Colombia enacts energy transition law
Colombia has a enacted an energy transition law to promote investment in hydrogen, renewable energy and sustainable transport.
The law, signed by President Ivan Duque yesterday, recognizes green and blue hydrogen as renewable energy eligible for reduced income tax, VAT and tariff exemptions and accelerated depreciation. The new legislation also provides a legal framework for other energy sources such as geothermal plants, as well as storage, carbon capture and energy efficiency.
Colombia was a latecomer to renewable energy compared with other Latin American countries such as Brazil, Uruguay and Chile, in part because of its heavily reliance on hydroelectricity rather than thermoelectric plants. But Bogota is slowly starting to close the gap with new projects, such as the 9.8MW El Carmelo solar park just inaugurated by Colombian generator Celsia. About half of the energy from the new plant will supply Cargill's local poultry operations.
Colombia is holding a third renewable power auction on 31 October for 15-year power purchase agreements starting on 1 January 2023.
The country has a total of 2.5GW of unconventional renewable energy already installed or scheduled to come on line by August 2022.
In a related announcement last week, Colombia has begun the process of joining the IEA.
Despite strides toward energy transition, Colombia still derives most of its revenue from oil and coal production and exports.
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S Korea should meet power demand with renewables: IEEFA
S Korea should meet power demand with renewables: IEEFA
Singapore, 15 August (Argus) — South Korea should prioritise deploying renewables instead of fossil fuels to meet increasing power demand, said the Institute for Energy Economics and Financial Analysis (IEEFA) on 14 August. The IEEFA suggests that the country meet its UN Cop 28 climate summit pledge of tripling its renewable power capacity by 2030, as this would generate an additional 113,434GWh from 2023 levels, outstripping the projected power demand increase of 53,186GWh over the same period, according to IEEFA calculations based on data from South Korea's trade, industry and energy ministry (Motie), state-owned utility Kepco and government-affiliated Korea Energy Economics Institute. Doing this would also help the country fully meet increased demand from emerging semiconductor clusters and AI-driven data centers. Renewable energy — which does not include nuclear power — comprises 9.64pc of South Korea's power generation mix in 2023, which is far below the world average of 30.25pc and the average of 26.73pc in Asia, according to IEEFA, citing OECD data. The country's share of clean energy rises to 40.32pc when including nuclear power, but this is still below the OECD average of 49.96pc. Under the scenario where renewables are tripled, the share of renewables in the power mix would rise to 25.08pc by 2030, above the aim of 21.6pc in South Korea's latest 11th long-term electricity plan. Gas-fired power generation would rise by 3,008GWh to a 23.7pc share, in line with a target to cut the share to 25.1pc by 2030 and 11.1pc by 2038. This contrasts with IEEFA's second scenario — where new LNG power plants requested by various industrial sectors, including semiconductor clusters, are built — which would result in an excess of 55,706GWh in gas-fired capacity by 2030. This means LNG would account for 30.53pc of the power mix in 2030, while renewables would make up just 19.79pc. "Building more LNG plants contradicts the country's net-zero goal and increases the risk of stranded assets," said IEEFA. South Korea released its latest 11th long-term electricity draft in early June, which continues to prioritise gas-fired and nuclear generation, over that from renewable sources. The plan raises the share of gas-fired output to 25.1pc in 2030 and 11.1pc in 2038, up from 22.9pc and 9.3pc in the previous plan. "South Korea's historical reliance on fossil fuels to provide energy security has hampered its renewable energy deployment," the report said. "The belief that fossil fuels guarantee stable and affordable energy has stunted the development of renewables, which are perceived as expensive and unreliable." Economic competitiveness South Korea's lagging renewable energy deployment could have "significant financial consequences", given international decarbonisation initiatives such as the RE100, carbon border adjustment mechanism, as well as Scope 1, 2, and 3 regulations, the report warns. South Korea also risks missing out on potential cost reductions by delaying its transition, which may make its exports less competitive, especially with grid parity for renewables expected by 2027. The IEEFA also asserts that embracing renewable energy is "critical to safeguard [the South Korean semiconductor industry's] economic competitiveness", as well as securing future suppliers and customers. The EU, Japan, and China are already outpacing South Korea in renewable energy adoption, and stricter regulations could lead to environmentally conscious customers reducing the market share for South Korean chipmakers, IEEFA added. Companies across various sectors that participate in decarbonisation initiatives may also increasingly require their supply chain partners to adopt similar climate commitments. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s JAPC to extend Tokai Daini reactor safety work
