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NewBase Energy News 19 October 2023 No. 1666 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
China to lead world in turning goals of Paris Agreement into a
solid and durable reality
WAM + NewBase
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28
President-Designate, today, addressed the High-level Forum on Green Development in Beijing
where he praised China’s climate leadership and action, while noting more is needed to meet the
goals of the Paris Agreement. “China has the potential to lead the world in turning the goals of Paris
into a solid and durable reality,” Dr Al Jaber said.
In his speech, the COP28 President-Designate praised China for “driving green growth not just in
Belt and Road countries, but around the world.”
The high-level forum took place at the 3rd BRI Forum for International Cooperation, during which
President Xi Jinping committed to push for further clean cooperation and additional green
development funds. The Chinese President set out how the country will continue supporting South-
South cooperation, as he outlined training support for 100,000 people from across the developing
world.
ww.linkedin.com/in/khaled-al-awadi-80201019/
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While noting China’s successes, Dr. Al Jaber highlighted that the Global Stock take has shown that
the world is falling behind on its climate ambitions and needs to cut 22 gigatons of greenhouse gas
emissions in the next seven years in order to keep 1.5°C in reach.
“The world can only succeed if all
countries, all companies, all
stakeholders work together. As the
Belt and Road Initiative has shown
over the last 10 years, we can
achieve great things through
partnership and collaboration,” he
said.
To meet the goals and ambitions of
the Paris Climate Agreement, "We
need a practical plan to translate
the Paris Agreement into a realistic
roadmap that the whole world can
follow,” Dr. Al Jaber said. “The
COP28 team has listened to and
engaged with many people from all
walks of life to develop a plan based on four pillars.”
The four pillars of the COP28 Presidency’s Action Agenda are fast tracking a just and orderly energy
transition, fixing climate finance, focusing on people, lives, and livelihoods, and underpinning
everything with full inclusivity. The COP28 President went on to outline his Action Agenda and
China’s critical role in making each of them a success.
On the first pillar of delivering a just and orderly energy transition that leaves no one behind. “China
is the powerhouse that can make it happen,” Dr. Al Jaber said.
He described how “Three-quarters of the world’s solar panels, 60 percent of all wind turbines and
most of the world’s lithium-ion batteries come from China.”
Dr. Al Jaber continued by stating that China’s oil and gas companies “are also vital to bringing critical
mass to COP28’s goal of ending menthane emissions by 2030.”
He added that the “country’s steel, cement and aluminium companies- representing 60 per cent of
global production- are pivotal in our drive to decarbonize heavy emitting industries.
In short, China has the potential to lead the world in turning the goals of Paris into a solid and
durable reality.”
On the second pillar of fixing climate finance, Dr. Al Jaber called on contributing countries to live up
to their responsibilities. “The 100-billion-dollar pledge must be fulfilled,” he said, “Nice words won’t
do it. The Global South needs to see it actually happen.”
He added, “Private capital must play a far more prominent. And the entire international financial
system must be modernized to make finance more available, accessible and affordable to the Global
South.”
On the third pillar, which is focused on people, lives, and livelihoods, Dr. Al Jaber called on parties
to operationalise the loss and damage fund, double climate adaptation finance, and replenish the
Green Climate Fund. Dr. Sultan said, “all countries must commit to a robust global goal on
adaptation that protects nature and builds on the commitments of the Kunming Montreal Biodiversity
summit.”
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Dr. Al Jaber noted that COP28 will be the first to integrate health and climate with a climate health
ministerial. He said: “I am calling on all countries to sign up to the COP28 declarations on food and
on health. These are people focused initiatives that need support from every country, including
China.
Finally, on the fourth pillar of full inclusivity, Dr. Al Jaber said that “everyone is welcome at COP28,
because the world can only succeed if all countries, all companies, all stakeholders work together.”
He then praised China’s example, noting how “by working together, as the Belt and Road Initiative
has shown over the last 10 years, we can achieve great things through partnership and
collaboration.”
Concluding his remarks, Dr. Al Jaber said, “We live in turbulent times against a complex geopolitical
backdrop. COP28 provides a global platform for the world to set aside differences and come
together around a common challenge that affects us all.”
Beijing’s High-level Forum on Green Development comes ahead of Pre-COP on 30-31 October in
the UAE, where ministers will gather to make major progress on defining and driving consensus on
negotiations in advance of COP28 itself.
During his visit to China, Dr. Al Jaber also engaged in bilateral meetings with Xie Zhenhua, China’s
Special Envoy on Climate Change, Huang Runqiu, China’s Minister of Ecology and Environment,
Jin Zhuanglong, China’s Minister of Industry and Information Technology, Zhao Chenxi, Vice
Chairman of the National Development of Reform Commission (NDRC) and Dr. Amy Khor,
Singapore’s Senior Minister of State for Sustainability and the Environment. He also met with
Professor Zou Ji, CEO & President of Energy Foundation China.
This is Dr. Al Jaber's second visit to China in less than a month. On September 27, he delivered an
address at the Friends of Paris High-Level Dialogue meeting, calling for a robust response to the
Global Stocktake to get “back on track” to Paris.
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QatarEnergy, Shell sign 27-year LNG supply to the Netherlands
OGN/ TrdaeArabia News Service
Affiliates of QatarEnergy and Shell have signed two long-term LNG sale and purchase agreements
(SPAs) for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to the
Netherlands.
Pursuant to the SPAs, the LNG will be delivered to Gate LNG terminal located in the port of
Rotterdam starting in 2026 for a term of 27 years. The LNG volumes will be sourced from the two
joint ventures between QatarEnergy and Shell that hold interests in Qatar’s North Field East (NFE)
and North field South (NFS) expansion projects.
The SPAs were signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the
President and CEO of QatarEnergy, and Wael Sawan, the CEO of Shell, at a special event held in
Doha in the presence of senior executives from both companies.
