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July-Aug 2025 • Volume 18 • No 5• 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

Unlocking China’s

green potential

An unexpected nuclear

cyber threat

TEI Times analyses China’s clean power

market and the potential for a future

increase in foreign participation in

domestic decarbonisation projects. Page 12

When nuclear plants stop generating,

they might not be seen as a potential

risk. However, their cyber security

risk prole remains high. Page 15

News In Brief

Austria calls on EU to

consider resuming Russian

gas imports

The EU must be open to resuming

Russian gas imports in the event of

a peace deal being agreed to end

the war in Ukraine, the Austrian

government has said.

Page 2

Trump measures hit utility-

scale renewables

Renewable power companies face

uncertainty in the US as President

Trump’s tax bill hit clean energy

producers and tariff plans threaten

to raise prices for imports needed

for the industry.

Page 4

New and renewable energy

to drive Indonesian energy

transformation

Indonesia has set a target to add

69.5 GW of additional capacity by

2034, with just over three quarters

to come from new and renewable

energy including storage.

Page 5

UK sets course for energy

transmission reforms

The UK government has decided

against introducing a handful of

price zones in Great Britain that

would have seen electricity prices

diverge across the country.

Page 7

Power markets

transformation leaves most

countries behind

Global power markets are entering

a period of unprecedented transfor-

mation as Asia Pacic embraces the

energy storage revolution, the US

faces rising policy uncertainty and

Europe grapples with implementa-

tion challenges.

Page 8

Industry Perspective

There is a need for further compe-

tition in the UK transmission net-

work. Successfully innovating the

grid depends on recognising the

problem-solving role of indepen-

dent network innovators. Page 13

Technology Outlook

There is no silver bullet for the in-

creasingly complex energy land-

scape. But when paired with human

innovation, articial intelligence

offers a vital tool to help meet the

challenges head-on. Page 14

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The European Commission’s proposal for 2040 climate targets has prompted a call for clear

wind power build-out targets, while fuelling concerns of watering down ambition. Junior Isles

Global energy investment set to rise to $3.3 trillion, says IEA

THE ENERGY INDUSTRY

TIMES

Final Word

Keep your eyes on the

prize, says Junior Isles.

Page 16

The European Commission has pre-

sented its 2040 climate target, reafrm-

ing its determination to reach climate

neutrality by 2050. But targets alone

will not deliver climate action, energy

security and competitiveness, accord-

ing to WindEurope.

The proposal tabled on July 2 is for

a net emissions reduction of 90 per

cent by 2040, based on 1990 levels.

This follows a recommendation from

the EU’s independent scientic advi-

sory board to have a target of 90-95

per cent. However, WindEurope, the

association representing Europe’s

wind power sector, says EU Member

States must translate this climate tar-

get into clear annual targets for the

deployment of wind and other renew-

ables for the period 2031-40.

“It’s that level of visibility that will

drive the investments that will deliv-

er the 2040 target. Otherwise, the

2040 target will remain academic,” it

said.

The Commission’s recent proposal

offers a credible trajectory from the

existing 2030 climate target – which

requires the EU to reduce greenhouse

gas emissions by at least 55 per cent

relative to 1990 – towards the 2050

vision of a climate neutral EU. The

new 2040 target provides investment

visibility on the way to climate neu-

trality and would help avoid stranded

investments in the fossil fuel econo-

my. Once agreed, it would become a

legally binding objective set out in the

European Climate Law.

Commenting on what needs to hap-

pen now, WindEurope said: “Deploy-

ing renewables at scale is now a mat-

ter of energy security and industrial

competitiveness. In line with the

Clean Industrial Deal, the proposed

2040 target sends a clear investment

signal: Europe is going renewable.

Europe is electrifying.”

It stressed, however, that this means

the EU will have to keep ramping up

the deployment of competitive and

home-grown wind energy. But last

year the EU only built 13 GW of new

wind; when it would need to build

more than 30 GW annually to reach

the 2030 target.

“The EU needs to focus on closing

this gap. Otherwise, the proposed

2040 target will quickly become unat-

tainable,” said WindEurope.

The organisation said four things

need to happen as a matter of priority:

n Permitting: National governments

Continued on Page 2

Global energy investment is set to in-

crease in 2025 to a record $3.3 trillion

despite headwinds from elevated geo-

political tensions and economic uncer-

tainty, says a new International Energy

Agency (IEA) report, with clean en-

ergy technologies attracting twice as

much capital as fossil fuels.

According to the 2025 edition of the

IEA’s annual ‘World Energy Invest-

ment report’, investment in clean

technologies – renewables, nuclear,

grids, storage, low-emissions fuels,

efciency and electrication – is on

course to hit a record $2.2 trillion this

year. This, it says, reects not only ef-

forts to reduce emissions but also the

growing inuence of industrial poli-

cy, energy security concerns and the

cost competitiveness of electricity-

based solutions. Investment in oil,

natural gas and coal is set to reach

$1.1 trillion.

“Amid the geopolitical and econom-

ic uncertainties that are clouding the

outlook for the energy world, we see

energy security coming through as a

key driver of the growth in global in-

vestment this year to a record $3.3

trillion as countries and companies

seek to insulate themselves from a

wide range of risks,” said IEA Execu-

tive Director Fatih Birol. “The fast-

evolving economic and trade picture

means that some investors are adopt-

ing a wait-and-see approach to new

energy project approvals, but in most

areas we have yet to see signicant

implications for existing projects.”

Commenting on the major changes

over the past decade, Birol said:

“When the IEA published the rst

ever edition of its World Energy In-

vestment report nearly ten years ago,

it showed energy investment in China

in 2015 just edging ahead of that of

the US. Today, China is by far the

largest energy investor globally,

spending twice as much on energy as

the European Union – and almost as

much as the EU and US combined.”

Today’s investment trends clearly

show a new ‘Age of Electricity’ is

drawing nearer. A decade ago, invest-

ments in fossil fuels were 30 per cent

higher than those in electricity gener-

ation, grids and storage. This year,

electricity investments are set to be

some 50 per cent higher than the total

amount being spent bringing oil, natu-

ral gas and coal to market.

Globally, spending on low-emis-

sions power generation has almost

doubled over the past ve years, led

by solar PV. Investment in solar, both

utility-scale and rooftop, is expected

to reach $450 billion in 2025, making

it the single largest item in the global

energy investment inventory. Battery

storage investments are also climbing

rapidly, surging above $65 billion this

year.

Capital ows to nuclear power have

grown by 50 per cent over the past

ve years and are on course to reach

around $75 billion in 2025. Rapid

growth in electricity demand also un-

derpins continued investment in coal

supply, mainly in China and India. In

2024, China started construction on

nearly 100 GW of new coal red pow-

er plants, pushing global approvals of

coal red plants to their highest level

since 2015.

In a worrying sign for electricity se-

curity, investment in grids, now at

$400 billion per year, is failing to keep

pace with spending on generation and

electrication. Maintaining electricity

security would require investment in

grids to rise towards parity with gen-

eration spending by the early 2030s.

EU 2040 climate ambition

needs clear renewable

build-out targets

THE ENERGY INDUSTRY TIMES - JULY/AUGUST 2025

The EU must be open to resuming

Russian gas imports in the event of a

peace deal being agreed to end the war

in Ukraine, the Austrian government

has said. In June, Austria’s energy

ministry told the Financial Times that

Brussels “must maintain the option to

reassess the situation once the war has

ended”.

Last month US President Donald

Trump was condent he could broer

a peace deal but since then those

chances look increasingly remote,

with the US recently agreeing to equip

Ukraine with weapons to shore-up its

waning defences.

ienna’s stance mars the rst time

since Russia’s full-scale invasion of

Ukraine in 2022 that an EU member

state other than Hungary or Slovakia

has openly oated the resumption of

Russian gas imports once the war is

over.

Austria’s call came as the European

Commission proposed to gradually

ban Russian gas imports from January

1, culminating with a full ban on Rus-

sian gas imports by the end of 2027

– regardless of the outcome of peace

talks. Landlocked countries such as

Austria, Hungary and Slovakia would

be granted longer periods to phase out

short-term contracts for Russian gas,

while the rest of the bloc would have

to put an end to those by June 17, 2026.

