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Saudi Arabia Wind Power Market set to lead the Middle East, driven by Vision 2030 renewables goals, REPDO tenders, and PIF backing, adding 6.2GW wind capacity by 2028 alongside solar PV diversification.

Key Points

It is the emerging national segment leading Middle East wind growth, targeting 6.2GW by 2028 under Vision 2030 policies.

✅ Adds 6.2GW, 46% of regional wind capacity by 2028

✅ REPDO tenders and PIF funding underpin pipeline

✅ Targets: 16GW wind, 40GW solar under Vision 2030

Saudi Arabia will become a regional heavyweight in the Middle East's wind power market adding over 6GW in the next 10 years, according to new research by Wood Mackenzie Power & Renewables.

The report – 'Middle East Wind Power Market Outlook, 2019-2028’ – said developers will build 6.2GW of wind capacity in the country or 46% of the region’s total wind capacity additions between 2019 and 2028.

Wood Mackenzie Power & Renewables senior analyst Sohaib Malik said: “The integration of renewables in Vision 2030’s objectives underlines strong political commitment within Saudi Arabia.

“The level of Saudi ambition for wind and solar PV varies significantly, despite the cost parity between both technologies during the first round of tenders in 2018.”

Saudi Arabia has set a 16GW target for wind by 2030 and 40GW for solar, plans to solicit 60 GW of clean energy over the next decade, Wood Mackenzie added.

“Moving forward, the Renewable Energy Project Development Office will award 850MW of wind capacity in 2019, which is expected to be commissioned in 2021-2022, and increase the local content requirement in future tendering rounds,” Malik said.

However, Saudi Arabia will fall short of its current 2030 renewables target, despite growth projections and regional leadership, the report said.

Some 70% of the renewables capacity target is to be supported by the Public Investment Fund (PIF), the Saudi sovereign wealth fund, while the remaining capacity is to be awarded through REPDO.

“A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise,” said Malik

“REPDO, on the other hand, completed two renewables request for proposals after pre-developing the sites,” he said.

PIF is estimated to have $230bn of assets – targeted to reach $2 trillion under Vision 2030 – driven by investments in a variety of sectors ranging from electric vehicles to public infrastructure, Wood Mackenzie said.

“There is little doubt about the fund’s financial muscle, however, its past investment strategy focused on established firms in traditional industries,” Malik added.

“Aspirations to develop a value chain for wind and PV technologies locally is a different ball game and requires the PIF to acquire new capabilities for effective oversight of these ventures,” he said.

The report noted that regional volatility is expected to remain, with strong positive growth, driven by Jordan and Iran in 2018 expected to reverse in 2019, and policy shifts, as in Canada’s scaled-back projections, can influence outcomes.

Post-2020 Wood Mackenzie Power & Renewables sees regional demand returning to steady growth as global renewables set more records elsewhere.

“In 2018, developers added 185MW and 63MW of wind capacity in Jordan and Iran, respectively, compared to 53MW of capacity across the entire region in 2017, following a record year for renewables in 2016,” said Malik.

“The completion of the 89MW Al Fujeij and the 86MW Al Rajef projects in 2018 indicates that Jordan has 375MW of the region’s operational 675MW wind capacity.

“Iran followed with 278MW of installed capacity at the end of 2018. A slowdown in 2019 is expected, as project development activity softens in Iran.

“Additionally, delays in awarding the 400MW Dumat Al Jandal project in Saudi Arabia will limit annual capacity additions to 184MW.”

He added that a maturing project pipeline in the region supports the 2020-2021 outlook, even as wind power grew despite Covid-19 globally.

“Saudi Arabian demand serves as the foundation for regional demand. Regional demand diversification is also occurring, with Lebanon set to add 200-400MW to its existing permitted capacity pipeline of 202MW in 2019,” he said

“These developments pave the way for the addition of 2GW of wind capacity between 2019 and 2021.”

Wood Mackenzie Power & Renewables added that the outlook for solar in the region is “much more positive” than wind.

“Compared to only 6GW of wind power capacity, developers will add 53GW of PV capacity through 2024,” said Malik.

He added: “Solar PV, supported by trends such as China’s rapid PV growth in 2016, has become a natural choice for many countries in the region, which is endowed with world class solar energy resources.

“The increased focus on solar energy is demonstrated by ambitious PV targets across the region.”

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Global Energy Investment Decline risks future oil and electricity supply, says the IEA, as spending on upstream, coal plants, and grids falls while renewables, storage, and flexible generation lag in the energy transition.

Key Points

Multi-year cuts to oil, power, and grid spending that increase risks of future supply shortages and market tightness.

