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January/February 2025 • Volume 17 • No 10 • 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

Greening steel Small is beautiful

Innovations in low-carbon steelmaking

are critical for the industry’s

decarbonisation. Hydrogen offers one

pathway to decarbonisation, says Swiss

Steel Group. Page 13

There is a signicant wave of small

modular reactor projects under design

or construction, as the technology

gears up to play a crucial role in

decarbonisation. Page 14

News In Brief

Trump reverses Biden clean

energy initiatives

Within hours of his inauguration,

US President Donald Trump signed

dozens of executive orders quash-

ing former President Joe Biden’s

policies, including one that threat-

ens the previous administration’s

climate agenda.

Page 2

Brazil passes offshore wind

enabling legislation

Brazil’s Federal Senate has passed

an offshore wind bill that paves the

way for the offshore wind sector to

establish itself in the country.

Page 3

China’s energy law

facilitates energy transition

China’s rst Energy Law entered

into force on January 1, 2025,

marking a milestone in the nation’s

energy legislation.

Page 4

Danish offshore wind

auction fails, other

programmes continue

A 3 GW offshore wind auction in

Denmark recently ended without

any bids and commentators say the

Danish government must now

quickly re-tender with a new auc-

tion design.

Page 7

Nuclear power set to reach

new record in 2025, says IEA

report

There is fresh impetus behind nu-

clear energy in the form of new

policies, projects, investments and

technological advances, according

to a report by the International En-

ergy Agency.

Page 8

Trump election sends wind

sector stocks tumbling

Wind project developers and tur-

bine manufacturers look set for a

tough time in the US, as stocks

tumbled last month following the

inauguration of Donald Trump as

US President.

Page 9

Technology Focus: Estonia

advances grid digitalisation

Following a successful pilot proj-

ect, Elektrilevi, Estonia’s main

network operator, is now rolling out

a Distributed Energy Resource

Management System to manage

the growing amount of wind, solar

and distributed energy resources on

its system.

Page 15

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US President Donald Trump’s decision to pull his country out of the Paris Climate will have a

huge impact of climate change efforts and will test the commitment of other countries.

Junior Isles

EU will triple renewables capacity but still miss climate goals,

says new report

THE ENERGY INDUSTRY

TIMES

Final Word

Even “liquid gold” will

one day lose its lustre,

says Junior Isles.

Page 16

Several global leaders and experts have

stressed that the US withdrawal from

the Paris climate accord will have a

signicant impact on efforts to halt

climate change.

Following Donald’s Trump’s Exec-

utive Order to pull the country out of

the agreement, André Corrêa do Lago

the incoming head of the UN COP30

climate summit said President

Trump’s move has a “huge impact”,

stressing that the US pivot “is going to

make it much more difcult” to limit

global warming and would “have an

immense impact on efforts to keep

temperature rises below 1.5°C”.

As promised, on his rst day in of-

ce Trump once again pulled the US

out of what he described as an “unfair,

one-sided Paris climate accord rip-

off”. The US was the rst country to

withdraw during his rst term as pres-

ident in 2017, a move reversed by for-

mer President Joe Biden in 2021.

“The countries of the global south

have made immense efforts in their

own nations to contain climate

change,” said Corrêa do Lago,

Brazil’s recently appointed climate

negotiator. “Take the case of China.

China is constantly bringing forward

its objectives, for example, this year

it will sell more electric cars than in-

ternal combustion ones.” He also told

the Financial Times that the exit of

the US could allow nations such as

China, India and Brazil to take a big-

ger role in the world’s most important

climate talks.

There are already signs that with the

US out of the Paris Agreement, other

countries are beginning to question

their own position. The FT reported

last month that Argentina’s President

Javier Milei, among the few world

leaders invited to President Trump’s

inauguration, was also considering an

exit from the Paris Agreement.

At the end of January Indonesia’s

climate and energy envoy said targets

to cut greenhouse gas emissions for

countries such as Indonesia were un-

fair when the US, as the world’s larg-

est historical polluter, were reversing

on climate commitments.

Continued on Page 2

European renewables capacity will see

a more than three-fold increase by

2050, yet fall short of climate goals,

according to a new report from Au-

rora Energy Research. The global pro-

vider of power market analytics warns,

however, that this growth will still fall

short of meeting climate goals, with

risk factors such as negative prices,

market saturation, and grid congestion

hindering progress.

Aurora’s inaugural European Re-

newables Market Overview Report

(ResMOR) nds that Over the past

decade, Europe’s renewable energy

capacity has increased to over 528

GW, driven by rising power demand,

supportive policies, higher commod-

ity prices, the phase-out of thermal

power plants, and supply chain im-

provements.

This growth aligns with the EU’s

updated Renewable Energy Direc-

tive, which raises the 2030 renew-

able energy target from 32 per cent to

42.5 per cent. To meet this target, EU

countries aim to add over 600 GW of

renewable capacity by 2030, com-

pared to 2024 levels.

Non-shielded renewables assets

face increasing risk from negative

prices with Central Europe seeing the

lowest negative prices and the Nor-

dics leading in frequency, according

to Aurora’s ResMOR. Although some

countries previously offered protec-

tion against negative price hours in

subsidy schemes, most now provide

little or no protection.

Aurora further highlights market

saturation as a challenge for renew-

ables, emphasising the need for more

energy storage and exibility, which

are not yet deployed to substantially

mitigate price cannibalisation.

Greece, Romania, and Great Britain

are most at risk of renewables market

saturation impacting the merchant

business case.

Aurora anticipates that grid conges-

tion is another major bottleneck for

renewable energy expansion. In 2023,

Europe saw 57.28 TWh of remedial

actions for both renewable and non-

renewable assets, a 14.45 per cent in-

crease from 2022. Germany, Poland,

Great Britain, and Ireland curtailed

the most energy, with remedial ac-

tions as the share of electricity de-

mand exceeded 4 per cent in these

markets, reaching about 9.5 per cent

in Ireland according to the analysis.

Compensation for grid curtailment

varies across Europe and depends on

factors such as the asset set-up, ac-

tion type, and government support

available. Markets like Great Britain,

the Ireland I-SEM, France, and Po-

land compensate rm grid connec-

tions for congestion-based curtail-

ment, but new connections are

mostly non-rm, increasing risk. In

some cases, like Spain, not all ac-

tions are compensated.

Despite these challenges, signi-

cant opportunities are available for

developers to mitigate risks and un-

lock value. Key strategies include

battery energy storage system co-lo-

cation, portfolio diversication, and

accessing additional revenues

through capacity, ancillary, and bal-

ancing markets.

Rebecca McManus, Renewables

Lead, Pan-European Research at Au-

rora Energy Research, commented:

“Negative prices and grid constraints

are signicant risks for renewable as-

sets in the market today, which will

be further exacerbated with more

renewables deployment. It’s vital for

developers to explore opportunities

to de-risk projects such as portfolio

diversication to mitigate impacts.”

The report follows an earlier anal-

ysis published by Montel Analytics,

which shows that power prices could

jump by 50 per cent across Europe if

countries fail to meet their stated

goals for decarbonisation. This high-

lights just how crucial the expansion

of renewable energy is for the af-

fordability of power in the coming

decades.

The latest update to Montel Analyt-

ics’ ‘EU Energy Outlook’ shows that

average European power prices

could reach approximately €100/

MWh by 2060 if the expansion of

renewable energy is delayed and the

use of coal and gas power plants is

prolonged.

This represents a signicant in-

crease on the €65/MWh price level

suggested by the analysis should all

green transition targets be met. These

developments strongly emphasise

the need to implement strategies to

integrate price signals into electricity

demand.

US exit from climate

agreement will have

global ramications

US President Donald Trump puts

global climate targets under threat

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Junior isles

Within hours of his inauguration last

month, Trump signed dozens of ex-

ecutive orders quashing former Presi-

dent Joe Biden’s policies, including

one that threatens the previous admin-

istration’s climate agenda.

One of the Orders halts federal dis-

bursements to manufacturers and in-

frastructure developers, putting put

more than $300 billion of potential

federal infrastructure funding at risk.

The funds affected were provided

under two of Biden’s signature legisla-

tive achievements  the Ination Re-

duction Act and bipartisan infrastruc-

ture law – and include almost $50

billion in Department of Energy (DoE)

loans already agreed and another $280

billion worth of loan requests under

review, according to Financial Times

analysis of the DoE’s loan portfolio.

“All agencies shall immediately

pause the disbursement of funds ap-

propriated” through the acts, the

Trump administration said in an ex-

ecutive order titled ‘Unleash Ameri-

can Energy’.

Among the disbursements immedi-

ately under threat are a $9 billion con-

ditional loan to Michigan-based utility

DTE Energy and another of $3.5 billion

to Oregon-based utility PaciCorp.

Trump’s move to halt the funding has

shaken the clean energy sector and

signalled his intent to undermine

Biden’s industrial policy, particularly

his programmes to speed up the energy

transition.

