News on the global hydroelectric industry from November-December 2014

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Germany’s utilities, battered by the country’s shift to wind turbines and solar panels, would be glad to sell you a power plant on the cheap. They’ll even pack it up and ship it to another country.

California’s bet on green energy is paying off, with clean technology companies creating more jobs and investing more money than competitors in any other state.

Enel SpA is putting the final touches on a yieldco that would hold its U.S. renewable energy assets, making it the latest power-plant owner to opt for a structure that frees up capital.

Policies favoring clean energy and increased competition would normally dim prospects for existing producers. Not in Chile, where foreign investors are driving a renewable boom at a time of surging returns by local utilities.

President Barack Obama ordered the federal government to reduce greenhouse gas emissions by 40 percent from 2008 levels over the next 10 years by shifting to renewable energy sources such as solar power.

Political deadlock over Australia’s clean energy future is prompting companies such as Vestas Wind Systems A/S and Acciona SA to increasingly turn to rival markets for growth.

Brazil will increase the use of renewable energy, target zero net deforestation and push for low-carbon agriculture as part of its climate proposal, Environment Minister Izabella Teixeira said in an interview.

Australia’s largest electricity producer committed to close its coal-fired power plants within 35 years as part of an effort to cut the nation’s dependence on the fossil fuel.

A $2 trillion push in the U.S. to blend renewable energy into the power supply and fortify transmission lines against extreme weather means that Americans must act more like Europeans to keep their power costs down.

Long-frustrated wind and solar developers in Australia can now get to work on more than A$14 billion ($11 billion) in projects after a new renewable energy target passed parliament.

The secretary general of the United Nations is frustrated with the pace of negotiations for what’s intended to be a crucial agreement limiting global warming.

Climate change pledges submitted so far from the world’s leading economies won’t be enough to keep the planet from warming dangerously, UN Secretary General Ban Ki-moon said Monday in New York.

Proposals to reduce heat-trapping emissions need to be “a floor, not a ceiling,” he said.

The global increase in temperatures will exceed 2 degrees Celsius (3.6 degrees Fahrenheit) under the national pledges already submitted to UN, Ban said. That’s the goal scientists and the UN have set to avoid the worst effects due to global warming.

The proposals submitted to date “will not be enough to place us on a 2-degree pathway,” Ban said.

Without any changes to global emissions, the world is on track to warm by 4 degrees Celsius or more, UN Assistant Secretary-General for Climate Change Janos Pasztor said earlier this month.

World leaders have five months to go before a meeting of almost 200 nations in Paris that’s intended to seal a new global pact to cut planet-warming carbon emissions. If successful, the agreement would be the first ever to require both developed nations like the US and growing economies like China to address climate change.

“The pace of UN negotiations are far too slow,” Ban said. “It’s like a snail’s pace.”

The U.S., the world’s biggest historic source of greenhouse gases, pledged earlier this year to cut its emissions by as much as 28 percent by 2025. The European Union has promised a 40 percent cut by 2030. Several other major economies, including Australia and Japan, have yet to submit climate plans to the UN.

Publicly, the United Nations climate-change talks look mired in disputes over everything from money to the length of the proposed agreement.

India's Union Cabinet has approved cost revisions for its intergovernmental agreement with the Royal Government of Bhutan to implement the 1,200-MW Punatsangchhu-1 hydroelectric project on Bhutan's Punatsangchhu River.

Executives from 13 major U.S. corporations are announcing at least $140 billion in new investments to decrease their carbon footprints as part of a White House initiative to recruit private commitments ahead of a United Nations climate-change summit later this year in Paris.

Companies including Apple Inc., Berkshire Hathaway Energy Co., and Goldman Sachs Group Inc. will join Secretary of State John Kerry and top administration officials at the White House for the announcement. In addition to pledges to cut emissions, provide financing to environmentally-focused companies, and reduce water consumption, the companies have said they will procure at least 1,600 MW of new, renewable energy. The White House said in a statement that it expects to announce a second round of similar pledges later this fall from additional companies.

The commitments are being announced as President Barack Obama is looking to build momentum toward a legacy-defining global climate accord in Paris. In addition to company-specific commitments, the corporate leaders on Monday will signal their support for a strong climate agreement out of the United Nations talks. They administration is using the pledges to set an example for companies to find ways to eliminate their carbon emissions.

Climate Talks

“As the world looks toward global climate negotiations in Paris this December, American leadership at all levels will be essential,” the White House said in a fact sheet detailing the announcement.

