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Energy

Energy Sector Recuperates from Coronavirus Effects

Given the economic turmoil attributable to the global pandemic, the first quarter of 2020 experienced an impressive corporate increase in the construction of renewable energy projects. Yet before the epidemic, several organizations signed partnerships for a potential of at least 1.6 GW, more than in the first or fourth quarter of 2019.

An analysis of the contract arrangements, relevant suppliers, and energy provision services further reveals that the sustainable industry procurement model has also grown, allowing further businesses with a larger scale to participate in dealings. 

Yet experts expect that after the first quarter of 2020, we should see a “natural” run of sustainable client supplies in a while.

While the previous scene before the beginning of 2020 is impossible to recall, the current situation is likely bound to continue. The changes in the electricity generation landscape have changed over the last month due to the pandemic. The industry is currently in a state of suspension in sustainable production while everyone continues waiting how matters turn out 

Throughout the short run, new enterprise green investments will be slow down due to the COVID 19 issue. This outcome seems impossible to figure out whether a company is going to rebound such long-term projects, and too little security between investors and companies is hard to infer.

Some renewable generating prospects can potentially become less appealing financially. Deficiencies in the production, transportation restrictions, and more stringent funding structures for projects have the potential to raise the price of power purchase agreements (PPAs). A LevelTen poll suggests that 56 percent of energy producers anticipate that the COVID-19 will impact PPA rates. PPA experts can also see profits in the brief term, with the wholesaling costs of energy being too small. Moreover,  this move will potentially make it more challenging for businesses to promote programs.

 Although the Sustainable Energy Tracker from GreenBiz emphasizes on instances when contracts have been accepted and not when finished. It should come into account that all the developed facilities on renewable energy are pending. Construction remains incomplete owing to the measures set to flatten the COVID-19 curve. Delays in supply chains indicate that companies do not have the equipment they require.

The COVID-19 stagnation, however, is expected to pose a long-term threat to the global corporate pathway towards renewable procurement. Sustainable energy production is increasing traction as it makes practical sense – this does not shift with market changes or recession.

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Energy

Rise in the sale of EVs despite Corona Pandemic

The vehicle industries have experienced significant changes that have revolutionized the industry. Likewise, the changes range from manufacturing modern cars based on luxury and comfort to fuel conservative vehicles on a standard level. Since the world is shifting from fossil fuel to clean energy, the industry was compelled to adapt to the demands of the consumer that seeks to preserve the environment by using clean energy. Therefore, the automotive sector manufactured electric cars that run on electricity stored in batteries. Several car companies in the past decade have produced Electric Vehicles (EV) that have proved to be beneficial to the economy and environmental conservation. 

However, the globe has encountered yet another challenge from the COVID-19 pandemic that has orchestrated the collapse of the global economy. For example, several countries have been placed under lockdown to minimize the spread of the virus to different places. The countries affected include China, Italy, the US, Japan, Korea, and African countries like South Africa. Thus, many states have shut down their activities and industries, making the world economic crash.

Additionally, China, as an outsourcing country for diverse states, has experienced the highest cases of coronavirus, and most of its companies underwent closure to reduce its spread. Therefore, the nations’ outsourcing services from China have experienced a slower production rate hence lower sales. Consequently, COVID-19 has disrupted the supply  of electric vehicle’s raw materials like graphite, praseodymium, lithium, and nickel.

Despite global economic crush, EV sales have surprisingly rose during the pandemic. For example, according to statistical analysis, the EV sales globally had increased by 16 percent in February this year compared to February last year. Furthermore, China is the most affected country, has tabulated a 65 percent increase in EV sales. Resultantly, Europe has recorded the highest growth in sales of 111 percent in February.

As stated above, China serves as an outsourcing company for several companies. Likewise, 50 percent of the supply of EV originates from China. However, the country’s lockdown has seen many of EV manufacturing companies close down. Researchers predict that the lockdown is likely to affect the sales in March and April. Also, some other car manufacturing companies like Tesla and Volkswagen have shut down their factories to minimize the spread of coronavirus.

On the brighter side, the cases of coronavirus in China have begun to decrease, and hopefully, many companies will soon continue with production. Likewise, other companies still operate but isolating its employees as the work is in progress.  

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Energy

Sweden plunges deep into renewables as OX2 states to establish the third-largest wind company

Wind energy is an essential source of renewable energy since it contributes to environmental preservation by minimizing carbon emission that will otherwise contribute to global warming. Therefore, wind energy decreases greenhouse gas production and reduces water pollution encountered in fossil fuel production. Additionally, wind power is cost-effective, sustainable, and creates additional job opportunities in the energy sector. Furthermore, wind turbines establishment is on existing ranches contrary to fossil fuel, which requires oil sittings before commencing the work. Wind energy as a source of renewable power sources is beneficial and relevant to a country’s economy. 

OX2, a Swedish renewable company, is set to establish the third-largest wind power company that will produce approximately 132 MW. Based on an agreement signed by Lundin petroleum, which is currently striving to shift to a renewable source of power, OX2 will initiate its project sitings in Metsalamminkangas. The area is well known for its encouraging wind conditions hence an entire region to establish a wind firm. Additionally, the site comprises of 245.5 MW turbines that were constructed by GE Renewable Energy. Alex Schneiter, the managing director of Lundin, states that the merger will yield more renewable energy in the country, therefore, minimizing carbon emission.

