptake of low emissions hydrogen remains very limited, accounting for only 0.6 percent of total hydrogen demand. As a result, hydrogen production and use in 2022 released some 900 million tonnes of CO2 to the atmosphere.

The report outlines how low-emissions hydrogen can be an opportunity for countries to boost their economies for the future by creating new industrial supply chains. Government funding programmes are already available through schemes such as the US Clean Hydrogen Production Tax Credit, the European Union’s Important Projects of Common European Interest, and the UK Low Carbon Hydrogen Business Model. However, the lengthy time lags between policy announcements and implementation are causing developers to delay projects.

Annual production of low-emissions hydrogen could reach 38 million tonnes per year in 2030, if all announced projects are realised, with almost three quarters of it coming from electrolysers running on renewable energy and the remainder using fossil fuels with carbon capture, utilisation and storage. The best prospects for low-emissions hydrogen use are in hard-to-abate industrial sectors, by replacing hydrogen produced from unabated fossil fuels, but progress has been slow. The lack of attention to hydrogen demand creation is illustrated in existing country commitments. The sum of all government targets for low-emissions hydrogen production accounts for up to 35 million tonnes today, but targets for creating demand account for just 14 million tonnes, only half of which is focused on existing hydrogen uses. Direct purchase agreements with private sector consumers are beginning to emerge but remain at a very small scale.

The report suggests several steps for governments to reduce risk and improve the economic feasibility of low-emissions hydrogen such as effective delivery of support schemes, bolder action to stimulate demand, and addressing market barriers such as licensing and permitting. Moreover, establishing international markets in hydrogen requires cooperation to develop common standards, regulations and certifications.

Source: IEA

INVESTING IN RENEWABLE ENERGY POWER PLANTS

Foto-ilustracija: Unsplash (T L PlbeyaME7Jk)
Photo: courtesy of professor Milenko Đurić

In this article, I will focus only on those electricity sources that use renewable energy, which I know relatively well. These are small hydroelectric power plants, wind farms, solar power plants and power plants that use biomass that they burn directly or generate gas from biomass, mainly used by piston engines with internal combustion.

The basic feature of the first three types of power plants is the great variability of available power. The available power at these power plants is stochastic and can only be partially predicted. It means that the power system to which these power plants are connected must at all times have a working reserve that is at least equal to the power currently generated by small hydropower plants, wind farms and solar power plants. In other words, the installed power in the base part of the power system cannot be reduced at the expense of the installed power in power plants that use renewable energy sources. Power plants that use renewable energy sources can save energy that would otherwise have to be supplied by the base part of the power system. It reduces the consumption of coal, gas and fuel oil in thermal power plants, as well as the release of unwanted gases into the atmosphere.

IN FOCUS:

Given that funds must be invested in constructing power plants that use renewable energy, the number of MWs installed in the power system has been increasing. It leads to a higher fixed part in calculating the electricity price. The variable part in the calculation is zero for these power plants because the energy of water, wind and sun is free. However, the price of electricity in a power system with renewable energy power plants must be higher than in the same power system without renewable energy power plants because the number of installed MWs in such a power system is higher. The price of electricity in thermal power plants depends a lot on the fuel price (coal, oil, and gas). The increase in the prices of these fuels goes in favour of power plants that use renewable energy because their fuel is practically free.

Power plants that use biomass as fuel have less variability in available power. In this respect, these power plants are better than the previous three types. However, biomass must be collected from large areas of arable or other land and delivered to the power plant, incurring transportation, storage, and biogas production costs.

professor PhD Milenko Đurić

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

Saudi Arabia to host World Environment Day 2024 with a focus on land restoration, desertification, and drought resilience

Foto-illsutration: Unsplash (John-o-Nolan)
Foto-ilustracija: Pixabay

The Kingdom of Saudi Arabia will host World Environment Day 2024 with a focus on land restoration, desertification and drought resilience, the UN Environment Programme (UNEP) and Saudi Arabia announced today.

