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BMW Group to Open Cell Manufacturing Competence Centre This Autumn

Photo-Ilustration: BMW Group

The BMW Group will open its Cell Manufacturing Competence Centre (CCMC) in the autumn. With the immission control approval procedure now completed, the necessary conditions are in place for commissioning of near-standard production of lithium-ion battery cells at the competence centre in Parsdorf, outside of Munich. In an area spanning around 15,000 square metres, the BMW Group will demonstrate industrial feasibility of future generations of high-performance battery cells. The pilot line at the competence centre will make it possible to analyse and fully understand cell value creation processes. This will enable future suppliers to produce cells to the BMW Group’s own specifications and thereby further optimise battery cell production with regard to quality, output and costs. The company is currently ruling out the option of establishing its own large-scale battery cell production.

Markus Fallböhmer, head of Production Engines, E-Drives at the BMW Group: “The Cell Manufacturing Competence Centre in Parsdorf is the next logical step towards penetrating all aspects of the battery cell value chain. Following successful implementation of the Battery Cell Competence Centre (BCCC), we are now focusing on the production processes. We are validating the manufacturability of lithium-ion battery cells for large-scale standard production, with regard to quality, efficiency and costs.”

Photo-Ilustration: BMW Group

Staggered production start for pilot line from autumn 2022

Investment in the initial development phase for the Cell Manufacturing Competence Centre totals around 170 million euros. About 80 employees will work at the Parsdorf location. The German Federal Ministry of Economic Affairs and the Bavarian Ministry of Economic Affairs, Regional Development and Energy are supporting the project within the framework of the European funding process IPCEI (Important Projects of Common European Interest).

Due to the complex technologies involved, battery cell production will be commissioned in stages, with production due to start at the CMCC in the autumn. In the initial phase of the ramp-up, the systems for electrode production will be installed and run in. During this stage, raw materials, such as graphite and nickel oxides for battery electrodes, are metered and mixed. This is followed by coating of the metal foils and final compression.

In the second phase, the systems for subsequent cell assembly and formation will be installed. In this step, the electrodes are processed with the other sub-components to create battery cells and are formed and checked for quality. The entire ramp-up process will take about a year. Over the course of the following year, near-standard battery cell production at the competence centre will transition to regular operation.

Cell manufacturing expertise for Neue Klasse

Photo-Ilustration: BMW Group

In Parsdorf, work will also focus on innovative production processes and systems that can be used in standard production. The BMW Group will produce battery cell samples at this site for the next generation of battery technology for use in the Neue Klasse. The Neue Klasse represents a major technological leap for the company in electric drive systems. The aim is to significantly increase the energy density of the next generation of lithium-ion cells and, at the same time, reduce costs from the use of materials and production. The CMCC will make an important contribution to this. Operations in Parsdorf will therefore rely on electricity produced using renewable energy, including from photovoltaic systems on the roof of the building. Parking spaces in the garage are also equipped with charging infrastructure.

Markus Fallböhmer, head of Production Engines, E-Drives at the BMW Group: “The CMCC will enable us to round out our know-how throughout the value chain, from battery cell development to production of modules and powertrain components, up to and including installation of fully-assembled high-voltage batteries at our vehicle plants. Like the BCCC in the field of cell research, near-standard production in Parsdorf will create an authority in battery cell production. This means BMW Group experts will be able to discuss topics with cell manufacturers at the same eye level and optimise processes and technologies.”

Complete view of battery value chain

The BMW Group sources battery cells from leading cell manufacturers. The remaining value creation, i.e. cell preparation, and production of modules and high-voltage batteries, takes place at the automotive manufacturer. Electric powertrain components are manufactured at multiple locations across the BMW Group production network. For example, high-voltage batteries, battery modules and components are produced in Germany, at Plants Dingolfing, Regensburg and Leipzig. Other electric powertrain components come from Plant Spartanburg in the US and the BMW Brilliance Automotive joint venture in China.

Source: BMW Group

Landmark EU Solar Strategy SolarPower Europe Response

Foto-ilustracija: Unsplash (Samyag Shah)
Photo-illustration: Unsplash (Andreas Gucklhorn)

A new dawn for European solar as the European Commission substantially increases 2030 solar targets to 740 GWdc, recognising solar’s central role in delivering for Europe’s security, economic, and climate goals.

As part of package of announcements, the European Commission proposes a Rooftop Initiative, an Industry Alliance, and a Skills Partnership for EU solar. The EU draft renewable target for 2030 is increased to 45 per cent, coming alongside guidance to accelerate project permitting in EU member states.

Today the European Commission has launched the landmark EU Solar Strategy. In light of the war in Ukraine, and the ensuing impact on energy security, as well as record energy prices, the Strategy comes months ahead of its initially foreseen summer publication.

“…We are increasing the 2030 target for EU renewable energy from 40 per cent to 45 per cent. And we come with a host of actions to scale up and speed up the clean energy transition. For example, we are proposing to speed up permitting procedures for renewables and associated infrastructure like grids. We are proposing a solar rooftop obligation for commercial and public buildings by 2025 and for new residential buildings by 2029. This is ambitious but realistic..”, said European Commission President, Ursula von der Leyen.

“By 2030 the share of wind and solar energy in power production capacities should double from the current level of 33 per cent to 67 per cent and by then solar energy will also be the largest electricity source in the EU with more than half coming from rooftops”, said EU Energy Commissioner Kadri Simson at a subsequent press conference.

The unprecedented EU Solar Strategy sets out a 592 GWac target for EU solar by 2030 – equivalent to 740 GWdc, the unit preferred by industry. This target is higher than SolarPower Europe Global Market Outlook business-as-usual projections of 672 GWdc by the end of the decade. From initial Fit for 55 package proposals that translated into 420 GWac of solar, today’s new 592 GWac goal increases EU solar ambition by 41 per cent.

