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Publishing Company Darmax Enterprises S.R.L. Digital & Print Media Bucharest-Romania Publisher Apostolos Komnos The english edition for S.E. Europe & Eastern Mediterranean Issue Nr 39 November-December 2020 ISSUE PRICE: 3 euros Energyworld magazine. All rights reserved. No part of this publication may be transmitted or reproduced in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher.

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CHINA’S PLANS TO DOMINATE THE GLOBAL NUCLEAR ENERGY

ROMANIA: WIND ENERGY DEVELOPMENT PROSPECTS

WHAT IF NORD STREAM 2 IS NEVER COMPLETED?

BIDEN WIN SHINES SPOTLIGHT ON RENEWABLE FUELS

BULGARTRANSGAZ IN THE ALEXANDROUPOLIS FSRU

MOU BETWEEN DEPA, DESFA AND PATRAS PORT AUTHORITY

IEA: COVID VACCINE UNLIKELY TO BOOST GLOBAL OIL DEMAND

ROMANIA: FRONT RUNNER ADVANTAGE IN BLACK SEA UNDER THREAT

ROMANIA: HOW HAS THE COVID-19 CRISIS IMPACTED THE ECONOMY

NEWS IN BRIEF

EDITORIAL

Contents

01 02 03 04 05 06 07 08 09 10 11


Editorial

01

THE ECONOMIC IMPACT OF THE COVID-19 CRISIS

The Covid -19 crisis represents, without doubt, one of the greatest threats the global economy has faced in the last century.

Macroeconomic imbalances in Romania were deepening even prior to the Covid-19 crisis. The income-led growth policy, pursued vigorously by the authorities since 2015, triggered the reemergence of twin deficits (i.e. fiscal and current account). Fiscal sustainability has become aserious issue, brought about by a drop in fiscal revenues and increased borrowing. Romania has the largest borrowing cost among EU countries and the highest sovereign risk.

Most of the governments across the world have imposed lockdowns. Although these have been considerably eased in most EU countries by the end of May 2020, they have generated, simultaneously, both a supply and a demand shock, as a large part of business’ activities slowed down and customers buying habits changed due to mobility restrictions and the loss of income. But these effects have had an asymmetric impact both across countries and economic sectors, influenced by the countries’ economic structure and their initial economic conditions.

The short term direction of structural changes in demand can be inferred by the behavior of the Beveridge curve and vacancies dynamics across the economics sectors. 4


BIG COMPANIES

SHOULD SUPPORT THE COMMUNITIES

THEY’RE A

PART OF. www.energyworld-mag.com


News in brief

02 The City of Darwin introduces smart lighting The municipal government of Darwin, the capital of Australia’s northern territory, has announced the introduction of a smart lighting system. A bold initiative, especially considering the ongoing disruption caused by COVD19, the system will feature more than 9,500 public and streets converted to run on a new digital system, saving citizens an estimated A$600,000 in annual rates. The smart network will allow faults to be detected much faster, with initial testing being carried out automatically to save time and money in instances where an attending engineer might be unnecessary. In addition, the lights themselves will be replaced with energy-efficient LEDs capable of an operational lifespan up to 50 times longer than standard incandescent types, whilst also providing better lighting, reducing energy consumption and lowering costs.

VW will transform a Greek island into a green mobility hub Volkswagen AG will launch a pilot project for climate-neutral mobility on the Greek island of Astypalea, in the eastern Aegean sea, as part of the German automaker’s efforts to roll out electric vehicles and curb emissions.Car- and ride-sharing offerings will help reduce traffic, and vehicles on the island will switch to electric powertrains that will recharge mostly with locally produced renewable energy, VW said. The world’s best-selling automaker is in the midst of a 33 billion-euro ($38.6 billion) push over five years to develop the industry’s biggest lineup of purely battery-powered cars, which will be flanked by numerous hybrid vehicles. Tapping renewable energy sources such as solar power is critical to maximizing environmental benefits, since using coal power to recharge limits emission-reduction efforts. “Astypalea can and will become a model of sustainable development not just at a national but at a European and a global level,” Greek Prime Minister Kyriakos Mitsotakis said during a virtual event announcing the investment. It can set an example of how small communities can benefit from addressing all problems with new solutions, he said.

