Firms partner to export clean electricity to Singapore

Spanish Market: Electricity
20/04/22

Energy infrastructure developer Quantum Power Asia and German solar energy solutions provider Ib Vogt will build solar and battery storage facilities in Indonesia, which could export up to 4 TWh/yr of electricity to Singapore.

Anantara Energy, a joint venture between Singapore-based Quantum and Ib Vogt, aims to develop renewable energy in Indonesia and support Singapore's goal of importing clean energy, the companies said on 19 April. Quantum will provide $5bn to build a 3.5GW solar facility and 12GWh battery storage facility across 4,000 hectares in Indonesia's Riau Islands province. The electricity will be transported to Singapore via an undersea cable.

If approved by Singapore's Energy Market Authority (EMA) as a licensed electricity importer, Anantara's project could be fully commissioned in 2032 and is expected to meet about 8pc of Singapore's electricity needs, the companies said.

About 95pc of Singapore's electricity is currently produced from natural gas. The country has plans to import up to 4GW, or 30pc, of its electricity from low-carbon sources by 2035, as part of its aim to decarbonise its gas-heavy power sector and ensure energy security. The EMA has accordingly issued requests for proposals (RFPs) to supply and import low-carbon electricity. Anantara's project comes in response to the RFPs.

Anantara has also appointed Singapore electricity retailer Union Power as its import and retail partner to deliver clean energy and related services to the residential, industrial and commercial sectors.

The project "will become the largest [photovoltaic] storage system globally to date," said managing director and chief executive officer of Ib Vogt, Simon G Bell, adding that "it will also contribute significantly to Singapore's journey towards carbon neutrality."

EMA in March published a report setting out decarbonisation scenarios for Singapore's power sector. In two out of the three scenarios presented, Singapore relies significantly on electricity imports — possibly up to 60pc of its energy mix — to diversify its energy supply, emphasising the importance of clean electricity imports in Singapore's journey to net zero emissions.

By Prethika Nair

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29/04/25

German participants argue against power zone split

London, 29 April (Argus) — German power market participants have spoken out against dividing the German bidding zone, citing lower market liquidity and investments in renewable energies. The statements come after European transmission system operators (TSOs) association Entso-E yesterday published its bidding zone review (BZR), which concluded that splitting Germany's bidding zone into five would be the most "economically efficient". Germany's four TSOs argued that a bidding zone split would restrict liquidity in the futures market and could increase costs in the balancing market because fewer providers in smaller markets would participate. Renewables operators would probably see lower revenues, which could increase the need for subsidies, the TSOs said. And the economic gains from a split — around 1pc of system costs in 2025 — are not "meaningful". The TSOs also questioned the "suitability" of the study, citing "outdated" data and an "incoherent" analysis period. They highlighted the fact that the study compiled data from 2019, while the implementation of a split would only be possible by 2030, meaning developments in the system — including grid and renewables expansion — were not taken into account. Renewables association BEE agreed, adding that the BZR ignored several "key aspects", such as grid security, market efficiency, stability and the impact on the energy transition. The association highlighted the importance of strong German market liquidity, which enables "functioning" long-term power trading that is "crucial" for all of Europe. Traders' association Energy Traders Germany concurred, stating that a liquid market benefits consumers and businesses, as well as power plant investors. And exchange EEX told Argus that investments in power plants, which rely on "long-term framework conditions", would probably drop if the bidding zone were split. In the event of a split, subsidies and other compensation measures for industrial actors would probably need to be increased, EEX added. "All in all, it would end up being more expensive," the exchange told Argus . And chemical industry association VCI said reorganising the market would open up a "mega construction site" that would drag on for many years and create market uncertainty. A bidding zone split would make industrially strong regions into "high-price zones", energy association BDEW and automotive association VDA said, weakening competitiveness and prosperity. Instead of dividing the bidding zone, the focus should be on accelerated expansion and digitalisation of grids, they argued. The likely-incoming German government has pledged to stick to a single bidding zone , while economic ministry BMWK last year also rejected a bidding zone split , citing the complexity of the change, the risks to the competitiveness of industry centres, and lower liquidity. Germany's changing power system In the BZR, Entso-E advises assessing "the impact of the change of key influencing factors between 2025 and a potential implementation date around 2030", including grid expansion, before reconfiguring bidding zones. Germany's power mix in 2024 was much changed from 2019. In 2019, solar and wind output made up just under a third of the mix at an average of 19GW. By 2024, their share had risen to just under 46pc, with output averaging 23GW. And owing to the government-mandated phase-out, nuclear generation's share of the mix fell to zero by 2024 from just under 14pc in 2019, when Germany had 9.5GW installed nuclear capacity, according to Fraunhofer ISE data. Meanwhile, the share of coal and lignite-fired output dropped by around 2.6 and 3.9 respective percentage points from 2019 to 6.3pc and 16.3pc in 2024. Around 2.8GW and 10.3GW of coal and lignite-fired capacity, respectively, was taken off the open market in 2019-24 as part of the country's coal phase-out, according to data from grid regulator Bnetza. But gas burn in 2024 was around 1GW up from 2019, climbing to just over 12pc of the mix against 8.7pc five years earlier. And Germany's mix is likely to become even more renewables-heavy in the following years as it is set to phase out a further 6GW of dispatchable capacity by the start of 2030. The coal and lignite phase-out deadline is set for 2038, although market participants have recently called the date into question, owing largely to delays to the long-awaited power plant strategy. Owing to rapid solar buildout, solar generation in 2030 could average 16.2GW, according to Argus calculations. This would be 9.2GW up from 2024. And while onshore wind expansion lags in comparison, generation in 2030 could average 16.6GW, which would be around 4GW up from last year. German grid expansion is progressing rapidly, with 1,400km of power lines approved last year, a record. The four main projects aiming to address poor north-south interconnectivity — namely the 4GW Suedlink, 4GW Suedostlink, 2GW A-Nord and 2GW Ultranet lines — are set to come on line between the end of 2026 and 2030. German demand in 2024 was around 4GW lower than in 2019, largely owing to slowing production in energy-intensive industries, which has declined since December 2021. Recent US tariffs on imports have triggered further economic insecurity in industry, while BMWK earlier this month said it expects industrial activity in the coming months to "weaken". While economic growth is expected to increase by 1pc next year, according to BMWK, demand is unlikely to recover to pre-Covid and pre-energy crisis levels unless conditions improve for energy-intensive industries. By John Horstmann and Bea Leverett DE power mix 2019 % DE power mix 2024 % Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump return complicates climate talks: Cop 30 head

