Renewable energy Archives

Hawaii orders wind turbine removal that may impact state’s clean energy goals

December 19, 2024

Hawaii plans to remove numerous wind turbines after the implementation of new rules regarding where the state can build these renewable energy structures. The decision has sparked both celebration from locals and concern among officials over how this will impact the state’s clean energy transition.

Many living in Hawaii have long argued that wind energy infrastructure is too close to residential areas. Protests during the 2019 installation of turbines on O‘ahu resulted in over 100 arrests. Locals have voiced concerns about noise, shadow flicker, mechanical risks and potential health impacts, including headaches, sleep disruption and stress.

In response, the Honolulu City Council recently approved new regulations requiring turbines to be located at least 1.25 miles — or 10 times their height, whichever is greater — from residential, apartment or resort property lines. Previously, the setback was only equal to the height of the turbine.

This means turbines currently in violation of the mandate will be decommissioned once their contracts expire. The first set is on track for removal in 2031, and the remainder will likely occur by 2040.

State officials are concerned the stricter rules could hinder Hawaii’s renewable energy goals. Under state law, utility companies are required to source 100% of their electricity from clean power sources by 2045. Wind energy will likely make up 20% of that total. Right now, Hawaii derives about 6% of its energy from wind turbines.

Deputy Director Stephen Walls of the Hawaii Energy Office warned that the new setbacks might deter future wind development in the state, but expressed hopes that advancements in solar and battery storage might offset the impact.

Global coal demand hits record high in 2024, set to plateau through 2027

December 19, 2024

The International Energy Agency (IEA) has reported global coal consumption reached an all-time high of 8.7 billion metric tons in 2024. This marks another record-breaking year for one of the world’s most carbon-intensive energy sources.

While coal demand has continued to decline in the United States and the European Union, consumption in China and India remains on the rise, driving the global surge. Both nations recorded their highest-ever coal usage this year, with China consuming 4.9 billion metric tons and India reaching 1.3 billion metric tons.

Looking ahead, the IEA forecasts that global coal demand will stabilize at current levels, plateauing through 2027. The global energy watchdog attributes this stabilization to the rapid expansion of renewable energy sources, which are increasingly meeting the rising global demand for electricity.

However, despite the plateau, emissions from coal consumption are expected to remain high. The IEA cites the slow adoption of carbon capture technologies as a major factor prolonging the environmental impact of coal.

China, the world’s largest coal consumer, plays a pivotal role in the trajectory of global coal demand. Currently, coal accounts for around 60% of China’s electricity generation. According to the IEA, this reliance could prolong the world’s transition away from coal in the coming years.

In contrast, the United States has made efforts to reduce its dependence on coal. However, with approximately 138 million tons of unburned coal remaining in American power plants, the country’s energy policies could shift in this regard under the incoming Trump administration.

UK-based company planning to power AI in the US with wood-burning plant

December 18, 2024

A U.K. based renewable energy company is scouting locations in the U.S. to power artificial intelligence through a controversial method. The plan from Drax involves building plants that house wood-fired electricity generators in the Southeastern American Pine Belt.

Over the years, the region has seen a number of pulp and paper mills close, leaving timber growers without buyers for trees that can’t be used for making lumber or poles.

Wood burning power has been a contentious issue. While it’s considered a renewable energy source, environmental experts argue that it can significantly contribute to greenhouse gas emissions.

There are also concerns about potential deforestation and air pollution from wood burning plants in areas where wood biomass is harvested.

To bypass those pollution concerns, Drax said it plans to buy wood only from properties managed for timber production, not old-growth stands. And the plants’ exhaust will be piped underground instead of out of smokestacks, which generates profitable carbon credits.

As more data centers go up, technology companies are looking for ways to power them without fossil fuels.

“The whole idea is that 24/7 renewable power is going to become increasingly in demand as data centers grow, as AI grows. There’s a huge need for that commodity,” Drax Chief Executive Will Gardiner told The Wall Street Journal.

Officials expect the wood-burning power plant to be up and running in the U.S. by 2030.

Enormous demand for AI could lead to US and Canada blackouts

December 18, 2024

Growing demand for artificial intelligence could lead to blackouts across the United States and Canada as soon as next year. The warning on Tuesday, Dec. 17, came from the North American Electric Reliability Corporation (NERC), an industry watchdog.

NERC predicts that electrical consumption will increase by 15% over the next decade. The report comes as AI resources like ChatGPT and Apple’s Private Cloud Compute servers expect to see data center power usage double in just the next four years.

