www.teitimes.com

October 2025 • Volume 18 • 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

Special Supplement Brazil’s green pivot

TEI Times speaks to Hitachi Energy’s

Bruno Melles to get his perspective on

the challenges of delivering power

transformers. Page 11

With surging renewables growth and

strategic incentives, Brazil offers a

compelling, if complex, landscape

for climate nance and green

infrastructure. Page 14

News In Brief

US-UK agree nuclear accord,

but sector faces obstacles in

Investment in UK nuclear energy

received a boost last month, with

the signing of a new accord be-

tween the UK and the US. But the

outlook for the rest of the continent

appears gloomy.

Page 2

Offshore wind remains focus

for investment

Brazilian wind energy experts have

suggested that any US withdrawal

from offshore wind could benet

the South American country’s rst

uses of the technology.

Page 4

Philippines seeks partners

to accelerate renewables

The Department of Energy (DOE)

is actively seeking more foreign

investors to bolster the Philippines’

renewable energy (RE) sector.

Page 5

EU Commission President

stresses renewables’ role in

energy independence

Economic competition and nation-

al security are intertwined, and

Europe must invest in digital

and clean technologies to ensure

the future continues to be made in

Europe.

Page 6

MENA ‘needs better grid’ to

cope with surging electricity

consumption

The Middle East and North Africa

(MENA) region needs to diversify

its power supplies and improve grid

infrastructure to satisfy fast-grow-

ing electricity consumption, ac-

cording to a new International En-

ergy Agency report.

Page 7

Ørsted to sell shares at

discount in attempt to shore

up nances

Danish offshore wind developer

Ørsted said it plans to sell new

shares at a 67 per cent discount in

its DKr60 billion ($9.4 billion)

rights issue, in a move to shore up

its nances.

Page 8

Fuel Watch

The International Energy Agency

is forecasting robust growth in hy-

drogen production through to 2030,

despite the nascent industry being

hit by a number of delays and can-

cellations. Page 11

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With COP 30 less than two months away, the EU has yet to agree legally binding emission

reduction targets. As right wing opposition to clean energy and net zero grows, the member

states are struggling to reach a consensus on targets. Junior Isles

Europe needs $3.5 trillion of power investment through 2035

THE ENERGY INDUSTRY

TIMES

Final Word

The renewables

revolution is here to stay,

says Junior Isles.

Page 16

The European Union failed to agree a

legally binding climate plan to cut

greenhouse gases over the next decade

in time for last month’s UN general

assembly, dampening its hopes of tak-

ing leadership on climate change at the

upcoming UN COP30 climate summit

in Brazil in November.

After failing to reach an agreement

on its Nationally Determined Contri-

bution (NDC), environment ministers

from the bloc’s 27 countries instead

signed up to a “statement of intent”.

Members said they would aim to cut

emissions by between 66.3 per cent

and 72.5 per cent by 2035. The bloc

now has less than eight weeks to for-

mally agree its NDC.

E ministers came under re for

what has been seen as a lack of ambi-

tion. Shirley Matheson, of environ-

ment charity WWF, said: “This state-

ment of intent is Olympic-level

diplomatic gymnastics, a performance

designed to avoid the embarrassment

of arriving at COP empty-handed.”

“When it comes to climate ambition,

the EU shouldn’t just be competing, it

should be setting the bar high,”

Matheson said. “With so many coun-

tries looking to Europe to decide on

their own NDCs, this was a missed

opportunity for the EU to raise the bar

and inspire others to follow.”

The UK leads the way on climate

commitments having set its NDC at

81 per cent compared to 1990 levels,

while Australia recently committed to

a cut of up to 70 per cent from 2005

levels.

Denmark, which holds the rotating

presidency of the EU, defended the

compromise. Lars Aagaard, its cli-

mate minister said: “We continue to

stand united and will speak with one,

clear voice at the United Nations. It

shows a will of the EU and its member

states to nd solutions in and promote

global climate action.”

European Climate Commissioner

Wopke Hoekstra also brushed aside

the criticism calling the proposed

range for emission cuts truly ambi-

tious “by any international standard”.

Continued on Page 2

Europe’s power sector will need

around $3.5 trillion (€3 trillion) worth

of investment over the next 10 years

to reduce the risk of a European pow-

er crisis, according to Goldman Sachs

Research.

The investment bank’s research

team said that after 15 years of de-

clining demand, Europe’s appetite

for power is set to increase again,

driven by widespread electrication

as well as new industries such as

electric vehicles and data centres.

A large part of the investment will

go into capital expenditures to moder-

nise aging power grids and improve

generation capacity.

“This scenario will drive signicant

growth across the electricity value

chain, thanks to rising investments

and higher margins,” said Alberto

andol, ead of European utilities

research in Goldman Sachs Research.

Between 2008 and 2024, power de-

mand in Europe dropped by around

7 per cent as a result of a series of

upheavals, from the nancial crisis

in 2008 to the Covid pandemic. In-

dustrial consumption has declined

the most since 1990, down nearly 8

per cent cumulatively.

But now Europe’s power demand is

on an uptick. Goldman Sachs analysts

forecast power demand will grow 1.5-

2 per cent per year from 2026.

The rise in demand is the result of a

number of factors. Vehicles, homes,

and factories are increasingly going

electric. Energy efciency measures

are approaching a plateau. More and

more data centres are being construct-

ed, and the use of air conditioning is

increasing across the continent.

Europe’s power generation sector is

undergoing a profound change as

well. By the end of the decade, its

analysts estimate that around 75 per

cent of the installed base will be from

renewables, compared with around 45

per cent around a decade ago and

about 65 per cent currently.

“Although this shift will boost

Europe’s self-sufciency and will

lower carbon emissions, the power

system is becoming increasingly

volatile, and increasingly reliant on

weather-dependent supplies” such as

wind, solar, and hydropower, said

andol. “This would make the sys-

tem less ‘secure’ – unless backup

measures (batteries, gas plants, pow-

er grid upgrades) are put in place.”

In addition, parts of most European

power grids are around 40-50 years

old, and they need to be recongured

to suit decentralised generation and

new customers.

A combination of these factors

could move European power markets

into a decit, with reserve margins

falling to zero by 2029.

To avoid such a scenario, Goldman

Sachs Research expects Europe to

need total investments in the power

sector of around €2-3 trillion over the

coming 10 years. Compared with the

past 10 years, which saw around €1.4

trillion in capital expenditure, this

implies a 60-100 per cent increase in

spending.

Capex on transmission and distribu-

tion infrastructure alone could double

to around €1.2-1.4 trillion over 2026-

5  a signicant increase compared

with the past ten years. Goldman

Sachs Research estimates power gen-

eration investment needs another €1-

1.4 trillion in that same period.

Such investment offers value for in-

vestors up and down the entire elec-

tricity value chain. Some electrica-

tion compounders – companies

involved in the electrication of the

power sector  could grow prots at

between 9-11 per cent per annum over

2025-30, depending on the abundance

of power.

“This capex acceleration could

bring on challenges: logistics, supply

chain, permitting, nancing and af-

fordability,” said andol. “et, we

should also stress that the cost of in-

action could cost Europe signicant-

ly more.”

EU hopes of climate

leadership at

COP30 fade

Photo courtesy of Luxembourg times

European Climate Commissioner Wopke Hoekstra brushed aside criticism

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Junior Isles

Investment in UK nuclear energy re-

ceived a boost last month, with the

signing of a new accord between the

UK and the US. But the outlook for the

rest of the continent appears gloomy

despite strong growth being predicted

globally.

The UK-US civil nuclear partner-

ship will enable major expansion of

new nuclear projects in the UK, and

builds on investments made earlier

this year in Sizewell C, small modular

reactors (SMRs) and fusion.

Britain’s Prime Minister Sir Kier

Starmer said the agreement promised

a new “golden age” for nuclear pow-

er. “Together with the US, we’re

building a golden age of nuclear that

puts both countries at the forefront of

global innovation and investment,”

Starmer said.

US Energy Secretary Chris Wright

said US President Donald Trump was

“ushering in a true nuclear renais-

sance” and that the deals announced

during the recent US visit would se-

cure nuclear supply chains across the

Atlantic.