✅ IEA warns underinvestment risks oil supply squeeze

✅ China and India slow coal plant additions; renewables rise

✅ Batteries aid flexibility but cannot replace seasonal storage

An almost 20 per cent fall in global energy investment over the past three years could lead to oil and electricity shortages, as surging electricity demand persists, and there are concerns about whether current business models will encourage sufficient levels of spending in the future, according a new report.

The International Energy Agency’s second annual IEA benchmark analysis of energy investment found that while the world spent $US1.7 trillion ($2.2 trillion) on fossil-fuel exploration, new power plants and upgrades to electricity grids last year, with electricity investment surpassing oil and gas even as global energy investment was down 12 per cent from a year earlier and 17 per cent lower than 2014.

While the IEA said continued oversupply of oil and electricity globally would prevent any imminent shock, falling investment “points to a risk of market tightness and undercapacity at some point down the line’’.

The low crude oil price drove a 44 per cent drop in oil and gas investment between 2014 and 2016. It fell 26 per cent last year. It was due to falls in upstream activity and a slowdown in the sanctioning of conventional oilfields to the lowest level in more than 70 years.

“Given the depletion of existing fields, the pace of investment in conventional fields will need to rise to avoid a supply squeeze, even on optimistic assumptions about technology and the impact of climate policies on oil demand,’’ the IEA warned in its report released yesterday evening. “The energy transition has barely begun in several key sectors, such as transport and industry, which will continue to rely heavily on oil, gas and coal for the foreseeable future.’’

The fall in global energy spending also reflected declining investment in power generation, particularly from coal plants.

While 21 per cent of global ­energy investment was made by China in 2016, the world’s fastest growing economy had a 25 per cent decline in the commissioning of new coal-fired power plants, due largely to air pollution issues and investment in renewables.

Investment in new coal-fired plants also fell in India.

“India and China have slammed the brakes on coal-fired generation. That is the big change we have seen globally,’’ said ­Bruce Mountain a director at CME Australia.

“What it confirms is the ­pressures and the changes we are seeing in Australia, the restructuring of our energy supply, is just part of a global trend. We are facing the pressures more sharply in Australia because our power prices are very high. But that same shift in energy source in Australia are being mirrored internationally.’’ The IEA — a Paris-based adviser to the OECD on energy policy — also highlighted Australia’s reduced power reserves in its report and called for regulatory change to encourage greater use of renewables.

“Australia has one of the highest proportions of households with PV systems on their roof of any country in the world, and its ­electricity use in its National ­Electricity Market is spread out over a huge and weakly connected network,’’ the report said.

“It appears that a series of accompanying investments and regulatory changes are needed, including a plan to avoid supply threats, to use Australia’s abundant wind and solar potential: changing system operation methods and reliability procedures as well as investment into network capacity, flexible generation and storage.’’ The report found that in Australia there had been an increase in grid-scale installations mostly associated with large-scale solar PV plants.

Last month the Turnbull ­government revealed it was prepared to back the construction of new coal-fired power stations to prevent further shortfalls in electricity supplies, while the PM ruled out taxpayer-funded plants and declared it was open to using “clean coal” technology to replace existing generators.

He also pledged “immediate” ­action to boost the supply of gas by forcing exporters to divert ­production into the domestic ­market.

Since then technology billionaire Elon Musk has promised to solve South Australia’s energy ­issues by building the world’s largest lithium-ion battery in the state.

But the IEA report said batteries were unlikely to become a “one size fits all” single solution to ­electricity security and flexibility provision.

“While batteries are well-suited to frequency control and shifting hourly load, they cannot provide seasonal storage or substitute the full range of technical services that conventional plants provide to stabilise the system,’’ the report said.

“In the absence of a major technological breakthrough, it is most likely that batteries will complement rather than substitute ­conventional means of providing system flexibility. While conventional plants continue to provide essential system services, their business model is increasingly being called into question in ­unbundled systems.’’

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Texas After-Labor Day School Start could ease ERCOT's power grid strain by shifting peak demand, lowering air-conditioning loads in schools, improving grid reliability, reducing electricity costs, and curbing emissions during extreme heat the summer months.

Key Points

A proposed calendar shift to start school after Labor Day to lower ERCOT peak demand, costs, and grid risk.

✅ Cuts school HVAC loads during peak summer heat

✅ Lowers costly peaker plant use and electricity rates

✅ Requires calendar changes, testing and activities shifts

As Texas faces increasing demands on its power grid, a new proposal is gaining traction: starting the school year after Labor Day. This idea, reported by the Dallas News, suggests that delaying the start of the academic year could help alleviate some of the pressure on the state’s electricity grid during the peak summer months, potentially leading to both grid stability and financial savings. Here’s an in-depth look at how this proposed change could impact Texas’s energy landscape and education system.

