Utilimetrics, the premier voice of the AMR/AMI industry, has hired Joel Hoiland, CAE, as its first full-time chief executive officer, to oversee the transition of Utilimetrics from an outsourced management company to a standalone organization.
Hoiland is a seasoned trade association executive, who has served as Utilimetrics part-time CEO since 2008.
Utilimetrics, formerly known as the Automatic Meter Reading Association (AMRA), has been managed by The Sherwood Group, Inc. (TSGI) since 1991. “Our board members agree 2009 is the year to take Utilimetrics to the next level, which means becoming a standalone association,” said Bernie Bujnowski, Utilimetrics president.
“Becoming a standalone organization will strengthen Utilimetrics’ operating structure and allow us to best serve our members. Utilimetrics is the primary source for information about advanced metering, communications, utility automation and data management solutions, as well as the voice for the industry,” said Hoiland.
“Even in an uncertain economy the outlook is very positive for our members’ products and services. As a standalone association Utilimetrics has a greater opportunity to address issues related to smart grid initiatives, electricity demand, resource conservation, aging infrastructure, limited supply, shrinking margins, operating costs and political efforts to seek energy independence” explained Hoiland. This is an exciting time for the industry and our association.”
Enel Green Power España Aragon wind farms advance Spain's renewable energy transition, with 90MW under construction in Teruel, Endesa investment of €88 million, 25-50MW turbines, and 2017 auction-backed capacity enhancing grid integration and clean power.
Key Points
They are three Teruel wind projects totaling 90MW, part of Endesa's 2017-awarded plan expanding Spain's clean energy.
✅ 90MW across Sierra Costera I, Allueva, and Sierra Pelarda
✅ €88m invested; 14+7+4 turbines; Endesa-led build in Teruel
✅ Part of 2017 tender: 540MW wind, 339MW solar, nationwide
Enel Green Power Espana, part of Enel's wind projects worldwide, has started constructing three wind farms in Aragon, north-east Spain, which are due online by the end of the year.
The projects, all situated in the Teruel province, are worth a total investment of €88 million.
The biggest of the facilities, Sierra Costera I, will have a 50MW and will feature 14 turbines.
The wind farm is spread across the municipalities of Mezquita de Jarque, Fuentes Calientes, Canada Vellida and Rillo.
The Allueva wind facility will feature seven turbines and will exceed 25MW.
Sierra Pelarda, in Fonfria, will have four turbines and a capacity of 15MW, as advances in offshore wind turbine technology continue to push scale elsewhere.
The projects bring the total number of wind farms that Enel Green Power Espana has started building in the Teruel province to six, equal to an overall capacity of 218MW.
Endesa chief executive Jose Bogas said: “These plants mark the acceleration on a new wave of growth in the renewable energy space that Endesa is committed to pursue in the next years, driving the energy transition in Spain.”
The six wind farms under construction in Teruel are part of the 540MW that Enel Green Power Espana was awarded in the Spanish government's renewable energy tender held in May 2017.
In Aragon, the company will invest around €434 million euros, reflecting broader European wind power investment trends in recent years, to build 13 wind farms with a total installed capacity of more than 380MW.
The remaining 160MW of wind capacity will be located in Andalusia, Castile-Leon, Castile La Mancha and Galicia, even as some Spanish turbine factories closed during pandemic restrictions.
Enel Green Power Espana was also awarded 339MW of solar capacity in the Spanish government's auction held in July 2017, while other Spanish developers advance CSP projects abroad in markets like Chile.
Once all wind and solar under the 2017 tender are complete they will boost the company’s capacity by around 52%.
Lebanon Power Barge Controversy spotlights Karadeniz Energy's Esra Sultan, Lebanon's electricity crisis, prolonged blackouts, and sectarian politics as Amal and Hezbollah clash over Zahrani vs Jiyeh docking and allocation across regions.
Key Points
A political dispute over the Esra Sultan power ship, its docking, and power allocation amid Lebanon's chronic blackouts.
✅ Karadeniz Energy lent a third barge at below-market rates.
✅ Amal vs Hezbollah split exposes sectarian energy politics.
It was supposed to be a goodwill gesture from an energy company in Turkey.
This summer, the Karadeniz Energy Group lent Lebanon a floating power station to generate electricity at below-market rates to help ease the strain on the country's woefully undermaintained power sector.
Instead, the barge's arrival opened a Pandora's box of partisan mudslinging in a country hobbled by political sectarianism and dysfunction.
There have been rows over where it should dock, how to allocate its 235 megawatts of power, and even what to call the barge, echoing controversies like the Maine electric line debate that pit local politics against energy needs.
It has even driven a wedge between Lebanon's two dominant parties among Shiite Muslims: Amal and the militant group Hezbollah.