Photo-illustration: Unsplash (Sungrow Emea)

While the European Commission steps up solar ambition, a new proposed amendment to the Renewable Energy Directive, sees the Commission step up renewable ambition as a whole. The draft amendment includes a newly proposed 45 per cent renewable target for 2030, in line with SolarPower Europe’s ‘Yes to 45 per cent RES’ campaign.

“Today is a watershed moment for EU solar, the continent’s energy security, and European climate commitments. The new EU Solar Strategy 740 GWdc target brings us that much closer to the Terawatt age of European solar. Along with a 45 per cent renewable target, solar and wind are more empowered than ever to shield citizens from high energy prices. The European solar sector is ready to scale up and deliver on the ambition set out today”, said Walburga Hemetsberger, CEO of SolarPower Europe.

Source: SolarPower Europe

Four Key Climate Change Indicators Break Records in 2021

Photo-illustration: Pixabay
Photo-illustration: Pixabay (Bob Blob)

Four key climate change indicators – greenhouse gas concentrations, sea level rise, ocean heat and ocean acidification – set new records in 2021. This is yet another clear sign that human activities are causing planetary scale changes on land, in the ocean, and in the atmosphere, with harmful and long-lasting ramifications for sustainable development and ecosystems, according to the World Meteorological Organization (WMO).

Extreme weather – the day-to-day “face” of climate change – led to hundreds of billions of dollars in economic losses and wreaked a heavy toll on human lives and well-being and triggered shocks for food and water security and displacement that have accentuated in 2022.

The WMO State of the Global Climate in 2021 report confirmed that the past seven years have been the warmest seven years on record. 2021 was “only” one of the seven warmest because of a La Niña event at the start and end of the year. This had a temporary cooling effect but did not reverse the overall trend of rising temperatures. The average global temperature in 2021 was about 1.11 (± 0.13) °C above the pre-industrial level.

Criticizing “the dismal litany of humanity’s failure to tackle climate disruption,” United Nations Secretary-General António Guterres used the publication of the WMO flagship report to call for urgent action to grab the “low-hanging fruit” of transforming energy systems away from the “dead end” of fossil fuels to renewable energy.

In a video message, Mr Guterres proposed five critical actions to jump-start the renewable energy transition. They include greater access to renewable energy technology and supplies, a tripling of private and public investments in renewables and an end to subsidies on fossil fuels which amount to roughly $11 million per minute.

“Renewables are the only path to real energy security, stable power prices and sustainable employment opportunities. If we act together, the renewable energy transformation can be the peace project of the 21st century,” said Mr Guterres.

The world must act in this decade to prevent ever worsening climate impacts and to keep temperature increase to below 1.5°C above pre-industrial levels, he said.

“It is just a matter of time before we see another warmest year on record,” said WMO Secretary-General Prof. Petteri Taalas. “Our climate is changing before our eyes. The heat trapped by human-induced greenhouse gases will warm the planet for many generations to come. Sea level rise, ocean heat and acidification will continue for hundreds of years unless means to remove carbon from the atmosphere are invented. Some glaciers have reached the point of no return and this will have long-term repercussions in a world in which more than 2 billion people already experience water stress.”

Photo-illustration: Pixabay

“Extreme weather has the most immediate impact on our daily lives. Years of investment in disaster preparedness means that we are better at saving lives, though economic losses are soaring. But much more needs to be done, as we are seeing with the drought emergency unfolding in the Horn of Africa, the recent deadly flooding in South Africa and the extreme heat in India and Pakistan. Early Warning Systems are critically required for climate adaptation, and yet these are only available in less than half of WMO’s Members. We are committed to making early warnings reach everyone in the next five years, as requested by the United Nations Secretary-General Antonio Guterres,” said Prof. Taalas.

The WMO State of the Global Climate report complements the IPCC Sixth Assessment report, which includes data up to 2019. The new WMO report is accompanied by a story map and provides information and practical examples for policy-makers on how the climate change indicators outlined in the IPCC reports played out during the recent years globally and how the associated implications on extremes have been felt at national and  regional level in 2021.

The WMO State of the Global Climate report, which will be used as an official document for the UN Climate Change negotiations known as COP27 to take place in Egypt later this year.

Source: WMO

USD 43 Million Boost for Developing Countries’ Efforts to Reverse Species Loss

Photo-illustration: Pixabay
Photo-illustration: Pixabay

With global biodiversity loss at dangerous levels, 139 countries have received a lifeline to fast-track efforts to conserve, protect and restore species and ecosystems as soon as a new global accord currently under negotiation is approved. The new financing from the Global Environment Facility (GEF), totaling USD 43 million, will give developing countries the means to quickly put the anticipated Post-2020 Global Biodiversity Framework into practice and make headway towards the goal of halting and reversing species loss this decade.

Supported with technical expertise from the UN Development Programme (UNDP) and UN Environment Programme (UNEP), the participating countries will be eligible for new grants of USD 300,000 for work to analyse and align their national policies, targets, finance and monitoring systems to take effective action on global threats to biodiversity.

“As we celebrate the International Day for Biological Diversity, this commitment shows that the world is united in recognizing the urgent need to end the destruction of nature and the loss of the services it provides,” Elizabeth Mrema, Executive Secretary of the Convention on Biological Diversity said. “This early action will prepare Parties to mobilise for the action that all sectors of society will take to make these aspirations a reality in the 10 years ahead.”

The Post-2020 Global Biodiversity Framework, a ten-year plan to halt the increase in the rate of extinctions and bring 30 percent of land and sea areas under protection, is expected to be agreed by the 196 Parties to the Convention on Biological Diversity when they meet in Kunming later this year.

Carlos Manuel Rodriguez, CEO and Chairperson of the GEF said it was critically important for all countries to be ready to act quickly once the new framework is approved.

