TODAY: Acwa Power secures USD 40 mn from OPEC Fund for wind farms
Good morning, wonderful people. We have a light and springy issue for you today with a couple of green tech reads to round things out.
THE BIG CLIMATE STORY- The OPEC Fund for International Development approved two separate loans worth USD 20 mn each to finance two of Saudi renewables company Acwa Power’s wind farms in Uzbekistan. We have the details on this story and more in the news well, below.
HAPPENING TODAY- A Cypriot delegation is arriving in Cairo today, and renewables are on the agenda: Cypriot President Nikos Christodoulides is arriving in Cairo today with his Energy and Commerce Minister George Papanastasiou to meet with Egyptian President Abdel Fattah El Sisi and a number of cabinet ministers, the Financial Mirror reports. Among the items on the agenda are energy projects, likely including renewables given Cyprus’ plan to import renewable energy from Egypt through the USD 4 bn, 2 GW EuroAfrica Interconnector and the 3 GW Greece-Egypt Interconnector (GREGY).
THE BIG CLIMATE STORY OUTSIDE THE REGION- The US will shell out USD 450 mn to deploy renewables projects at coal mines: The Biden administration issued guidance yesterday for clean energy developers looking to capitalize on the Inflation Reduction Act’s tax breaks and the incentives of the USD 1 tn 2021 infrastructure law to build renewables plants. The administration will make available USD 450 mn for renewables projects that will be located at current or decommissioned coal mining sites across the country, according to the statement. Up to five clean energy projects will be eligible to receive a portion of the financing package the White House has earmarked for the carbon-neutral energy projects, with at least two of the five projects set aside for solar plants. The new regulation seeks to spur investments in energy communities — especially coal communities — that have been hard-hit by prolonged declines. Interested developers will have until the end of August to submit applications for planned projects, with grant decisions set to be announced early on in 2024.
The story got some coverage in the press yesterday: Reuters | Associated Press | The Washington Post
WATCH THIS SPACE #1- The Saudis want in on Egypt’s clean energy projects: Three Saudi companies have reportedly submitted requests to invest up to USD 1.5 bn in Egypt’s renewables, green hydrogen, and ammonia sectors, Al Borsa reports, citing sources it says have knowledge of the plans. One of the three unnamed companies was in talks with the country’s Electricity Ministry for the development of a 500 MW onshore wind farm, for which the firm says it has secured initial approval for funding from an undisclosed European bank. The two remaining Saudi developers are each eyeing separate green fuel production plants in the country, and they both have agreements in place with global renewables firms for their proposed projects.
WATCH THIS SPACE #2- Egyptian carbon credit platform coming soon? Egypt’s International Cooperation Ministry is working closely with the EGX and the European Bank for Reconstruction and Development (EBRD) to launch the country’s much-anticipated carbon credit platform, Al Borsa quotes International Cooperation Minister Rania Al Mashat as saying. The launch of the platform is part of efforts to implement pledges made during COP27, Al Mashat said, without providing further details on the platform or an expected date of launch.
REMEMBER- We’re still awaiting the EGX’s launch of Africa’s first voluntary carbon market (VCM), which officials said will launch in mid-2023. As of late November, the EGX was close to finalizing contracts with a Canadian fintech to supply the technology for the carbon credit platform.
WATCH THIS SPACE #3- Xlinks’ Morocco-UK Power Project could be getting a boost from the region: Abu Dhabi National Energy Company (Taqa) is in advanced talks to pour investments into UK-based Xlinks’ ambitious Morocco-UK power project, Sky News reports. Taqa is in negotiations to acquire a “significant” stake in the GBP 18 bn project, which involves the construction of a 3.8k km undersea cable between Morocco and the UK. British renewables investor Octopus Energy is also reportedly financially backing the project. Once completed, the “first of a kind” project is expected to supply 8% of the UK's electricity needs.
“Without commitment,” the UK continues to mull the viability of the 10.5 GW project, according to the Powering Up Britain – Energy Security policy paper released last week. Progress on the project — which would see 3.6 GW of clean energy generated in Morocco transported to the UK — has been “frustratingly slow,” Xlinks Executive Chairman David Lewis said last year. Xlinks could decide to divert the power produced elsewhere if the UK does not commit to financing the scheme.
WORTH READING- Al Jaber a powerhouse for climate progress or a patron of the oil industry? While COP28 President-Designate Sultan Al Jaber alone cannot force a consensus among all countries at the UAE-hosted climate conference in November, his role gives him the power to set limits on what kind of progress is possible, and many are skeptical given his position as chief executive of Abu Dhabi National Oil Drilling (Adnoc), Bloomberg writes.
There’s a lot on the line: The continued expansion of Adnoc’s production capacity raises doubts that Al Jaber will push for goals that are crucial for avoiding large-scale climate disasters, including reaching a conclusion on a phase-out plan for oil and gas and pushing countries to fulfill their unmet promises of allocating USD 100 bn in annual climate funding to developing countries, the business information service says. Climate groups have been bringing up Adnoc’s track record of exaggerating its renewables operations and its failure to report its aggregate emissions. One watchdog group, Climate Action Tracker, has said that Adnoc’s plans are “highly insufficient.”
But some think Al Jaber’s background is a plus: US climate envoy John Kerry suggested that Al Jaber’s position, both as a businessman and a diplomat, will help solutions “move faster and at scale.” The president-designate agrees with critics that a solution to the climate crisis is urgently needed, and that initiatives need to be seen through instead of “gathering dust at a showy reception.” However, Al Jaber is yet to present a clear plan on how that will be achieved, Bloomberg notes.
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THE DANGER ZONE- Unchecked climate change could turn deadly for MENA: Annual heat-related deaths could soar in the MENA region by the end of the century if global warming is not reined in, according to research by the Lancet Planetary Health. The research suggests the region will see 123 deaths per 100k people by 2100 under a high-emissions scenario. This is over 60x the current rate for the region, which is at two deaths per 100k people. This current rate is low compared to other regions due to the young population and existing adaptation strategies to hot weather.
All eyes on…: Under a high emissions scenario, all or most of MENA is forecast to see substantial warming by the 2060s, with temperatures increasing the most in North Africa and the Arabian Peninsula, the research paper said. However, Iran, despite being in neither of these two areas, is expected to suffer the biggest hit in the region under the high-emissions scenario, seeing some 423 deaths per 100k of the population. Mortality rates will also be high in Palestine, Iraq, and Israel. However, the smaller Gulf countries (Qatar, Oman, and the UAE) will see the greatest percentage increases in heat related deaths. Egypt comes first in terms of highest absolute number of heat-related mortalities in the region, with a current annual rate of nearly 2.6k deaths.
But there could be a way out: The projected death rate by the end of the century could be slashed by more than 80% if warming is brought under control, the study said. “Global warming will need to be limited to 2C to avoid the catastrophic health impacts estimated in our study,” lead author of the paper Shakoor Hajat said, according to Bloomberg. “Even with stronger action, countries in the region need to develop ways other than air-conditioning to protect their citizens from the dangers of extreme heat,” Hajat said.
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CIRCLE YOUR CALENDAR-
The UAE is hosting the International Conference on Green Energy and Environmental Technology (ICGEET) on 18 and 19 April in Dubai. The event will bring together stakeholders from academia, the healthcare industry, and the private sector to discuss energy conservation among other topics.
Turkey is hosting the International 100% Renewable Energy Conference from 4-6 May in Istanbul. The event will bring together experts to discuss the integration of renewables, renewable energy technologies and applications, and the Roadmap to 2050.
The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.
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