Francisco Boshell

Low-carbon transition is rewiring energy systems – and portfolios Summary: The transition towards low-carbon energy sources, predominantly solar and wind, is projected to dominate 70% of the global energy mix by 2050, prompting an annual capital investment average of US$4 trillion. Investors are encouraged to adopt a comprehensive portfolio approach to capitalize on opportunities across both public and private sectors. Key "mega forces" shaping long-term investment strategies include demographic changes, digital advancement, geopolitical shifts, evolving financial architectures, and the low-carbon transition. The latter is a complex array of shifts in energy, materials, food, and land use, expected to progress at varying speeds across different regions and sectors. Private markets are highlighted as crucial for providing targeted exposure and meeting diverse investment goals such as income generation, capital appreciation, and risk mitigation. Infrastructure investments, recognized for their economic necessity and resilience to economic cycles, are particularly emphasized. These investments often feature long-term, inflation-linked contracts providing stability in volatile markets. In Asia, significant due to its high emissions and reliance on hydrocarbons, supportive policies are enhancing the adoption of renewable energy, with ambitious goals set in countries like the Philippines, Thailand, and Malaysia. Blended finance strategies are also fostering robust public-private partnerships to boost climate infrastructure investment in emerging markets. Additionally, the importance of digital infrastructure in the energy transition is stressed, highlighting the need for green data centers and advanced energy storage solutions, such as the development of the world's largest battery energy storage system in Sydney. The scale and complexity of the low-carbon transition necessitate that investors remain well-informed about cost trajectories, technological advancements, and the dynamic interactions within the energy sector's value chain. Understanding regional diversities, especially in Asia, and strategically positioning investments in private markets and infrastructure are vital for effectively navigating this transition. The low-carbon transition offers a multitude of investment opportunities and challenges, emphasizing the need for a strategic and informed approach. Investors must consider broad macroeconomic forces alongside specific sectoral shifts. Key areas such as private market investments, infrastructure development, and technological advancements in energy storage and digital infrastructure are critical for leveraging the potential benefits of this transformative shift. #LowCarbonTransition #SustainableInvesting #RenewableEnergy #InfrastructureInvestment #PrivateMarkets #DigitalInfrastructure

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The International Renewable Energy Agency (#IRENA) has recently published a guide titled "#Green #Hydrogen Auctions: A Guide to Design," which outlines effective strategies for implementing #green #hydrogen auctions. This guide is part of a broader effort to facilitate the development and deployment of #green #hydrogen, a key player in the transition to sustainable energy systems. Overview of Green Hydrogen Auctions Green hydrogen is produced through electrolysis powered by renewable energy sources, making it a pivotal solution for decarbonizing hard-to-abate sectors and enhancing energy security. As of May 2024, 52 countries have established hydrogen strategies, with a significant portion coming from emerging economies. The adoption of competitive public procurement mechanisms, such as auctions, is gaining traction as a means to stimulate green hydrogen production and usage. Design Considerations for #Green #Hydrogen Auctions #Stakeholder #Engagement: Identifying and involving key stakeholders government agencies, industry players, and the public is essential for building support and addressing barriers. Long-term Energy Scenarios (#LTES): These scenarios help integrate hydrogen strategies into broader energy planning, setting achievable targets aligned with climate goals. #Priority Setting: Factors such as renewable resource availability, existing infrastructure, and technological readiness should guide priority areas within the strategy4. #Export Considerations: Countries with abundant renewable resources should assess their potential in the global hydrogen market, including trade dynamics and certification standards. #Governance Structures: Effective governance is crucial for coordinating efforts across various agencies and ensuring alignment with national energy policies.

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【Newsletter】China Energy Policy Newsletter - April 2024 In this month’s newsletter:    China energy transition updates · NEA interprets the characteristics of a new-type energy system · The main starting points for the reduction of energy intensity in 2024 · NEA clarifies the main tasks in the energy field in 2024 · A further connection of green certificate with energy consumption dual-control · Green power market achieves nationwide coverage · NDRC renews the renewable power guaranteed acquisition supervision policy · Distribution grid development needs to serve distributed entities better · NDRC further regulates ancillary services pricing mechanism · CCER trading market officially launched · The State Council issues the first special regulation on carbon market transactions   Policy monitoring · The 2025 carbon reduction plan for the construction sector released · MIIT requires the establishment of a "dual carbon" standard system in the industrial field · The State Council clarifies the goals of building a waste recycling system · China solicits the fifth batch of key low-carbon technologies for promotion · NDRC updates green industry guiding catalog · NEA issues basic rules for power market information disclosure · NDRC expands coverage of energy efficiency standards for energy-consuming equipment · Government clarifies five-year development goals for power system flexibility If you would like to subscribe or unsubscribe to the newsletter, please send the information below to [email protected] Email address: Full name: Organization: Title: #greencertificate #distributedenergy #CCER #powermarketreform https://lnkd.in/gBJ66sNP

