Iberdrola planning large pumped-storage plant

Brazil Energy Emergency Loan Package aims to bolster utilities via BNDES as coronavirus curbs electricity demand. Aneel and the Mines and Energy Ministry weigh measures while Eletrobras privatization and auctions face delays.

Key Points

An emergency plan supporting Brazilian utilities via BNDES and banks during coronavirus demand slumps and payment risks.

✅ Modeled on 2014-2015 sector loans via BNDES and private banks

✅ Addresses cash flow from lower demand and bill nonpayment

✅ Auctions and Eletrobras privatization delayed amid outbreak

Brazil’s government is considering an emergency loan package for energy distributors struggling with lower energy use and facing lost revenues because of the coronavirus outbreak, echoing strains seen elsewhere such as Germany's utility troubles during the energy crisis, an industry group told Reuters.

Marcos Madureira, president of Brazilian energy distributors association Abradee, said the package being negotiated by companies and the government could involve loans from state development bank BNDES or a pool of banks, but that the value of the loans and other details was not yet settled.

Also, Brazil’s Mines and Energy Ministry is indefinitely postponing projects to auction off energy transmission and generation assets planned for this year because of the coronavirus, even as the need for electricity during COVID-19 remained critical, it said in the Official Gazette.

The coronavirus outbreak will also delay the privatization of state-owned utility Eletrobras, its chief executive officer said on Monday.

The potential loan package under discussion would resemble a similar measure in 2014 and 2015 that offered about 22 billion reais ($4.2 billion) in loans to the sector as Brazil was entering its deepest recession on record, and drawing comparisons to a proposed Texas market bailout after a winter storm, Madureira said.

Public and private banks including BNDES, Caixa Economica Federal, Itau Unibanco and Banco Bradesco participated in those loans.

Three sources involved in the discussions said on condition of anonymity that the Mines and Energy Ministry and energy regulator Aneel were considering the matter.

Aneel declined to comment. The Mines and Energy Ministry and BNDES did not immediately respond to requests for comment.

Energy distributors worry that reduced electricity demand during COVID-19 could result in deep revenue losses.

The coronavirus has led to widespread lockdowns of non-essential businesses in Brazil, while citizens are being told to stay home. That is causing lost income for many hourly and informal workers in Brazil, who could be unable to pay their electricity bills, raising risks of pandemic power shut-offs for vulnerable households.

The government sees a loan package as a way to stave off a potential chain of defaults in the sector, a move discussed alongside measures such as a Brazil tax strategy on energy prices, one of the sources said.

On a conference call with investors about the company’s latest earnings, Eletrobras CEO Wilson Ferreira Jr. said privatization would be delayed, without giving any more details on the projected time scale.

The largest investors in Brazil’s energy distribution sector include Italy’s Enel, Spain’s Iberdrola via its subsidiary Neoenergia and China’s State Grid via CPFL Energia, with Chinese interest also evidenced by CTG's bid for EDP, as well as local players Energisa e Equatorial Energia. 

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Downed Power Line Vehicle Safety: Follow stay-in-the-car protocol, call 911, avoid live wires and utility poles, and use the bunny hop to escape only for fire. Electrical hazards demand emergency response caution.

Key Points

Stay in the car, call 911, and use a bunny hop escape only if fire threatens during downed power line incidents.

✅ Stay in vehicle; tell bystanders to keep back and call 911.

✅ Exit only for fire; jump clear and bunny hop away.

✅ Treat all downed lines as live; avoid paths to ground.

Ameren Illinois and Safe Electricity are urging the public to stay in their cars and call 911 in the event of an accident involving a power pole that brings down power lines on or around the car.

In a media simulation Tuesday at the Ameren facility on West Lafayette Avenue, Ameren Illinois employees demonstrated the proper way to react if a power line has fallen on or around a vehicle, as some utilities consider on-site staffing measures during outbreaks. Although the situation might seem rare, Illinois motorists alone hit 3,000 power poles each year, said Krista Lisser, communications director for Safe Energy.

“We want to get the word out that, if you hit a utility pole and a live wire falls on your vehicle, stay in your car,” Lisser said. “Our first reaction is we panic and think we need to get out, a sign of the electrical knowledge gap many people have. That’s not the case, you need to stay in because, when that live wire comes down, electricity is all around you. You may not see it, it may not arc, it may not flash, you may not know if there’s electricity there.”

Should someoneinvolved in such an accident see a good Samaritan attempting to help, he should try to tell the would-be rescuer to stay back to prevent injury to the Samaritan, Ameren Illinois Communications Executive Brian Bretsch said.

