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October 2024 • Volume 17 • No 7 • Published monthly • ISSN 1757-7365

THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: enquiries@teitimes.com

Facing cost headwinds Understated potential

How oating offshore wind farms can be

developed at a similar cost to offshore

wind farms with xed-bottom foundations.

Page 13

Despite challenges like bureaucracy

and policy uncertainty, Italy’s clean

energy sector attracts diverse

investors. Page 14

News In Brief

Global energy transition

‘entering a new phase’

A new report by McKinsey and

Company has revealed that the

global energy transition is entering

a new phase, marked by rising

costs, complexity and increased

technology challenges.

Page 2

Brazil set to take decision on

third nuclear unit

A new study into Brazil’s long-

awaited Angra 3 nuclear power

plant says that abandoning the proj-

ect, which has been under stop-start

construction for several decades,

would cost almost as much as com-

pleting it.

Page 4

Indonesia progresses on

2060 net zero ambition

Indonesia plans to retire 800 coal

red power plants by 200 as part

of its commitment to achieving net

zero emissions. These coal plants

will be replaced by gas red pow-

er plants and biomass energy

sources.

Page 5

GB grid operator under

pressure to open up market

to batteries

A coalition of battery storage de-

velopers has called for battery stor-

age technology to be recognised as

“critical to Britain’s national en-

ergy infrastructure and x techni-

cal problems that have stopped

batteries being fully utilised in the

Balancing Market.

Page 7

Egypt to add 3 GW of solar

and wind power by 2025

The Egyptian Ministry of Electric-

ity and Energy is planning to enlist

the help of private-sector compa-

nies to add 3 GW of solar and wind

power to the national grid by 202

under a build, own, operate (BOO)

model.

Page 8

Technology Focus:

Harnessing the future

As the renewable energy landscape

rapidly evolves, innovative solu-

tions for storing and utilising ex-

cess energy have become essential.

The Fischells Salt Dome is a “geo-

logical marvel with signicant

potential for energy storage and

conversion.

Page 15

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The share of renewables in electricity generation has doubled globally between 2018 and

2023, notably, accounting for half of the EU’s electricity in the rst six months of 2024 –

outperforming fossil fuels. But governments must act to ensure they are well integrated into

power systems – or risk losing out on signicant benets, according to a new report.

Junior Isles

COP29 host putting fossil fuels on the back burner

THE ENERGY INDUSTRY

TIMES

Final Word

Some old dogs need new

tricks, says Junior Isles.

Page 16

As solar PV and wind grow at an ac-

celerated pace around the world, gov-

ernments must act to ensure that they

are well integrated into power systems

 or ris losing out on signicant ben-

ets, according to a new report from

the Paris-based International Energy

Agency (IEA).

Published last month, the report –

‘Integrating Solar and Wind: Global

experience and emerging challenges’

 offers a rstofitsind global

stocktake of efforts to integrate vari-

able renewables across 0 power sys-

tems, identifying best practices and

key challenges.

The I nds that between 2018

and 202, solar  and wind capacity

worldwide more than doubled, and

their share of electricity generation

nearly doubled. Fuelled by supportive

government policies and continued

cost reductions, the capacity of these

renewable sources is projected to keep

expanding rapidly towards 200.

However, to maximise the advan-

tages of this additional capacity, these

variable renewable energy (VRE)

sources need to be well integrated into

power systems as they are deployed.

According to the report, delaying the

implementation of measures to sup-

port integration could result in elec-

tricity generation from solar PV and

wind being 1 per cent lower in 200

and shave ve percentage points off

their share of the global electricity

mix.

“In recent years, the world has seen

a remarkable increase in solar and

wind capacity as countries have

looked to bolster their energy security

and reduce emissions. But they

wont reap the full benets without

stronger efforts to support the inte-

gration of these technologies into

power systems,” said IEA Director

of Energy Markets and Security

Keisuke Sadamori.

According to the analysis, in a sce-

nario in which countries meet their

announced energy and climate goals,

those that currently have low shares of

VRE in their power mixes account for

two-thirds of generation growth to

200. They can typically boost de-

ployment without enacting sweeping,

system-wide changes. Well-known

and tested measures such as enhanc-

ing the exibility of existing assets

and improved forecasting – imple-

mented gradually as the need arises –

tend to be sufcient.

Tougher challenges typically mate-

rialise at higher levels of solar PV

and wind penetration. However,

frontrunner systems – including Den-

mark, Ireland, South Australia and

pain  are nding ways to address

these issues, too, clearing the way for

others. Developing storage and new

power grid technologies, for exam-

ple, is playing an important role in

managing variations in solar PV and

wind output throughout the day and

across seasons.

According to the report, most tech-

nological solutions to address emerg-

ing hurdles – namely, a higher need

for stability and exibility  are either

mature or nearing maturity, and their

successful rollout often lies in appro-

priate policy and regulatory action

Continued on Page 2

Azerbaijan, the host country for the

upcoming  C2 climate summit

has omitted the transition from fossil

fuels in a list of priorities for the gath-

ering in Baku. In terms of the power

and energy sector, it focuses instead

on energy storage and grids, clean hy-

drogen and what it calls green energy

zones and corridors.

The presidentdesignate for C2,

Mukhtar Babayev, the Minister of

Ecology in Azerbaijan and notably a

former Vice-President at state-owned

oil and gas company Socar, issued an

“Action Agenda” last month which

outlines a 1point list of initiatives

and pledges that Azerbaijan plans to

put forward to tackling climate

change and its impacts at C2 in

Baku in November.

For energy storage and grids, the

outcome Pledge will aim to increase

global energy storage capacity six

times above 2022 levels, reaching

100 GW by 200. To enhance ener-

gy grids, endorsers will also commit

to considerably scaling up invest-

ments in grids as part of global efforts

to add or refurbish more than 80 mil-

lion m by 200.

On hydrogen, the outcome Declara-

tion will unlock the potential of a

global market for clean hydrogen and

its derivatives with guiding principles

and priorities, to address regulatory,

technological, nancing, and stan-

dardisation barriers.

The action agenda also mentions an

outcome Pledge that will commit to

green energy zones and corridors,

including targets to promote invest-

ment, stimulate economic growth,

develop, modernise and expand in-

frastructure, and foster regional

cooperation.

Although the action agenda includes

action on battery storage capacity and

widespread expansions to electricity

networks, it did not cover plans for the

end of fossil fuel use in energy sys-

tems that was set down last year’s

landmark pact in Dubai, where almost

200 countries struc an agreement

then described by UN leadership as

the “beginning of the end of the fossil

fuel era”. The burning of fossil fuels

is the single biggest contributor to cli-

mate change.

Babayev also steered clear of sug-

gesting that Azerbaijan should reas-

sess the dominant role in its own

economy of oil and gas exports,

which it has said allows it to help meet

Europe’s energy demands.

“Stronger efforts”

needed to integrate

renewables

Sadamori: the world has seen a remarkable increase in wind and solar

THE ENERGY INDUSTRY TIMES - OCTOBER 2024

A new report by McKinsey and Com-

pany (McKinsey) has revealed that the

global energy transition is entering a

new phase, marked by rising costs,

complexity and increased technology

challenges. Growing energy demand

and resulting emissions could affect

the pace of the energy transition, which

will require a rethink of both low-

carbon and fossil fuel strategies to

meet the goals outlined in the Paris

Agreement.

The ‘Global Energy Perspective

2024’ explores a 1.5°C pathway as well

as three bottom-up energy transition

scenarios to show the implications of

different paths to net zero – providing

a fact base to inform stakeholders as

they navigate this new phase.

According to the report, global en-

ergy demand is projected to grow by

up to 18 per cent through 2050, main-

ly driven by growth in energy con-

sumption in emerging economies (es-

pecially ASEAN countries, India and

the Middle East).

Renewables are projected to grow to

65-80 per cent of the global power

generation mix by 2050 depending on

the scenario. Fossil fuels are projected

to account for 40-60 per cent of total

energy demand to 2050, with fossil fuel

demand projected to plateau between

around 2025-2035 and begin declining

thereafter.

Notably, hydrogen demand is pro-

jected to be up to 25 per cent lower

than previously anticipated due to cost

increases of 20-40 per cent and regula-

tory uncertainty.

The analysis demonstrates that the

build out of clean energy technologies

has not been fast enough to meet grow-

ing global energy demand. To date, the

buildout of renewable energy sources

has largely benetted from the most

promising use cases or “low-hanging

fruit” where policy and funding have

been most plentiful.