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Economy

03

Ella Kallai and Laurian Lungu - Consilium Policy Advisors Group

ROMANIA: HOW HAS THE COVID-19 CRISIS IMPACTED THE ECONOMY The structure of the economy plays an important role in evaluating how the economy responds to the Covid-19 shock. Fig. 5 shows the decomposition of 2019 gross value added (GVA) across the main sectors of the economy, highlighting the contribution of each one of them to total GVA.

To capture changes in the economic structure in time, a comparison is made against year 2010. As the GDP/capita continued to grow during this period, the structure of the economy changed with services gaining more share in total GVA at industry’s loss. The 2019 economic structure shows some notable differences when compared to a decade ago: the industry, although remaining the most relevant sector in the economy, reduced its share in GVA from 33.5% to 24% today – a significant drop. Wholesale and retail, which includes also transport, hotels and restaurants increased its share in GVA to 20% in 2019, from only 13% in 2010. This represents a vulnerability in the current pandemic context as it is precisely these two sectors of the economy, which have the largest contribution to GVA, that were among the hardest hit by the Covid-19 crisis. Public sector’s share in GVA, which includes health care, education and defense, rose to 15% in 2019 from 13.8% in 2010. This is a sector that has benefited, so far, from the crisis due to the fact that incurred higher spending 8

and investments – especially in the healthcare sector – with the employees not being affected - in general - by either the loss of income or jobs. The employment’s structure is presented in Fig 6. Here, the changes in employment are not as large as those observed in the GVA shares’ changes.

Potential Winners and Losers from Covid-19

At the time of writing, towards the end of June 2020, the generalized lockdown has been gradually phased out across EU countries. The assessment of economic destruction will be a gradual process, as events continue to unfold and be quantified by statistical data. Some of the destruction in certain sectors of the economy could be permanent. During the first phase of the crisis the immediate policy objectives were twofold: - to ease the burden of the income loss generated by the imposed lockdown and - to support the health care system. The first objective was tackled by the government with special unemployment assistance for those with suspended


Geopolitics of energy

04

ROMANIA: FRONT RUNNER ADVANTAGE IN BLACK SEA UNDER THREAT President Erdogan’s announcement of a potential 14Tcf discovery in Turkey’s Back Sea plus his insistence that Turkey will aggressively appraise and develop this massive discovery highlights the differences in Turkey’s positive and proactive approach to offshore gas development versus Romania’s long history of investment adverse blockages. It’s not just Turkey that is seeing investment growth, the exploration and appraisal enthusiasm has also moved from Romania to other countries in the Black Sea including Bulgaria, Ukraine and even Georgia.

Romania still has the pole position on developing its Black Sea resources and is well ahead of the rest of the pack in the Black Sea. Even Turkey’s announcement, as impressive as it is, confirms that further appraisal and engineering efforts are in front of it whereas Romania has up to 5Tcf of gas ready for development. Considering that gas, particularly in the EU, is considered a transition fuel to a zero carbon target these Black Sea countries will be in direct competition to see who will supply gas to this narrowing market. To further support Romania as a country that has all the front runner advantages, in addition to the resources being investment ready offshore, Romania has 13,000 kms of NTS pipelines that can provide gas throughout the country and even has the BRUA pipeline plus the Transits lines that can accommodate gas hungry export markets for any oversupply of gas for Romania. Furthermore, Romania should be highly motivated to move these developments forward as it has, similar to many countries around the world, been severely hit by the Covid Pandemic and cannot afford the luxury 16

of leaving these highly economically impactful resources in the ground. However, Romania’s lead position is not guaranteed. It’s likely that Turkey will be able to realise a 4-year discoveryto-first gas time frame (or even less) whereas these time frames have not been possible, and are still not possible, in Romania. Discoveries in Romania such as the MGD project are looking to achieve discovery to First Gas in a 14year time frame. In addition, Neptun and Lira discoveries appear to be on hold and furthermore it appears that the operators of these discoveries (Xom and Lukoil respectively) are looking to sell and exit Romania’s Black Sea even though they sit on sizeable gas finds. Even the 11th licensing Round that was originally targeted for 2013 is nowhere in sight. Such prolonged time frames discourage investment and could delegate discoveries to remain stranded. The main obstacles plaguing developing Romania’s offshore are many and varied but all have in common a lack of stability and predictability coupled with, or perhaps because of, a political and


Oil and gas

05 energydigital

IEA: COVID VACCINE UNLIKELY TO BOOST GLOBAL OIL DEMAND November report states vaccine’s impact unlikely to be felt until well into 2021.