“We have seen instances where someone comes up and wants to help you,” Bretsch said. “You want to yell, ‘Please stay away from the vehicle. Everyone is OK. Please stay away.’ You’ll see … instances every now and then where the Samaritan will come up, create that path to ground and get injured, and there are also climbers seeking social media glory who put themselves at risk.”

The only instance in which one should exit a car in the vicinity of a downed wire is if the vehicle is on fire and there is no choice but to exit. In that situation, those in the car should “bunny hop” out of the car by jumping from the car without touching the car and the ground at the same time, Bretsch and Lisser said.

After the initial jump, those escaping the vehicle should continue jumping with both feet together and hands tucked in and away from danger until they are safely clear of the downed wire.

It’s important for everyone to be informed, because an encounter with a live wire could easily result in serious injury, as in the Hydro One worker injury case, or death, Lisser said.

“They’re so close to our roads, especially in our rural communities, that it’s quite a common occurrence,” Lisser said. “Just stay away from (downed lines), especially after storms and amid grid oversight warnings that highlight reliability risks … Always treat a downed line as a live wire. Never assume the line is dead.”

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EU Electrification Strategy 2050 outlines shifting transport, buildings, and industry to clean power, accelerating EV adoption, heat pumps, and direct electrification to meet targets, reduce emissions, and replace fossil fuels with renewables and low-carbon grids.

Key Points

EU plan to cut emissions 95% by 2050 by electrifying transport, buildings and industry with clean power.

✅ 60% of final energy from electricity by 2050

✅ EVs dominate transport; up to 63% electric share

✅ Heat pumps electrify buildings; industry to 50% direct

The European Union has one of the most ambitious carbon emission reduction goals under the global Paris Agreement on climate change – a 95% reduction by 2050.

It seems that everyone has an idea for how to get there. Some are pushing nuclear energy. Others are pushing for a complete phase-out of fossil fuels and a switch to renewables.

Today the European electricity industry came out with their own plan, amid expectations of greater electricity price volatility in Europe in the coming years. A study published today by Eurelectric, the trade body of the European power sector, concludes that the 2050 goal will not be possible without a major shift to electricity in transport, buildings and industry.

The study finds that for the EU to reach its 95% emissions reduction target, electricity needs to cover at least 60 percent of final energy consumption by 2050. This would require a 1.5 percent year-on-year growth of EU electricity use, with evidence that EVs could raise electricity demand significantly in other markets, while at the same time reducing the EU’s overall energy consumption by 1.3 percent per year.

#google#

Transport is one of the areas where electrification can deliver the most benefit, because an electric car causes far less carbon emissions than a conventional vehicle, with e-mobility emerging as a key driver of electricity demand even if that electricity is generated in a fossil fuel power plant.

In the most ambitious scenario presented by the study, up to 63 percent of total final energy consumption in transport will be electric by 2050, and some analyses suggest that mass adoption of electric cars could occur much sooner, further accelerating progress.

Building have big potential as well, according to the study, with 45 to 63 percent of buildings energy consumption could be electric in 2050 by converting to electric heat pumps. Industrial processes could technically be electrified with up to 50 percent direct electrification in 2050, according to the study. The relative competitiveness of electricity against other carbon-neutral fuels will be the critical driver for this shift, but grid carbon intensity differs across markets, such as where fossil fuels still supply a notable share of generation.

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BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

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Energy Vault Gravity Storage uses crane-stacked concrete blocks to deliver long-duration, grid-scale renewable energy; a SoftBank Vision Fund-backed, pumped-hydro analog enabling baseload power and a lithium-ion alternative with proprietary control algorithms.

Key Points

Gravity-based cranes stack blocks to store and dispatch power for hours, enabling grid-scale, low-cost storage.

✅ 4 MW/35 MWh modules; ~9-hour duration

✅ Estimated $200-$250/kWh; lower LCOE than lithium-ion

✅ Backed by SoftBank Vision Fund; Cemex and Tata support

Energy Vault, the Swiss-U.S. startup that says it can store and discharge electrical energy through a super-sized concrete-and-steel version of a child’s erector set, has landed a $110 million investment from Japan’s SoftBank Vision Fund to take its technology to commercial scale.

Energy Vault, a spinout of Pasadena-based incubator Idealab and co-founded by Idealab CEO and billionaire investor Bill Gross, unstealthed in November with its novel approach to using gravity to store energy.