Diego Hernandez Diaz, Partner at

Mcinsey reected on the nd-

ings: “To navigate this critical phase

of the energy transition while keeping

it affordable, reliable, and green, we

need urgent action and a faster pace of

change. Even with the surge in global

net zero targets, the technologies need-

ed to reach them aren’t progressing

quickly enough. Low-carbon solutions

must scale up, but they’re facing an

uphill battle as rising interest rates and

supply chain challenges limit access to

capital.”

The report notes that accelerating the

pace of the transition will require over-

coming several bottlenecks impacting

the uptake of low-carbon technologies,

including electricity generation and

sustainable fuels. This layered with

T&D investments needing to grow

nearly three-fold by 2050 to recover

from under investment and accommo-

date for intermittent RES, demon-

strates the scale of the challenge ahead,

said McKinsey.

The report also notes that emissions,

which have not yet peaked, are pro-

jected to begin their decline between

2025 and 2035.

This latest McKinsey report follows

research released by the consulting

rm in late ugust, which revealed

the energy sector has a widening “re-

ality gap” between decarbonisation

technology project commitments and

realisation – threatening the pace of

the energy transition in Europe and

the US.

The report, ‘The energy transition:

Where are we, really?’, noted that for

projects with longer lead times in spe-

cic technologies, such as offshore

wind, where more than half of Eu-

rope’s projected pipeline is still pend-

ing Final Investment Decision (FID),

the industry is quickly reaching the

stage at which FID status projects will

only come online after 2030 – impact-

ing countries’ abilities to reach 2030

Paris Agreement commitments.

rather than new technological

breakthroughs. Even so, incorpo-

rating higher levels of variable re-

newables into power systems re-

quires rethinking the ways in which

they have traditionally been planned

and operated. This will necessitate

proactive measures globally as the

rapid uptake of renewables contin-

ues, said the IEA.

According to a pair of new reports

by research provider Bloomberg-

 B, for the rst time ever,

zero-carbon sources made up over

40 per cent of the electricity the

world generated in 2023. Hydro-

power accounted for 14.7 per cent,

while wind and solar contributed

almost as much at 13.9 per cent – a

new record high, whilst nuclear’s

share was 9.4 per cent.

‘Power Transition Trends 2024’,

and the ’2H 2024 Renewable En-

ergy Investment Tracker’, pub-

lished by BloombergNEF at the end

of August, indicate that momentum

towards clean power has acceler-

ated, with wind and solar represent-

ing nearly 91 per cent of net new

power capacity additions in 2023

– up from 83 per cent the year before

– while fossil fuels including coal

and gas represented just 6 per cent

of net new build.

In its ‘State of the Energy Union’

report – an annual stocktake of the

EU’s progress towards energy and

climate targets – the European

Commission revealed that half of

the bloc’s electricity came from re-

newable sources in the rst six

months of 2024, outperforming fos-

sil fuels.

It said that wind power has now

overtaken gas as the EU’s second-

largest source of electricity behind

nuclear power for the rst time.

 separate report by research rm

Wood Mackenzie found that orders

for wind turbines increased 23 per

cent worldwide in the rst half of

the year. The growth was domi-

nated by China, which represented

70 GW out of a total 91.2 GW.

“Chinese OEMs (original equip-

ment manufacturers) continue to

break records for order intake,”

said Luke Lewandowski, Vice

President for global renewables re-

search at Wood Mackenzie.

“Conversely, Western OEMs are

struggling to keep pace, challenged

by China’s competitive advantages

in pricing and availability. Soft de-

mand in Western markets as well as

policy uncertainty, ination, and

other cost pressures have also driv-

en down activity in the US and Eu-

rope,” he said.

WindEurope’s Autumn Wind En-

ergy Data shows Europe built 6.4

GW of new wind farms in the rst

half of 2024. The data shows turbine

orders were up year-on-year and

auction volumes are strong but grid

bottlenecks are delaying projects.

Current trends and the pipeline of

projects and auctions now point to

the EU having 350 GW of wind

energy capacity by 2030: 296 GW

onshore and 54 GW offshore.

The EU target is 425 GW. Today

it has 225 GW.

Continued from Page 1

Greece Prime Minister Kyriakos Mit-

sotakis has called on the EU to urgent-

ly tackle a “prolonged crisis” of capac-

ity that has driven prices to such

extreme levels that it requires an urgent

“political response”.

Mitsotakis believes that at present

the energy market in southeastern Eu-

rope is fundamentally distorted in

relation to the prices that Western

Europe pays for electricity. Power

prices in Greece more than doubled

from €60/MWh in April to €130/

MWh in August.

In a letter to the European Commis-

sion, Mitsotakis called on Ursula von

der eyen to use her second veyear

term as Commission President to “take

up the task of pushing through more

cross-border capacity” to avoid such

spikes in future.

Mitsotakis asked Brussels to create a

bloc-wide regulator with powers to

inspect energy markets across the EU,

and urged the Commission to support

cross-border infrastructure projects to

transfer power between countries.

The EU will need to invest €584 bil-

lion in upgrading its power grids this

decade, by the bloc’s own estimates,

to overhaul decades-old infrastructure

and ensure grids can carry larger shares

of renewable energy.

Days before sending the letter he

asked “how it is possible that there is

a time of day when the price of the

system in the Balkans is ten times more

expensive than in Austria or the Czech

Republic”.

“We say that we have a single market

we have a target model but it does not

work… I will raise this issue with the

President of the European Commis-

sion Ms von der Leyen explaining

what exactly happened not only in

Greece but also in Bulgaria in Romania

in Hungary.”

Factors in the surge in prices in

Greece, Hungary and Romania in-

clude hot weather, outages in electric-

ity generation and low rainfall, which

had left reservoirs feeding hydroelec-

tric plants dry.

But Mitsotakis said a key driver had

also been Russia’s attacks against

Ukraine’s grid. Kyiv was previously a

net exporter of electricity but this year

has started importing signicant

amounts of power from its EU neigh-

bours. He believes that the price in-

crease occurs when renewable energy

sources RES are disconnected from

the system.

“We feel like there is a mini energy

crisis that no one is talking about,” a

Gree government ofcial said, ahead

of the letter being sent to Brussels.

The Energy Ministers of Greece, Ro-

mania and Bulgaria have now decided

to take concerted action to address the

shortcomings of the single electricity

market in southeast Europe.

Theodore Skylakakis, Greek Minis-

ter of Energy, argues that the EU’s uni-

ed maret model is not adapted to the

realities of the region. He said that

Greece, along with Romania and Bul-

garia, is working on a plan to establish

a permanent intervention mechanism.

This mechanism would be triggered

automatically in the event of extreme

prices, when supplies from Central

European networks to the southeast are

insufcient to meet demand.

The electricity sector has welcomed

the long- awaited report on the future

of European competitiveness.

Unveiled by Italian Prime Minister

and former European Central Bank

Director Mario Draghi, the competi-

tiveness report highlights the need to

“accelerate decarbonisation in a cost-

efcient way, leveraging all available

solutions through a technology-neu-

tral approach”.

Draghi said: “This approach should

include renewables, nuclear, hydro-

gen, bioenergy and carbon capture,

utilisation and storage, and should be

backed by massive mobilisation of

both public and private nance.

Eurelectric, the organisation repre-

senting Europe’s electricity sector,

mostly welcomed the report.

Citing the positives, it noted that for

the rst time, there is a clear call to

common funding for electricity grids

– at both the transmission and distribu-

tion levels – as an essential pre-requi-

site for achieving EU energy and de-

carbonisation objectives.

“It is positive to see that the need for

reinforced and expanded power infra-

structure is now front and centre, to-

gether with the development of storage

and exibility solutions, said urelec-

tric’s Secretary General Kristian Ruby.

It also noted, however, that some as-

pects of the report are not “market-

friendly” and could undermine inves-

tor condence.

According to Eurelectric, the report

proposes several untested ideas for

reducing energy costs that could use

more careful consideration. For in-

stance, the report suggests granting

temporary electricity price reliefs for

energy intensives.

While this may appear benecial at

rst, it might do more harm than good,

warned Eurelectric.

“A regulated price on clean electric-

ity would destroy any investment sig-

nals for clean power investors. In-

creased demand and investor

condence are ey elements for ensur-

ing sustained investment in infrastruc-

ture and clean electricity generation.

We must therefore nd the right bal-

ance in boosting our competitiveness

while also preserving the correct func-

tioning of the market.”