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Oil and gas

06

MOU BETWEEN DEPA, DESFA AND PATRAS PORT AUTHORITY Based on the offer of new opportunities and development prospects both for the Port of Patras and the wider region, a memorandum of understanding was signed in July between DEPA, DESFA and the Port Authority of Patras (PPA), aiming to the promotion of the use of LNG as marine fuel.

In particular, the Memorandum provisions to jointly explore the LNG market growth capacity in terms of the use of LNG as a marine fuel in Patras, as well as to study all the required actions and the business cooperation framework for the construction of Small Scale LNG facilities, as stipulated in the Port of Patras’ MASTER PLAN. Furthermore, the parties agreed to promptly establish a joint task force for the implementation of the MoU and the completion of the required studies so as to: a) explore the feasibility and the conditions for the construction of smallscale LNG facilities b) the formulation and submission of the Proposal regarding the facilities’ construction financing by European or national resources and c) the determination of the terms and scheme of a potential cooperation of the companies from a legal and business standpoint, for the promotion of the project. 20

For its part, PPA will train the Port’s personnel that will support LNG supply procedures and will adapt the Port Regulation so as to include the supply of ships with LNG. The signing of the MoU is the first step towards the implementation of LNG bunkering at the Port of Patras, expecting to add value to the Port, as it will enhance its competitiveness in the wider Adriatic and Ionian region. At the same time, it will have a positive impact on the environment through the use of LNG as marine fuel. The use of LNG as a marine fuel has multiple social, economic and environmental benefits, such as the creation of new employment opportunities, reduced public health damage – caused by ship emissions in urban centers near ports and coastal areas-, the upgrade of the natural environment by reducing emissions and noise pollution, as well as further development of local economies through the dynamics resulting from using LNG. Compared to conventional marine


Oil and gas

07

The Greek company Gastrade signed an agreement for the acquisition of 20% of its share capital by the Bulgarian company Bulgartransgaz (BTG), operator of the National Natural Gas System of Bulgaria.

BULGARTRANSGAZ IN THE ALEXANDROUPOLIS FSRU

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Biofuels

08 Reuters

BIDEN WIN SHINES SPOTLIGHT ON RENEWABLE FUELS Renewable fuels are a niche market for now, but with Democratic President-Elect Joe Biden set to enter office with a divided Congress, legislation supporting demand for products like renewable diesel could garner bipartisan support.

Biden, elected president last week, defeating Republican Donald Trump, has pledged to move the United States to a zero-carbon emissions scheme by 2050. Under a divided Congress, however, ambitious plans to tackle rising emissions may be put on ice. Renewable fuels, however, may be different: their development is supported by some in both the oil and green energy industries. Some refiners have been investing in cleaner fuels derived from feedstocks like cooking oil, taking advantage of state subsidies designed to reduce carbon emissions. State and federal incentives could expand that market, giving energy companies revenue opportunities while reducing carbon emissions. “I don’t see any reason why a divided Congress would have a problem encouraging renewable fuels, as it affects key states that Democrats and Republicans are motivated in,” said Bill Barnes, director of energy consultancy Pisgah Partners. 24

The United States consumes roughly 21 million barrels of renewable diesel per year, compared with 4.1 million barrels used every day for conventional distillate fuel oil, according to U.S. Energy Department data. Legislators from Farm Belt states such as Minnesota, Iowa and Illinois could see the market as a way to help boost demand for their constituents’ products. It is unclear whether renewable fuels legislation could pass a Republican-led Senate. Senators representing oil states would be less likely to push for legislation that transitions away from the oil industry. The U.S. oil market has been hit hard by the coronavirus pandemic. Demand for motor gasoline has dropped 13% so far in 2020, forcing several refineries to close or convert operations to produce more biodiesel. Many refiners announced plans this year to convert facilities for renewable diesel production, supported by state incentives. In California, refiners can generate tradable credits by producing


Pipelines

09 By Sergiy Makogon*

WHAT IF NORD STREAM 2 IS NEVER COMPLETED? It may sound counterintuitive, but the cancellation of Nord Stream 2 might be in Russia’s best interests: the shift from well-tested on-land infrastructure over to the risky undersea pipelines threatens Gazprom’s most valuable asset – the trust of its customers, writes Sergiy Makogon.

