“Europe will do whatever it takes to keep its competitive edge.”

So said von der Leyen during her 2023 State of the European Union (SOTEU) address, announcing the EVs inquiry as one of two inititiatives to do just that, the other being a support package for the Union’s wind sector.

State of the EU

Referring to the importance of the European Green Deal at the start of her term in 2019, von der Leyen led her State of the Union address with the importance of the energy sector in enhancing Europe’s position as a competitive global player.

“Four years ago, the European Green Deal was our answer to the call of history and this summer, the hottest ever on record, was a stark reminder of that.”

Referencing the extreme wildfires and flooding experienced this year in Greece and Spain, as well as chaotic extreme weather in Bulgaria and other member states, von der Leyen emphasised how, although much has been done towards net zero, “our work is far from over.

“This is the reality of a boiling planet. The European Green Deal was born out of this necessity to protect our planet, but it was also designed as an opportunity to preserve our future prosperity.”

EV inquiry

This initiative, placing Europe again on the map against global energy competition majors such as the US and China, has been in the works through 2023 via tabled policies such as the Net-Zero Industry Act and the Critical Raw Materials Act.

However, although placing Europe on the map as a leading energy player will be key, von der Leyen also cautioned against isolating competitors:

“Our industries and technology companies like competition. They know that global competition is good for business and that it creates and protects jobs here in Europe. But competition is only good as long as it is fair.”

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Hence, the investigation into imported electric vehicles (EVs):

“Take the EV sector. It is a crucial industry for the clean economy with a huge potential in Europe, but global markets are now flooded with cheaper Chinese electric cars; their prices kept artificially low by huge state subsidies.

“This is distorting our market and as we do not accept this distortion from the inside of our market, we do not accept this from the outside.

“I can announce today that the Commission is launching an anti-subsidy investigation into electric vehicles coming from China (…) Europe is open to competition, but not for a race to the bottom.”

This, adds von der Leyen, is part of a strategy to “de-risk, not decouple” trade practices in the EU, a way to boost the Union’s competitiveness while retaining beneficial relations.

According to Reuters reportage, one of many reactions to the announcement of the EVs inquiry was from Sigrid De Vries, head of the European Automobile Manufacturers’ Association (ACEA), who commented on how “China’s apparent advantage and cost-competitive imports are already impacting European auto makers’ domestic market share, with a massive surge in electric vehicle imports in recent years.

“Von der Leyen’s announcement is a positive signal that the European Commission is recognising the increasingly asymmetric situation our industry is faced with, and is giving urgent consideration to distorted competition in our sector.”

Also commenting was Germany’s VDA Automotive Industry Assocation, which cautioned how “damage must be causally quantifiable and the community interest must be taken into account. Possible backlash from China must also be taken into account.

“One thing is clear: an anti-subsidy investigation alone will not help to solve the existing challenges with regard to the competitiveness of the European landscape. Policymakers in Brussels and Berlin must create the framework conditions to ensure that the transformation succeeds.”

The other initiative is focused on the wind sector, which has been “facing a unique mix of challenges and this is why we will put forward a European wind power package, working closely with industry and member states.”

The package, according to von der Leyen, will go towards fast-tracking permitting, improving the Union’s auction systems, boosting skills and supply chains and enabling eased access to finance.

Bitcoin mining energy consumption revised down

The Cambridge Bitcoin Electricity Consumption Index, one of the key resources in this area, has had its first major revision since its launch in 2019, leading to a reduction, albeit relatively small, in consumption.

For example, for 2021 where the largest discrepancy occurs, the earlier estimate of 104TWh is revised downward by 15TWh to 89TWh.

For 2023 the estimated anticipated consumption based on the year-to-mid-August is 70.4TWh, rather than 75.7TWh of the earlier model.

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The Cambridge team attribute the change to the modelling of the Bitcoin mining hardware and technology, taking into account both the increased efficiency and power of the evolving application-specific integrated circuits (ASICs).

With the progressive reduction in chip size, there has been a corresponding reduction in power needed to transmit data.

However, this now appears to have slowed and steadied as the advances have approached the physical limits of semiconductor technology, with smaller chip manufacture becoming more challenging and expensive.

The Cambridge team expresses confidence in their estimates and regards each update as a progressive step toward enhancing their reliability, but the team acknowledges that Bitcoin’s actual electricity consumption remains elusive and can only be approximated.

Moreover, while electricity consumption is a crucial element in determining Bitcoin’s environmental footprint, it is one and the energy sources used in mining are just as important. Further research is planned to focus on developing a more nuanced perspective of Bitcoin’s electricity mix and more closely examining the climate risks and opportunities associated with cryptocurrency mining.

Samsung to add generative AI to home appliances

Samsung has been reported as planning to add a generative AI feature to its home appliances in the next year.

Yoo Mi-young, head of the software development team of Samsung’s digital appliances division, was reported speaking at the IFA consumer electronics show in Berlin: “Generative AI technologies will be applied to voice, vision and display” to enable the household electronic products to have a better understanding of what consumers do and want and to be able to respond accordingly.

It will enable the gadgets to communicate with users in a more conversational manner, and to better respond to their questions based on past exchanges and in context.

They will also be able to provide recipes and dietary suggestions based on for example the food ingredients stored in the refrigerator.

Yoo Mi-young was also quoted as reporting the development of an energy-efficient chip to process the increasing amounts of data of smart appliances, with features such as generative AI.

Hydrogen-powered van doubles the range of EV counterparts

Canadian hydrogen company First Hydrogen has reported that its hydrogen fuel cell powered light van supplied to GB fleet management provider Rivus has achieved an “unbeatable range”, easily more than doubling the upwards range to 240km of other modern light commercial electric vehicles.

The vehicle was trialed with Rivus for just over 4 weeks, and covered over 1,100km in that time. Tests were completed on diverse routes, providing data on how the vehicle operates under different conditions including urban city centre driving and extra urban routes covering both low-speed city centre roads and motorways.

The tests also covered the van both empty and loaded to 90% of its maximum weight capacity, reflecting the way vans will be used in the real world.

The vehicle was found to be not heavily affected by the speed or the payload, and performed well under the different load cycles compared to the electric counterparts, which can experience reductions in range by approximately 10%.

“The main benefit of the vehicle is the refuelling times are quicker than battery electric vehicles charge times. And of course, unlike internal combustion engines, hydrogen vehicles produce zero emissions,” Gemma Horne, Warranty Controller at Rivus, commented.

This is according to findings from data and analytics company GlobalData, which projects a compound annual growth rate (CAGR) of 3.54% for the market from now to 2027.

According to the company’s report Switchgears for Power Transmission, Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast, 2022–2027, while the market has been seen growth across regions, market drivers are context-specific.

For example, states the report, within the growing economies of the Asia-Pacific and Middle East (EMEA) regions, the market’s growth is being propelled by the increasing demand for electricity, with capacity addition in the generation and transmission sectors.

On the other hand, in the Americas and Europe, the report finds the replacement of ageing grid infrastructure, the shift to renewable energy, grid reliability issues, improved policy and investment decisions, as well as technology innovations as key factors.

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EMEA

Overall, states GlobalData, the EMEA region was found to be the leader in the market in 2022, with a share of 44.60% and a forecast to grow to 48.24% by 2027, higher than the growth expected in all other regions.

According to GlobalData, the high voltage (HV) switchgear market in the EMEA region was estimated to be $11.16 billion in 2022 and is projected to reach $14.63 billion, registering a CAGR of 5.03% over 2023-27.

An additional driver, states the research, was an observed economic boom for Middle Eastern countries, leading to an increased demand for power.

Commenting on the report’s findings was GlobalData senior power analyst Bhavana Sri Pullagura, who stated how “the growing demand for electricity is giving rise to the need for new power plants, particularly those modes of generation that have minimal impact on the environment.”

With this, stated Pullagura, countries have started looking towards eliminating barriers to deployment of renewable technologies and gas-based generation.

“The falling capital cost and low gas prices also resulted in increased development of renewables and gas power plants. This contributed to the growth of the switchgear market, which is expected to continue as countries seek to increase the share of renewables and gas in their generation mix.”

Asia-Pacific

According to the report, in 2022, Asia-Pacific’s market value stood at $10.77 billion, accounting for a share of 43.05% in the global HV switchgear market. The HV switchgear market in the Americas is expected to reach $3.11 billion by 2027, as the grid requires upgrades to replace aging assets and to accommodate the increasing sources of renewable energy.