Eurelectric added: “Draghi’s posi-

tions on ETS have also raised a few

eyebrows in the power sector, espe-

cially with regards to the call for more

support for hydrogen and CCUS with-

in the ETS scheme.

“Eurelectric recognises the ETS rev-

enues allocated so far are insufcient

for covered sectors to decarbonise at

the necessary speed. However, the

spending of ETS revenues should be

adjusted to current national reality

rather than standardised for every

country.”

Responding to the publication of

Draghi’s report, COGEN Europe’s

Managing Director, Hans Korteweg,

said: “We welcome the publication of

Mr Draghi’s report on European com-

petitiveness. Fostering secure access to

affordable energy is critical for the

EU’s industrial competitiveness. To

achieve this, European leaders must do

more to prioritise and properly reward

energy efciency, including savings

achieved by the use of highly efcient

cogeneration.

“Increasing the availability of renew-

able and low-carbon sources of energy,

such as biogas/biomethane and hydro-

gen, is also critical for those industries

that rely on cogeneration to ensure a

continuous supply of heat and electric-

ity at a competitive cost.”

Headline News

Energy sector welcomes Future European Competitiveness report

Global energy transition

‘entering a new phase’

Lewandowski: Chinese

OEMs continue to break

records for order intake

The energy transition is entering a new phase, says a new McKinsey report. Low-carbon

solutions must scale up but are facing an uphill battle as rising interest rates and supply

chain challenges limit access to capital. Junior Isles

Greece calls on Brussels to tackle

energy prices crisis

THE ENERGY INDUSTRY TIMES - OCTOBER 2024

Asia News

Junior Isles

Indonesia plans to retire 800 coal red

power plants by 2060 as part of its

commitment to achieving net zero

emissions (NZE). These plants will be

replaced by gas red power stations

and biomass energy sources.

Wiluyo Kusdwiharto, Director of

Project Management and Renewable

Energy at state utility company PLN,

announced this strategy during the

Plenary Session of the Indonesia In-

ternational Sustainability Forum

2024 in Jakarta on September 5th.

“We have a clear roadmap for

achieving zero emissions by 2060,

which includes replacing 800 coal

red power plants with gas red plants

and implementing biomass pro-

grammes,” Wiluyo said.

However, Wiluyo noted that achiev-

ing this target will require signicant

investment, estimated at $700 billion

to $1 trillion. This funding will sup-

port the development of 423 GW of

green electrication or renewable

energy-based electricity.

To date, PLN has cancelled 13.3 GW

of coal red power plants originally

planned under the 2019-2028 Power

Supply Business Plan (RUPTL). Ad-

ditionally, 1.2 GW of coal red capac-

ity has been scrapped through Power

Purchase Agreements (PPAs), and 1.1

GW of coal plants have been replaced

with renewable energy sources.

Wiluyo also highlighted PLN’s ‘De-

Dieselization Program’, which aims

to replace diesel power plants (PLTD)

with cleaner energy sources. This in-

volves creating hybrid power plants

across Indonesia, combining diesel

with renewable energy sources such

as solar photovoltaic (PV) panels and

batteries.

“We have approximately 5000 die-

sel power plants across Indonesia, and

we are converting them into hybrid

systems with renewable energy.

Through this programme, we have

reduced cumulative emissions by

around 3.7 million tons of CO

,”

Wiluyo added.

Geothermal continues to be central

to the country’s efforts to cut carbon

emissions. Last month Energy and

Mineral Resources Minister Bahlil

Lahadalia said the total value of in-

vestments in the geothermal sector

of Indonesia in the last 10 years is

projected at $8.7 billion.

Speaking during the opening of the

10th Indonesia International Geother-

mal Convention and Exhibition, La-

hadalia pointed out that Indonesia has

24 GW of geothermal potential, ac-

counting for about 40 per cent of the

global geothermal reserves. He also

noted that geothermal capacity in the

country has reached 2.6 GW, the

second-largest in the world, and

pointed out that the technology has

helped Indonesia reduce carbon emis-

sions by 17.4 million tons annually.

Lahadalia said that currently, Indo-

nesia’s total power plant capacity has

hit 93 GW, with new and renewable

energy (NRE) contributing 15 per cent

to the overall gure. He said the gov-

ernment has a target of increasing the

NRE share in the national energy mix

to 23 per cent by next year.

n At the end of August PLN Indonesia

Power (PLNIP) began commercial

operation of the 780 MW Tambak

Lorok Combined Cycle Power Plant

Block 3 (“Tambak Lorok”), in Tan-

jung Mas, Central Java. The gas red

power plant, which features GE Ver-

nova’s advanced H-class gas turbine,

can provide enough power for ap-

proximately 5 million Indonesian

homes.

South Korea is looking to capitalise on

its ability to build and commission

nuclear plants on time and to budget.

After beating Westinghouse of the US

and France’s EDF to become preferred

bidder on a $17 billion project in the

Czech Republic in July, state-run util-

ity Korea Hydro & Nuclear Power

(KHNP) is set to sign a contract early

next year for two reactors in the central

European country.

If completed, it will mark Korea’s

rst major overseas nuclear power

project in 15 years, since a consortium

led by KHNP parent Kepco won a $20

billion contract in 2009 to build and

operate four nuclear plants in the Unit-

ed Arab Emirates.

Whang Joo-ho, the President of

KHNP, said the company was conduct-

ing a feasibility study for a nuclear

power plant in the Netherlands and was

in talks to build reactors in Finland and

Sweden as it aims to export 10 more

reactors globally by 2030. Kepco has

also held early-stage discussions with

British ofcials about building a new

station on the island of Anglesey off

the coast of Wales.

According to Kepco and the Minis-

try of Trade, Industry and Energy,

Korea’s construction cost for a nucle-

ar power plant is estimated at $3571/

kW as of 2021, much lower than

$7931/kW for France and $5833/kW

in the US.

“Korea is the only country which has

built [reactors] on time, on budget,” the

country’s Industry Minister Ahn Duk-

geun said after the Czech deal was an-

nounced. KHNP was responsible for

building the recently completed Bara-

kah nuclear power plant in the United

Arab Emirates, where Unit 4 began

feeding power into the grid at the start

of last month.

The announcement of the Czech deal

came just ahead of news that the

Korean government approved the

construction of two new nuclear reac-

tors on the country’s east coast, the

rst such decision in eight years.

The Nuclear Safety Commission

(NSSC) gave the go-ahead last month

to state-owned Korea Hydro & Nu-

clear Power (KHNP), the country’s

sole nuclear power plant operator, to

build two more reactors, 3 and 4, at

the Shin Hanul plant, located in the

town of Uljin, some 225 km southeast

of Seoul.

It is the rst such decision since the

NSSC in 2016 authorised the construc-

tion of reactors 3 and 4 at the Saeul

plant in Ulsan (300 km southeast of

Seoul).

Korea has decided to start re-invest-

ing in nuclear as part of its net zero

plan. Last month the Ministry of Envi-

ronment and Ministry of Trade, Indus-

try, and Energy approved the Environ-

mental Impact Assessments (EIAs) for

Hexicon’s 1125 MW MunmuBaram

oating offshore wind project being

developed off the coast of Ulsan.

Once commissioned, MunmuBaram

will play a crucial role in supporting

South Korea’s renewable energy target

and providing clean energy to more

than 700 000 households.

Australia is accelerating its roll-out

and integration of renewables with

recent announcements that will boost

both hydrogen and battery storage.

In mdi-September the Australian

government published its 2024 Na-

tional Hydrogen Strategy aimed at

positioning the country as a global

renewable hydrogen leader. The new

strategy is a thorough review of the

country’s 2019 hydrogen strategy.

The announcement followed news

that Western Green Energy Hub Pty

Ltd (WGEH) and the Korea Electric

Power Corporation (Kepco) signed a

new Collaboration Agreement to ad-

vance the WGEH project in the south-

east of Western Australia.

Stage 1 of the WGEH project is ex-

pected to generate around 6 GW of

hybrid wind and solar power, to

produce up to 330 000t/a of zero emis-

sions green hydrogen.

Hydrogen has great potential as a way

of providing long term energy storage

for variable wind and solar.

In the meantime, Australia continues

to grow its short term storage capacity

by implementing battery projects.

Last month Australian Federal Envi-

ronment Minister Tanya Plibersek said

that planning approval has been grant-

ed for the Birriwa solar and battery

project, which is being developed by

the Australian unit of Philippines-

based energy company Acen Corp. in

the New South Wales Central-West

Orana region.