“The executive orders indicate that

federal funding for EV and battery

manufacturing will be harder to access,

increasing the risk of stranded capital

for manufacturing projects already un-

der way,” said Shay Natarajan at Mo-

bility Impact Partners, a private equity

fund based in New York.

Trump also wants to stop construc-

tion of wind farms on federal lands

and waters. Under another Executive

Order he paused offshore wind leasing

on the US Outer Continental Shelf

(OCS) and mandated a review of the

federal government’s leasing and per-

mitting practices for wind projects.

The Order also stops all relevant agen-

cies from issuing approvals, either

new or renewed, for both onshore and

offshore wind projects until the re-

view is completed.

According to Rystad Energy nearly

25 GW of offshore wind projects, 65

per cent of the US projects in develop-

ment, are unlikely to progress under

the Trump administration.

Ben Standing, Partner specialising

in environment at UK and Ireland law

rm Browne acobson, said: Presi-

dent Trump’s list of climate-related

executive orders – including to with-

draw the US from the Paris climate

agreement, remove oil and gas drilling

restrictions both offshore and on fed-

eral land, ban new wind energy proj-

ects, and revoke electric vehicle tar-

gets – blurs the future path for

policymakers and legislators across

the world.

“On the international front, he is far

from alone in wanting to push back on

green targets. Reform campaigned at

the last election on their removal, and

the Conservatives have recently indi-

cated it considers these targets aren’t

properly thought through.

“It is a stark reminder that even targets

and obligations enshrined into law can

be relatively easily reversed. This high-

lights the importance of democracy in

bringing about change – if the public

does not buy into the measures to re-

duce climate change, then these are

unlikely to be effective, especially

when it comes to making difcult eco-

nomic and lifestyle decisions.”

“If the US, which is currently the

second-biggest polluter after China,

refuses to comply with the interna-

tional agreement, why should coun-

tries like Indonesia comply?” said

Hashim Djojohadikusumo Special

Envoy and brother to the President

of Indonesia.

Speaking at a sustainability forum

in akarta, he said: This is a matter

of justice. Indonesia three tons,

America 13 tons… Where is the

justice in that?” said Hashim, refer-

ring to carbon dioxide emissions per

capita gures.

Indonesia, the world’s sixth-larg-

est polluter, is due to submit new

national targets to cut greenhouse

gas emissions this month under the

Paris agreement. Many countries,

including some in the EU bloc, are

expected to miss the deadline.

Many scientists already say the

world is way off track to meet the

Paris accord goals of limiting the

global average temperature rise to

well below 2C and preferably no

more than .5C from pre-industri-

al times. The UN has predicted that

the temperature rise will reach

2.C this century.

Lord Adair Turner, a British busi-

nessman and academic and current

chair of the UK Energy Transitions

Committee, said in a recent pod-

cast: Let me be absolutely clear,

the moment Trump was elected,

and even more so what he’s now

said, whatever was my estimate of

what’s the best we could limit

global warming to by the end of

this century…

“Maybe before he was elected, I

thought with a lot of good policy,

we might limit it to 1.6 degrees or

1.7. “I’ve added .2 or .3 to my esti-

mate of what we can do, simply

because Donald Trump has been

elected.

“If you think that it doesn’t make

a difference to switch from Biden

supporting clear action on climate

change, to Donald Trump saying

“this is a ‘liberal hoax’ and “I’m go-

ing to drill, baby, drill”, you really

are living in delusion-land if you

don’t think that matters.”

In early December, the World

Bank said it had met a target to raise

00 billion in nance for the

world’s poorest countries in the

next three years, despite the strong

US dollar and scal pressures hit-

ting developed countries. Howev-

er, a Trump presidency threatens

future fundraising from its largest

shareholder.

The International Development

Association (IDA) arm of the

bank, the world’s biggest lender to

poor countries and its biggest

source of concessional climate -

nance, unveiled the largest fund-

raising in its history in December

even as aid budgets around the

globe are stagnating.

Donor governments agreed to

contribute $23.7 billion at a pledge

meeting in South Korea, only a

slight increase on the $23.5 billion

that they pledged the last time the

IDA raised money, in 2021.

The bank will be able to leverage

this further to $100 billion, com-

pared to $93 billion in 2021, by bor-

rowing more from markets, getting

money back from recipients, and

squeezing more headroom from its

top-tier credit rating.

The US remained the biggest

donor as the outgoing Biden ad-

ministration pledged $4 billion, up

from $3.5 billion last time, and $3

billion under Donald Trump’s rst

presidency.

But the US contribution needs

legislative approval, setting up a

potential battle in the new Congress

this year over the funding.

Continued from Page 1

Global natural gas markets are set to

remain tight in 2025 as demand con-

tinues to rise and supply expands more

slowly than before the pandemic and

energy crisis, according to the Interna-

tional Energy Agency’s (IEA) latest

quarterly ‘Gas Market Report’.

Driven by fast-growing markets in

Asia, global gas demand rose by 2.8

per cent, or 115 billion cubic metres

(bcm), in 2024 – well above the 2 per

cent average growth rate between

2010 and 2020. At the same time,

below-average growth in liueed

natural gas (LNG) output kept supply

tight, while extreme weather events

added to market strains.

According to the report, similar dy-

namics are expected to persist in 2025

before the arrival of a wave of new

LNG export capacity, led by the US

and Qatar, that is set to come online

over the course of the second half of

this decade.

The report, which provides a thor-

ough review of market developments

in 2024 and an outlook for 2025, nds

that markets moved towards a gradual

rebalancing last year after the supply

shock that followed Russia’s full-scale

invasion of Ukraine in February 2022.

Still, the global gas balance has re-

mained fragile, highlighting the need

for greater international cooperation to

enhance gas supply security.

Geopolitical tensions have contin-

ued to fuel price volatility in gas mar-

kets and look set to continue doing so

after Russian gas ows through

Ukraine stopped on January 1st fol-

lowing the expiration of a transit deal

between the two countries in the wake

of Moscow’s full-scale invasion.

The pipeline was one of the last two

routes still carrying Russian gas to Eu-

rope nearly three years into the full-

scale war. EU countries will lose about

5 per cent of gas imports in the middle

of winter.

While traders had long expected

ows to stop, the end of the pipeline

route through Ukraine will affect Eu-

rope’s gas balance at a time when de-

mand for heating is high. Slovakia is

the country most affected.

Though the halt of Russian gas via

Ukraine does not pose an imminent

supply security risk for the European

Union, the IEA report says it could

increase European LNG import re-

quirements and further tighten global

market fundamentals in 2025.

It warns that the vulnerability of

Moldova is signicantly greater than

that of the EU, requiring close coor-

dination between Moldova and its

regional and international partners to

ensure energy supply security through

the winter.

In late December Ukraine received

its rst shipment of liueed natural

gas from the US, as the war-torn coun-

try joins broader European efforts to

fully wean themselves off Russian fos-

sil fuels. Europe sources about 40 per

cent of its LNG imports from the US,

but none have ever been directly pur-

chased by Ukraine before.

Cargoes like this are not only pro-

viding the region with a exible and

secure source of power but are further

eroding Russia’s inuence over our

energy system,” said Maxim Timchen-

ko, Chief Executive of DTE.

Investments in energy grid modernisa-

tion and digitalisation have not kept

pace with energy demands and require-

ments over the past years, according to

a new report from global technology

intelligence rm ABI Research.

Given rapid electrication and the

ongoing energy transition toward net

zero, spending on grid digital transfor-

mation needs to accelerate. The report

estimates that aggregated worldwide

investments in grid digitalisation will

grow from $81 billion in 2024 to $152

billion in 2030.

The benets of the digital transfor-

mation of energy grids are huge and

wide-ranging,” explains Dominique

Bonte, VP End Markets and Verticals

at ABI Research. “Most importantly, it

enables the real-time management,

orchestration, and continuous recon-

guration of increasingly complex and

distributed energy networks and assets

while unlocking much-needed addi-

tional generation and transmission

capacity. It also reduces costs in terms

of both grid expansion and operation-

al management, improves grid resil-

ience in terms of reduced downtime

and faster fault recovery, and enhances

overall energy uality and efciency.”

Examples of key grid digitalisation

technologies include: energy grid man-

agement software digital; digital twins;

virtual energy substations; connectiv-

ity and cloud and the use of AI.

However, grid digitalisation faces

multiple barriers and inhibiting factors

ranging from a lack of nancing, rigid

regulation, conservative and protec-

tionist attitudes, aging workforces

lacking “digital” expertise, limited

competition, long infrastructure life-

cycles, and cyber security concerns.

Bonte said: Going forward, it will

be critical for energy utilities and tech-

nology providers to develop agile de-

sign and deployment practices, tap into

innovative funding mechanisms, le-

verage open platforms and ecosystem

cooperation, and address the human

factor of embedding technology into

company processes and culture. There

is no room for failure. Others will be

ready to invest in and take control of

energy assets if needed.”