Minister Al-Kaabi said: “We are delighted to sign these two long-term LNG sale and purchase
agreements with Shell that will further enhance our decades-long relationship and strategic
partnership in Qatar and around the world. There is no doubt that the contracted LNG volumes
underscore the vital role natural gas plays in the energy transition and in supporting energy security
of customers across the globe.”
Minister Al-Kaabi added: “These agreements reaffirm Qatar’s commitment to help meeting Europe’s
energy demands and bolstering its energy security with a source known for its superior economic
and environmental qualities. We look forward to work closely with our partner, Shell, in delivering
on this shared endeavor.”
Shell’s partnership in the North Field LNG Expansion Projects is made up of a 6.25 per cent share
in the 32 MTPA NFE project and a 9.375 per cent share in the 16 MTPA NFS project.
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UK: Eni and UK Gov. agree ‘HOT’ for world’s first asset based
regulated CCS business model
Source: Eni
Eni has reached an agreement in principle with the UK Government’s Department of Energy
Security and Net Zero (DESNZ) on the key terms and conditions for the economic, regulatory and
governance model for the transportation and storage of carbon dioxide at the HyNet North West
industrial CCS cluster.
Set out in Heads of Terms, these principles pave the way for the completion of definitive agreements
in the coming months. The agreement is an important step towards HyNet North West becoming
fully operational as the world’s first asset based regulated CCS business, providing carbon
transportation and storage for companies in the North West of England and North Wales.
Eni believes CCS could be crucial in energy transition strategy and it becomes a significant business
for the company. It has established a leading position in the UK where Eni is the CO2 transport and
storage operator of the HyNet North West consortium.
Moreover the company is planning a second UK CCS hub to decarbonise the Bacton Energy Hub
and the Thames Estuary region – and has been granted a license to store carbon dioxide in the
depleted Hewett gas field in the Southern North Sea. Together, HyNet North West and Bacton have
the capacity to store 500 million tonnes of CO2.
HyNet North West will transform one of the country’s most energy intensive industrial districts into
one of the world’s first low-carbon industrial clusters. The project will help preserve thousands of
local jobs by supporting the decarbonisation of cement, energy, chemicals as well as attracting
investment into new industries thus creating new jobs.
HyNet North West is expected to be operational by the middle of the current decade with a storage
capacity of approximately 4.5 million tonnes of CO2 per year in the first phase. It has the potential
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to remove approximately 10 million annually after 2030. HyNet North West will make a major
contribution to the UK’s target of storing 20-30 million tonnes of CO2 annually by 2030.
Eni’s CEO, Claudio Descalzi, commented: 'CCS will play a critical role in energy transition, cutting
safely emissions from industries that currently don’t have the technology to do so another way.
Today’s agreement is a significant step towards establishing a significant new industry for the
country.
The Heads of Terms outline a regulated model that can help the CCS industry achieve scale and
provide the certainty needed for private sector investment. This kind of close cooperation with the
public sector will be critical to developing the kind of groundbreaking projects we need to address
the climate challenge'.
Eni has developed extensive expertise in storing gas in depleted fields over many decades. It
intends to use this to repurpose some of its existing upstream assets into carbon dioxide storage
hubs to decarbonise both its own and third parties' industrial activities at a competitive cost and with
fast time to market.
The aim is to achieve a total annual storage capacity of 30 million tonnes of CO2 by 2030 through
projects under development not only in the United Kingdom but also in Italy, in Libya, Australia and
Egypt.
WHAT IS HYNET?
HyNet is made up of several different elements. Together, these will provide the infrastructure to produce,
transport and store low carbon hydrogen across the North West and North Wales. There will also be the
infrastructure to capture, transport and lock away carbon dioxide emissions from industry.
HyNet will both upgrade existing infrastructure, as well as the develop new infrastructure. This includes
underground pipelines, hydrogen production plants and storage facilities.
HyNet includes:
 Hydrogen production: EET Hydrogen
 Hydrogen transport network via underground pipeline: Cadent
 Hydrogen storage: INOVYN
 CO2 transport via underground pipeline: Eni
 CO2 undersea storage: Eni
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U.S. nuclear outages rose & more N.Gas power installed in 2023
U.S. Energy Information Administration, Status of U.S. Nuclear Outages, based on U.S. Nuclear Regulatory Commission data
Outages of U.S. nuclear generating capacity averaged 3.1 gigawatts (GW) per day during the
summer of 2023 (June 1 through August 31), a return to 2021 levels. Capacity outages this past
summer exceeded those in summer 2022 by more than 25%.
Nuclear capacity outages peaked in June because some reactors were still offline at the end of the
spring refueling and maintenance season. June capacity outages averaged 6.1 GW per day and
peaked at 8.3 GW.
Nuclear power plants undergo both planned outages, usually for maintenance and refueling, and
unplanned outages, which include weather-related disruptions and early retirements. The fewest
nuclear outages usually occur in the United States during the summer and winter because electricity
demand is highest during these seasons and plant operators need to have reactors available to
meet increased seasonal electricity demand.
Planned nuclear generation outages are usually scheduled to coincide with reactor refueling cycles.
U.S. nuclear power plants typically refuel reactors every 18 to 24 months, mostly in fall and spring
when electricity demand is lower. During a refueling outage, plants typically optimize downtime by
scheduling facility upgrades, repairs, and other maintenance work while the nuclear reactor is
offline.
As of October 3, 2023, U.S. nuclear plant refueling outages this year have averaged 35 days
compared with 38 days during 2022. Several reactors began refueling and maintenance outages in
April and May and were offline for an average of 34 days.
Some reactors were offline for much longer than average: Millstone Nuclear Plant in Waterford,
Connecticut, was offline for 89 days, and the Columbia Generating Station in Richland, Washington,
began a 44-day outage in early May. Both outages lasted into June and increased the overall
summer capacity outage duration.
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Data source: U.S. Nuclear Regulatory Commission
Unplanned, or forced, nuclear generation outages can result from equipment failure, operational
error, or external circumstances such as severe weather. As of October 3, the United States had 31
unplanned U.S. nuclear outages in 2023, compared with 35 in 2022.