China, one of the fastest-growing economies with the largest fleet of transmission substations, topped the report’s global HV switchgear market in 2022 with a value of $7.73 billion, accounting for a 30.0% share. The country is expected to continue its leadership during the forecast period, reaching $9.19 billion in 2027.

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Bhavana Sri added: “The need to build transmission infrastructure to deliver power from renewable sources in remote regions, the increasing domestic demand for electricity, large-scale renewable energy deployment, the projected growth in the gross domestic product and rural electrification initiatives are some of the major factors aiding the growth of its HV switchgear market in China.

“The country is the world leader in ultra-high-voltage transmission, having made considerable investments in the development of transmission systems of voltage level of 765kv and above.”

The other major countries in the Asia-Pacific gas-insulated switchgear market, states GlobalData’s research, include India and Japan. India ranks third after China and the US in the global HV switchgear market, with a value of $1.15 billion in 2022 and a share of 4.60%.

“GlobalData believes that policies established to address environmental challenges and capitalise on market opportunities offered by technologies would notably impact the switchgear market by the end of the forecast period,” states Bhavana Sri.

The retrofit, which encompasses electricity, gas and water meters, is aimed to enable remote meter reading in the diverse environments around the capital Jakarta.

There the meters are in locations including inside private apartments, residential areas, industrial water utilities and shopping malls, which has resulted in meter reading being both challenging and expensive.

Chen Deyu, CEO at Sindcon, says ST Microelectronics’ STM32WLE5 LoRaWAN wireless microcontroller was selected “for its high integration benefits to our customers and because it enhances performance, size, security and power consumption.”

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The STM32WLE5 wireless MCU is a sub-GHz wireless microcontroller featuring an Arm Cortex-M4 core operating at 48MHz.

The MCU contains 256kb of Flash memory, 64kb of SRAM, LoRa modulation, and AES 256-bit encryption.

With the STM32WLE5, Sindcon’s retrofitted meters contain an advanced battery management system that can support accurate remote readings for up to 10 years.

The project is Sindcon’s first deployment in Indonesia using the STM32WLE5CC wireless MCU and is expected to be completed by the end of 2023.

Sindcon is involved in several LoRaWAN smart meter installations in Indonesia.

Over the past five years, the company has installed more than 1,000 LoRaWAN smart gas meters for restaurants and other commercial customers in more than 20 shopping malls in the country.

A recently reported new customer is Indonesia KFC, which has adopted Sindcon’s gas meter technology.

In another project, Sindcon has partnered with IoT solution provider IoT Kreasi Indonesia on prepaid gas metering in Jakarta for the country’s state-owned gas transmission and distribution company PGN Group – believed to be a first in Southeast Asia.

In the first phase, some 2,000 LoRaWAN prepaid gas meters have been deployed in collaboration with Chint, whose G1.6 model gas meter has been re-engineered to offer prepayment and LoRaWAN wireless data transmission.

Sindcon also has partnered with IoT Kreasi Indonesia on Semtech LoRa and LoRaWAN based smart electricity and water meter deployments in multi-tenant residential buildings.

The two new centres are a Renewable Energy Forecast Centre and a Demand Response Control Centre, both situated within EGAT’s headquarters in Nonthaburi, close to Bangkok.

They also are intended as prototypes for regional centres at the five regional grid control centres, while a further eleven renewable energy forecast centres are being planned at EGAT substations in areas with potential for renewable energy development.

“The centres will support the additional 8,000MW renewable energy integrated into the generation mix as well as renewable energy power plants of very small power producers, which may impact the control and stability of the country’s power system,” commented Kitti Petchsantad, Deputy Governor – Transmission System at EGAT.

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The implementation of the centres forms two key pillars of Thailand’s smart grid development in the period 2022-2031.

The Renewable Energy Forecast Centre is directed at predicting electricity generation from renewable and clean energy, including wind and solar energy operated by small power producers.

The forecasts are then incorporated with the plan for electricity generation of other fuel-based power plants to ensure that the power system can handle fluctuations and uncertainties of electricity generated from renewable energy.

The Demand Response Control Centre serves as the control centre for reducing electricity consumption via a load aggregator, which manages the demand response of large power users.

Currently, the Centre is being operated in the pilot phase with a reduced load of 50MW and with the Metropolitan Electricity Authority and the Provincial Electricity Authority serving as the load aggregators.

In the future when the load aggregator role is open to private agencies, the new energy business will emerge with all aggregators operating under the Centre.

In other activities in Thailand, EGAT has opened in Mae Hong Son Province, where a smart grid pilot is underway, a new public centre to enable locals and visitors to learn more about the energy system and smart grids.

The pilot has included the implementation of a grid-connected solar PV and battery energy storage system among other technologies.

Superfast charging LFP batteries for EVs

A 10 minute charge providing a driving range of 400km and a full charge delivering 700km?

That would satisfy most EV drivers and eliminate range anxiety – and it is claimed to be coming with Chinese battery manufacturing company CATL’s new lithium iron phosphate (LFP) battery named ‘Shenxing’.

CATL reports leveraging the super-electronic network cathode technology and fully nano-crystallized LFP cathode material to create a super-electronic network, which facilitates the extraction of lithium ions and the rapid response to charging signals.

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Its latest second-generation fast ion ring technology is used to modify the properties of graphite surface, which increases intercalation channels and shortens the intercalation distance for lithium ions, creating an expressway for current conduction.

A new superconducting electrolyte formula, which effectively reduces the viscosity of the electrolyte, resulting in improved conductivity, also has been developed.

Other improvements include reduced resistance of lithium-ion movement, while cell temperature control technology ensures that cells heat up to the optimal operating temperature range rapidly, allowing a 0-80% charge in just 30 minutes in temperature as low as -10°C.

CATL anticipates that mass production of Shenxing will be achieved before year-end and the first vehicles with the battery will be available on the market in the first quarter of next year.

Improving Bitcoin mining efficiency

With Bitcoin mining notoriously energy intensive and miners rushing to adopt greener and more sustainable operations, another alternative, which is being pursued by the London-based Quantum Blockchain Technologies, is to improve the efficiency of the mining itself and thus in turn its energy consumption.

The company’s ‘Method A’, unlike the standard approach of running as many hashes as possible within the available period, decides at the beginning of each block hashing whether to hash using a traditional search or a spaced confined search, with testing demonstrating an approximately 10% in mining speed.

But its ‘Method B’, for which a patent application was recently filed, is even more efficient, based on partial pre-computation on upcoming blocks prior to the current one being closed and guiding the search by deciding where the most promising winning hashes are likely to be found.

With this approach, the number of logic gates on the chip is reduced and the processing of a large number of hashes is avoided to obtain the results in less time.

In this case, there should be a 2.6x improvement in the ability to find a winning hash, compared to standard search, while saving up to 4.3% of energy.

However, its implementation requires a new architecture and the design of a new mining chip.

Setting sail with ‘Windwings’

Mitsubishi Corporation’s ‘Pyxis Ocean’, a 229m long bulk carrier vessel on charter to the global food giant Cargill, has become the first to be fitted with a novel wind propulsion system that could be key for the decarbonisation of shipping.

The two ‘Windwings’, which were designed by BAR Technologies in the EU Horizon 2020 supported initiative, are large wing sails measuring up to 37,5m in height with a 10m wide central component and front and rear 5m wide flaps that can be fitted to the deck of cargo ships, both new and as a retrofit, to harness the power of the wind.

The windwings can rotate and also pivot, right down to deck level, to allow for the differing wind angles and speeds.

With this wind assist, the windwings are expected to deliver average fuel savings of up to 30%.

The ‘Pyxis Ocean’ is currently on its maiden voyage with the windwings from Shanghai, where they were fitted, to Paranagua in Brazil with their performance being closely monitored to further improve their design and operation.

Hundreds of wings are planned to be built over the next few years and BAR Technologies is also researching new builds with improved hydrodynamic hull forms.

Also on the radar are two further acquisitions: that of a Chinese EV manufacturer by a Dubai-based tech company, as well as of a grids-focused advisory company by a US-based global consultancy.

SMS acquires heat pump division for flexibility services

The Scottish smart metering company has announced the acquisition of Evergreen Energy’s domestic services division, which specialises in the installation and maintenance of renewable energy assets, including heat pumps, solar and battery storage for homeowners.

According to SMS, the acquisition will enhance their capacity to deliver an extended range of low-carbon, behind-the-meter energy solutions to the UK’s domestic and commercial marketplaces.