Electricity regulators are concerned that the U.S. and Canada’s power grids won’t be able to keep up with demand, saying “the shortfall” could lead to “blackouts during peak demand periods” in the United States and Canada in 2025.

The watchdog’s prediction comes as the U.S. is currently facing challenges with a slowly growing renewable energy market and as the country tries to cut its reliance on fossil fuels.

Expanding the grid to make room for expanding AI data centers has reportedly been a national security priority for the outgoing Biden administration. The White House says that it is pushing to get clean energy deployed quickly so it can meet the enormous energy needs of AI.

Industry experts say they expect a surge of new data centers with the incoming Trump administration.

President-elect Donald Trump has vowed to cut regulations on fossil fuel energy, which would boost the tech sector, and as the surge in AI demand continues, some AI companies have turned to nuclear energy to power their expanding operations.

Copper designation may benefit clean energy, raises environmental concerns

December 16, 2024

Arizona lawmakers are advocating for copper to be added to the federal critical minerals list. They say the metal plays a vital role in renewable energy infrastructure and has the potential for financial benefits if designated.

Copper is essential for building solar panels, wind turbines and other renewable energy technologies. Experts forecast global demand for the metal could increase by as much as 600% by 2030.

The rising need for copper is also expected to increase the price of metal. Current estimates suggest a jump from around $9,000 per ton to as much as $40,000 per ton by decade’s end.

To address these anticipated costs, Arizona officials are urging the U.S. Geological Survey to recognize copper as a critical mineral. This designation could provide tax breaks and regulatory incentives for renewable energy developers.

While the Department of Energy already lists copper as a critical material, this classification doesn’t include the benefits of the Geological Survey’s critical minerals list.

The latter classification identifies minerals essential to the country’s economic and national security vulnerable to supply chain disruptions.

Inclusion on the Geological Survey’s list provides advantages such as accelerated permitting for energy and infrastructure projects.

Arizona has significant economic interests in this push, as the state produces roughly 70% of all copper mined in the U.S., generating over $6 billion annually for its economy.

However, the proposal has sparked environmental concerns. Critics argue that classifying copper as a critical mineral could open new mines without adequate public input, potentially near sacred tribal lands or popular fishing areas. These critics also worry about reduced oversight of mining operations.

Despite these objections, the U.S. House of Representatives recently passed the Critical Mineral Consistency Act, which would add copper to the list. The measure now awaits action in the Senate.

India’s largest renewable energy company faces US bribery charges

December 12, 2024

India’s largest green energy company, the Adani Group, is facing bribery charges in the United States. These accusations have led to questions about whether the situation will impact Delhi’s clean power plans.

American prosecutors claim the Adani Group’s CEO, Gautam Adani, offered $250 million to Indian government officials in exchange for billions of dollars in renewable energy development contracts. Officials said this scheme occurred from 2020 to this year.

The U.S. attorney for the Eastern District of New York alleged in a release accompanying the indictment against the company that the conspirators “lied about the bribery scheme as they sought to raise capital from U.S. and international investors.”

This legal trouble for the Adani Group comes as the company has pledged to invest $100 billion to support India’s renewable energy transition. The company aimed to supply 10% of the country’s renewable electricity needs by 2032.

Fallout from the indictment has already begun. French power conglomerate TotalEnergies suspended additional investments in the Adani Group. The U.S. also canceled a $600 million bond offering to the company immediately after the news became public.

Major credit agencies have downgraded the Adani Group’s ratings to negative. Global lenders are reportedly reevaluating their relationships with the company.

These developments could ultimately have some major financial implications for the Adani Group. The company dependence on international banks and bonds for long-term debt has grown significantly. Experts said it grew from 14% in 2016 to 60% today.

However, industry analysts and competitors believe the charges are unlikely to derail India’s renewable energy goals. One rival CEO described the situation to the BBC as a “passing dark cloud” unlikely to hinder the country’s clean power momentum.

Analysts agree that while the company’s expansion plans may face temporary delays, the situation shouldn’t prevent India’s renewable energy targets from remaining on track.

BP cuts offshore wind spending as the company turns focus to fossil fuels

December 10, 2024

BP is transitioning away from offshore wind energy as the company redirects its focus toward oil and gas ventures. This development comes as the British energy giant announced an agreement to transfer all of its offshore wind projects into a joint venture with Japan’s largest power producer.

The partnership will allow BP to share costs, significantly reducing its financial commitments to these renewable energy developments. The company now plans to spend about $4.2 billion less on offshore wind projects through 2030 than initially anticipated.