29/04/25

Trump return complicates climate talks: Cop 30 head

New York, 29 April (Argus) — This year's UN Cop 30 climate talks will proceed with a key goal of scaling up climate finance, but US president Donald Trump's disruptive return to the White House has made efforts to reduce emissions more challenging, according to the Brazilian official leading the summit. Continuing the fight to reduce greenhouse gas (GHG) emissions "is going to be a slightly uphill battle, but I think it's the right one," Brazil climate secretary and Cop 30 president André Corrêa Do Lago said Tuesday at the BNEF Summit in New York City. "The international context could help a little more", Corrêa Do Lago said, drawing laughter from the audience. Trump moved quickly after beginning his second term to withdraw the US from the Paris Agreement, an exit that will formally take effect in January 2026. He has started to impede US development of renewable energy projects he sees as boondoggles, but he is facing challenges to his attempts to halt government funding and tax credits for the sector. It is unclear if the US will send a delegation to the Cop 30 summit this year, which is scheduled to take place in Belem, Brazil, in November. Corrêa Do Lago said that invitations have not yet been sent to prospective participants. He also made a distinction between the US government and others in the US, including state and businesses leaders, that have pledged to continue supporting GHG emissions reductions even as the Trump administration moves to boost oil and gas. Publicly, countries have not changed their tune on climate in response to the US policy shifts. But Corrêa Do Lago said that privately there are "some that say, ‘God, how am I going to convince my people that I have to try to lower emissions if the richest country in the world is not doing the same?'" Corrêa Do Lago said that this year's summit needs to focus less on technical negotiations over documents that might never be implemented as a result, and more about making an economic appeal for decarbonization and hosting more of a "Cop of solutions, a Cop of action". He reiterated the Brazilian government's goal of increasing climate financing for developing countries from the target set at Cop 29 of $300bn/yr by 2035 to the far higher target of $1.3 trillion/yr. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Environmental markets wary of Trump's next moves