The company, which earlier this year pointed to their flagship smart meter services and storage portfolios as key profit areas, is calling the acquisition “highly complementary to SMS’s leading role in the delivery of Great Britain’s smart meter programme, owning and managing c.4.5 million meter and data assets for customers,” they state in a press release.

Heat pumps are a key clean tech asset for enabling demand side response, which is gaining attraction in the UK as a method of alleviating peak demand on the country’s grid system.

The acquisition is thus hoped to deliver associated data solutions and demand flexibility services to energy suppliers, businesses and consumers.

Earlier this year in February, SMS announced a demand side response project, part of the UK Government’s Flexibility Innovation Programme, to design and deliver testing schemes for flexibility applications.

Earlier this week, UK market research company Cornwall Insight released research illustrating the crucial element smart meters represent for flexibility services, which have exponential savings potential, should households participate.

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SMS’s acquisition follows other strategic investments made last year in EV charge point software company, Clenergy EV, and of smart energy data platform, n3rgy, which similarly bolstered SMS’s presence in the EV charging infrastructure and data services markets.

Evergreen Energy’s other divisions, including the Homely and Easy MCS brands are not included in the transaction and will operate independently from the Evergreen Energy brand going forward.

Stated SMS CEO Tim Mortlock: “Whilst we will continue to operate the Evergreen Energy brand that has been successfully established within the northwest, the acquisition will bolster the Group’s overall capacity to deliver these carbon reduction assets on a wider national scale to a fast-growing domestic and commercial marketplace.

“The location of Evergreen’s Manchester base close to our national training academy and innovation centre in Bolton, where we are focussed on upskilling our engineering workforce and testing new technologies, will also be highly beneficial.”

A Middle Eastern acquisition of Chinese EV manufacturing

Dubai-headquartered mobility tech company NWTN has reached an agreement to make a strategic investment of $500 million in China Evergrande New Energy Vehicle Group (EVGRF), a Chinese automobile manufacturer that specialises in developing EVs, aiming to accelerate the company’s position in the EV space.

NWTN and EVGRF entered into a share subscription agreement pursuant to which NWTN will acquire approximately 27.50% of shares of EVGRF alongside the right to nominate a majority of EVGRF’s board.

The proposed transaction is expected to close in Q4 2023, subject to customary and other closing conditions.

NWTN, a mobility and green energy company, has a full vehicle assembly facility in Abu Dhabi. Technologically, the company has expanded its capabilities to include PV generation, green hydrogen production and energy storage.

The strategic acquisition forms part of the company’s continuing expansion, vying in growing markets in the Middle East, North Africa, China and other countries.

NWTN states an emphasis for their business on the use of AI technologies, autonomous driving and personalised passenger experience as key to its market positioning.

The company believes a partnership with EVGRF will be instrumental in addressing the EV needs of the Middle East and will facilitate EVGRF’s research and development and mass production of new car models for eventual export overseas.

According to Reuters, the deal forms part of a $3.2 billion plan unveiled by Evergrande to reduce its debt and stay afloat.

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Consultancy’s acquisition to reinforce grid expertise

US-based ICF, a global consulting and tech services provider, has acquired CMY Solutions, a power and energy engineering firm that advises on decision-making for grid modernisation, programmes and investments.

Founded in 2016, CMY’s team of 50 specialised experts advise senior leaders of utilities and developers across the US, Europe and Asia, including investor-owned utilities, electric municipalities and electric cooperatives.

ICF on the other hand consists of approximately 9,000 employees, consisting of business analysts and policy specialists who work alongside digital strategists, data scientists and creatives in the public and private sectors.

The acquisition brings to ICF strong backgrounds in renewable energy integration, distributed energy resources (DER) impact studies and management.

Additionally, CMY brings “deep technical expertise in substation, transmission and distribution system design, protection and control, North American Electric Reliability Corporation (NERC) compliance, as well as system planning and capital strategy consulting,” states ICF in a press release announcing the acquisition.

Commenting on the acquisition was John Wasson, ICF chair and CEO, who stated how the deal will “strengthen our ability to support utilities’ needs for grid transformation, reliability, resilience and renewables integration in a much more holistic way.

“As one team, we will scale our industry-leading energy service offerings and continue to grow our rapidly expanding technology and data management capabilities across the various markets we serve.”

Acquisitions have been key in this week’s Smart Energy Finances with smart metering for flexibility, EV manufacturing and grid modernisation expertise for consulting all seen driving strategic corporate moves.

What are your thoughts? What have you seen as having a large influence on decision-making when it comes to acquisitions in the energy sector and what would you like me to cover?

Let me know.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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The V2G self-consumption station is operational within Qilian Mountain National Park’s long-term national research base, providing continuous support for ecological patrols and clean, low-carbon energy utilisation within the park.

According to NIO in a press release, the system marks the first global photovoltaic self-consumption system with V2G (vehicle to grid), composed of photovoltaic power stations, bidirectional V2G charging piles and all-electric vehicles.

V2G systems allow EVs to serve as distributed mobile energy units, charging during low-demand periods and supplying power during peak times.

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The technology, through the deployment of source-network-storage-load, states NIO, achieves local self-production and self-marketing of green energy and minimises the impact on the external environment.

V2G bidirectional charging piles offer EV charging services; with the reverse discharge function, surplus vehicle-stored energy is supplied back to the grid for nighttime or emergency use within the park.

Photovoltaic power energises the system, with an annual average output of about 690,000kWh, fully covering the EV energy consumption within the park.

Surplus energy can cater to over 50% of other power needs, resulting in an estimated annual carbon reduction of around 55 tonnes.

Clean Parks initiative

NIO and WWF previously collaborated together to support the ecological construction of Northeast China Tiger and Leopard National Park, as well as Giant Panda National Park, and became strategic partners of the Clean Parks ecological co-conservation plan in April 2022.

The V2G announcement marks the commencement of the third phase of the Clean Parks and WWF ecological co-conservation programme.

The self-consumption facilities were established by Clean Parks in collaboration with NIO, Astronergy and One Earth Nature Foundation in Qilian Mountain National Park, China, on the eve of the Second National Park Forum, under the coordination of the Qinghai Forestry and Grassland Bureau and the WWF.

DEWA files 3D printing patent

Dubai Electricity and Water Authority (DEWA)’s Research and Development Centre is something of a pioneer with 3D printing and has just filed a new patent for an innovative build plate and method to detach 3D printed objects automatically.

This is intended to improve the performance of 3D printers by easing the removal of 3D printed objects during the printing process and thereby making it feasible to have a continuous 3D printing operation.

The invention supports DEWA’s intensive efforts to develop advanced infrastructure and specialised software in 3D printing and additive manufacturing, and invest in them to overcome challenges in the energy sector, according to the utility.

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HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, says that the utility supports Dubai’s endeavours to become the global hub for 3D printing by finding innovative solutions and technologies that modernise the manufacture of spare parts in its business.

“We adopt 3D printing as an innovative solution for our internal operations to print spare parts for devices and equipment, in addition to extending the lifespan of our equipment,” he says, adding that DEWA is the first organisation in the GCC to apply metal 3D printing technology using threads and wires.

DEWA reports having achieved a Guinness World Records title for its 3D printed laboratory and previously a patent has been registered for an adhesive device for 3D printers, which automatically distributes the adhesive material on the 3D printing plate, to ensure that the printed material sticks adequately to the build plate.

Harnessing the power of quantum for solar energy harvesting

Northeastern University professor Sijia Dong has been awarded a US Department of Energy grant to explore algorithms for simulations on quantum computers that may further the pursuit of renewable energy sources.

Specifically what Dong wants to do is develop quantum algorithms that can enable quantum chemical simulations of macromolecules that may be leveraged for solar energy harvesting and conversion.

“In photosynthesis, a plant can convert solar energy to make sugar, a chemical that can help the plant survive,” says Dong, an assistant professor of chemistry and chemical biology as well as affiliated faculty of physics and chemical engineering at Northeastern.

“If we can do something like this artificially – convert the solar energy into chemical energy to make materials or useful chemicals – that will be very helpful for society.”

To date, Dong and her team have been using traditional digital computers to simulate the photochemistry of macromolecules and materials that could lead to new forms of clean energy.

However, it is a hard problem computationally and if the simulations can be carried over to a quantum computer, that should greatly accelerate the capability of developing such molecules and materials.