“Setting our aspirations is only a first step, and this coming decade requires us to sprint,” Rodriguez said. “Recognizing the intense pressures on developing countries as well as their unprecedented commitment to change the trajectory of biodiversity loss, the GEF is making these Early Action Grants available even before the new global accord is agreed. Countries can use this “fast track” financial approach to update their biodiversity strategies and build capacities to deliver in the GBF. We stand ready to continue to help stewards of globally-important biodiversity elevate nature in their planning and quickly scale up efforts that together can turn international goals into reality.”

“The Global Biodiversity Framework represents a critical opportunity to set our planet on a new course,” UNEP Executive Director Inger Andersen said. “But the global pandemic has left us with no time to waste. This joint initiative to accelerate preparedness by national actors shows that together, we are ready to put nature at the heart of decision-making about our shared future.”

“We need to create a planetary safety net by putting nature at the heart of our global, national and local economies and development frameworks. Nature underpins half the world’s jobs and livelihoods, is the foundation for national food and water security, and is essential for tackling our climate crisis. Investing in early actions on nature is a triple win for people and the planet,” stated UNDP Administrator Achim Steiner.

The Post-2020 Global Biodiversity Framework is currently in its final negotiation stages, with the fourth and final meeting of the Open-Ended Working Group on the Framework to be held from 21 to 26 June in Nairobi, Kenya.

Source: UNEP

EBRD, EU and GIZ Support Digitalisation of SMEs in Bosnia and Herzegovina

Photo-illustration: Pixabay
Photo-illustration: Unsplash (Scott Graham)

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up support for small and medium-sized businesses (SMEs) in Bosnia and Herzegovina by launching the Go Digital in Bosnia and Herzegovina programme. The programme was launched today with an event held in Sarajevo at Greenpark by Symphony, one of the most successful IT companies in Bosnia and Herzegovina.

The new programme aims to help SMEs invest in the digitalisation of their businesses, alongside other investments to improve productivity, operational efficiency and resilience.

“SMEs will be able to apply for funds to invest in hardware and software for various digital transformation projects,” says Manuela Naessl, EBRD Head of Office for Bosnia and Herzegovina. 

“These investments can be standalone or in tandem with other crucial investments in automation or machinery that enhance environmental protection and product quality. The aim is to boost the digital transformation of SMEs and make them more competitive in EU markets and compliant with the standards required by EU Directives.”

The aim of the programme is to render SMEs more productive and foster environmental sustainability, as at least 60 percent of the loan proceeds will be used to finance investments in green technologies. In the digital space, the programme will support projects in the area of digital communication, information and IT security, digital company management, and digital production processes and services.

The Head of the EU Delegation and EU Special Representative in Bosnia and Herzegovina Johann Sattler underlined that the ‘EU4SMEs’ Programme is part of the EU’s assistance to support the recovery from the Covid-19 pandemic and the transition to a future-oriented economy. “SMEs are a key driver behind economic growth and development, and support for digitalisation will help businesses to be more competitive in local and international markets. The EU’s current IPA assistance to support the green and digital transition amounts to some EUR 50 million, and target SMEs in particular. SMEs need to make full use of innovative technologies, skills and services, not only to grow on a more sustainable basis, but also to survive in the economy of the future”. 

The first element of the programme will be a specialised credit line provided by the EBRD in cooperation with local financial institutions. The EU will provide grant incentives worth up to 15 percent of the total loan amount to make SME investments in digitalisation, automation, competitiveness and green technologies more affordable.

Go Digital in Bosnia and Herzegovina will also offer SMEs access to tailor-made advisory services and training courses to help them better understand the opportunities afforded by digitalisation. This know-how will help them find the right approach and digital transformation investments for their situation.

Manuela Naessl added: “Reaping the benefits of digitalisation of our economies and business processes is important for companies in Bosnia and Herzegovina, which are competing locally and in the international markets. Working with local commercial banks, these competitiveness credit lines will enable SMEs to obtain tailor-made financing and advice for the digitalisation and automation of their businesses.”

The programme will be accompanied by activities from Germany’s Gesellschaft für Internationale Zusammenarbeit (GIZ), which will help to build an ecosystem for digitalisation, automation and innovation in Bosnia and Herzegovina, including digital innovation hubs, in line with EU best practice.

Eva Naeher, Programme Director at GIZ, said: “Digital Innovation Hubs are an important concept in providing support for digitalisation and innovation measures in SMEs. The services provided can help SMEs to improve their products, processes and structures and may even open up new markets. This can happen via technology transfer, training and consulting sessions on dedicated topics. Furthermore, exchanges and networking between hubs and interested businesses and stakeholders will further open up new opportunities and create an enabling ecosystem, which we are happy to support with our co-financed project, EU4DigitalSME.”

The new Go Digital in Bosnia and Herzegovina programme contributes directly to the European Commission’s Digital Agenda for the Western Balkans, which aims to support the transition of the private sector and help businesses fully secure the benefits of the digital transformation of the economy.

Source: EBRD

EU External Energy Strategy defines Energy Community as Instrument for Ambitious Energy and Climate Policies and Market Reforms

Photo-illustration: Pixabay
Photo-illustration: Pixabay

Published by the European Commission, the new EU External Energy Strategy defines the Energy Community as the framework for promoting ambitious energy and climate policies and market reforms. The Strategy is part of the REPowerEU Plan that aims to end the EU’s dependence on Russian fossil fuels and tackling the climate crisis and sets out how the EU will work together with its neighbours.

The Strategy recognizes the Energy Community’s role in supporting Ukraine in the wake of the Russian aggression including the procurement of emergency items via the Ukraine Energy Support Fund and supporting reforms for the future full integration of Ukraine’s energy market with the EU.