Headline News

Grid modernisation not keeping up with

new energy demands

Trump reverses Biden’s

clean energy initiatives

n Federal disbursements to manufacturers and infrastructure developers halted

n Offshore wind leases put on hold

Global gas supplies in the balance

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

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Asia News

Renewables developer Masdar has

signed agreements with the Philippine

government to develop up to 1 GW of

solar, wind and battery energy storage

projects by 2030.

The UAE-based company signed an

implementation agreement with the

Department of Energy (DoE) and a

memorandum of understanding

(MoU) with the Board of Investments

of the Republic of the Philippines dur-

ing the Abu Dhabi Sustainability Week

(ADSW) in January. According to a

statement by the Philippine Energy

Department, the aim will be to scale

up to 10 GW within a decade, with an

estimated total investment of $15 bil-

lion (€14.6 billion).

The pact, which follows a November

2024 MoU on energy transition coop-

eration between the Philippines and

the UAE, will support the Philippines’

goal of 35 per cent renewable energy

in power generation by 2030 and 50

per cent by 2040.

The DoE said that under the agree-

ment it will help Masdar with pre-

development activities, technical

studies, securing the necessary rights,

and obtaining approvals and permits.

The DoE will also aid Masdar in ap-

plying for investment incentives and

tax exemptions.

Meanwhile, in December the De-

partment of Energy of the Republic of

the Philippines (DOE) revealed that

the fth round of the Green Energy

Auction (GEA-5), exclusively dedi-

cated to offshore wind projects, will

commence in the third quarter of 2025.

According to DOE, the GEA-5 will

provide offshore wind developers with

secure market access, ensuring long-

term demand for their generation ca-

pacities. DOE said it will also serve as

a timeline guide for all stakeholders.

Philippines taps Masdar as it continues

renewables drive

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Junior Isles

China’s rst Energy Law entered into

force on January 1, 2025, marking a

milestone in the nation’s energy legis-

lation. After decades of fragmented

energy management policies, the new

law aims to set the tone for China’s

future energy developments while

aligning with President Xi Jinping’s

ambitious carbon emissions targets.

The new Energy Law comprises

nine sections that cover a wide array

of topics including energy planning,

development and utilisation, the en-

ergy market system, energy reserves

and emergency response, energy sci-

ence and technology innovation, su-

pervision and management, and legal

liabilities.

Central to the law is the prioritisation

of renewable energy development, in-

cluding a focus on expanding hydro-

power and renewables (wind and solar)

as well as biomass, geothermal and

hydrogen.

The law also includes provisions for

the dual control of total CO

emissions

and CO

intensity, in line with the gov-

ernment’s targets of CO

emissions

peaking by 2030 and achieving carbon

neutrality by 2060 at the latest, as set

out by President Xi Jinping at the 75th

Session of the United Nations General

Assembly in 2020.

In addition, the new law promotes

electricity grid interconnectivity and

pushes for a market-based pricing sys-

tem. It also encourages the develop-

ment of distributed energy, in which

generators are placed closer to areas

where energy will be used, as well as

local development and utilisation. A

green electricity certication system

encourages users to prioritise the use

of renewable energy, and supports the

development of new technologies,

business models and innovations such

as advanced energy storage and smart

microgrids.

For the rst time, hydrogen is in-

cluded in China’s national legislation,

clearly dening its role as an energy

source.

The drafting of the Energy Law began

in 2006, with multiple drafts released

for public comment and three major

revisions made before nal approval

by the National People’s Congress on

8 November 2024.

China has previously enacted several

individual energy laws and regulations

focused on electricity, coal, energy

conservation, renewables and urban

gas management. However, the new

Energy Law provides a comprehensive

framework that integrates these dispa-

rate policies into a cohesive strategy.

Its success will depend on subsequent

policies, regulations and implementa-

tion details that will gradually supple-

ment and improve its framework.

The drafting of the new law will see

a move from a system that primarily

controlled total energy consumption

and intensity to one that focuses on

carbon emissions. The law passed as a

November report from the Centre for

Research on Energy and Clean Air

(Crea) found that that since February

2024, emissions had “stabilised” but

were not in structural decline. Chinese

President Xi Jinping in 2020 set dual

targets for China: to hit peak carbon

emissions by 2030 and achieve carbon

neutrality, or net zero, by 2060.

The Energy Law’s emphasis on en-

ergy security means that coal will con-

tinue to play a role in China’s energy

mix, albeit in a ‘cleaner and more ef-

cient’ manner.

According to the ‘Energy Institute’s

Statistical Review of World Energy’,

coal dominated China’s energy mix in

2023, generating 61 per cent (5753.9

TWh) of the nation’s electricity. Hy-

dropower accounted for 13 per cent

(1226 TWh) and renewables 18 per

cent (1668.1 TWh). Nuclear gener-

ated 5 per cent (434.7 TWh) and gas

3 per cent (297.8 TWh).

n GE Vernova Inc. and Harbin Elec-

tric announced that Chinese state-

owned power utility Shenzhen Energy

Group Corporation Co. Ltd.’s Guang-

ming power plant has achieved the

start of operation in Shenzhen Guang-

ming, a district of Guangdong prov-

ince in China. Powered by three GE

Vernova 9HA.01 advancedc gas tur-

bines, Guangming plant is expected

to deliver up to 2 GW of electricity to

the most populous province in the

country, with a population of approx-

imately 127 million.

China’s streamlined energy law

facilitates energy transition

n Law sets tone for future energy developments

n Renewables development prioritised

Thailand’s 2024 Power Development

Plan (PDP) may undergo signicant

revisions to enhance the management

of its long-term energy supply and

bolster efforts against global warming.

This was suggested by Energy Minis-

try Permanent Secretary Prasert Sin-

sukprasertas after he highlighted the

need for adaptation in response to

evolving energy concerns.

The Energy Policy and Planning Of-

ce is currently evaluating the PDP.

Once the review is completed, the plan

will be forwarded for approval to the

National Energy Policy Council,

which is chaired by Prime Minister

Paetongtarn Shinawatra.

Prasert noted that Energy Minister

Pirapan Salirathavibhaga has yet to

give a decisive response to the pro-

posed plan but conrmed that Pirapan

would ofcially announce any poten-

tial adjustments to the PDP some time

this year.

The potential for adjustments stems

from differences of opinion among

energy experts, despite the plan

having already been subjected to a

public hearing.

Under the current PDP, Thailand’s

power demand is projected to reach

112 391 MW by 2037, a substantial

increase from the present 51 000 MW.

Critics argue that such a high-de-

mand projection could impose signi-

cant investment burdens on the gov-

ernment. These critics also point out

that while the PDP aims to increase the

use of renewable energy, the proposed

share is not enough to align with the

government’s global warming mitiga-

tion strategies.

The PDP outlines an increase in re-

newable energy usage to 51 per cent

of total fuel consumption by 2037, up

from 20 per cent at the end of last year.

Conversely, the use of coal and gas is

expected to decrease to 48 per cent,

compared to nearly 80 per cent at the

beginning of this year. The remaining

1 per cent is attributed to nuclear en-

ergy and innovative solutions designed

to curb fossil fuel reliance and enhance

energy efciency.

Thailand may revise power plan

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Europe News

Janet Wood

Poland has taken a signicant step to-

wards establishing its rst nuclear

power plant by approving funding of

up to 4.7 billion. The State Treasury

is involved in the construction of the

power plant as a direct investor and as

a liability underwriter for other lenders.

The assumed model envisages that

the investment is to be nanced with

0 per cent from euity and 70 per

cent from external capital. External

nancing will be raised after the e-

uity contribution has been made,” the

Treasury said.

Poland aims to complete the nuclear

power plant by 20, intending to re-

place ageing coal red plants. The

state-owned utility company PE will

be responsible for constructing the

.75 GW reactors on the Baltic coast.

Elsewhere the Italian government

has announced plans to establish a

legal framework by the end of 2027 to

bring forward new nuclear.

Italy is ready to return to nuclear

energy. This is an important decision

that will not replace renewable ener-

gies, but rather complement them in

order to ensure a balanced and sustain-

able energy mix,” Energy Minister

Gilberto Pichetto Fratin told Italian

daily Il Sole 24 Ore. Italy ceased its

nuclear energy operations following

the Chernobyl disaster, with the last

nuclear power plants shut down after

a 0 referendum.

Sweden is also re-examining nuclear

permitting in view of plans for new-

build. A new study suggests the ap-

proval process for building new nucle-

ar power plants could be shortened by

three years, while total permit fees

could be cut by half. Pernilla Sandgren,

the investigator, says it currently takes

around  years from the time the ap-

plication is received until the facility

is built and put into operation. The lead

times could be shortened by allowing

construction to start as soon as all per-

mits are in place, through a new law

on principle decisions.

Expected costs continue to rise at the

U’s planned Siewell C, which is now

projected to have a nal price tag of

almost 48.7 billon. This nearly dou-

bles the estimate rst provided by

developer EDF and the U govern-

ment, reecting rising construction

costs and the impact of delays and cost

overruns at the sister site, inkley Point

C. The U Treasury will decide wheth-

er to proceed with Siewell C during

2025’s multi-year spending review.