In response to the announcement of

the UK-US civil nuclear partnership,

Professor Fiona Rayment OBE,

President of the Nuclear Institute

said: “We welcome the US-UK

deal… This announcement again

conrms nuclear’s vital role in ensur-

ing energy and national security, as

well as delivering high-skilled, well-

paid jobs across the country.”

However, Dr Douglas Parr, Chief

Scientist for Greenpeace UK, criti-

cised the deal, saying: “Britain is a

world leader in offshore wind, battery

technology and other genuinely clean,

affordable tech – we should be focus-

ing there rather than [on] slow, costly

reactors which produce waste that we

still have no plan to handle after 60

years of trying.

“There is no evidence that small

modular reactors have changed any of

that.”

Nevertheless, global momentum

continues to build around the technol-

ogy, which is seen as important in

combatting climate change. In Sep-

tember, for the fth year in a row, the

International Atomic Energy Agency

(IAEA) revised up its projections for

the expansion of nuclear power.

In the high case projection, the IAEA

estimates that global nuclear opera-

tional capacity will more than double

by 2050 – reaching 2.6 times the 2024

level – with small modular reactors

(SMRs) expected to play a pivotal role

in this expansion.

In 2024, nuclear reactors supplied

more electricity than ever before, ac-

cording to the ‘World Nuclear Perfor-

mance Report 2025’ published by the

World Nuclear Association. The

global reactor eet ran at an average

capacity factor of 83 per cent in 2024,

higher than any other source of elec-

tricity, it said.

The increase in global nuclear gen-

eration seen over recent years is pri-

marily due to a rapid increase in new

capacity in Asia. Of the 68 reactors

commissioned worldwide over the

past decade, some 56 were built in

Asian countries.

Europe, however, continues to

struggle with only one plant con-

nected to the grid in 2024.

There are about 100 nuclear plants

operating in the EU, and several coun-

tries, including France, Romania,

Poland and Sweden, have recently

announced plans to build new reac-

tors. Belgium has reversed a plan to

phase out nuclear power and Denmark

is considering embracing the energy

source.

But the nuclear renaissance in Eu-

rope faces signicant challenges, ac-

cording to a new report by Global

Energy Monitor (GEM), which out-

lines how frequent project cancella-

tions and delays could hinder the

continent’s decarbonisation drive.

Nearly 40 per cent of nuclear power

projects proposed across the world

have been cancelled, according to the

group. It found two-fths of the nu-

clear capacity planned for Europe had

been either cancelled or retired.

“To meet 1.5°C climate targets, tech-

nologies that deliver emissions cuts

quickly are essential. New nuclear

power, with its long development

times and risks of delays and overruns,

may not scale fast enough to contrib-

ute signicantly when it matters

most,” said Joe Bernardi, project man-

ager of the global nuclear power

tracker at GEM.

Nuclear’s share of electricity gen-

eration in the EU fell from 25 per cent

in 2005 to under 20 per cent in 2024,

according to GEM. The group esti-

mates that the new nuclear capacity

under construction is intended to re-

place retiring units, not expand total

capacity.

Last month, the European Court of

Justice struck down an EU approval

for Russia to build a nuclear power

plant in Hungary, arguing that it was

unclear whether Viktor Orbán’s gov-

ernment followed EU procurement

rules when awarding Rosatom the

contract without a public tender.

“I think we can safely say that we’re

still very much on the ambitious

trajectory globally,” he said.

UN climate chief Simon Stiell

said the EU should aim “for the top

of the range” in reaching agreement,

noting that “the EU has so much to

gain” if these targets are met “with

speed and at scale”. He said: “It

won’t just be a global leader on cli-

mate change and clean energy, the

more action it takes, the more the

continent stands to benet, with

stronger economic growth and

thriving new industries powered by

cheaper and cleaner energy.”

The EU’s environmental minis-

ters, however, are facing growing

opposition from right wing politi-

cians who have become more vocal

since the election of US President

Donald Trump.

Ministers are also negotiating on

a 2040 goal, towards an agreed

pledge of net zero emissions by

2050 but France, Germany, Poland

and others forced a debate on the

EU’s 2040 climate target after the

European Commission proposed a

90 per cent cut. EU leaders will dis-

cuss it at a summit on October 23-

24. Meanwhile, several countries

want more exibility in meeting the

target and net zero goal by 2050.

Last month former US Vice-Pres-

ident Al Gore accused Trump’s ad-

ministration of bullying countries to

abandon their climate change poli-

cies by linking them to trade deals.

The US had set a target of 61-66 per

cent below 2005 levels but with-

drew from the Paris Agreement

when President Trump took ofce

in January.

In an interview with the Finan-

cial Times, Gore said the Trump

administration is “actively at-

tempting to slow down the pace of

the energy transition in every way

that they can”.

In mid-September he told the FT:

“We have seen, just in the last week,

a tour of Europe by a couple of the

Trump ofcials trying to put pres-

sure on other nations to change their

policies and goals,” he said.

US Energy Secretary Chris

Wright, who visited the continent in

September, warned the EU that its

climate policies and “crusade” to

achieve “net zero” greenhouse gas

emissions by 2050 posed a major

threat to the EU-US trade deal.

Gore said some countries were

responding to the US pressure with

“greenhushing”, referring to the

tactic of climate efforts being

played down or kept quiet.

However, he said trade threats as

an “effective bullying tactic is go-

ing to be a diminishing asset [for

Trump], because the rest of the

world is just on to the fact that it’s

nuts”.

“I think that most countries are

going to continue moving forward

[on climate action] in spite of what-

ever pressure Trump tries to put

on,” Gore added.

Continued from Page 1

US Energy Secretary Chris Wright has

said European countries should stop

buying Russian oil and gas if they want

Washington to tighten sanctions on

Moscow. He said European countries

should instead buy American liqueed

natural gas, gasoline and other fossil

fuel products to meet the terms of the

US-EU trade deal, which calls on EU

countries to buy $750 billion of US

energy by the end of 2028.

Speaking to the Financial Times,

Wright said: “We think it’s good eco-

nomically for Europe. You want to

have secure energy suppliers that are

your allies, not your foes… the other

reason is a huge goal of the Trump

administration, and I believe of the

EU, is to end the Russia-Ukraine war.

Russia funds its war machine off oil

exports and natural gas exports and if

you cut off European purchase of

those, it shrinks their money.”

He said the EU could phase out

Russian gas within six to 12 months

by replacing it with S liqueed

natural gas

President Trump has said he is open

to new measures targeting Russia in

conjunction with the EU such as po-

tential secondary sanctions against

China – a major buyer of Russian oil

and gas – and other countries that buy

Russian oil.

The Trump administration has al-

ready imposed a 50 per cent tariff on

Indian imports in response to the coun-

try’s continued purchase of Russian oil.

E ofcials and diplomats have now

begun negotiations over what could

feature in a new sanctions package,

but are reluctant to follow suit on In-

dia and China. Further, secondary

sanctions are controversial and would

require unanimous backing by the

EU’s 27 members – with Hungary and

potentially Slovakia likely to oppose

the move.

Green groups in the US are blaming

Republicans for voting to raise electric

bills by passing the “one, big beautiful”

bill, a law that cuts funds for new clean

energy projects.

Prices have hit record highs in 2025,

with the average residential cost of

electricity up 7 per cent since last June

and commercial rates 5 per cent high-

er, according to the Energy Informa-

tion Administration.

Yet prices have remained high de-

spite Trump pledging on the campaign

trail last year that he would “cut your

energy and electricity prices in half,

within 12 months of taking the oath

of ofce”, as he blamed Democrats’

decarbonisation programme for high-

er costs.

President Trump has labelled Dem-

ocrats’ support for wind and solar as

the “scam of the century” and says

that they are behind the “record break-

ing” price increases in states that sup-

port them. His Energy Secretary,

Chris Wright, has also blamed Biden-

era policies.

Since taking ofce, the S President

has set about reversing those policies.

Late last month the US Department

of Energy said it intends to cancel

more than $13 billion in funds that the

Biden administration had pledged to

subsidise wind, solar, batteries and

electric vehicles.