Supplies linked to long-term contracts

would come to an end on January 1,

2028.

Commenting on Austria’s position,

Dan Jørgensen, the EU’s Energy

Commissioner, said a potential peace

deal should “not lead to us starting to

import Russian gas again”.

“That would be a very unwise deci-

sion because that would ust be rell-

ing [Russian President Vladimir]

Putin’s war chest with money. I think

that would be to repeat the mistakes

that we have done in the past,” he

added.

Hungarian foreign minister Péter

Szijjártó threatened to cut electricity

exports to Ukraine if Brussels went

ahead with plans to completely phase

out Russian fossil fuels. Almost 40 per

cent of Ukraine’s power imports from

the EU come via Hungary.

The EU plan “completely violates

member states’ sovereignty in setting

their own energy policies”, said Szijj-

ártó, adding that “Russian shipments

have always reached Hungary on time,

at the agreed price, always reliably”.

Slovakia’s Deputy Economy Minis-

ter ladimr imo said his govern-

ment was “not really happy” with the

EU plan, including the concession for

his country to phase out contracts by

2027.

Under separate EU proposals, mem-

ber states would also have to present

plans showing how they would diver-

sify their gas supplies if they were still

receiving Russian gas. The biggest

importer of Russian gas in 2024 was

Italy, according to the think-tank Em-

ber, followed by Hungary, France and

Spain.

Like its EU counterparts, the UK has

recognised that continued reliance on

gas in general is a huge strategic weak-

ness – undermining its industrial and

economic competitiveness and leav-

ing consumers and businesses badly

exposed to price spikes in global gas

markets driven by geopolitical uncer-

tainty, including the current crisis in

the Middle East.

New analysis of government data by

the Energy and Climate Intelligence

Unit (ECIU) has found that over the

four years since gas prices started to

spike, British industry has had to pay

an additional £29 billion ($39 billlion)

for its gas and electricity compared to

the four years before the pandemic.

must “ruthlessly” implement the

excellent Renewable Energy Direc-

tive (REDIII), including the mea-

sures on overriding public interest

and shortened permitting timelines.

n Grids: Optimising and expanding

Europe’s electricity grid is a “no-

brainer”. Not only do more inter-

connectors help with supply secu-

rity, grid investments also reduce

curtailment and lower electricity

costs in the long run. Grid infra-

structure is the number one enabler

to reach the new 2040 target.

n Electrication: National govern-

ments must remove all barriers to

electrication. Governments must

act – by producing more decar-

bonised electricity and incentivis-

ing electricity demand through

smart taxation and targeted state aid.

n Auction design: Governments

should de-risk wind energy invest-

ments with a stable pipeline of two-

sided Contract for Difference (CfD)

auctions.

There has also been concern that

the European Commission has

bowed to political pressure and wa-

tered down the target by including

eibilities, lie international car-

bon credits. This is a rst for EU

climate targets, as both the 2030 and

2050 targets have to be met with

only domestic action. Another e-

ibility is a commitment to integrate

domestic permanent carbon remov-

als into the emissions trading sys-

tem and provide more leeway be-

tween sectors after 2030 to allow

for falling short in some sectors and

compensating in others.

Although the scientic advisory

board has agged its concerns, EU

climate chief Wopke Hoekstra de-

fended the decision. According to

the European Commission’s impact

assessment for the target, the EU

will achieve a gross emissions re-

duction of 75-85 per cent by 2040,

showing that removals are needed

alongside emissions cuts.

The European Geothermal Ener-

gy Council (EGEC) also voiced

concern over the proposal, arguing

that introducing international and

domestic offsets will divert urgent-

ly needed investment in the EU’s

energy, transport, building and ag-

riculture sectors.

“The climate target alone does not

drive investments in Europe. The

Renewable Energy and Energy Ef-

ciency irectives do. The 2040

energy framework, and the Euro-

pean Geothermal Action Plan,

which is to be launched in Q1 2026,

are essential for building energy

security and providing affordable

energy for all,” it stated in a press

release.

Sanjeev Kumar, EGEC’s Policy

Director, added: “With the inclusion

of international and internal offsets,

the 2040 energy and geothermal

frameworks become even more im-

portant as they are the only measure

to attract inward investment in local

energy resources, jobs and com-

petitiveness as well as shielding

Europe from high and volatile en-

ergy prices.”

Continued from Page 1

EU member states will now be able

to channel money into strategic elec-

trication, decarbonisation and clean

tech manufacturing projects follow-

ing publication of a new framework

for State Aid measures to support the

Clean Industrial Deal (CISAF).

In February European Commission

President Ursula von der Leyen pre-

sented the Clean Industrial Deal, the

EU’s strategy to make its economy

more resilient and competitive. At its

core, is the accelerated build-out of

domestic decarbonised energy, the

rampup of direct electrication to

decarbonise Europe’s industry and the

scale-up of clean-tech manufacturing.

The new framework, published on

June 25, builds on the Temporary Cri-

sis and Transition Framework of 2023

and will be a key enabler of the Clean

Industrial Deal. It will be in place un-

til the end of the decade, providing

long-term investment visibility.

“It’s good that the EU’s new state

aid rules help heavy industry invest in

the electrication of their factories. To

get industry running on electricity

rather than fossil fuels will boost Eu-

rope’s competitiveness and energy

security.

“It’s great that so much of industry

wants to electrify with renewables.

And PPAs are an excellent way of

making this happen. They guarantee

the electricity is renewable. And they

deliver new and efcient renewables,

which is what Europe’s industry

wants”, said Giles Dickson, who re-

cently stepped down from his position

as WindEurope’s CEO.

High electricity prices are a chal-

lenge to Europe’s international com-

petitiveness. The new CISAF allows

national governments to offer tempo-

rary relief on electricity prices for

electro-intensive industries.

“Getting this relief comes with con-

ditions, including the development of

renewables, storage, demand-side

eibility or investments in electri-

cation. Good,” said Dickson.

WindEurope sees direct electrica-

tion as the fastest and most efcient

way to decarbonise Europe, noting

that this is especially true for indus-

trial heat processes up to 500°C. These

processes can run on proven tech-

nologies like electric boilers and ther-

mal energy storage. The CISAF rec-

ognises this and prioritises the use of

direct electrication to decarbonise

these processes.

The new CISAF enables govern-

ments to fund clean tech manufactur-

ing projects. CAPEX support for

manufacturing can play a critical role

in supporting the expansion of the

European wind supply chain. This is

consistent with the EU Net-Zero In-

dustry Act target of reaching at least

36 GW wind energy manufacturing

capacity in the EU by 2030.

Dickson also said it is “also very

good news” that investments in Eu-

rope’s grid equipment supply chain

will benet from the CIA fasttrac

approval procedures. The expansion

of renewables hinges on accelerated

grid build-out.

CISAF also foresees support for re-

powering projects. “Repowering is a

no-brainer”, said Dickson. “On aver-

age it reduces the number of turbines

by 25 per cent, while more than tri-

pling the output of the wind farm and

quadrupling the output per wind tur-

bine. Repowering will be essential to

meet our 2030 renewable targets.

CISAF allows governments to sup-

port costs linked to repowering proj-

ects, including dismantling costs.”

Further to the Spanish government

report on the causes of the Iberian

Blackout in April 2025, several indus-

try associations, including SolarPower

Europe and the Global Renewables

Alliance, have issued a joint statement

stressing that solar PV was not the

cause of the blackout.

The joint statement noted: “The

investigation conrms that manag-

ing an electricity system is a complex

and multi-faceted undertaking and is

of great societal importance. Going

forward, the Iberian blackout must

be a moment of learning. Solar PV

already has the capacity to control

voltage, but regulations did not allow

its application.

“This is a call for accelerated invest-

ment in grid resilience and system

eibility – especially through grid

forming inverters and battery storage.

These technologies are already avail-

able and are key to supporting stable

voltage levels, managing variability,

and delivering renewable-powered

energy security.”

The statement followed the Spanish

government’s ndings that the blac-

out was due to “poor planning” by grid

operator Red Eléctrica and power

plants disconnecting improperly.