World Environment Day, marked annually on 5 June, was established by the United Nations General Assembly in 1972. Over the past five decades, the Day has grown to be one of the largest global platforms for environmental outreach. Tens of millions of people participate online and through in-person activities, events and actions around the world.

According to the UN Convention to Combat Desertification, up to 40 per cent of the planet’s land is degraded, directly affecting half of the world’s population and threatening roughly half of global GDP (US$44 trillion). The number and duration of droughts has increased by 29 per cent since 2000 – without urgent action, droughts may affect over three-quarters of the world’s population by 2050.

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Foto-ilustracija: Pixabay

Land restoration is a key pillar of the UN Decade on Ecosystem Restoration (2021-2030), a rallying call for the protection and revival of ecosystems all around the world, which is critical to achieve the Sustainable Development Goals.

2024 will mark the 30th anniversary of the UN Convention to Combat Desertification. The sixteenth session of the Conference of the Parties (COP 16) to the United Nations Convention to Combat Desertification (UNCCD) will be held in the Saudi capital, Riyadh, from 2 to 13 December 2024.

Source: UNEP

ABB to invest 280 million dollars in its European Robotics hub in Sweden

Photo: ABB
Photo: ABB

ABB announced an investment of 280 million dollars to expand its manufacturing footprint in Europe and build a new state-of-the-art ABB Robotics European Campus in Västerås, Sweden. The Campus will serve as the hub for ABB Robotics’ offering in Europe, providing customers with AI-enabled collaborative and industrial robots, as well as digital solutions to support flexible automation as part of the company’s “local for local” production strategy. Replacing the existing robotics facilities at the site, the new Campus is planned to open in late 2026.

“The investment in our new Campus is driven by customer demand and projected market growth,” said Björn Rosengren, ABB CEO. “Following important investments in China and the U.S, the new facility in Sweden will strengthen our capabilities in serving our customers in Europe with locally manufactured products in a growing market. Already today, around 95 percent of the robots ABB sells in the region are manufactured here. This is a strong commitment not only to our “local for local” strategy, but to all our robotics customers across Europe.”

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ABB’s investment in the Robotics Campus in Västerås will enhance its robotics and automation leadership globally. With the facility, ABB will expand production capacity by 50 percent and strengthen its capabilities to supply the European market, which is expected to grow at seven percent CAGR through 20271. When the campus is completed, ABB will have invested 450 million dollars in its three robotics facilities since 2018, including its mega factory in Shanghai that supplies customers in Asia and the Auburn Hills facility that supports the Americas.

Photo: ABB

“This is a great time to invest in robotics and automation. This new Campus is a significant part of our global growth story and key in supporting our European customers as they accelerate investment in robotics and AI due to the reshoring of industry, the move to more sustainable supply chains and long-term labor shortages,” said Sami Atiya, President of ABB’s Robotics & Discrete Automation Business Area. “Our Robotics Campus will help us to serve our customers more efficiently and support new and existing sectors like automotive, electronics, logistics, healthcare, e-commerce and pharmaceuticals to unlock the full potential of automation.”

ABB’s new Campus will enable close collaboration with customers and partners to develop robotics and automation solutions in a safe and functional environment. Customers will be able to test their solutions and experiment with the latest automation innovations on-site. In addition, employees, visitors, and students alike will be able to take part in an open and lively Campus, both during and after office hours.

“Our new, sustainable facility in Sweden will be located at the cradle of ABB Robotics’ global innovation, starting with ABB’s development of the world’s first commercial all-electric robot nearly 50 years ago”, said Marc Segura, President of ABB Robotics. “In our new R&D center, we are focusing on the development of new digital and AI-enabled technologies, making robots increasingly accessible while lowering the entry barrier for applications in all industries.”