Alex further notes that the project will facilitate the company’s shift from fossil fuel since the company operations relied on fossil fuel. Lundin is composed of other satellite branches in Norway that produce oil and other gas manufacture firms. Therefore, partnering with OX2 provides an alternative for the company to invest in renewables hence participate in national environmental protection. 

Additionally, OX2 has defined Finland as a growing market for wind energy and other renewable sources of power. Thus the company will establish its base and major in wind power in Finland. Resultantly, the OX2 has developed 1.2GW of wind power, and about 340MW is sited in Finland; hence the company has undertaken various procedures to fully utilize Finland’s potential.

According to Thomas Vogt, the CEO of Fontavis, OX2 has completed the construction of a new wind plant in Sweden. Fontavis has aided OX2 in establishing competence and innovation in contracts and deals. Consequently, Paul Stormoen, the Chief Executive of OX2, stated that the company is pleased by the different partnerships with different organizations, and indeed wind energy offers a lucrative investment in the market. He further noted that OX2 is proud to assist in the management of Fontavis wind farm and guarantee safe dealings and ultimately provide the most significant investment return. 

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Energy

Could water be a solution to problems of renewable energy storage?

According to previously issued research in Nature Communications journal, recurrently used technology known as Seasonally Pumped Hydropower Storage (SPHS) could be a solution to enable the storage of water on a yearly measurement since it is cheap and readily available. According to the research, there is an excellent ability for SPHS to distribute highly competent energy prices as opposed to natural gas.

Several countries’ energy departments are adjusting swiftly to the wind and solar energy productions. Those energy sources require storage replacements since they have discontinuous and seasonal differences. It will aid them in having in mind that there is the attainment of demand at a given period. 

Periodic harnessed hydroelectric power storage refers to thrusting water into an underground room connected parallel to Main River when there are high and frequent rains. When there are scarcity and increased demands of water, they will release stored water from the reservoir and help in generating electricity.

The above recent research is the first one to give comprehensive solutions to the cost of SPHS technology. In their findings, researchers assessed the presence of abilities to store water with SPHS periodically. They had in mind all regions that will have the highest and lowest number of costs. They analyzed diverse occasions where water and electricity with SPHS could exist in an alternative form. Factors listed in their researches constitute scenery, the connection of rivers, hydrological analysis, expenses on the infrastructure, scheme designs, and available candidate areas.

Results from their researches show that there is a significant ability that is available around the SPHS, especially the lower region of Himalayas, Andes, Alps, Rocky Mountains, Ethiopian Highlands, and Brazilian Highlands among many other areas.

There is an endorsement concerning the intermittency and period ability of wind and solar. The research illustrates that there are extremely high chances of nations embracing SPHS across the globe provided there are accessible, affordable, and sustainable energy structures that will lead them to surpass the actual obstacles in gaining high shares of the renewable era.   

Another aspect addressed in the research is environmental conservation related to hydropower since basins of SPHS are deep and made adjacent to each other instead of constructing them in the middle of rivers. The impacts posed to the environment could total to 10%, which is a smaller figure of influence as opposed to fossil fuel plants. 

Since there is a high urge to transform the world to fewer carbon dioxide productions, renewable energies and storage have to do their part in the coming days since SPHS can store energy and water on an annual basis.

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Energy

Will India achieve its big renewable power targets?

The demand for electricity in India is on the notable rise, and the administration anticipates boosting renewable the production of electric power as a way of attaining its surging applications. However, this remains a considerable obstacle for them. 

Indian Prime Minister Narendra Modi made his speech during the closed vin New York, stating that there is a need for ‘international people’s movement.’ The movement will help bring a change in how they do their things, which will, in turn, help in handling changes occurring in the climate. He said that India pledges to over double its non-fossil fuel electric power to 450 gigawatts (GW).

Right after China and the United States is India as the third state that emits greenhouse gases. To help eliminate the productions, officials from India stated that they anticipate increasing funds of renewable energy in the energy mix of the nation.

Presently, there is 22% of installed renewable energy grids of approximately 357GW. The administration of India plans to additional 175GW o-f renewable energy invested power in the coming two years and increase it to over 500GW in the coming decade.

Indian’s anticipations are the most ambitious target of the renewable energy sector globally, positioning it ahead of other developed states. The goals are complicated and hard to achieve, even for a common developing country. However, those goals require extensive revision in conveyance and transmission areas as well as competitive strategies to attain. 

Indian officials said that they require $330 billion (295 billion Euros) funds in the coming ten years to enable them to achieve electric power goals.

The approximated funds are a depiction of a magnitude of financial problems that encompass one of the most renowned global markets in the reusable energy sector. According to data analysts, the state indicated a stunted and downward growth in non-governmental and capital funds last year.

According to professionals, it will be very challenging for India to attain its anticipated goals as it observed from its slowed wind power production and dip in solar projects in the previous years.

Attaining 450GW of electric power may result in notable grid balance problems in the absence of enough funds. It was an opinion shared by Sunjoy Joshi, who is the chairman of the New Delhi-situated Observer Research Foundation. He added that the structures require to developed more to meet the scaling requirements.

A previous statement indicated that India would fail to attain its anticipated goals of 175GW in 2022.  Criticism dismissal, Ministry of New and Renewable Energy said that the country would achieve not only its objectives but also surpass them.