The Context of Power Grid Strain

Texas's power grid, operated by the Electric Reliability Council of Texas (ERCOT), has faced significant challenges in recent years. Extreme weather events, record-breaking temperatures, and high energy demand have strained the grid, and some analyses argue that climate change, not demand is the biggest challenge today, leading to concerns about reliability and stability. The summer months are particularly taxing, as the demand for air conditioning surges, often pushing the grid to its limits.

In this context, the idea of adjusting the school calendar to start after Labor Day has been proposed as a potential strategy to help manage electricity demand. By delaying the start of school, proponents argue that it could reduce the load on the power grid during peak usage periods, thereby easing some of the stress on energy resources.

Potential Benefits for the Power Grid

The concept of delaying the school year is rooted in the potential benefits for the power grid. During the hottest months of summer, the demand for electricity often spikes as families use air conditioning to stay cool, and utilities warn to prepare for blackouts as summer takes hold. School buildings, typically large and energy-intensive facilities, contribute significantly to this demand when they are in operation.

Starting school later could help reduce this peak demand, as schools would be closed during the hottest months when the grid is under the most pressure. This reduction in demand could help prevent grid overloads and reduce the risk of power outages, at a time when longer, more frequent outages are afflicting the U.S. power grid, ultimately contributing to a more stable and reliable electricity supply.

Additionally, a decrease in peak demand could help lower electricity costs. Power plants, particularly those that are less efficient and more expensive to operate, are often brought online during periods of high demand. By reducing the peak load, the state could potentially minimize the need for these costly power sources, leading to lower overall energy costs.

Financial and Environmental Considerations

The financial implications of starting school after Labor Day extend beyond just the power grid. By reducing energy consumption during peak periods, the state could see significant savings on electricity costs. This, in turn, could lead to lower utility bills for schools, businesses, and residents alike, a meaningful relief as millions risk electricity shut-offs during summer heat.

Moreover, reducing the demand for electricity from fossil fuel sources can have positive environmental impacts. Lower peak demand may reduce the reliance on less environmentally friendly energy sources, and aligns with calls to invest in a smarter electricity infrastructure nationwide, thereby decreasing greenhouse gas emissions and contributing to overall environmental sustainability.

Challenges and Trade-offs

While the proposal offers potential benefits, it also comes with challenges and trade-offs. Adjusting the school calendar would require significant changes to the academic schedule, potentially affecting extracurricular activities, summer programs, and family plans, and comparisons to California's reliability challenges underscore the complexity. Additionally, there could be resistance from various stakeholders, including parents, educators, and students, who are accustomed to the current school calendar.

There are also logistical considerations to address, such as how a delayed start might impact standardized testing schedules and the academic calendar for higher education institutions. These factors would need to be carefully evaluated to ensure that the proposed changes do not adversely affect educational outcomes or create unintended consequences.

Looking Ahead

The idea of starting Texas schools after Labor Day represents an innovative approach to addressing the challenges facing the state’s power grid. By potentially reducing peak demand and lowering energy costs, and alongside efforts to connect Texas's grid to the rest of the nation, this proposal could contribute to greater grid stability and financial savings. However, careful consideration and planning will be essential to navigate the complexities of altering the school calendar and to ensure that the benefits outweigh the challenges.

As Texas continues to explore solutions for managing its power grid and energy resources, the proposal to shift the school year schedule provides an intriguing possibility. It reflects a broader trend of seeking creative and multifaceted approaches to balancing energy demand, environmental sustainability, and public needs.

In conclusion, starting schools after Labor Day could offer tangible benefits for Texas’s power grid and financial well-being. As discussions on this proposal advance, it will be important to weigh all factors and engage stakeholders to ensure a successful and equitable implementation.

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Utility Pandemic Preparedness strengthens grid resilience through continuity planning, critical infrastructure protection, DOE-DHS coordination, onsite sequestration, skeleton crews, and deferred maintenance to ensure reliable electric and gas service for commercial and industrial customers.

Key Points

Plans that sustain grid operations during outbreaks using staffing limits, access controls, and deferred maintenance.

✅ Deferred maintenance and restricted site access

✅ Onsite sequestering and skeleton crew operations

✅ DOE-DHS coordination and control center staffing

Commercial and industrial businesses can rest assured that the current pandemic poses no real threat to our utilities, with the U.S. grid remaining reliable for now, as disaster planning has been key to electric and gas utilities in recent years, writes Forbes. Beginning a decade ago, the utility and energy industries evolved detailed pandemic plans, outlining what to know about the U.S. grid during outbreaks, which include putting off maintenance and routine activities until the worst of the pandemic has passed, restricting site access to essential personnel, and being able to run on a skeleton crew as more and more people become ill, a capability underscored by FPL's massive Irma response when crews faced prolonged outages.