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Wind energy

10

ROMANIA: WIND ENERGY DEVELOPMENT PROSPECTS Offshore wind power is regarded as a likely pillar in reaching net-zero greenhouse gas (GHG) emission by 2050, as envisioned by the European Green Deal. Europe is home to some of the world’s most significant offshore wind resources. Better tapping into this potential will be addressed in the Commission’s upcoming 2020 Offshore Wind Strategy, expected to bolster a rapid expansion of offshore wind on the continent, from the current 20 GW installed capacity to 450 GW by 2050.

Offshore wind generation can offer numerous advantages: high full-load hours, high operating hours, rather low variability and, consequently, greater predictability and lower forecast errors, as well as lower balancing power needs compared to onshore wind and solar PV. The present study assesses the natural and technical potential of Romania’s offshore wind sector, finding an estimated total potential natural capacity of 94 GW, out of which 22 GW could be installed as fixed turbines, leading to a total Annual Energy Production (AEP) of 239 TWh, with 54,4 TWh from fixed turbines. The data analysed in this report show that wind speeds increase with the distance to the shore, with only the central part of the deep-water sector having more sizeable mean wind speeds (close to 7 m/s). A large part of Romania’s Exclusive Economic Zone (EEZ) consists of a deep-water area (>50 m) that is more suitable for floating platforms. Nonetheless, several offshore wind farms in Europe have been recently built at about 60 km from shore, a distance that is just within the Romanian transition area from shallow to deep water. 29

The study identifies two potential clusters with most favourable conditions for a first stage of offshore wind development, based on fixed turbines: one with capacity factors between 33-35%, in water depths below 50 m at 40-60 km from the shore – an area that strikes the right balance between wind resources and costs of the required offshore network, given the possibility to inject the output in the Constanța Sud electrical substation and the proximity to the Port of Constanța. The other area presents marginally better wind resources, but the existing onshore power transmission line is further inland and the connection grid would have to be extended through the Danube Delta, which is a protected area. To develop its wind potential in the Black Sea, Romania needs to address a number of key issues, the most significant being overcoming grid challenges. Any new offshore wind farm developed in Romanian waters will have to be connected to the grid in Dobrogea, where a large part of the country’s power generation assets are already located and additional renewables are planned to be developed, alongside two


Nuclear energy

11

CHINA’S PLANS TO DOMINATE THE GLOBAL NUCLEAR ENERGY We explore China’s ambitious plans to take over the global nuclear energy industry over the next decade.

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Electricity

12

POWER CAPACITY INVESTMENT TO TOP £11.5TRN BloombergNEF’s New Energy Outlook 2020 sees total oil demand peaking in 2035 and growth in clean energy technology rising.

The stark drop in energy demand due to the coronavirus pandemic will remove around 2.5 years’ worth of energy sector emissions between now and 2050, research company Bloomberg NEF says in its latest New Energy Outlook 20202 report. Using its proprietary Economic Transition Scenario, Bloomberg NEF’s latest projection of the evolution of the global energy system over the next 30 years shows that emissions from fuel combustion peaked in 2019. Down approximately eight percent in 2020 due to the COVID-19 pandemic, energy emissions rise again with economic recovery, but never again reach 2019 levels. From 2027 onwards, they fall at a rate of 0.7 percent per year to 2050. The report states that this scenario is based on a huge build-out of supercompetitive wind and solar power, the uptake of electric vehicles and improved energy efficiency across industries. However, there will be £11.5 trillion invested in new power capacity over the next 30 years with wind and solar accounting for 56 percent of global electricity generation by mid-century. An 34

additional £10.7 trillion will be invested in the grid to 2050. In comparison, coal-fired power peaks in China in 2027 and India in 2030, collapsing to 12 percent of global electricity generation in 2050. Gas is the only fossil fuel to keep growing throughout the outlook, up 0.5 percent year-on-year to 2050, growing 33 percent in buildings and 23 percent in industries with few economic low-carbon substitutes. Jon Moore, CEO of BNEF comments: “The next ten years will be crucial for the energy transition. There are three key things that we will need to see: accelerated deployment of wind and PV; faster consumer uptake in electric vehicles, small-scale renewables, and low-carbon heating technology, such as heat pumps; and scaled-up development and deployment of zero-carbon fuels.” However, despite the progress of the energy transition, and the decrease in energy demand brought by Covid-19, BNEF still sees energy sector emissions putting the world on course for a 3.3


Renewables

13

GREECE NECP: RENEWABLES SHARE TO REACH 61% BY 2030 Greece intends to increase the share of renewable energy in electricity consumption from 29.2% to 61% and the share in transport from 6.6% to 19%, according to its final National Energy and Climate Plan (NECP) for the period 2021-2030. The overall target for renewables is set at 35%, compared to 18% in 2018.