The project will comprise a 600 MW

solar farm and a battery energy storage

system of up to 600 MW with two

hours of storage capacity.

“We know projects like this are vital

to boosting renewables capacity and

putting downward pressure on prices,

but they are also great for local jobs

and economies,” she said.

Acen said it expects to start construc-

tion of the project in late 2026 or early

2027, with power generation antici-

pated in 2029.

September also saw the Australian

government announce support for six

large-scale batteries in Victo-

ria and South Australia after a pilot

tender for dispatchable capacity across

the two states.

The six projects, representing 995

MW/3626 MWh of capacity, are being

underwritten by the Capacity Invest-

ment Scheme. The batteries will run

for up to four hours and will be in ser-

vice from 2027.

Singapore has boosted its goal to im-

port clean electricity from neighbour-

ing nations as it pushes to curb reliance

on natural gas.

The city-state now aims to import 6

GW of clean electricity by 2035, up 50

per cent from its initial plan, Singa-

pore’s Energy Market Authori-

ty (EMA) said in a statement.

“Given the encouraging progress of

electricity imports projects, and to en-

sure adequate supply to meet our future

energy needs given growing de-

mand, Singapore will raise its ambi-

tion,” the EMA said.

Singapore, which generates 95 per-

cent of its electricity from natural gas,

is aiming to decarbonise its power mix

but faces limits on building solar and

wind farms because of a lack of avail-

able space. Authorities aim instead to

import electricity. Last month the

country gave initial approval for two

projects to import 1.4 GW of low-

carbon power from Indonesia to Sin-

gapore; this is in addition to the 2 GW

of capacity approved last year.

Observers say the average consumer

will likely not face a marked increase

in their electricity bills when Singa-

pore begins its renewable energy im-

ports over the next few years. They

added that the clean power will most-

ly be purchased by companies looking

to slash their emissions.

Seven companies will be importing

around 3.4 GW of solar energy

from Indonesia, ve of which are ex-

pected to start commercial operations

for their projects from 2028.

South Korea builds on domestic nuclear success

Australia accelerates energy

storage effort

Singapore targets

renewable imports

n Plans to retire 800 coal plant

n Diesel power plants to be converted into hybrid systems with renewable energy

Indonesia progresses with 2060

net zero ambition

Pre-register now:

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THE ENERGY INDUSTRY TIMES - OCTOBER 2024

Europe News

Janet Wood

A coalition of battery storage develop-

ers has written an open letter to the UK

government and the new National En-

ergy System Operator (NESO), asking

them to “recognise battery technology

as critical to Britain’s national energy

infrastructure and to x technical

problems that have stopped batteries

being fully utilised in the Balancing

Market.

Battery operators enob, elpow-

er, Harmony Energy and Field Energy

say the system operator fails to call on

batteries even when they are the

cheapest and fastest solution to

grid. They say the result is, “consum-

ers paying more, clean renewable

energy being wasted and fossil fuel

generation used instead”.

The system operator’s Craig Dyke

said: “We do still acknowledge we still

have more work to do,” blaming a

range of factors including outdated IT

and limitations in the transmission

system.

The issue has added to the in-tray for

Secretary of State Ed Miliband, who

has to deliver the new government’s

aim to be a “clean energy superpower”.

A new ‘Mission Control’ has been set

up to try to deliver on that aim and its

Chief xecutive Chris tar said the

body would use the UK’s Covid vac-

cine task force as one model in trying

to remove the barriers both to install-

ing more renewable energy and to

extending the electricity networ,

which would help the country make

maximum use of renewable energy

generation.

Since taking power in July the Labour

government has removed a ban on on-

shore wind farms and it increased the

budget available in this year’s alloca-

tion round for price stabilisation

schemes known as contracts for differ-

ence (CfDs). In 2023 an allocation

round failed to attract bidders, because

the ‘strike price’ available was regard-

ed as too low to underwrite projects.

But this year’s auction (Allocation

Round 6) secured 9.6 GW of new re-

newable energy capacity across 131

projects, including the world’s largest

oating offshore wind farm.

Recently RenewableUK put forward

proposals to “future proof” the CfD

regime. Chief xecutive an McGrail

said its ve proposals, outline practi-

cal steps to provide long-term assur-

ance to developers and the supply

chain, whilst building on returning

investor condence following this

year’s encouraging auction results.

He added: “Several of the proposals

can be implemented without major

legislative reform in time for the next

auction round in 2025, reducing costs

whilst ensuring we procure increasing

levels of new renewable energy as we

look towards 2030 and beyond on our

journey to becoming a clean energy

superpower.”

Swedish energy company Vattenfall

has halted plans to invest in offshore

wind farms, starting with pausing de-

velopment of the country’s most ma-

ture project – Kriegers Flak – until

further notice. The company was due

to install up to 50 turbines in an area

that borders Danish and German off-

shore wind farms but it said it is no

longer possible to complete the project

in 2028, as originally intended.

In a statement, Va t te nf a ll described it

as Sweden’s “most mature offshore

wind power project”, but said “invest-

ment prerequisites for offshore wind

in Sweden are currently not viable”.

The company added: “Vattenfall has

therefore decided to pause all further

development of the project.”

The cost of the project is said to have

increased because the company will

bear the costs of connection to the on-

shore grid. Estimates from Swedish

Wind Energy suggest it could be

around 10-15 per cent of the total cost,

and other experts put the cost even

higher.

It was also suggested that a decision

by the Swedish government to support

new nuclear power with credit and

price guarantees has affected the prof-

itability of wind and solar projects, by

driving down electricity prices.

The utility said if conditions were to

improve “the project can be resumed”,

adding that it had previously said that

“one of the main prerequisites for in-

vesting in the project is a reasonable

connection point to the national grid

offshore”.

Italy’s is claiming a major milestone

on its Ravenna carbon capture and stor-

age (CCS) project after installing pro-

prietary carbon capture technology

from Mitsubishi Heavy Industries

(MHI).

The KM CDR Process will capture

around 25 000 tonnes per year from

Eni’s Casalborsetti natural gas plant.

The capture process is treating ue gas

from a natural gas turbine that drives

a turbo compressor. The facility claims

it is reducing carbon emissions by 90

per cent, and that rises to peaks of 96

per cent, although the carbon dioxide

concentration levels are less than 3 per

cent and the atmospheric pressure in

the exhaust is low level. It says the

project could be replicated with other

industrial processes producing low

carbon dioxide ue gas.

The captured CO

is being trans-

ported through reconverted gas pipe-

lines and injected and stored in Eni’s

depleted offshore gas eld. ver the

coming years, with Phase 2, the further

industrial-scale development of the

Ravenna CCS project aims to store up

to 4 million tonnes of CO

per year by

2030.

Tatsuto Nagayasu, MHI's Senior

Vice President (CCUS) of GX (Green

Transformation) Solutions, said:

“What MHI’s carbon capture technol-

ogy has achieved through this project

mars a signicant milestone and

paves the way for further carbon emis-

sion reductions across the industry in

the future. It also supports the ambi-

tious CCUS goals set by Italy and

Europe.”

Poland will have to invest €177 billion

by 2040 in its electricity system in its

most ambitious transition scenario,

said Climate Minister Katarzyna

Pelczynska-Nalecz recenty.

She said: “For various reasons, the

Polish economy is still very energy-

intensive and our dependency on coal

is still high… The share of coal in

electricity production in Poland is at

around 50 per cent.” She added: “Im-

plementing the goals set by the EU

imposes a huge nancial cost on our

economy. The most ambitious sce-

nario estimates overall investment in

the electricity generation sector at

around €72 billion by 2030 and €177

billion by 2040.”

Pelczynska-Nalecz noted that the

transformation is nanced by nation-

al resources, state and local govern-

ment funds, environmental funds and

EU funds.

“In total, since Poland’s accession

to the EU, until the end of 2023 the

value of EU funds or projects imple-

mented under the cohesion policy

amounted to almost €170 billion,” she

said. “We have allocated more than

€20 billion from the European Re-

gional Development Fund and the

Cohesion Fund for environmental

protection and energy transition,” she

added.

oland has been benetting from the

EU emissions trading scheme for 10

years and has received more than €25

billion from the sale of emission per-

mits and only part of this has been used

to nance the transition, she noted.

Janet Wood

France has started up a new EPR-type

nuclear reactor at Flamanville, 12

years after it was planned to start up.

The reactor is expected to start sup-

plying power to the grid in three

months, when it reaches 25 per cent

of its total power.

