Physicists Just Achieved Conduction of Electricity at Close to The Speed of Light


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Attosecond Electron Transport uses ultrafast lasers and single-cycle light pulses to drive tunneling in bowtie gold nanoantennas, enabling sub-femtosecond switching in optoelectronic nanostructures and surpassing picosecond silicon limits for next-gen computing.

 

Key Points

A light-driven method that manipulates electrons with ultrafast pulses to switch currents within attoseconds.

✅ Uses single-cycle light pulses to drive electron tunneling

✅ Achieves 600 attosecond current switching in nano-gaps

✅ Enables optoelectronic, plasmonic devices beyond silicon

 

When it comes to data transfer and computing, the faster we can shift electrons and conduct electricity the better – and scientists have just been able to transport electrons at sub-femtosecond speeds (less than one quadrillionth of a second) in an experimental setup.

The trick is manipulating the electrons with light waves that are specially crafted and produced by an ultrafast laser. It might be a long while before this sort of setup makes it into your laptop, but similar precision is seen in noninvasive interventions where targeted electrical stimulation can boost short-term memory for limited periods, and the fact they pulled it off promises a significant step forward in terms of what we can expect from our devices.

Right now, the fastest electronic components can be switched on or off in picoseconds (trillionths of a second), a pace that intersects with debates over 5G electricity use as systems scale, around 1,000 times slower than a femtosecond.

With their new method, the physicists were able to switch electric currents at around 600 attoseconds (one femtosecond is 1,000 attoseconds).

"This may well be the distant future of electronics," says physicist Alfred Leitenstorfer from the University of Konstanz in Germany. "Our experiments with single-cycle light pulses have taken us well into the attosecond range of electron transport."

Leitenstorfer and his colleagues were able to build a precise setup at the Centre for Applied Photonics in Konstanz. Their machinery included both the ability to carefully manipulate ultrashort light pulses, and to construct the necessary nanostructures, including graphene architectures, where appropriate.

The laser used by the team was able to push out one hundred million single-cycle light pulses every single second in order to generate a measurable current. Using nanoscale gold antennae in a bowtie shape (see the image above), the electric field of the pulse was concentrated down into a gap measuring just six nanometres wide (six thousand-millionths of a metre).

As a result of their specialist setup and the electron tunnelling and accelerating it produced, the researchers could switch electric currents at well under a femtosecond – less than half an oscillation period of the electric field of the light pulses.

Getting beyond the restrictions of conventional silicon semiconductor technology has proved a challenge for scientists, but using the insanely fast oscillations of light to help electrons pick up speed could provide new avenues for pushing the limits on electronics, as our power infrastructure is increasingly digitized and integrated with photonics.

And that's something that could be very advantageous in the next generation of computers: scientists are currently experimenting with the way that light and electronics could work together in all sorts of different ways, from noninvasive brain stimulation to novel sensors.

Eventually, Leitenstorfer and his team think that the limitations of today's computing systems could be overcome using plasmonic nanoparticles and optoelectronic devices, using the characteristics of light pulses to manipulate electrons at super-small scales, with related work even exploring electricity from snowfall under specific conditions.

"This is very basic research we are talking about here and may take decades to implement," says Leitenstorfer.

The next step is to experiment with a variety of different setups using the same principle. This approach might even offer insights into quantum computing, the researchers say, although there's a lot more work to get through yet - we can't wait to see what they'll achieve next.

 

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Why the promise of nuclear fusion is no longer a pipe dream

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.”

 

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Mexican president's contentious electricity overhaul defeated in Congress

Mexico Energy Reform Defeat underscores opposition unity as CFE-first rules, state regulators, and lithium nationalization falter amid USMCA concerns, investment risks, and clean energy transition impacts in Congress over power generation policy.

 

Key Points

The failed push to expand CFE control, flagged for USMCA risks, higher costs, regulator shifts, and slower clean energy transition.

✅ Bill to mandate 54% CFE generation and priority dispatch failed.

✅ Opposition cited USMCA breaches, higher prices, slower clean energy.

✅ Lithium nationalization to return via separate legislation.

 

Mexican President Andres Manuel Lopez Obrador's plan to increase state control of power generation was defeated in parliament on Sunday, as opposition parties united in the face of a bill they said would hurt investment and breach international obligations, concerns mirrored by rulings such as the Florida court on electricity monopolies that scrutinize market concentration.

His National Regeneration Movement (MORENA) and its allies fell nearly 60 votes short of the two-thirds majority needed in the 500-seat lower house of Congress, mustering just 275 votes after a raucous session that lasted more than 12 hours.