BP says the joint venture, expected to be finalized by the end of the third quarter in 2025, will create one of the world’s largest global offshore wind businesses. The move follows earlier measures by the company to reduce expenses tied to its offshore wind efforts after investor dissatisfaction with returns from its renewable energy initiatives.

Earlier this year, BP put a pause on all new offshore wind developments and implemented a hiring freeze within its offshore wind division. The company has also announced plans to sell its U.S. onshore wind business, stating that these assets no longer align with its growth strategy.

As BP pulls out from renewables, the company is simultaneously increasing investments in its more profitable oil and gas operations. After previously unveiling the sector’s most ambitious pledge to cut oil output back in 2020, BP recently decided to abandon that goal altogether in favor of continued fossil fuel production.

Sweden’s renewable energy surplus threatens future of wind sector

December 9, 2024

Sweden, a global leader in renewable energy, faces an oversupply of clean electricity, becoming a problem for its wind power sector. The rapid expansion of wind turbines throughout the Nordic nation over the past two decades has resulted in power production exceeding the capacity of the national grid.

Nearly 96% of the country’s electrical demand is met through low-carbon sources. Wind power accounts for about a quarter of the nation’s power supply.

However, the surplus of wind energy drove energy prices below zero. Energy experts expected this trend to persist for several years.

While lower prices are beneficial for consumers, they have diminished the financial appeal of investing in new wind projects, complicating the future of Sweden’s wind industry.

The Swedish government phased out its primary subsidy program for renewable energy projects three years ago, leaving developers to rely on market-driven investments.

Following this policy shift, there haven’t been any new wind turbine orders in Sweden since the first quarter of 2023. It marked the longest hiatus in two years, and now, developers face diminished returns.

Adding to the challenge is Sweden’s push for new nuclear energy developments, which come with long-term price guarantees.

Though nuclear projects, like other renewables, receive no direct government subsidies, they benefit from incentives such as loan guarantees and other financial mechanisms unavailable to wind developers. Experts argued that these advantages, combined with the lower energy production costs of nuclear plants, will make it difficult for wind projects to remain competitive.

Shell won’t invest in any new offshore wind projects, citing financial concerns

December 5, 2024

Shell, one of the world’s largest energy producers, has announced it will halt new investments in offshore wind energy. The company instead intends to concentrate on its existing offshore wind projects, and increasing spending on oil and gas operations.

The decision is part of a company-wide review initiated in 2023 to cut costs while prioritizing activities with higher and more immediate financial returns.

Earlier this year, Shell exited two offshore wind projects. Shell pulled out of a South Korea-based floating wind farm in February. In March, the company sold its stake in a company established to develop wind projects off the coast of Massachusetts.

In addition to these moves, Shell weakened its carbon emission reduction targets in 2024. The company cited strong near-term demand for natural gas and uncertainties in the renewable energy transition.

Shell’s decision mirrors a broader trend among energy giants like BP and Equinor. Both companies have also reduced renewable investments under investor pressure to increase profitability and maintain high shareholder payouts.

The offshore wind industry has faced significant challenges in recent years, including rising material costs and higher interest rates, further influencing Shell’s strategic shift.

Biden spent $100B on clean energy, aims for more before Trump takes over

December 4, 2024

The White House announced it has now committed over $100 billion to renewable energy projects under President Joe Biden. This development comes as the current administration works to maximize the deployment of funds from the Inflation Reduction Act (IRA) before President-elect Donald Trump takes office.

“Crossing the milestone of $100 billion awarded shows just how quickly we’re getting these funds out the door and into communities so they can make a real difference for the American people,” John Podesta, senior adviser to the president for clean energy innovation and implementation, said.

The Biden administration aims to allocate over 80% of the remaining IRA funding by the end of next month to prevent the incoming president from rescinding unspent money provided under this legislation. White House officials reportedly said they are on track to exceed this target.

Once funds are committed to a project through a signed government contract, they are legally protected and cannot be revoked, even under a new administration.

Trump indicated plans to eliminate unspent IRA funds and expressed interest in rolling back tax incentives for clean energy projects, including wind and solar installations. However, altering these subsidies would likely require congressional approval, a potentially challenging process despite a Republican majority.

Conservative-led states have been the primary beneficiaries of IRA funding. Nearly 60% of announced projects and 85% of investments tied to the legislation have been allocated to conservative congressional districts. In August 2024, 18 Republican House members urged Speaker Mike Johnson not to dismantle the IRA, warning that doing so could jeopardize significant investments in their states.