Photo: ABB

The 65,000 m2 Campus will be a modern workplace for ABB Robotics’ workforce of 1,300 in the area and include a new factory, offices, a research and development center, an experience center and a training center for customers and visitors. The new factory will also feature autonomous mobile robots (AMRs) as a key component in transporting materials and products between the warehouse, assembly stations and assembly departments. The construction is planned to start in 2024 and will replace the nine separate buildings that have grown organically since 1974 and currently constitute the robotics operations in Sweden, thus further strengthening cross-functional synergies.

By building the Campus in Västerås, ABB continues to consolidate the area as an automation cluster, staying in important proximity to customers, suppliers, academia, and partners. The Campus will provide a unique opportunity to develop the ecosystem while maintaining rapid lead times, with shorter transports and a reduced carbon footprint. It also further allows ABB to leverage competencies and capabilities cultivated by ABB Robotics in Sweden over the past 50 years.

The campus will be constructed in line with ABB’s 2030 Sustainability Targets that aim towards carbon neutrality within ABB’s operations by reducing greenhouse gas emissions and increasing preservation of resources. To support this, consideration will be made in the selection of building materials and construction processes as well as in the use of solar panels on the roof.

Source: ABB

EU continues phasing out use of chemicals that harm the ozone layer

Foto-Ilustracija: Pixabay (PIRO4D)
Foto-ilustracija: Pixabay

EEA’s indicator on the consumption of ozone-depleting substances shows that the EU continues to actively phase out the use of these chemicals, in line with its commitment under the Montreal Protocol.

Ozone-depleting substances (ODS) are widely used in refrigerants, polymers, pharmaceuticals, and agricultural chemicals.

Data for 2022 shows that consumption of ODS in the EU was negative (-3,623 metric tonnes). Negative consumption of ODS means statistically that more of these substances were destroyed or exported than produced or imported.

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The updated data is published ahead of the International Day for the Preservation of the Ozone Layer, celebrated annually on 16 September to commemorate the signing of the Montreal Protocol on Substances that Deplete the Ozone Layer in 1987.

Stopping the use of ozone-depleting substances is crucial to protecting the ozone layer in the Earth’s atmosphere. The ozone layer serves an important function as it absorbs the sun’s ultraviolet rays, which can pose a danger to the environment and human health.

Source: EEA

WHY SHOULD WE ALL USE SOLAR ENERGY

Photo-illustration: Unsplash (Andreas Gucklhorn)
Photo: ProCredit

We are all witnesses that the climate is changing faster and that global warming threatens the very survival of the planet and all its inhabitants. Research confirms that humans are to blame for all of this. If we cause the problem, we are the only ones who can offer a solution.

How to translate our words into action? Is it possible for us as individuals to do something really significant about it?

The answer is “yes”; it is possible. One of the key ways is to be determined to start using renewable energy sources.

Sun-generated energy

Solar energy is one of the biggest and inexhaustible sources of green energy. People have been using it for more than 2,000 years. The ancient Greeks and Romans used concave mirrors to direct the sun’s rays onto a target and set fire to enemy ships. Today, instead of mirrors, we have photovoltaic solar panels and systems that absorb sunlight and generate electricity, which we then use to supply households, power cars, production plants and even entire cities.

How can we become users of solar energy? First of all, we need to become aware of all the benefits of its use.

IN FOCUS:

Bank as an advisor and financial supporter

Having understood why solar energy is the energy of the future, the next step is the investment. We learned from Marina Mijić, Head of the Energy Efficiency and Environmental Unit at ProCredit Bank, that using solar panels and solar systems is no longer science fiction for us.

“Someone might wonder why people from our bank took it to explain why and how to invest in renewable energy sources, specifically solar. The answer is simple – ProCredit Bank has been actively engaged in green investments for more than a decade. The green loan portfolio already makes up almost 20 per cent of the total portfolio of ProCredit Group.