The new reactor will operate at full

power in “several months”, said Régis

Clément, Deputy Director of EDF’s

nuclear production division

In February 2022, French Presi-

dent Emmanuel Macron announced

plans to follow Flamanville with at

least six new reactors, and possibly as

many as 14.

The startup comes as France’s nu-

clear company EDF highlighted in-

creased production from its existing

reactors, after several years of poor

performance that have helped drive

up prices in Europe. Shorter outages

have been an aim of the company’s

action plan and this year 11 reactors

have been reconnected to the grid

ahead of schedule.

The good news from France’s nucle-

ar industry comes as Italy begins a

national reconsideration of its non-

nuclear policy. Italy’s Environment

Minister, Gilberto Pichetto Fratin, an-

nounced plans to introduce new regu-

lations by the end of the year to allow

the use of nuclear technologies in the

country, aiming to have a new decree

in place by 2025.

The measures would reverse a nu-

clear energy phase-out, which began

after a referendum in 1987, followed

by a similar ban in 2011.

Riccardo Zucconi, an Italian MP be-

longing to Prime Minister Giorgia

Meloni’s right-wing populist Brothers

of Italy party, said global demand is

expected to double in the next 10 years,

and renewable energies alone are not

enough.

“Alternative options, including a

new generation of smaller plants, are

emerging and should be seriously

considered,” he said, noting that Ita-

ly has expertise in the sector. ccord-

ing to the government’s energy and

climate plan (PNIEC) the use of new

types of plants could meet up to 11

per cent of national energy demand

by 2050.

Zucconi’s interest in smaller nuclear

stations echoes that within other Euro-

pean nations. Recently Rolls-Royce

was named as being on course to secure

the rst order from a uropean govern-

ment to build a eet of mini nuclear

reactors after being selected as the

preferred supplier in a competition

overseen by the Czech government.

The UK aerospace and defence group

beat six other rivals to seal the agree-

ment with state utility  Group, it

said recently.

Chris Cholerton, Chief xecutive of

the company’s small-modular reactor

business, said the “landmark” partner-

ship would put , ollsoyce

M and its existing shareholders at

the forefront” of SMR deployment.

New French nuclear

reactor starts up after

12-year delay

attenfall pauses wor on agship

Swedish offshore wind farm

tal claims success on S proect

oland counts the cost of eiting coal

n Aging IT systems ‘skip’ battery option in balancing market

n New government promises faster delivery across electricity infrastructure

n Italy considers return to nuclear

n Czechia picks Rolls Royce for small units

 grid operator under pressure to open

up maret to atteries

t’s well known that winds are

stronger and more consistent in

deep-sea waters compared to on-

shore or nearshore environments.

This makes offshore wind a vast, un-

tapped resource for clean energy that

humanity has hardly scratched the

surface of in trying to capture and

utilise. Part of the complication has

been getting massive wind turbines,

sometimes as tall as the Eiffel Tower,

out to sea cost-effectively. Getting

turbines onto xedbottom platforms

is already challenging enough, but

even more so when turbines are

placed on oating platforms and sub-

jected to the forces of the wind,

waves, tides, and currents.

Floating platform technology that

would support the largest turbines

(up to 15 MW) is part of a larger

puzzle that includes making sure that

wind farms can be developed at a

similar cost to offshore wind farms

with xedbottom foundations or

even onshore wind farms. Conserva-

tive potential market estimates proj-

ect over 00 GW of oating offshore

wind capacity by 2050, the amount

needed to reduce carbon emissions

levels and stay on track with the

agreed-upon 1.5°C above pre-indus-

trial global surface temperatures.

This would account for almost 15 per

cent of all projected offshore wind

production. However, oating off-

shore wind faces several obstacles

hindering its development, particu-

larly related to cost.

According to the National Renew-

able Energy Laboratory (NREL), the

Levelised Cost of Electricity (LCOE

– or the average cost of electricity

generation for a given generator over

its lifetime  for a oating offshore

wind farm is estimated at $145/

MWh, signicantly higher than the

MWh for xedbottom offshore

wind farms. This cost disparity has

been the biggest barrier to oating

offshore wind projects achieving

widespread adoption and commercial

viability.

chieving the next phase of wind

power by deploying oating offshore

wind platforms farther into the sea

requires lowering the high initial

capital expenditures and operational

costs associated with its technology.

Developers must embrace innovation

in design and construction, strategic

nancial planning, and efcient op-

erational procedures and practices.

ome capital and operational ex-

penditures are out of oating wind

technology developers’ control, such

as interest rates and the costs of ma-

terials like steel, concrete, or copper.

Those materials are used in the sub-

structure and foundation, or oating

platform, which accounts for approx-

imately 30 per cent of the total

LCOE, according to NREL. There-

fore, technologists should look to use

fewer materials or enable mass man-

ufacturing of materials to deploy

platforms at lower costs.

Floating offshore wind platforms

offer a solution to harness wind pow-

er in ocean waters where xedbot-

tom foundations are impractical or

unfeasible, such as around island na-

tions. or example, Japan has ap-

proximately 0 000 m of coastline

and extremely deep coastal waters.

However, many oating platforms

today were developed for the oil and

gas industry or optimised based on

those legacy designs over a long pe-

riod of time. But innovation and new

approaches are desperately needed

for those optimised designs to evolve

and for the industry to achieve lower

costs.

Developers can look to the ship-

building industry to tackle this barri-

er. For centuries, shipbuilders have

been rening the optimal designs and

construction techniques based on the

materials and technologies available

to them in order to put massive oat-

ing structures out to sea. At the same

time, these shipbuilders have found

ways to manage operational and cap-

ital costs to keep them relatively low

despite the ships complexity and

size.

Drawing inspiration from this in-

dustry, where modular construction

has long been used to optimise costs

and efciency, oating wind farms

can be designed for rapid assembly

and reduced input material usage.

or example, a modular approach en-

ables local manufacturing, allowing

individual components to be fabricat-

ed at multiple locations near a partic-

ular wind farm site or port and trans-

ported to the installation site at sea

for assembly. This approach reduces

the need for large-scale, single-pur-

pose-built specialised fabrication fa-

cilities and minimises the inherent

logistical nightmare and excessive

costs of transporting large structures.

The focus must rst be on the sub-

structure – or platform – design and

construction.

The integration of advanced mate-

rials and engineering techniques can

further drive down costs. Advanced

materials, lie carbon bre compos-

ites, are lightweight yet supportive

and can reduce the overall weight of

the platform, thereby lowering mate-

rial costs and improving platform

stability. Adopting hybrid designs

that combine the best features of tra-

ditional oating platform designs has

shown promise in reducing steel us-

age by up to 70 per cent and cutting

mooring loads by 50 per cent, direct-

ly contributing to a lower LCOE.

Traditional oating platforms lie

semi-submersible, tension-leg, and

spar-buoy designs require substantial

quayside space, or the space around

the harbour’s platforms that project

into the water that is normally used

for loading and unloading boats.

They also need very deep waters for

assembly, turbine towers, and turbine

engines before they are deployed at

sea.

For a long time, the consensus was

that these two issues necessitated

costly port upgrades, adding yet an-

other expense to the overall oating

wind project and creating a signi-

cant nancial barrier to the sectors

growth. Minimising dependency on

specialised port infrastructure is an-

other focus area for lowering costs.

Modifying ports to accommodate

large oating wind platforms is an

additional high investment cost that

presents a signicant nancial barrier

to the sector’s growth.

As with the foundation and sub-

structure design and construction

strategy, at Gazelle Wind Power, we

have found that it is possible to work

within the constraints of many ports

as they exist today by rethining the

approach to platform design and as-

sembly with modular components

and local fabrication. Platforms with

lower drafts (the vertical distance be-

tween the waterline and the platform

base that do not require extensive

and expensive dredging could be im-

mensely impactful to achieving this

goal. The cost of dredging and deep-

ening ports is not just nancial it

also has extensive environmental im-

plications, with potential long-term

impacts that could lead to further de-

lays and additional costs.

Modularity in platform design

again becomes a viable option here

since they can be assembled on-site

using existing quayside space. nly

a minimal amount of port space

would be needed for nal assembly.

With the remaining space, operators

can assemble additional platforms

and turbines or continue port opera-

tions as normal. This approach is

similar to how shipbuilders use

oating docs to assemble large

sections of a ship before nal as-

sembly. Using these techniques,

oating wind projects can avoid

bottlenecks and high costs associat-

ed with specialised port renovations

and infrastructure.