Amal, which has held the parliament speaker's seat since 1992, revealed sensationally last week it had refused to allow the boat to dock in a port in the predominantly Shiite south, even though it is one of the most underserved regions of Lebanon.
Power outages in the south can stretch on for more than 12 hours a day, much like the Gaza electricity crisis, according to regional observers.
Hezbollah, which normally stands pat with Amal in political matters, issued an exceptional statement that it had nothing to do with the matter of the barge at Zahrani port. A Hezbollah lawmaker went further to say his party disagreed on the issue with Amal.
Ali Hassan Khalil, Lebanon's Finance Minister and a leading Amal party member, said southerners wanted a permanent power station, not a stop-gap solution, in an implied dig at the rival Free Patriotic Movement, a Christian party that runs the Energy Ministry.
But critics seized on the statement as confirmation that Amal's leaders were in bed with the operators of private generators, who have been making fortunes selling electricity during blackouts at many times the state price.
"For decades there's been nothing stopping them from building a power plant," said Mohammad Obeid, a former Amal party official, in an interview with Lebanon's Al Jadeed TV station.
"Now there's a barge that's coming for three months to provide a few more hours of electricity -- and that's the issue?"
Hassan Khalil, reached by phone, refused to comment.
Nabih Berri, Amal's chief and Lebanon's parliament speaker, who has long been the subject of critical coverage from Al Jadeed's, sued the TV channel for libel on Wednesday for its reporting.
Energy Minister Cesar Abi Khalil, a Christian, lashed out at Amal, saying the ministry even changed the barge's name from Ayse, Turkish for Aisha, a name associated in Lebanon with Sunnis, to Esra Sultan, which does not carry any Shiite or Sunni connotations, to try to get it to dock in Zahrani.
Karadeniz said the barge was renamed "out of courtesy and respect to local customs and sensitivities."
"Ayse is a very common Turkish name, where such preferences are not as sensitive as in Lebanon," it said in a statement to The Associated Press.
Finally, on July 18, the barge docked in Jiyeh, a harbour south of Beirut but north of Zahrani, and in a religiously mixed Muslim area.
But two weeks later it was unmoored again, after Abi Khalil, the energy minister, said the infrastructure at Jiyeh could only handle 30 megawatts of the Esra Sultan's 235 capacity, and upgrades such as burying subsea cables are expensive.
With Zahrani closed to the Esra Sultan, it could only go to Zouq Mikhael, a port in the Christian-dominated Kesrouan region in the north, where it was plugged to the grid Tuesday night, giving the region almost 24 hours of electricity a day.
Lebanon has been contending with rolling blackouts since the days of its 1975-1990 civil war. Successive governments have failed to agree on a permanent solution for the chronic electricity failures, largely because of profiteering, endemic corruption and lack of political will, despite periodic pushes for electricity sector reform in Lebanon over the years.
In 2013, the Energy Ministry contracted with Karadeniz to buy electricity from a pair of its barges, which are still docked in Jiyeh and Zouq Mikhael.
This summer, Abi Khalil signed a new contract with Karadeniz to keep the barges for another three years. As part of the deal, Karadeniz agreed to lend Lebanon the third barge, the Esra Sultan, to produce electricity for three months at no cost - Lebanon would just have to pay for the fuel.
The company said Lebanon's internal squabbles do not affect how long the Esra Sultan would stay in Lebanon, even amid wider sector volatility and the pandemic's impact highlighted in a recent financial update. It arrived on July 18 and it will leave on Oct. 18, it said.
Everything Electric Vancouver spotlights EV innovation, electric vehicles, charging infrastructure, battery technology, autonomous driving, and sustainability, with test drives, consumer education, and incentives accelerating mainstream adoption and shaping the future of clean transportation.
Key Points
Everything Electric Vancouver is a premier EV expo for vehicles, charging tech, and clean mobility solutions.
✅ New EV models: better range, battery tech, autonomous features
✅ Focus on charging networks: ultra-fast and home solutions
✅ Consumer education: test drives, incentives, ownership costs
Vancouver has once again become the epicenter of electric vehicle (EV) innovation with the return of the "Everything Electric" event. This prominent showcase, as reported by Driving.ca, highlights the accelerating shift towards electric mobility, echoing momentum seen at the Quebec Electric Vehicle Show and the growing role of EVs in shaping the future of transportation. The event, held at the Vancouver Convention Centre, provided a comprehensive look at the latest advancements in electric vehicles, infrastructure, and technologies, drawing attention from industry experts, enthusiasts, and consumers alike.