Seeking to roll back previous constitutional reforms that liberalized the electricity market, Lopez Obrador's proposed changes would have done away with a requirement that state-owned Comision Federal de Electricidad (CFE) sell the cheapest electricity first, a move reminiscent of debates when energy groups warned on pricing changes under federal proposals, allowing it to sell its own electricity ahead of other power companies.

Under the bill, the CFE would also have been set to generate a minimum of 54% of the country's total electricity, and energy regulation would have been shifted from independent bodies to state regulators, paralleling concerns raised when a Calgary retailer opposed a market overhaul over regulatory impacts.

The contentious proposals faced much criticism from business groups and the United States, Mexico's top trade partner as well as other allies who argued it would violate the regional trade deal, the United States-Mexico-Canada Agreement (USMCA), even as the USA looks to Canada for green power to deepen cross-border energy ties.

Lopez Obrador had argued the bill would have protected consumers and made the country more energy independent, echoing how Texas weighs market reforms to avoid blackouts to bolster reliability, saying the legislation was vital to his plans to "transform" Mexico.

Although the odds were against his party, he came into the vote seeking to leverage his victory in last weekend's referendum on his leadership.

Speaking ahead of the vote, Jorge Alvarez Maynez, a lawmaker from the opposition Citizens' Movement party, said the proposals, if enacted, would damage Mexico, pointing to experiences like the Texas electricity market bailout after a severe winter storm as cautionary examples.

"There isn't a specialist, academic, environmentalist or activist with a smidgen of doubt - this bill would increase electricity prices, slow the transition to (clean) energy in our country and violate international agreements," he added.

Supporters of clean-energy goals noted that subnational shifts, such as the New Mexico 100% clean electricity bill can illustrate alternative pathways to reform.

The bill also contained a provision to nationalize lithium resources.

Lopez Obrador said this week that if the bill was defeated, he would send another bill to Congress on Monday aiming to have at least the lithium portion of the proposed legislation passed.

 

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TCS Partners with Schneider Electric Marathon de Paris to Boost AI and Technology

TCS AI Partnership Paris Marathon integrates predictive analytics, digital twin simulations, real-time runner tracking, and sustainability solutions to elevate logistics, athlete performance, and immersive spectator engagement across the Schneider Electric Marathon de Paris ecosystem.

 

Key Points

AI-driven TCS partnership enhancing Paris logistics, performance, engagement, and sustainability for three years.

✅ Predictive analytics and digital twins optimize race-day ops

✅ Real-time runner tracking and health insights

✅ Sustainable resource management and waste reduction

 

Tata Consultancy Services (TCS) has officially become the AI & Technology Partner for the Schneider Electric Marathon de Paris, marking the start of a three-year collaboration with one of the world’s most prestigious running events. This partnership, announced on April 1, 2025, aims to revolutionize the marathon experience by integrating cutting-edge technology, artificial intelligence (AI), and data analytics, and modern AI data centers to power scalable capabilities, enhancing both the runner's journey and the spectator experience.

The Schneider Electric Marathon de Paris, which attracts over 55,000 runners from across the globe, is a renowned event that not only challenges athletes but also captivates a worldwide audience. As the Official AI & Technology Partner, TCS is set to bring its deep expertise in AI, digital innovation, and data-driven insights to this iconic event, drawing on adjacent domains such as substation automation training to strengthen operations. With more than 30 years of presence in France and its significant partnerships with French corporations, TCS is uniquely positioned to merge its global technology capabilities with local knowledge, thus adding immense value to this prestigious marathon.

The collaboration will primarily focus on enhancing the race logistics, improving athlete performance, and creating a personalized experience for both runners and spectators. Using advanced AI tools, predictive analytics, and digital twin technologies, TCS will streamline various aspects of the event. For example, AI-powered predictive models, reflecting progress recognized by European electricity prediction specialists in forecasting, will be used to track and monitor runners in real-time, providing insights into their performance and well-being during the race. Additionally, the implementation of digital twin technology will enable TCS to create accurate virtual models of the event, improving logistics and supporting better decision-making.

One of the key goals of the partnership is to improve the sustainability of the marathon. By utilizing advanced AI solutions, including AI for energy savings approaches, TCS will help optimize race-day operations, ensuring efficient management of resources, reducing waste, and minimizing environmental impact. This aligns with the growing trend of incorporating sustainability into large-scale events, ensuring that such iconic marathons not only provide an exceptional experience for participants but also contribute to global environmental goals.

TCS’s PacePort™ innovation hub in Paris will play a pivotal role in the collaboration. This innovation center will serve as the testing ground for new AI-powered solutions and tools aimed at improving runner performance and creating a more engaging race experience. Early priorities for the project include the development of personalized AI-based training programs for runners, real-time tracking systems for athlete health monitoring, and advanced analytics to support better training and recovery strategies, drawing on insights from EU smart meter analytics to inform personalization.

