Mexico aims for 45pc renewable power by 2030

Spanish Market: Electricity
02/10/24

Mexico will generate 45pc of its electricity from renewable sources by 2030, new President Claudia Sheinbaum has pledged upon taking office in an immediate step-up in energy transition efforts.

The government had previously committed to a 43pc share of clean energy, including nuclear and efficient natural gas-fired cogeneration. But Sheinbaum stated during her inauguration on Tuesday that the new goal will be achieved solely through renewable sources, such as solar, wind and hydropower, which will also meet growing electricity demand.

In 2023, Mexico generated just 24.3pc of its electricity from clean sources, despite these holding 32pc of installed capacity, according to energy ministry (Sener) data. Low output from hydropower plans contributed to this shortfall. Wind and solar accounted for only 5.9pc and 5.1pc, respectively.

Last year, the energy regulator (CRE) approved regulatory changes allowing the government to classify energy produced by natural gas-fired combined-cycle plants as clean. But international standards do not consider gas-fired generation as clean unless the plants use CO2 capture systems.

Sheinbaum also pledged to introduce a new energy transition plan soon, to detail investment opportunities and projects in the electricity sector. She confirmed that state power utility CFE will maintain its prominent role, holding at least 54pc of electricity generation capacity.

The president announced plans for large-scale rooftop solar panel installations for households with high electricity demand in the summer. She also committed to continuing the Sonora Plan, aimed at boosting solar generation, lithium production and electric vehicle part manufacturing in Sonora.

Additionally, Sheinbaum promised to promote domestic lithium extraction technology, build 10 new recycling plants and implement air quality programs in cities like Mexico City, Guadalajara and Monterrey. She reiterated that CFE and state-owned Pemex will remain central to her administration and vowed not to sell their assets, as occurred under previous governments.

By Édgar Sígler

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22/11/24

Japan’s Taketoyo to resume biomass co-firing in 2027

Tokyo, 22 November (Argus) — Japan's largest electricity producer Jera aims to resume coal and biomass co-firing at the 1.1GW Taketoyo plant in 2027's first quarter, after a fire halted plant operations in January. Jera announced on 22 November that the thermal power plant in central Japan's Aichi prefecture would resume co-firing wood pellets with coal at a rate of 8pc, around the end of the 2026-27 fiscal year ending in March. This will come after its safety measures are completed. The plant's co-firing rate was 17pc before the serious fire, which was caused by an explosion of dust from wood pellets. The company will consider increasing the co-firing rate again in the future, provided safety can be ensured. But the plant will restart coal-only combustion in early January 2025, operating mainly during the summer and winter seasons, when electricity demand is high. Jera will keep operation rates low at Taketoyo and other coal-fired plants when electricity demand is low and rely more on gas-fired generation, to achieve its initial plan to cut CO2 emissions through co-firing at Taketoyo. Taketoyo started co-firing operations in August 2022 and burned around 500,000 t/yr of wood pellets imported from the US and Vietnam. It will burn 200,000 t/yr after it resumes co-firing at 8pc. The plant will slow down the speed of wood pellet conveyors to reduce friction as a part of safety measures, which means it must also reduce its coal and biomass co-firing rate. It is also currently working on other safety measures, such as installing air pressure conveying facilities dedicated to wood pellets and explosion suppressor systems to inject fire extinguishing agents. The outage at Taketoyo has encouraged Jera to boost replacement gas-fired generation, with the extra gas-fired costs accounting for most of the estimated cost resulting from the shutdown, which could be tens of billion yen in the 2024-25 fiscal year ending in March. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Talks in Baku torn between mitigation and finance

21/11/24

Cop: Talks in Baku torn between mitigation and finance

Edinburgh, 21 November (Argus) — Developing and developed nations remain at loggerheads on what progress on climate finance and mitigation — actions to cut greenhouse gas emissions — should look like at the UN Cop 29 climate summit. But Cop 30 host Brazil has reminded parties that they need to stick to the brief, which is finance for developing countries. Concluding a plenary where parties, developed and developing, listed grievances, environment minister Marina Silva recognised "the excellent progress achieved" on mitigation at Cop 28. She listed paragraphs of the Cop 28 deal, including the energy package and its historic call to transition away from fossil fuels in energy systems. "We are on the right track," she said, talking about mitigation, but "our greatest obligation at this moment is to make progress with regard to financing". "This is the core of financing that will pave our collective path in ambition and implementation at Cop 30," Silva said, adding that $1.3 trillion for developing countries should be "the guiding star of this Cop". Parties are negotiating a new collective quantified goal (NCQG) — a new climate finance target — building on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. But developed countries insist that a precise number for a goal can only be produced if there is progress on mitigation and financing structure for the NCQG. "Otherwise you have a shopping basket but you don't know what's in there," EU energy commissioner Wopke Hoekstra said. Some developing nations said they need the "headline number first". Some developing countries, including Latin American and African nations as well as island states, have also complained about the lack of mitigation ambition. Cop is facing one of the "weakest mitigation texts we have ever seen," Panama said. But they also indicated that financial support was missing to implement action. Developed countries at Cop 29 seek the implementation of the energy pledges made last year. "What we had on our agenda was not just to restate the [Cop 28] consensus but actually to enhance and to operationalise that," but the text goes in the opposite direction, Hoekstra said, talking about the latest draft on finance. Whether hints that Brazil has mitigation in focus for next year's summit will be enough to assuage concerns from developed countries at Cop 29 on fossil fuel ambitions remains to be seen. The communique of the G20, which the country hosted, does not explicitly mention the goal to transition away from fossil fuels either. The developed countries' mitigation stance grew firmer after talks on a work programme dedicated to mitigation, the obvious channel for fossil fuel language, was rescued from the brink of collapse last week. Discussions have stalled, but another text — the UAE dialogue which is meant to track progress on the outcomes of Cop 28 — still has options referring to fossil fuels. But in these negotiations too, divisions remain. "The UAE dialogue contains some positive optional language on deep, rapid and sustained emissions reductions and the [Cop 28] energy package, E3G said. But Saudi Arabia has made clear that this was unacceptable, while India, which worked to water down a coal deal at Cop 26, is pushing back on the 1.5°C temperature limit of the Paris Agreement. Negotiators are starting to run out of time. Draft after draft, the divide fails to be breached with no agreement on an amount for the finance deal. "We cannot talk about a lower or higher number because there is no number," noted Colombia's environment minister Susana Muhamad. The next iteration should have numbers based on the Cop 29 presidency's "view of possible landing zones". The fact that the draft text on finance has no bridging proposal is a concern, non-profit WRI director of international climate action David Waskow said. Finance was always meant to be the centrepiece of Cop 29. Parties have not formally discussed the goal in more than 15 years, and have been trying to prepare for a new deal through technical meetings for the past two years. But the discussion needs to end in Baku. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: EU, four countries commit to 1.5°C climate plans