Announcing the ndings of a 4day

probe into the outage, Sara Aagesen,

Spain’s Energy and Environment

Minister, said several factors com-

bined to leave the country unable to

control a surge in voltage that should

have been manageable.

Aagesen conrmed the outage’s im-

mediate cause was a surge in voltage

on the grid, which triggered the discon-

nection of multiple generation plants

in a cascade that brought down the

system in Spain and Portugal.

Pointing a nger at ed Elctrica, she

described as “bad planning” its deci-

sion the day before the blackout to not

replace a conventional power plant –

either gas or nuclear – that had been

scheduled for operation on the day of

the outage but at the last minute became

unavailable.

Aagesen also blamed the electricity

companies. Many power plants dis-

connected automatically from the grid

to protect equipment from the voltage

surge, but she said: “With the available

information, we can also state that

some of these disconnections occurred

improperly.”

“The next phase will be the adminis-

trative and judicial proceedings that

determine how this whole process

ends,” Aagesen told the Financial

Times. The outage on April 28 left 60

million people across Spain and Por-

tugal without power.

Headline News

Solar not to blame for Iberian blackout, says Spanish government

Austria calls on EU to consider

resuming Russian gas imports if

Ukraine peace deal reached

Austria has said the EU must be open to resuming importing Russian gas if there is a peace

deal ending the war, but the EU’s Energy Commissioner says “that would be a mistake”.

Industry decarbonisation gets a boost with new State Aid rules

Kumar says with the offsets,

geothermal frameworks are now

even more important

THE ENERGY INDUSTRY TIMES - JULY/AUGUST 2025

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Nadia Weekes

Global power markets are entering a

period of unprecedented transforma-

tion as Asia Pacic embraces the en-

ergy storage revolution, the U faces

rising policy uncertainty and Europe

grapples with implementation chal-

lenges, according to Wood Macken-

ie’s latest outloo. ut the rest of the

world is lagging behind.

Investments in Asia Pacic’s power

generation are proected to reach .

trillion over the net decade – 44 per

cent higher than the previous ten

years. Energy storage has emerged as

a mainstream technology, accounting

for 14 per cent of investments through

204 and surpassing both coal and gas

power.

“Power sector carbon emissions have

liely peaed in 2024 as renewables

rapidly displace coal generation,” said

Ale Whitworth, ead of Asia Pacic

Power and enewables esearch at

Wood Macenie. The combined share

of hydro, solar and wind generation is

set to climb from 2 per cent in 2024

to 40 per cent by 200, he added.

espite robust demand growth,

American and Canadian power mar-

ets are eperiencing new costs and

development risks deriving from poli-

cy uncertainty from potential trade ac-

tions and regulatory changes. Power

prices are epected to rise 100 per

cent above previous forecasts.

In Europe, global trade tensions

dampen economic growth and investor

condence, with policymaers con-

fronting compleities, including per-

mitting and grid connection hurdles, in

delivering the energy transition. The

fundamental trajectory toward decar-

bonisation persists, but the pace may

be slower than initially anticipated.

E21’s recently published report,

the enewables 202 Global tatus

Report: Global Overview’, reveals a

troubling picture of surging renew-

able deployment but stalling systemic

transformation.

espite the ambition to triple capac-

ity by 200, current traectories suggest

a shortfall of .2 TW – more than all

renewables deployed to date.

eyond the power system, heat and

fuels still account for more than three

uarters of total nal energy con-

sumption, with renewables only meet-

ing . per cent of this demand. The

report also nds that the electrication

of end use is slow and uneven across

sectors.

Another troubling statistic reveals

that the gap between global regions

continues to widen. According to new

data by the International enewable

Energy Agency IEA, more than

0 per cent of new renewable energy

capacity was added in Asia, Europe

and orth America, while Africa, Eur-

asia, Central America and the Carib-

bean combined represented only 2.8

per cent of global additions.

Commenting on the data, IEA

Director-General Francesco La Cam-

era said “The renewable energy boom

is transforming global energy markets,

driving economies and creating vast

investment opportunities. owever,

not everyone is benetting eually

from this transition. a Camera called

for targeted policies, international -

nancing, and partnerships that unloc

capital and technology where they are

needed most.

A study published in early uly by the

United ations evelopment Pro-

gramme UP shows that coupling

renewable energy targets with support-

ive development policies and invest-

ments could unloc 20 trillion in cu-

mulative savings in the energy sector,

increase GDP by 21 per cent, and in-

crease average per capita GDP by

000 by 200, compared with a

business-as-usual scenario.

An ambitious scenario that builds on

the renewable energy transition with

system-wide investments and policies

aligned with the ustainable evelop-

ment Goals is proected to achieve

universal access to electricity and clean

cooing, lift 1 million people out of

etreme poverty and give 0 million

more people access to clean water and

sanitation.

A report by the Mission Possible

Partnership MPP highlights grow-

ing momentum for an “industrial sun-

belt of countries such as Indonesia

and Morocco, potentially attracting

new industrial plants that can leverage

abundant local sources of renewable

energy.

The MPP reveals a global 1. tril-

lion pipeline of projects spanning key

sectors such as aluminium, chemicals,

cement, aviation and steel – predom-

inantly located in the industrial sun-

belt countries – that have been an-

nounced but are not yet nanced.

inancing of around 20 billion has

already been committed to producing

materials, chemicals and fuels through

clean energy, but a much larger invest-

ment opportunity eists to unloc al-

most 700 announced projects across

the world.

The World an has said it will lift its

decadeslong ban on nancing nuclear

energy in a shift that aligns with the

political mood in the U and Germany

and aims to tacle an epected dou-

bling of electricity demand in the de-

veloping world by 20.

The ban said private sector invest-

ment should drive capacity growth but

businesses would need support from

the ban, including tools lie guaran-

tees and equity.

The decision by the multilateral

lender to consider nancing nuclear

proects is a signicant boost for the

industry, which eperienced a sharp

contraction following the uushima

nuclear accident in 2011.

The climate crisis and surging power

demand due to the rollout of power

hungry articial intelligence AI tech-

nologies, have prompted many gov-

ernments to reconsider nuclear energy.

More than 0 countries committed at

the CP2 climate summit in ubai

in 202 to triple global nuclear capac-

ity by 200.

Pronuclear countries believe that

support from the World an will help

western companies compete with

state-owned nuclear giants in Russia

and China that have begun building

plants in developing countries.

ast year the European Investment

an opened the door to funding nu-

clear energy projects.

Nadia Weekes

A consortium of atari, Turish and

U companies has committed to in-

vesting about  billion to develop

major power generation projects in

yria, including four combined cycle

gas turbine power plants with a total

capacity of 4 GW and a 1 GW solar

power plant.

The consortium, led by atar’s UCC

olding, includes alyon GE Eneri

at r m lar  a nd Ce ngi  E ne ri f rom

Türkiye, as well as Power Internation-

al UA.

“This agreement mars a crucial

step in yria’s infrastructure recovery

plan, said yrian Energy Minister

Mohammad alashir.

Construction is epected to begin

after nal agreements and nancial

close, and is targeted to nish within

three years for the gas turbine plants,

and less than two years for the solar

plant. nce completed, the proects are

epected to provide over 0 per cent

of yria’s electricity needs.

After 14 years of war, yria’s electric-

ity sector has suffered severe damage

to its grid and power stations, and

faces an aging infrastructure while e-

periencing persistent fuel shortages.

Current power generation capacity is

around 1. GW, down from . GW

before 2011.

In a separate development, the World

an has approved 14 million for

the yria Electricity Emergency Pro-

ect EEP to rehabilitate damaged

transmission lines and transformer

substations, as well as support the de-

velopment of the electricity sector.

eanChristophe Carret, World

Bank Middle East Division Director,

said “Among yria’s urgent recon-

struction needs, rehabilitating the

electricity sector has emerged as a

critical, noregret investment that can

improve the living conditions of the

yrian people, support the return of

refugees and the internally displaced,

enable resumption of other services

such as water services and healthcare

for the population and help icstart

economic recovery.”

AMEA Power is about to commission

Egypt’s rst utilityscale battery en-

ergy storage system E proect, a

00 MWh addition to the utility’s 00

MW solar PV plant in Aswan Gover-

norate commissioned in December

2024.