France’s state auditor has said French

state-owned nuclear company EDF

should not make a nal investment

decision in Siewell C until it has re-

duced its exposure to inkley Point C.

The Cour des Comptes also said EDF

must ensure that any international proj-

ects are protable, and must not delay

the programme of new nuclear projects

in France.

Sweden would go ahead with the 700

MW ansa PowerBridge between

Germany and southern Sweden, now

on hold, if Berlin reforms Germany’s

electricity market, according to

Swedish Energy Minister Ebba

Busch.

She told the told the Financial Times

that the Swedish government would

be prepared to move” on the project

if Germany split its internal electric-

ity market into bidding ones. The

reform would avoid costs being

pushed up for Swedish consumers.

The comment reects attempts to

manage volatile prices across the EU,

which are driven by weather-depen-

dent renewables. Busch said that price

variability makes for a very difcult

business case” for investment.

The EU’s energy regulator Acer

warned recently that electricity net-

work costs could double by 2050,

endangering the overall affordability

of electricity bills” as more strain was

placed on existing grids.

Sweden’s own energy system suf-

fers from regional price discrepancies

as there are poor transmission links

from the north, where most of Swe-

den’s hydropower plants are located.

orwegian politicians also said they

wanted to review interconnectors be-

tween orway and Denmark, Ger-

many and the U after orway saw

prices spike, although prices later

reached record lows. The right-wing

Progress party wants to scrap the con-

nection with Denmark and to reform

deals with the U and Germany to

reduce price infection” to orway

from the continent.

Wind generation provided more of

Great Britain’s electricity than gas in

2024 for the rst time, according to

recent gures.

A new study by Montel Analytics

showed that GB gas red output to-

talled 72.TWh in 2024  down on the

8.8TWh recorded the previous year.

The decrease in demand for gas was

attributed to a rise in renewables out-

put, which totalled 8.TWh. Renew-

ables contributed 45 per cent to the

overall GB power generation mix.

Wind generation was the major con-

tributor to renewable output with a 70

per cent share.

It reached a record high of .4 GW,

and its contribution would have been

even higher if wind generation had not

needed to be curtailed due to con-

straints in the capacity of the transmis-

sion system, the report said.

This long-awaited milestone is a

testament to how much progress the

U has made. It’s time to seie the

moment, to cut reliance on expensive

gas with new renewables, storage, and

grid upgrades. With the phase-out of

coal power completed this year, reduc-

ing gas use is the next big opportunity

for the country,” said Ember analyst

Frankie Mayo.

Expanding the grid was named as a

key aim of energy secretary Ed

Miliband when he set out a ‘Clean

Power 200 Action Plan’ recently.

A Bulgarian tender for the construc-

tion of at least 000 MWh of energy

storage attracted 5 proposals worth

2.5 billion, the country’s energy

ministry said recently.

The projects are competing for grant

funding under the ational infrastruc-

ture for storage of renewable energy”

(RESTORE) process. The call was

launched in August and the state aid

for it was recently approved by the

European Commission. The storage

facilities have to be commissioned by

March 202.

The successful implementation of

battery projects will signicantly

contribute to the security of the en-

ergy system in Bulgaria and the re-

gion,” commented Energy Minister

ladimir Malinov.

Battery storage is also expected to

grow in Germany after Green Flexibil-

ity, a German battery developer and

operator, secured investment from

Swiss private euity rm Partners

Group. Partners Group will initially

make an euity investment of up to

400 million (422 million), while

debt funding will bring the total nanc-

ing to over  billion.

Green Flexibility aims to execute a

0 GW pipeline of battery systems and

monetise storage capacity through

long-term contracts.

Chief Executive Christoph Oster-

mann, said: With Partners Group, we

have the ideal partner to scale our com-

pany and realise our vision of a sustain-

able and, above all, reliable energy

future.”

Janet Wood

A  GW offshore wind auction in Den-

mark recently ended without any bids

and commentators say the Danish

Government must now uickly re-

tender with a new auction design.

The deadline for the rst  GW

of Denmark’s  GW offshore wind

tender expired with no bids and the

second deadline is set for April. The

Danish auction system does not have

any form of state support or revenue

stabilisation and offshore wind devel-

opers are asked to pay for the right to

build a wind farm.

In addition, Denmark does not pay

for the grid connection to the offshore

wind farms. The market for electric-

ity is uncertain as the country’s elec-

tricity demand is freuently all sup-

plied by renewables.

The failed Danish offshore wind

auction was disappointing but sadly

not surprising. Uncapped negative bid-

ding is not a good system. It raises costs

and risk. And it’s even harder when the

bidders don’t know who’s going to be

buying the energy they produce and

how it’ll get to them,” said Giles Dick-

son, WindEurope’s Chief Executive.

The Danish government have got to

change their auction design.”

Lithuania’s energy ministry also re-

cently announced plans to temporarily

suspend an offshore wind tender and

review its terms.

Europe installed just 2. GW of off-

shore wind last year, according to

WindEurope, but targets reuire the

speed of deployment to be increased.

Dickson said that most governments

are not applying good permitting

rules grid connections are facing de-

lays and Europe is not accelerating

the electrication of its economy fast

enough.

The EU must urgently tackle all

three problems. More wind means

cheaper power which means increased

competitiveness,” he said.

owever offshore wind programmes

continue to progress. The European

Commission has approved a 2. bil-

lion Estonian scheme to support re-

newable offshore wind. Poland plans

to auction 2 GW of capacity for off-

shore wind energy for the 2025-20

period.

The U wants a big jump in offshore

wind to meet its 200 clean power

target. In order for the 200 target to

be met, Britain’s offshore wind capac-

ity would have to jump from 5 GW

to 4-50 GW by 200. Ministers are

discussing holding the biggest off-

shore wind auction yet in 2025 to hit

the target.

When you think about the long lead

times for a project like an offshore wind

farm it makes sense to get going with

the CFDs now and throw the book at

this with a huge auction round as soon

as possible, probably next year,” said

one government gure.

Danish offshore wind

auction fails, other

programmes continue

Interconnectors under

scrutiny over price effects

GB cuts reliance on gas as

renewables grow

Batteries attract government and investor funding

n Italy also set to agree legal framework n UK’s plant sees further cost increase

n Estonia wins state aid clearance for support

n GB 2030 target needs offshore wind boost

Polish government agrees funding for

nuclear plant

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Companies News

Wind project developers and turbine

manufacturers look set for a tough time

in the US, as stocks tumbled last month

following the election of Donald

Trump.

Ørsted, the world’s largest offshore

wind developer, announced fresh

write-downs on its US business, caus-

ing shares to fall more than 17 per cent

as the market opened following Presi-

dent Trump’s inauguration, and his

immediate suspension of new offshore

wind leasing.

Mads Nipper, Chief Executive of

Ørsted, said the company was review-

ing Trump’s suspension order, but did

not comment further.

Announcing the impairments, Nip-

per said they were “very disappoint-

ing”, but the company remained “com-

mitted to the US market for the long

term”. He added: “We continue to

navigate the complexities and uncer-

tainties we face in a nascent offshore

industry in the new US market.”

Ørsted also blamed the write-down

on rising interest rates and supply chain

challenges but Trump’s approach is

weighing heavily on the sector. Shares

in Vestas, a Danish-listed wind turbine

maker, fell more than 4 per cent.

Just ahead of the inauguration Euro-

pean renewables across the board, but

particularly wind power, fell. Along-

side Ørsted and Vestas, Siemens En-

ergy, owner of Gamesa, the Spanish-

German wind power giant, fell by 6.11

per cent. EDP Renováveis (EDPR) also

fell sharply, dropping as much as 3.66

per cent. Acciona, meanwhile, fell by

2.94 per cent. Germany’s RWE and

Nordex also saw declines.

Notably, EDP has fallen more than

30 per cent in the space of a year, with

EDPR sinking 43 per cent in the same

period. Prior to the election, EDP had

been downplaying Donald Trump’s

threat, pointing out that support for

renewable energy has been made at the

state level, including Texas, a Repub-

lican stronghold.

The falls came after the then Presi-

dent-elect Trump said: “We are going

to try to ensure that the US has a poli-

cy in which windmills are not built.”

Speaking at a press conference in

Florida, he added: “It’s the most ex-

pensive energy there is. It’s much,

much more expensive than clean natu-

ral gas, so we’re going to try a policy

where there are no wind power plants

being built.”

The US, until Trump’s rise, held the

biggest promise for wind development

globally. According to Mordor Intel-

ligence the wind market until 2027 was

set to grow by 5.87 per cent annualized

thanks to the giga wind farm projects

that the Biden administration was put-

ting in place.

The German government’s majority

stake in power company Uniper has

garnered attention from potential buy-

ers, including Abu Dhabi’s Taqa and

Norway’s Equinor.

As Germany explores options to re-

duce its holding, the value of Uniper

could surpass €10 billion ($10.3 bil-

lion), reported Bloomberg News.