The European Commission announced the following key actions:

– take advantage of the Energy Community framework to encourage ambitious energy and climate targets and market reforms, as well as to boost renewables and energy efficiency;

– support the repair and reconstruction of energy infrastructure in Ukraine;

– facilitate the reverse flow of gas to Ukraine via the Slovak Republic, Hungary and Poland and to Moldova and Ukraine via Romania (Trans Balkan pipeline);

– invite Ukraine, Moldova, Georgia and the Western Balkan countries to participate in the EU’s voluntary gas purchasing scheme;

– accelerate the domestic reforms and energy flagships of the Economic and Investment Plans for the Western Balkans and Eastern Partnership, adjusted to the current situation, to speed up renewables’ deployment, ensure a green energy transition and help reduce dependency on Russian gas;

– launch the REPowerUkraine initiative to ensure energy supply and rebuilding the Ukrainian energy sector after the war.

Source: Energy Community

REPowerEU: A Plan to Rapidly Reduce Dependence on Russian Fossil Fuels and Fast Forward the Green Transition

Foto-ilustracija; Unsplash (Dimitry Anikin)
Photo-illustration: Pixabay

The European Commission has presented the REPowerEU Plan, its response to the hardships and global energy market disruption caused by war in Ukraine.

There is a double urgency to transform Europe’s energy system: ending the EU’s dependence on Russian fossil fuels, which are used as an economic and political weapon and cost European taxpayers nearly 100 billion euros per year, and tackling the climate crisis. By acting as a Union, Europe can phase out its dependency on Russian fossil fuels faster.

85 per cent of Europeans believe that the EU should reduce its dependency on Russian gas and oil as soon as possible to support Ukraine. The measures in the REPowerEU Plan can respond to this ambition, through energy savings, diversification of energy supplies, and accelerated roll-out of renewable energy to replace fossil fuels in homes, industry and power generation.

The green transformation will strengthen economic growth, security, and climate action for Europe and partners. The Recovery and Resilience Facility (RRF) is at the heart of the REPowerEU Plan, supporting coordinated planning and financing of cross-border and national infrastructure as well as energy projects and reforms.

The Commission proposes to make targeted amendments to the RRF Regulation to integrate dedicated REPowerEU chapters in Member States’ existing recovery and resilience plans (RRPs), in addition to the large number of relevant reforms and investments which are already in the RRPs. The country-specific recommendations in the 2022 European Semester cycle will feed into this process.

Read the full article HERE.

Source: European Commission

Who’s Afraid of Energy Crisis

Foto-ilustracija: Pixabay
Photo: Courtesy of Nikola Grubor

The prices of fossil fuels are not standing still yet on the world market, so the kilowatts obtained from them are very expensive. It is clear that for a stable future, we need renewable energy sources (RES) that will make the current energy crisis and excessive air pollution things of the past. In addition, RES brings young people the opportunity to be part of an ever-evolving industry, to constantly adopt new technologies and find secure, well-paid jobs. Therefore, our interlocutor is a young engineer Nikola Grubor, who found his job and a group of like-minded people in the CEEFOR company.

CEEFOR has been designing solar power plants for more than ten years and helping its clients reduce electricity consumption, and Grubor and his team are responsible for some of the largest solar power plants in our area. We talked to the young engineer about his journey into the world of green kilowatts and young people’s growing interest in entering this industry.

We also referred to the energy crisis, and Grubor spoke about the reasons why the industry is increasingly turning to solar energy, as well as the recently adopted Law on the Use of RES, which can bring energy stability and financial benefits to Serbian citizens.

EP: We are witnessing an increase in the price of conventional energy sources, and thus electricity worldwide. Can the citizens of Serbia prevent the energy crisis with the help of renewable energy sources?

Nikola Grubor: The large rise in electricity prices, caused by increased energy demand after the opening of large economies, then reduced production from wind farms in northern Europe, as well as problems with Russian gas, is a major blow to our industry. Although citizens did not feel the effects of the energy crisis, as the price of electricity has changed only for industry, the question is how sustainable the current situation is. After major accidents at TENT and the state’s inability to provide energy for its own needs, any additional installed capacity from renewable sources is a relief, both for the state that will import less energy and for consumers who will significantly reduce electricity bills at times when market prices are at an all-time high. I would like to mention that the energy transition should be approached responsibly, and we should not rush into the immediate shutdown of conventional power plants, as the consequences of irresponsible integration of renewable sources into the system could be incalculable.

EP: Last year was marked by the adoption of several laws in the field of mining and energy, one of which relates to the use of renewable energy sources. Can you tell us which novelties were introduced by this law and what they will bring to Serbia’s citizens?

Nikola Grubor: The long-awaited law passed at the end of March last year introduced a few innovations that are the basis for large investments in the development of solar power plants and wind farms, increasing the share of renewable energy sources in our system and reduce emissions. With the possibility of obtaining so-called market premiums through auctions (they are a supplement to the market price of electricity delivered to the market), the law allows citizens and companies to gain the status of buyer-producer (so-called prosumer) through a simplified procedure lasting a few months. The prosumer has the right to produce electricity for his consumption, but he can also deliver any surplus to the transmission or distribution system.

EP: How many projects has your company implemented so far? Have factors such as the new Law on RES, higher electricity prices and the need to reduce greenhouse gas emissions contributed to the increase in workload?

Nikola Grubor: Although the increased volume of work was expected after adopting the new law, and the ensuing energy crisis hit everyone. The industry, which will not be able to keep up with such a rise in prices, is forced to turn to solutions such as solar power plants. Prior to the price increase, the projects were investments that were repaid within six to seven years, while now, it takes four to five years to return on investment. As for the projects of company, many of them have already been realized or are approaching their realization. Many projects (measured in tens of megawatts) are in preparation, which is a good indicator that large investors have recognized who is the true leader in the field of renewable sources.