21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Australia backs no new coal power call: Correction

20/11/24

Cop: Australia backs no new coal power call: Correction

Corrects missing word in headline London, 20 November (Argus) — Major coal producers Australia and Colombia, along with the EU and 23 other countries including the UK, have pledged not to allow any new unabated coal-fired power generation in their energy systems at the UN Cop 29 climate summit in Baku, Azerbaijan. This comes a day after Colombia, New Zealand and the UK joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. Most of the coal pact signatories are members of the Powering Past Coal Alliance, under which some countries have committed to phasing out existing unabated coal power generation. Australia is not listed as a member of the alliance, but the cities of Sydney, Melbourne and Canberra are. Unsurprisingly, the list of signatories did not include China or India, the two world's largest coal importers. It also does not include the US, although the country is part of the Powering Past Coal Alliance. "There is no space for new unabated coal in a 1.5°C or even 2°C aligned pathway, yet coal capacity rose by 2pc last year," the pact signatories said today. The pledge focuses on coal-fired generation and does not mention the phasing out of exports or imports. Australia, is the world's second-largest seaborne coal exporter. The country is looking to host Cop 31 in 2026 by outbidding Turkey for the spot. But no realistic policy changes in coal exports is expected from Australia, which will have a federal parliamentary election by May 2025 and winning votes from key coal mining regions in New South Wales and Queensland has proven to be crucial in recent elections. Turkey is on track to overtake Germany as Europe's largest coal-fired generator this year and was not among the signatories of today's coal pledge. Amid calls for a faster phase-down of unabated coal-fired power generation, global coal trade is set to reach a record high of more than 1.5bn t this year , surpassing last year's 1.38bn t, according to IEA data. Coal consumption will probably remain resilient, supported by higher electricity demand growth in China and India. China has not set a new climate plan since 2021, but it is expected to ramp up its ambitions in a new plan due by February 2025. India and Indonesia are strongly encouraging higher coal production to ensure energy security. The US Energy Information Administration (EIA) in September lowered its forecast for US coal-fired generation in this year but raised its expectation for 2025 . By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China to quit coal baseload power by 2050: Think tank

20/11/24

China to quit coal baseload power by 2050: Think tank

Singapore, 20 November (Argus) — Coal power in China will shift from being a baseload to a backup power source by 2050, according to a government-linked think tank last week. China is expected to move to a cleaner energy system with solar and wind power as its core, displacing coal as the main power source, according to the China Energy Transformation Outlook 2024 released on 13 November at the Cop 29 climate conference in Baku, Azerbaijan. The Energy Research Institute of the Chinese Academy of Macroeconomic Research, a think tank under China's National Development and Reform Commission, was the key contributor to this report. Installed renewable power capacity is projected to account for 95pc of China's potential total capacity of 10,530-11,820GW in 2060, before which China aims to achieve carbon neutrality, according to the report. Renewable sources are expected to generate 93pc of power in 2060. This would be a significant change from the current mix in China. Renewables made up 52pc of total capacity of 2,920GW in 2023, while thermal power capacity was 48pc, according to China's National Energy Administration. Renewable sources and thermal power, which is mainly coal-fired, generated 30pc and 70pc of power respectively in 2023, according to the country's National Bureau of Statistics. "By 2050, coal power will preliminarily serve as an emergency and backup resource for the grid, providing essential support in critical power events," the report said. Solar and wind Significant growth in solar and wind installations is expected to lead China's energy transition, supported by lower costs. Solar power capacity is projected to reach 6,370-7,240GW in 2060, accounting for two-thirds of total capacity, while wind power capacity could reach 2,950-3,460GW, according to the report. Among the installed solar capacity, 70pc will be distributed systems, which are smaller power generation systems compared to large, utility-scale systems. Costs of solar and wind power generation in China have fallen by 80pc and 60pc respectively over the past decade, the report said. The report elaborated on ways to manage the volatility of renewable sources via various energy storage systems. Solar power output usually increases rapidly during the day with abundant sunlight. When output exceeds the power load, energy is stored in pumped hydro, chemical, hydrogen and electrofuels, electric vehicles and industry demand response storages. These storage systems can then discharge electricity to generate power in the evening when solar output stops, and when wind output is low. New energy storage solutions are expected to support increased electrification in China, which will play a key role in reducing the country's carbon emissions, the report said. Electrification involves replacing technologies or processes that use fossil fuels with electrically-powered equivalents, such as electric vehicles. By Jinhe Tan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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