President Trump is taking a particu-

larly aggressive stance against off-

shore wind. Last month the govern-

ment led a motion in S District

Court in Maryland to cancel the per-

mit for the Ocean City offshore wind

farm. In August, the federal govern-

ment withdrew and terminated fund-

ing for 12 offshore wind-related port

upgrade projects, totalling $679 mil-

lion, saying that these funds would

be used, where possible, “to invest in

real infrastructure”.

This was announced only days after

the Department of Interior (DOI) is-

sued a stop-work order for Revolution

Wind, a nearly built offshore wind

farm that is set to serve Connecticut

and Rhode Island. Since then, con-

struction has resumed following a

temporary injunction that lifted the

stop-work order.

US Interior Secretary Doug Burgum

said at a gas industry press conference

in Milan on September 10 that off-

shore wind has no future in the US

under the Trump administration and

that the government was reviewing

ve offshore wind projects that are

now under construction.

The DOI and the Bureau of Ocean

Energy Management (BOEM) also

plan to le motions to “remand with

vacatur” for two more offshore wind

projects that received federal approv-

als of their Construction and Opera-

tions Plans – Avangrid’s New England

Wind and Ocean Winds’ SouthCoast

Wind offshore wind projects, both ap-

proved to be built in the federal waters

off Massachusetts.

Headline News

Green groups blame clean energy cuts for higher electric bills

US-UK agree nuclear

accord, but sector faces

obstacles in EU

n Deal will enable major expansion of new nuclear projects in the UK

n oft of nclear caacit lanned for roe eiter cancelled or retired

Russian oil and gas imports complicate EU-US relations

US Energy Secretary

Chris Wright says EU climate

policy threatens trade deal

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Janet Wood

Economic competition and national

security are intertwined, and Europe

must invest in digital and clean tech-

nologies to ensure the future continues

to be made in Europe. And to keep its

place in the world, Europe needs to

take control of the energies and tech-

nologies which fuel its economy be-

cause international “dependencies are

ruthlessly weaponised”.

That was the message from EU

Commission President Ursula von der

Leyen, in her recent annual State of

the Union address.

Amid increasing geopolitical uncer-

tainty, she stressed the urgent need to

implement Europe’s Clean Industrial

Deal. “This transformation is central

to our push for independence”, von der

Leyen said, promising to “get rid of

dirty Russian fossil fuels completely”.

The EU Commission President also

spoke about direct electrication of

Europe’s economy, including new ini-

tiatives on electric vehicles and batter-

ies, and crucially, investment in grid

infrastructure and interconnections.

New European legislation on grid

expansion is due before the end of this

year and a new European Energy

Highways initiative will try to un-

block eight critical cross-border grid

bottlenecks.

A report by the European Climate

Neutrality Observatory noted where

the EU is on track to meet its climate

ambition and where additional efforts

are needed. The European Commis-

sion has tabled the Clean Industrial

Deal in response to these challenges,

integrating policy priorities around

competitiveness and decarbonisation.

The report said that along with setting

the EU’s next long-term budget (for the

period 2028-2034), the measures open

a window of opportunity to align EU

policy with long-term priorities.

The report coincided with new g-

ures from WindEurope, which showed

the current project pipeline and auction

schedules should get Europe from 37

GW to 80 GW of offshore wind by

2030. But Europe built only 6.8GW of

new wind in the rst half of 225  less

than expected and too little to meet the

EU’s 2030 energy security and climate

targets, although the group said Eu-

rope’s offshore wind supply chain can

now produce at least 10 GW a year.

WindEurope Chief Executive Giles

Dickson said: “The EU Commission

is clear: we need more home-grown

wind energy. It’s time to seriously

ramp up wind energy in the E  we

only built 5 W in the rst half of this

year. Governments have got to pull

their nger out  apply the E permit-

ting rules, build out the grids more

quickly, push electrication.”

WindEurope said it was key that

Member States agree a new deal for

offshore wind at a summit in Hamburg

in January.

A three-way partnership to develop

data centres powered by Holtec’s

SMR-300 small modular reactors

(SMRs) at the UK’s former Cottam

coal red power station site has been

signed by Holtec, EDF and Tritax.

The deal followed a new agreement

between the US and UK governments

that will make it quicker for companies

to build new nuclear stations in both

countries.

Dr Kris Singh, Chairman and Chief

Executive of Holtec International,

said: “The SMR-300s at Cottam rep-

resent a potential $5 billion project,

creating thousands of local jobs while

drawing on the lessons from our Pali-

sades project in Michigan.”

The 900-acre Cottam site will be

home to a 1 GW data centre project,

which will be powered mainly by re-

newable generation until the SMR

becomes operational in the 2030s.

Meanwhile, the FT r e p o r t s t h a t R o l l s -

Royce has held exploratory talks over

new nancing options for its SMR

business, which may include an initial

public offering. It is leading a consor-

tium that is in talks to nalise a contract

with the UK government later this year.

Other members of the consortium in-

clude CEZ Group (with a 20 per cent

stake ), Qatar Investment Authority and

BNF Resources.

UK government funding for Rolls-

Royce, which is still subject to nal

agreements, involves support to help

the development of three reactors

totalling .5 W.

Janet Wood

German Economy Minister Katherina

Reiche has described a new report on

the country’s energy transition as a

“reality check”, after it found that

faster expansion of renewable genera-

tion, electricity networks and exibil-

ity options is required to meet Ger-

many’s targets. It also concluded that

cost efciency had been given insuf-

cient importance.

The economy ministry, which com-

missioned the report, said it had re-

vealed uncertainties regarding future

demand for electricity and hydrogen,

as well as “glaring gaps” in transition

scenarios.

“In particular, insufcient attention

has been given to the actual ability to

pay of industry, commerce and house-

holds,” it said.

Even before the report was pub-

lished, Chancellor Friedrich Merz had

said Germany would slow the roll out

of renewables. Merz said: “If we want

to remain an industrialised country,

we must have a secure energy supply.

For the time being, at least, we cannot

guarantee this with renewable ener-

gies alone.”

The Merz government had already

dropped a requirement that new gas

power plants be ready to run on hydro-

gen. Green hydrogen costs around

twice the price of hydrogen produced

from natural gas and in June, Arcelor-

Mittal, Europe’s biggest steel produc-

er, abandoned plans to convert two

German plants to green production,

turning down €1.3 billion in public

subsidies aimed at supporting the

change.

Miguel Ángel López Borrego, Chief

Executive of German steel major Thys-

senkrupp, told the Financial Times he

would “prefer to start reducing carbon

dioxide in, I don’t know, 2028 with

[methane] gas instead of waiting for

the green hydrogen”.

Jan Taschenberger, Chief Operating

Ofcer of new green power and gas

at hydrogen supplier Uniper, said: “I

can have the best product on earth but

if there’s no demand, it doesn’t mat-

ter”. He said there was a danger that

the sector had entered the “trough of

disillusionment”.

Germany aims to bring its renewable

share in power consumption to 80 per

cent by 2030, and have an almost cli-

mate-neutral power supply when coal

comes off the bars, planned by 2038.

Meanwhile re.venture has announced

the development and construction of a

60 MW/240 MWh battery in Branden-

burg, Germany.

Construction is set to begin in 2026,

with commissioning planned for

2027. The site is in a region that is

particularly susceptible to grid bottle-

necks due to its high proportion of

renewable energy generation.

“Thanks to response times in the

millisecond range, the system com-

pensates for uctuations almost im-

mediately  and can even support the

grid restart in an emergency,” said

Ingo Ernst, CTO & Co-Founder of

re.venture .

Half the data centre industry thinks

new projects will connect within two

years, but the reality is up to eight

years, according to a new report,

‘Powering Great Britain’s Data Cen-

tre Ambitions’, from grid consultancy

Roadnight Taylor.

Chief Executive Hugh Taylor said:

“Data centre developers are facing

mounting grid connection challenges

that can derail even the most promis-

ing projects.”

The survey of data centre developers

found delays because of energy cost

and pricing uncertainty (36 per cent),

technical issues during connection

(32 per cent) and infrastructure up-

grades (26 per cent). It said cost and

connectivity restrictions had led to

half of projects changing locations.

Another recent report claimed mi-

crogrids as a solution to incorporating

data centres. Wärtsilä Corporation

and AVK-SEG said microgrids, com-

prising renewable energy, grid bal-

ancing and energy storage, can create

“a signicant bank of exible capac-

ity for balancing the European grid”.