The 00 MWh E proect, which

has been constructed in a record si

months, will receive a 2 million debt

pacage from the International i-

nance Corporation IC to nance its

integration into the operational solar

plant. The nancing documents were

signed in une by top ofcials from

AMEA Power Egypt and IC orth

Africa in the presence of .E. Mo-

stafa Madbouly, Prime Minister of

Egypt, and other dignitaries.

This E integration is part of

Egypt’s accelerated 4 GW Emergency

enewable Energy Program – a gov-

ernment-led effort to address rising

electricity demand through clean en-

ergy solutions that also help decrease

dependence on imported natural gas.

Egypt to welcome its rst

utility-scale BESS project

Funding reprieve breathes new life

into nuclear industry

Syria signs $7 billion power deal with foreign investors

Power markets transformation

leaves most countries behind

n eneale energ oom no eneing eerone

n Deeper transition could generate economic growth

n linaional onsorim o ines  illion in   o apai

n e proes ill sais more han hal o elerii eman

TE EEG IUT TIME  UAUGUT 202

International News

An ACWA Power-led consortium is to

invest . billion to build ve solar

and two wind projects in four regions

across the ingdom.

audi Arabia aims to generate half of

its electricity from renewable sources

by 200 under plans to reduce the

economy’s dependence on oil reve-

nues. Targets see 10 GW of solar and

wind capacity installed by 200, up

from 4. GW of solar at the end of

2024. Almost all of the audi Arabia’s

electricity is currenty supplied by oil

and gas red power plants.

In a statement, the audi government

said the agreements were “among the

world’s largest at prices that are “the

lowest globally”.

Aided by abundant solar irradiation

and the falling cost of solar panels, the

Middle East is adding renewable elec-

tricity capacity faster than any other

region outside of China.

The two wind proects and two of

the solar proects will be located in

the central iyadh region, while the

remaining solar projects will be in

Mecca, Medina and Aseer. The pro-

ects are epected to be up and running

by 2028.

Saudi Arabia to invest in 15 GW of renewable energy

Photo by Pramod Kee Mee

ones in securing bank loans, in the

rst half of 202 they were able to

have an 11 per cent share of loans for

lowcarbon proects from China’s si

policy bans, according to one do

mestic media source.

Another nancing option is the

rapidly growing domestic green 

nance ecosystem. or eample, one

could attempt to issue onshore green

bonds, despite the highly stringent

approval process. ne can also use a

blend of domestic and offshore 

nance, such as issuing green bonds in

ong ong.

Policies and incentives

The Chinese government deploys a

robust collection of policies and incen

tives to encourage investments related

to the energy transition. Climate action

is a national strategic priority for the

central government, providing minis

tries and local governments alie with

a high level of motivation.

The eisting enewable Portfolio

tandards push industries to switch to

clean energy consumption. There are

a variety of ta incentives, such as

valueadded ta rebates, corporate ta

reductions, eemptions on some im

port duties for certain euipment, and

accelerated depreciation for specic

subindustries.

China has published a Catalogue of

Encouraged Industries for oreign

Investments to promote overseas in

vestors’ involvement in areas such as

electrolysers above  MW, CCU

euipment, Ms, and gridscale

batteries. At the local government

level, foreigninvested enterprises

can participate in obtaining grants for

proect development,  centres,

and the lie, as well as potentially

obtaining preferential land use treat

ment and infrastructure support.

Investors backdrop

While foreign direct investment in

China’s energy transition is not

booming, there is interest on the part

of foreign investors, as shown by sev

eral eamples over the past ve years.

hina is maing signicant

strides in its climate action,

with ambitious goals to pea

C

emissions before 200 and

achieve carbon neutrality by 200. The

nation is rapidly transforming its en

ergy landscape, with clean energy

capacity epanding at an unprecedent

ed pace.

espite challenges such as regula

tory compleities and geopolitical

hurdles, China offers a compelling

investment environment bolstered by

political stability, a vast maret, and

robust supply chains.

o how are China’s decarbonisation

commitments shaping its approach to

a greener future What transforma

tions are occurring in the energy mi,

and how do they reect the country’s

commitment to sustainability Could

the policies and incentives in place

truly attract foreign investment into

China’s green transition

Decarbonisation commitments

China’s climate action has progres

sively intensied in recent years. At

a high level, the obective is for C

emissions to pea before 200 and to

reach carbon neutrality by 200. The

shortterm obectives include non

fossil fuel sources accounting for

about 2 per cent of primary energy

consumption, cutting energy con

sumption per unit of GP by about

1. per cent, and installing about

1200 GW of solar and wind genera

tion capacity by 202. In the near

term, climate action will certainly

accelerate further.

or eample, the Action Plan for

Energy Conservation and Carbon

eduction 2024202’, ocument

2024 o. 12, released by the tate

Council in May 2024, mandated all

provinces to prepare and publish their

respective carbon peaing roadmaps

by the end of 202.

Two other government bodies an

nounced a 202202 lowcarbon

retrot programme in uly 2024.

This initiative mandates a C

emis

sions reduction of 20 per cent by

202 and 0 per cent by 202,

against a 202 baseline. It launched

lowcarbon upgrade pilot proects at

selected coal plants and lays the

groundwor for these plants to add

carbon capture, utilisation, and stor

age CCU after 202.

pecically, these plants will have

to match the emissions of a gas red

power plant 420 grams C

Wh if

they wish to remain in operation, ef

fectively mandating CCU retrots.

Energy mix

In 2024, China reported GP growth

of  per cent, compared to a growth in

electric power output of . per cent

to 10 0 TWh. utput from fossil fuel

sources rose by less than 2 per cent, a

rate below that of any other energy

source. ydropower had a share of 14

per cent, and its output rose by almost

11 per cent during the year. Wind gen

eration accounted for nearly 10 per

cent of output, rising by 1 per cent

yearoveryear. olar P, with a share

of . per cent of output, saw a huge

surge in generation of almost 44 per

cent in 2024. The capacity of wind and

solar P rose at remarable rates, 1

per cent and 4 per cent, respectively.

ver the net few years, the genera

tion mi will continue to shift consid

erably away from coal red genera

tion. olar and wind capacity will

continue to grow at a staggering pace.

The steady decline of the share of

output from coal plants will not stop.

Gas red power plants will be added,

but only moderately, as they will be

principally used as a bridging fuel.

uclear capacity will also increase as

the number of largescale plants

grows, and there could also be some

additions from small modular reac

tors Ms if the various pilot pro

ects are successful. The country is

also rapidly epanding and modernis

ing its grid networ, including huge

investments in ultrahighvoltage

transmission, along with smart grid

and energy storage solutions.

Investment environment

China is not a straightforward desti

nation for overseas investors seeing

energy transitionrelated proects and

solutions. ome of the challenges in

clude formidable domestic players,

evolving regulations typically con

sistent but not always transparent,

capital controls, and highly dynamic

geopolitical hurdles. espite these

challenges, China can be an attractive

investment target. actors that some

what deris the investment include

political stability, a huge and rapidly

growing maret, local partnership

even maority owned oint ventures

and supply chains that are unmatched

in sie and sophistication. Addition

ally, the permitting process is gener

ally fastpaced, such as for utility

scale solar P proects.

In terms of nancing, green loans

can be secured at 2 to 0 basis points

below the loan prime rate currently

. per cent, for eample. Although

foreigninvested enterprises admit

tedly face more hurdles than domestic

audi Arabia’s ACWA Power invest

ed 12 million to develop a 12 MW

solar P and 200 MW wind power

portfolio in Guangdong and also

committed to developing over 1 GW

of similar proects across China

2024. rance’s Air iuide con

structed two blue hydrogen facilities

in hanghai 202. hell previously

announced a plan to invest in a green

hydrogen production proect with a

capacity of 20 MW in ebei Province

2020. Germany’s iemens part

nered with the Chinese rm Guofo

ydrogen for the production of elec

trolysers and green hydrogen 202.

rance’s TotalEnergies is collaborat

ing with Chinese partners on the de

velopment of clean energy products

such as sustainable aviation fuel,

green power, hydrogen, and carbon

capture 202. Germany’s  ried

richshafen AG launched a proect in

henyang, iaoning Province, which

will manufacture products such as

new powertrains for electric vehicles

2021.