Simply put, Energy Vault plans to build storage plants — dubbed “Evies” — consisting of a 35-story crane with six arms, surrounded by a tower consisting of thousands of concrete bricks, each weighing about 35 tons.

This plant will “store” energy by using electricity to run the cranes that lift bricks from the ground and stack them atop of the tower, and “discharge” energy by reversing that process. It’s a mechanical twist on the world’s most common energy storage technology, pumped hydro, which “stores” energy by pumping water uphill, and lets it fall to spin turbines when electricity is needed, even as California funds 100-hour long-duration storage pilots to expand flexibility worldwide.

But behind this simplicity lies some heavy-duty software to orchestrate the cranes and blocks, with a "unique stack of proprietary algorithms" to balance energy supply and demand, volatility, grid stability, weather elements and other variables.

CEO and co-founder Robert Piconi said in a November interview with GTM that the standard array would deliver 4 megawatts/35 megawatt-hours of storage, which translates to nearly 9 hours of duration — the equivalent of building the tower to its height, and then reducing it to ground level. It can be built on-site in partnership with crane manufacturers and recycled concrete material, and can run fully automated for decades with little deterioration, he said.

And the cost, which Piconi pegged in the $200 to $250 per kilowatt-hour range, with room to decline further, is roughly 50 percent below the upfront price of the conventional storage market today, and 80 percent below it on levelized cost, he said, a trend utilities see benefits in as they plan resources.

The result, according to Wednesday’s statement, is a technology that could allow “renewables to deliver baseload power for less than the cost of fossil fuels 24 hours a day,” in applications such as community microgrids serving low-income housing.

Wednesday’s announcement builds on a recent investment from Mexico's Cemex Ventures, the corporate venture capital unit of building materials giant Cemex, along with a promise of deployment support from Cemex's strategic network, and also follows project financing for a California green hydrogen microgrid led by the company. Piconi said in November that the company had sufficient investment from two funding rounds to carry it through initial customer deployments, though he declined to disclose figures.

This is the first energy storage investment for Vision Fund, the $100 billion venture fund set up by SoftBank founder Masayoshi Son. While large by startup standards, it’s in keeping with the capital costs that Energy Vault will face in scaling up its technology to meet its commitments, amid mounting demand in regions like Ontario energy storage that face supply crunches. Those include a 35 megawatt-hour order with Tata Power Company, the energy-producing arm of the Indian industrial conglomerate, first unveiled in November, as well as plans to demonstrate its first storage tower in northern Italy in 2019.

For Vision Fund, it’s also an unusual choice for a storage investment, given that the vast majority of venture capital in the industry today is being directed toward lithium-ion batteries, and even Mercedes-Benz energy storage ventures targeting the U.S. market. Lithium-ion batteries are limited in terms of how many hours they can provide cost-effectively, with about 4 hours being seen as the limit today.

The search for long-duration energy storage has driven investment into flow battery technologies such as grid-scale vanadium systems deployed on utility networks, compressed-air energy storage and variations on gravity-based storage, including a previous startup backed by Gross and Idealab, Energy Cache, whose idea of using a ski lift carrying buckets of gravel up a hill to store energy petered out with a 50-kilowatt pilot project.

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Renewables 2020 Global Status Report highlights renewable energy gaps beyond power, urging decarbonization in heating, cooling, and transport, greener COVID-19 recovery, market reforms, and rapid energy transition to cut CO2 emissions and fossil fuel dependence.

Key Points

REN21's annual report on renewable energy progress and policy gaps across power, heating, cooling, and transport.

✅ Calls for decarbonizing heating, cooling, and transport.

✅ Warns COVID-19 recovery must avoid fossil fuel lock-in.

✅ Urges market reforms to boost energy efficiency and renewables.

Growth in renewable power has been impressive over the past five years, with over 30% of global electricity now coming from renewables worldwide. But too little is happening in heating, cooling and transport. Overall, global hunger for energy keeps increasing and eats up progress, according to REN21's Renewables 2020 Global Status Report (GSR), released today. The journey towards climate disaster continues, unless we make an immediate switch to efficient and renewable energy in all sectors in the wake of the COVID-19 pandemic.

"Year after year, we report success after success in the renewable power sector. Indeed, renewable power has made fantastic progress. It beats all other fuels in growth and competitiveness. Many national and global organisations already cry victory. But our report sends a clear warning: The progress in the power sector is only a small part of the picture. And it is eaten up as the world's energy hunger continues to increase. If we do not change the entire energy system, we are deluding ourselves," says Rana Adib, REN21's Executive Director.