The Fermi Nuclear Generating Station, located about 30 miles south of Detroit, was shut down from
August 21 to September 7 after operators detected a coolant leak. The facility underwent a 54-day
planned outage in early 2022 when about one-third of the fuel in the reactor was replaced and
maintenance and testing activities were conducted throughout.
Vogtle Unit 3 in Waynesboro, Georgia, shut down for three days in mid-July for an unplanned
maintenance outage and hot weather alert. The reactor entered commercial operation two weeks
later on July 31.
Our Status of Nuclear Outages web page, which is based on data collected by the U.S. Nuclear
Regulatory Commission, provides daily operational information on each commercial U.S. nuclear
power reactor.
New natural gas-fired capacity additions expected to total 8.6 gigawatts in 2023
So far in 2023, 10 natural gas-fired power plants have come online in the United States with a total
of 6.8 gigawatts (GW) of electric generating capacity, according to our Monthly Electric Generator
Inventory.
By the end of 2023, we expect another six natural gas-fired power plants with another 1.8 GW of
capacity to come online, bringing total 2023 capacity additions to 8.6 GW.
The additions include both combined-cycle gas turbine (CCGT) plants and simple-cycle gas
turbine (SCGT) plants concentrated near the Gulf Coast and Appalachia natural gas producing
regions and in Florida.
In 2022, a total of 11 natural gas-fired power plants came online, adding 5.6 GW of capacity. Total
natural gas-fired capacity additions increased in both 2022 and 2023 after consecutive declines in
the prior three years.
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In the next two years (2024 and 2025), we expect 20 new natural gas-fired power plants to come
online with a total capacity of 7.7 GW.
CCGT plants commonly serve both base and
peak electricity load because they are highly
efficient and designed to run for extended
periods of time. During 2022 and 2023, a total
of 13 new CCGT plants with a combined
capacity of 12.4 GW will have entered service.
The average output for each of the 13 CCGT
plants is 0.9 GW of electric generating
capacity. Approximately 5.8 GW of the total
capacity is located in Florida and Michigan.
These two states already produce electricity
primarily from natural gas-fired power plants.
We expect 4.9 GW of additional CCGT
additions in 2024 and 2025, only 0.1 GW of
which is planned for 2024.
During 2022 and 2023, 14 SCGT plants with total capacity of 1.9 GW will have begun operations.
The average output for each of the 14 SCGT plants is almost 140 megawatts of electric generating
capacity.
Although the average capacity of SCGT plants is much lower than CCGT plants, SCGT plants are
able to quickly ramp up operations in response to sudden changes in demand or when output from
intermittent renewable energy sources is unavailable.
Over half of the new SCGT capacity coming online in 2022 and 2023 is located in Texas, which has
periods of high daily peak electricity demand throughout the summer and has had significant growth
in renewable energy during the last few years.
Additional new SCGT units with a total capacity of 2.8 GW, mostly located in Texas near high
population areas, are expected to enter service in 2024 and 2025.
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NewBase October 19 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls, but Brent above $91 as , Venezuela sanctions to ease
Reuters + NewBase
Oil prices fell on Thursday, reversing gains in the previous session, after OPEC showed no signs of
supporting Iran's call for an oil embargo on Israel and as the United States plans to ease Venezuela
sanctions to allow more oil to flow globally.
Brent futures for December fell 0.39%, or 39 cents, to $91.11 a barrel. U.S. West Texas Intermediate
(WTI) futures for November, which expire on Friday, dropped 0.14%, or 14 cents, to trade at $88.18
per barrel. The more active December WTI contract was down 0.3%, or 22 cents, to $87.05 a barrel
at 0442 GMT.
Oil prices climbed about 2% in the previous session on concerns about disruptions to global supplies
after Iran called for an oil embargo on Israel over the conflict in Gaza and after the U.S., the world's
biggest oil consumer, reported a larger-than-expected inventory draw, adding to already tight
supplies.
Oil price special
coverage
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The Organization of the Petroleum Exporting Countries (OPEC) is not planning to take any
immediate action on OPEC member Iran's call, sources told Reuters, easing concerns over potential
disruptions.
Israel imports about 250,000 barrels per day (bpd) of oil, mainly from Kazakhstan, Azerbaijan, Iraq
and African countries, according to Citi analysts in a note.
"We believe an embargo from Kazakhstan and Azerbaijan, a strong Israeli ally, is unlikely," they
said.
There was also a pullback in prices as U.S. President Joe Biden's visit to Israel concluded without
any further escalation in the Israel-Hamas conflict, said CMC Markets analyst Tina Teng.
"But the market is still under upside pressure amid the geopolitical tensions," she said.
Still, prices were pressured by the announcement that U.S. issued a six-month license authorizing
transactions in Venezuela's energy sector, an OPEC member, after a deal was reached between
the Venezuelan government and the country's political opposition to ensure fair 2024 elections.
Venezuela's oil flows could help to ease global oil prices, up amid the Israel-Hamas conflict,
sanctions on Russia and OPEC+ decisions to reduce output, but Venezuela needs investments to
boost output following years of sanctions.
U.S. crude oil and fuel inventories dropped last week on rising demand for diesel and heating oil,
according to data from the Energy Information Administration. Distillate fuel stockpiles fell by 3.2
million barrels in the week to Oct. 13 to 113.8 million barrels, EIA data showed.
Crude inventories fell by 4.5 million barrels to 419.7 million barrels, while gasoline fell by 2.4 million
barrels to 223.3 million barrels.
Supply may tighten further as Russia's oil exports via its western sea ports in November are
seen falling by some 300,000 bpd as domestic refineries are expected to raise runs as seasonal
maintenance ends, sources told Reuters.