The German government, which

owns 99 per cent of the company, is

seeking to exit its holding, poten-

tially through a single buyer or a stock

offering.

The market value of Uniper on the

Frankfurt stock exchange is almost

€18 billion, but any deal is expected

at a discount due to limited liquidity.

Other interested parties may con-

sider offers or partnerships to divide

Uniper’s assets, which span gas, coal,

hydroelectric and nuclear power plants

in various European countries.

A spokesperson for the German -

nance ministry conrmed that the

government is exploring options to

comply with the European Commis-

sion’s reuirement but has not nal-

ised the timing or form of any poten-

tial transaction.

ABB has signed an agreement to ac-

quire the power electronics business

of Gamesa Electric in Spain from Sie-

mens Gamesa. The acquisition will

strengthen ABB’s position in the grow-

ing market for high-powered renew-

able power conversion technology.

The transaction is subject to regula-

tory approvals and customary closing

conditions and is expected to close in

the second half of 2025. Financial

terms were not disclosed.

The agreement includes the transfer

of around 400 employees, two manu-

facturing plants located in Spain, as

well as additional assets in the US,

China, India and Australia.

A s p a r t o f t h e t r a n s a c t i o n , b o t h c o m -

panies have entered into a long-term

collaboration agreement through

which ABB will provide power elec-

tronics to Siemens Gamesa turbines,

both onshore and offshore.

The power electronics business of

Gamesa Electric reported revenues of

around 70 million euros for the scal

year that ended on September 30th,

2024.

“This targeted acquisition is in line

with our commitments to grow our

portfolio for high power renewable

applications and support productivity

in a low-carbon world. It will expand

our engineering depth for power con-

version and grid connection, and will

add signicant opportunity to service

a large installed base,” said Chris

Poynter, President of ABB’s System

Drives division.

Vinod Philip, Executive Vice Presi-

dent for Wind Power at Siemens En-

ergy, owner of Gamesa, said: “Our

primary goal for Siemens Gamesa is

to achieve protability, which re-

quires a dedicated focus on our core

business. The make-or-buy decision

is a constant consideration for us and

in this case Gamesa Electric will be

better positioned to thrive under

ABB’s umbrella.”

US utility Constellation Energy is to

buy rival Calpine in a nearly $27 bil-

lion deal, combining two of the coun-

try’s largest electricity generators, as

electricity demand to power the rise of

articial intelligence (AI) is projected

to surge.

According to a statement released by

the two companies, the deal, one of the

largest in the US power sector, will

create an industry giant with a cus-

tomer base of about 2.5 million.

Constellation will pay $16.4 billion

for Calpine’s equity through a combi-

nation of $4.5 billion in cash and 50

million of its own shares, and will also

assume the target’s $12.7 billion debt,

for an enterprise value of $26.6 billion.

Shares in Constellation closed more

than 25 per cent higher following the

deal’s announcement, giving the group

a market capitalisation of about $95

billion.

The US electricity system is grap-

pling with a historic rise in power de-

mand after two decades of negligible

growth, partly due to the rapid growth

of data centres that power everything

from AI tools to e-commerce sites.

Consulting rm ICF expects the coun-

try’s power consumption to grow

nearly 20 per cent by 2033.

The tie-up would broaden Constel-

lation’s portfolio as companies like

Microsoft, Google and Amazon

scramble to secure energy for data

centres used to run AI and other ser-

vices. Electricity demand is also in-

creasing because of the building of

new factories in the US and greater use

of electric vehicles and heat pumps.

Calpine, which is based in Houston

and is a privately held company, oper-

ates a large eet of natural gas power

plants in several states as well as the

Geysers geothermal energy complex

in California.

Constellation, which is based in Bal-

timore, said in a statement that it ex-

pected Calpine’s natural gas assets to

help ensure the reliability of the elec-

tric grid. The combination would also

broaden the company’s presence in

Texas, where power demand is grow-

ing quickly, and add more renewable

energy to its portfolio.

“We believe that natural gas and geo-

thermal, along with nuclear, will be

critically important for the nation,”

Joseph Dominguez, the CEO of Con-

stellation, said on a call with investors

and analysts.

He added that it was important to

ensure that energy resources were not

only sustainable, but reliable as well.

“We believe that natural gas and clean

energy, blended together, will be very

attractive to customers,” Dominguez

said.

Lhyfe, a producer and supplier of

green and renewable hydrogen for

mobility and industry, and Abu Dhabi

Future Energy Company PJSC – Mas-

dar, the UAE’s clean energy devel-

oper, have signed a Memorandum of

Understanding (MoU) to explore po-

tential co-development opportunities

in large-scale green hydrogen produc-

tion projects in Europe.

The MoU is part of the strategy an-

nounced in 2024 by Lhyfe to co-de-

velop projects with nancial, indus-

trial investors and experienced

partners seeking to invest in green

hydrogen production projects.

Through this strategic partnership,

the two companies plan to explore

collaboration and investment oppor-

tunities across the green hydrogen

value chain, with a focus on co-devel-

oping large projects. This collabora-

tion will leverage their complemen-

tary abilities and support their

ambitions to drive and develop the

sector.

Lhyfe is one of the pioneers in the

green hydrogen sector and is one of

the fastest-growing players. Estab-

lished in 2019, Lhyfe already has four

installed green hydrogen production

sites in Europe, and several other sites

under construction. Lhyfe has demon-

strated its industrial capacity to build

and operate production sites of in-

creased capacity. Its pipeline of proj-

ects represents a total installed capac-

ity of 9.5 GW and includes several

large-scale projects at advanced stages

and ready to accelerate.

Masdar is aiming for a renewable

energy portfolio capacity of 100 GW

by 2030, supporting the target set in

the UAE Consensus to triple global

renewables capacity by the end of this

decade, and aims to be a leading pro-

ducer of green hydrogen in the same

timeframe. It is targeting 1 million

tonnes per annum of green hydrogen

or equivalent derivatives in the UAE

and globally within a decade.

Constellation Energy

to buy Calpine as AI

drives power demand

Lhyfe and Masdar eye co-development

of green hydrogen

Uniper attracts early interest

from potential buyers

ABB to acquire power electronics

business of Gamesa Electric

Trump election sends wind

sector stocks tumbling

Danish offshore wind project developer Ørsted, along with several European companies with businesses in the US,

have witnesse signicant eclines in maret vale following  resient onal Trms attac on the win ower

sector. Junior Isles

he global steel industry is re-

sponsible for approximately

7-9 per cent of human-induced

greenhouse gas emissions and 11 per

cent of CO

emissions, making it a

major contributor to global warming.

The iron and steel industry, howev-

er, is widely regarded as one of the

hardest sectors to decarbonise due to

its high heat demand, reliance on car-

bon as a process input, low prot

margins, capital-intensive nature,

long plant lifespans, and global trade

challenges.

Producing the large amounts of

heat required for many steel process-

es without emitting CO

remains a

major hurdle, as coal is typically

used both as a heat source and within

the production process itself. Fur-

thermore, the decades-long opera-

tional lifespan of steel plants, the ab-

sence of clear nancial incentives for

decarbonisation, and price volatility

create signicant barriers to adopting

carbon-reducing technologies.

In 2011, the Council of the Europe-

an Union outlined a roadmap to

achieve a competitive low-carbon

economy in Europe by 2050. The

roadmap mandates the European in-

dustry to reduce its CO

emissions by

80-95 per cent compared to 1990

levels by mid-century. In line with

the Paris Climate Agreement, the

steel industry is actively working to

reduce CO

emissions by developing

alternative process technologies.

A key focus is replacing carbon as

a reducing agent and energy source

with hydrogen derived from renew-

able electricity (green hydrogen).

However, the availability of the vast

amounts of hydrogen required is not

yet sufcient and is unlikely to be in

the short-term. Nevertheless, green

hydrogen represents a promising en-

ergy carrier for decarbonisation, con-

tributing to a diversied and sustain-

able energy supply critical not only

from an ecological but also from an

energy security perspective.

Innovations in low-carbon steel-

making are critical for the industry’s

decarbonisation. Among the most

promising advancements is hydro-

gen-based direct reduction, where

iron ore is reduced to iron using hy-

drogen gas (H

). Unlike traditional

methods, this approach releases only

water vapour instead of CO

Hydrogen can be extracted from

hydrogen-bearing fuels, such as nat-

ural gas and biogas, and from water

using electrolysis. The primary

source of hydrogen production is

currently natural gas, accounting for

around three quarters of the annual

global dedicated hydrogen produc-

tion of around 70 million tonnes. Ac-

cording to the World Steel Associa-

tion this accounts for about 6 per

cent of global natural gas use. The

International Energy Association

(IEA) notes that hydrogen produc-

tion reached 97 Mt in 2023, of which

less than 1 per cent (less than 1

Mtpa) was low-emissions. Low

emissions hydrogen relies mostly on

production from fossil fuels with car-

bon capture. Hydrogen from electrol-

ysis makes up a very small share of

this total remaining below 100 kt in

2023.