Foto-ilustracija: Pixabay (mrganso)

Our team consists of available environmental protection experts who know every step of the solar investment process. They can explain to you why it is good to invest in solar systems, what exactly you and your household get from it and what the benefits are for nature. They can also explain the financial construction in detail and give you the proper justification for the investment but also recommend adequate manufacturers and subcontractors with the best performance. Because we are committed to environmental protection as an institution, we have developed an appropriate organizational framework to support it. Our special department deals with environmental protection and renewable energy sources. Although massive investments in renewable energy sources have been made recently, we have been doing it for a decade, and we can say that our banking advisors have good expertise in this area of financing. Implementing solar technologies in households will immediately show its good sides, while the justification for the investment will be more than obvious in the long run. The maturity of the return on the investment has decreased significantly, almost halved, so you should take advantage of the current market opportunities and invest in something that helps us and everyone around us,” says Ms Mijić.

ProCredit Bank

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

Stronger international cooperation in high emissions sectors crucial to get on track for 1.5°C climate goal

Foto ilustracija: Pexels
Foto-ilustracija: Pixabay (SailingOnChocolateRoses)

Insufficient progress in transitions to clean technologies and sustainable solutions over the past year highlights the need for strong and targeted international collaboration in high emissions sectors to deliver transitions that are faster, easier and cheaper for all, according to the latest Breakthrough Agenda Report.

The new report – an annual collaboration between the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA) and the United Nations Climate Change High-Level Champions – shows that current efforts on clean energy and sustainable solutions, while improving, are not yet delivering the levels of investment and deployment required to meet international climate goals. In response, it calls on governments to strengthen collaboration in key areas – such as standards and regulation, financial and technical assistance and market creation – to turbocharge the transition.

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Released on the eve of Climate Week NYC, the report examines the advances made and actions needed to meet the goals of the Breakthrough Agenda, a commitment signed by 48 countries representing close to 80 percent of global economic output since it was first launched at COP26 in Glasgow in 2021, and which announced a Partnership with the UAE COP28 Presidency in January 2023.

The annual process aims to align actions by countries to make clean technologies and sustainable solutions the most affordable, accessible and attractive option in each of five key sectors: power, road transport, steel, hydrogen and agriculture. The scope of coverage has been expanded in this year’s edition of the report to also cover buildings and cement. Collectively, these seven sectors account for more than 60 percent of global GHG emissions, while the focus of the Agriculture Breakthrough also addresses issues around climate adaptation, nature and food security.

Foto-ilustracija: Pixabay

The second annual report assesses progress made since 2022 in priority areas for international collaboration, and sets out a series of recommendations for countries to work together in each sector to help reduce emissions over the next decade and stave off the worst effects of climate change. The report shows how the transition to clean energy and sustainable solutions is accelerating across many sectors, with unprecedented expansion in technologies such as electric vehicles and solar PV. It highlights that electric passenger cars are set to account for 18 percent of total car sales in 2023, while investment in clean energy technologies is significantly outpacing spending on fossil fuels. But other high emissions and hard-to-abate sectors such as steel, hydrogen and agriculture are not transitioning quickly enough despite encouraging progress in some areas.

The report’s recommendations span financial assistance, research and development, demand-creation, infrastructure, standards and trade, to accelerate the transition in each sector. Coordinated actions in each of the seven sectors will help mobilise investment, and can create the economies of scale required to bring down the price of crucial technologies and sustainable agriculture solutions.

The report found that in the past year, only modest progress has been made in strengthening international collaboration in the areas where it is most needed. Progress has been made in expanding financial assistance to developing countries in some sectors, and in joint research and development initiatives. But much more progress is needed in aligning policies to create demand for clean technologies, and in establishing dialogue on trade in sectors where this is likely to be critical to the transition. In most sectors, participation in the leading initiatives for practical cooperation still falls short of a majority of the global market.