Anders Lindberg, President of Wärt-

silä Energy and Executive Vice Presi-

dent of Wärtsilä, said: “By investing

in microgrids, data centres can side-

step energy constraints, and with the

right technology mix of renewables,

grid balancing engines and energy

storage, can ensure their emissions

proles and costs do not outweigh the

huge benets that AI brings”.

Microgrids recommended to

speed up data centre connections

UK puts small nuclear projects

on the fast track

Germany faces ‘reality check’ over green plans

EU Commission President stresses

renewables’ role in energy independence

n e frter electrication and ildot in annal eec

n ind loit arn oer dela to offore ind ildot

n er romie ne foc on ecrit n reen drogen ttter in ot demand and l

TE ENER INDSTR TIMES - OCTOBER 225

Europe e

Great Britain could cut its energy bill

by 5 billion a year by if gas red

power stations were no longer the ‘mar-

ginal plant’ that sets prices for the

wholesale market, according to a new

report co-authored by Adam Bell, the

government’s former head of strategy

at the Department for Energy Security

and Net Zero.

The report argues that the UK’s gas

plants should be held in strategic re-

serve, available when needed without

distorting the cost of electricity in the

wholesale market.

Gas generation in May and June in

GB was the lowest ever recorded for

those months, as it was displaced by

strong wind and solar generation. But

even though GB is sourcing more of

its electricity from renewables, it relies

on gas plants for about a quarter of its

annual electricity use, and they play a

much greater role during spells of low

wind and low solar generation.

The report has emerged amid grow-

ing concern over the price of electric-

ity in the UK, which has some of the

highest energy costs among developed

economies. The price of generating

power from gas continues to keep over-

all costs high, because it is the ‘mar-

ginal price’ almost all of the time, and

much more often than is the case in its

European neighbours, where the aver-

age is less than half the time.

Bell, now Policy Director at Stone-

haven consultancy said: “The govern-

ment has very few options to cut bills,

and none with as high a return as our

proposal.”

Report argues gas red stations should not be in wholesale market

Photo by Narcisa Aciko

the globe. A large part is in the

Americas, where $1 billion has been

announced in the US alone, with ma-

jor investments in Canada and Latin

America. Other signicant invest-

ments have been announced in Europe

– Sweden, Finland, Spain, Germany

and Switzerland. In addition, there is

signicant investment going into

Türkiye. Looking to Asia, Hitachi

Energy has announced investments in

Thailand, Vietnam, as well as major

investments in China and India.

“All those investments are going to

serve domestic markets and also ex-

port markets because part of the key

principle that we adopted in trans-

formers is what we call exible

sourcing,” explained Melles. “We

want to give our partners the ability to

rely on supply from multiple facto-

ries. This brings exibility and resil-

ience to the supply chain.”

Another element that Melles says is

an integral part of its investment is

related to the fact that the transformer

business of Hitachi Energy is verti-

cally integrated.

“This means that all the components

that are used in a transformer are

manufactured internally. Starting

from tanks, going to insulation mate-

rial, bushings, tap-changers; our op-

eration actually supplies those com-

ponents to third-party partners. In a

way they are our competitors but are

an integral part of the transformer

eco-system, so we are glad to support

the market and our competitors who

in this case are partners on the compo-

nent side.

“So, in a nutshell it is quite a spread

of investment and follows the very

strong vertical integration that we

want to drive in the business unit be-

cause that also supports the growth of

the industry.”

The transformer market is growing

in all areas, in terms of deployment

in various industry sectors, trans-

former type and geography. Although

the market might be growing at dif-

ferent speeds in different countries,

the entire transformer market is

growing at pace.

“The rst wave of growth in the

market has been triggered by distribu-

tion and data centres – almost glob-

ally,” said Melles. “But now I can say

need for massive investment for grid

modernisation, especially for distri-

bution networks. “So, Europe is more

about renewables interconnection

and transmission and distribution

networks,” noted Melles.

In North America the drivers are

different. “The US is far less con-

nected from state to state, and there is

a very important race to modernise a

very aging network,” said Melles.

“The challenge in the US is how they

are going to add more power genera-

tion to feed the massive demand that

is coming from data centres and in-

creased manufacturing.”

India, he says, “is in the process of

a major energy investment wave”

that is linked to: power generation,

including more hydro; the need for

more transmission; and the develop-

ment of a more efcient mobility

network, i.e. a train system across

the different states.

“The [various] challenges,” said

Melles, “are related to the level of

maturity – the level of maturity of the

power generation piece, the level of

maturity of the transmission network,

and then how you are going to ensure

decarbonisation.”

But perhaps one of the biggest chal-

lenges to the entire transition is the

transmission system.

“One of the two biggest bottlenecks

today is the availability of gas turbines

needed to create the inertia needed in

the system, but the other big bottle-

neck is in transformers, particularly

[large] power transmission trans-

formers,” said Melles. “And this

where I am happy because Hitachi

Energy is the market and technology

leader in the transformer space. We

have announced major investments

globally, have a broad footprint and a

large amount of service centres.”

Melles said: “Since 2020, Hitachi

Energy has announced a total $9 bil-

lion investment, which includes

manufacturing capacity expansion,

R&D, engineering, and partnerships.

or transformers specically, we an-

nounced a $1.5 billion investment to

increase the footprint and manufac-

turing. And on top of that, we an-

nounced a further $250 million in our

insulation and components business.”

Those investments are spread across

he energy industry is certainly

far more interesting to the gen-

eral public today than, say, 20

years ago. With climate change and

the resulting ongoing transition to

clean, sustainable energy sources, the

sector has captured the world’s atten-

tion as never before.

“Everyone realises that the energy

transition to an electried world is the

only option if we really are serious

about decarbonising.” Bruno Melles,

Managing Director of Hitachi Ener-

gy’s Transformers Business Unit is

convinced that shifting from a society

that depends on fossil fuels for energy

production to one where electricity

represents the bulk of the world’s en-

ergy production and consumption is

the only way to achieve the carbon

reduction goals needed to save the

planet.

But that planet-saving energy tran-

sition is no small task. Indeed, there

are several challenges, which accord-

ing to Melles must be addressed at the

same time.

The shift calls for huge investment

in power generating capacity – pre-

dominantly wind, solar, hydro and

nuclear. The second challenge, he

says, surrounds mobility. With in-

creasing population and urbanisa-

tion, large cities are in the middle of

extensive planning to ensure ef-

cient and decarbonised forms of

transport such as rail, metro and

electric vehicles. The third, said

Melles, is digitalisation.

“On top of moving to energy from

fossil to electricity and placing a

massive focus on alternative forms

of energy production – in particular

renewables and nuclear – as well as

the mobility aspect, there is of course

all the elements connected to the

digitalisation and the articial intel-

ligence challenges that require even

more investment.”

He added: “So, all of these require

faster and more widespread moderni-

sation of the grid, as well as scalabil-

ity of the grid because energy con-

sumption will also increase. This is

not just a challenge for Hitachi Energy,

it’s a challenge for everyone – entities

in power generation, entities involved

in transmission and distribution, users

and all throughout the value chain.”

Several metrics can be uased to

measure the size and scale of the chal-

lenge. According to Hitachi Energy,

during the period to 2050, 80 per cent

of the global energy consumed will

come from electricity. “This is a 4x

acceleration compared to where we

are today,” said Melles. Another indi-

cator is the amount of investment that

every utility, developer, power gen-

eration company is making. “We’re

talking about tens and tens of bil-

lions,” said Melles. Other simple

metrics include, for example, those

connected to the data centre market

being driven by the growth of AI.

Melles explained. “According to the

International Energy Agency, global

data centre electricity use could reach

945 terrawatt-hours by 2030, equiva-

lent to the total annual consumption

of Japan or Germany.”

The challenges and drivers will ob-

viously differ from region to region.

Europe is making massive invest-

ments in renewables such as offshore

wind and is therefore building strong

interconnections, including HVDC

links between countries, to make

grids more resilient. There is also

Transforming the

energy sector

Special Supplement

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Without urgent action to modernise, expand and scale grid infrastructure, including addressing shortages of critical

components like transformers, the world will not only fail to meet its increasing energy demands it will also be

unable to undergo a successful energy transition. Junior Isles speaks to Hitachi Energy’s Bruno Melles to get his

perspective on the situation around transformers and how the company plans to address the challenges.