The administration’s actions are pushing the issue into the 2016 presidential debate. Hillary Clinton, the front-runner for the Democratic nomination, released an energy strategy saying she would both defend and go beyond Obama’s efforts. Republican candidates have criticized the administration’s initiatives as costly to the economy and unnecessary.

Among the pledges, aluminum manufacturer Alcoa Inc. has agreed to reduce emissions by 50 percent from its 2005 levels, while agricultural giant Cargill Inc. says 18 percent of its total energy use will come from renewable sources.

Coca-Cola Co. said it would drive down the carbon footprint of its beverage production by 25 percent over the next five years, while Google says it plans to triple its purchases of renewable energy over the next decade. Berkshire Hathaway says it plans to invest up to an additional $15 billion in the construction and operation of renewable energy generators, while Bank of America Corp says it will increase its environmental business initiative by $75 billion over the next decade, according to the White House

Other participating firms include Wal-Mart, United Parcel Service Inc., PepsiCo Inc., Microsoft Corp., General Motors Inc.

The corporate commitments won’t be the administration’s only major climate announcement in the next few weeks. The Environmental Protection Agency is set to present final regulations that aim to reduce carbon emissions from power plants by 30 percent from 2005 levels by 2030 later this week.

While visiting Kenya over the weekend, Obama repeatedly praised the country for its efforts to address climate change, saying its efforts tor educe emissions “has put it in the position of being a leader on the continent.” And next month, the president will travel to Alaska for an international summit on Arctic climate issues.

©2015 Bloomberg News

For more, see Big Companies, Big Renewable Investments.

According to a press release from Aquamarine Power, the marine hydrokinetic (MHK) Wave Power Offtake Device (WavePOD) 10th-scale prototype, a project run jointly by Aquamarine Power, Bosch Rexroth and Carnegie Wave Energy, has received US$3.1 million in new funding. 

JSW Energy Ltd., based in Mumbai, India, is refinancing about US$1.1 billion via a 5:25 financial structure for its hydropower-related debt following the purchase of two hydroelectric projects in November 2014 from Jaiprakash Power Ventures Ltd.  

JSW Energy Ltd., based in Mumbai, India, is refinancing about US$1.1 billion via a 5:25 financial structure for its hydropower-related debt following the purchase of two hydroelectric projects in November 2014 from Jaiprakash Power Ventures Ltd.  

Venezuela's government is taking measures to inspect the infrastructure of the country’s main hydroelectric-related civil structure as rising temperatures, reduced precipitation and increased energy demand affect water levels at the 4,000-square-mile Guri Reservoir.  

The U.S. House of Representatives has passed bipartisan hydroelectric power regulatory improvement provisions as part of the North American Energy Security and Infrastructure Act of 2015, potentially helping to expedite the project approval process.

The US$1.6 billion Northern Pass transmission line that could tap into 1,096 MW from Canada’s largest hydropower producer, HydroQuebec, was approved Dec. 7, by a 6-0 vote of New Hampshire’s Site Evaluation Committee [SEC].
 

Marine hydrokinetics (MHK) company BioPower Systems (BPS) reports it deployed its 250 kW bioWAVE pilot demonstration unit, Dec. 16, in the Southern Ocean off the southeastern coast of Australia near Port Fairy, Victoria.
 

The New Development Bank (NDB), which has an authorized capital of US$100 billion, could provide additional opportunities to fund development of new hydroelectric projects.
 

Less than two weeks after 175 nations signed the pivotal Paris Agreement on climate change, a question lingers: What happens now?

A report released this month by PricewaterhouseCoopers (PwC) indicates hydropower development in India can play a crucial role in the country’s sustainable energy security if sites for new installed capacity -- among other things -- are accessible, stable and affordable.
 

Brexit; It’s been the buzz word dominating the media recently and it’s likely to continue for some time. The UK’s decision to leave the EU has left both supporting sides of the ‘leave’ and ‘remain’ campaign in a somewhat collective state of uncertainty as to how this decision will impact the country right now and in the future years.

RWE Innogy UK Ltd. is awaiting a decision by the end of August or in early September on its resubmitted planning application for the run-of-river US$17 million, 5 MW hydroelectric project located across Conwy Falls and Fairy Glen near Betws-y-Coed, the principal village of Snowdonia National Park, in northwest Wales, UK.  