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NewBase Specual Coverage
The Energy world –October 19 -2023
CLEAN ENERGY
Lack of ambition and attention risks making electricity grids
the weak link in clean energy transitions
IEA
The backbone of today’s electricity systems, grids are set to become increasingly important as clean
energy transitions progress, but they currently receive too little attention. Grids have been delivering
power to households, businesses and industry for over 100 years. Clean energy transitions are now
driving the transformation of our energy systems and expanding the role of electricity across
economies. As a result, countries’ transitions to net zero emissions need to be underpinned by
bigger, stronger and smarter grids.
To achieve countries’ national energy and climate goals, the world’s electricity use needs to grow
20% faster in the next decade than it did in the previous one. Electricity demand needs to grow even
more rapidly in a global pathway to net zero emissions by 2050, which is consistent with limiting the
rise in global temperatures to 1.5 °C. Expanded grids are critical to enable such levels of growth as
the world deploys more electric vehicles, installs more electric heating and cooling systems, and
scales up hydrogen production using electrolysis.
Reaching national goals also means adding or refurbishing a total of over 80 million kilometres of
grids by 2040, the equivalent of the entire existing global grid. Grids are essential to decarbonise
electricity supply and effectively integrate renewables.
In a scenario in which countries’ national energy and climate goals are met on time and in full, wind
and solar PV account for over 80% of the total increase in global power capacity in the next two
decades, compared with less than 40% over the past two decades.
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In the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, wind and solar
account for almost 90% of the increase.
The acceleration of renewable energy deployment calls for modernising distribution grids and
establishing new transmission corridors to connect renewable resources – such as solar PV projects
in the desert and offshore wind turbines out at sea – that are far from demand centres like cities and
industrial areas.
Modern and digital grids are vital to safeguard electricity security during clean energy transitions.
As the shares of variable renewables such as solar PV and wind increase, power systems need to
become more flexible to accommodate the changes in output.
In a scenario consistent with meeting national climate goals, the need for system flexibility doubles
between 2022 and 2030. Grids need to both operate in new ways and leverage the benefits of
distributed resources, such as rooftop solar, and all sources of flexibility. This includes deploying
grid-enhancing technologies and unlocking the potential of demand response and energy storage
through digitalisation.
At least 3 000 gigawatts (GW) of renewable power projects, of which 1 500 GW are in advanced
stages, are waiting in grid connection queues – equivalent to five times the amount of solar PV and
wind capacity added in 2022.
This shows grids are becoming a bottleneck for transitions to net zero emissions. The number of
projects awaiting connection worldwide is likely to be even higher, as data on such queues is
accessible for countries accounting for half of global wind and solar PV capacity. While investment
in renewables has been increasing rapidly – nearly doubling since 2010 – global investment in grids
has barely changed, remaining static at around USD 300 billion per year.
Delays in grid investment and reform would substantially increase global carbon dioxide (CO2)
emissions, slowing energy transitions and putting the 1.5 °C goal out of reach. For this report, we
developed the Grid Delay Case to explore the impacts of more limited investment, modernisation,
digitalisation and operational changes than are envisioned in the IEA’s climate-focused scenarios.
The Grid Delay Case shows transitions stalling, with slower uptake of renewables and higher fossil
fuel use. Cumulative CO2 emissions from the power sector to 2050 would be 58 gigatonnes higher
in the Grid Delay Case than in a scenario aligned with national climate targets. This is equivalent to
the total global power sector CO2 emissions from the past four years. It would also mean that the
global long-term temperature rise would go well above 1.5 °C, with a 40% chance of it exceeding 2 °C.
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At a time of fragile natural gas markets and concerns about gas supply security, failing to build out
grids increases countries’ reliance on gas. In the Grid Delay Case, global gas imports are over 80
billion cubic metres (bcm) a year higher after 2030 than in a scenario aligned with national climate
targets – and coal imports nearly 50 million tonnes higher.
Delayed grid development also increases the risk that economically damaging outages would
multiply. Today, such outages already cost around USD 100 billion a year, or 0.1% of global GDP.
Regulation needs to be reviewed and updated to support not only deploying new grids but also
improving the use of assets. Grid regulation needs to incentivise grids to keep pace with the rapid
changes in electricity demand and supply.
This requires addressing administrative barriers, rewarding high performance and reliability, and
spurring innovation. Regulatory risk assessments also need to improve to enable accelerated
buildout and efficient use of infrastructure.
Planning for transmission and distribution grids needs to be further aligned and integrated with
broad long-term planning processes by governments. New grid infrastructure often takes five to 15
years to plan, permit and complete, compared with one to five years for new renewables projects
and less than two years for new EV charging infrastructure.
Grid plans need to integrate inputs from long-term energy transition plans across sectors,
anticipating and enabling the growth of distributed resources, connecting resource-rich regions
including offshore wind, and reflecting links with other sectors including transport, buildings and
industry, and fuels such as hydrogen.
Robust stakeholder and public engagement is key to inform scenario development. The public
needs to be aware and informed about the link between grids and successful energy transitions.
To meet national climate targets, grid investment needs to nearly double by 2030 to over USD 600
billion per year after over a decade of stagnation at the global level, with emphasis on digitalising
and modernising distribution grids.
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Concerningly, emerging and developing economies, excluding China, have seen a decline in grid
investment in recent years, despite robust electricity demand growth and energy access needs.
Advanced economies have seen steady growth in grid investment, but the pace needs to step up
to enable rapid clean energy transitions. Investment continues to rise in all regions beyond 2030.
Building out grids requires secure supply chains and a skilled workforce. Governments can support
the expansion of supply chains by creating firm and transparent project pipelines and by
standardising procurement and technical installations. They also need to build in future flexibility by
ensuring interoperability of all the different elements of the system.
There is also a significant need for skilled professionals across the entire supply chain, as well as
at operators and regulatory institutions. It will be essential to build out a pipeline of talent, ensure
digital skills are integrated into power industry curricula and manage the impacts of the energy
transition and increased automation on workers through reskilling and on-the-job training.
The most important barriers to grid development differ by region. The financial health of utilities is a
central challenge in some countries, including India, Indonesia and Korea, while access to finance
and high cost of capital are key barriers in many emerging market and developing economies,
particularly in Sub-Saharan Africa.
