ENERGY NEWS - TURKEY
Turkey’s Clean Energy Production Gets Nearly $570M Incentives in June

Turkey’s clean energy generation facilities received nearly TL 3.9 billion ($570 million) in incentive payments in June under the Renewable Energy Support Scheme (YEKDEM), according to Turkey's Energy Exchange Istanbul (EXIST) data.

A total of 817 facilities, with an installed capacity of 21,049 megawatts (MW), received financial backing in June under the YEKDEM scheme. They produced about 6.17 million megawatt-hours (MWh) of electricity.

Turkey, which wants to fully utilize local and renewable energy sources to efficiently support its development, offers feed-in tariffs for renewable energy plants, including wind, hydropower, geothermal, biomass and solar, through this scheme. Renewable energy plants under the scheme are granted incentives, the value of which is dependent on the type of renewable energy source in use.

The scheme, which was launched in 2011, supports wind and hydropower plants at $0.073 per kilowatt-hour (kWh), geothermal facilities at $0.105 kWh, and solar and biomass plants at $0.133 kWh. These figures can also vary slightly, depending on the use of locally produced equipment in the plants. Turkey plans to end this renewable incentive scheme by 2020 and is working on a more updated and efficient replacement. The country produced 66% of its electricity from local and renewable resources in the first five months of 2020, Energy and Natural Resources Minister Fatih Donmez recently said.

Last year, the country's electricity production from local and renewable resources stood at 62%. On May 24, it saw an all-time daily record as local and renewable resources accounted for 90% of the country's electricity generation. In just over a decade, Turkey has tripled its installed renewable capacity to around 45,000 MW and invested nearly $40 billion in renewable energy projects. Turkey ranks sixth in Europe and 13th in the world in terms of renewable capacity.

Source: Daily Sabah

Turkey Renews Daily Power Consumption Record on July 21

Turkey's daily electricity consumption hit a new record high with 934,482 megawatt-hours on Tuesday, according to official figures of Turkish Electricity Transmission Corporation (TEIAS) on Wednesday.

The country recorded the previous peak on July 7, when the daily electricity consumption reached 932,351 megawatt-hours. Daily electricity consumption on Tuesday also jumped 2.1% compared to Monday. Hourly power consumption peaked at 17.00 local time with 43,130 megawatt-hours, TEIAS data showed. The country's electricity usage dropped to its lowest level of 31,759 megawatt-hours at local time 07.00.

Electricity production totaled 932,976 megawatt-hours on Tuesday, beating the previous record of 927,648 megawatt-hours on July 7. It also marked a 2.2% increase on Tuesday compared to Monday.

The majority of the output came from natural gas plants at 236,426 megawatt-hours. Imported coal and hydroelectricity power plants followed with 202,585 megawatt-hours and 184,214 megawatt-hours, respectively.

While electricity production from natural gas plants constituted 25.3% of total electricity consumption in Turkey on Tuesday, imported coal plants had a share of 21.7% and hydroelectricity plants had a share of 19.7%. On Tuesday, Turkey's electricity exports amounted to 2,753 megawatt-hours, while imports reached 4,259 megawatt-hours.

Source: Anadolu Agency

ENERGY NEWS - WORLD
Production of Green Hydrogen Could Be Cost-Competitive by 2030

The production of green hydrogen could be cost-competitive by 2030, according to a new analysis by IHS Markit.

Green hydrogen is produced by “splitting” water—which can be carbon-free provided the electricity used in the process is produced by renewables. This process could become cost-competitive with currently predominant methods that require the use of natural gas as a feedstock.

The use of electrolysis, a process that uses electricity to split water into hydrogen and oxygen to produce green hydrogen is rapidly developing from pilot to commercial-scale operation in many parts of the world, according to IHS Markit. Investment in so-called “power-to-x” projects, of which hydrogen makes up the large majority, is growing rapidly from around $30 million in 2019 to more than $700 million in 2023.

Economies of scale are a primary driver for green hydrogen’s growing cost competitiveness. The average size for power-to-x projects scheduled for 2023 is 100 MW—ten times the capacity of the largest project in operation today.