Melles: “… the energy

ansn  an eece

 s e n pn 

we really are serious about

ecansn

The South Boston facility will

be the largest manufacturing

site for large power

transformers in the US

question is how to speed up trans-

former delivery. It is one that Melles

has recently been discussing with

customers. He stressed that Hitachi

Energy, like any of its competitors,

cannot simply react to requests.

“The times of customers calling for

equipment and getting a response

[that aligns with their schedules] are

gone. Today, in the transformer mar-

ket, we are in a world where proper

planning is fundamental,” stressed

Melles.

The company is investing in capac-

ity to reduce lead time. Last month

Hitachi Energy announced a historic

investment of more than $1 billion to

expand the production of critical

electrical grid infrastructure in the

US. These investments, among the

largest seen in the electrical industry

in the country, include approximately

$457 million for a new large power

transformer factory in South Boston,

Virginia, along with signicant ex-

pansions of existing facilities

throughout the country.

The South Boston facility will be

the largest manufacturing site for

large power transformers in the

country and will produce transform-

ers of up to 500 kV and 500 MVA. It

is signicant in that, as well as sup-

porting efforts to improve grid resil-

ience in the US, it will be located in a

state that boasts the largest number of

data centres in the country.

“It is the largest transformer invest-

ment seen in the US for a very long

time. It will have all the latest tech-

nologies we have introduced in terms

of manufacturing, engineering, as-

sembly, quality control and health

and safety.” said Melles. “We are

very proud to work with the governor

because we also need to attract people

to the factory so the federal and state

[governments] will support that by

building houses for the workers. This

is a very important step as we are

going to create around 800 new jobs.”

Governor Glenn Youngkin added:

“Eight-hundred and twenty-ve new

jobs will be transformational for

Southside Virginia, as will the power

transformers those new hires are set

to build. We are also proud to an-

nounce a major workforce housing

project to support Hitachi’s new em-

ployees. We are partnering with Hali-

fax County and Virginia Housing to

build 96 new homes supported by a

grant from the Virginia Workforce

Housing Investment Program.”

Commenting on the social impact

of the new factory, Melles said:

“There will be 800 people, so that

means 800 families which means a

lot of young kids that will need

schools and support. So, I am very

happy that we can work with the

community to help us support our

new employees and colleagues.”

He stressed that working with uni-

versities and vocational schools is

important to Hitachi Energy in at-

tracting and retaining both white

collar and blue collar talent, and is a

central part of the company’s driving

ethos.

“It is also important to underline

that this is a critical element in order

to support the growth plans and in-

vestments that we are making,” said

Melles. “This is why we are very

proud that Hitachi Energy is attract-

ing a lot of talent. Our purpose to

‘Inspire the next era of sustainable

energy’ is really a catalyst for re-

sources across the world.”

It is expected that the rst trans-

former from the factory in South

Boston will be used at a utility substa-

tion or for a data centre. “These are

the applications that are very thirsty

for this kind of product,” Melles noted.

The South Boston news follows an

announcement in March of additional

major investments of more than $250

million by 2027 to expand global

production of critical components for

transformers. These investments bol-

ster Hitachi Energy’s manufacturing

capabilities across the US, enhancing

production capacity at the company’s

transformer factories in Virginia,

Missouri, and Mississippi. It includes

transformer components such as

bushings and insulation as Hitachi

Energy is a critical supplier to other

transformer manufacturers.

Meanwhile, in June Hitachi Energy

announced that it is strengthening its

power transformer manufacturing

operations in Türkiye to meet the

growing demand for sustainable,

high-quality energy infrastructure

across Türkiye, Europe, and Asia.

This signicant expansion is essen-

tial to meet the ever-growing cus-

tomer demand and delivery lead

times while maintaining superior

quality. The new state-of-the-art 45

000 m

factory in Dilovasi will help

boost manufacturing capacity by 70

per cent and create 30 per cent more

jobs in the region.

In addition to expanding manufac-

turing, Hitachi Energy has also been

changing how it works with its cus-

tomers. The majority of its customers

are now seen as partners, supported

by long-term framework agreements.

He notes that the whole industry is

increasingly moving to such agree-

ments, which require mid- to long-

term visibility of a customer’s project

pipeline.

“For the last few years in most in-

dustry sectors, we have been working

side-by-side with them – not only to

co-create in terms of technology but

also to work on a much longer pipe-

line to understand the volumes needed

over a longer period,” explained

Melles. “Having visibility over, say, a

three to10-year period allows us to

deliver equipment when they need it.

It also allows us to have proper plan-

ning for manufacturing, so we can

design a factory to properly support

that, basically, every part of the market

is growing at very high speed. In

terms of industries, there are some

important sectors – like data centres,

semiconductors and steel manufac-

turing – that are growing rapidly.

“In the utility space, transmission

is growing very, very fast, probably

faster than distribution right now.

But it is a matter of sequence of in-

vestment ow.

“Overall, the utilities are investing

because: the energy produced has to

be transmitted and distributed; there

is massive investment in the power

generation space, e.g. in gas in North

America; there is massive invest-

ment in offshore wind in Europe; and

hydro is coming back strongly in

countries like Canada, China and

India. Rail and metro are also grow-

ing at very high speed.”

With such strong growth, one big

Special Supplement

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Hitachi Energy’s factory in

nn na nce

2020, the company has

annunce a a  n

investment globally, which

ncues anuacun

engineering,” said Melles. Changes

are also being made to components

like bushings and tap-changers, where

modular design allows for exible

customisation and faster delivery.

Another important aspect from a

technology perspective is connected

to the circularity and decarbonisation

of the portfolio. This has seen Hitachi

Energy engaging the supplier on get-

ting more traceability of green mate-

rial, i.e. green copper and green steel.

It is also introducing ester oils as alter-

natives to mineral oil in its transform-

ers. These are not only biodegradable

but are also less ammable. Similarly,

it is working with a start-up company

to nd alternatives to using epoxy for

insulation.

Melles added: “Let’s also not forget

that we are decarbonising our opera-

tions, so the technology is also applied

to the kind of equipment we use in our

factories in order to ensure we meet

our decarbonisation targets for 2030

and 2050. Let’s not forget that roughly

90 per cent of the transformer can be

recycled. The question is how we

work together with our supplier and

our customer and partner on how we

can recycle when the transformer is at

the end of life; or how we can lever-

age our service operation to extend

the transformer life for a few more

years.”

Importantly, these changes to the

transformer and its components can

be handled in existing factories and

production lines. It is no surprise then

that the large majority of investments

that Hitachi Energy is making is to

boost and accelerate production from

browneld sites. nlike the new

greeneld factory in Virginia, which

is scheduled to produce its rst trans-

formers in the rst quarter of 229,

browneld facilities can be expanded

in a couple of years.

Melles explained: “The biggest

challenge when you are building a

greeneld facility is the civil work

but when you have an expansion, the

amount of civil work is very limited.

This is why when we have a brown-

eld site, basically we can say that,

depending on the complexity, we will

be ready to produce in one and a half

to two years.”

e added: “If it’s a greeneld fac-

tory for producing distribution trans-

formers, you can build it in two years

but when you are building a factory

for very large transformers, where

you need big cranes, strong founda-

tions and a lot of machinery, the time

[to build] is more in the ballpark of

three and a half to four years.”

Looking forward at the potential for

new factories around the world,

Melles says that with the current

market evolution, agreements and

commitments, and visibility that Hita-

chi Energy has for its partners, there

is already sufcient investment to

meet demand through to the early

2030s. The company is, however, al-

ready looking beyond this timeframe.

“We have already been speaking

with a European customer about

what might be needed between

2032-2040,” said Melles. “Particu-

larly in the transmission utility

space, there is already the visibility

of the investment plan. I’m pretty

positive that within the next two or

three years we are going to collect

enough information to understand

where else the investment is going to

materialise. Right now, it’s a bit too

early to say because we are investing

in every region, so we need to ensure

that the capacity is going to come.”

In the meantime, servicing the exist-

ing eet will continue to be an impor-

tant part of the picture. Earlier this

year, Hitachi Energy announced that

the company will strengthen its ser-

vice capabilities and portfolio by

creating of a dedicated service busi-

ness unit, where it will consolidate its

service offering from the different

parts of the company.