EP: Being part of a growing industry, such as renewable energy, certainly carries a number of challenges. How often are employees required to learn and adopt new technologies?

Nikola Grubor: As mentioned, the challenges are numerous. Manufacturers of solar system components are improving their products every day to make the systems better and more efficient so that they can crystallize as leaders in their fields in the world. Although fundamentally similar, let’s compare projects from a few years ago with today’s. We can see significant differences, which is the best indicator of how vital everyday learning and adoption of new technologies is.

EP: Can you single out one or more projects that were specific and why were they different? How did you solve the challenges you encountered while working on it?

Nikola Grubor: Each project is specific and different from the previous one, whether it is a 50 kW or 10 MW power plant. Every step of the project, starting from the original idea, solution, the whole correspondence with the relevant institutions, and implementation represents a kind of challenge that is easily solved with a quality team of people that the company CEEFOR has.

Photo-illustration: Unsplash (Science In Hd)

EP: Which project (or projects) would you single out as the most important?

Nikola Grubor: At this moment, I would like to single out the solar power plant in Sremska Mitrovica with a capacity of 3 MWp*, which will be built on the roof of the building, as well as the power plant 8.4 MWp in Indjija, which will be the largest power plant built in our country.

EP: Why should young engineers enter this industry?

Nikola Grubor: There are several reasons. There is already a shortage of engineers who would meet the need for professional staff in this field (I would note that only hired five new engineers in 2021). With the development of electromobility and electricity storage technologies, the need for professional staff will even increase. In addition to working with new technologies, the realization that each project is a positive step towards reducing emissions and preserving the environment is only an additional motive for any individual willing to try in this industry.

Interviewed by: Milena Maglovski

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

Energy Community Parliamentary Plenum Debates Energy Security Amidst Russian invasion of Ukraine

Foto-ilustracija: Unsplash (Quinten de Graaf)
Photo-illustration: Pixabay

Parliamentarians of the Energy Community Contracting Parties and the European Parliament met in Brussels under the umbrella of the Energy Community Parliamentary Plenum. In the presence of EU Commissioner for Energy Kadri Simson, Members of Parliament discussed how to strengthen Europe’s energy security following Russia’s invasion of Ukraine. Support for the energy sector of Moldova and Ukraine and enhanced European energy market integration were also discussed.   

The Chairman of the Committee on Industry, Research and Energy of the European Parliament, Cristian-Silviu Buşoi, said: “As the war in Ukraine reshapes EU energy policy, we must look for joint solutions to ensure affordable, sustainable and secure energy for European citizens. Energy market integration with our neighbours via the Energy Community is critical for strengthening the EU’s energy security and delivering on the objectives of the European Green Deal.”

The Chairman of the Committee on Energy, Housing and Utilities Services of the Verkhovna Rada of Ukraine and Chairman of the Energy Community Parliamentary Plenum 2022, Andriy Gerus, underlined: “Ukraine is grateful to its EU and Energy Community partners for having come to its aid in these tragic times. The war is a dramatic wakeup call for our shared energy security. Ending dependence on Russian fossil fuels and fast-tracking the clean energy transition are critical to strengthen the energy sector.”

Members of Parliament also exchanged views on accelerating the implementation of the European Green Deal to further the uptake of energy from renewable sources and advance Europe’s energy independence. It was underlined that the Energy Community is a key instrument of EU external energy policy.  

The Energy Community Parliamentary Plenum brings together representatives from each national parliament of the Contracting Parties (Albania, Bosnia and Herzegovina, Kosovo*, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine) and representatives of the European Parliament. The objective of the Energy Community Parliamentary Plenum is to address shared energy challenges and support the establishment of a European energy market which works to the benefit of citizens.

Source: Energy Community

Berlin Pushes For a 60 Euros Minimum Price on EU Carbon Markets

Foto-ilustracija: Unsplash (Ella Ivanescu)
Photo-illustration: Pixabay

Discounting allegations of speculation on the EU carbon market, Berlin is throwing its weight behind a minimum price of 60 euros per ton of CO2, saying it will ensure this through national measures if the EU does not take action.

After prices on the EU carbon market soared in 2021, EU capitals are now seizing the chance for reform as discussions in Brussels continue over the proposed revision of the EU’s Emissions Trading Scheme (ETS) directive.

Many governments are unhappy with the rapid rise of carbon prices, which they accuse of pushing up the cost of electricity.

Among the critics, Poland is pushing for “a profound reform of the ETS system, which will take into account the current situation on the energy market.”

Polish Prime Minister Mateusz Morawiecki even spoke of a “speculative bubble,” a position supported by Spain, Hungary and other Eastern EU governments who fear a voter backlash in the face of rising prices.

Minimum price

Undeterred by critics, the German government, on the other hand, wants to ensure prices are kept high enough to encourage private investments in low-carbon technologies.

“We certainly support the beefing up of the ETS system,” said Patrick Graichen, Germany’s climate state secretary, during a meeting of EU environment ministers in December.

To the German government, a price of around 60 euros per ton appears as an optimal middle ground between ambitious climate action and social acceptance. Shortly after it came to power last year, the new German government made its position on this very clear.

“We want a minimum carbon price across Europe,” Graichen said in December.

In comments to EURACTIV, the ministry for economy and climate action now reiterated Germany’s continued support for “an ambitious reform – including a minimum price” for EU emission allowances.

“If the European Union does not agree on a minimum price, the German government will decide on national measures to ensure that the CO2 price does not fall below 60 euros/tCO2 in the long term,” a ministry spokesperson said.

For Berlin, the top priority is to ensure a minimum price signal to drive decarbonization decisions by the private sector, a position supported by energy utilities and retail companies.