One possible outcome of the current situation is that the US electric industry may require essential staff to live onsite at power plants and control centers, similar to Ontario work-site lockdown plans under consideration, if the outbreak worsens; bedding, food and other supplies are being stockpiled, reflecting local response preparations many utilities practice, Reuters reported. The Great River Energy cooperative, for example, has had a plan to sequester essential staff in place since the H1N1 bird flu crisis in 2009. The cooperative, which runs 10 power plants in Minnesota, says its disaster planning ensured it has enough cots, blankets and other necessities on site to keep staff healthy.

Electricity providers are now taking part in twice-weekly phone calls with officials at the DOE, the Department of Homeland Security, and other agencies, as Ontario demand shifts are monitored, according to the Los Angeles Times. By planning for a variety of worst case scenarios, including weeks-long restorations after major storms, “I have confidence that the sector will be prepared to respond no matter how this evolves,” says Scott Aaronson, VP of security and preparedness for the Edison Electric Institute.

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Ukraine Electricity Exports resume to the European grid, starting with Moldova and expanding to Poland, Slovakia, and Romania, signaling energy security, grid resilience, added megawatts, and recovery after Russian strikes with support and renewables.

Key Points

Ukraine Electricity Exports are resumed sales of surplus power to EU neighbors, reflecting grid recovery and resilience.

✅ Initial deliveries to Moldova; Poland, Slovakia, Romania to follow.

✅ Extra capacity from repairs, warmer demand, and renewables.

✅ Exports may vary amid ongoing Russian strikes risk.

Ukraine began resuming electricity exports to European countries on Tuesday, its energy minister said, a dramatic turnaround from six months ago when fierce Russian bombardment of power stations plunged much of the country into darkness in a bid to demoralize the population.

The announcement by Energy Minister Herman Halushchenko that Ukraine was not only meeting domestic consumption demands but also ready to restart exports to its neighbors was a clear message that Moscow’s attempt to weaken Ukraine by targeting its infrastructure did not work.

Ukraine’s domestic energy demand is “100%” supplied, he told The Associated Press in an interview, and it has reserves to export due to the “titanic work” of its engineers and international partners.

Russia ramped up infrastructure attacks in September, when waves of missiles and exploding drones destroyed about half of Ukraine’s energy system. Power cuts were common across the country as temperatures dropped below freezing and tens of millions struggled to keep warm.

Moscow said the strikes were aimed at weakening Ukraine’s ability to defend itself, and has also moved to reactivate the Zaporizhzhia plant through new power lines, while Western officials said the blackouts that caused civilians to suffer amounted to war crimes. Ukrainians said the timing was designed to destroy their morale as the war marked its first anniversary.

Ukraine had to stop exporting electricity in October to meet domestic needs.

Engineers worked around the clock, often risking their lives to come into work at power plants and keep the electricity flowing. Kyiv’s allies also provided help. In December, U.S. Secretary of State Antony Blinken announced $53 million in bilateral aid to help the country acquire electricity grid equipment, and USAID mobile gas turbine plant support, on top of $55 million for energy sector support.

Much more work remains to be done, Halushchenko said. Ukraine needs funding to repair damaged generation and transmission lines, and revenue from electricity exports would be one way to do that.

The first country to receive Ukraine’s energy exports will be Moldova, he said.

Besides the heroic work by engineers and Western aid, warmer temperatures are enabling the resumption of exports by making domestic demand lower, even as Germany’s coal generation shapes regional power flows.

Renewables like solar and wind power also come into play as temperatures rise, taking some pressure off nuclear and coal-fired power plants.

But it’s unclear if Ukraine can keep up exports amid the constant threat of Russian bombardment, with any potential agreement on power plant attacks still uncertain.

“Unfortunately now a lot of things depend on the war,” Halushchenko said. “I would say we feel quite confident now until the next winter.”

Exports to Poland, Slovakia and Romania are also on schedule to resume, he said.

“Today we are starting with Moldova, and we are talking about Poland, we are talking about Slovakia and Romania,” Halushchenko added, noting that how much will depend on their needs.

“For Poland, we have only one line that allows us to export 200 megawatts, but I think this month we will finish another line which will increase this to an additional 400 MW, so these figures could change,” he said.

