Ecuador appoints new interim energy minister

Market: Electricity
09/10/24

Ecuador's minister of environment Ines Manzano has been appointed interim minister of energy, replacing Antonio Goncalves, the presidency said today.

Goncalves had been the country's energy minister for three months. He left his position in the middle of a power-supply crisis in the country that started on 23 September with rolling blackouts amid a harsh dry season that hit hydropower generation.

The country is currently scheduling 10-hour blackouts per day.

When Goncalves took office in July, crude production averaged 469,413 b/d. It recovered to 477,601 b/d in August but it fell again to 471,061 b/d in September.

By Alberto Araujo

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12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: UN chief reiterates economic force of transition

12/11/24

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12/11/24

Cop: UN chief reiterates economic force of transition

London, 12 November (Argus) — "Doubling down on fossil fuels is absurd", given that solar and wind power are the cheapest forms of new electricity, UN secretary-general Antonio Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan today. The "economic imperative is clearer and more compelling — with every renewables roll out, every innovation, and every price drop", Guterres added. Global investment in renewables and grids last year overtook the amount spent on fossil fuels for the first time, he noted. "The clean energy revolution is here. No group, no business and no government can stop it," Guterres said. Guterres and Simon Stiell, head of the UNFCCC — the UN's climate body — today both gestured to geopolitical challenges. Cop 29 is focused on climate finance — already a fraught topic — and environmental groups have expressed concern about the impact on climate action of Donald Trump's re-election . The UNFCCC process "is strong, it's robust and it will endure", Stiell said today. Guterres and Stiell also emphasised the financial implications of failing to cut emissions or address climate change. "The climate crisis is fast becoming an economy-killer", Stiell said. "Unless all countries can slash emissions deeply, every country and every household will be hammered even harder than they currently are," he added. The G20 group of countries should lead on emissions reduction, Guterres said. And both he — warning against "a tale of two transitions" — and Stiell called for action on climate finance. Countries must decide at Cop 29 on the next stage of a climate finance goal. Developed countries agreed to deliver $100bn/yr to developing countries over 2020-25, but agreement is yet to be reached on the next iteration. Guterres called for more concessional public finance, higher lending capacity for multilateral development banks (MDBs), greater transparency, and for "tapping innovative sources, particularly levies on shipping, aviation, and fossil fuel extraction. Polluters must pay", he said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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IAEA chief sees ‘good sign’ ahead of Iran visit

12/11/24

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12/11/24

IAEA chief sees ‘good sign’ ahead of Iran visit

Baku, 12 November (Argus) — The director general of the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), said today that he has seen good signs from the new Iranian administration ahead of his visit to the Iranian capital on 13 November. Speaking to reporters in Baku, Rafael Grossi said he and his colleagues at the IAEA are looking forward to what he described as "a very important visit" with the aim of "re-establishing contact" with the Iranian authorities. The visit will be Grossi's first to Iran since Iranian President Masoud Pezeshkian took office in late July, and comes at a time of increased tensions in the Middle East region. Israel's offensive against Gaza-based militia group Hamas that was triggered by the group's deadly 7 October 2023 cross-border attack on Israel has since expanded into Lebanon and, to an extent, drawn Iran into the fray, with Tehran and Tel Aviv having now traded missile strikes twice in recent months. Israel's latest strike in October has raised fears that Iran could respond not only in kind, but also by speeding up its work to enrich uranium and move the country ever closer to possessing weapons-grade nuclear material. This is despite Iranian officials, not least Iran's supreme leader Ayatollah Ali Khamenei, insisting that Iran has no intention of building or possessing nuclear weapons. "We are looking forward to that [meeting]. It's high time we establish or re-establish contact with the government," Grossi said. "We have been preparing for this meeting for quite a long time." Grossi said he saw it as "a good sign" that the new Iranian administration is showing "a disposition to talk." "Of course, we have to give content and meaning to the conversations. But I am encouraged by the fact that we seem to be having a good agenda in front of us." Damage limitation The meeting comes after the IAEA's board of governors in June passed a resolution calling on Iran to step up its co-operation with the agency, and reverse a decision to restrict access to nuclear sites by de-designating inspectors. Tehran at the time rejected that resolution as "politically biased", prompting a swift denial from Grossi , saying that the agency does not adhere to an "anti-Iran policy". Asked today whether Donald Trump's election victory last week could impact relations with Iran, Grossi admitted that while it will "undoubtedly" have an influence, he expected that the incoming administration would work well with the IAEA, as was the case during Trump's first term. "We will adjust to that," Grossi said. A diplomatic source with knowledge of the situation described the ongoing tensions in the Mideast Gulf region as "out of control," and said they are hopeful Grossi's visit to the Iranian capital will help "keep a lid on the situation" and help to find some badly-needed "solutions". If Grossi achieves what he set out to do on this visit, it could lay the groundwork for any co-operation that the agency may have with the new administration around how best to deal with the Iranian nuclear threat, the source said. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Indonesian energy firms reaffirm net zero efforts