A Samsung Galaxy Ring

This column doesn’t normally cover rumours, but those about Samsung mobile products tend to be quite reliable so we have no hesitation in reporting the likely release of a Samsung Galaxy Ring.

Why a Galaxy Ring is of interest is because early patents indicate that it has potential for smart home integration and to control connected devices.

What we know so far is that a smart ring is almost certainly under development with a possible launch in 2024.

Based on the patents filed, other possible integrations include health tracking, such as heart rate and temperature monitoring, and coupled with XR glasses, finger and hand tracking in XR applications based on their positional information.

The concept of a connected ring isn’t new and the Oura ring as a fitness monitor has been around since 2015.

For Samsung, it would mark the company’s continuous evolution in the wearables market as an adjunct to its mobiles, while potentially providing a significant step up in convenience for smart home enthusiasts.

This is according to the IEA’s Facilitating Decarbonisation in Emerging Economies Through Smart Charging report, which looks at how decarbonisation can be facilitated through smart charging.

According to the report, although there are several requirements for smart charging to take place, the power sector has a unique role that can’t be overlooked, namely in establishing the foundations of how EVs can be used as a resource.

The potential of smart charging on the power system lies largely in its potency as a flexible asset, states the report, enabling widespread renewable penetration and consumption management.

EV proliferation

According to the report, while most of the uptake of EVs is found in the US, Europe and China, EVs are also starting to penetrate markets in emerging economies.

Electric two- and three-wheelers are more common in Asia, with sales of electric three-wheelers constituting 46% of total three-wheeler sales in the fiscal year of 2022. Meanwhile, electric buses are gaining ground in Latin America, where most have reached cost parity with diesel buses.

These trends are likely to continue as these economies set more adoption targets for the end of the decade.

However, to accommodate the increasing uptake, the necessary charging infrastructure will be needed to coordinate the increasing electric load coming onto the grid.

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While the energy required by EVs is low compared with typical daily electricity consumption, the IEA states how ensuring enough grid capacity will be the more important parameter given the high-power requirements that the charging process can take.

Charging of two- and three-wheelers may not lead to significant increases in peak load until a high level of penetration, whereas charging of buses will raise peak load and often require dedicated transformers.

The role of smart charging

This, states the IEA, is where smart charging needs to be more widely adopted, as it provides an avenue of integrating the EV into the power system where the charging process can be adjusted to be in line with power system objectives.

Said objectives could be voltage regulation and reduction of local peak in the distribution grid, or frequency regulation and energy arbitrage in the bulk energy system.

Smart charging of EV fleets can provide a good source of power system flexibility, increasing the uptake of renewables while maintaining power system stability.

However, for smart charging to be coordinated optimally and support the system, it needs to be able to adjust in response to system signals.

States the report: “The faster the EVs can react, the more services it can provide. Such high levels of coordination can happen only through digitalisation.

“With the help of telecommunications and connectivity, smart charging service providers can exist to help serve as intermediaries to balance the needs of the EV users, charge point operators and power systems.”

Power system measures missing

According to the report, the main signals which can serve as rewards or sources of value for EV users and smart charging service providers are:

• Differentiated tariffs: Tariffs which vary rates based on time of day to incentivise the behaviour of EV users about when to charge their cars

• Procurement of local flexibility: Distribution grid operators enter into contracts with aggregators or charging service providers to manipulate the charging process to achieve local needs.

• Wholesale energy market access: Whereby vehicles can participate in changing the supply-demand curve to lower peak generation and increase renewables consumption.

• Ancillary services market access: Allowing aggregated EVs to respond to system services such as frequency response.

In advanced economies such as California, South Korea, the Netherlands and the UK, each of these power system measures is widespread or in progress, with the exception of procurement of local flexibility in South Korea.

However, for the studied emerging economies, including Brazil, Chile, Colombia, Indonesia, Maharashtra, Morocco, South Africa, Tamil Nadu, Thailand, Tunisia, Uttar Pradesh and Vietnam, the opposite is true.

Differentiated tariffs were found to be the most common measure, although not absent in Colombia and Morocco.

The only other measure found was that of ancillary services in South Africa and in progress in Chile.

Moving forward

According to the IEA’s findings, depending on the degree of EV integration desired by the economy in question, different technological and regulatory frameworks will need to be deployed for the sector to facilitate a fair and efficient smart charging process.

Specifically, they state, the following recommendations are made to establish a smart charging ecosystem:

• Establish a framework for demand response in the power system, which could be implicit via tariff variation or explicit through direct bidding of demand in wholesale and balancing markets.
  
• Ensure standardisation and interoperability; said standards could be set by tying them to charging infrastructure incentives, as a de facto standard based on public tenders, or legislated directly as a regulation
  
• Establish minimum requirements for smart communication and control, thereby ensure future EV uptake will instill the ability to participate in smart charging
  
• Ensure matching with clean electricity, whereby signals to charge could come either from the electricity market through wholesale prices, or from end-consumer electricity prices that reflect the best time to consume clean electricity
  
• Reform the role of distribution operators from passive owners and providers of network capacity into active managers of an interconnected system that can help activate EVs’ full potential

CLP Power has been replacing traditional meters since 2018 to enhance the reliability of power supply in the utility’s operating areas. Installation is expected to complete by 2025.

The smart meters will allow CLP Power customers to view their hourly consumption as recently as four hours ago.

CLP Power stated in a release that this will enable new insights into usage patterns to enable consumption and price reductions.

Since 2020, CLP Power has invited residential customers with smart meters to make slight adjustments to their consumption behaviour and reduce their energy use during peak demand periods.

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950,000 households were invited to join an energy saving event this summer, of which around 70% saved a total of 410,000kWh of electricity over a period of four hours.

Commented CLP Power managing director Joseph Law: “Customers can enjoy digitalised services and energy management solutions made possible by smart meters to optimise their consumption habits, resulting in energy savings and better management of electricity expenses, supporting the Hong Kong SAR Government to achieve carbon neutrality by 2050.

“In recent years, customers with smart meters have used them as an effective tool for energy management and actively participated in energy-saving events that reduce peak electricity demand. We will continue to enhance the customer experience by launching different services to help people adopt a smarter, low-carbon lifestyle.”

CLP Power is a Hong Kong utility subsidiary wholly owned by CLP Holdings Limited. The company operates electricity services for more than six million people in its supply areas.

Commissioning was announced alongside renewables developer Atlas Renewable and telcomm company China Tianying (CNTY).

Located outside of Shanghai in Rudong, Jiangsu Province, China, the 25MW/100MWh EVx GESS is built adjacent to a wind farm and a national grid interconnection site in the hopes of balancing the country’s national energy grid through long duration storage of renewable energy.

Commissioning began in June on the power electronics and what the company calls “new ultra-efficient ‘ribbon’ lifting systems”, they stated in a press release announcing the commissioning.

The system is expected to be fully grid interconnected in Q4 2023 as planned with local state grid authorities, which Energy Vault states will make EVx the world’s first commercial, utility scale non-pumped hydro GESS.

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“Happy to share our continued progress and a critical milestone achieved with our partners Atlas Renewable and China Tianying related to commencement of commissioning activities of the world’s first EVx gravity energy storage system,” said Robert Piconi, chairman and chief executive officer of Energy Vault.

Added Eric Fang, CEO of Atlas Renewable: “We remain focused on an efficient system commissioning process in order to begin storing and dispatching renewable energy to China’s national grid in full alignment with local and state grid authorities.

“This first deployment of Energy Vault’s EVx technology will serve as a model for global decarbonisation technology partnerships, and as we have previously announced, are already working on multi-GWh deployments of Energy Vault’s gravity technology in China to support and ideally accelerate China’s current 30-60 net carbon neutral plans.”

The announcement follows recognition of Energy Vault’s GESS within the National Energy Administration of China’s roster of significant technical equipment projects scheduled for 2023 within the energy sector.

Stated CNTY in a press release on the Administration’s roster: “With the continuous increase in the proportion of new energy installed capacity (…) the high proportion of renewable energy connected to the grid has put forward higher requirements for the power grid’s peak regulation, frequency regulation and consumption capabilities.

“China Tianying’s ‘100MWh complete set of gravity energy storage equipment’ is currently the world’s largest complete set of gravity energy storage equipment. Its basic technical route is to use new energy such as wind and solar power or grid valley and flat power to raise the gravity block to a certain height, so as to convert the electric energy into potential energy for storage.”