Japan’s JAPC to extend Tokai Daini reactor safety work
Tokyo, 15 August (Argus) — Japanese nuclear power operator Japan Atomic Power (JAPC) is likely to face a delay in completion of safety reinforcement work at the Tokai Daini reactor to an unspecified date. JAPC was required by Japan's Nuclear Regulation Authority (NRA) to modify reinforcement work of the 1,100MW Tokai Dani reactor's seawall in east Japan's Ibaraki prefecture, as its foundations were identified to have technical issues. JAPC explained to NRA its plan to fix the issues on 7 August but said it will be difficult to complete the reinforcement work by September, as previously targeted. It is also unsure when it can resume operations at Tokai Daini. The reactor, which was built in 1978, has been closed since March 2011 when a devastating earthquake and tsunami and several subsequent nuclear meltdowns hit northeast Japan's Fukushima. JAPC has previously postponed completion of safety reinforcement work at Tokai Daini, previously aiming for a December 2022 completion . Japanese utility Tohoku Electric Power has also delayed a planned restart of the 825MW Onagawa No.2 nuclear reactor from September to November. It revised the fuel loading schedule for the Onagawa reactor in northeast Japan's Miyagi prefecture to September from a previously targeted July. It said it will need more time to ensure the smooth transportation of portable equipment such as water trucks needed to cool down the reactor, in case of emergencies such as earthquakes. Delays in nuclear reactor restarts are expected to maintain demand for thermal fuels like LNG and coal. Japan's LNG consumption for power generation totalled 10.5mn t during January-March, according to trade and industry ministry data. Coal use for power generation was 27.4mn t during the period. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India selects winners for second electrolyser tender
India selects winners for second electrolyser tender
Mumbai, 14 August (Argus) — India has selected the winners of its second round of subsidy tenders to support 1.5 GW/yr of electrolyser manufacturing capacity, according to government sources. Out of the 23 companies that bid, India selected 13 to receive support ( see table ). But these results are still tentative and may change, a government source told Argus . The final list is likely to be published on the Solar Energy Corporation of India (SECI) website by next week. This round follows a similar structure to the first, with incentives starting at 4,440 rupees/kW ($53/kW) in the first year and decreasing annually. But India introduced a new category for smaller indigenously developed units. All categories in this round were oversubscribed , with the category for smaller indigenously developed units attracting the most interest. Some 13 companies bid for a combined capacity of 295 MW/yr but Indian only offered support for 100 MW/yr. Four companies won bids in this category. Conglomerate Adani, Eastern Electrolysers, and start-up Newtrace will each get subsidies for 30 MW/yr, the maximum capacity available for an individual firm. In the "any stack technologies" category, seven companies will share subsidies for 1.1 GW/yr of production. This category was also oversubscribed, with bids totalling over 2 GW/yr. Mumbai-based Waaree Energies and a consortium of engineering firms Gensol and Matrix Gas Renewables will receive the largest support in terms of production capacity. Waaree will receive subsidies for 300 MW/yr, the maximum support available for an individual company in this category. The Gensol and Matrix Gas consortium will receive subsidies for 237 MW/yr, followed by Advait Infratech, which secured support for 200 MW/yr. In the large "indigenously developed units" category, India only selected two firms. Newage Green Electro will receive support for 228.5 MW/yr, while Adani will receive support for 71.5 MW/yr. Several firms that won subsidies in the first round also participated in the second round. Adani Enterprises submitted bids across all three categories, totalling 233 MW/yr. In the previous round, its subsidiary, Adani New Industries, received subsidies for 198 MW/yr in the indigenously developed stack technology category. But the tender stipulates that the maximum capacity allocated to a bidder, including parent or affiliate