In the case of the Fossil Fuel Industry, et. al. VS Earth, et. al., I find myself asking—not for the first time—is justice delayed, justice denied? It should come as no surprise that I am convinced it is.

As the water levels in dams in South Africa continue to dwindle, the 2015 Zimbabwe Humanitarian Situation Report notes that water levels in all of Zimbabwe’s seven catchment areas are about 18%, their worst levels in decades.
 

A Brazilian federal court has suspended an operating license for the 11.2-GW Belo Monte hydroelectric plant, stating that its developers have failed to provide water and sewage services to areas near the project.

The United States and China on Sept. 3 formally joined the Paris Agreement in a ceremony in Hangzhou, China, ahead of the G20 Summit. President Obama and President Xi both deposited their country’s official instrument with United Nations Secretary, General Ban-Ki Moon.

Ivanhoe Mines announced today in a press release that the Mwadingusha hydropower plant in the Democratic Republic of Congo (DRC) has begun supplying an initial 11 MW of power to the national grid after upgrading and rehabilitating the first of six turbine-generators at the plant.
 

The World Bank has approved US$390 million in additional financing to be used by Pakistan's Water and Power Development Authority for extensions of its Tarbela hydroelectric plant.

Zambia and Zimbabwe have appointed the African Development Bank (AfDB) as lead financial adviser for the construction of the 2,400-MW Batoka Gorge hydropower project, according to Zambezi River Authority (ZRA) Chief Executive Officer, Munyaradzi Munodawafa.
 

By the time this column is published, oral arguments in the legal challenge to the Clean Power Plan will have already been made. The en banc panel of 10 appeals court judges is not likely to render its decision before the New Year.  No matter the opinion, it will be appealed to the U.S. Supreme Court.

U.S. Sens. Ron Wyden, D-Ore., Jeff Merkley, D-Ore., Lisa Murkowski, R-Alaska, and Patty Murray, D-Wash., today announced funding will be awarded to build the United States’ first open-ocean, power grid-connected wave energy test facility at a site off the Oregon coast, according to a U.S. Senate press release.
 

Power Africa and Trade Africa Coordinator, Andrew Herscowitz, announced on Feb. 14 during the Abuja Electricity Distribution Co.’s two-day Distribution Company Workshop in Abuja, Nigeria, that the U.S. will invest US$1billion in the country through the U.S. Trade and Development Agency (USTDA).

India’s Cabinet Committee on Economic Affairs announced today it has approved investment for the generation component of the 900-MW Arun 3 hydropower project on Arun River in Sankhuwasabha district of eastern Nepal, for an estimated Rs. 5723.72 crore (US$854.4 million).
 

The user selection board of the €11 million (US$11.8 million) Funding Ocean Renewable Energy through Strategic European Action (FORESEA) project has awarded “Recommendations for Support” to 15 offshore renewable energy technologies, according to an announcement today from FORESEA.  

In a portion of her statement delivered yesterday to the European Union, United Kingdom Prime Minister Theresa May said, “I hereby notify the European Council in accordance with Article 50 of the Treaty on European Union of the United Kingdom's intention to withdraw from the European Union.”
 

Only time will tell whether this is right, but EV adoption is clearly rising both on the individual and fleet fronts. Utilities such as Southern California Edison and Ameren, among many others, are working to build EV charging infrastructure and align power distribution in a way to handle it.

What happens when a famously left-leaning city dives into the buttoned-down business of electric utilities? San Francisco may soon find out.

Illinois microgrid to test transactive energy markets as a part of the company's commitment to innovation and clean energy

On Thursday, US Congressman from Pennsylvania Mike Doyle introduced a bill that would establish a federal investment tax credit (ITC) for energy storage. The legislation would allow energy storage project developers, both commercial and residential, to receive a 30 percent tax credit for large-scale, commercial-scale and residential-scale storage projects through 2021.

Recently there has been a great deal of interest in a ‘Green New Deal’ for the United States. It is seen as a way to solve pressing environmental, employment and economic problems with a single comprehensive plan. Modeled on Roosevelt’s New Deal, which created jobs, invested in large infrastructure projects, and pulled the US out of the Great Depression, the Green New Deal is a modern version of that program, but with green energy investments, 21st century job training, and deficit reduction as the key components.

On Thursday, Puerto Rico’s Governor Ricardo Rosselló signed into law the Puerto Rico Energy Public Policy Act which lays the groundwork for the island’s transition to 100 percent clean energy by 2050.