Additionally, TCS will introduce new technologies to enhance spectator engagement. Digital experiences, such as virtual race tracking and immersive content, will bring spectators closer to the event, even if they are not physically present at the marathon. This will allow fans worldwide to engage with the race in more interactive ways, enhancing the global reach and excitement surrounding the event.

TCS’s role in the Schneider Electric Marathon de Paris is part of its broader strategy to leverage technology in the realm of sports. The company already supports several major global marathons, including those in New York, London, where projects like the London electricity tunnel showcase infrastructure innovation, and Mumbai, contributing to their operational success and social impact. In fact, marathons supported by TCS raised nearly $280 million for charitable causes in 2024 alone, demonstrating the company’s commitment to blending innovation with social responsibility.

The strategic partnership with the Paris marathon also underscores TCS’s continued commitment to its French operations, and aligns with Schneider Electric’s Notre Dame restoration initiatives that highlight local impact, reinforcing its role as a leader in AI and digital technology. Through this collaboration, TCS aims to not only support the marathon’s logistical and technological needs but also to contribute to the broader development of digital sports experiences.

This partnership promises to deliver a more dynamic, sustainable, and engaging marathon experience, benefiting runners, spectators, and the broader event ecosystem. With TCS’s cutting-edge technology and commitment to enhancing the marathon, the Schneider Electric Marathon de Paris is poised to set new standards for global sports events, blending athletic performance with digital innovation in unprecedented ways.

 

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France’s first offshore wind turbine produces electricity

Floatgen Floating Offshore Wind Turbine exports first kWh to France's grid from SEM-REV off Le Croisic, showcasing Ideol's concrete floating foundation by Bouygues and advancing marine renewable energy leadership ambitions.

 

Key Points

A grid-connected demo turbine off Le Croisic, proving Ideol's floating foundation at SEM-REV.

✅ First power exported to French grid from SEM-REV site

✅ Ideol concrete floating base built by Bouygues

✅ Demonstrator can supply up to 5,000 inhabitants

 

Floating offshore wind turbine Floatgen, the first offshore wind turbine installed off the French coast, exported its first KWh to the electricity grid, echoing the offshore wind power milestone experienced by U.S. customers recently.

The connection of the electricity export cable, similar in ambition to the UK's 2 GW substation program, and a final series of tests carried out in recent days enabled the Floatgen wind turbine, which is installed 22 km off Le Croisic (Loire-Atlantique), to become fully operational on Tuesday 18 September.

This announcement is a highly symbolic step for the partners involved in this project. This wind turbine is the first operational unit of the floating foundation concept patented by Ideol and built in concrete by Bouygues Travaux Publics. A second unit of the Ideol foundation will soon be operational off Japan. For Centrale Nantes, this is the first production tool and the first injection of electricity into its export cable at its SEM-REV test site dedicated to marine renewable energies, alongside projects such as the Scotland-England subsea power link that expand transmission capacity (third installation after tests on acoustic sensors and cable weights).

This announcement is also symbolic for France since Floatgen lays the foundation for an industrial offshore wind energy sector and represents a unique opportunity to become the global leader in floating wind, as major clean energy corridors like the Canadian hydropower line to New York illustrate growing demand.

With its connection to the grid, SEM-REV will enable the wind turbine to supply electricity to 5000 inhabitants, and similar integrated microgrid initiatives show how local reliability can be enhanced.

 

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"Kill the viability": big batteries to lose out from electricity grid rule change

AEMC Storage Charging Rules spark industry backlash as Tesla, Snowy Hydro, and investors warn transmission charges on batteries and pumped hydro could deter grid-scale storage, distort the National Electricity Market, and slow decarbonisation.

 

Key Points

AEMC Storage Charging Rules are proposals to bill grid storage for network use, shaping costs and investment.

✅ Charges apply when batteries draw power; double-charging concerns.

✅ Tesla and Snowy Hydro warn of reduced viability and delays.

✅ AEMO recommends exemptions; investors seek certainty.

 

Tesla, Snowy Hydro and other big suppliers of storage capacity on Australia’s main electricity grid warn proposed rule changes amount to a tax on their operations that will deter investors and slow the decarbonisation of the industry.

The Australian Energy Market Commission (AEMC) will release its final decision this Thursday on new rules for integrating batteries, pumped hydro and other forms of storage.

The AEMC’s draft decision, released in July, angered many firms because it proposed charging storage providers for drawing power, ignoring a recommendation by the Australian Electricity Market Operator (AEMO) that they be exempt.