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👀 Look out for the new Energy Transitions Commission Insights Briefing on #CredibleContributions 📅 Coming next week, June 10th The analysis focuses on how the third round of #NDCs due at COP30 can, and must, help to translate ambition into action and accelerate climate progress. 

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Energy Community Secretariat releases report on post-war development of renewable energy sector in Ukraine https://lnkd.in/eYt-A48P Key recommendations outlined in the report include: - Development of an updated Ukraine Energy Strategy and National Energy and Climate Plan (NECP), incorporating input from key stakeholders and aligning with EU integration goals. - Feasibility studies to facilitate the integration of renewable energy sources into the grid and identify priority measures for future procurement. - Harmonization of subordinate plans, legislation, and development frameworks to support overall sector strategy. - Alignment of legal frameworks with Energy Community standards to ensure compliance with EU legislation. - Resolution of non-payment issues through regulatory reforms and independent oversight mechanisms. - Promotion of smaller distributed suppliers to enhance market stability and resilience. - Implementation of legislative amendments and financial mechanisms to support sector revitalization. PDF: https://lnkd.in/eGCXUgfA 👉 OGEL Special Issue on The Impact of the War in Ukraine on the Energy Sector https://lnkd.in/gJVYZ5uu

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Interesting International Energy Agency (IEA) #report to #review. It’s always important to understand the #globalcontext and #trends to set our #opportunities and #gaps considering the markets. Given the increasing spending on #renewables and #investment in #cleanenergy, have we done the job regarding the availability for #strategicminerals required? In #Perú we rely on #hydropower, although there’s a potential #watercrisis in the region. Are we doing the job to set up (natural) infrastructure to support the water requirement? Additionally, #grids have become a bottleneck for #energytransition. Other countries in LAC are doing the job. Is this part of the plan in Peru?

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📢 The Integrity Council for the Voluntary Carbon Market (ICVCM) announced today it has rejected all renewable energy methodologies assessed for CCP eligibility, citing concerns around additionality and robust quantification of credits. It means roughly a third of credits issued today will not receive the CCP label. We broadly agree - of the 123 renewable projects we have rated, a majority are 'B' or 'C' meaning they have either a ‘low’ or ‘very low’ likelihood of achieving 1 tonne of CO2e avoided. 90% face significant additionality risks. Read more: https://lnkd.in/eFKazFuj

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#EnergyTransition | For a successful and equitable energy transition, a comprehensive policy framework minimises uncertainty and promotes fairness by providing clear guidelines and procedures for plant closures and defining stakeholder responsibilities. To ensure a truly just transition away from coal, the framework must mandate inclusive decision-making and equitable distribution of benefits from repurposed sites. It must address social impacts on affected communities, mitigate job losses, and strengthen social protection for all workers. Further, the framework will promote fair labour practices and economic diversification, integrate environmental protection, while ensuring long-term planning for a sustainable and equitable energy future. CEEP’s study on Rajasthan’s Kota Super Thermal Power Station (KSTPS), underscores the urgent need to address gaps in existing policy frameworks to avoid the negative social and economic consequences of an unplanned transition away from coal. Access the full report, "Navigating Energy Transition: Understanding Socio-Economic Complexities and Intersectionality in Thermal Power Plants”, here:  https://lnkd.in/g8QJMMz4 #JustTransition #India #Coal #Sustainability #CEEP #ThermalPowerPlants