The report argues that greater political commitment is needed to progress from softer forms of collaboration, such as sharing best practice, to harder forms such as alignment of standards and policies, which are more difficult but can yield greater gains in mobilising investment and accelerating deployment.

Source: IEA

K2 Base: Obstacle detection with AI and planning with optimised thermal separations

Foto-ilustracija: Pixabay
Photo-illustration: Unsplash (Raphael Cruz)

The innovative planning tool K2 Base enables fast, safe and accurate planning of PV projects. In just five steps, you can determine the optimal design of your K2 mounting system and the configuration of your PV project for pitched and flat roofs. And all of this is free of charge! No wonder K2 Base has become one of the most popular planning tools in the industry.

The free planning software K2 Base is now also intelligent. In the new Obstacle Detection function, artificial intelligence is used to recognise and automatically add elements such as chimneys, skylights or other obstacles once they have been drawn in. This eliminates the need for the planner to manually draw in various obstacles. This saves time. 

Planning is also simplified by optimised thermal separations, the definition of which is automatically available to the planner in K2 Base. From now on, individual module fields are distributed even more evenly and the weight to be ballasted is thus optimally distributed.

Interface K2+ to PV*SOL premium

With K2+, the planning tool K2 Base now also enables the direct transfer of project data from and to PV*SOL premium from Valentin Software. In future, these values will therefore no longer have to be entered several times during the photovoltaic planning process. This saves time and money and avoids the risk of values not being entered or updated correctly. With the addition of PV*SOL premium, K2 Systems is expanding the existing interfaces to SolarEdge, SMA, Fronius, Kostal, GoodWe and archelios™ Pro with another important module. This facilitates the planning of photovoltaic systems with the K2 mounting systems.

Optimal design on hipped roofs

The free K2 Base planning software can now be used not only for flat, gable and monopitch roofs. In future, photovoltaic systems on hipped roofs can also be planned in offset and thus space-optimised placement, including obstacle recesses and shadow casting views. K2 Base thus expands the range of installations that can be planned with the K2 software. A hipped roof usually has two trapezoidal and two triangular roof surfaces – i.e. four potential substrates for the photovoltaic system. However, the pointed roof shapes limit the usable area. For a particularly high yield, it is therefore important to arrange the modules in the most space-saving way possible. This is possible with K2 Base.

Source: K2

ABB invests in strategic partnership with clean energy start-up to offer end-to-end wind energy portfolio

Photo: ABB
Foto-ilustracija: Pixabay

ABB Motion and WindESCo, have signed a strategic partnership, where ABB has acquired a minority stake in the company through its venture capital unit, ABB Technology Ventures (ATV). US-based WindESCo is the leading analytics software provider for improving the performance and reliability of wind turbines. Leveraging WindESCo’ solutions, the investment will strengthen ABB’s position as a key enabler of a low carbon society and its position in the renewable power generation sector. It will allow the company to continuously improve wind turbines’ performance and reliability, offer end-to-end solutions to wind customers and open a new market channel for its digital offering. Financial details of the investment were not disclosed.

ABB is a leading independent supplier of wind converters for medium voltage and low voltage wind turbines. WindESCo has around 25 employees and works with 40 customers on projects in 18 countries. It has developed a market leading OEM agnostic asset performance monitoring software to detect anomalies in wind turbines, propose corrective actions and measure their results. The company has also developed a wake optimization solution that leverages data across a wind plant to optimize plant output. With their combined offering, ABB and WindESCo can now offer a complete solution approach to customers. WindESCo will be able to leverage ABB’s electrical domain expertise to further strengthen its software offering, while ABB closes a gap in its wind portfolio by adding a digital offering to the already digitally enabled wind converters.