The report shows that in the heating, cooling and transport sectors, the barriers are still nearly the same as 10 years ago. "We must also stop heating our homes and driving our cars with fossil fuels," Adib claims.

There is no real disruption in the COVID-19 pandemic

In the wake of the extraordinary economic decline due to COVID-19, the IEA predicts energy-related CO2 emissions are expected to fall by up to 8% in 2020. But 2019 emissions were the highest ever, and the relief is only temporary. Meeting the Paris targets would require an annual decrease of at least 7.6% to be maintained over the next 10 years, and UN analysis on NDC ambition underscores the need for faster action. Says Adib: "Even if the lock-downs were to continue for a decade, the change would not be sufficient. At the current pace, with the current system and current market rules, it would take the world forever to come anywhere near a no-carbon system."

"Many recovery packages lock us into a dirty fossil fuel economy"

Recovery packages offer a once-in-a-lifetime chance to make the shift to a low-carbon economy, and green energy investments could accelerate COVID-19 recovery. But according to Adib there is a great risk for this enormous chance to be lost. "Many of these packages include ideas that will instead lock us further into a dirty fossil fuel system. Some directly promote natural gas, coal or oil. Others, though claiming a green focus, build the roof and forget the foundation," she says. "Take electric cars and hydrogen, for example. These technologies are only green if powered by renewables."

Choosing an energy system that supports job creation and social justice

The report points out that "green" recovery measures, such as investment in renewables and building efficiency, are more cost-effective than traditional stimulus measures and yield more returns. It also documents that renewables deliver on job creation, energy sovereignty, accelerated energy access in developing countries, and clean, affordable and sustainable electricity for all objectives worldwide, alongside reduced emissions and air pollution.

"Renewables are now more cost-effective than ever, and recent IRENA analysis shows their potential to decarbonise the energy sector, providing an opportunity to prioritize clean economic recovery packages and bring the world closer to meeting the Paris Agreement Goals. Renewables are a key pillar of a healthy, safe and green COVID-19 recovery that leaves no one behind," said Inger Andersen, Executive Director of the UN Environment Programme (UNEP). "By putting energy transition at the core of economic recovery, countries can reap multiple benefits, from improved air quality to employment generation."

This contrasts with the true cost of fossil fuels, estimated to be USD 5.2 trillion if costs of negative impacts such as air pollution, effects of climate change, and traffic congestion are counted.

Renewable energy systems support energy sovereignty and democracy, empowering citizens and communities, instead of big fossil fuel producers and consumers. "When spending stimulus money, we have to decide: Do we want an energy system that serves some or a system that serves many?", says Adib. "But it's not only about money. We must end any kind of support to the fossil economy, particularly when it comes to heating, cooling and transport. Governments need to radically change the market conditions and rules and demonstrate the same leadership as during the COVID-19 pandemic."

The report finds:

Total final energy demand continues to be on the rise (1.4% annually from 2013 to 2018). Despite significant progress in renewable power generation, the share of renewables in total final energy demand barely increased (9.6% in 2013 to 11% in 2018). Compared to the power sector, the heating, cooling and transport sectors lag far behind (renewable energy share in power, 26%, heating and cooling, 10%, transport, 3%).

Today's progress is largely the result of policies and regulations initiated years ago and focus on the power sector. Major barriers seen in heating, cooling and transport are still almost the same a decade on. Policies are needed to create the right market conditions.

The renewable energy sector employed around 11 million people worldwide in 2018

In 2019, the private sector signed power purchase agreements (PPAs) for a record growth of over 43% from 2018 to 2019 in new renewable power capacity.

The global climate strikes have reached unprecedented levels with millions of people across 150 countries. They have pushed governments to step up climate ambitions. As of April 2020, 1490 jurisdictions - spanning 29 countries and covering 822 million citizens - had issued "climate emergency" declarations, many of which include plans and targets for more renewable-based energy systems.

While some countries are phasing out coal, examples such as Europe's green surge show how renewables can soar as emissions fall, yet others continued to invest in new coal-fired power plants. In addition, funding from private banks for fossil fuel projects has increased each year since the signing of the Paris Agreement, totaling USD 2.7 trillion over the last three years.

"It is clear, renewable power has become mainstream and that is great to see. But the progress in this one sector should not lead us to believe that renewables are a guaranteed success. Governments need to take action beyond economic recovery packages. They also need to create the rules and the environment to switch to an efficient and renewables-based energy system, and action toward 100% renewables is urgently needed worldwide. Globally. Now." concludes Arthouros Zervos, President of REN21.

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