Financial barriers can be addressed by improving the way grid companies are remunerated, driving
targeted grid funding and increasing cost transparency. For other jurisdictions, such as Europe, the
United States, Chile and Japan, the strongest barriers relate to public acceptance of new projects
and the need for regulatory reform.
Here, policy makers can speed up progress on grids by enhancing planning, ensuring regulatory
risk assessments allow for anticipatory investments and streamlining administrative processes.
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 16
NewBase Energy News 19-October - Issue No. 1666 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18

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NewBase 19 October 2023 Energy News issue - 1666 by Khaled Al Awadi_compressed.pdf

  • 1. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 19 October 2023 No. 1666 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE China to lead world in turning goals of Paris Agreement into a solid and durable reality WAM + NewBase Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President-Designate, today, addressed the High-level Forum on Green Development in Beijing where he praised China’s climate leadership and action, while noting more is needed to meet the goals of the Paris Agreement. “China has the potential to lead the world in turning the goals of Paris into a solid and durable reality,” Dr Al Jaber said. In his speech, the COP28 President-Designate praised China for “driving green growth not just in Belt and Road countries, but around the world.” The high-level forum took place at the 3rd BRI Forum for International Cooperation, during which President Xi Jinping committed to push for further clean cooperation and additional green development funds. The Chinese President set out how the country will continue supporting South- South cooperation, as he outlined training support for 100,000 people from across the developing world. ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 2. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 While noting China’s successes, Dr. Al Jaber highlighted that the Global Stock take has shown that the world is falling behind on its climate ambitions and needs to cut 22 gigatons of greenhouse gas emissions in the next seven years in order to keep 1.5°C in reach. “The world can only succeed if all countries, all companies, all stakeholders work together. As the Belt and Road Initiative has shown over the last 10 years, we can achieve great things through partnership and collaboration,” he said. To meet the goals and ambitions of the Paris Climate Agreement, "We need a practical plan to translate the Paris Agreement into a realistic roadmap that the whole world can follow,” Dr. Al Jaber said. “The COP28 team has listened to and engaged with many people from all walks of life to develop a plan based on four pillars.” The four pillars of the COP28 Presidency’s Action Agenda are fast tracking a just and orderly energy transition, fixing climate finance, focusing on people, lives, and livelihoods, and underpinning everything with full inclusivity. The COP28 President went on to outline his Action Agenda and China’s critical role in making each of them a success. On the first pillar of delivering a just and orderly energy transition that leaves no one behind. “China is the powerhouse that can make it happen,” Dr. Al Jaber said. He described how “Three-quarters of the world’s solar panels, 60 percent of all wind turbines and most of the world’s lithium-ion batteries come from China.” Dr. Al Jaber continued by stating that China’s oil and gas companies “are also vital to bringing critical mass to COP28’s goal of ending menthane emissions by 2030.” He added that the “country’s steel, cement and aluminium companies- representing 60 per cent of global production- are pivotal in our drive to decarbonize heavy emitting industries. In short, China has the potential to lead the world in turning the goals of Paris into a solid and durable reality.” On the second pillar of fixing climate finance, Dr. Al Jaber called on contributing countries to live up to their responsibilities. “The 100-billion-dollar pledge must be fulfilled,” he said, “Nice words won’t do it. The Global South needs to see it actually happen.” He added, “Private capital must play a far more prominent. And the entire international financial system must be modernized to make finance more available, accessible and affordable to the Global South.” On the third pillar, which is focused on people, lives, and livelihoods, Dr. Al Jaber called on parties to operationalise the loss and damage fund, double climate adaptation finance, and replenish the Green Climate Fund. Dr. Sultan said, “all countries must commit to a robust global goal on adaptation that protects nature and builds on the commitments of the Kunming Montreal Biodiversity summit.”
  • 3. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Dr. Al Jaber noted that COP28 will be the first to integrate health and climate with a climate health ministerial. He said: “I am calling on all countries to sign up to the COP28 declarations on food and on health. These are people focused initiatives that need support from every country, including China. Finally, on the fourth pillar of full inclusivity, Dr. Al Jaber said that “everyone is welcome at COP28, because the world can only succeed if all countries, all companies, all stakeholders work together.” He then praised China’s example, noting how “by working together, as the Belt and Road Initiative has shown over the last 10 years, we can achieve great things through partnership and collaboration.” Concluding his remarks, Dr. Al Jaber said, “We live in turbulent times against a complex geopolitical backdrop. COP28 provides a global platform for the world to set aside differences and come together around a common challenge that affects us all.” Beijing’s High-level Forum on Green Development comes ahead of Pre-COP on 30-31 October in the UAE, where ministers will gather to make major progress on defining and driving consensus on negotiations in advance of COP28 itself. During his visit to China, Dr. Al Jaber also engaged in bilateral meetings with Xie Zhenhua, China’s Special Envoy on Climate Change, Huang Runqiu, China’s Minister of Ecology and Environment, Jin Zhuanglong, China’s Minister of Industry and Information Technology, Zhao Chenxi, Vice Chairman of the National Development of Reform Commission (NDRC) and Dr. Amy Khor, Singapore’s Senior Minister of State for Sustainability and the Environment. He also met with Professor Zou Ji, CEO & President of Energy Foundation China. This is Dr. Al Jaber's second visit to China in less than a month. On September 27, he delivered an address at the Friends of Paris High-Level Dialogue meeting, calling for a robust response to the Global Stocktake to get “back on track” to Paris.