12/11/24

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12/11/24

Cop: Indonesian energy firms reaffirm net zero efforts

Singapore, 12 November (Argus) — Major Indonesian energy firms reaffirmed their commitment to decarbonisation at the UN Cop 29 climate summit in Baku, Azerbaijan, but also indicated the challenges they face in achieving targets. Indonesian state-owned utility PLN is in the process of redesigning its national electricity plan and from now until 2040 needs to add around 102GW of additional capacity, the firm's president director Darmawan Prasodjo said yesterday. Out of this, 75pc is to come from renewable energy, 5GW from nuclear power and 22GW from gas. But there is a mismatch between the location of large-scale renewable energy resources such as geothermal and hydropower plants, and demand centres, said Darmawan. Up to 70,000km of transmission lines have to be built to move energy from those resources to the centre of demand, said Darmawan. Additionally, a smart grid is also necessary to deal with intermittency in variable renewable energy sources such as wind and power. But the price tag to develop these transmission lines and smart grid would amount to a whopping $235bn over 2024-40. State-owned energy firm Pertamina has allocated 8pc of its capital investment towards new and renewable energy over 2025-29, said its chief executive officer John Anis, without disclosing the exact amount. The company also identified targets it hopes to achieve by 2029 as part of its low-carbon business growth, such as 60mn kilolitres of biofuels sales, 1.4GW of geothermal capacity and 1.5mn t of CO2 reductions with carbon capture and storage (CCS). The firm also declared support for the zero routine flaring initiative by the World Bank. "Pertamina is one of the most important oil and gas companies in southeast Asia, producing more than 1mn b/d, and is a key factor for the Indonesian economy," said Demetrios Papathanasiou, global director for the World Bank, emphasising the importance of Pertamina's move to develop oil and gas without gas flaring. Companies need to diversify, divest and decarbonise, said Retina Rosabai, director and group chief financial officer of coal firm Indika Energy. To diversify, firms first need to divest, because funding is limited, she said, adding that Indika has divested from coal-related assets, coal contract mining and coal logistics. But there is still much uncertainty over rules and regulations, although Indonesia's new climate envoy Hashim Djojohadikusumo reaffirmed the country's commitment to climate goals, which will raise confidence, Retina said. Hashim is the brother of Indonesian president Prabowo Subianto, who took office last month. Hashim also reiterated that CCS holds huge potential in Indonesia, with an estimated 500 gigatonnes of CO2 storage capacity. Additionally, the country has also verified 575mn t of CO2 for offtake, with some parties already making commitments to purchase various amounts, he said. The government is also finalising the assessment of a further 600mn t of CO2, which is expected to be offered in the next few months, he said. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: US climate envoy says clean energy trends to stay

11/11/24

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11/11/24

Cop: US climate envoy says clean energy trends to stay

Baku, 11 November (Argus) — The upcoming administration of US president-elect Donald Trump cannot reverse investment in clean energy technologies and innovation in the country, US climate advisor John Podesta said today at the UN's Cop 29 climate summit in Azerbaijan. Talking about clean energy — including nuclear energy and the electrification of the automobile sector — Podesta said that trends would not be reversed under a Trump administration, even though the country will be facing new headwinds. Trump's upcoming administration will attempt to reverse US climate policies , including eliminating tax incentives for clean electricity and the related supply chain through the Inflation Reduction Act (IRA), sparking uncertainty about clean energy investment in the country. But Podesta said that Trump will face opposition even from Republican-led districts. Around 57pc of new clean energy jobs created since the IRA are in congressional districts represented by republicans, he said. "Support for clean energy has become bipartisan, many republicans especially governors know all this activity is a good thing for their districts, states and for their economies." A group of 18 republicans this summer said they opposed a "full repeal" of the IRA because of the growth it is delivering to their districts. "It's precisely because the IRA has staying in power,[that] I am confident the US will continue to reduce emissions, benefitting our own country and benefiting the world," he added. "The economics of energy transition have taken over." The White House estimates that more than $265bn in clean energy investment has been announced since the passing of the IRA. The current administration has still work to make sure investment in clean energy continues to flow once the new administration starts, he said. A permitting reform is receiving bipartisan support in the senate, Podesta said, while the government is working on awarding more funds available through the IRA. Around $98bn has been awarded already, which is 88pc of the funds available for the fiscal year. The government is also working against the clock in completing the implementation of the IRA, which has some tax guidance pending regarding tax credits for clean hydrogen investment, among others. Talking about Cop 29, where parties are due to agree on a new finance goal from developed countries to developing countries, Podesta said that the US is "here to work and we are committed to a successful outcome". "We will continue to encourage people to work diligently to come up with a new funding formula", although he noted that the goal needed to be "realistic". Talking about increasing the contributor base for the finance goal — a difficult issue during technical negotiations — he said that economic circumstances have changed since 1992, and that several developing countries including China are already providing climate finance. The long-running issue around contributors partly stems from the list of developed and developing countries used by UN climate body the UNFCCC. It dates back to 1992, when the body was established, and has been a bone of contention for some time for many developed countries, which argue that economic circumstances have changed in that time frame, and that several countries classed as developing — and typically heavy emitters — should now contribute to climate funds. "We think it's time to take account of those contributions through contributions to multilateral development banks and other forms of cooperation... to make sure that developing countries have the financing they need". He said that the US at Cop 29 was also working on outcomes related to energy deployment, including battery storage and power grids. "The outcome document of this Cop will hopefully point the world in the right direction on that," he said. "Donald Trump may put climate action on the back burner, the work to contain climate change is going to continue in the US," he said. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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