The European Commission has prepared assessments of the final NECPs of all member states, which include their performance in addressing the recommendations after the submission of draft NECPs. Greece has partially addressed the recommendations, the assessment reads. However, on renewables, the country largely addressed the recommendation to improve renewables policies and measures.

transport sector

Greece’s renewable energy contribution to the EU target for 2030 is 35% of gross final energy consumption. According to the assessment, it is more ambitious than the contribution of 31% specified in the draft NECP and well above the minimum share resulting from the formula in Annex II of the Regulation on the Governance of the Energy Union and Climate Action (Governance Regulation). The formula distributes the efforts across all EU member states in order to achieve a goal at EU level of 32%.

NECPs show how each European Union member country would contribute to the bloc’s energy and climate targets for 2030 with renewables, energy efficiency, greenhouse gas emission cuts, interconnections, and research and innovation. The EU intends to achieve a 40% reduction in GHG emissions from 1990 levels (30% from 2005 levels outside the EU Emissions Trading System), a 32% share for renewables, and a 32.5% improvement in energy efficiency.

Wind and solar photovoltaic will help the country to secure 61% of electricity consumption is covered by renewable sources, according to the assessment.

Renewables – electrification of the heating and cooling, and

Electrification of these sectors will be implemented by using heat pumps,

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The main contributing technologies in the heating and cooling sector are solar and geothermal. Greece aims to achieve a 42.5% share of renewable energy in heating and cooling and 19% in the transport sector.


Renewables

14 www.theredsea.sa

THE RED SEA PROJECT WITH 100 % RENEWABLE ENERGY The Red Sea Development Company secures multinational investment in its first publicprivate partnership for utilities package focused exclusively on environmentally responsible renewable energy, water production, wastewater treatment and district cooling.

The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, has awarded its highestvalue contract to date to a consortium led by ACWA Power to design, build, operate and transfer The Red Sea Project’s utilities infrastructure. The contract marks a significant step forward for The Red Sea Project, establishing it as the region’s first tourism destination powered solely by renewable energy. A tourism project of this size, powered solely by renewable energy, has never been achieved on this scale anywhere in the world. “This is a pivotal moment for us as we seek to build a new kind of tourism destination in Saudi Arabia, aligned with Vision 2030. We’re committed to pushing the boundaries of what it means to be sustainable and investing heavily in renewables is helping us to set new global standards in regenerative tourism,” said John Pagano, CEO of TRSDC. “This contract also signifies a noteworthy step change for us as the consortium 38

brings foreign investment to the project, demonstrating international support and confidence for the vision that is becoming a reality along the Red Sea coast. At the same time, we are delighted to partner with a consortium leader that has its roots in the Kingdom and shares our ambition to accelerate the energy transition locally,” said Mr. Pagano.

Regenerative tourism

All of the utilities will be delivered under a single agreement, unique for a contract of this kind, which includes the provision of renewable power, potable water, wastewater treatment, solid waste management and district cooling for the 16 hotels, international airport and infrastructure that make up phase one of The Red Sea Project. Mohammad Abunayyan, Chairman, ACWA Power said: “The Red Sea Project is a vital undertaking under the Saudi Vision 2030 and aims to be a global showcase of the Kingdom’s ability to develop ambitious giga projects. Being selected to support this project marks another milestone in our impressive bid win trajectory, and we are honored and


Renewables

15

GE RENEWABLE ENERGY FOR WINDFARMS IN LITHUANIA The 121MW project, which will use 22 GE Cypress onshore wind turbine units, will add 23 percent of green power capacity to country’s wind power production.

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Environment

16

EU: GUIDELINES ON GREEN AGENDA FOR WESTERN BALKANS The Green Agenda for the Western Balkans, envisaged by the European Green Deal, is expected to be endorsed by the Western Balkan leaders at a summit in Bulgarian capital Sofia.