28/04/25

Environmental markets wary of Trump's next moves

Houston, 28 April (Argus) — US President Donald Trump's recent threat of legal challenges against state climate and clean energy policies has roiled environmental markets waiting to learn the scope and avenues those confrontations could take. Trump's 8 April executive order, which directed the Department of Justice (DOJ) to consider contesting state policies that threaten "American energy dominance", targeted California's cap-and-trade program by name, but it may also extend to other policies, including renewable portfolio standards (RPS). But uncertainty about the extent of the administration's ambitions has injected another variable into an already volatile economic landscape. Market anxieties may not fade soon. US attorney general Pam Bondi has until early June to report on actions she has taken and make recommendations for other steps by the White House or Congress. Conservatives in some states already have asked her to scrutinize particular programs. Administration arguments One angle from which the DOJ could attack state programs is the well-trod "dormant Commerce Clause", a legal doctrine that says state laws cannot discriminate against or impose undue burdens on another state's economic activity. But such a challenge is more difficult if a program is merely stipulating, "if you want to come to our state, our electricity market or our fuel market, here are the rules to play by", according to Matthew Dobbins, a partner at Vinson & Elkins and member of the law firm's environment and natural resources team in Houston. Courts have dismissed lawsuits that tried this approach against low-carbon fuel standards in California and Oregon , as well Colorado's RPS. In addition, an appeals court last year threw out a case against Washington's cap-and-invest program, ruling it did not overstep in its handling of in-state versus out-of-state electricity suppliers. The US Supreme Court may soon decide whether to hear an appeal of the case. More broadly, a 2023 Supreme Court decision upholding a California law restricting interstate pork sales based on animal treatment makes such dormant Commerce Clause challenges "a lot harder", according to Nico van Aelstyn, partner at Sheppard Mullin in San Francisco. The DOJ could try using the "Equal Sovereignty" doctrine, which stipulates that one state's rights cannot exceed another's, van Aelstyn said. This has been used in cases against California's vehicle emissions standards and other states' climate "superfund" laws, which penalize oil and gas companies for historical emissions. But van Aelstyn described it as "not really tested yet." That administration has also been hoping to fast-track Supreme Court rulings on the executive orders by justifying them through "declared emergencies," according to Dobbins. This use of emergency powers will likely reveal how far the court will go to "pressure test" the administration's requests for speedy judicial relief, as justices work through a growing emergency docket through the end of term in June or July. Relitigating the past Amid growing trade tensions between the US and Canada, the DOJ could also revive a 2019 lawsuit against California's cap-and-trade program. A US district court at the time ruled that federal purview over foreign affairs does not preempt the state linking its program with Quebec's. Although the first Trump administration appealed the ruling, former president Joe Biden withdrew the case, leaving the matter undecided with one claim potentially still ripe for judicial review. "What that'll probably come down to is how much Canada has expressed its anger . . . and if the administration is willing to go 'all in' on trying to provoke one of our largest trading partners," Dobbins said. But even if California severed ties with Quebec, the province is a small part of the market, and its absence is unlikely to cripple the state's program. Meanwhile, in the markets… Trump's executive order has put states and US companies alike on the back foot, adding to a "shock and awe" barrage from tariffs and potential rollbacks to federal clean electricity incentives , said Tom Harper, a partner on consultant Baringa's energy advisory team in New York City. That volatility has led clean energy developers and buyers to hold off on decisions until they have a bit more stability. "You're almost in a state of paralysis because you can't go and deploy a team on a project. You can't go and arrange finance because the cost is moving day to day," Harper said. The tariffs have also fed growing concerns about the US economy, which have spilled into environmental markets. The California Carbon Allowance (CCA) market, already a bit bearish because of ongoing delays to planned program changes, plunged the day after Trump's executive order. Argus assessed CCAs for December delivery that day at $26.74/t — at the time their lowest price since November 2022. The lack of certainty around federal legal developments continues to whittle away at bullish signals, leaving market participants to wait for a clear outcome. Adding another layer of uncertainty is the fact that disputes may spill outside of the court system. Following the same logic as of Trump's " national energy emergency ", the US Federal Energy Regulatory Commission (FERC) could hypothetically issue an emergency order to halt carbon and clean energy programs. The recent resignation of a Democratic commissioner, giving Trump the ability to install a Republican majority, could facilitate that pathway. But using FERC to shutter these programs would be on weak legal footing, van Aelstyn said. The Trump administration has no issue using extrajudicial tools to enforce its policies, such as its January pause on federal funding that left states like California — which receives more than $100bn in backing and grants from the US government each fiscal year — grappling with potential budget holes. Two federal courts have said the administration must dole out the funds, but agencies have been slow to comply. "If they can withhold congressionally appropriated research funds for universities because they don't like their policies with regard to free speech on their campuses, what else might they do?" van Aelstyn said. "Withhold Medicaid funding to states where they don't like their renewable energy standards?" By Denise Cathey and Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex starts up biomass power plant in Vietnam