Battery maker Tesla, which has supplied some of the largest storage to the National Electricity Market, said in a submission that the charges would “kill the commercial viability of all grid storage projects, causing inefficient investment in alternative network”, with consumers paying higher costs.

Snowy Hydro, which is building the giant Snowy 2 pumped storage project and already operates a smaller one, said in its submission the proposed changes if implemented would jeopardise investment.

“This is a major policy change, amounting to a tax on infrastructure critical to achieving a renewable future,” Snowy Hydro said.

AEMO itself argued it was important storage providers were not “disincentivised from connecting to the transmission network, as they generally provide a net benefit to the power system by charging at periods of low demand”.

Australia’s electricity grid faces economic and engineering challenges, similar to Ontario's storage push as it adjusts to the arrival of lower cost and also lower carbon alternatives to fossil fuels.

While rule changes are necessary to account for operators that can both draw from and supply power, how they are implemented can have long-lasting effects on the technologies that get encouraged or repelled, including control of EV charging issues, independent experts say.

“It doesn’t have to be this way,” said Bruce Mountain, director of the Victoria Energy Policy Centre. “In Britain, where the UK grid transformation is underway, the regulator dealing with the same issues has said that storage devices don’t pay the system charges when they withdraw electricity from the grid,” he said.

The prospect that storage operators will have to pay transmission charges could “drastically” affect their profitability since their business models rely on the difference between the price their pay for power and how much they can sell it for. Gas generators and network monopolies would benefit from the change, Mountain said.

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An AEMC spokesperson said the commission had consulted widely, including from those who objected to the payment for transmission access.

“The market is moving towards a future that will be increasingly reliant on energy storage to firm up the growing volume of renewable energy and deliver on the increasing need for critical system security services, with examples such as EVs supporting grid stability in California as the ageing fleet of thermal generators retire,” the spokesperson said, declining to elaborate on the final ruling before it is published.

“The regulatory framework needs to facilitate this transition as the energy sector continues to decarbonise,” the official said.

AusNet, which operates the Victorian energy transmission grid, said that while “technological neutrality is paramount for battery and hybrid unit connections to both the distribution and transmission networks,” it did not back charging storage access to networks in all cases.

“[Ausnet] supports a clear exemptions framework for energy storage providers,” a spokesperson said. “We recommend that batteries and other hybrid facilities should have transmission use of system charges waived if they provide a net benefit to network customers.”

We are not aware of anyone that supports the charging storage access to networks in all circumstances.

“Batteries and hybrid facilities that consume energy from the network should be provided no preferential treatment relative to other customers and generators.”

Jonathan Upson, a principal at Strategic Renewable Consulting, though, said the AEMC wants electricity flowing through batteries to be taxed twice to pay network charges – once when the electricity charges the battery and then again when the same electricity is sent out by the battery an hour or two later but this time with customers paying.

“The AEMC’s draft decision has the identical rationale for eliminating franking credits on all dividends, resulting in double taxing of company profits,” he said.

Christiaan Zuur, director of energy transformation at the Clean Energy Council, said that while much of AEMC’s draft proposal was constructive, “those benefits are either nullified or maybe even outweighed” by uncertainty over charges.

“Risk perception” will be important since potential newcomers won’t be sure of what charges they will pay to connect to the grid and existing operators could have their connection agreements reopened, Zuur said.

“Investors focus on the potential risk. It does factor through to the integral costs for projects,” he said.

The outcome of new charges may prompt more people to put batteries on their premises and draw power from their own solar panels, Mountain said, with rising EV adoption introducing new grid challenges, cutting their reliance on a centralised network.

“Ironically, it encourages customers to depend less and less on the grid,” he said. “It’s almost like the capture of the dominant interests playing out over time at their own expense.”

Separately, the latest edition of the Clean Energy Council Confidence Index shows leadership by state governments is helping to shore up investor appetite for investing in renewable energy amid 2021 electricity lessons even with higher 2030 emissions reduction goals from the federal government.

Overall, investor confidence increased by a point in the last six months – from 6.3 to 7.3 out of 10 – following strong commitments and policy development from state governments, particularly on the east coast, the council said.

“The results of this latest survey illustrate the economic value in policy that lowers the emissions footprint of our electricity generation, supporting regional centres and creating jobs. Investors recognise the opportunities created by limiting global temperature rise to 1.5 degrees,” said council chief executive Kane Thornton.

Among the states, NSW, Victoria and Queensland led in terms of positive investor sentiment.

Correction: this article was amended on 30 November. An earlier version stated Ausnet supported charging storage for network access. A spokesperson said it backed a waiver on charges if certain conditions are met.        

 

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IEA warns fall in global energy investment may lead to shortages

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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