According to Energy Vault, the EVx system is expected to have round trip efficiency (RTE) above 80%.

The project, which has been awarded $300 million by the World Bank, will see the prepaid gas meters installed in the capital Dhaka and the Rajshahi Division in the west of the country.

Among these, 1.1 million prepaid meters will be deployed in Greater Dhaka covering just over half of the residential customers of Titas Gas Transmission and Distribution Company Limited.

The balance of 128,000 prepaid meters will be deployed in the Rajshahi division, covering the entire residential customer base of Pashchimanchal Gas Company Limited (PGCL).

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In addition, a pilot with up to about 60 larger industrial users in the two companies’ service areas will be implemented to demonstrate the viability of smart meters to better monitor and manage gas use in the industrial sector.

A Supervisory Control and Data Acquisition (SCADA) and Geographic Information System also will be installed on PGCL’s network to improve gas flow monitoring and help reduce methane leaks and ultimately contribute to a reduction of greenhouse gas emissions.

With all its customers having gas meters, the company will have better visibility on the flows of gas in its networks and report gas losses more accurately and thus be able to better target leakage reduction.

“Bangladesh’s biggest source of greenhouse gas emission comes from the oil and gas sector,” comments Sameh I. Mobarek, World Bank Senior Energy Specialist and Team Leader for the project.

“Prepaid gas meters and advanced monitoring systems will help optimise natural gas end-use, mitigate methane leakages and lead to lower gas bills for the households and industrial users.”

Natural gas accounted for two-thirds of primary energy consumption in Bangladesh in 2021 and over half of the power generation capacity.

Methane leakages in the oil and gas value chain amount to an estimated 257kt, which is roughly equivalent to 7.7Mt of CO2.

The decision to implement prepaid metering follows an earlier pilot of 200,000 prepaid meters conducted by Titas Gas, which was launched in 2015 and found that the system seemed to have successfully increased consumer awareness in combating waste of natural gas, thus creating the potential for savings in residential consumption.

The project will finance technical assistance to detect CO2 and methane emission sources along the natural gas value chain and identify and prioritise opportunities to abate emissions in existing facilities and infrastructure.

It will also help develop emissions monitoring, reporting and verification protocols and regulatory frameworks for sustained carbon abatement in the energy value chain that can then be implemented through investment with public and private climate financing.

Substation automation is a method of using data from intelligent electronic devices to control and automate substations and controlling power systems devices through commands from remote users.

The overall demand for the tech, as forecast by Future Market Insights in Substation Automation Market Snapshot (2023 to 2033), will grow by a CAGR of 6.7% between now and 2032.

The key driver of this market, states the research company, is to reduce human intervention and improve the operating efficiency of the system. Increasing developments in SCADA and communication technologies, along with rising demand for renewable energy projects, are also determinants in the market’s growth.

Smart grid investments

The report outlines how heavy investments within the smart grid space have been developing, indicating the growing recognition of this tech as much needed. Namely, it will help reduce operational as well as maintenance costs, increase plant productivity and ensure high performance, reliability and safety of electrical power network performance.

For instance, in May 2018, they state, Natural Resource Canada announced an investment of $949,000 for a next-generation smart grid project.

The grid project focuses on promoting the adoption of renewable sources of energy and the implementation of technology to integrate new sources of clean energy without compromising the stability and reliability of existing grids.

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Key market players

The North American substation automation market was forecast by the market report to accumulate the highest market share of 36.0% in 2022. On a geographic basis, North America is anticipated to be the largest market for substation automation, owing to the increasing popularity and adoption of advanced intelligent electronic device and communication technologies.

Factors such as increasing investment in energy infrastructure by different governments due to increasing urbanisation and higher energy demand is one of the major factors that is expected to boost this growth over the report’s forecast period.

In addition, increasing dependence on electricity, demand from the power system for advanced technology, requirements to reduce maintenance and operating costs and implementation of government incentives are primary drivers for the country’s market size.

In the Asia Pacific, the market is expected to accumulate a market share of 32.5% this year and is expected to continue to maintain the trend over the forecast period.

The Government of India in particular was found by the research to have launched several schemes to revive power distribution utilities and electrify villages, indicating a strong smart infrastructure vision for the country.

Such rural electrification and the presence of companies bringing in advancements in electrical equipment are expected to strengthen regional growth in the market for the Asia Pacific.

According to the report, in Europe, the market is expected to accumulate a share value of 30% this year. Specifically, the research lists increasing demand for smart grids and increasing adoption of renewable as resulting in major revenue-generating countries across the continent.

Also on the radar are announcements of a ‘resilient’ business model based on smart meter-generated revenue for Smart Metering Systems (SMS), growth financing for a smart meter data analysis provider and a €3 billion ($3.9 billion) scheme for cleantech companies in Germany.

AMI provider Ubiik acquires Mimomax Wireless

Taiwan-based Ubiik, an IoT and Advanced Metering Infrastructure (AMI) provider, has acquired New Zealand-based Mimomax Wireless, a provider of communication solutions for narrowband channels.

The acquisition is being touted as an acceleration of Ubiik’s market expansion.

The new combined entity, which has not yet been named, aims to bring new wireless solutions to market, providing communications for utilities and critical infrastructure.

According to the Taiwanese provider, their current business is on track to exceed 1 million AMI device deployments by 2024, citing the “coverage limitations of existing public LTE networks that impede utilities’ AMI deployments” as the prime challenge they seek a solution towards, the company stated in a joint press release announcing the acquisition.

Since 2007, Mimomax Wireless established itself as a manufacturer of radios utilising Multiple Input, Multiple Output (MIMO) technology.

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The Kiwi company caters to utilities, stakeholders within the energy sectors and governments among others. Their communications solutions, states Mimomax, optimises data throughput and enables near-real-time visibility of critical assets.

Commenting on the announcement was Tienhaw Peng, founder and CEO of Ubiik, who stated how the acquisition “injects additional momentum into our collective growth. In tandem, we’re poised to boost the performance, security and cost-effectiveness of critical networks.”

Ubiik states how the merger will allow for an array of new solutions for mission and business-critical communications. For example, existing US utility customers who have deployed Mimomax products in the narrowband 700MHz Upper Block A can now leverage their spectrum acquisition by adding Ubiik’s goRAN NB-IoT Band 103 as a retrofit.

This opportunity, adds the AMI provider, offers the ability to connect smart meters and IoT devices for “a fraction of the cost of deploying new pLTE infrastructure”.

SMS’s ‘resilient’ smart metering business model

Glasgow-based smart meter and carbon reduction asset developer Smart Metering Systems (SMS) has, within its H1 2023 trading update and outlook report, reported 13.3% revenue growth.

Specifically, the Scottish clean tech company’s Index-linked Annualised Recurring Revenue (ILARR), a referral to revenue generated from meter rental and data contracts, grew from £97.1 million ($125.4 million) at the close of December 2022 to £110 million ($142 million) as of June 30, 2023.

The company’s CEO, Tim Mortlock, commented on the growth, citing the ‘resilience’ of their model:

“We have delivered another strong operational and financial performance during H1 2023, a testament to the resilient nature of our business model which is underpinned by our index-linked recurring revenues.

“Our existing pipeline of meter and grid-scale battery assets is expected to more than double the Group’s EBITDA in c.4 years compared to FY 2022, with significant additional growth opportunities in existing and developing CaRe assets.”

Within the first half of 2023, the company SMS installed 220,000 smart meters and has maintained market share of 14%.

According to the report, their engineering capacity delivered higher volumes of activity, largely driven by transactional callout services alongside a higher proportion of single fuel installations.

The Group also increased its engineering capacity and expects meter installation run-rate to accelerate as a result.

When it comes to financing, the Group claims its current pipeline of smart meters and grid-scale batteries can be fully funded from asset-backed, internally-generated cash flows and debt facilities.

The Group is also considering asset recycling to maintain a “prudent level of gearing in the medium term and to support future growth”, they state in the release.

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Expansion financing for a smart meter data analysis provider

CIBC Innovation Banking has increased its growth financing commitment to Bidgely, a provider of AI-powered energy intelligence solutions for energy providers worldwide.

The additional financing commitment of $18 million – 2020 saw Bidgely secure $8 million from the same company – will strengthen Bidgely’s ability to support critical utility initiatives, namely within the EV and grid modernisation markets.

Bidgely’s UtilityAI analyses smart meter data to provide appliance-level insights into daily energy consumption, giving utilities insights into energy usage patterns and anticipated grid loads.