Hydrogen production that uses natural gas as a feedstock, via a process known as methane reforming, currently supplies the hydrogen to the chemical and refining industries that today make up the bulk of global hydrogen demand.

Simon Blakey, IHS Markit senior advisor, Global Gas, said: “Costs for producing green hydrogen have fallen 50% since 2015 and could be reduced by an additional 30% by 2025 due to the benefits of increased scale and more standardized manufacturing.”

“Much focus is on economies of scale as a way of reducing costs, developing dedicated renewables in order to get the load factor on the electrolyze up and, of course, continued expectations of falling costs for renewables. Hydrogen’s overall share in the energy mix will ultimately depend on the extent of decarbonisation that is desired. In Europe, currently the primary market for hydrogen projects, hydrogen could account for as much as one third of the energy mix if the aim were 95% decarbonization or greater. Catherine Robinson, IHS Markit executive director, European Power, Hydrogen and Renewable Gas, said: “In Europe it is now widely agreed that electrification alone cannot deliver the level of emissions reduction that many countries aspire to.

“Hydrogen is a highly versatile fuel—both in terms of how it can be transported and the variety of its potential end-use applications. The greater the degree of decarbonisation, the greater the likely role of hydrogen in the energy future.” Shankari Srinivasan, IHS Markit vice president of global and renewable gas, adds: “There is growing potential for hydrogen to be used in transport, heating, industry and power generation.

“Both green hydrogen and so-called blue hydrogen—methane reforming coupled with carbon capture technology—are likely to play a role in the energy future as demand expands. “Blue and green hydrogen are extremely complementary. If they are developed in parallel, hydrogen will be able to make a big contribution to future energy demand, especially with the ambitious goals on carbon.”

Source: Smart Energy International

30 Innovative Solutions Show Path to Renewable-Powered Future

As of today, IRENA has published the full series of 30 Innovation Briefs under its Innovation Landscape report. It is the most comprehensive analysis available on innovation priorities that policymakers must address to successfully decarbonize the electricity systems with renewables and push for innovative renewables solutions in a COVID-19 recovery stimulus. With the new briefs on innovations in system operation and business models published, the full series of briefs analyzing innovations in the four dimensions of the power system (enabling technologies, business models, market design and system operation) is now completed.

Innovation is a key driver for the energy transformation. Innovative solutions can make the energy production, transmission and consumption more flexible, allowing for a higher, cost-effective use of renewables and empowering a new generation of energy consumers. Electrification, decentralization and digitalization are leading innovation trends that are changing paradigms, unlocking system flexibility for more renewables, changing roles and responsibilities and opening doors to new entrants in the sector.

The power sector has led the way with rapid cost reductions in key renewable energy technologies. Today, renewables accounts for one third of total global power generation, with a substantial growth in variable renewable energy (VRE) like wind and solar PV. However, achieving Paris Agreement climate objectives would require two thirds of global power demand based on renewables by 2050.

Globally, the share of electricity consumed in end-use sectors such as industry, transport and buildings would need to double from around a quarter today to almost 50% by mid-century. Wind and solar generation would need to increase from 10% today to 60% over the same period.  

Source: IRENA

Post Covid-19, Further Reform is Necessary to Accelerate China’s Clean Energy Future

The Covid-19 pandemic triggered an unprecedented economic shock with profound implications for energy systems around the world. In China, a sharp decline of both oil and electricity consumption followed by a dynamic recovery tested the flexibility of the energy system, but further actions will be needed to improve resilience and sustainability. This article examines opportunities for dedicated policy measures that could help reduce environmental impacts once energy use rebounds after the crisis. The continuing and systematic implementation of China’s reform process can help its economic recovery and also lead to a more secure, efficient and clean energy sector.