It is realistic to be bullish about a

future increase in foreign participa

tion in domestic decarbonisation

proects in China, based on three

liely future trends.

irst, there could be a revival or re

acceleration of the Chinese economy,

which has been in the doldrums at

least since the beginning of the C

I pandemic. econd, the geopo

litical hurdles’ will liely become less

demanding as the pendulum swings

towards a more cooperative and col

laborative relationship with China.

Third, China will continue to open its

doors to foreign investors, such as by

epanding the scope of the Catalogue

of Encouraged Industries for oreign

Investments. owever, the country

will also have to wor hard on chang

ing perceptions regarding access to

its marets.

Prepared for The Energy Industry

Times by Joseph Jacobelli, Managing

Partner, Asia Clean Tech Energy In-

vestments Ltd.

TE EEG IUT TIME  UAUGUT 202

Energy Transition Investment Series

China is transforming

its energy landscape,

with clean energy

capacity expanding

at an unprecedented

pace. This is the latest

in a series of country

analyses, where

TEI Times examines

China’s generation and

onsmpion proles

policy, emissions

targets and potential

for a future increase

in foreign participation

in domestic

decarbonisation

projects.

Unlocking China’s green

potential: policies, progress,

and investment insights

Electricity generation reached

over 10 000 TWh in 2024, with

non-fossil fuel generation

accounting for almost 40 per cent

of total output

Jacobelli says it is realistic to be bullish about foreign participation

he UK’s electricity transmis-

sion network has a problem.

Built in the 1920s, expanded

in the ‘50s, and designed for an era

of coal red power, today’s grid is

attempting to serve the electricity de-

mands of the 21st century with fun-

damentals that date back to the coal

age. But coal power has gone, re-

newables are thriving, and the elec-

trication of heat and transport con-

tinues apace.

The nation is by no means alone in

facing this challenge, of course, but

the UK provides a strong example of

the pressures transmission grids face

today. The government has commit-

ted to almost fully renewable power

by 2030. At the same time, it’s seek-

ing to consolidate its position as a

leader for AI expertise and data cen-

tres. As the nation strives to meet its

net zero obligations, the transmission

network is fast having to adapt to the

variability of wind and solar, large

demand customers, new centres of

power generation, and new consum-

er needs.

Is it any wonder cracks are begin-

ning to show? The UK transmission

system needs modernising and re-

thining to be t for purpose now, let

alone in a near-future where its pow-

er is renewable, and heat and trans-

port needs are met chiey by elec-

tricity. Yet the transmission network

in Great Britain is almost entirely

owned by three companies, each a

natural monopoly.

A grid history

It pays to understand a little of the

history of power transmission in

Britain. In its infancy, mains elec-

tricity was generated relatively lo-

cally and distributed only to nearby

users – often municipal streetlights.

As generation and use became more

distributed, localised grids arose, yet

there was no coordinated national

system. This changed with the 1926

Electricity (Supply) Act, and in

1 the rst nationwide grid.

The edgling grid ran at 12 ,

but in 1950 it was upgraded with

2  interconnectors, offering

lower losses and allowing for thinner

cables for a given amount of power.

By 1965, the need to transmit more

electricity over longer distances was

addressed with new 400  lins.

This very much became the model

for British power transmission

through the seventies and beyond, as

major coal, gas and nuclear plants

provided almost all of the nation’s

electricity demands. However, the

expansion of renewable energy pres-

ents two major challenges.

First, major wind and solar proj-

ects aren’t bound by the same fuel

needs as coal or gas red stations,

so big projects, requiring big con-

nections, may be situated far from

existing grid infrastructure – and

major power users. Second, the out-

put from wind and solar is inherent-

ly variable, meaning the power

transmission system needs eibili-

ty to ensure balance, consistency,

and reliable operation.

New demands, new power

All of this is without reckoning on

the additional challenge of changing

use and growing demand. The gov-

ernment has set an ambitious target

for almost wholly renewable power

under the Clean Power 2030 Action

Plan, describing this as ‘key to a

growing economy, our national se-

curity, and improving our standards

of living’. Achieving it is vital if re-

newable electricity is to displace

fossil fuels for transport, and for

water, space and industrial process

heating – all necessary for the UK

to meet its net zero commitments.

At the same time, the UK is a

front-runner in data centres. It is the

world’s third-largest market for AI

(after the US and China), and the

leader in Europe. The country has

the potential to consolidate its posi-

tion and benet from billions of

pounds of investment in new data

centres, unlocked by the AI Growth

Zones envisaged by the government.

Yet AI is famously energy-hungry,

and delays in connecting new proj-

ects could threaten this highly valu-

able sector.

As the UK leans on clean electrici-

ty to decarbonise transport and heat,

its commercial and domestic users

will need more power, sometimes

distributed to new places – such as

largescale E charging points on

the motorway network. These new

demands are a far cry from those the

grid was built to serve, and it needs

rapid change to meet them.

Regulation and oversight

And yet, when did large-scale na-

tional infrastructure ever move

quickly? The British power trans-

mission grid is owned today by three

companies: National Grid Electricity

Transmission, ScottishPower Trans-

mission, and Scottish Hydro Electric

Transmission Limited (SHETL). Na-

tional Energy System Operator

(NESO), the grid operator for the

whole of Britain, manages the elec-

tricity market – to it falls the chal-

lenge of balancing changing supply

and demand.

The transmission system is effec-

tively a monopoly, run to strict rules

and heavily regulated by Ofgem.

The industry is slow-moving and

risk-averse – it has undergone rela-

tively modest infrastructure devel-

opment since the majority of trans-

mission assets were installed 45-60

years ago.

Despite the urgent need for multi-

ple major upgrades, under the cur-

rent system transmission projects

have limited appeal to investors.

They move slowly, face bureaucratic

hurdles, and carry the risk of regula-

tory penalties that can take a huge

bite out of the returns.

In this environment, it is difcult to

innovate, and challenging to deliver

new capabilities to the grid. Current-

ly it is virtually impossible to build

out transmission assets for large sin-

gleuse customers without a signi-

cant change in regulation. We ur-

gently need an updated Electricity

Act, and a coordinated approach

from industry bodies.

The present setup is not what is

needed to decarbonise the power

grid, or to capitalise on investment

opportunities in the AI sector and

elsewhere.

With a lac of eibility, and a

limited track record in delivering

major infrastructure upgrades, the

incumbents of the transmission in-

dustry risk becoming the bottleneck

in the UK’s plans. They need sup-

port and different non-monopoly

solutions to deliver these huge in-

frastructure upgrades.

Adapt and innovate

If the UK’s power transmission net-

work is to complete its renewables

switch, while adapting to fast-chang-

ing use patterns, it needs a huge

shake up. New grid capacity needs

to come online in a matter of years,

not decades. Investors in major pow-

er-using or generating projects need

the reassurance they’ll get connec-

tions within a viable timeframe – or

they’ll put their money in other

countries where they can.

For some years Ofgem has been

examining the potential of competi-

tion to drive the necessary changes.

Indeed, NESO is now pushing ahead

with the implementation of competi-

tion for selected projects that are:

n Clearly dened their design and

construction can be separated from

the system)

n Large, and high-value

n Not integrated with the rest of the

grid in a way that means only

existing incumbents can deliver

them.

Key to this is the concept of ‘early

competition’, which it is hoped will

drive innovation, and result in fresh

ideas and improved technologies.

The other objectives for competition

include lower costs for consumers,

and projects that are more attractive

to investors, helping speed up their

funding and delivery. It is certainly

progress, but as the rst proect is

tentatively put out to tender, it’s slow

going.

Competition time

Yet ou r ex pe rie nc e i n the co nn ec -

tions space – the so-called ‘last mile’

distribution between the transmis-

sion grid and its consumers and sup-

pliers – shows us that competition is

exactly what is needed.

In 2000, competition in distribution

was opened up so that the estab-

lished distribution network operators

(DNOs) now faced competition from

independent distribution network op-

erators (IDNOs) like Eclipse, and in-

dependent connection providers

(ICPs).