“For more investment security, Germany and the EU need immediate further development of emissions trading with accompanying measures for an investment-relevant CO2 price signal,” reads a 2017 letter by an industry coalition of 52 large companies, including Aldi, Puma and Siemens.

More recently 2021 survey conducted by VKU, the association of local public utilities, found that 69.4 per cent of local utilities saw a lack of planning and investment security as the biggest barrier to Germany’s Energiewende. 56.3 per cent of members cited a reform of carbon pricing as their top priority for the German government.

Source: EURACTIV.com

Why we Need Global Cooperation on Decarbonizing Cities and Real Estate

Foto-ilustracija: Pixabay
Foto-ilustracija: Pixabay

In an increasingly challenging and volatile world, the urgent need to decarbonize real estate remains a constant.

There are no quick fixes that will suddenly transform today’s energy inefficient buildings into models of sustainable construction in the coming decades. It will take time, investment and expertise to retrofit the majority of buildings across urban areas.

Yet given that more than 60 percent of carbon emissions within cities typically come from buildings, a concerted effort is needed sooner rather than later.

It’s why longer-term commitments for a net-zero future are now fueling shorter-term pressures to start formulating action plans that will deliver steady progress.

Around the world, city governments are often leading the charge. From New York City to Paris to Singapore, many cities now have a raft of targets and actions covering new and existing commercial real estate.

While this momentum is to be applauded, it brings with it issues of its own.

JLL’s soon-to-be-published report “Decarbonizing Cities and Real Estate” reveals a rapidly evolving patchwork of regulations and metrics across 30 major global cities. With little harmonization or integration, it makes for a complex global picture.

Each city is drawing on a unique blend of tools to decarbonize buildings – from building codes, reporting and disclosure frameworks and energy audits, to minimum building standards, incentives and accelerators.

As a result, cross-border real estate investors and end-users are struggling to navigate the global net zero carbon (NZC) regulatory landscape to ensure their portfolios are future-proofed.

Cities to watch

Foto ilustracija: Pixabay

Some cities are clear frontrunners in envisaging and implementing innovative plans. The familiar roll call of trailblazing “sustainable cities”, such as Copenhagen (with its Energy Leap initiative) and Vancouver (with its Zero Emissions Building Plan) are ahead once again. They have built up considerable momentum, experience and knowledge, and are hitting the ground running in this important decade of action.

But arguably, the ones to watch are the climate-progressive global gateway cities which are being most strident in their approach to decarbonizing buildings. In Asia, for example, Singapore’s Green Building Masterplan is an ambitious, target-focused roadmap to green its building stock by 2030. Tokyo’s cap-and-trade programme incentivizes building owners to reduce emissions by setting targets and allows parties to sell or purchase credits.

Over in the US, New York City has introduced a wide range of laws covering energy benchmarking, energy audits, emissions standards and building codes. It has also set one of the highest carbon taxes at USD 263 per ton of CO2.

And in Europe, Paris is taking a lead in tackling embodied carbon, with its “Design for Reuse Principles” and its RE2020 regulation which embraces the entire life cycle carbon impact. London is setting the pace on biodiversity legislation, with requirements for major developments to create a ‘biodiversity net gain’ plan.

Collaborative models for the future

As best practice emerges in the trailblazing and climate-progressive cities, we’re reaching an inflection point where governments and the real estate industry need to work together on greater harmonization and consistency of policy, regulation and reporting.

We need to scale best practice globally. Many cities are only just starting on their decarbonization journey and can learn much from the successes, and the mistakes, of the leading cities. But far too often, they’re going down their own unique route.

Foto-ilustracija: Pixabay

Partnerships at all levels will be crucial to pool resources and knowledge, to share best practice, to educate and accelerate, to help scale technology, and to create the right balance between regulation, incentivization, coercion and advocacy. As decarbonization ramps up, we must bring with us the long tail of smaller landlords, investors and occupiers who often lack the knowledge and resources to take action independently.

City governments have a key role to play in creating the infrastructure, frameworks, laws and incentives for all stakeholders to be successful. In particular, they need to drive the greening of local energy grids, over which the real estate industry has little direct control.

And while decarbonization is the end goal, it must be pursued in tandem with social equity, affordability, biodiversity and climate adaptation.

If there’s one common thread currently linking all city governments, it’s the understanding that it’s time for urgent action. While the global regulatory landscape is confusing, as last year’s COP26 highlighted, there’s a wide recognition that emissions from buildings matter and there is strong appetite to build consistency across regulations, reporting and measurement standards.

Net-zero targets will simply not be achievable without a proactive and collaborative programme to significantly reduce embodied and operational carbon emissions from buildings.

By working together, learning from other cities, and sharing best practice, city governments will be better able to bridge the gap between intent and action and make this vital decade count as a true tipping point in creating a more sustainable future.

Source: World Economic Forum

Facing Floods and Landslides, Afghans Turn to Nature for Protection

Photo-illustration: Unsplash (Ej Wolfson)
Photo-illustration: Unsplash (Sohaib Ghyasi)

Amir Beg Khusrawi still has vivid memories of a flash flood that swept through his village in Afghanistan’s rugged northeast a decade ago.

“[It] destroyed around 20 houses, claimed livestock, and damaged our agricultural lands so that even now we are not able to use them,” says Khusrawi, 61.

His experience is not unique. In remote settlements across Afghanistan’s Pamir Mountains, deep in the heart of Central Asia, locals have long struggled with landslides and floods.

In recent years, though, both have become worse as flagging rainfall, worsened by climate change, and both overgrazing and fuelwood collection have stripped the land of the greenery that once acted as a barrier against the elements.

For many, the combination of floods, landslides and persistent drought has compounded the challenges of living in Afghanistan.

In some parts of the Pamirs, though, slopes are stabilizing.

That includes the Deh-shahr catchment, a 60 km2 swath of Afghanistan’s rugged Badakhshan province that is home to 3,000 people.