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The International Energy Agency (IEA) published a new report on July 2024 titled Developing Capacity for Long-Term Energy Policy Planning: A Roadmap Today’s main policy questions relate to what an energy policy should look like to be robust and flexible enough to deal with the uncertainties of the future. Therefore, a scenario-approach relying on energy system models is essential to support decision making because modern energy system analysis provides the best chance of ensuring decisions will not be regretted in the medium to long term. Developing analytical capacity (i.e. tools and staff skills) is complex and time-consuming. To maintain – and especially expand – a country’s capacity for long-term energy planning, adequate resources need to be allocated, particularly to a dedicated modelling team, to ensure continuity. In addition, energy modelling and scenario analysis also require reliable energy statistics as input data to depict the current situation of the energy sector. Thus, the development of energy modelling capabilities should be complemented by improvements in the collection, validation and analysis of national energy statistics. This report builds on IEA analysis of long-term energy policy planning, and further explores the capacity required at the national level for the different work areas. It equally targets countries in the early stages of developing long-term energy plans and those with more established structures seeking to further develop a specific area or sector. It also includes a self-assessment framework to identify key areas for further improvement, as well as a list of available resources that national stakeholders can immediately tap into. Osama Fawzy Georgy HENEIN, MBA

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The Second Low-Carbon Energy Programmatic Development Policy Operation – the second in a series of two operations similar in size – will support reforms to boost the production of green hydrogen and electrolyzers, critical technology needed for green hydrogen production. Read: https://lnkd.in/dPDsJNrT

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A new report from the International Energy Agency (IEA) suggests that the world could miss out on a target of 11,000 GW of global renewables capacity by the end of the decade, as agreed at #COP28. It also predicts that solar will become the world’s largest source of installed renewable capacity, surpassing hydropower. #SolarPower #RenewableEnergyTransition #CleanPower

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New Oxford Institute for Energy Studies paper looks at Reforming Capacity Markets and How to Incorporate the Flexibility of Residential Consumers 👉 Link to OIES Paper: https://lnkd.in/dQDGNjUD Key points: 💠 Instead of building new generation capacity to ensure resource adequacy, demand response resources can lower residential consumption for financial compensation at times of generation scarcity 💠 Residential demand response can greatly favour the system but its uptake is quite low since residential consumers tend to withdraw from demand response programs if the inconvenience of participating becomes too high 💠 Paper proposes a simple, nonintrusive and cost-efficient methods for residential demand participation in capacity markets through priority pricing contracts 💠  Priority pricing contracts could be integrated via an aggregator as explicit demand response in capacity markets, advocating for participation on the ‘demand’ side rather than the ‘supply’ side to prevent market distortion and better align with consumer reliability preferences 💠 Aggregators are responsible for the imbalances between the flexible consumer’s forecast and actual consumption instead of energy suppliers to avoid retail market distortions #aggregators #demandflexibility #electricitymarkets #

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The International Energy Agency (IEA) released their latest Global Energy and Climate report Oct. 2024 IEA has worked to develop a new integrated modelling framework: The IEA’s Global Energy and Climate (GEC) Model. This model is now the principal tool used to generate detailed sector-by-sector and region-by-region long-term scenarios across IEA's publications. The GEC Model brings together the unique modelling capabilities of the WEM and ETP models. The result is a large-scale, bottom-up partial-optimization modelling framework allowing for a unique set of analytical capacities in energy markets, technology trends, policy strategies and investments across the energy sector that would be critical to achieve climate goals. The IEA’s GEC Model covers 27 regions that can be aggregated to world-level results, and covers all sectors across the energy system with dedicated bottom-up modelling for: - Final energy demand, covering #industry, #transport, #buildings, #agriculture and other non-energy use. This is driven by detailed modelling of #energy service and material demand.  - Energy transformation, including #electricity generation and heat production, #refineries, the production of #biofuels, #hydrogen and hydrogen-based fuels and other energy-related processes, as well as related #transmission and distribution systems, #storage and trade.  - #Energysupply, including fossil fuels exploration, extraction and trade, and the availability of #renewableenergy resources. The GEC Model is a highly data-intensive model covering the whole global energy system. Much of the data on energy supply, transformation and demand, as well as energy prices, is obtained from the IEA’s own databases of energy and economic statistics (IEA, 2024a). It also draws on data from collaboration with other institutions and from a wide range of external sources, which are indicated in the relevant sections of this document Osama Fawzy Georgy HENEIN, MBA

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The world needs to transition from #FossilFuels to #CleanFuels!!! A #SmartEnergyTransition will reduce #CarbonEmissions, will combat #ClimateChange, and last but no least, will ensure a #SustainableEnergySupply for future generations. It aims to integrate #CleanTechnologies, improve #EnergyEfficiency, and enhance #GridReliability while maintaining #EconomicGrowth and #EnergySecurity. When global leaders and decission makers will be ready for this so needed #SmartEnergyTransition???

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