Bidgely touts its platform’s ability to coordinate accurate grid planning and load forecasting, together with the ability to better manage the influx of EVs on the grid through optimised time of use, load shifting and managed charging.

“Utilities around the world rely on Bidgely’s artificial intelligence-powered energy solution to guide their clients to smart energy decisions,” said Amy Olah, managing director of CIBC Innovation Banking. “Our continued support speaks to Bidgely’s success and our commitment to back innovative software companies across North America throughout their growth journey.”

€3bn for German low-carbon tech – batteries, heat pumps and more

The European Commission has approved a €3 billion ($3.9bn) German scheme under the Temporary Crisis and Transition Framework to support private investments in low-carbon assets for the country’s transition to net zero.

The scheme, touted as in line with the tenets of the proposed Green Deal Industrial Plan, will take the form of direct grants, tax advantages, subsidised interest rates and guarantees on new loans for companies producing low-carbon technologies.

Said companies will include those with business in battery energy storage, heat pumps, electrolysers, wind turbines, solar panel, CCUS and key components needed to produce such tech or related critical raw materials necessary for their production.

The aid will be meted out by 31 December 2025.

For the latest finance and investment news coming out of the energy sector, make sure to follow Smart Energy Finances Weekly.

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Yusuf Latief
Content Producer
Smart Energy International

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The new research facility will create a space for battery-only research within the expanded Institute of Chemical Processes of Seoul National University, spanning three floors at 901m2.

The facility will consist of seven laboratories and conference rooms for battery development, analysis, measurement and process.

A memorandum of understanding on the Center was signed between the partners in November 2021.

Seoul National University’s first EV battery research facility

This is the first time, states Hyundai, that a research facility specialising in electric vehicle (EV) batteries has been built within Seoul National University.

With the opening of the Joint Battery Research Center, Hyundai Group will work with battery experts in South Korea to lay the groundwork for research and development of battery-related technologies.

The Joint Battery Research Center aims to focus on advanced research into leading next-generation battery technologies that can dramatically increase EV driving distance and shorten charging time, as well as research on battery condition monitoring technology and innovative process technology.

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A total of 22 joint research projects will be carried out in four divisions, including lithium metal batteries, solid-state batteries, battery management systems (BMS) and battery process technology.

Twenty-one professors, master’s and doctorate-level talents from South Korean universities will participate in the research. Fourteen of the 22 research projects will be related to lithium metal and solid-state batteries, focusing their core capabilities on developing next-generation batteries.

In the field of lithium metal batteries, research will be conducted on high-durability lithium-electrolyte material element technology and shape analysis to minimise deterioration, while in the field of solid-state batteries, research will be conducted on sulfide-based anode materials, electrode/electrolyte coating methods and ultra-high energy density cathode active materials.

From theory to application

Stemming from the industry-academia collaboration, a key feature for the facility will be to focus equally on research considering mass production as for theory.

To that end, the Joint Battery Research Center has the same level of research infrastructure as the equipment applied to the Hyundai Motor and Kia R&D Centers, states Hyundai Group, such as precision battery analysis equipment, high-precision rheometers, cell manufacturing equipment, and impedance measuring devices, so that the university’s research results can be quickly applied to products.

Researchers from Hyundai Motor and Kia will be dispatched to the Center to participate as members of the joint research team.

Through consultations and seminars on battery technology, insights and development directions will be discussed, alongside a consultative body that will be formed regularly to share information on global battery industry trends and results.

Hyundai Group will have a support system to help the Joint Battery Research Center secure capabilities to develop next-generation batteries. To support research activities, the Group will invest over KRW30 billion ($23.5 million) by 2030. The investment includes the establishment of the Center and the preparation of experimental equipment.

The Group has appointed Professor Jang Wook Choi (최장욱), an expert in battery science, as the head of the Joint Battery Research Center. Professor Choi will oversee the overall research projects and management of technology development.

According to the Group, Hyundai Motor will invest KRW9.5 trillion ($74.4 billion) over the next 10 years to improve battery performance, develop next-generation batteries and build infrastructure.

Also on the radar is capital commitments for a Danish renewables fund held by Copenhagen Infrastructure Partners, which they claim place it on track to being the biggest of its kind globally, as well as the EIB’s raised support package to REPowerEU of up to €45 billion.

Enel sells part of Australian operations

Italian green energy major Enel, acting through its fully-owned subsidiary Enel Green Power (EGP), has signed an agreement with Japan-based INPEX Corporation, for the sale of 50% of the Group’s activities in Australia, namely Enel Green Power Australia and Enel Green Power Australia Trust.

The sale of the two entities, which are currently wholly owned by EGP, went for approximately €400 million ($449 million) enterprise value, €140 million ($157.2 million) of which is in debt.

Upon closing, EGP and INPEX are expected to jointly control EGPA, overseeing the company’s renewable generation portfolio and continuing to develop its project pipeline of wind, solar, storage and hybrid projects.

The overall transaction is expected to generate a positive impact of €87 million ($97.7 million) on the 2023 Group’s ordinary and reported EBITDA.

Moreover, the deal is expected to generate a positive effect on the Group’s consolidated net debt of approximately €145 million ($162.8 million).

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The sale marks the latest from the Enel Group to consolidate its debt: October 2022 saw the Group divest 50% stake in US-based Gridspertise and launch a set of sustainability-linked bonds worth €4.1 billion ($4 billion); March this year saw them sell all equity stakes in its Romanian operations to Greece’s Public Power Corporation.

EGPA operates 3 plants totalling 310MW of installed gross capacity powered by solar as well as one 76MW wind project under construction and one 93MW solar project in execution.

EGPA is also developing a significant portfolio of wind, solar, storage and hybrid projects across Australia.

The sale marks a continued entry into the renewables scene for Inpex, a Tokyo headquartered oil and gas giant – the largest exploration and production company in Japan –  that has recently announced clean hydrogen and ammonia projects, which they claim as a first for Japan.

€5.6 billion for Copenhagen Infrastructure’s fifth fund

Copenhagen Infrastructure Partners (CIP) has reached first close on its fifth flagship fund – Copenhagen Infrastructure V (CI V) – at €5.6 billion ($6.3 billion) in capital commitments received.

According to the Danish CIP, which specialises in renewable infrastructure investments  – the commitment place CI V on path to reach its target of €12 billion ($13.4 billion), becoming what the company claims the “world’s largest dedicated greenfield renewable energy fund” they state in a press release.

A large group of institutional investors across continental Europe, the Nordics, the UK, North America and the Asia-Pacific region participated in the first close of CI V.

The investment strategy, states CIP, is a continuation of CIP’s predecessor flagship funds CI I, CI II, CI III, and CI IV, applying a repeated approach where projects are entered early and de-risked and optimised prior to the start of construction to capture an attractive greenfield premium.

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The fund will focus on greenfield investments – a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operations from the ground up.

CPI’s fund will focus on such investments specifically within large-scale renewable energy infrastructure.

According to CIP, the fund has a global reach and intends to diversify investments across technologies such as offshore & onshore wind, energy storage and solar in low-risk OECD countries in North America, Western Europe and Asia Pacific.

At this first close, the Fund has ownership of more than 40 renewable energy infrastructure projects with a total potential commitment of approximately €20 billion ($22.4 billion), corresponding to more than 150% of the target fund size.

#ICYMI: EIB boosts REPowerEU support package to €45 billion

The EIB’s Board of Directors has decided to raise the additional funds earmarked for projects aligned with REPowerEU – a plan designed to end Europe’s dependence on fossil-fuel imports – from the initial €30 billion ($33.5 billion) package announced in October 2022 to €45 billion ($50.2 billion).

The decision was made at the EIB Group’s July meeting in Luxembourg.

The new funding marks a fresh record for the Group, expanding its support to the build-up of manufacturing capacity for strategic net-zero technologies and products.

Projects eligible for financing include renewables, energy storage, grids and energy efficiency, as well as electric vehicle charging infrastructure – Read more.

Make sure to follow Smart Energy Finances for the latest in finance and investment news coming from the energy sector.

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Yusuf Latief
Smart Energy International

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In its first annual market review, the International Energy Agency (IEA) has noted a significant surge in planned clean tech projects, leading to a 30% rise in investments centred around developing critical minerals in 2022. And the supply might be able to meet the demand.

The market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies key to the clean energy transition has doubled in size over the past five years, according to the report which was released today.