This is set to grow going forward

but numbers remain relatively small.

According to the IEA’s ‘Global Hy-

drogen Review (GHR) 2024’ annual

production of low-emissions hydro-

gen could reach 49 Mtpa by 2030, an

increase of more than a quarter on

the 38 Mtpa by 2030 reported in its

2023 publication. If projects at the

very early stages of development

(such as those where only a co-oper-

ation agreement among stakeholders

has been announced) are excluded,

annual production of low-emissions

hydrogen could exceed 26 Mtpa by

2030. More than 45 per cent of the

projects in terms of potential produc-

tion volume are undergoing feasibili-

ty studies, and a similar share (38 per

cent) are at early stages. Committed

projects – i.e. those that have taken

FID or are under construction – ac-

count for only 7 per cent (3.4 Mtpa)

of the new low-emissions hydrogen

production announced by 2030, of

which 55 per cent is from electroly-

sis and almost 45 per cent from fossil

fuels with CCUS projects. Neverthe-

less, this is a notable increase from

the 4 per cent (1.7 Mtpa) reported in

the GHR 2023.

The review notes that approximate-

ly two-thirds of low-emissions hy-

drogen production in 2030 could

come from electrolysis, and this

could rise to almost 75 per cent if

projects at the early stage of develop-

ment are also included.

The Swiss Steel Group is already

employing hydrogen where suf-

cient green energy is available.

However, downstream processes

such as hot forming and heat treat-

ment in steel production still rely

heavily on natural gas, leading to

signicant CO

emissions.

To remain globally competitive and

meet climate targets, substantial in-

vestments are required in the electric

arc furnace (EAF) route. CO

reduc-

tions are not only mandated by legis-

lation but increasingly demanded by

end consumers.

The scale of this transformation is

immense. Europe’s largest steel-

works currently consumes 4.3 TWh

of electricity annually. Transitioning

from coal based production to hy-

drogen-based methods will require

approximately 46 TWh – 4.5 times

the electricity consumption of Ham-

burg. Only 8.5 TWh of this will

power the plant directly, with the re-

maining 37 TWh needed for hydro-

gen production.

Through its EAF-based steelmak-

ing process, the Swiss Steel Group is

at the forefront of sustainable steel

production. By leveraging green

electricity from renewable sources

such as hydro, wind, and solar pow-

er, the company signicantly reduces

its carbon footprint.

“Hydrogen represents a transforma-

tive opportunity for the steel industry

to decarbonise at scale,” said Frank

Koch, CEO of the Swiss Steel

Group. “By embracing innovative

technologies and investing in green

hydrogen, we are shaping a more

sustainable future for our industry

and the planet.”

Innovations in low-carbon steelmaking are critical for the industry’s decarbonisation. TEI Times looks at how

wiss teel ro is alrea ecaronising an emloing hrogen where sfcient green energ is availale

Hydrogen in the steel Industry:

a pathway to decarbonisation

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Energy Outlook

Low-emissions hydrogen

production by technology,

status and region based on

announced projects and in

the Announced Pledges and

Net Zero Emissions by 2050

Scenarios, 2030. Source: IEA,

Global Hydrogen Review 2024

Steel production today

teel roction is ene  two main rotes the iron orease

route and the scrap-based route.

 ron orease last frnace rote ron ore is comine with

additives, coke, and reducing agents such as coal, oil, or gas to

produce liquid pig iron, which is then converted into crude steel

in basic oxygen converters. This method results in approximately

55 million tonnes of CO

emissions annually in Germany alone,

accounting for around 28 per cent of the nation’s total industrial

emissions  signicant ortion of these emissions arises from the

process-related combustion of coal and coke.

 irect ection irect rection lants eliminate the nee for

coking coal. Current facilities primarily use natural gas, halving CO

emissions compared to traditional blast furnaces. Future plans in-

volve increasing the share of hydrogen as a reducing agent, which

would further decrease CO

emissions and increase water vapour

output. The sponge iron (Direct Reduced Iron – DRI, or Hot Briquet-

ted Iron – HBI) produced in DRI plants is processed into crude steel

in electric arc furnaces (EAF).

 craase seconar steelmaing s reccle carefll

pre-sorted steel scrap without the need for iron ore. This secondary

roction metho is signicantl more energefcient an emits

much less CO

compared to primary blast furnace production. Re-

cycling steel scrap can save approximately 1.67 tonnes of CO

per

tonne of steel produced while conserving natural resources.

build four advanced SMRs generat-

ing around 320 MW, with the poten-

tial to expand to 12 reactors. Addi-

tionally, Google said in late 2024 a

deal to procure up to 500 MW from

SMRs, to be deployed by Kairos

Power between 2030 and 2035.

In the UK, Prime Minister Keir

Starmer announced the establishment

of ‘AI Growth Zones’ to support AI

data centres, beginning in Culham,

Oxfordshire. These zones will col-

laborate with the private sector to

explore renewable energy solutions,

including SMRs, to sustainably power

AI development.

The global marine shipping sector is

highly carbon-intensive and accounts

for about 3 per cent of global CO

emissions, making it particularly

challenging to decarbonise. Numer-

ous solutions are being explored by

hundreds of companies and stake-

holders, including renewable energy,

hybrid systems, fuel cells, larger bat-

teries, ammonia, biogas, biofuels,

green hydrogen, green methanol, and

SMRs.

The concept of nuclear propulsion is

not new; it is widely used by the na-

vies of various countries. A report by

Lloyd’s Register suggests that SMRs

could revolutionise the maritime in-

dustry by providing safer, more reli-

able, and emissions-free shipping so-

lutions. However, the report

acknowledges that widespread adop-

tion faces hurdles such as regulatory

uncertainty and the need for strong

social acceptance. International stan-

dards and goal-based regulations are

currently being developed to facilitate

broader implementation. One notable

example is Norway’s programme to

utilise Generation IV SMRs.

The Norwegian NuProShip proj-

ect, spearheaded by shipbuilder

VA R D a n d b a c k e d b y v a r i o u s m a r i -

time organisations, has concluded its

rst phase of assessing nuclear power

for commercial shipping, evaluating

99 different reactor technologies.

Following this initial review, three

hat are Small modular reac-

tors (SMRs)? In nuclear

power, reactors are broadly

classied by capacity: 700 MW or

more for large conventional reactors,

up to 300 MW for SMRs, and up to

10 MW for modular micro reactors

(MMRs), according to the Interna-

tional Atomic Energy Agency (IAEA).

Advantages of SMRs over larger

plants include that they can be as-

sembled in a factory, the installation

is simpler, they have increased safety

features, their fuel requirements are

reduced and their deployment is more

exible, including off-grid and remote

areas, highlights the IAEA. The agen-

cy notes that the global decarbonisa-

tion momentum positions SMRs

uniquely due to their smaller size and

lower upfront costs.

Widespread innovation across nu-

merous countries has led to nearly

70 SMR designs at various stages of

development and deployment. These

SMRs range in several key techno-

logical buckets, including land-

based water-cooled (14), marine-

based water-cooled (6), gas-cooled

(14), MMRs (13), molten salt (11),

and liquid-metal fast-neutron (10) .

These technologies are detailed in

the IAEA’s report: ‘Small modular

reactors: advances in SMR develop-

ments 2024’.

Recent years have seen a global

surge in interest and development of

SMRs, as highlighted by the IAEA

report. In Canada, construction of the

GE Hitachi BWRX-300 reactor is

scheduled to start in 2025, with grid

connection anticipated by late 2028,

marking orth America’s rst com-

mercial SMR project. France is

pushing SMR advancements through

its France Relance 2030 funds, back-

ing projects such as EDF-NUWARD

and nine other designs. Japan is dis-

cussing six SMR designs and intends

to use its operational High Tempera-

ture Engineering Test Reactor for

hydrogen production. South Korea

has approved the SMART technology

and is developing the innovative i-

SMR, with a new partnership with

Canada for potential deployment. In

the UK, Rolls-Royce is working on a

470 MW Pressuried Water Reactor.

The US has multiple SMR designs

underway, including those by NuS-

cale, Westinghouse, and Holtec,

alongside microreactors and Genera-

tion IV technologies that emphasise

sustainability, economic viability,

safety, and reliability.

Additionally, several countries are

exploring marine-based SMRs for

oating nuclear power plants, with

notable projects from Seaborg Tech-

nologies (Denmark), KEPCO (South

Korea), Russia, and China.

Numerous recent developments

underscore this momentum. France’s

EDF announced a cooperation agree-

ment with Italy’s ENEA. In the US,

Constellation Energy is seeking fed-

eral funding for SMRs at its Nine

Mile Point plant, and NANO Nuclear

Inc recently acquired Ultra Safe Nu-

clear Corp’s MMR technology. The

UK is also considering the BWRX-

300 SMR from GE-Hitachi Nuclear

Energy , which has completed the rst

phase of the UK design assessment

process and advanced to the next

phase.