Having the right digitilisation strat-

egy is essential to achieving bank-

ability and ensuring the long-term

success of the oating wind project.

According to the International En-

ergy Agency, global investment in

digital electricity infrastructure and

software has grown 20 per cent an-

nually since 2014. Digital tools like

predictive maintenance systems, re-

mote monitoring, and advanced ana-

lytics are transforming the operation-

al landscape for almost every

industry, especially for nextgenera-

tion renewable energy sources like

oating offshore wind. They allow

operators to detect potential issues

early, mae efcient maintenance

schedules and processes, and reduce

the downtime for turbines.

Digital technology is crucial for

oating offshore wind, which re-

quires constant monitoring due to

the inherent chaotic and unpredict-

able forces of nature associated with

the high seas. Monitoring systems

allow operators to track real-time

data on platform performance and

even meteorological and environ-

mental conditions. By predicting

potential failures before they hap-

pen, operators can lower the risk of

accidents and enhance the overall

safety of maintenance workers and

operational staff.

In addition to predictive mainte-

nance, having the right digital assets

enables optimised turbine position-

ing and allows operators and asset

managers to make remote adjust-

ments of ballasts or stabilisers, there-

by maximising energy output.

ne of the biggest nancial riss in

oating wind project development is

the time lag between a project’s pro-

posal and securing permits, licenses,

risk assessments, or signing a Power

Purchase Agreement (PPA). During

this lag period, uctuating economic

conditions lie ination, commodity

pricing, and interest rates can impact

the overall viability of a project.

Therefore, nancial models need

room for exibility to account for

these changing variables.

Clauses that allow for indexation or

adjustment of the price for ination

and market changes are crucial to in-

clude in any development agreement

or PPA to ensure projects can remain

protable even when costs change.

Securing long-term contracts for dif-

ference (CfDs), where a government

will provide the project with a vari-

able premium on top of the market

price, can provide reliable and pre-

dictable revenue streams, making

these projects more attractive to

lenders, partners, and investors.

Specialised insurance that covers

construction, operational, or even en-

vironmental risks can provide an ad-

ditional layer of security for inves-

tors and stakeholders. Allocating

risks among the vested parties, in-

cluding developers, contractors, and

insurance companies, further attracts

funding for development and deploy-

ment with the added benet of nan-

cial stability.

nsuring the success of the oating

offshore wind platforms, projects,

and the overall industry requires a

multi-faceted approach, and each

piece must mae sense and t seam-

lessly. By focusing on innovative de-

signs, leveraging scalable, modular

construction methods, reducing reli-

ance on expensive port upgrades and

renovations, embracing digital tools

for efciency, and mitigating nan-

cial riss through strategic nancial

structures, the industry can overcome

the cost hurdles and drive wide-

spread adoption. Just lie assembling

a puzzle, each component – techno-

logical, operational, and nancial 

must come together perfectly to cre-

ate a sustainable and affordable

solution for oating offshore wind

deployment.

Alvaro Ortega is CFO of Gazelle

Wind Power, the developer of a next-

generation oating offshore wind

platform.

Offshore wind is

a vast, untapped

resource for clean

energy that humanity

has hardly scratched

the surface of in

trying to capture and

utilise. Part of the

complication has

been getting massive

wind turbines out to

sea cost-effectively.

Floating platform

technology that

would support the

largest turbines is

part of a larger puzzle

that includes making

sure that wind farms

can be developed

at a similar cost to

offshore wind farms

with xed-bottom

foundations. Gazelle

Wind Power’s

Alvaro Ortega

explains.

Facing the cost headwinds in

aisi

THE ENERGY INDUSTRY TIMES - OCTOBER 2024

Energy Outlook

Aississiai

Paa

aaai

asa

iaas

industry or optimised based

on those legacy designs over

aii

Investment environment

The nation boasts a stable investment

environment, yet it must redouble its

efforts to enhance conditions further.

Clean energy investments in Italy will

chiey be driven by planned renew-

able capacity additions rather than a

sharp uptic in consumption, particu-

larly as the countrys electrication

planning remains wea compared to

its peers.

conomic growth is expected over

the next few years, albeit at a modest

rate. The IMF’s July 2024 forecast

projects an average growth rate of

0. per cent between 202 and

2026. Key renewable investment in-

dicators suggest that Italy offers a

reasonable investment climate, but

one with considerable room for im-

provement. overeign credit ratings

by Moodys and  place Italy at

risier levels than its peers, with the

nation posting the lowest ratings

among G7 countries.

However, Italy rans in the top 20

per cent globally for innovation and

the top third for renewable energy

country attractiveness. For other

benchmars, including corruption,

press freedom, and justice indices, it

broadly rans in the top quarter. e-

spite these positive indicators, Italys

investment landscape could benet

from targeted measures to raise its

appeal to both domestic and interna-

tional investors in the clean energy

sector.

Investment policy

The country presents a range of in-

vestment incentives for clean and

renewable energy projects, many of

which align with those offered by

neighbouring countries. These in-

clude eedin Tariffs for specic

technologies and plant sies, targeted

tax incentives, tradable green certi-

cates, an auction system, or support

for investments in certain energy stor-

age systems. Additionally, there are

regional incentives, such as grants,

loans, or tax breas, as well as fund-

ing lined to the  Green eal. The

country has also streamlined some

authorisation procedures, particular-

ly for smaller projects.

Conversely, investors face chal-

lenges similar to those encountered

in pain, Greece, and some of the

other 2 countries. These include

complex bureaucracy, which can

occasionally be overwhelming, grid

infrastructure constraints, and land

use regulations. Furthermore, fre-

quent changes in government have

contributed to relatively high policy

uncertainty; the nation has seen no

less than ten changes in government

taly is a ey player in global de-

carbonisation, with signicant

potential for clean energy growth.

Its commitments include achieving 72

per cent renewable energy capacity by

200, surpassing global targets. The

country’s diverse clean energy re-

sources, from coastal wind to southern

sunshine, offer extensive opportuni-

ties. The investment environment is

stable, with various incentives in

place, including the  Green eal

funding. espite challenges lie bu-

reaucracy and policy uncertainty, Ita-

ly’s clean energy sector attracts di-

verse investors, and the lielihood of

intensied climate action is high.

Commitments

Italy holds a signicant position in

the global decarbonisation effort as a

member of both the G and the ,

the worlds largest proponent of cli-

mate action. While the country has

implemented various measures, crit-

ics argue that its efforts now lag be-

hind its peers. Bain  Co and other

experts broadly agree that achieving

200 and 200 targets requires robust

government action coupled with in-

creased private sector participation.

However, this assessment applies to

most developed nations. nique to

Italy is the need for enhanced regula-

tion, including a comprehensive cli-

mate law, streamlined project ap-

proval processes, and accelerated

clean energy deployment.

In 2023, renewable energy addi-

tions increased by 1 per cent, but an

annual growth rate of 1 per cent or

more is necessary to reach the coun-

trys 2 per cent renewable energy

capacity share target by 200. This

goal surpasses the International n-

ergy Agency’s Net Zero Emissions

scenario, which sets a global target of

0 per cent. The lielihood of intensi-

ed climate action by the Italian

government is high, driven by do-

mestic social pressures and the in-

creasing frequency of extreme

weather events.  study by Bain 

Company and Jupiter Intelligence

reveals that at least twofths of the

country faces high riss from extreme

climate events, including droughts,

res, and oods.

Energy profile

Italy, one of Western uropes elec-

tricity generation powerhouses, is

among the largest power producers in

the region with a substantial clean

energy footprint and signicant

growth potential due to its abundant

resources. In 2023, it generated 265

TWh of electricity, raning fth in

Western urope after rance, Ger-

many, the , and pain. Based on

calculations from data from the s

Energy Institute, clean energy ac-

counted for  per cent of total pro-

duction, while fossil fuels represent-

ed  per cent, with natural gas

comprising fourfths of the latter.

The countrys per capita C

emis-

sions of 5.7 tonnes in 2022 exceeded

the global average of 4.7 tonnes but

fell below the 2s average of .

tonnes, based on gures from the ur

World In ata project.