This competition has allowed dy-

namic market entrants who aren’t

bound by geography in the same

way as DNOs. Independents can

plan, provide and adopt new connec-

tions to the grid across the British

power network. And while still regu-

lated by Ofgem, we enjoy greater

eibility to design innovative solu-

tions that can reduce cost or delays

or even contribute to the overall via-

bility of new projects.

This has had a measurable benet

for businesses and investors seeking

to connect critical infrastructure such

as E charging points, battery elec-

tric storage systems, housing and

commercial developments and data

centres. It has also positively impact-

ed the service levels of monopoly

DNOs, as well as improving cost-ef-

fectiveness and service levels for

customers.

We now need an equivalent

change in the transmission network.

While steps towards early competi-

tion are welcome, they are too little,

too slow, to deliver the changes we

need in the time we have. New in-

dependent transmission owner-op-

erators should be created and al-

lowed to build the grid supply

points that major power customers

demand, delivering projects in two

to three years – not the 10-15 they

might otherwise take.

By leveraging the same innovation

and eibility that independent oper-

ators have brought to the distribution

market, the UK can get its transmis-

sion infrastructure on track. But the

status quo does not encourage the in-

cumbent grid operators to drive

change, and the regulator is under-

resourced and lacks the capacity or

remit to do so. Without change, the

sector cannot deliver the progress

needed, the government’s commit-

ments will not be met, and the UK

will miss out on massive wealth-cre-

ation opportunities.

Spencer Thompson is Chief Execu-

tie cer at Eclise oer

There is a need for

further competition in

the UK transmission

network. Successfully

innovating the

grid depends on

recognising the

problem-solving

role of independent

network innovators,

says Eclipse Power’s

Spencer Thompson.

Independent network

companies are key to strategic

grid development

THE ENERGY INDUSTRY TIMES - JULY/AUGUST 2025

Industry Perspective

Thompson: New independent

transmission owner-operators

should be created and

allowed to build the grid

supply points that major

power customers demand,

delivering projects in 2-3

years

Photo by Brett Sayles

operational oversight, scenario plan-

ning and system optimisation. They

enable more accurate forecasting of

renewable input, better balancing of

local and national supply and efcient

integration of new technologies like

heat pumps and EVs.

This work is underpinned by the

‘Digital Spine Feasibility Study’. It

entailed a 6-month feasibility study,

conducted by Arup, in partnership

with Energy Systems Catapult and

the University of Bath, to explore the

concept of a ‘digital spine’ identifying

the needs case and challenges for the

energy sector to facilitate data sharing

through a digital infrastructure.

Through a combination of stake-

holder engagement, market research,

and the consortium’s internal exper-

tise, the concept was explored

through the lens of priority energy

sector use cases, such as eibility

and vulnerable customers, to under-

stand the technical and non-technical

requirements of a data sharing infra-

structure. It dened the technical

architecture, security considerations,

governance models, and the path-

ways and delivery routes necessary

to enable a data sharing infrastruc-

ture within the energy sector. By

doing so, it highlighted the chal-

lenges for the energy sector to facili-

tate data sharing and how these

challenges could be overcome

through an enabling infrastructure.

The completed study presents the

cumulative thinking of the consor-

tium, along with the 100+ individuals

and cross-sector organisations that

were consulted in the co-creation of

what has now become the concept of

a data sharing infrastructure. Indeed,

the consortium developed a concep-

tual technical architecture which

brought the study to life by illustrat-

ing the user journey, key components,

their interactions, and how they

would support identied use cases.

Real-world impact

While AI is often spoken of in abstract

terms, its most valuable contributions

are practical. It does, and should, im-

prove project outcomes, keep time-

lines and budgets under control and

enhance the performance of built

infrastructure.

For example, in the United States,

our team has developed machine

learning models with Whole Foods

and the National Resources Defence

Council (NRDC). To do so, we used

machine learning to train models to

he energy industry is at an un-

precedented turning point: cli-

mate change, population uc-

tuations, and economic and lifestyle

shifts present challenges that tradi-

tional energy planning models were

not designed to address.

On the one hand, we’re racing

against the clock to achieve net zero

by decarbonising as quickly as pos-

sible. On the other, the energy de-

mands of data centres are booming

and we need to build resilience into

our energy supply. There is no silver

bullet for this increasingly complex

situation; however, when paired with

human innovation, articial intelli-

gence (AI) presents a vital tool to help

meet these challenges head-on.

We know from Arup’s recent survey

– ‘Embracing AI: Reshaping Today’s

Cities and Built Environment’ – AI is

already being widely used by engi-

neers, city planners, and digital of-

cers across the globe.

We have seen very high take-up of

the technology and overwhelmingly

positive attitudes. Many respondents

are already using it to enhance energy

efciency and believe it can help re-

newable energy optimisation and

decarbonisation.

With its right-time data analysis and

predictive capabilities, AI can support

in maintaining grid stability and resil-

ience amid rising demands and in-

creasing risks. In addition, it can help

to optimise costs and ultimately, drive

systemic transformation across the

sector.

Cities as energy actors

For more than a century, the role of

cities in the energy system has re-

mained largely unchanged. Electricity

is generated at thermal power stations

and then consumed by urban centres.

In fact, cities consume three-quarters

of global primary energy supplies.

However, in the face of increasingly

scarce resources, AI is being used to

rethink this model.

But now we see AI and digital solu-

tions helping to turn cities and their

residents into active nodes in the

electricity grid rather than endpoints.

For example, it is enabling local en-

ergy systems to anticipate demand by

integrating buildings’ battery energy

storage systems (BESS) and electri-

cal vehicle (EV) batteries into the

grid, controlling rooftop solar panels

and optimising heating and cooling

networks.

In this model, where cities and their

residents are active participants, grid

operators have complete transparency

over energy supply and demand to

anticipate future needs. What’s more,

surplus revenue from energy can

subsidise poorer residents or be in-

vested in community initiatives, re-

ducing wastage.

Interoperability is key

Embedding AI into our energy sys-

tems and realising the benets of this

relies on interoperability. This means

that data can be shared across plat-

forms, projects and sectors so that all

the different components of the energy

system, from solar panels to electric

vehicles and grid operators, can com-

municate with one another. By con-

trast, when AI systems operate in

isolation, and are conned to specic

projects, they create and operate in

silos of data. This hinders comprehen-

sive planning.

Interoperability is, therefore, at the

heart of an intelligent energy system.

It facilitates optimal resource alloca-

tion and adaptive infrastructure de-

velopment, by revealing where and

when resources are being used in real-

time. This can help to forecast de-

mand, optimise energy distribution

and efciently integrate renewable

sources.

Interoperability is not merely aspi-

rational; it is a current technical and

social necessity. Achieving it relies on

standardised data models and frame-

works, which protocols and govern-

ment policy must evolve to support.

This is not only to achieve adequate

data sharing, but also to manage cyber

security risks and establish trust

among market actors. Indeed, like

any technology, incorporating AI into

the operation of critical infrastructure

might introduce new cyber security

vulnerabilities. Robust measures to

protect against this are crucial.

A digital spine

Alongside interoperability of data, AI

model compatibility is essential, and

we are at the centre of developing this

new digital energy system architec-

ture. With Britain’s National Energy

System Operator (NESO), we are

building the Virtual Energy System

Programme, which is the world’s rst

ecosystem of connected “digital

twins” for a national energy system

– enabled by a common data sharing

infrastructure – a digital spine.

These digital twins, digital replicas

of the grid, are designed to improve

search for novel combinations of en-

ergy conservation strategies to

achieve deep reductions in building

energy consumption within cost and

deployment constraints.

The work showed that machine in-

telligence coupled with human re-

view and guidance could lead to up

to 10 per cent greater savings per

building within the same budget.

While this may sound small, an ad-

ditional 10 per cent savings per

building means far less new genera-

tion required on the grid to meet

surging electricity demands.

Similarly, in the UK, we have devel-

oped a data model for energy eibil-

ity markets that makes information

clearer and easier to share, helping

systems work together and support

the use of AI at scale.