In the European Green Deal, a plan to make the EU climate neutral by 2050, the commission says that “the ecological transition for Europe can only be fully effective if the EU’s immediate neighborhood also takes effective action.” The announcement comes as part of the presentation of a EUR 9 billion Economic and Investment Plan for the Western Balkans This announcement comes as part of the presentation of a EUR 9 billion Economic and Investment Plan for the Western Balkans, adopted by the European Commission. In parallel to the plan, the commission has presented guidelines for implementing the Green Agenda for the Western Balkans, which envisages actions around five pillars, covered also by the European Green Deal: I- climate action, including decarbonization, energy, and mobility II- circular economy, addressing in particular waste, recycling, sustainable production, and efficient use of resources 42

III- biodiversity, aiming to protect and restore the natural wealth of the region (IV) fighting air, water, and soil pollution and V- sustainable food systems and rural areas According to the commission, digitalization will be a key enabler for these pillars in line with the concept of the dual green and digital transition.

The Green Agenda: a blueprint for possible measures

The Guidelines for the Implementation of the Green Agenda for the Western Balkans outline in more detail the actions related to the Green Agenda, the document reads. The Green Agenda should be seen as a blueprint for possible measures to be adopted jointly by the EU and each of the Western Balkan partners, and it brings the most important initiatives for each of the five pillars. When it comes to climate change, for example, the most important actions are to facilitate a swift alignment with the EU Climate Law and explore options for early


Renewables

17

By Frédéric Simon | EURACTIV.com

EU: ‘MASSIVE CHANGE OF SCALE’ ON TIDAL, WAVE ENERGY While focusing chiefly on wind power, the European Commission’s upcoming offshore energy strategy also seeks to boost other ocean energy sources like wave and tidal, according to a draft policy document seen by EURACTIV.

The EU executive’s ambitions on ocean energies – mainly wave and tidal – are laid out in a draft EU strategy on offshore renewables, due to be published on Thursday (19 November). “Ocean energy technologies are expected to make a significant contribution to Europe’s energy system and industry as from 2030,” the Commission says in its draft strategy, seen by EURACTIV. Tides and waves are more predictable than wind and sunshine. As such, ocean energies are seen as “playing a crucial role in the decarbonisation of EU islands” and in stabilising the electricity grid, which is coming under growing strain from rising shares of variable wind and solar power. However, no ocean energy technology has prevailed at the moment, the EU executive notes, saying “significant cost reduction is needed for tidal and wave energy technologies to exploit their potential in the energy mix.” That does not mean the Commission has 44

no ambitions for wave and tidal. The objective, laid out in the draft strategy, is to reach installed capacities of 60 gigawatts (GW) for offshore wind and 1-3 GW for ocean energy by 2030, paving the way for a bigger increase to 300 and 60 GW, respectively, by 2050. Aiming for 60 GW of ocean energy by 2050 “means a massive change of scale for the sector in less than 30 years, at a speed that has no equivalent in any other energy technologies in the past,” the Commission admits. Altogether, offshore renewable capacity should be multiplied 25 times over by 2050 to reach the bloc’s climate neutrality goal. That translates into an investment estimated at up to €789 billion, the Commission points out, describing this is as “a very challenging horizon”.

Maintaining Europe’s leadership The Commission’s fresh push for wave and tidal is justified by a massive planned increase in renewable energies that policymakers say will be needed in order to reach the EU’s long-term climate goals.


Overview

18 Steve Bruce | energydigital.com

HOW AUTOMATION CAN REDUCE ENERGY PROJECT COST Steve Bruce, Product Director at Idox shares his insights into where and how energy players can exert tighter control over projects to reduce cost and risk.

As oil demand recovers slowly, many operators have kept significant CAPEX and OPEX projects in a holding pattern. However, as of August, demand had returned to 89% of its pre-COVID level and by the first quarter of 2021, demand may recover to as much as 92-95% compared to pre-COVID levels, according to IHS Markit. As recovery looms, the energy industry is looking for ways to reignite their projects to spur economic recovery – one with efficiency and productivity at its heart. Digital technologies that help automate laborious manual tasks while supporting engineers, suppliers and project managers to be more self-sufficient could offer a wealth of benefits.