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“This strategic venture capital investment allows us to strengthen our market position supporting the energy transition and continue to shift our portfolio of customer solutions towards renewables and decarbonization. It will complement ABB’s wind portfolio with a strong digital offering by WindESCo, that enables both companies to leverage their strong presence in the growing wind market. This win-win transaction will offer a holistic solution approach to our customer bases, and it will expand the service offering by ABB Motion. We look forward to developing new synergies with the talented team at WindESCo,” commented Chris Poynter, President, System Drives division, ABB Motion.

Foto-ilustracija: Unsplash (Grahame Jenkins)

Mo Dua, CEO, and founder of WindESCo, said: “There is tremendous value locked in the wind turbine converter data. While most of the solutions have focused on the mechanical systems, there are no solutions having a meaningful impact on the electrical system. The equity investment by ABB and our technical collaboration will allow WindESCo to expand its offering to the wind turbine electrical system with the goal of being the leading comprehensive asset performance monitoring solution provider for the wind industry. We are glad ABB chose WindESCo as their digitization partner.”

The partnership helps expand ABB’s ecosystem of innovation partners developing solutions that support decarbonization and energy efficiency. Since 2009 ABB has made investments of around 400 million dollars from its capital venture arm that are aligned with its electrification, robotics, automation and motion portfolio.

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com

WindESCo’s mission is to ensure that every wind turbine produces as much energy as possible, through improved performance, reliability, and/or plant-level control. Maintaining a hyperfocus on wind energy WindESCo is actively addressing the industry’s technical pain points driving an increase in profit margins. The company’s platform is actively optimizing wind plants covering 21 turbine OEMs, 74 turbine models in 18 countries.

Source: ABB

SIGNIFICANCE AND APPLICATION OF ESG PRINCIPLES IN THE REAL ESTATE SECTOR

Photo-illustration: Pixabay (Q K)
Photo: Novaston

The Novaston company plans and aligns Environmental, Social and Governance (ESG) activities with its general goals. They recently published a Guide to real estate development: an example of office space, which they worked on together with the law firm Gecić Law.

Mia Zečević, general director of the Novaston company, says that within the guide, an entire chapter is dedicated to ESG principles, their importance, and their application in the commercial real estate sector.

‘’The guide can be downloaded free of charge from our website, as well as from the website of the law office; it is available in both languages (Serbian and English). With this, we wanted to, as a socially responsible company, contribute to a better understanding of the ESG concept and principles and facilitate the entire process for investors when they decide to invest in business premises’’, Zečević points out.

On how she sees the role and development of ESG in this company as a wider business environment in the years to come, Mia Zečević says that ESG principles are no longer a matter of trend and choice. Still, their implementation in all business spheres is a key factor and a necessity for all companies. Soon it will be necessary for everyone who wants to do business with other companies in the EU market.

IN FOCUS:

‘’All banks, especially European ones, see the implementation of these principles as imperative, which is also shown by the incentives they receive from the EU. This year, most banks will perform a screening – what is green in their portfolios, which projects meet ESG standards, which meet the requirements for obtaining an energy passport, which meets the standards for LEED and BREEAM certificates and for which categories. Those companies whose projects are not aligned with ESG standards will have a different risk assessment, and it will be more difficult for them to borrow, get a development loan or a development investment’’, explained Zečević.

As for the Novaston platform, they started working on a strategy to introduce ESG principles into business. This company primarily provides services, so they are already very much up to date with everything. Following the situation, they advise clients and investors on applying ESG principles, primarily in constructing or applying them within existing buildings.

On the one hand, Novaston’s role as a renowned company is to educate clients and employees, initiate initiatives, and point out the importance of applying all these principles in business to be sustainable and scalable.

Novaston

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

In Tanzania, communities save money together to build a brighter future

Photo-illustration: Unsplash (Polina Koroleva)
Photo-illustration: Freepik (freepik)

In southern Tanzania, women are working together to save money, access small loans, and obtain emergency funding for medical or other crises.

Known as Village Savings and Loan Alliances (VSLAs), these models are an integral component of the CARE-WWF Alliance, a partnership that champions the power and resilience of women, communities, and ecosystems so current and future generations can thrive. They are self-managed groups of individual members from within a community who pool funds together.