Export revenue will depend on fluctuating electricity prices in Europe, where stunted hydro and nuclear output may affect recovery. In 2022, while Ukraine was still able to export energy, Ukrainian companies averaged 40 million to 70 million euros a month depending on prices, Halushchenko said.
 

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UK Coal Phase-Out signals an energy transition, accelerating decarbonization with offshore wind, solar, and storage, advancing net-zero targets, cleaner air, and a just transition for communities impacted by fossil fuel decline.

Key Points

A policy to end coal power in the UK, boosting renewables and net-zero goals while improving air quality.

✅ Coal electricity fell from 40% in 2012 to under 3% by 2022

✅ Offshore wind and solar expand capacity; storage enhances reliability

✅ Just transition funds retrain workers and support coal regions

The United Kingdom is poised to mark a significant milestone in its energy history by phasing out coal power entirely, ending a reliance that has lasted for 142 years. This decision underscores the UK’s commitment to combating climate change and transitioning toward cleaner energy sources, reflecting a broader global energy transition away from fossil fuels. As the country embarks on this journey, it highlights both the achievements and challenges of moving towards a sustainable energy future.

A Historic Transition

The UK’s relationship with coal dates back to the Industrial Revolution, when coal was the backbone of its energy supply, driving factories, trains, and homes. However, as concerns over air quality and climate change have mounted, the nation has progressively shifted its focus toward renewable energy sources amid a global decline in coal-fired electricity worldwide. The decision to end coal power represents the culmination of this transformation, signaling a definitive break from a past heavily reliant on fossil fuels.

In recent years, the UK has made remarkable strides in reducing its carbon emissions. From 2012 to 2022, coal's contribution to the country's electricity generation plummeted from around 40% to less than 3%, as policies like the British carbon tax took effect across the power sector. This dramatic decline is largely due to the rise of renewable energy sources, such as wind, solar, and hydroelectric power, which have increasingly filled the gap left by coal.

Environmental and Health Benefits

The move away from coal power has significant environmental benefits. Coal is one of the most carbon-intensive energy sources, releasing substantial amounts of carbon dioxide (CO2) and other harmful pollutants into the atmosphere. By phasing out coal, the UK aims to significantly reduce its greenhouse gas emissions and improve air quality, which has been linked to serious health issues such as respiratory diseases and cardiovascular problems.

The UK government has set ambitious net zero policies, aiming to achieve net-zero carbon emissions by 2050. Ending coal power is a critical step in reaching this target, demonstrating leadership on the global stage and setting an example for other countries still dependent on fossil fuels. This transition not only addresses climate change but also promotes a healthier environment for future generations.

The Role of Renewable Energy

As the UK phases out coal, renewable energy sources are expected to play a central role in meeting the country's energy needs. Wind power, in particular, has surged in prominence, with the UK leading the world in offshore wind capacity. In 2020, wind energy surpassed coal for the first time, accounting for over 24% of the country's electricity generation.

Solar energy has also seen significant growth, contributing to the diversification of the UK’s energy mix. The government’s investments in renewable energy infrastructure and technology have facilitated this rapid transition, providing the necessary framework for a sustainable energy future.

Economic Implications

While the transition away from coal power presents environmental benefits, it also carries economic implications. The coal industry has historically provided jobs and economic activity, particularly in regions where coal mining was a mainstay, a dynamic echoed in analyses of the decarbonization of Canada's electricity grid and its regional impacts. As the UK moves toward a greener economy, there is an urgent need to support communities that may be adversely affected by this transition.

To address potential job losses, the government has emphasized the importance of investing in retraining programs and creating new opportunities in the renewable energy sector. This will be vital in ensuring a just transition that supports workers and communities as the energy landscape evolves.

Challenges Ahead

Despite the progress made, the journey toward a coal-free UK is not without challenges. One significant concern is the need for reliable energy storage solutions to complement intermittent renewable sources like wind and solar. Ensuring a stable energy supply during periods of low generation will be critical for maintaining grid reliability.

Moreover, public acceptance and engagement will be crucial, as illustrated by debates over New Zealand's electricity transition and its pace, as the UK navigates this transition. Engaging communities in discussions about energy policies and developments can foster understanding and support for the changes ahead.

Looking to the Future

The UK’s decision to phase out coal power after 142 years marks a significant turning point in its energy policy and environmental strategy. This historic shift not only aligns with the country’s climate goals but also showcases its commitment to a cleaner, more sustainable future.

As the UK continues to invest in renewable energy and transition away from fossil fuels, it sets an important example for other nations, including those on China's path to carbon neutrality, grappling with similar challenges. By embracing this transition, the UK is not only addressing pressing environmental concerns but also paving the way for a greener economy that can thrive in the decades to come.

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