There, local residents, with support from the United Nations Environment Programme (UNEP) and the Aga Khan Foundation, have replanted native trees and shrubs on steep slopes, constructed earthen works to slow water runoff, built small dams to control gullies, and renovated  leak-prone drainage canals.

The effort, funded by the European Union, has helped buffer communities from floods,  landslides and avalanches by restoring vegetation cover and improving soil stability.

“Often, the best solutions for problems like floods and landslides are a hybrid combination of natural and built infrastructure,” said Hassan Partow, a Programme Manager at UNEP’s Disasters and Conflicts Branch. “They are cost-effective and readily available, which is crucial in a country like Afghanistan.”

Source: UNEP

EBRD and Donors Help Reboot Small Businesses in North Macedonia

Photo-illustration: Pixabay (Dormeur 74)
Photo-illustration: Pixabay (WohnblogAt)

The European Bank for Reconstruction and Development (EBRD) is stepping up cooperation with Komercijalna Banka in North Macedonia by extending a new EUR 2 million credit line. The proceeds will be used to help small and medium-sized enterprises (SMEs) in the country to reboot their businesses after the disruptions caused by the Covid-19 pandemic.

The loan was signed on 12 May during the EBRD’s Annual Meeting, which took place in Marrakesh, Morocco.

Francis Malige, Managing Director of the EBRD’s Financial Institutions Group, said: “We are very pleased that again together with Komercijalna Banka Skopje we can extend further support for local SMEs. The funds will help small businesses to invest in modern technologies and to recover from the negative effects caused by the pandemic.”

Maja Stevkova Sterieva Ph.D., Chief Finance Officer and Member of the Board of Directors of Komercijalna Banka AD Skopje, said: “Continuing with our efforts to support the national economy in this post-pandemic period, we are very glad that we can support SMEs with EBRD’s credit line of EUR 2 million. We are especially pleased that the funds from the credit line are intended primarily for investments in green energy and competitiveness, which is in line with our commitment to support and contribute to the development of sustainable businesses.”

Komercijalna Banka will on-lend the funds to small firms, enabling them to invest in better-performing green technologies and to improve their working standards and processes. These investments should make local SMEs more compliant with European Union and international standards, therefore boosting their competitiveness in both domestic and foreign markets.

The SMEs will also benefit from grant incentives worth up to 15 percent of the loan amount. The grants will be funded by Luxembourg, Norway, and the United States of America, and other donors are expected to participate.

The credit line is part of the EBRD’s new SME Reboot Programme that supports small firms’ recovery from the pandemic-induced slowdown. Komercijalna Banka Skopje is the first bank in the country to join the programme, which encourages SMEs to go beyond business as usual and invest in modern and sustainable technologies. Around 70 percent of programme funding will be allocated to investments in energy-saving and green technologies, while the remainder will support investments in automation, increased productivity, product quality, and safety.

Komercijalna Banka is a long-standing partner of the EBRD in its work supporting SMEs in North Macedonia; it has already extended over  EUR 7 million to local SMEs under the SME Competitiveness Support Programme.

The EBRD is a major institutional investor in North Macedonia. To date, it has invested more than EUR 2.2 billion in 159 projects there. Supporting green energy is a priority for the Bank, as it addresses one of the country’s most pressing challenges: decarbonisation of its economy.

Source: EBRD

BMW Group Uses Sustainable Paints Made From Bio-Waste

Photo: BMW Group-Fabian Kirchbauer
Photo: BMW Group-Fabian Kirchbauer

The BMW Group is using innovative technologies in its efforts to improve sustainability and taking advantage of new options to conserve resources and reduce emissions from painting bodywork. The BMW Group is the first automotive manufacturer worldwide to use matt paints made from biomass instead of crude oil at its European plants. In addition to this, BMW Group Plants Leipzig and Rosslyn (South Africa) are also using sustainably-produced corrosion protection. Renewable raw materials such as bio-waste or waste from sewage treatment plants serve as the starting material for the paints. The CO2 savings determined in a TÜV-certified process amount to over 15,000 tonnes of CO2 emissions between now and 2030.

“By reducing our use of fossil raw materials, we can conserve natural resources and lower CO2 emissions at the same time. To achieve this, we are increasingly relying on sustainability innovations in our supplier network,” says Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “Innovative paints based on renewable raw materials are an important step in this direction.”

Organic waste replaces fossil resources

BASF’s innovative production process makes it possible to replace petroleum-based precursors, such as naphtha, with renewable raw materials from organic waste, starting in the early stages of paint production. This not only reduces consumption of fossil resources, but also avoids the CO2 emissions associated with the production, transport and processing of crude oil.

The corrosion protection and matt paints used at BMW Group Plants Leipzig and Rosslyn are chemically identical to the paints previously used, with all the same properties as conventionally manufactured body coatings. Since bio-based and conventional coatings are produced on the same line, BASF adopts an externally certified mass balance approach.

The amount of paint purchased by the BMW Group is calculated to be exactly equivalent to the amount of bio-naphtha and bio-methane that would be required for 100-percent petroleum-free production. The sustainable manufacturing process reduces the CO2 emissions from paint production by more than 40 percent. The two BMW Group plants in Leipzig and Rosslyn produce an average of around 250,000 vehicles per year.

Source: BMW Group

Fuel Price, Excise, Strategic Reserves of Oil and Petroleum Products – What Do We Know About It?

Foto-ilustracija: Pixabay
Photo: Courtesy of Tomislav Mićović

Fuel prices plummeted again in February, causing concern in the local market, especially after additional forecasts that the cost of crude oil will continue to rise. Although it is impossible to stay immune to the changes happening in the global market, proving the trend of increasing fuel prices in almost all parts of the world, something can still be done.