Hydropower was the primary clean

energy source, contributing over 14.7

per cent of total generation, while the

rapidly expanding solar and wind

sectors provided 21 per cent in 202.

otably, Italy reported that renew-

able energy sources surpassed fossil

fuels in electricity production for the

rst time in the rst half of 202,

largely due to increased hydroelectric

output. Thin tan mber notes that

emissions in the country have de-

creased rapidly in recent years, pri-

marily due to a steady decline in oil

and coal red generation, partially

offset by growth in wind and solar

power (see chart).

xperts concur that Italys coastal

regions offer high wind potential,

while the south and central areas re-

ceive ample sunlight, presenting ex-

tensive opportunities for further de-

velopment of these resources. The

country benets from an average of

2400-3000 hours of sunshine annu-

ally, with pulia, Calabria, ardinia,

and icily enjoying particularly fa-

vourable wind conditions. Addition-

ally, experts highlight Italys strong

geothermal and biomass resources,

further diversifying its renewable

energy portfolio.

over the past 20 years.

Investors

The Italian renewables maret has suc-

ceeded in attracting a diverse range of

investors, from corporations to private

equity rms. In the solar sector, prom-

inent investors include state-owned

developer nel Green ower, state

owned oil major ni, and infrastruc-

ture fund-owned Absolute Energy.

Meanwhile, the wind sector features

ey players such as private sector de-

veloper G, wind turbine manufac-

turers iemens Gamesa enewable

nergy and estas Wind ystems,

nel, and ortuguese utility 

enovveis. These companies typi-

cally operate in multiple countries

across urope and beyond.

ecent years have witnessed a se-

ries of signicant investments in the

Italian renewables maret. ome no-

table examples from the past two

years include projects ranging from

solar panel manufacturing to solar

power, offshore wind, and other

technologies.  standout project is

nels expansion of a solar panel giga-

factory in icily, with an initial pro-

duction capacity of 200 MW per

year, scaling up to  GW per year.

The estimated cost of this project is at

least €600 million ($668 million).

nother project is by Italian devel-

oper enexia which plans to construct

a 2.8 GW oating offshore wind farm

in the Mediterranean ea off icily,

with an estimated cost of around €5

billion . billion per GW.

Prepared for The Energy Industry

Times by Joseph Jacobelli at ACTEi.

TH G IT TIM  CTB 202

Energy Transition Investment Series

Despite challenges

like bureaucracy and

policy uncertainty,

Italy’s clean energy

sector attracts

diverse investors.

This is the latest in

a series of country

analyses where

TEI Times looks

at the country’s

generation and

consumption proles,

policy, emissions

targets and ability to

attract the investment

needed to meet

government targets.

Italy: understated clean energy potential

Italy electricity generation by source

Jacobelli: Italy boasts a stable

investment environment, yet

it must redouble its efforts to

enhance conditions further

s the world strives for car-

bon neutrality by 2050, hy-

drogen will play an essential

role in decarbonisation. Many coun-

tries have national hydrogen strate-

gies in motion, with governments

investing billions to incentivise the

expansion of a global hydrogen

economy.

Considering hydrogen is to be de-

ployed at scale, substantial energy

storage will be necessary. Large-

scale, underground hydrogen storage

is integral to a decarbonised energy

system. Often referred to as the “fuel

of the future”, hydrogen boasts re-

markable versatility. It can power

fuel cells in vehicles, provide heat

for industrial processes and serve as

a contribution towards clean energy.

The establishment of global “hy-

drogen energy hubs” is a pivotal

trend, enhancing the economics of

hydrogen developments and foster-

ing the growth of the global hydro-

gen industry. Salt caverns serve as

central hubs that support produc-

tion, storage and transportation for

renewable energy regions that play

a strategic role in stockpiling ener-

gy, mitigating risks associated with

offtake agreements and ensuring lo-

cal, national and international ener-

gy security.

Triple Point Resources Ltd (Triple

Point) owns the mineral rights to

the Fischells Salt Dome, the only

known salt dome in Newfoundland

and Labrador. It is a unique asset on

the Eastern Seaboard of North

America that aims to build a mini-

mum of 20 caverns, each with 1.7

million m

of storage capacity, in a

5 km-long, 2 km-deep geological

formation. Such domes are useful

for hydrogen storage because salt is

impermeable, and caverns can be

created by dissolving it in water.

The project is prepared to provide

approximately 200 000 tonnes of

hydrogen in 35 million m

of cavern

storage.

This strategic location is ideal for

long-duration energy storage for

Compressed Air Energy Storage

(CAES) and hydrogen storage to har-

ness Canada’s vast wind resources.

This approach not only enables

green hydrogen production for do-

mestic use but also positions Cana-

da for global export. The Fischells

Salt Dome’s distinctive geological

structure is well-suited for storing

compressed air and hydrogen at a

capacity that effectively offsets

uctuations in renewable energy.

By offering both CAES and hy-

drogen storage, Fischells unlocks

the full potential of Canada’s wind-

to-hydrogen initiatives. This asset

not only meets local energy de-

mands but also establishes Canada

as a global leader in the green hy-

drogen export market. Fischells en-

sures extended storage duration, al-

lowing energy generated during

peak winds to be stored and utilised

over longer periods. This capability

is crucial for grid stability and sea-

sonal energy balancing, reinforcing

Canada’s position as a clean energy

powerhouse.

The dome’s caverns will store and

supply energy using compressed air,

ensuring reliable reserve power

with utility scale renewable energy

storage not previously possible. The

dome’s virtually unlimited storage

capacity could offer a safe, secure,

and reliable source of energy.

The dome size is currently mod-

elled as 5 km long, 4.5 km wide and

2.1 km deep (including a 500 m of

rock cap at the top). There are a min-

imum 21 large caverns. With each

having a capacity of 1.7 million m

that would allow storage of 9600

tonnes or 320 GWh per cavern.

Triple Point’s primary objective is

to establish robust and safe infra-

structure for green energy storage

while prioritising environmental sus-

tainability. Our work underscores the

urgent need for abundant green ener-

gy storage capacity as developers in

Newfoundland and Labrador begin

to advance renewable energy proj-

ects across the province. We plan to

create a sustainable hydrogen econo-

my that meets local, regional and in-

ternational energy needs.

The integration of hydrogen with

renewable energy sources is crucial

for maximising energy efciency

and minimising waste. The Fisch-

ells Salt Dome’s capacity for large-

scale hydrogen storage enables it to

act as a dynamic buffer between en-

ergy generation and consumption,

which helps to enhance energy se-

curity and stabilise the grid during

times of peak demand.

Our approach to energy storage is

vital for converting surplus renew-

able energy – primarily from wind –

into hydrogen and other useful

forms. When renewable generation

exceeds demand, this excess energy

can be converted into hydrogen for

later use when demand is high or

renewable generation is low.

The Fischells Salt Dome is set to

become a cornerstone of energy stor-

age innovation, as the unique proper-

ties of salt make it an ideal medium

for hydrogen storage. It is imperme-

able and can be easily shaped into

caverns through solution mining.

As the largest known salt dome on

the East Coast of North America,

our agship project offers several

advantages. These include its exten-

sive sie for signicant hydrogen

and compressed air storage as salt

caverns are a mature technology that

has been used for decades to store

hydrogen. Additionally, the dome’s

proximity to existing energy infra-

structure allows for seamless inte-

gration with the local grid.

Fischells, with its immediate ac-

cess to Newfoundland’s wind re-

sources, is primed to convert surplus

wind energy into green hydrogen for

local consumption or export to Ger-

many and beyond. Located outside

of Stephenville, Newfoundland is

close to deep-water ports and the

strategic location of the dome en-

ables it to support offtake agree-

ments, bolstering the protability of

current and future clean energy proj-

ects across Canada.

The ability to store vast quantities

of hydrogen for months and provide

electricity through compressed air

technology, using salt caverns is piv-

otal in the development of a green

energy hub. By providing safe and

secure energy storage, this project

will establish a consistent supply of

renewable energy for local use and

international export.

The development of hydrogen stor-

age technologies with the Fischells

alt ome hold signicant economic

promise for the region of Newfound-

land and Labrador by fostering a lo-

cal hydrogen economy, the creation

of jobs and stimulation, positioning

Newfoundland and Labrador as a

leader in clean energy innovation.

Recognising that the transition to a

sustainable energy future requires

collaboration, Triple Point is actively

seeking partnerships with govern-

ment entities, research institutions

and other industry players. We be-

lieve that innovation and collabora-

tion are key to driving positive

change. As we work toward a

sustainable energy future, Triple

Point is committed to partnering

with local communities and stake-

holders to ensure that our develop-

ment practices are not only sustain-

able but also benecial for everyone

involved.

These collaborations aim to lever-

age expertise and resources to de-

velop innovative solutions that en-

hance the economic viability of

renewable energy initiatives through

research towards advanced technol-

ogies and integrating hydrogen into

existing energy systems.