28/04/25

Japan’s Erex starts up biomass power plant in Vietnam

Tokyo, 28 April (Argus) — Japan's renewable energy developer Erex has started commercial operations at the 20MW Hau Giang biomass-fired power plant in Vietnam, the company announced on 25 April. The power plant in southern Vietnam's Hau Giang province is Erex's first biomass-fired generation project in the country and burns around 130,000 t/yr of rice husks. The electricity generated by the plant is sold under Vietnam's feed-in tariff (FiT) scheme. Erex aims to build up to 18 biomass-fired power plants in Vietnam following Hau Giang, and five plants in Cambodia. The company has started building two 50MW plants in northern Vietnam. These plants are expected to come on line by mid-2027 and burn wood residues. Erex also plans wood pellet production projects in southeast Asia, with up to 20 factories in Vietnam and several ones in Cambodia. The company's first wood pellet factory in Vietnam with a capacity of 150,000 t/yr has already started commercial production in late March. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and will account for more than half of its whole profits around 2030, according to the company. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nations, groups ramp up efforts on climate unity

25/04/25

Nations, groups ramp up efforts on climate unity

Transition aligning with energy security and more Chinese climate leadership may reinforce co-operation despite the US withdrawal, writes Georgia Gratton London, 25 April (Argus) — The UN, IEA and countries including the UK and Brazil — which hosts this year's UN Cop 30 climate summit — stepped up efforts this week to demonstrate common ground and build unity on climate action and the energy transition. Organisations and countries are looking to capitalise on areas of commonality in order to preserve climate action, as the US administration repeatedly pushes back on measures to tackle climate change and moves to curb the energy transition. A virtual meeting convened this week by UN secretary-general Antonio Guterres and Brazil's president, Luiz Inacio Lula da Silva, drew 17 world leaders to commit to keeping climate action a key priority. "Leaders need reassurance that they're not acting alone," a senior UN official says. "Collaboration and multilateralism still matter," a senior Brazilian official says. Cop 30, which will take place in November in the Amazonian city of Belem, will "have a different dynamic", the official adds. "We want to prove that multilateralism is not only about negotiating documents… but about making them real." China's president, Xi Jinping, participated in this week's high-level meeting, the UN confirmed. While the US — the world's second-highest emitter — has withdrawn from the Paris climate agreement, China is continuing to step forward on climate action. It remains the highest-emitting country by some way, but this week reiterated a commitment to a new climate plan for the period to 2035, covering "all economic sectors and all greenhouse gases", Guterres said. The EU this week noted China's co-operation at Cop 29 — where it was widely viewed as projecting leadership on climate — setting the scene for new climate alliances. While the US government pushes back on clean energy and climate action, support for the energy transition remains strong at sub-national level, from many US state governors, and from the private sector . A poll from three NGOs, including the UK's E3G, this week found that of nearly 1,500 business executives — including in the US — 97pc supported a transition from fossil fuels to renewable energy. The majority of the world has held firm on climate commitments. Heads of state and government of jurisdictions including the EU, several G20 economies and developing nations committed to submitting "ambitious and robust [climate] plans", Guterres said after the meeting. Renewable security Organisations and countries have been careful to underline that different national circumstances will mean that jurisdictions take different approaches to tackling climate change. Although this is a key tenet of the Paris agreement, it also remains a bone of contention in multilateral talks. But the co-hosts of this week's energy security summit, the UK government and energy watchdog the IEA, put the issue front and centre. "Different pathways for different nations should be respected," UK energy minister Ed Miliband told the summit. The almost 60 governments that the UK and IEA hosted will have "different approaches to energy security based on their nation's circumstances and policies", IEA executive director Fatih Birol said. European Commission president Ursula von der Leyen reiterated the EU's determination to double down on its energy transition, but also extended a nod to the US for its LNG supply as the bloc pivoted away from imports of Russian gas. But many note that achieving energy security is well aligned with a transition to renewable energy. The UK's path "is a hard-headed approach to the role of low carbon power as the route to energy security", Miliband said, while the cost of renewable power is now the cheapest option for the majority of the world. "The pathway out of climate hell is paved by renewables," Guterres said. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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