  • 4. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 QatarEnergy, Shell sign 27-year LNG supply to the Netherlands OGN/ TrdaeArabia News Service Affiliates of QatarEnergy and Shell have signed two long-term LNG sale and purchase agreements (SPAs) for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to the Netherlands. Pursuant to the SPAs, the LNG will be delivered to Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years. The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell that hold interests in Qatar’s North Field East (NFE) and North field South (NFS) expansion projects. The SPAs were signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Wael Sawan, the CEO of Shell, at a special event held in Doha in the presence of senior executives from both companies. Minister Al-Kaabi said: “We are delighted to sign these two long-term LNG sale and purchase agreements with Shell that will further enhance our decades-long relationship and strategic partnership in Qatar and around the world. There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe.” Minister Al-Kaabi added: “These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities. We look forward to work closely with our partner, Shell, in delivering on this shared endeavor.” Shell’s partnership in the North Field LNG Expansion Projects is made up of a 6.25 per cent share in the 32 MTPA NFE project and a 9.375 per cent share in the 16 MTPA NFS project.
  • 5. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 UK: Eni and UK Gov. agree ‘HOT’ for world’s first asset based regulated CCS business model Source: Eni Eni has reached an agreement in principle with the UK Government’s Department of Energy Security and Net Zero (DESNZ) on the key terms and conditions for the economic, regulatory and governance model for the transportation and storage of carbon dioxide at the HyNet North West industrial CCS cluster. Set out in Heads of Terms, these principles pave the way for the completion of definitive agreements in the coming months. The agreement is an important step towards HyNet North West becoming fully operational as the world’s first asset based regulated CCS business, providing carbon transportation and storage for companies in the North West of England and North Wales. Eni believes CCS could be crucial in energy transition strategy and it becomes a significant business for the company. It has established a leading position in the UK where Eni is the CO2 transport and storage operator of the HyNet North West consortium. Moreover the company is planning a second UK CCS hub to decarbonise the Bacton Energy Hub and the Thames Estuary region – and has been granted a license to store carbon dioxide in the depleted Hewett gas field in the Southern North Sea. Together, HyNet North West and Bacton have the capacity to store 500 million tonnes of CO2. HyNet North West will transform one of the country’s most energy intensive industrial districts into one of the world’s first low-carbon industrial clusters. The project will help preserve thousands of local jobs by supporting the decarbonisation of cement, energy, chemicals as well as attracting investment into new industries thus creating new jobs. HyNet North West is expected to be operational by the middle of the current decade with a storage capacity of approximately 4.5 million tonnes of CO2 per year in the first phase. It has the potential
  • 6. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 to remove approximately 10 million annually after 2030. HyNet North West will make a major contribution to the UK’s target of storing 20-30 million tonnes of CO2 annually by 2030. Eni’s CEO, Claudio Descalzi, commented: 'CCS will play a critical role in energy transition, cutting safely emissions from industries that currently don’t have the technology to do so another way. Today’s agreement is a significant step towards establishing a significant new industry for the country. The Heads of Terms outline a regulated model that can help the CCS industry achieve scale and provide the certainty needed for private sector investment. This kind of close cooperation with the public sector will be critical to developing the kind of groundbreaking projects we need to address the climate challenge'. Eni has developed extensive expertise in storing gas in depleted fields over many decades. It intends to use this to repurpose some of its existing upstream assets into carbon dioxide storage hubs to decarbonise both its own and third parties' industrial activities at a competitive cost and with fast time to market. The aim is to achieve a total annual storage capacity of 30 million tonnes of CO2 by 2030 through projects under development not only in the United Kingdom but also in Italy, in Libya, Australia and Egypt. WHAT IS HYNET? HyNet is made up of several different elements. Together, these will provide the infrastructure to produce, transport and store low carbon hydrogen across the North West and North Wales. There will also be the infrastructure to capture, transport and lock away carbon dioxide emissions from industry. HyNet will both upgrade existing infrastructure, as well as the develop new infrastructure. This includes underground pipelines, hydrogen production plants and storage facilities. HyNet includes:  Hydrogen production: EET Hydrogen  Hydrogen transport network via underground pipeline: Cadent  Hydrogen storage: INOVYN  CO2 transport via underground pipeline: Eni  CO2 undersea storage: Eni
  • 7. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 U.S. nuclear outages rose & more N.Gas power installed in 2023 U.S. Energy Information Administration, Status of U.S. Nuclear Outages, based on U.S. Nuclear Regulatory Commission data Outages of U.S. nuclear generating capacity averaged 3.1 gigawatts (GW) per day during the summer of 2023 (June 1 through August 31), a return to 2021 levels. Capacity outages this past summer exceeded those in summer 2022 by more than 25%. Nuclear capacity outages peaked in June because some reactors were still offline at the end of the spring refueling and maintenance season. June capacity outages averaged 6.1 GW per day and peaked at 8.3 GW. Nuclear power plants undergo both planned outages, usually for maintenance and refueling, and unplanned outages, which include weather-related disruptions and early retirements. The fewest nuclear outages usually occur in the United States during the summer and winter because electricity demand is highest during these seasons and plant operators need to have reactors available to meet increased seasonal electricity demand. Planned nuclear generation outages are usually scheduled to coincide with reactor refueling cycles. U.S. nuclear power plants typically refuel reactors every 18 to 24 months, mostly in fall and spring when electricity demand is lower. During a refueling outage, plants typically optimize downtime by scheduling facility upgrades, repairs, and other maintenance work while the nuclear reactor is offline. As of October 3, 2023, U.S. nuclear plant refueling outages this year have averaged 35 days compared with 38 days during 2022. Several reactors began refueling and maintenance outages in April and May and were offline for an average of 34 days. Some reactors were offline for much longer than average: Millstone Nuclear Plant in Waterford, Connecticut, was offline for 89 days, and the Columbia Generating Station in Richland, Washington, began a 44-day outage in early May. Both outages lasted into June and increased the overall summer capacity outage duration.