Regular VSLA meetings also play another critical role: drawing the communities together and furthering more of the Alliance’s mission. While they are gathered to deposit their savings and discuss their finances, people also feel encouraged by the Alliance to discuss and problem-solve around landscape restoration, the value of businesses that do not harm the environment, and agriculture practices that help mitigate the impacts of climate change.

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These discussions contribute to the successful implementation of the other Alliance programming that supports villages in protecting their natural resources and helps small-scale farmers and producers build the skills they need to increase production, improve resilience, adapt to climate change, diversify diets, and boost nutrition.

Lilian Mkusa has been the VSLA project coordinator for the Alliance in Tanzania since the program began in 2008. In this role, she helps the communities start their programs, provides financial and savings training, advises on business startup options, and helps ensure the active participation and leadership of women in the groups.

Source: WWF

SKE and Huawei A Value Added Partnership

Photo: SKE
Photo: SKE

SKE is a Huawei Value Added Partner. Based in Austria, SKE supplies 16 countries – Albania, Bosnia, Bulgaria, UK, Greece, Ireland, Kosovo, Croatia, North Macedonia, Moldova, Montenegro, Austria, Romania, Serbia, Slovenia, and Cyprus – with Huawei smart solar products. Founded in 2008, SKE is now one of the leading companies in the European solar market.

SKE in Serbia

Serbia represents an important market for SKE and Huawei FusionSolar. SKE always strives to provide the best possible pre and after sales service to its customers. SKE Technical Sales Management provides all SKE partners with in-depth product knowledge via dedicated roadshows and Hands on Practice training. Our highly experienced SKE Key Account Management team supports our corporate accounts within the Serbian market.

We are SKE

Our experts provide support to customers all across Europe in sales, logistics, training, certification, and technical issues for all Huawei FusionSolar products. SKE imparts knowledge from experts to experts. The SKE Academy turns participants into competent contacts, from the planning all the way through to the installation of Huawei FusionSolar solutions. Our products and services help people and industries to solarize their energy needs and thus effectively reduce their emissions and grid dependency. Our connections with employees, customers, partners, suppliers, and society shapes our business decision-making.

SKE HOP – Hands on Practice Trainings – Huawei FusionSolar

HOP, Hands on Practice, are the expert training from SKE. They are the essential part of the SKEPP – SKE Partner Program to become certified and listed as an SKE Partner. SKE HOPs last one day and take place either at the SKE headquarter in Steyregg or on-site in the SKE countries. Each training consists of a theoretical and a practical part. SKE partners are among the best. To become a certified SKE partner, everyone without exception has to take part and pass the exam.

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SKE Huawei FusionSolar Roadshow

The SKE Roadshow Trucks are on the road throughout Europe. On site, at wholesalers and installers, SKE presents the Huawei FusionSolar portfolio. The Huawei FusionSolar products are within reach of the participants. SKE experts are available to answer any questions. All current dates for the SKE Hands on Practice training and Roadshow Tourstops are online. (www.ske-solar.com)

Photo: SKE

The transformation from fossil energy to solar energy generation is our mission. SKE is leading the change. Our global partnerships drive sustainable, solar energy production. SKE takes initiative to increase environmental awareness through its development and dispersion of environmentally friendly technologies. Carbon neutrality requires the transformation of energy systems to digitalized energy systems, which enormously accelerates the switch to renewable, climate-neutral energy supply. SKE is convinced that digital technologies play a crucial role in overcoming our environmental challenges. The symbiosis of Huawei hardware and software makes the interaction of energy generation and energy consumption more intelligent, more efficient and safer.

