Related Articles

• 
  Decarbonising the global energy grid

  3 May 2024

  As the effort to tackle the climate crisis continues, global demand for renewable energy has been increasing. Unfortunately, the windiest and sunniest parts of the world are not necessarily where the need for energy is highest. This is where transmission plays a big role, linking energy generation to energy use as a product of global interconnection, and diversifying production from renewable sources to create a steadier supply of clean power. 

  Transporting energy across vast distances is not easy though. From the regulatory complexities of navigating cross-border infrastructure projects to the high costs of financing and the need for long-term planning and advanced technical capabilities, the challenges involved in successfully deploying long-distance transmission projects are varied. Overcoming these challenges is not a single party affair, but requires close collaboration across government, industry and non-governmental organisations. 

  We conducted a study with nearly 600 industry experts from across the world who highlighted the pressing need for co-ordinated global action to rapidly develop grid infrastructure. Integrating renewable energy into existing grids was cited by participants as one of the most significant barriers to achieving net-zero objectives, alongside supply chain vulnerabilities and ability to access the required capital.

  Multiple challenges

  From a technical standpoint, there are multiple considerations when implementing cross-border interconnections. Regions can operate using different technical parameters, such as different voltages or frequencies. Even within the same country, interregional variations can create bottlenecks. Adopting regional or international grid codes could mitigate these issues.

  Further challenges emerge when we take trading into account. This is where regulation can act as an enabler, facilitating the flow of electricity between countries. The European Union’s efforts to co-ordinate the design of its member state’s energy markets enables an increasingly smooth transmission of energy across the continent. Alongside this, existing infrastructure is outdated, requiring significant upfront investment to upgrade. Clarity on regulatory requirements and more transparency around plans for grid buildout, derisk funding for capital-intensive mega projects.

  Coordinated action is vital for the transfer of energy across borders and access to renewable sources of energy

  Positive benefits

  Despite these challenges, the upside must be stressed. Integrating power systems across borders has many positive societal benefits, decreasing costs and hence energy bills through economies of scale, increasing energy security and lowering the environmental impact of operations. On the latter more specifically, larger power systems are able to integrate higher shares of variable renewables. Globally, the sun is always shining and the wind blowing somewhere. 

  A common element, therefore, emerges: the need for increased cross-border co‑ordination. Whether it is bilateral, multi-lateral or unified, different models of inter-jurisdictional arrangements are needed for large-scale projects to support global energy interconnections. Our Xlinks project, which is using high-voltage direct current (HVDC) for transmission, is a standout example. 

  Such projects represent what is needed more in the world, the combination of infrastructure and renewable power across borders, bringing together the public and private sectors for energy security, supply and affordability in an environmentally friendly way. Transporting clean energy using HDVC cables is a crucial step in powering a net-zero and equitable future, and more of this is needed to aid the transition to lower-carbon and prosperous economies. 

  Political, technical and market hurdles can be overcome through collaboration and partnerships. Leveraging the collective expertise and resources of governments, regulators and the private sector can help ensure interconnections are developed quickly enough to support the energy transition. Grid buildout takes time. We have the resources required to meet ambitions, but stopping now is not viable. We must continue planning, building and maintaining large-scale infrastructure projects to meet the rising demand.

  Coordinated action is vital for the transfer of energy across borders and access to renewable sources of energy. This was the message from Cop28 and the UAE Consensus: to help progress and secure a cleaner, brighter future for us all, we must break down barriers and come together. 

   

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• 
  GE Vernova invests in Xlinks

  2 May 2024

  US-headquartered GE Vernova has invested $10.2m in Xlinks First, the investment company established by UK-based startup Xlinks to deliver the $18bn Morocco-UK power project.

  This investment equates to a minority shareholding in the company, which is developing a project comprising wind and solar generation as well as battery storage, with a total combined capacity of 3,600MW, to be transmitted from Morocco to the UK.

  Xlinks said the investment will “further accelerate delivery and buildout of the project”.

  GE Vernova joins at least four other investors in the project.

  Other investors include Africa Finance Corporation, which invested $14.1m in April; Abu Dhabi National Energy Company (Taqa), $30.7m; the UK’s Octopus Energy, $6.23m; and France’s Total Energies, $25.4m.

  The planned electricity generation and battery storage facilities, located in south Morocco, will be connected exclusively to the UK via 4,000-kilometre high-voltage, direct current (HVDC) cables.

  In December last year, Xlinks signed a contract with Canada-headquartered WSP to provide technical advisory services for the project.

  WSP will support Xlinks with route optimisation, power systems and interface management for the plan to construct the project.

  The Morocco-UK power project entails building 10,500MW solar and wind farms in Morocco’s Guelmim-Oued Noun region and sending 3,600MW a day of energy exclusively to the UK via four 3,800-kilometre HVDC cables.

  The HVDC network is envisaged to run from the UK’s south coast, passing France, Spain and Portugal undersea and then onshore to a planned solar and wind energy project in Morocco.