Two notable applications are driv-

ing the recent surge in SMR develop-

ment: data centres and articial intel-

ligence (AI), and maritime shipping.

The world is experiencing a signi-

cant surge in data centre investments,

driven by digitalisation and AI. Data

centres impact electricity systems in

two main ways: they reuire substan-

tial generation capacity and strain

grid networks. The sharp rise in de-

mand from data centre investments

must be met with additional genera-

tion, predominantly from clean energy

sources. In the US, data centre power

demand rose from 58 TWh in 2014 to

7 TWh in 202 and could reach 580

TWh by 2028, a 229.6 per cent in-

crease, according to the Lawrence

Berkeley National Laboratory. Data

centres are often built away from

major load centres, putting pressure

on grids, typically due to land price

considerations. SMRs are an ideal

solution for powering data centres,

which typically require 10 to 100

MW, according to the International

Energy Agency.

Several projects are underway to

harness SMRs for powering data

centres. In the US, Energy Northwest

is exploring an SMR project with

Amazon and X-energy, aiming to

promising SMR designs have been

chosen for further development in

the second phase. These include

airos Power’s (US) uoride high-

temperature molten salt reactor using

tri-structural isotropic (TRISO) fuel

particles, Ultra Safe Nuclear Corp’s

(US) helium-cooled gas reactor also

employing TRISO fuel particles, and

Blykalla’s (Sweden) lead-cooled re-

actor concept utilising uranium oxide

as fuel. The initiative aims to create

a commercially viable, zero-emis-

sion technology for deep-sea ships

that meets the needs of all stakehold-

ers and requires no subsidies post-

development.

While the investment momentum in

SMR technologies is undeniable,

several signicant challenges remain.

Achieving a competitive cost per

MWh is crucial for economic viabil-

ity. Regulatory barriers pose another

major obstacle, as existing nuclear

rules often cater to larger, traditional

reactors, necessitating substantial ad-

justments for SMRs. Public resis-

tance, driven by safety concerns,

waste disposal issues, and fears of

accidents, can also impede project

progress. Environmental consider-

ations extend beyond safe waste dis-

posal to include potential impacts on

local ecosystems during construction

and operation. Additionally, techno-

logical hurdles such as ensuring reli-

ability, efciency, and cost-effective

production must be overcome.

However, as the industry grows and

matures, and proven technologies are

deployed, the prospects for SMRs

appear promising.

Joseph Jacobelli, head of single-fam-

ily ofce Bougie Impact Capital Ltd.,

has over 30 years’ experience in en-

ergy markets. He promotes climate

nance awareness through his ‘Asia

Climate Finance Podcast’ and publi-

cations, including his forthcoming

book, ‘Empowering Clean Energy’s

Succession’. This commentary draws

from that book.

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Decarbonisation Series

Small modular

reactors (SMRs)

are gaining global

momentum thanks

to their eiilit

enhance safet an

ease of installation.

rrentl there is a

signicant wave of

projects under design

or constrction

as the technolog

gears  to la

a crucial role in

decarbonisation

 articlarl in

owering ata

centres and the

maritime instr

Joseph Jacobelli

elores

A new nuclear wave:

small is beautiful

Jacobelli: While the

investment momentum in SMR

technologies is undeniable,

sasiicacas

remain

limate change leaders have

stressed the world must triple

renewable power generation

capacity by 2030 if the world is to

have any chance of limiting global

carbon emissions to the levels need-

ed to meet climate change targets

under the Paris Agreement. But

while progress in deploying renew-

ables, especially wind and solar, has

been staggering in recent years,

power grids around the world pres-

ent a serious stumbling block. Not

only is signicant additional trans-

mission capacity needed, but there

is also a need for extensive grid

modernisation at the distribution

level, as the electricity generation

landscape transforms.

The growing amount of wind and

solar, an increasing amount of dis-

tributed energy resources (DERs)

such as electric vehicles, and the

need to transmit power to and from

consumers, all mean grids are be-

coming more complex and difcult

to manage. It’s a huge challenge.

With approximately 40 per cent of

the grid being over 40 years old, in-

novation is necessary to ensure that

energy systems can integrate new

technologies and meet future de-

mands effectively.

Philippe Arsonneau, Infrastructure

Segment President at Schneider

Electric, noted: “The grid was built

100 years ago. It was designed to

send power in one direction and

was very siloed. Now we have a

grid that is bidirectional with a lot

of incoming data – whether it is

data coming from charging cars or

data centres. So, in addition to the

challenges of managing intermittent

renewable energy resources, grid

operators are also having to become

data operators as well as grid opera-

tors. While having to operate a grid

that must be exible and reliable,

they also need to be able to manage

data in a more dened and succinct

manner so they can use that data.”

He added: “Transitioning to digi-

tally equipped grids is therefore

crucial to facilitate the integration

of renewable energy sources while

managing emerging energy de-

mands with greater efciency and

reliability.”

In response to grid operators’

challenge, Schneider Electric show-

cased several products and solutions

at the Enlit conference and exhibi-

tion in October last year – one of

which is the advanced deployment

of its Distributed Energy Resource

Management System (DERMS).

Utilities around the world, includ-

ing PG&E and Elektrilevi, are

working with Schneider Electric,

deploying its EcoStruxure DERMS

to help manage the increasing com-

plexity of grid constraints driven by

the rapid growth of distributed re-

newable assets.

Notably, Elektrilevi has started

with a proof-of-concept project and

validated its own acceptance crite-

ria. The company is now in the pro-

cess of rolling out a full project us-

ing Schneider Electric’s Stepwise

approach.

As Estonia’s largest network oper-

ator, Elektrilevi is responsible for

95 per cent of the country’s grid,

bringing electricity to 533 000 elec-

tricity network services customers.

To ensure electricity supply, the

company must maintain and up-

grade 63 000 km of power lines and

25 300 substations throughout the

country.

The current legislation requires

that the network operator develops

the distribution network in its ser-

vice area in a way that ensures the

possibility to provide consistent

network services to market partici-

pants connected to the network, ac-

cording to the legislation and re-

quirements of the licence, taking

into account the reasonable needs of

those participants. For the distribu-

tion network to develop in the right

direction and at the right speed,

feedback from market participants

is essential.

Following this input, Elektrilevi

has drawn up a distribution network

development plan until 2035, which

provides an overview of both the

current network service and devel-

opment perspectives, together with

prerequisites for their realisation.

The amount of DERs on the com-

pany’s network has grown dramati-

cally over the last ve years. DER

capacity has increased 20-fold in

the past ve years, much faster than

forecasted. This is largely due to a

solar boom that has seen solar gen-

eration reaching 800 MW during

the summer months. The expansion

of DERs has created a large gap be-

tween generation and consumption

in summer days (the duck-curve ef-

fect) therefore creating a need to in-

crease monitoring and control over

these new connections.

The challenge, however, is that

most of those connections are non-

controllable and not monitored

(3:1). Connections under 500 kW

are non-controllable and not moni-

tored, whereas connections over

500 kW are controllable and moni-

tored through SCADA (Supervisory

Control and Data Acquisition) sys-

tems. Non-controllable (less than

500 kW) installed power increased

from 200 MW in 2020 to around

600 MW in 2023. Meanwhile,

controllable producers (greater than

500 kW) grew from 60 MW to 200

MW in the same timeframe.

Having entered into an agreement

with a virtual power plant (VPP)

company to expand its exibility

procurement options, Elektrilevi

then needed a system in the control

centre to standardise DER control

and merge it into day-to-day opera-

tions using an Advanced Distribu-

tion Management System (ADMS).

It kicked off a pilot project with

Schneider Electric between 2022

and 2023 in two regional substa-

tions. After testing all features in

the pilot project substations, Elek-

trilevi signed a contract with

Schneider Electric for a full rollout

of DERMS and also expand the net-

work size to the LV network.

The full rollout phase began last

year and will continue with the full

rollout this year. The plan is to ex-

pand the system to one regional

substation at a time to ultimately

cover 95 per cent of the Estonian

grid.

Schneider Electric’s involvement

in the project began in 2019 when

Elektrilevi initially dened the proj-

ect as a Distributed Storage Re-

source (DSR) – later renamed Dy-

namic Connection Management

(DCM). Following a market study,

Schneider Electric was chosen as

the solution provider that best

aligned with Elektrilevi’s needs.

The project started with Schneider

Electric leading the rst design ses-

sions, which included dening three

key use cases. Simultaneously, it

developed a whitepaper outlining

the requirements for integrating the

project with a third-party market.

The project was implemented in

2022, starting with a training phase.

After the training, Elektrilevi was

given nine months to trial the soft-

ware and test all its features.

The pilot project was completed in

November 2023, during which ad-

ditional use cases were identied.

These ndings expanded the proj-

ect’s scope, paving the way for the

larger-scale rollout of the full

DERMS system.

The project has several main

goals. One is to control the majority

of the low-voltage (LV) capacity

that is currently not monitored by

the system. This involves investi-

gating the most cost-efcient meth-

od to integrate rooftop solar instal-

lations into the ADMS using a VPP

platform, which connects directly to

inverters via Modbus. Another aim

is to harmonise the control of instal-

lations more than 500 kW in a

much more standardised way.