companies, is limited to 300 MW/yr across all tranches and categories of India's production-linked incentive scheme, meaning Adani could not have won its full bid amount. US-based Ohmium and Gujarat-based Advait Infratech also submitted bids for extra subsidies in this round after winning in the first round. Renewable energy firm Avaada succeeded this time, securing support for 49.5 MW/yr after an unsuccessful bid in the last tender. Mixed results for India's other tenders India is expected to delay the deadline for its second round 450,000t/yr hydrogen production plant tender for 10-15 days, the official said. The government had previously asked for bids by 23 August, but this looks likely to push into September. Separately, SECI received around 500 queries from companies about for India's first renewable ammonia supply tender after the government last month set out details for its proposals for 10-year subsidy contracts, the official added. This tender has already faced delays and it could potentially need more time and work to resolve doubts and questions from the private sector. By Akansha Victor Winners of electrolyser manufacturing tender Manufacturing capacity in MW/yr Bucket 1: all stack technologies Avaada Electrolyser 50 Newage Green Electro 72 Waaree Energies 300 Gensol, Matrix Gas and Renewables 237 Advait Infratech 200 Ohmium Operations 137 GH2 Solar 105 Total bids 1100 Bucket 2A : indigenously developed stack technology Newage Green Electro 228 Adani Enterprises 71.5 Total bids 300 Bucket 2B : indigenously developed stack technology - smaller units Adani Enterprises 30 Eastern Electrolyser 30 Newtrace 30 Suryaashish KA1 Solar Park 10 Total bids 100 government sources Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US $5bn H2 hub in doubt as another firm revises plans
US $5bn H2 hub in doubt as another firm revises plans
London, 13 August (Argus) — Doubts over the realisation of the $5bn Hydrogen Heartland Hub (H2HH) in the US' Upper Midwest region are growing as another key project developer looks to revise its original investment plans. Minnesota-based utility Xcel Energy told Argus it is looking to adjust its original plans because of changes to costs and regulation over the last two years. Xcel is working with the US Department of Energy (DOE) to evaluate alternatives, it said. Delays appear likely and it is not certain what form the projects may eventually take. "Much has changed since we shared our hydrogen vision two years ago, and recent federal rules, market developments and stakeholder preferences have shifted," Xcel Energy said. "Our proposed projects in the Heartland Hub are still in early-stage development, but the cost forecasts, policy developments and the regulatory uncertainty make aggressive development unlikely," it added. Xcel had planned to invest $1.5bn-2.5bn in two of three plants in the Heartlands Hub (HH2H) that was already set back by the cancellation of its other project — a $2.2bn joint venture — earlier this month. That departure had left Xcel as the hub's main private-sector developer. Questions over the hub's future come despite the DOE offering $925mn towards HH2H as part of the US' $7bn hydrogen hub funding programme (see map). As part of the hub, Xcel had announced a project in South Dakota to make hydrogen from wind power for supply to Minnesota's One Earth Renewables that would use the supply to produce "carbon neutral" fertilisers. The firm had also announced a separate project in Minnesota slated to use a mix of nuclear, solar, and wind to make hydrogen for blending into natural gas distribution systems and power generation. But plans for the projects appear to have been far from concrete. "Detailed project design will begin until after HH2H and DOE finish award negotiations ," Xcel said last year. The DOE was to contribute $565mn to Xcel's projects, the company had said last year. It is unclear what may happen to these funds and the full $925mn awarded to HH2H if Xcel changes its plans. DOE was not immediately available to comment on how project changes may affect hub funding. The Heartland Hub — led by the University of North Dakota's Energy and Environment Research Center — is "collaborating with the DOE to finalize the HH2H contract and anticipates Phase 1 work commencing in late summer 2024," the Center told Argus . It maintains an "optimistic outlook on the broad opportunities" of hydrogen technology and "maintains solid relationships with a diverse spectrum of stakeholders" that extends "well beyond the initial cornerstone partners" of HH2H, it said. The US has awarded around $30mn each to three hubs so far this summer — in California , in the Pacific Northwest , and in Appalachia — to start ‘phase 1' planning activities. By Aidan Lea Selected US hydrogen hubs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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