AI is also already improving grid

safety and resilience. Computer vi-

sion is now being used to predict the

risk of extreme events, such as

wildres, that might damage grid

infrastructure, helping prevent trag-

edies like the Camp Fire in California

in 2018.

Concept to capability

Undoubtedly, AI has the potential to

rapidly elevate how we model and

optimise grid systems; however, this

is only if it is deployed in a way that

supports human decision-making and

addresses its risks. While data centres

powering AI are consuming large

amounts of energy, the technologies

that increase the need for these data

centres are in themselves essential for

helping us address challenges like grid

decarbonisation.

From predictive maintenance and

digital twins to AI-assisted building

management and wildre detection,

AI is already reshaping how we think

about energy. However, if we want it

to power the next phase of the energy

transition, we must embed it into the

very structure of our systems, not

just as a bolt-on, but as a backbone.

With the right infrastructure, stan-

dards and cross-sector collaboration,

we can unlock AI’s potential not just

to decarbonise, but to decentralise

and futureproof the energy grid. This

will create a smarter, more inclusive

and responsive system that benets

people, planet and economy alike

and it’s a challenge we must rise to,

collectively.

Simon Evans is Global Digital Energy

Leader, Arup.

THE ENERGY INDUSTRY TIMES - JULY/AUGUST 2025

Technology Outlook

There is no silver bullet for the increasingly complex energy landscape. But when paired with human innovation,

ariial inelligene oers a ial ool o help mee he hallenges heaon. rps Simon Evans explains.

The role of AI in empowering the

energy transition

he role of nuclear power on

the global stage is set to

grow. The number of new

plants is expected to rise as nations

seek to get ahead of growing ener-

gy demands.

Behind these trends is a back-

ground hum of concern of cyber

threats. The WEF recently warned

of the need for greater resilience,

and energy leaders have repeatedly

spoken out against the rising threat.

But while the focus is typically

on current infrastructure and the

commissioning of next-generation

reactors, another frequently over-

looked challenge is playing out: the

safe decommissioning of ageing

existing nuclear facilities.

In the UK alone, most of the cur-

rent nuclear generation capacity is

set to be retired by the end of this

decade. Once these facilities no

longer generate power, they often

lose some focus as a potential risk.

However, their cybersecurity risk

prole remains high. Active sys-

tems and archives of sensitive op-

erational data persist long after op-

erational shutdown, and with fewer

personnel on site and reduced bud-

gets, these sites can become soft

targets for cyber criminals and na-

tion-state actors while still having

to maintain safety and compliance.

These sites often remain in a tran-

sitional state for decades, with full

dismantlement, decontamination,

and restoration stretching across 15

to 30 years. During much of that

time, they retain many characteris-

tics of active critical infrastructure,

from networked control systems to

highly sensitive data stores.

As such, these facilities represent

a unique opportunity for threat ac-

tors targeting the sector, particular-

ly state-backed groups. The UK’s

National Cyber Security Centre

CC has previously agged in-

terest in nuclear sector intelligence

by hostile states, including attempts

to access classied information.

Access to historical operational

data, transport plans for nuclear

waste, archived schematics, and

personnel records offers potential

routes for sabotage, surveillance, or

geopolitical leverage. Even partially

decommissioned physical assets

may still hold radiological materials

that malicious actors could exploit.

The state of play

The security risk of decommission-

ing is growing more signicant as

the number of sites increases. While

different regions have their own nu-

clear growth trajectories, most areas

are set to see more sites closing

down.

The UK, for example, has new

projects underway, such as Sizewell

C and Hinkley Point C, but is still

currently on track to retire almost

half of its existing capacity by the

end of this year.

Likewise, 19 commercial reactors

are in various stages of decommis-

sioning in the United States. More

are expected to join the list, al-

though some sites are instead re-

ceiving life extensions. In Europe,

37 reactors have been permanently

shut down since 2011, with more

closures expected.

Asia presents a more epansionist

picture. China and India are scaling

up their nuclear capacity, while Ja-

pan is restarting and decommission-

ing reactors simultaneously.

This evolving global mix under-

scores a pressing challenge: the cy-

ber security burden of decommis-

sioned sites is set to grow

everywhere, regardless of whether a

country is scaling up its nuclear

power capacity or winding it down.

Unique cyber security challenges

The cybersecurity challenges facing

decommissioned nuclear sites are

not simply a scaled-down version of

those at operational facilities. There

are a number of factors that add new

issues or change the nature of exist-

ing tasks.

Legacy operational technology

(OT) systems such as programma-

ble logic controllers (PLCs) and su-

pervisory control and data acquisi-

tion CAA networs are a

particular issue. These systems

were typically not designed with

digital connectivity in mind and

lack native cyber security capabili-

ties. As layers of smart monitoring

are added, the data pathways and

the data itself require protection and

control.

OT infrastructure historically re-

lied on air-gapped architecture, but

maintenance, reporting, and data

extraction tasks often necessitate

bridging these gaps using one-way

communications via data diodes, or

by using portable media or tempo-

rary connections. This can open up

critical pathways for malware if not

properly managed.

In active plants, these weaknesses

are shielded by layered defences

and 24/7 monitoring. In decommis-

sioning environments, however,

scaled-back operations mean that

they may remain connected and ac-

cessible but lack the same level of

protection.

Decommissioning is an expensive

process, with EDF, for example,

estimating costs of around £27 bil-

lion for the eet of seven AG plants

slated for closure. To minimise costs,

as production winds down, so too

does budget, stafng and, in some

cases, security vigilance.

This can create an environment

where vulnerabilities multiply un-

noticed, especially as ageing infra-

structure is exposed to new modes

of access and external involvement.

esearch from the A Institute

and PWAT recently found, pro-

tecting critical infrastructure such as

industrial control systems (ICS) and

OT is typically underfunded even in

active sites.

Less than half of organisations

were found to allocate just 25 per

cent of their cyber security budgets

on these systems.

Compounding the risk is the in-

creased presence of third-party con-

tractors. Decommissioning is a re-

source-intensive process that relies

on a rotating cast of specialist rms.

Large numbers of workers coming

and going, equipped with their own

tools and devices, increase the at-

tack surface through supply chain

exposure.

Without rigorous controls, creden-

tials, or secure onboarding proto-

cols, these partners or contractors

can inadvertently become entry

points for cyber threats.

Managing removable media risks

In cases of air-gapped, or where net-

work connectivity deliberately is re-

stricted, portable storage devices like

USB drives, DVDs, and external

hard disks are tools used extensively

in active and decommissioned sites,

to transfer data, apply software up-

dates, or share documentation be-

tween isolated systems.

Although this approach is essential

for maintaining air-gap protections,

it also introduces more cyber risk.

Each device brought on-site repre-

sents a potential vector for malware,

either through inadvertent malware

infection or deliberate tampering.

The impact could be severe, from

the theft of classied data to the dis-

ruption of critical systems.

This is no theoretical threat –

some of the most highprole cyber

attacks against critical infrastructure

originated via infected removable

media, including the notorious

Stuxnet worm that rampaged

through Iran’s nuclear programme.

Nuclear sites are not blind to this

risk, and there are standard controls in

place to manage device security.

However, standard anti-virus scans

can be unreliable, with A engines

missing new and more subtle viruses.

Without the right tools, the ‘sheep

dip’ process of checking each in-

coming device can also be slow and

cumbersome at scale. Adhering to

strict scanning processes with these

systems can result in bottlenecks

that delay critical processes – a

daunting prospect in a multi-year,

multi-billion project.

A model for legacy infrastructure

Securing decommissioned nuclear

sites requires more than preserving

old safeguards. A proactive, layered

model is required, recognising the

unique operational demands of lega-

cy infrastructure and the evolving

tactics of cyber adversaries.

As removable media is critical to

the shutdown process and one of

the more prominent cyber risks, it

should be a focal point of new con-

trols. Facilities must move beyond

outdated antivirus scanning and

adopt tools purpose-built for high-

security, air-gapped environments.

Multi-scanning kiosks are one of

the most effective approaches here,

enabling comprehensive screening

of portable media using multiple

antivirus engines, heuristic analysis,

and deep le inspection. Using mul-

tiple A engines increases the

chances of detecting more advanced

and well-hidden threats, while spe-

cialist kiosks can deliver security

without slowing operations down.