Right information, right time

Underpinning the success of any large capital project is ensuring that the right people have the right information at the right time to make informed decisions. Inefficient document control can often be the bottleneck of an otherwise well managed project. In times past, companies would choose between hiring an army of document controllers to ease congestion or throwing millions of dollars 47

at a custom management system to smooth the crunch. Now, with years of engineering management software experience under the industry’s belt, out-of-thebox workflows that have distilled those development learnings and built in best practice at the same time can be obtained for an affordable price. That’s a big leap given the thousands of craft days and millions of pounds lost to rework due to poor document control every year. However, with COVID-19 continuing to exert pressure on both human resources and project costs, digital transformation can offer a means for industry to manage costs more tightly and improve the quality of work while reducing risk.

Automated document control

It’s an age-old problem. Despite the technological advances that have it made possible for teams to connect and collaborate while working remotely, document controllers are still spending hours of their day chasing up engineering reviews and hunting down documents that have seemingly vanished into thin air. But what if automation could


Environment

19

EU COUNTRIES WITH THE DIRTIEST POWER SYSTEMS IN 2030 The European Union is not on track to deliver the European Commission’s recommended 55% reduction in greenhouse gas emissions by 2030, Ember warned and pointed to lags in several member states including Bulgaria and Romania. The group of countries projected to have the dirtiest power systems in 2030 must make the most progress for the target.

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Technology

20 Source: energydigital.com

TOP 10 ENERGY TRENDS StartUs Insights highlights 10 energy industry trends that will impact the sector in 2020 and beyond

The International Energy Agency (IEA) forecasts that additions of renewable electricity capacity will decline by 13% in 2020, compared to 2019, marking the first downward trend in the sector since 2000. This is a 20% downward revision compared to the IEA’s original forecast for the year, which had 2020 as being a record year for renewable power.

This slide reflects possible delays in construction activity due to supply chain disruptions, lockdown measures and social distancing guidelines, and emerging financial challenges. It also considers policy uncertainty and market developments due to the impact of the COVID-19 outbreak. However, if we look closely at the energy sector, we can still observe various signs that suggest that there will be a rapid transformation for future developments in the sector. Governments around the world are continuing to pass legislation to incorporate sustainable energy sources and technologies, so as to better enable the efficient use of energy systems. While renewable energy projects may have stalled or slowed down in 2020, they are still expected to come online in 2021, which in turn will lead to a rebound in capacity additions. Therefore, StartUs Insights has conducted a n exhaustive analysis and carried out data-driven research to identify 10 key Energy Industry Trends that will impact the sector in 2020 and beyond.

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Legal Insight

21

Dr Lorenc Gordani, Independent Energy Lawyer*

ALBANIA: OVERCOMING THE REGULATORY COMMERCIAL ISSUES The deployment of alternative renewable resources has become a vital priority for Albania. Consider that the country remains a net-importer form around 20 years - on average for one-third of its needs - the issue is how to complete this gap without putting the system (alias OSHEE) into severe financial difficulty.

On regard, the distribute resource candidates itself as a more suitable solution source. However, among many issues of this innovation, the most pressing matter becomes how the country can address the option of its remuneration and determination level. Then, by first, based on daily empirical experience and focusing on the latest updates, the article provides an analysis of the legal and regulatory framework of the photovoltaic developments. Last but not least, “a catalogue� of the different options for helping, identifying and overcoming the complexity approach needed to address the deployment of self-consumption in Albania will follow.

Photovoltaic issues in the framework of the general developments Today, the transition to the green energy sector and the integrated market in the Western Balkan countries have entered the final stage. However, each country has been focusing on discovering its model, based on the greater efficiency of its specific resources. To this regard, Albania has outstanding 58

solar irradiation within most of its territory. The country registers the highest number of sunshine hours per year in Europe. On average, there are around 286 days, with up to 2700 hours of sunshine per year. Therefore, it is also an ideal place, where each hectare of land used can generate up to a quarter of a million euros per year (Council of Ministers Official Website, 2020). However, up to now, less than 1% of its total energy production came from solar generation. Up to here, only seven photovoltaic power plants by 2 MW have been installed, covered by Feed-in Tariff of 100 Euro/MWh and plenty of selfgeneration small installations estimated to reach approximately 50 MW in total. Nevertheless, investments in the new generation sources have been a vital priority of any government in Albania, as the country remains a net importer on average for almost one-third of its needs. In particular, during 2019, drought-triggered electricity imports cost by 209 mil/â‚Ź and put the power utilities (especially OSHEE Group) into severe financial difficulty.


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