A Showcase of Electric Mobility
"Everything Electric" has established itself as a key platform for unveiling new electric vehicles and technologies. This year’s event was no exception, featuring a diverse range of electric vehicles from leading manufacturers. Attendees had the opportunity to explore a wide array of models, from sleek sports cars and luxury sedans to practical SUVs and compact city cars. The showcase underscored the significant progress in EV design, performance, and affordability, reflecting a broader trend towards mainstream adoption of electric mobility.
One of the highlights of this year’s event was the unveiling of several cutting-edge electric models. Automakers used the platform to debut their latest innovations, including enhanced battery technologies, improved range capabilities, and advanced autonomous driving features. This not only demonstrated the rapid evolution of electric vehicles but also underscored the commitment of the automotive industry to addressing environmental concerns and meeting consumer demands for sustainable transportation solutions.
Expanding Charging Infrastructure
Beyond showcasing vehicles, "Everything Electric" also emphasized the critical role of charging infrastructure in supporting the growth of electric mobility. The event featured exhibits on the latest developments in charging technology, including ultra-fast chargers, innovative home charging solutions, and corridor networks such as B.C.'s Electric Highway that connect communities. With the increasing number of electric vehicles on the road, expanding and improving charging infrastructure is essential for ensuring convenience and reducing range anxiety among EV owners.
Industry experts and policymakers discussed strategies for accelerating the deployment of charging stations and integrating them into urban planning, while considering the B.C. Hydro bottleneck projections as demand grows. The event highlighted initiatives aimed at expanding public charging networks, particularly in underserved areas, and improving the overall user experience. As electric vehicles become more prevalent, the development of a robust and accessible charging infrastructure will be crucial for supporting their widespread adoption.
Driving Innovation and Sustainability
"Everything Electric" also served as a platform for discussions on the broader impact of electric vehicles on sustainability and innovation. Panels and presentations explored topics such as the environmental benefits of reducing greenhouse gas emissions, the role of renewable energy in powering EVs, insights from the evolution of U.S. EV charging infrastructure, and advancements in battery recycling and second-life applications. The event underscored the interconnected nature of electric mobility and sustainability, highlighting how innovations in one area can drive progress in others.
The emphasis on sustainability was evident throughout the event, with many exhibitors showcasing eco-friendly technologies and practices. From energy-efficient manufacturing processes to sustainable materials used in vehicle interiors, the event highlighted the automotive industry's efforts to reduce its environmental footprint and contribute to a more sustainable future.
Consumer Engagement and Education
A key aspect of "Everything Electric" was its focus on consumer engagement and education. The event offered test drives and interactive demonstrations, mirroring interest at the Regina EV event as well, allowing attendees to experience firsthand the benefits and performance of electric vehicles. This hands-on approach helped demystify electric mobility for many consumers and provided valuable insights into the practical aspects of owning and operating an EV.
In addition to vehicle demonstrations, the event featured workshops and informational sessions on topics such as EV financing, government incentives, and the benefits of transitioning to electric vehicles, reflecting how EVs in southern Alberta are a growing topic today. These educational opportunities were designed to empower consumers with the knowledge they need to make informed decisions about adopting electric mobility.
Looking Ahead
The successful return of "Everything Electric" to Vancouver highlights the growing importance of electric vehicles in the automotive landscape. As the event demonstrated, the electric vehicle market is rapidly evolving, with new technologies and innovations driving progress towards a more sustainable future. The increased focus on charging infrastructure, sustainability, and consumer education reflects a comprehensive approach to supporting the transition to electric mobility, exemplified by B.C.'s charging expansion across the province.
As Canada continues to advance its climate goals and promote sustainable transportation, events like "Everything Electric" play a crucial role in showcasing the possibilities and driving forward the adoption of electric vehicles. With ongoing advancements and increased consumer interest, the future of electric mobility in Vancouver and beyond looks increasingly promising.
CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.
Key Points
A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.
✅ Aero-derivative turbines beat industrial units on efficiency
✅ Flare gas recovery cuts routine flaring and fuel waste
✅ Combined cycle raises efficiency and lowers emissions
By Tom Baxter
The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.
I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.
As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.
There were many differences, here are three;
1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.
There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.
Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.
Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.
My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.
Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants
2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.
On UK installations gas is always flared due to the design of the oil and gas processing plant.
Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.
In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.
On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.
Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.
3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.
Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.
There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.
Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.
Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.
I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.
The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.
However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.
What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.
A tax that makes CO2 a significant part of offshore operating costs.
The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.
Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.
Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.
To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.
Key Points
A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.
✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.
✅ Renewables led with $297b; solar and wind unit costs declined.
✅ Coal plant approvals plunged; networks and storage spending rose.
Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.
Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.
"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.
"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.
Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.
"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.
The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.
"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.
Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.
"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."
Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.
COAL INVESTMENT IS COMING TO AN END
Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.
"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.
The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.
Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.
Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.
China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.
Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.