To achieve this Schneider Electric

has installed its EcoStruxure

DERMS license, along with full im-

plementation. It notes that DERMS

projects require in-depth technical

analysis of specic use cases to

manage the boom of distributed

generation.

The rst step is to detect the crit-

ical problems and map the current

processes that need adjustment to

adapt to network changes,” ex-

plained Arsonneau. “Elektrilevi fo-

cused on three critical scenarios:

emergency situations, planned

maintenance, and structural con-

straint management.

“To ensure success, Elektrilevi ad-

opted a process-driven approach,

dening acceptance criteria for the

Proof-of-Concept (POC) and the fu-

ture DERMS features for each of

the dened use cases. A key success

factor was implementing a POC

project to validate that requirements

were met while also training key

employees on using DERMS soft-

ware modules.”

He added that this “hands-on ex-

perience” ensured that control room

operators could continue perform-

ing their tasks with familiar pro-

cesses, but now supported by more

efcient tools.

Arsonneau concluded: “We’re re-

ally proud that Elektrilevi described

Schneider DERMS as a ‘well-func-

tioning, out-of-the-box software’

and is using the results to showcase

how DERMS can support regula-

tors in developing new, exible

contract regulations and legislation

to accommodate the evolving ener-

gy landscape.”

Following a

successful pilot

project, Elektrilevi,

Estonia’s main

network operator,

is now rolling

out a Distributed

Energy Resource

Management

System to manage

the growing amount

of wind, solar and

distributed energy

resources on its

network.

Junior Isles reports.

Estonia advances grid

digitalisation

THE ENERGY INDUSTRY TIMES - JANUARY/FEBRUARY 2025

Technology Focus

Arsonneau: Now we have a

grid that is bi-directional with

a lot of incoming data

THE ENERGY INDUSTRY TIMES - JANUARY-FEBRUARY 2025

Final Word

ove him or loathe him, US

President Donald Trump, un-

like many political leaders, is

proving true to his manifesto. He has

wasted no time in acting on his cam-

paign promises, regardless of how

shortsighted those actions may seem.

Following through on his presidential

campaign to stop offshore wind farms

from being built in the US and to with-

draw from the Paris Climate Agree-

ment “on day one”, Trump has left no

doubt that it is America rst, climate

second.

While the global green energy transi-

tion will continue apace, there is no

doubt that US energy policy under the

Trump Administration will be a sig-

nicant drag on progress in slowing

the global temperature rise.

Rachel Cleetus, Policy Director at

the Union of Concerned Scientists,

said the US withdrawal was “a trav-

esty” and in clear deance of scien-

tic realities”.

Meanwhile, André Corrêa do Lago,

the Brazilian diplomat and climate

negotiator, told the Financial Times

that the US withdrawal from the Paris

climate accord for a second time under

President Donald Trump will have a

“huge impact” on efforts to curb

global warming.

Corrêa do Lago , who is the incoming

head of the UN COP30 climate summit

due to be held in Belém, Brazil, said

the US U-turn “is going to make it

much more difcult” to limit global

warming and would “have an immense

impact on efforts to keep temperature

rises below 1.5°C”.

Although he added that developing

nations could step-up to ll the gap,

others are not convinced.

Lord Adair Turner told the Institute

of Environmental Management and

Assessment’s (IEMA) podcast ‘Sus-

tainable Matters’: “Let me be abso-

lutely clear, the moment Trump was

elected – and even more so what he’s

now said – whatever was my estimate

of what’s the best we could limit

global warming to by the end of this

century… Maybe before he was

elected, I thought with a lot of good

policy, we might limit it to 1.6 degrees

or 1.7. [Now] I’ve added .2 or .3 to my

estimate of what we can do, simply

because Donald Trump has been

elected.”

Regardless, Trump remains at best

skeptical of the climate change argu-

ment or at worst, does not really care.

The new US President announced a

“national energy emergency” to re-

verse many of the Biden-era environ-

mental regulations, and a commitment

to “drill, baby, drill” in his inaugural

address, signalling a move to a re-

newed interest in oil and gas explora-

tion in the US.

“We will be a rich nation again, and

it is that liquid gold under our feet that

will help to do it,” Trump told the

audience.

But what happens when that “liquid

gold” becomes a weakened and ulti-

mately obsolete currency? While there

will no doubt be a continued need for

oil for some time to come, all evidence

points towards a diminishing role for

oil in the energy sector.

In its latest World Energy Outlook

the International Energy Agency’s

detailed analysis of market balances

and supply chains brings an overhang

of oil and LNG supply into view dur-

ing the second half of the 2020s,

alongside a large surplus of manufac-

turing capacity for some key clean

energy technologies, notably for solar

PV and batteries. This implies down-

ward pressure on prices and a period

of increased competition among sup-

pliers – hardly a scenario on which to

bet a country’s future economic

prosperity.

At the same time the rapid rise in

clean energy deployment has seen the

cost of wind and solar continue to fall,

while offering countries, especially in

the EU, energy security and protection

against volatile fossil fuel prices.

The Middle East has certainly seen

the writing on the wall and is modify-

ing its canvas to suit the new energy

landscape.

Last month, UAE state-owned re-

newable energy rm Masdar revealed

plans to build a $6 billion, 5 GW solar

plant backed by more than 19 GWh of

battery storage. It is the largest such

storage project ever announced.

Speaking at the opening of Abu

Dhabi Sustainability Week, Chairman

Sultan Al Jaber, who also serves as

Chief Executive of energy giant Abu

Dhabi National Oil Co (ADNOC) and

is the UAE Minister of Industry and

Advanced Technology, said: “This

will, for the rst time ever, transform

renewable energy into baseload en-

ergy. It is a rst step that could become

a giant leap,” Al Jaber said.

“How can we power a world that

never sleeps with energy sources that

do? How can we transform renewable

resources into reliable power? Today...

we have an answer,” Al Jaber said

before announcing the project.

According to the International Re-

newable Energy Agency (Irena), the

Middle East has less than 1 per cent

of the world’s renewable capacity.

But from a low base, it is also the

fastest-growing region outside China,

in terms of adding capacity.

“The perfect recipe [for renewable

energy] exists here,” said Mazin Khan,

Masdar’s Chief Financial Ofcer,

adding that the cost of the new solar

and battery plant would be, for the rst

time, “comparable, if not cheaper, than

conventional gas”.

“We have abundant solar resources.

We have relationships with manufac-

turers that we can leverage to get the

best price possible. The regulatory

market here in the UAE is very com-

petitive and we have a line of com-

mercial banks queueing up to be part

of the project.”

So what do the Middle East and the

rest of the world see, that President

Trump does not?

While the UAE seeks to “power a

world that never sleeps” using inter-

mittent but clean energy sources,

Trump appears to be asleep to the fu-

ture reality.

Although investing in fossil fuels is

detrimental to climate change, it is

arguable that for regions like the

Middle East and big oil and gas pro-

ducers, it makes economic sense in

terms of production for export. How-

ever, Trump’s war on wind turbines,

while favouring a return to domestic

fossil red generation, makes no sense

environmentally nor economically.

There is also the very real prospect

that Trump’s stance will see the US

losing ground in the global clean tech

space. As the UAE was revealing its

new solar project, Saudi Aramco, the

world’s largest oil company, an-

nounced a joint venture that would

start producing lithium, a key ingredi-

ent for batteries, as early as 2027.

Clearly it sees the opportunity that

renewables present.

While Trump continues to focus on

threatening China with higher import

tariffs on goods such as solar panels,

his stance on renewables will only

serve to strengthen China’s leadership

in clean tech.

Some experts have said Trump’s

moves to reverse Biden’s “green”

policies would give an advantage to

China, which is the world’s largest

manufacturer of electric vehicles,

solar panels and batteries.

“China will be happy to wave in the

rear-view mirror of one of its world-

leading EVs, as US manufacturers

hobble on,” said Tim Sahay, Co-Di-

rector of the net zero industrial policy

lab of Johns Hopkins University.

If Trump cares for little else, he is

excited by investment opportunities

and being seen as global leader. Simon

Stiell, Head of the UN climate change

arm, which oversees the Paris agree-

ment, noted that global clean energy

investment last year stood at $2 trillion

– a big enough pie to attract even the

staunchest of green energy critics.

And the thought of the US losing out

to China may rankle Trump even more.

He called the launch of the Chinese

articial intelligence platform Deep-

Seek, a “wake-up call” for US tech

rms. The release of DeepSeek, AI

from a Chinese company, should be a

wake-up call for our industries that we

need to be laser-focused on competing

to win,” he warned.

After dubbing previous adversary

Joe Biden as “Sleepy Joe,” President

Trump might do well to issue a wake-

up call to himself when it comes to

renewable energy and rouse himself

from dreams of liquid gold.

Dreaming of liquid gold

Junior Isles

Cartoon by Jem Soar