To increase the security of motor fuels supply, it is necessary to form strategic state reserves of oil and oil derivatives that will ensure the functioning of society in the event of local, regional, or global disruptions affecting oil and oil derivatives. These are the words of Tomislav Mićović, Secretary-General of the Association of Oil Companies of Serbia.

It sounds very reasonable, contrary to the witty comment of a driver who advises you always to top up the tank for a thousand dinars so as not to feel the price increase. Since there is no place for jokes when talking about important things, we asked Tomislav Mićović what has been done so far to protect the local market from the risks in the supply of oil and oil derivatives.

EP: Increase in excise duties on derivatives in Serbia tells us that we should expect higher fuel prices throughout 2022. What are the predictions?

Tomislav Mićović: Fuel prices in Serbia, as in all countries in the region and Europe, have never been higher in the last ten years than today. To get a clearer picture, when we compare fuel prices in different periods, we should also compare the market conditions relevant to those periods. First, I would like to remind you that Serbia has largely changed its excise taxation policy by introducing the Law on Excise Duties in October 2012. The dynamics of the rapid growth of excise duties were adopted so that by the end of 2016, the total state duties on fuel in Serbia became significantly higher.

Even then, we were worried that we were facing a complex process of adapting national regulations to the Acquis Communautaire, which would substantially raise costs in producing and trading petroleum products. The increase in excise duties on motor fuels, the introduction of fees for the formation of required reserves, fees for improving energy efficiency, fees for fuel labeling, and fees for quality monitoring contributed to the increase in government revenues. On the other hand, due to the growth of state duties, the price of oil derivatives also increased, which slowed down consumption growth, gave impetus to the grey market, and part of the fuel supply consumed in Serbia was redirected to neighboring countries.

The biggest change in the fiscal burden occurred in the trade of LPG, the most environmentally friendly oil derivative, followed by diesel, which drives industry, transport, agriculture, and construction and thus, to a greater or lesser extent, affects almost all products and services. Budget revenues have increased significantly, which is indisputable. Still, it would be good if the competent state authorities analyzed of the possible adverse effects of large fiscal duties on the economy and society in general.

EP: Recent increase in the price of a barrel of oil of $10 in just 10 days was a shocker, but does it always have to mean significantly higher prices at gas stations in Serbia?

Tomislav Mićović: There is no national market, including the Serbian market, that can remain isolated from the changes happening on the global level. To mitigate the drastic increase in the costs for the economy, i.e., the increase in the prices of products and services, each country can adjust excises, VAT, or some taxes, until the energy prices return to an acceptable level. Such measures are being considered in many countries. In the first week of February, a barrel of BRENT, the European reference oil, was sold at prices above $91. Although analysts rarely agree, they now share the opinion that during this year, oil could exceed the price of $100 per barrel, even making the annual average above this level.

Photo-illustration: Unsplash (Kartikay Sharma)

The Government could certainly declare such an increase as a disturbance and react with measures that would prevent a further rise in fuel price. High energy prices could greatly slow down economic growth, much needed in the post-pandemic period, according to most world economists.

EP: When we compare gasoline prices on January 24, 2022, the cost of gasoline in Bosnia and Herzegovina was $1.39, in Northern Macedonia $1.44, and in Serbia $1.63. On that day, diesel price was $1.71 in Serbia, 1.41 in Bosnia and Herzegovina, and $1.3 in Northern Macedonia. How do you comment on that?

Tomislav Mićović: Once you exclude the state duties of each of the countries from the prices listed, you would be surprised to see that the differences in prices between these companies have been close to non-existent. Some difference does exist because not all countries have equal access to sources of oil or oil derivatives, and business conditions and market competition is not the same. The key difference in retail fuel prices arises when adding state duties, which vary greatly from country to country.

Interviewed by: Milica Marković

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

Slovenia’s Largest Solar Power Plant Opens Near Hrastnik

Photo-illustration: Unsplash (Andreas Gücklhorn)
Photo-illustration: Unsplash (Sungrow Emea)

The state-owned power utility HSE launched on Friday a 3.036-megawatt solar power plant in a rehabilitated and closed section of the Prapretno landfill near Hrastnik. The largest facility of the kind in the country, worth EUR 2.5 million, is expected to provide electricity for around 800 households.

A total of 6,748 photovoltaic modules installed at the former brownfield site will produce more than 3 GWh of electricity a year, and the plan is to expand it to a total installed power of 14 megawatts.

HSE said that the launch of the solar power plant in the former coal mining region was an investment in security of electricity supply that followed EU guidelines on reducing carbon emissions.

HTZ, a subsidiary of the coal mine operator Premogovnik Velenje, was hired to supply the equipment and install and launch the power plant.

The opening ceremony was attended by Prime Minister Janez Janša, who noted that Slovenia now had sustainable and green energy sources at its disposal after decades of production of electricity mainly from fossil fuel sources.

He added that the state would give back to regions where coal had been extracted for electricity production by providing funds from the Just Transition Fund.

The prime minister noted that the energy crisis in the aftermath of Russia’s attack on Ukraine made the resources Slovenia had at home more valuable today than in the past, adding that Slovenia needed to continue to build small hydro and solar power plants.

HSE director general Viktor Vračar said that the new installation pursued the objective of secure and reliable electricity supply, adding that international events had forced Slovenia to strategically restructure its energy sector.

The goal is decarbonisation and reduced dependence on foreign energy, and this means investment, he said, adding that the ECB had assessed that EUR 350 billion was needed for this over the next decade.

Hrastnik Mayor Marko Funkl added that the municipality would establish this month an energy cooperative for the “transition from brown to green” that would build the largest cooperative solar power plant in the country.

The 300 KW array will be installed on the roof of a local primary school, Funkl said, adding that “energy is returning to the Zasavje region in green form.”

Source: Total Slovenia New