The economic impacts of the Covid-19 crisis have been different from those seen during a typical recession. Since virtually all economic activity requires energy, energy use normally declines, or grows more slowly, during a downturn, but is generally less volatile than the economy itself. In a recession, people still cook, heat their homes and use electrical appliances. The Covid-19 crisis was different. Starting in China, governments intentionally constrained people’s ability to move around in order to stop the spread of the virus. Since transport is energy intensive and plays a dominant role in global oil demand, the impact of this crisis on energy – especially on oil – was more pronounced than on the overall economy. The International Monetary Fund expects the global economy to contract by 4.8% in 2020, while IEA analysis estimates that total energy demand will decline by 6% and oil demand by almost 8% this year.

The lockdown measures imposed by governments around the world have tended to result in very sharp declines in energy use followed by dynamic recoveries as societies emerge from confinement, especially in China where the post-Covid recovery was fast both from a medical and economic point of view. The impact on different parts of the energy system has varied widely, depending on their role. In China and elsewhere, the crisis hit demand for jet fuel and gasoline hardest because of their role in transporting people.

During lockdowns, household electricity consumption in most countries, including in China, was actually higher than usual as people stayed at home and worked online. The big blow to demand came in the service sector as shopping malls, cinemas and hotels closed. In China, households represent 14% of electricity demand, and the service sector represents 16.4%. In both Europe and the United States, those two sectors each account for around one-third of electricity demand.

Electricity demand from the manufacturing sector in China also declined, especially during the most stringent measures to halt the spread of the coronavirus, but it remained resilient outside Hubei – the province where the outbreak of the virus was first detected. The recovery in demand from the manufacturing sector that began in April drove the overall increase in electricity consumption nationwide.

The global digital economy represents around 800 terawatt-hours of electricity consumption – almost as much as Japan’s total electricity demand. A substantial proportion of the digital economy is based in China, and this undoubtedly increased as a result of the virus. Overall, during the first quarter China’s electricity consumption declined by 6.5% on a year on year basis which made it comparable to the 2018 level. In contrast, in Europe and North America where due to the importance of the service sector demand decline was considerably higher, up to 20%, consumption was comparable to levels decades ago.

There are indications that while many economies around the world are recovering, they are unlikely to simply return to the way they were before the coronavirus. Manufacturing remains the backbone of the Chinese economy, but the role of the service sector is increasing. Hundreds of thousands of privately owned small and medium-sized enterprises provide consumer services. Chinese policy makers have clearly recognized the importance of maintaining the financial and economic viability of the service sector in the context of gradually recovering consumer demand.

Source: International Energy Agency

Renewables Overtake Fossil Fuels in EU Power Generation

Renewable sources have overtaken coal, oil and gas in EU electricity generation for the first time, new analysis shows. 

Wind, solar, hydro and bioenergy generated 40% of the 27 member states’ electricity in the first half of the year, beating fossil fuels which accounted for 34%, according to Ember, a climate think-tank focused on accelerating the global electricity transition.

As a result, carbon emissions from the bloc’s power sector fell by nearly a quarter in the first six months of 2020.

Dave Jones, a senior electricity analyst at Ember, said this marked a “symbolic moment” in the transition of Europe’s electricity sector – pointing out that nine years ago fossil fuels generated twice as much of the EU’s electricity as renewable sources.

While electricity demand in the EU fell by 7% due to COVID-19, generation from renewables rose by 11%, largely driven by new wind and solar installations which produced a record fifth of Europe’s electricity. In Denmark, 64% of electricity was generated from wind and solar. Meanwhile, fossil-fueled generation dropped by 18%. Coal bore the brunt of the fall, with generation declining in every country where it was part of the electricity mix.

It fell by 95% in Portugal, which saw extended periods completely coal-free, bringing forward the planned shutdown of coal-fired power plants by two years to 2021. In Spain, coal generation collapsed by 58% even before it closed half of its fleet at the end of June.  

Source: Euractiv

REPORT OF THE WEEK

The Role of CCUS in Low-Carbon Power Systems

Meeting climate and energy goals requires a fundamental and accelerated transformation of power systems globally.

Decision makers collectively must support a rapid shift to low-carbon generation while meeting strong growth in power demand, driven by increased energy access in developing economies and electrification of end-use sectors. Carbon capture, utilization and storage (or “CCUS”) technologies can play an important role in this transformation in three ways.

Please click here to read the full report.

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