It is also important to apply con-

tent disarm and reconstruction

C techniues rather than sim-

ply scanning for potential risks.

This neutralises embedded threats

by sanitising les without disrupt-

ing their usability.

ecure worows should govern

all data movement, from removable

media to email. Managed le trans-

fer (MFT) systems with centralised

logging provide oversight, ensuring

accountability, auditability, and

compliance with regulations from

bodies lie the CC and A.

Data diodes in OT telemetry sys-

tems enforce oneway data ow

from operational networks to moni-

toring systems, blocking any return

path for malicious commands. This

physical separation protects critical

infrastructure and ensures the integ-

rity of industrial control systems in

high-security environments.

Where third-party contractors are

involved, strict onboarding, device

vetting, and enforcement of least-

privilege access should be standard

to ensure visitors aren’t delivering

unnecessary risk exposure.

Finally, visibility into OT assets is

also essential. While many legacy

systems cannot support modern

endpoint protection, specialist tools

are designed to be compatible with

the various different architectures to

identify anomalies and unauthorised

activity.

Decommissioned, not defenceless

Decommissioned sites must there-

fore be treated not as legacy infra-

structure, but as live targets requiring

the same cybersecurity vigilance as

operational plants.

Cybersecurity must be embedded

into every phase of a nuclear asset’s

lifecycle – from commissioning to

shutdown and through the long tail

of decommissioning.

Security need not be a bottleneck.

With the right tools and policies, it

can become an enabler – allowing

wor to proceed safely, efciently,

and in full compliance of regula-

tions. In the long arc of decommis-

sioning, a modern cyber security

model provides the stability and trust

needed to see complex, multi-decade

projects through to completion.

James Neilson is SVP International

at OPSWAT.

Once nuclear facilities

no longer generate

power, they often

lose some focus

as a potential risk.

However, their

cyber security risk

prole remains high.

OPSWAT’s

James Neilson

explains why.

The cyber security burden of nuclear

decommissioning

TE EEG IUT TIME  UAUGUT 202

Cyber Focus

Neilson: Decommissioned sites must therefore be treated not as

legacy infrastructure, but as live targets

THE ENERGY INDUSTRY TIMES - JULY/AUGUST 2025

Final Word

t appears to be increasingly chal-

lenging for governments to stay

focused on climate change as geo-

political tensions escalate around the

world. It is therefore comforting to see

that Europe’s electricity sector is keep-

ing the climate and clean energy front

and centre of its thinking.

During the annual Eurelectric Power

Summit, held in early June with the

theme ‘Power Play’, Dan Jørgensen,

EU Commissioner for Energy &

Housing, opened by pointing to Rus-

sia’s ongoing war against Ukraine,

saying: “Europe needs to show the

power to play and the will to win…

we will stop the import of energy from

Russia. We have already gone a long

way since February three years ago.”

Since the start of the invasion, the

EU has signicantly reduced fossil

fuel imports from Russia. In 2022 the

bloc imported 51 per cent of its total

consumption from ussia. That gure

now stands at zero. Three years ago

the EU received 27 per cent of its oil

from Russia, now it gets 3 per cent.

Meanwhile gas imports have fallen

from 45 per cent to 13 per cent. And

the bloc still seeks to do more. The

plan is to ban all imports of Russian

gas by the end of 2027.

But it’s not just about severing de-

pendence on Russia. While energy

security and independence prompted

this action, the EU remains more than

mindful of its climate commitments.

Jørgensen told delegates: “We also

face other huge challenges. Energy is

at the core of our competitiveness. And

right now, it’s challenged; we pay 2-3

times more for our energy than our

competitors in the US and China.” He

added: “We are also still, and unfortu-

nately increasingly so, in a climate

crisis. The fact that other countries are

stepping bac in the ght against cli-

mate change, means that we have to

step forward.

“There will be no back-tracking;

there can only be fast-tracking be-

cause, as opposed to the other crises

that we are in the middle of, this will

not disappear. Hopefully in 10 years

we will have peace in Ukraine and we

can contain the threat from Russia.

Hopefully we will have normalised

trading relationships across the Atlan-

tic. Hopefully we will have brought

down the price of energy and increased

our competitiveness. But I hate to say

it, climate change will not only still be

here, it’ll be worse. Much worse.”

The latest report from the World

Meteorological Organization cer-

tainly bears this out. According to the

organisation, the global average

temperature could rise to almost 2°C

above pre-industrial levels in the next

ve years for the rst time.

Adam caife of the U Met fce

Hadley Centre said the predictions by

the UN agency, which gathers global,

regional and national data sets, were

“shocking” because they showed that

years in which the temperature rise

exceeded 1.5°C – which happened for

the rst time in 2024 – would now be

close to “commonplace”.

Unfortunately, like other warnings

on climate change, it will fall on deaf

ears in the current US government –

one of the world’s biggest polluters and

whose energy and economic policies

are having an impact that extends far

beyond its domestic borders.

For example, the trade war initiated

by US President Donald Trump is

weighing on the energy strategy of

Canada. In June, Prime Minister Mark

Carney, a longtime climate nance

advocate, moved to restore relations

with the oil industry. Carney promised

to work with Canada’s oil industry to

boost production and reduce emis-

sions, as part of an economic agenda

to stand up to Trump’s tariff threats.

In what is no doubt an attempt to

undermine any pro-renewable voices

that could be seen as inuential, the

US recently threatened to withdraw

from the International Energy

Agency (IEA) unless it reins in its

“unrealistically green” forecasts. The

Trump administration argued that the

Paris-based agency was now acting

more like an energy transition lobby

than a neutral forecaster and called

for a complete overhaul of the IEA’s

assumptions.

But as the US seeks to stem the green

tide, Jørgensen in true Viking fashion

is determined that the EU will ride the

renewables wave. The Danish politi-

cian therefore called for an accelera-

tion in electricity produced from green

energy sources as well as improvement

in energy efciency. e also noted that

if the US is turning away from what is

“the cheapest way” of producing

electricity, that is an opportunity for

Europe.

It is certainly an opportunity for the

EU to take leadership in the global

climate effort. “The good news is that

many of the solutions that we need [for

energy security and combatting cli-

mate change] are interlinked and we

know what we need to do. We need to

deploy more renewables fast; we need

to become more energy efcient fast,

said Jørgensen.

Electrication is seen by many as

being at the core of the energy trans-

formation. Although energy has be-

come a real political football, it is

fairly safe to say that the transforma-

tion, at least in the power sector, is

common sense. The best way to bring

down electricity prices – while im-

proving energy security and address-

ing climate change – is to deploy more

renewables.

“The IEA has estimated that from

2021-23, the EU saved €100 billion

– more than €33 billion per year by

deploying renewables,” said Jør-

gensen. “And since then, we have

managed to increase how much renew-

ables we bring online every year. Last

year we did 78 GW, this year it will

probably be 89 GW. So, it is going in

the right direction, but we need to do

it faster.”

A recent report by REN21 high-

lighted that last year, global renewable

power capacity increased 18 per cent,

adding a record-breaking 741 GW. But

even at the record growth levels of

2024, projections indicate that the

world will fall 800 GW short of the

internationally agreed target calling

for a tripling of renewable power by

2030. Worryingly, the report pointed

to a slowdown in solar additions and

only a marginal increase in new wind

capacity.

Jørgensen had opened his address,

saying: “We have a lot to learn from

the Vikings right now.” He closed

story with another nod to his ances-

tors. “Do you know how they man-

aged to reach America before Colum-

bus? It was not because of the big

muscles, or even because of the ships.

It was because of the sails. They were

very difcult to mae – the sails too

just as long to build as a boat and were

just as expensive. But it was the sails

that took them over those long dis-

tances because they exploited the

wind. We need to exploit the wind,

and solar – the forces of nature – turn

them into electrons and use it to

power our societies.”

In these difcult times, the EU would

be well advised to keep its eyes on the

prize and its back to the wind.

Keep your eyes on the

prize and your back to the

wind

Junior Isles

Cartoon by Jem Soar