“It will be a very important growth

engine but will also be a very impor-

tant part of our value proposition to

support partners. There are three ele-

ments that our partners are looking

for. The rst is how to prolong the

life of the existing assets to optimise

its usage. Secondly, the large major-

ity that we are selling are assets that

we can digitise. So, the customers

are asking how we can help them

digitise those assets to help them

take preventive actions through pre-

ventive maintenance, preventive

support, etc. Then the third element

is, what else can we supply to our

partners as part of the service – trans-

formers as a service, energy as a

service and so on. There are many

elements of the service value in digi-

talisation,” said Melles.

“We will offer a single face for the

whole Hitachi Energy portfolio, and

hopefully be the partner of choice for

our customer – not only to support

daily service activities but also to

optimise the asset, digitise the asset

and then to provide even more ser-

vices that the customer is going to

look for.”

Melles sees these as “super excit-

ing” times for the energy transition

and Hitachi Energy. He concluded:

“Hitachi is Energy is not only tech-

nology leader but is also market

leader. We are the largest supplier of

transformers and high voltage equip-

ment and systems in the world, and

we appreciate the loyalty and con-

dence that our customers and partners

are showing us.”

our partner and also engage our sup-

pliers on their raw materials and

semi-nished goods we need to sup-

port operation. Having visibility on

manufacturing also allows us to en-

gage, within the frame agreement,

our own suppliers or machinery that

we need for the factory.”

In line with this approach, Hitachi

Energy recently announced that it is

also investing heavily in manufactur-

ing for full integration on the compo-

nent side – bushings, tap-changers

and insulation.

Innovation in transformer design,

development and production are also

supporting speed of delivery as well

as reducing environmental impact.

As Melles put it: “Technology is the

core of how we design, engineer,

produce and manage the lifetime of

the transformer.”

He says the company is embedding

articial intelligence and digitalisa-

tion as much as possible in its equip-

ment, as well as focusing on how it

standardises and modularises its

manufacturing. “In this way, we can

be faster and have much simpler

acn an eann

 e ca an ue

collar talent is key to the

Hitachi Energy ethos

   esee

transformer: Hitachi Energy

s nucn ese s

as alternatives to mineral

oil in its transformers to

support the circularity

an ecansan  s

portfolio

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Special Supplement

collated by Trading Economics. Im-

portantly, long term sovereign rating

also highlights risk. In early 2016

Moody’s rating was adjusted from

Baa3 (stable) lower medium grade to

Ba2 (Negative) Non-investment

grade Speculative, though it improved

to Ba1 positive since late 2024.

The Brazilian government is not

standing still. It is trying hard to at-

tract investment in its energy transi-

tion. Media and research platform

Green Central Banking examined

Brazil’s green nance efforts in late

2024. The organisation highlighted

that in 2024 when it held the G20

presidency, the country had launched

a G20 taskforce to broaden climate

discussions across central banks, -

nance ministries and others. The

central bank earned the highest green

nance score by reen Central Bank-

ing of any non-European country. It

underlines that Brazil’s climate risk

disclosures aligned to global stan-

dards and a developing currency

hedge programme could reduce costs

for foreign investors. It mentioned

that the $2 billion sovereign sustain-

able bond was a good start, albeit

some experts were concerned the la-

belling was too broad.

Policies and incentives

Foreign investment policies have

managed to attract foreign investors

into the country despite the challenges

and risks. Santander bank cites statis-

tics from UNCTAD showing that Bra-

zil was the fth largest recipient of

foreign direct investment in 2024 with

inows amounting to about $ bil-

lion. This translated into a total stock

of foreign direct investments amount-

ing to about $997.5 billion.

razil’s energy transition is gain-

ing global attention as it pre-

pares to host the global climate

negotiations in 2025 (COP30), balanc-

ing its role as both a major emitter and

a clean energy leader. The government

has set bold climate targets and

launched investment-friendly poli-

cies, yet foreign investor condence

remains tempered by regulatory vola-

tility and economic risks.

Decarbonisation commitments

Brazil has a distinctive position in a

decarbonising world for at least three

reasons. Brazil plays a crucial role in

absorbing and storing CO

, as the larg-

est Amazonian country. It is a large

greenhouse gas emitter, with a 4.3 per

cent global share according to the Cli-

mate Change Tracker, with as much

as 75 per cent of the total emanating

from agricultural and land-use activi-

ties – in most large emitting countries

it comes from energy. Last, but not

least, the share of clean energy as a

percentage of electricity output is

amongst the highest in the world.

The administration of President

Lula da Silva, in power since early

2023, released updated emissions

targets in late 2024. The nation is

targeting to cut greenhouse gas emis-

sions by between 59 and 67 per cent

below the 2005 levels by 2035 and

reach carbon neutrality by 2050. The

nation’s efforts, however, score

poorly. It ranks 28th in the Climate

Change Performance Index, one of

the medium-performing countries.

The policies and actions in recent

years are viewed as insufcient’ by

the Climate Action Tracker.

President Lula wants to improve its

prole but has been facing many chal-

lenges, many historical in nature.

Brazil has been reliant on fossil fuels

and continues to support oil and gas

investments. The government has to

rebuild environmental policy, which

was negatively impacted by policy

rollbacks and budget reductions un-

der the previous Jair Bolsonaro gov-

ernment. It needs to better execute the

slowdown of deforestation which had

surged under Bolsonaro.

Energy mix

Brazil accounts for about 1.8 per cent

of global energy supply, based on

statistics from Energy Institute. Fos-

sil fuels accounted for more than two-

thirds of energy supply and for about

48 per cent of primary energy con-

sumption. Oil was the principal fossil

fuel, accounting for about 48 per cent

of energy supply and 36 per cent of

consumption. The reliance is because

the Latin American giant is one of the

top 10 oil producers in the world.

By comparison, fossil fuels occupy

a tiny share of power generation in

Brazil. About 90 per cent of electric-

ity was sourced from clean energy

sources. Hydroelectric power was

responsible for 55.4 per cent of the

total output 746 TWh in the country

in 22. Renewables, chiey solar

and wind, were responsible for 31.9

per cent, nuclear for 2.1 per cent and

other clean sources for 0.4 per cent.

Wind power installed capacity wit-

nessed a compound annual growth

rate of 17.4 per cent in the 10 years to

2024, reaching 33 GW, according to

IRENA. Solar capacity rose at an an-

nual rate of 87 per cent, to 53.1 GW.

Electricity output from wind and solar

have been the fastest growing in the

country, according to calculations

based on data from Ember Research.

Wind generation’s annual growth rate

was 20 per cent and solar was 87 per

cent. Comparatively, the annual

growth rate for the same period for

nuclear was 0.8 per cent, and for hy-

droelectric power it was 1.6 per cent.

The annual growth rate for coal and

gas red generation was negative 5.

per cent.

Investment environment

With surging renewables growth and

strategic incentives, Brazil offers a

compelling, if complex, landscape

for climate nance and green infra-

structure.It offers a great number of

climate business and investment op-

portunities. Its population size, low

per capita electricity consumption,

and the scope for industry electrica-

tion are some of the growth factors.

Yet, the country’s renewables invest-

ment prole for foreign investors cur-

rently should be viewed as medium

to high risk.

The political environment has been

volatile while policy and regulatory

shifts have led to uncertainty and

created a lack of long term visibility

for investors. Some high prole past

corruption scandals related to state-

owned energy companies further

raises investors’ doubt. Further rais-

ing investment risk, the economy is

expected to grow slowly, at 1.7 to 2.9

per cent, in the coming quarters, in-

ation may hover at about 5 per cent,

and interest rates could stay at

around 15 per cent, based on forecasts

Brazil has actively announced poli-

cies and incentives in favour of energy

transition projects. There are tax relief

measures for investors in approved

infrastructure projects, including

clean energy, typically for equipment

purchases such as wind power equip-

ment and components. In practice,

companies do not have to pay federal

taxes on such equipment which di-

rectly reduce project costs.