The first annual IEA Critical Minerals Market Review, released alongside a new online data explorer, shows that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper.

Over the last five years, finds the Agency, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt and a 40% rise in demand for nickel.

The market for energy transition minerals reached $320 billion in 2022, they added, and is set for continued rapid growth.

During the review’s release, IEA executive director Fatih Birol commented: “A secure and affordable clean energy transition will be critically hinging on the availability of critical minerals around the world.

“The market response, increasing investments, is an important signal that the markets are buying into [the energy transition], that the clean energy transition will be faster in the years to come and that we will need more critical minerals.”

Birol elaborated on worries that were expressed within the report, namely on diversification, specifically around the refining segment that continues to be dominated by China, as well as the emission intensity of production, which has been increasing.

Increasing investments

According to the report, investments in critical mineral development rose 30% last year, following a 20% increase in 2021. Among the different minerals, lithium saw the sharpest increase in investment with a jump of 50%, followed by copper and nickel.

The report finds that, should all planned critical mineral projects worldwide be realised, supply could be sufficient to support the national climate pledges announced by governments. However, the risk of project delays and technology-specific shortfalls leaves little room for complacency about the adequacy of supply.

More projects would in any case be needed by 2030 in a scenario that limits global warming to 1.5 °C.

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Earlier this year the IEA released a report on supply chains, finding diversity of supply as a critical concern – a finding that remains with the market review, which finds many new project announcements coming from already dominant countries.

Compared to three years ago, they stated, the share of the top three critical mineral producers in 2022 either remained unchanged or increased further, especially for nickel and cobalt.

Data explorer

Accompanying the announcement of the review is the new IEA Critical Minerals Data Explorer, an open interactive online tool that allows users to access and navigate the IEA’s data and projections for critical minerals.

In this first version, the tool provides users with access to the IEA’s demand projections under various scenarios and technology trends. Supply-side information will be added in future updates.

This is according to the WEF’s report Fostering Effective Energy Transition 2023, which finds that equity is being side-lined as countries continue shifting their focus to energy security.

States the report: “The window of opportunity for the energy transition is closing fast. The limited number of countries simultaneously advancing across all aspects of the energy triangle highlights the challenges that countries face in progressing along their energy transition pathways.”

The report, published in collaboration with Accenture, draws on the Energy Transition Index (ETI).

This year’s WEF report used an updated framework to benchmark 120 countries in the trilemma triangle of equity, energy security and environmental sustainability; as well as the readiness of the enabling environment for the energy transition.

Muqsit Ashraf, senior managing director and global strategy lead for Accenture, commented on the report’s findings: “The window of opportunity for reaching net-zero targets is closing and countries must move urgently to cleaner energy systems. Leveraging technology – both physical and digital, including data and AI – will be essential.

“By pushing the boundaries of disruptive technologies, like generative AI, countries and companies can realize what was previously thought impossible and simultaneously bolster not just sustainability but also better enable energy security and affordability.”

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ETI rankings

Over the past decade, states the report, global ETI scores have improved by 10%, supported by an increase of 19% in transition readiness scores, but only a 6% increase in system performance scores.

According to report, Nordic countries, including Sweden, Denmark, Norway and Finland, continue to maintain their top ETI rankings, scoring highly on both system performance and transition readiness.

Despite their diverse energy system structures, states the report, the countries share common attributes. These include high levels of political commitment and stable regulatory frameworks, investments in research and development, increased renewable energy deployment and carbon pricing schemes to incentivise investments in low-carbon solutions.

A few countries, such as Kenya and Azerbaijan, jumped significantly in rank this year for making aggressive efforts and improving their regulatory environment and infrastructure.

Importantly, adds the report, in the last decade the world’s largest energy consumer, China, gained 43% – approximately double the global average – in its transition readiness scores, making its way into the top 20 as the only Asian country.

An equitable window is closing

However, only two countries – India and Singapore – were found to be making advances on all aspects of energy system performance. Broadly speaking, ETI scores have plateaued in the past three years; the WEF warns that this speed of transition is not sufficient to meet the Paris Agreement targets in an inclusive and secure way.

Geopolitical and macroeconomic volatilities that prompted the recent global energy crisis, they cite, have shifted countries’ focus to maintaining secure and stable energy supply at the expense of universal affordability and challenge progress observed in the past decade.

ETI scores declined for approximately 50% of the countries in the past year, which has disproportionately impacted vulnerable consumers, small businesses and developing economies, finds the report.

“The recent turbulence in energy markets has exposed how interconnected energy prices are with macroeconomic and social stability. This can, and has, put developing countries at risk of losing their momentum gained before the energy crisis on access to affordable, sustainable energy,” said Roberto Bocca, head of energy, materials and infrastructure for the World Economic Forum.

“It further demonstrates the importance of balancing improvements in energy security, sustainability and equity – at the same time – to enable an effective energy transition.”

High fuel prices, the report adds, have affected the cost-competitiveness of energy intensive industries, and the rising subsidy burden poses a risk to economic growth.

Additionally, low-income countries have been disproportionately affected, facing simultaneous challenges from fuel price inflation, food inflation and rising debt burden.

The WEF report states that, while performance on environmental sustainability has grown the fastest and countries are prioritizing energy security after lessons from the energy crisis, inclusiveness and equity considerations need to be addressed for a robust and resilient transition.

Mass production in the factory is already underway with a capacity of 2.4GWh per year presently online.

According to Rondo, a California-based energy solutions developer, refractory brick has been used for centuries for industrial heat storage and is made of Earth’s most abundant elements: oxygen, silicon and aluminium.

Rondo’s heat battery stores electric power as high-temperature heat in such refractory brick, they add, without using combustibles, critical minerals, toxics or liquids.

Thermal radiation warms the bricks at temperatures up to 1,500°C, storing heat. Thousands of tonnes of brick are heated directly by this thermal radiation, storing energy for hours or days, states Rondo.

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The battery storage solution was designed to integrate into existing facilities or new-builds, providing a solution for intermittency, when renewable energy isn’t available.

The refractory brick is produced for Siam Cement Group through their subsidiary, Thailand-based Siam Refractory Industry Company.

Announcing the expansion in a press release, Rondo CEO John O’Donnell commented on how “decarbonizing industrial heat is a trillion-dollar market requiring far more storage than the electric grid. The technology is here now. The demand is here now. This planned expansion means that the capacity is here now as well.”

Industry uses more energy than any other part of the world economy, and most industrial energy is used as heat.

According to Rondo, industrial heat, considered a ‘difficult to decarbonize’ area, consumes a quarter of total world energy and today releases a quarter of the world’s CO2.

The 90GWh of planned capacity from the battery factory will result in 12 million tonnes of CO2 savings annually, equivalent to removing over 4 million internal combustion engine vehicles from the road each year.

The new meters come courtesy of a recently announced partnership between the energy monitoring tech developer Sense and EDMI, a smart metering solutions provider and the largest meter supplier in Australia.

The partnership sees Sense’s real time home intelligence software running on EDMI meters, which will bring intelligence to the grid edge.

According to the collaborators in a press release announcing their partnership, these will be the first smart meters in the Asia Pacific (APAC) and Europe, the Middle East and Africa (EMEA) regions capable of sampling data at one million times a second (1MHz).

The new resolution is hoped to enable more efficient identification and localisation of grid faults, enhanced device detection and expanded margins for utilities.

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Networks, they add, will benefit from real time grid edge insight (e.g. power quality) and the ability to identify and locate problems on the grid such as vegetation brush and corrosion.

Additionally, they state, retailers will be able to offer new services and energy insights to their customers, access domestic flexibility at scale, coordinate power management across the home and improve their power purchasing with detailed forecasting.

Commenting on the announcement was Michael Jary, Sense’s APAC & EMEA managing director, who stated that the tech will be able to enable load reductions and how, in Australia, “implementing Sense on smart meters would be the equivalent of adding 2.4GW to peak capacity – that’s as much as three coal power stations.

“We’re delighted to be partnering with EDMI, one of the leading smart meter manufacturers in the world, to bring this technology to more homes.”

A USTDA study will develop implementation plans for smart grid pilot projects with Dhaka Power Distribution Company and Power Grid Company of Bangladesh.

Power Cell selected Massachusetts-based Boston Consulting Group to carry out the assistance.

It will also recommend three smart grid investment priorities to benefit the entirety of Bangladesh’s transmission and distribution grid, as well as develop a training strategy to enable utilities to successfully operate and manage their smart grid technologies.