  • 8. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 Data source: U.S. Nuclear Regulatory Commission Unplanned, or forced, nuclear generation outages can result from equipment failure, operational error, or external circumstances such as severe weather. As of October 3, the United States had 31 unplanned U.S. nuclear outages in 2023, compared with 35 in 2022. The Fermi Nuclear Generating Station, located about 30 miles south of Detroit, was shut down from August 21 to September 7 after operators detected a coolant leak. The facility underwent a 54-day planned outage in early 2022 when about one-third of the fuel in the reactor was replaced and maintenance and testing activities were conducted throughout. Vogtle Unit 3 in Waynesboro, Georgia, shut down for three days in mid-July for an unplanned maintenance outage and hot weather alert. The reactor entered commercial operation two weeks later on July 31. Our Status of Nuclear Outages web page, which is based on data collected by the U.S. Nuclear Regulatory Commission, provides daily operational information on each commercial U.S. nuclear power reactor. New natural gas-fired capacity additions expected to total 8.6 gigawatts in 2023 So far in 2023, 10 natural gas-fired power plants have come online in the United States with a total of 6.8 gigawatts (GW) of electric generating capacity, according to our Monthly Electric Generator Inventory. By the end of 2023, we expect another six natural gas-fired power plants with another 1.8 GW of capacity to come online, bringing total 2023 capacity additions to 8.6 GW. The additions include both combined-cycle gas turbine (CCGT) plants and simple-cycle gas turbine (SCGT) plants concentrated near the Gulf Coast and Appalachia natural gas producing regions and in Florida. In 2022, a total of 11 natural gas-fired power plants came online, adding 5.6 GW of capacity. Total natural gas-fired capacity additions increased in both 2022 and 2023 after consecutive declines in the prior three years.
  • 9. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 In the next two years (2024 and 2025), we expect 20 new natural gas-fired power plants to come online with a total capacity of 7.7 GW. CCGT plants commonly serve both base and peak electricity load because they are highly efficient and designed to run for extended periods of time. During 2022 and 2023, a total of 13 new CCGT plants with a combined capacity of 12.4 GW will have entered service. The average output for each of the 13 CCGT plants is 0.9 GW of electric generating capacity. Approximately 5.8 GW of the total capacity is located in Florida and Michigan. These two states already produce electricity primarily from natural gas-fired power plants. We expect 4.9 GW of additional CCGT additions in 2024 and 2025, only 0.1 GW of which is planned for 2024. During 2022 and 2023, 14 SCGT plants with total capacity of 1.9 GW will have begun operations. The average output for each of the 14 SCGT plants is almost 140 megawatts of electric generating capacity. Although the average capacity of SCGT plants is much lower than CCGT plants, SCGT plants are able to quickly ramp up operations in response to sudden changes in demand or when output from intermittent renewable energy sources is unavailable. Over half of the new SCGT capacity coming online in 2022 and 2023 is located in Texas, which has periods of high daily peak electricity demand throughout the summer and has had significant growth in renewable energy during the last few years. Additional new SCGT units with a total capacity of 2.8 GW, mostly located in Texas near high population areas, are expected to enter service in 2024 and 2025.
  • 10. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 NewBase October 19 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil falls, but Brent above $91 as , Venezuela sanctions to ease Reuters + NewBase Oil prices fell on Thursday, reversing gains in the previous session, after OPEC showed no signs of supporting Iran's call for an oil embargo on Israel and as the United States plans to ease Venezuela sanctions to allow more oil to flow globally. Brent futures for December fell 0.39%, or 39 cents, to $91.11 a barrel. U.S. West Texas Intermediate (WTI) futures for November, which expire on Friday, dropped 0.14%, or 14 cents, to trade at $88.18 per barrel. The more active December WTI contract was down 0.3%, or 22 cents, to $87.05 a barrel at 0442 GMT. Oil prices climbed about 2% in the previous session on concerns about disruptions to global supplies after Iran called for an oil embargo on Israel over the conflict in Gaza and after the U.S., the world's biggest oil consumer, reported a larger-than-expected inventory draw, adding to already tight supplies. Oil price special coverage
  • 11. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 The Organization of the Petroleum Exporting Countries (OPEC) is not planning to take any immediate action on OPEC member Iran's call, sources told Reuters, easing concerns over potential disruptions. Israel imports about 250,000 barrels per day (bpd) of oil, mainly from Kazakhstan, Azerbaijan, Iraq and African countries, according to Citi analysts in a note. "We believe an embargo from Kazakhstan and Azerbaijan, a strong Israeli ally, is unlikely," they said. There was also a pullback in prices as U.S. President Joe Biden's visit to Israel concluded without any further escalation in the Israel-Hamas conflict, said CMC Markets analyst Tina Teng. "But the market is still under upside pressure amid the geopolitical tensions," she said. Still, prices were pressured by the announcement that U.S. issued a six-month license authorizing transactions in Venezuela's energy sector, an OPEC member, after a deal was reached between the Venezuelan government and the country's political opposition to ensure fair 2024 elections. Venezuela's oil flows could help to ease global oil prices, up amid the Israel-Hamas conflict, sanctions on Russia and OPEC+ decisions to reduce output, but Venezuela needs investments to boost output following years of sanctions. U.S. crude oil and fuel inventories dropped last week on rising demand for diesel and heating oil, according to data from the Energy Information Administration. Distillate fuel stockpiles fell by 3.2 million barrels in the week to Oct. 13 to 113.8 million barrels, EIA data showed. Crude inventories fell by 4.5 million barrels to 419.7 million barrels, while gasoline fell by 2.4 million barrels to 223.3 million barrels. Supply may tighten further as Russia's oil exports via its western sea ports in November are seen falling by some 300,000 bpd as domestic refineries are expected to raise runs as seasonal maintenance ends, sources told Reuters.