The country has also been support-

ing renewable energy through subsi-

dies. For example, it spent about $3.2

billion in subsidies for renewables in

2023 – an increase of 27 per cent over

2022, according to Argus Media. In

August 2024, the country launched

the National Energy Transition Policy

(PNTE) focused on transitioning to a

low-carbon economy. The initiative is

aimed at mobilising about $380 bil-

lion in energy transition related in-

vestments over the next decade. The

projected amount is expected to come

from both domestic investors as well

as foreign. It is designed to be cross-

sectoral and align with climate, scal

and industrial policy.

Investment backdrop

There are several examples of foreign

investments in Brazil’s energy transi-

tion, including from China, Europe

and the US. Italy’s Enel invested in

the 716 MW Lagoa dos Ventos wind

farm in 2021. France’s Voltalia oper-

ates a 320 MW solar farm in the state

of Rio Grande do Norte. Chinese en-

gineering giant Power Construction

Corp. of China (POWERCHINA)

built a 425 MW solar complex in the

state of Ceara. Amazon, Microsoft,

and US tech giants are building data

centres which will be powered by

clean energy.

While these companies may not al-

ways directly invest in generation fa-

cilities, they can sign bankable corpo-

rate clean energy long-term power

purchase agreements. In fact, some

experts argue that Brazil’s abundant

clean energy supply, could lead to a

boom in data centre construction.

Brazil’s ambitious energy transition

goals coupled with government in-

centives makes the country an inter-

esting target for foreign investments.

Should the country be able to build a

relatively stable political and eco-

nomic outlook, foreign investors in-

terest will not lack.

Prepared for The Energy Industry

Times by Joseph Jacobelli, Managing

Partner, Asia Clean Tech Energy In-

vestments Ltd.

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Energy Transition Investment Series

With surging

renewables growth

and strategic

incentives, Brazil

offers a compelling, if

complex, landscape

for climate nance and

green infrastructure.

This is the latest in

a series of country

analyses, where

TEI Times looks at

Brazil’s generation and

conmtion role

policy, emissions

targets and potential

for a future increase

in foreign participation

in domestic

decarbonisation

projects.

Brazil’s green pivot: ambition

meets reality

Electricity generation in Brazil

(2000-2024)

Jacobelli: Brazil has a distinctive position in a decarbonising world

he global drive to reach net

zero emissions cannot succeed

without tackling the toughest

part of the challenge: hard-to-abate

sectors such as cement, steel, alu-

minium, rening, glass and chemi-

cals. These industries are founda-

tional to modern economies,

indispensable to our continued prog-

ress towards a more sustainable en-

ergy future, yet their emissions are

not easily addressed by electrica-

tion and clean fuels alone. The an-

swer lies in carbon capture, utilisa-

tion, and storage (CCUS).

By 2040, CCUS could potentially

capture a third of all industrial

emissions. But to realise this oppor-

tunity, policymakers, investors and

industry must work together to

build an end-to-end carbon value

chain – from capture to transport,

storage, and ultimately utilisation.

Done right, this can evolve into a

holistic carbon ecosystem, where

is both managed as a waste

product and recycled and trans-

formed into a valuable feedstock for

new products and fuels to the maxi-

mum possible extent.

According to the International En-

ergy Agency, current global CO

capture capacity must increase 20-

fold by 2030 to keep us on course

for net zero. Even adjusting the

model to discount entirely any

CCUS-equipped power generation,

the conclusion is undeniable: the

pace of deployment must accelerate

dramatically.

Today, fewer than 50 at-scale

CCUS facilities operate worldwide,

but more than 700 projects are in

development. There is real opportu-

nity here to address one of the trick-

iest problems standing in the way of

the world’s net zero ambitions, if

only we are able to grasp it.

Where is CCUS essential?

Industrial process emissions are fun-

damentally different from those in

power generation. For example:

n Cement: Two-thirds of emissions

stem from the chemical reaction of

calcining limestone into lime. While

efciency improvements and alter-

native materials can reduce the foot-

print, CCUS is the only viable path-

way to tackle these process

emissions at scale.

n Steel: Traditional blast furnaces

release large volumes of CO

. While

hydrogen-based steelmaking is

emerging, it will take time to scale.

CCUS offers immediate emissions

reductions.

n Rening: Combustion and process

emissions make these sectors dif-

cult to decarbonise without CCUS.

For these, there is only one solu-

tion that is proven, scalable and ec-

onomically viable: CCUS.

A proven technology

MHI’s track record demonstrates

what is possible. With over 30 years

of experience, 18 commercial plants

worldwide, and further projects

under construction, MHI has

deployed more capacity to capture

from ue gas than any other

provider.

At Padeswood cement works in

Flintshire, Wales, MHI is co-devel-

oping what will be the ’s rst

carbon capture plant at a cement

production facility. The project is

part of a comprehensive effort to

decarbonise the UK’s cement sec-

tor, aiming to store 800 000 tonnes

of CO

per year.

This larger project, the Hynet

Cluster, is an important demonstra-

tion of cooperation between govern-

ment and industry accelerating the

deployment of CCUS. Industrial

clusters such as Hynet allow for

economies of scale, where CO

from multiple emitters can be trans-

ported via shared pipelines to estab-

lished storage locations. This en-

sures that early projects benet

from shared infrastructure, lowering

the barriers to entry and encourag-

ing investment.

In the steel sector, MHI is work-

ing with ArcelorMittal on a multi-

year trial of carbon capture technol-

ogy in Gent, Belgium to identify

ways to enhance carbon capture and

the use of CCUS technologies in

steelmaking.

Alternatives, particularly hydro-

gen-fuelled reduction of iron ore,

will have a signicant role to play

in the decarbonisation of steel in the

long-term, but these will not be the

only tools. Iron and steel production

already account for about 7 per cent

of global emissions, and demand

for steel is set to grow by another

15 per cent between 2021 and 2050.

The industry should be exploring

ways to scale up and employ clean

hydrogen, and MHI itself is part of

this effort through Primetals Tech-

nologies, but we must recognise the

need to decarbonise an expanding

industry urgently. For that, CCUS

provides an answer.

The CO

value chain

The technical argument for the rapid

deployment of CCUS across hard-to-

abate sectors like cement, steel and

rening is clear and MI is already

demonstrating workable solutions.

To unlock the economic case, the

goal of these efforts must be directed

toward creating an end-to-end value

chain for CO

that can advance its

commercial viability.

The most important condition for

establishing the complete CO

value

chain is the creation of a functional

transport and storage infra-

structure. Wherever there is a clear

path towards permanent CO

stor-

age opportunities, carbon capture

solutions are rolling out to link CO

emitters with permanent storage

sites. At the same time, CO

utilisa-

tion technologies are deploying to

take advantage of these carbon

feedstocks, offering in some cases a

viable alternative to permanent CO

storage.

MHI’s partnerships with compa-

nies like Innium, D-CRBN and

Cemvita are already exploring how

captured CO

can be turned into fu-

els and chemicals. Digital platforms

such as CO

NNE, developed by

MHI and IBM, are providing trans-

parency across the value chain, trac-

ing CO

from capture through trans-

port and storage.

Ultimately, enhanced CO

recy-

cling could create a circular carbon

economy, where carbon becomes a

traded commodity rather than a lia-

bility, but government support is vi-

tal. The E’s Net-ero Industry

Act, which targets 50 Mt of CO

storage capacity by 2030, is a step

in the right direction. Incentives

such as grants, tax credits, and car-

bon pricing mechanisms must com-

plement industrial cooperation and

private investment.

Commercial viability depends on

recognising the cost of inaction: if it

remains free to emit, CCUS will al-

ways look expensive. Carbon pric-

ing, grants, and offtake contracts

can correct this imbalance, ensuring

CCUS competes fairly against un-

abated operations.

The case for dispatchable power

There is a case to apply this same

pragmatic approach to power gener-

ation. The electrication of transport,

heating, and industry – alongside the

rapid rise of AI and digitalisation – is

driving demand to unprecedented

levels. System operators face record

peaks and increasing risks to reliabil-

ity. Renewables remain central to the

transition, especially in the long-

term, but rm, dispatchable low-car-

bon power is equally essential.

CCUS applied to gas turbines pro-

vides a part of that solution. It of-

fers baseload and exible genera-

tion that is low-carbon and capital

efcient. In Japan, MI is demon-

strating this at the imeji No.2

power plant, capturing CO

from a

utility gas turbine and offering a di-

rect model for utility applications.