Triple Point is advancing a feasi-

bility study and engineering work

for its rst caverns to better under-

stand the scale and timing required

for the Fischells Salt Dome energy

storage project, ensuring seamless

integration with the region’s renew-

able energy operations.

In June 2024, Triple Point an-

nounced the results of laboratory

analysis completed by RESPEC

Company LLC on historical core

samples from its Fischells Salt

Dome project. The results are very

promising, showcasing the project’s

superior qualities for energy storage

and mar a signicant milestone in

the project’s development. They

provide important information

about cavern characteristics to ad-

vance the commercial model.

As regulatory frameworks evolve

and investment in clean energy

grows, Triple Point’s Fischells Salt

Dome is poised to become a central

hub for hydrogen and renewable en-

ergy solutions. Our salt dome sym-

bolises a critical step toward a sus-

tainable energy future. By

harnessing the unique geological

features of the salt dome and tapping

into the power of renewable energy,

we can create a cleaner and more ef-

cient energy landscape that benets

our economy and our environment.

As we continue to develop this

project, the future of hydrogen and

renewable energy is bright.

Julie Lemieux is CEO at Triple Point

Resources Ltd.

As the renewable

energy landscape

rapidly evolves,

innovative solutions

for storing and

utilising excess

energy have become

essential.

Julie Lemieux

explains how Triple

Point Resources

Ltd. is playing an

important role in

the hydrogen value

chain through its

agship proect, the

Fischells Salt Dome

– described as “a

geological marvel”

with signicant

potential for energy

storage and

conversion.

Fischells Salt Dome:

harnessing the future

THE ENERGY INDUSTRY TIMES - OCTOBER 2024

Technology Focus

Each cavern has 1.7 million m

of storage capacity, in a 5 km-

long, 2 km-deep geological

formation

Lemieux: Fischells Salt Dome is poised to become a central hub

for hydrogen and renewable energy solutions

THE ENERGY INDUSTRY TIMES - OCTOBER 2024

Final Word

he completion of Unit 4 at the

Barakah nuclear power plant in

the United Arab Emirates was

met with applause at the World Nucle-

ar Association conference in London

in early September. It seemed odd.

Delegates applauding a power plant

startup Clearly a reection of an in-

dustry unaccustomed to success sto-

ries, perhaps. Yet, the room was

packed, with the conference a com-

plete sell-out weeks before the open-

ing session – nuclear energy has long

been a bit of a conundrum.

The packed room and high spirits of

delegates could no doubt be explained

by several developments around the

world that some might say signal a

nuclear renaissance.

In December last year, the 28th

United Nations Climate Change

Conference (COP28) was hailed as a

“historic event for nuclear energy”

when it was formally specied as one

of the solutions to climate change in

the First Global Stocktake of progress

toward meeting the goals of the Paris

Agreement.

eecting on what she called a

crucial moment for all of us”, Sama

Bilbao y León Director General of the

World Nuclear Association, said: “…

the world has changed in the last

couple of years. The question is no

longer whether nuclear energy ts or

does not t in the global energy mix.

That question has been answered. The

question now is: how much nuclear

energy do we need and what is it that

we need to do to deliver at the scale

and speed that is needed?”

In addition to “producing more en-

ergy with the same assets”, she told

the conference that we could celebrate

ve reactors being connected to the

grid for the rst time in 202  in

China, Belarus, Slovakia, South Korea

and the US – adding that she was

“excited” about the 64 reactors that are

currently under construction across 15

countries.

Last month the International Atomic

Energy Agency (IAEA) revised up its

annual projections for the expansion

of nuclear power for a fourth succes-

sive year. World nuclear capacity is

now projected to increase by 2.5 times

the current capacity by 2050, in the

IAEA’s high case scenario, including

a signicant contribution from small

modular reactors (SMRs).

“Following the success of COP28

in ubai and the rst ever uclear

Energy Summit in Brussels, the

global momentum behind nuclear

energy continues at pace. The new

I projections reect increasing

acknowledgement of nuclear power

as a clean and secure energy supply,

as well as increasing interest in SMRs

to target both electric and non-electric

applications to meet climate goals and

foster sustainable development,” said

IAEA Director General Rafael

Mariano Grossi. He announced the

new projections in his opening state-

ment at the 68th IAEA General

Conference in Vienna.

t the end of 202, 1 nuclear

power reactors were operational, with

a global capacity of 1. GWe. In

the high case scenario of the new

IAEA outlook, nuclear electricity

generating capacity is projected to

increase to 950 GW by 2050. In this

case, global capacity in 2050 would

be slightly more than 2.5 times what

it was in 202. In the low case projec-

tion, capacity rises 40 per cent to 514

GW. Small modular reactors, or

SMRs, account for about one quarter

of the capacity added in the high case

scenario and for 6 per cent in the low

case scenario.

The enthusiasm also seems to be

spreading to the private sector. Last

month 14 of the world’s biggest banks

and nancial institutions pledged to

increase their support for nuclear

power. Microsoft has also signed a

20-year power supply deal with

Constellation Energy that should al-

low for the reopening of part of a US

nuclear power plant that was closed

in 2019.

Despite this progress and positive

outlook, any excitement around nu-

clear must be tempered by an equal

measure of the all too familiar reali-

ties of the past and the signicant

obstacles the sector continues to

grapple with.

According to the WNA, the average

construction times for the ve reactors

connected in 202 was considerably

higher than in recent years, with a

median time of 121 months, compared

to 88 months in 2021 and 89 months

in 2022, and a mean construction time

of 115 months.

Highlighting the length of time it

takes to build nuclear projects Boris

Schucht, CEO at Urenco, referred to

what he called, “5-5 projects, and

even 10-10 projects, where a project

taes ve times longer than expected

and costs ve times more than bud-

geted.

Speaking at the WNA symposium

on the need for action and the role of

policy, he said: “… it’s time to turn

some of these ambitions into ac-

tions… some of these [policies] are

good and some are, shall we say, less

than supportive. In our core business,

enrichment, I would say we need less

political action than in other areas.

Why? We are an industry where we

could normally take investment deci-

sions based on long term outlook…

because our lead time is much

shorter than for construction and a

project [developer] usually buys the

fuel before they tae a nal invest-

ment decision. So we have enough

time to prepare our assets and set

capacity to follow demand. So in this

area [nuclear fuel cycle] we need less

intervention.”

While governments of countries

such as Sweden, UK, and France have

set out their ambitions to drive nucle-

ar, nance still remains a huge

stumbling block to the roll out of

nuclear projects in the west.

rojects are difcult to fund. t the

WNA symposium, during the session

titled ‘Breaking new ground – deliv-

ering on time, on budget and on scale’,

Stéphane Aubarbier, Deputy CEO,

Assystems said that money is avail-

able but comes at a high cost, noting

that the cost of capital needs to be

lower, and that cost could be lowered

if risk can be reduced.

“If we are not able to deliver on time,

I’m afraid we will not be able to seize

the current opportunity… the faster

we deliver, the cheaper the power,”

he said.

The upfront costs of nuclear are

eye-wateringly high and construction

times are long, making risk unpalat-

able for most. Speaking to the Finan-

cial Times, Jens Weibezahn, assistant

professor at the Copenhagen Business

School explained that if the company

set up to construct a project defaulted,

“a half-built nuclear plant would be

pretty worthless as security”. The

interest lenders would demand for

that level of risk would simply make

projects unviable, he said.

Overruns on time and budget of

ongoing projects do little to instil

condence. ccording to s most

recent estimates, the initial £18 bil-

lion budget for the .2 GW Hinley

Point C plant in southwest England,

had ballooned to 1 billion in

201 prices 1. billion in to-

day’s money).

Last month Sweden’s Energy

Minister Ebba Busch said that her

country was looking at potential risk-

sharing mechanisms to counter some

of the problems. Several other

countries are also considering models

such as the regulated asset base,

where consumers start paying to-

wards the construction of nuclear

projects before they begin operation.

In this economic climate, such an

approach could be a hard sell to the

public. If it adds to already sky high

energy bills, elected government

ministers could soon nd themselves

sitting on the opposition bench.

The world may need nuclear but the

question is do politicians have the

appetite and money to drive a nucle-

ar renaissance? History tells us that

this potential revitalisation will need

more than a few pep pills. Nuclear is

an old dog that needs some new tricks.

An old dog in need of

new tricks

Junior Isles

Cartoon by Jem Soar