  This renewable energy-sourced electricity amounts to nearly 8% of the UK’s current requirements, equivalent to powering 7 million homes by 2030.

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  Jennifer Aguinaldo
• 
  Awards buoy Oman’s green hydrogen strategy

  2 May 2024

  Commentary
  Jennifer Aguinaldo
  Energy & technology editor

  Oman has awarded two additional land blocks designed to develop green hydrogen projects.

  The latest land block concessions in Dhofar were awarded to two consortiums. One comprises a team of France's EDF Group and EDF Renewables, with partners Japanese Electric Power Development Company (J-Power) and the UK-headquartered Yamna Company.

  Another team comprises UK investment firm Actis and Australian metals firm Fortescue.

  This brings the total number of land blocks awarded through the public auction process spearheaded by Hydrogen Oman (Hydrom) to four, exclusive of the four legacy initiatives signed or agreed upon already.

  *Budgets are MEED estimates if not publicly disclosed. Sources: MEED, Hydrom

  A limited gas supply and network strongly incentivises Oman to build a green hydrogen-centric downstream sector that will provide feedstock to domestic industrial plants and generate derivatives for the local and export markets.

  Stakeholders have implemented a strategy, including setting up an infrastructure company catering to these projects. The target is to generate 1 to 1.5 million tonnes a year (t/y) of green hydrogen by 2030 and 7.5 to 8.5 million t/y by 2050.

  The blueprint envisages a complete green hydrogen ecosystem, from the production of renewable energy and its distribution to electrolysis plants and hydrogen derivatives conversion plants to storage and export terminals.

  Omani ports' existing relationships with European stakeholders and growing alliances with other countries could also help seal future offtake agreements for the planned facilities.

  As things stand, the consortiums that won the land auctions and the legacy initiative partners provide much gravitas to Oman's green hydrogen programme. They comprise energy old guards such as BP and Shell that are keen to decarbonise, private companies aiming to balance their investment portfolios with clean energy investments, and offtakers or trading companies that are grappling with net-zero targets.

  Yet the most obvious question remains. Given the eye-popping foreign direct investments these complex projects entail, not all are likely to achieve a final investment decision within three years. This seems to be the window required for the projects to start production before 2030.

  But like any emerging industry, the risks can only be properly assessed and mitigated as the first projects move toward the execution phase.

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  Jennifer Aguinaldo
• 
  Operationalise loss and damage fund says Al Jaber

  2 May 2024

  Steps must be taken to ensure a fully functioning Loss and Damage Fund, following an agreement at Cop28 to operationalise the fund, according to Cop28 President Sultan Al Jaber.

  “While delivering an agreement to operationalise the Fund at Cop28 was a huge breakthrough for climate progress more needs to be done,” Al Jaber said during the first board meeting of the fund on 30 April.

  The Loss and Damage Fund, which was first proposed in the 1990s, aims to help developing countries cope with the impact of extreme global warming events such as droughts and floods.

  Al Jaber cited the need to build a fully functioning fund, which will be endorsed at Cop29 in Baku, which will be “disbursing funds soon after and a Fund that delivers lasting, positive, socio-economic impact for decades to come."

  "While it took over three decades to establish this Fund, climate change has not stood still. Every region of the world is now vulnerable…the impacts of climate change are a clear and present danger to lives and livelihoods everywhere."

  Al Jaber’s message resonates closer home given the recent storms hitting the UAE, which brought some emirates to a standstill in mid-April.

  Heavy rainfall inundated Dubai and the Northern Emirates on 16 April, causing flooding and significant property and infrastructure damages.

  A total of $792m has been pledged for loss and damage funding arrangements – of which $662m has been pledged to the Fund to date – including a $100m contribution each from the UAE and Germany and $75m from the UK.   

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  Jennifer Aguinaldo
• 
  Norwegian firm to develop Oman wave energy project

  2 May 2024

  Oman's shipping and logistics firm Asyad Group has signed an agreement with Norwegian wave energy company Havkraft to explore the development of wave energy.

  It is the first project of its kind in the sultanate and across the region.

  Havkraft is known globally for pioneering technologies that enable the production of renewable electricity from wave energy.

  According to Havkraft Middle East adviser Matt Minshall, wave power has the potential to be the “most eco-friendly and cost-effective route to net zero”.

  Oceans cover 78% of the earth’s and waves have the potential for energy with the reliability of a constantly charged battery, and have remained untouched, according to Minshall.

  The Norwegian startup reached a breakthrough in 2013 when it successfully developed the Havkraft Wave Energy Converter (H-Wec), which is suited for "all types of wave climates globally."

  Since then, the company has launched several solutions, including the deployment of a floating power-plant powered entirely by wave energy.

  Havkraft envisages a supersystem – a combination of solar, wind and wave power – to achieve a more resilient and sustainable energy mix while reducing dependence on expensive storage.

  Photo: Asyad

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  Jennifer Aguinaldo