SKE Photovoltaic Service Areas

As a Huawei Value Added Partner and Huawei Service Partner, SKE offers Huawei FusionSolar solutions for residential, commercial & industrial and utility scale applications. Photovoltaic is the central technology of the energy transition. It sustainably supplies people with cheap solar power instead of expensive grid power. Solar energy is environmentally friendly and free of CO2.

Huawei FusionSolar Residential

Intelligent & sustainable living with PV

Huawei FusionSolar Residential is intelligent PV technology for solar energy generation in all private dwellings and living areas – in single-family houses, apartment buildings and multi-party residential buildings. Huawei FusionSolar Residential aids homeowners to become independent of increasing electricity prices.

Huawei FusionSolar C&I

Efficient & calculable working with PV

Huawei FusionSolar C&I is smart technology for solar energy generation for commercial and industrial infrastructures. Huawei FusionSolar C&I is profitable and helps businesses become independent of unpredictable electricity prices.

Huawei FusionSolar Utility Scale

Large, smart, and profitable PV power plants

Huawei FusionSolar Utility Scale is the leading technology for solar power generation with large-scale PV systems. Huawei FusionSolar Utility Scale is a smart investment for maximum yield and return.

 Source: SKE

Upcoming EU Hydrogen Bank pilot auction: European Commission publishes Terms & Conditions

Foto-Ilustracija (akitada31)
Photo-illustration: Freepik (freepik)

The Commission published the Terms and Conditions (T&C) for its pilot auction dedicated to European renewable hydrogen production. It is an important step towards scaling up production of renewable hydrogen in the EU.

The auction, funded by the Innovation Fund under the umbrella of the EU Hydrogen Bank, is intended to open on 23 November 2023. Following stakeholder consultations ongoing since March 2023, today’s publication of the T&C gives potential bidders advance information about the final economic design of the auction and helps them start preparing their bids.

The auction will award up to 800 million euros to renewable hydrogen producers in the European Economic Area (EEA). The support will take the form of a fixed premium in €/kg of renewable hydrogen produced over ten years of operation, therefore targeting the gap between the production costs and the demand’s willingness to pay.

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The auction is designed to achieve four objectives:

  1. Reducing the cost gap between renewable and fossil hydrogen in the EU as effectively and efficiently as possible by allocating public support. Auctions have proved to be a success in the renewable power sector, bringing down the required funding for renewable power generation through competition on price while mobilising private investments.
  2. Allowing for price discovery and renewable hydrogen market formation. Competitive auctions with a simple and transparent set-up reveal production costs and create valuable and comparable price points that can serve to kick-start a European hydrogen market.
  3. De-risking European hydrogen projects, connecting domestic renewable hydrogen supply and demand, bringing capital costs down and leveraging private capital. Given the size of the investment needed, support from the Innovation Fund should be seen as the seed funding for increased private and corporate investments.
  4. Reducing administrative burdens and costs thanks to short, lean, and transparent procedures.

The new auction mechanism will expand the portfolio of support mechanisms that the Innovation Fund currently provides through grants, project development assistance, and other blended financial instruments. It is also expected to enable a faster rollout of innovative technologies needed for the green transition, especially in hard-to-abate sectors.

Background

The Innovation Fund is one of the world’s largest funding programmes for commercialising and deploying net-zero and innovative technologies. It is one of the key tools of the Green Deal Industrial Plan. Financed by revenues from the auctioning of allowances from the EU Emissions Trading System (ETS), it aims to help businesses invest in clean energy and bring to market technologies that can decarbonise European industry while fostering competitiveness.

In March 2023, the Commission presented a new plan to stimulate and support investments in renewable hydrogen production through the European Hydrogen Bank (EHB). This initiative aims to accelerate investment and bridge the investment gap for the EU to reach its ambitious REPowerEU targets.

The EHB is organised around four pillars:

  • supporting the creation of a domestic market of renewable hydrogen
  • supporting international imports into the EU
  • promoting transparency and coordination on market developments
  • streamlining existing financial instruments.

Source: European Commission