  • 12. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase Specual Coverage The Energy world –October 19 -2023 CLEAN ENERGY Lack of ambition and attention risks making electricity grids the weak link in clean energy transitions IEA The backbone of today’s electricity systems, grids are set to become increasingly important as clean energy transitions progress, but they currently receive too little attention. Grids have been delivering power to households, businesses and industry for over 100 years. Clean energy transitions are now driving the transformation of our energy systems and expanding the role of electricity across economies. As a result, countries’ transitions to net zero emissions need to be underpinned by bigger, stronger and smarter grids. To achieve countries’ national energy and climate goals, the world’s electricity use needs to grow 20% faster in the next decade than it did in the previous one. Electricity demand needs to grow even more rapidly in a global pathway to net zero emissions by 2050, which is consistent with limiting the rise in global temperatures to 1.5 °C. Expanded grids are critical to enable such levels of growth as the world deploys more electric vehicles, installs more electric heating and cooling systems, and scales up hydrogen production using electrolysis. Reaching national goals also means adding or refurbishing a total of over 80 million kilometres of grids by 2040, the equivalent of the entire existing global grid. Grids are essential to decarbonise electricity supply and effectively integrate renewables. In a scenario in which countries’ national energy and climate goals are met on time and in full, wind and solar PV account for over 80% of the total increase in global power capacity in the next two decades, compared with less than 40% over the past two decades.
  • 13. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 In the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, wind and solar account for almost 90% of the increase. The acceleration of renewable energy deployment calls for modernising distribution grids and establishing new transmission corridors to connect renewable resources – such as solar PV projects in the desert and offshore wind turbines out at sea – that are far from demand centres like cities and industrial areas. Modern and digital grids are vital to safeguard electricity security during clean energy transitions. As the shares of variable renewables such as solar PV and wind increase, power systems need to become more flexible to accommodate the changes in output. In a scenario consistent with meeting national climate goals, the need for system flexibility doubles between 2022 and 2030. Grids need to both operate in new ways and leverage the benefits of distributed resources, such as rooftop solar, and all sources of flexibility. This includes deploying grid-enhancing technologies and unlocking the potential of demand response and energy storage through digitalisation. At least 3 000 gigawatts (GW) of renewable power projects, of which 1 500 GW are in advanced stages, are waiting in grid connection queues – equivalent to five times the amount of solar PV and wind capacity added in 2022. This shows grids are becoming a bottleneck for transitions to net zero emissions. The number of projects awaiting connection worldwide is likely to be even higher, as data on such queues is accessible for countries accounting for half of global wind and solar PV capacity. While investment in renewables has been increasing rapidly – nearly doubling since 2010 – global investment in grids has barely changed, remaining static at around USD 300 billion per year. Delays in grid investment and reform would substantially increase global carbon dioxide (CO2) emissions, slowing energy transitions and putting the 1.5 °C goal out of reach. For this report, we developed the Grid Delay Case to explore the impacts of more limited investment, modernisation, digitalisation and operational changes than are envisioned in the IEA’s climate-focused scenarios. The Grid Delay Case shows transitions stalling, with slower uptake of renewables and higher fossil fuel use. Cumulative CO2 emissions from the power sector to 2050 would be 58 gigatonnes higher in the Grid Delay Case than in a scenario aligned with national climate targets. This is equivalent to the total global power sector CO2 emissions from the past four years. It would also mean that the global long-term temperature rise would go well above 1.5 °C, with a 40% chance of it exceeding 2 °C.
  • 14. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 At a time of fragile natural gas markets and concerns about gas supply security, failing to build out grids increases countries’ reliance on gas. In the Grid Delay Case, global gas imports are over 80 billion cubic metres (bcm) a year higher after 2030 than in a scenario aligned with national climate targets – and coal imports nearly 50 million tonnes higher. Delayed grid development also increases the risk that economically damaging outages would multiply. Today, such outages already cost around USD 100 billion a year, or 0.1% of global GDP. Regulation needs to be reviewed and updated to support not only deploying new grids but also improving the use of assets. Grid regulation needs to incentivise grids to keep pace with the rapid changes in electricity demand and supply. This requires addressing administrative barriers, rewarding high performance and reliability, and spurring innovation. Regulatory risk assessments also need to improve to enable accelerated buildout and efficient use of infrastructure. Planning for transmission and distribution grids needs to be further aligned and integrated with broad long-term planning processes by governments. New grid infrastructure often takes five to 15 years to plan, permit and complete, compared with one to five years for new renewables projects and less than two years for new EV charging infrastructure. Grid plans need to integrate inputs from long-term energy transition plans across sectors, anticipating and enabling the growth of distributed resources, connecting resource-rich regions including offshore wind, and reflecting links with other sectors including transport, buildings and industry, and fuels such as hydrogen. Robust stakeholder and public engagement is key to inform scenario development. The public needs to be aware and informed about the link between grids and successful energy transitions. To meet national climate targets, grid investment needs to nearly double by 2030 to over USD 600 billion per year after over a decade of stagnation at the global level, with emphasis on digitalising and modernising distribution grids.
  • 15. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 Concerningly, emerging and developing economies, excluding China, have seen a decline in grid investment in recent years, despite robust electricity demand growth and energy access needs. Advanced economies have seen steady growth in grid investment, but the pace needs to step up to enable rapid clean energy transitions. Investment continues to rise in all regions beyond 2030. Building out grids requires secure supply chains and a skilled workforce. Governments can support the expansion of supply chains by creating firm and transparent project pipelines and by standardising procurement and technical installations. They also need to build in future flexibility by ensuring interoperability of all the different elements of the system. There is also a significant need for skilled professionals across the entire supply chain, as well as at operators and regulatory institutions. It will be essential to build out a pipeline of talent, ensure digital skills are integrated into power industry curricula and manage the impacts of the energy transition and increased automation on workers through reskilling and on-the-job training. The most important barriers to grid development differ by region. The financial health of utilities is a central challenge in some countries, including India, Indonesia and Korea, while access to finance and high cost of capital are key barriers in many emerging market and developing economies, particularly in Sub-Saharan Africa. Financial barriers can be addressed by improving the way grid companies are remunerated, driving targeted grid funding and increasing cost transparency. For other jurisdictions, such as Europe, the United States, Chile and Japan, the strongest barriers relate to public acceptance of new projects and the need for regulatory reform. Here, policy makers can speed up progress on grids by enhancing planning, ensuring regulatory risk assessments allow for anticipatory investments and streamlining administrative processes.
  • 16. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 NewBase Energy News 19-October - Issue No. 1666 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 17. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17
  • 18. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18