In the UK, the government’s CCS

infrastructure funding has brought

the Peterhead Carbon Capture Pow-

er Station closer to investment deci-

sion, showing how policy support

can unlock commercial deployment.

Importantly, the build-out of trans-

port and storage infrastructure for

industrial CCUS also reduces barri-

ers for power sector adoption. This

creates synergies that lower system-

wide costs and make CCUS a

multi-sector enabler.

Conclusion

Decarbonising heavy industry and

dispatchable power is one of the

hardest but most essential steps to-

ward net zero. CCUS is proven,

available, and ready to scale. It may

not be the only solution tomorrow,

but today it is one of the few viable

options. MHI’s global projects –

from cement in Wales to steel in Bel-

gium and gas turbines in Japan, the

US and in Europe – show that this

pathway is not theory but practice.

CCUS is the technology that

makes net zero in heavy industry

achievable. Now is the time to seize

the opportunity and scale.

Decarbonising

heavy industry

and dispatchable

power is one of the

hardest but most

essential steps

toward net zero.

Mitsubishi Heavy

Industries’ Professor

Emmanouil Kakaras

believes carbon

capture, utilisation,

and storage is the

answer.

CCUS: The decarbonisation tool

heavy industry cannot do without

TE ENER INDSTR TIMES - OCTOBER 225

Technology Review

Professor Kakaras says

now is the time to seize the

opportunity and scale

Members of the project team from ArcelorMittal, D-CRBN and Mitsubishi Heavy Industries

recently visiting the pilot plant in Gent, Belgium

THE ENERGY INDUSTRY TIMES - OCTOBER 2025

Final Word

anish wind power developer

Ørsted must feel like it is in a

civil war of sorts  ghting the

onslaught against wind farms led by

US President Donald Trump.

In August President Trump issued a

Stop-Work Order, halting work on the

704 MW Revolution offshore wind

farm in Rhode Island. Revolution

Wind, a subsidiary of rsted and a

55 joint venture between rsted

and lobal Infrastructure Partners’

Skyborn Renewables, is fully permit-

ted and was 80 per cent complete at

the time of the stop order. The project

is slated for completion in 2026, at

which point it will deliver power to

Connecticut and Rhode Island.

Construction on the Revolution

wind farm started last year, following

the nal federal approval from The

Bureau of Ocean Energy Manage-

ment Offshore (BOEM). But in late

August it issued the stop-work order,

citing the need “to address concerns

related to the protection of national

security interests”.

To have a project upended at such an

advanced stage is almost unthinkable.

Reacting to the order, which saw

rsted’s share price plummet to a re-

cord low, the Revolution Wind joint

venture led a complaint in the S

District Court for the District of Co-

lumbia on September . The states of

Connecticut and Rhode Island also

initiated legal action against the stop-

work order the same day. The attor-

neys general for Connecticut and

Rhode Island led an injunction on the

basis that the Trump administration

“arbitrarily reversed course and issued

a Stop Work Order without explana-

tion despite the States’ and others’

deep reliance interests”.

The coordinated rebellion might

have paid off. On September 22

, the

US District Court for the District of

Columbia granted the preliminary

injunction, allowing Revolution Wind

to restart impacted activities while the

lawsuit challenging the stop-work

order progresses.

Making the ruling, Judge Royce

Lamberth, S District Court for the

District of Columbia said: “Revolu-

tion Wind has demonstrated likeli-

hood of success on the merits of its

underlying claims. It is likely to

suffer irreparable harm in the absence

of an injunction maintaining the

status quo by granting the injunction

is in the public interest.” e added:

“If Revolution Wind cannot meet

benchmark deadlines, the entire

project could collapse... There is no

doubt in my mind of irreparable harm

to the plaintiffs.”

rsted said it will “resume impacted

construction work as soon as possible,

with safety as the top priority” and

added that it will “continue to seek to

work collaboratively with the S ad-

ministration and other stakeholders

toward a prompt resolution”.

Although it is the rst time a project

has been halted at such an advanced

stage, the move by the Trump admin-

istration is not the rst and will no

doubt not be the last.

In April, the BOEM paused and then

later approved Equinor’s $5 billion

Empire Wind project, which was at an

earlier stage of construction than

Revolution Wind. And in mid-Sep-

tember, the S Department of the

Interior (DOI) led a motion in the S

District Court in Maryland to remand

andor vacate a permit for S Wind’s

proposed $ billion, .7 W project

off Ocean City, Maryland, thus further

escalating the legal and political ght

over offshore energy.

Commenting on the court ling,

Nancy Sopko, S Wind VP of Exter-

nal Affairs, said the company “remains

committed” to building the project.

“After many years of analysis, sev-

eral federal agencies issued nal per-

mits to the project. We intend to vigor-

ously defend those permits in federal

court, and we are condent that the

court will uphold their validity and

prevent any adverse action against

them,” she said.

sing energy as a political football

is always a dangerous game. One se-

nior executive recently told the FT’s

Energy Source that even the oil indus-

try is quietly concerned about the fe-

rocity of the Trump administration’s

war on offshore wind, stressing that

persistent attacks raised the issue of

“sovereign risk” for all foreign inves-

tors, not only renewable energy

companies.

The executive, who wished to remain

anonymous, said: “The concern is that

halting projects that are fully permitted

could provide a future Democratic

administration with a playbook to go

after oil and gas projects in a similar

fashion.”

ollowing the stop-work order on the

Revolution Wind project, Jason ru-

met, Chief Executive of lobby group

American Clean Power Association,

said: “The unfortunate message to

investors is clear: the S is no longer

a reliable place for long-term energy

investments.”

The ultimate outcomes of Revolu-

tion, Ocean City, and other cases that

are sure to follow, will no doubt dis-

suade clean energy companies from

investing in the S. This could subse-

quently see the country lose ground in

the clean tech race.

In late September, the S Depart-

ment of Energy announced that it in-

tends to cancel more than $ billion

in funds that the Biden administration

had pledged to subsidise wind, solar,

batteries and electric vehicles.

The announcement prompted sharp

criticism from California Governor

Gavin Newsom, who said the US was

ceding leadership on clean energy to

China. California, the most populous

S state, has among the most ambi-

tious clean energy and greenhouse gas

emissions reduction goals in the world.

“China’s President i, I don’t

know what else he’s got to applaud

I think he’s going to give Trump a bear

hug when he arrives,” Newsom said

during NC Climate Week in late

September.

Nevertheless, the Trump administra-

tion appears to be unquestioningly

backing its President. S Interior

Secretary Doug Burgum said at a press

conference on September 

that

offshore wind has no future in the US

under the Trump administration and

that the government was reviewing

ve offshore wind projects that are

now under construction.

Speaking to the press at astech in

Milan, Italy, Burgum said offshore

wind was “too expensive and not reli-

able enough”. e said: “Many of those

projects weren’t really about electric-

ity, they were about tax subsidies. I

think the fact that the subsidies have

been either cut back or limited, means

that it is likely that there will not be

future offshore wind built in America.”

Burgum added that there is also op-

position to offshore wind due to con-

cerns about the whale population, as

well as concerns from the Department

of Defense (DOD) and the Federal

Aviation Administration (AA) about

interference with radar systems.

Meanwhile, in an interview with the

FT, Energy Secretary Chris Wright

said approvals for offshore wind farms

were rushed through and there are

legitimate and serious concerns that

are being looked at by multiple gov-

ernment departments. “We are taking

the subject seriously but offshore

wind... the long-term path for it is a

train wreck and that is not a path the

nited States wants to go down.”

Trump said in a social media post

last month: “Amazing phenomenon

 Any Country that relies on Windmills

is DEAD. Their Energy Costs have

gone through the roof, and their popu-

lations are angry. Windmills aren’t

only killing the birds, they’re killing’

lots of bad politicians who are losing

their jobs because of them”

is posts may carry some weight at

home but are unlikely to have much

inuence beyond domestic waters.

What seems to be a single-minded, and

irrationally intense vendetta against

wind, may see Trump win isolated

domestic battles but it will not see him

win the wider war. The global renew-

ables revolution is here to stay.

Vive la Révolution!

Junior Isles

Cartoon by Jem Soar