These priorities are based on the recommendations of Power Cell’s 10-year smart grid technology roadmap, which USTDA funded in 2022.

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“USTDA’s assistance will support the creation of a more efficient and dynamic power grid that will facilitate the integration of renewable energy sources and strengthen the delivery of electricity to the people of Bangladesh,” said Enoh T. Ebong, USTDA’s director.

“Our partnership with Power Cell will enable Bangladesh to decide the most appropriate path and technologies for its smart grid infrastructure development. US companies are world leaders in this sector and will be eager to partner with Bangladesh on its priorities.”

“The first phase of this project showed us a path towards implementation of smart grid in Bangladesh power sector and identified the gaps in our system,” added Mohammad Hossain, director general of Power Cell.

According to Al Jazeerah reportage earlier this week, Bangladesh’s power grid has been facing the possibility of further power cuts due to high demand spurred by a fuel shortage.

The country has been experiencing erratic weather, such as a cyclone in April, which caused energy cuts and shutdown of power plants.

Commenting on the grant was Helen LaFave, deputy chief of mission of the US Embassy in Dhaka, Bangladesh, during a virtual signing ceremony. “We all understand that renewable resources are the key for energy transition for Bangladesh, for South Asia and for the world…This grant will help Bangladesh prepare for its energy transition and prepare to integrate more intermittent energy resources into its national grid.”

In the event with the theme “Readiness of the Indonesian Electricity Sector in Achieving the NDC 2030 Target Through the Development of Renewable Energy”, MKI also inaugurated the 78th National Electricity Day as well as announced the collaborated program with Enlit Asia 2023 event which will be held on 14-16 November 2023.

With the theme of “Indonesian Electricity Sector Readiness in Achieving 2030 NDC Targets through Renewable Energy Development,” the event’s inauguration was led by Jisman P. Hutajulu, Electricity General Director at the Indonesian Energy and Mineral Resources Ministry.

Notable figures such as Indonesian Electrical Power Society (Masyarakat Kelistrikan Indonesia/MKI) General Chairperson Evy Haryadi, the 78th National Electricity Day (Hari Listrik Nasional ke-78) General Chairperson Arsyadany G Akmalaputri, and representatives from sponsor organizations, were also attending the event.

MKI Gathering and Grand Launching of the 78th National Electricity Day – Enlit Asia 2023 discussed commercial and strategic aspects that could accelerate the transition towards a 14 – 16 November 2023, ICE, BSD City, Indonesia In Partnership with: cleaner and more sustainable electric power system.

Discussion was centered on the evolution of traditional power systems, the integration of advanced clean technologies, and the framework and financing necessary to support this transition.

In the event, it was announced that Indonesia had submitted an updated Nationally Determined Contribution (NDC) proposal to the United Nations as the country sought to reduce carbon emissions by 32% (912 million tons of CO2 equivalent) by 2030, an increase from the previous target of 29%.

Additionally, stakeholders would explore collaborative efforts to achieve their zero emission targets by 2060.

A panel discussion titled “Acceleration of EBT-Based Electricity Development” was also held during the event, covering topics such as:

• Renewable Energy Implementation Plan in the 2023-2032 Electricity Procurement Plan (RUPTL 2023-2032) by PT PLN Persero Rensis EVP Warsiono
• Renewable Energy Procurement Plan for 2023-2034 and the Partnership Plan by PT PLN Persero Renewable Energy and Independent Power Producer EVP Alland Asqolani
• Challenges, Lessons Learned, and Success Factors in Renewable Energy Development by PT PLN Nusantara Power Technology Development VP Ardi Nugroho.

Jisman P. Hutajulu, Electricity General Director at the Indonesian Energy and Mineral Resources Ministry said that, “The challenges in the electricity sector are enormous. As we all know, Indonesia still uses 67% of its power generation needs from coal to meet around 83 Giga Watts nationally. The Indonesian government is committed to reducing greenhouse gas emissions in the energy sector by 358 million tonnes of C02 by 2030. The government has issued Law No. 16 of the year concerning the Paris Agreement on the United Nations Framework Convention on Climate Change. In addition, the agenda for the sustainable clean energy transition towards net zero emission is also one of the agendas for Indonesia’s G20 presidency in 2022. Then, the success of Indonesia’s presidency will continue through the 2023 Asean Chair where one of the pillars is the energy sector. Therefore, through this event, we hope that MKI can provide information and recommendations as input for making policies in the electricity sector.”

Indonesian Electrical Power Society General Chairperson Evy Haryadi said, “This forum is an ongoing effort from MKI to support the government to achieve net zero emissions by 2030. Collaboration and cooperation with many parties are needed to help reduce emissions, especially in the electricity sector. Therefore, in the context of the 23 National Electricity Day, we present the Enlit Asia 2023 event which will take place on 14-16 November 2023 with the theme “Strengthening Asean Readiness in Energy Transition”. We hope that the support from stakeholders present today can contribute to Indonesia’s achievement of net zero emissions in 2030.”

Energy Clarion Asia Events Portfolio Director Simon Hoare, said, “This collaborative event is a continuation of the successful partnership that brought POWERGEN Asia to Indonesia for the first time and launched the 73rd Indonesian National Electricity Day in 2018. Enlit 2023, scheduled for November 14th, 2023, will feature over 350 exhibitors from around the world showcasing the latest technologies and innovations supporting the energy transition across ASEAN. With more than 12,000 visitors expected from various regions of Indonesia and ASEAN, the event will offer over 75 hours of free content delivered by leading technology and solution providers, including case studies on cutting-edge technology by Independent Power Producer and electric utility providers. Over 150 industry-leading speakers will share their insights in the event. We welcome all stakeholders to attend the upcoming event to establish stronger collaborations in achieving zero-emission by 2060.”

About Enlit Asia: Enlit Asia is an annual conference and exhibition that brings together two prominent events in the power and energy sector: POWERGEN Asia and Asian Utility Week. It serves as a platform for leading industry providers to showcase innovative solutions, services, and products aligned with Asia’s strategy to transition to a low-carbon energy supply. Enlit Asia provides valuable insights and knowledge from power utilities and energy leaders in the region, focusing on the developments, policies, and innovations that are driving the energy transition.

The event encompasses the entire electricity value chain, including producers, suppliers, utilities, and consumers, covering a wide range of topics from generation to the grid. For more detailed information, please visit Enlit-Asia.com

While the drive for smarter grids, initially led in North America and Europe, has expanded across the world, it has lagged in many emerging markets and developing economies as other challenges such as meeting growing demand with limited resources and ageing infrastructure have taken priority.

But a new report from IEA’s Digital Demand-Driven Electricity Networks Initiative (3DEN) suggests that digital technologies need a higher priority in these countries, with delays in their implementation having considerable costs.

According to the study, digital technologies could save $1.8 trillion of grid investment globally through 2050 by extending the lifetime of grids, while also helping to integrate renewables and minimise supply interruptions.

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However, failing to upgrade and digitalise network infrastructure properly could cut the economic output in emerging and developing countries by almost $1.3 trillion as reduced productivity, lost sales and wasteful outlays on backup generation push up costs and put net-zero targets at risk.

“Power grids are among the unsung heroes of the energy transition, but they need massive investment,” says IEA Executive Director Fatih Birol.

“While much attention goes to solar panels and electric vehicles, it is grids that connect everything together. By digitalising our grids, our power systems become more reliable and secure and our utilities can better manage the balance of electricity supply and demand. The longer we wait to upgrade and digitalise our grids, the more expensive it will get.”

Digitalisation of the grids

The report highlights the need for digitalisation of the grids as crucial for efficiency and decarbonisation and as one of the keys to the success of the clean energy transition.

For example, the IEA estimates that digitally enabled demand response could reduce the curtailment of variable renewable energy systems by more than 25% by 2030, thereby increasing system efficiency and reducing costs for customers.

Decarbonisation can be further supported through enhanced supply and demand forecasting, enabling integrated energy planning and providing better visibility and greater electricity demand flexibility.

Other roles for digitally enabled technologies highlighted include managing the growing penetration of distributed PV systems – countries such as Brazil, India and South Africa are seeing rapid uptake, for example – expanding clean energy access in remote communities and enabling better management of the growing demand due to end-use electrification.

The report notes that overall current global investment in grids is far short of what is required for net zero emissions by mid-century. Annual investment will need to more than double to around $750 billion by 2030, from around US$320 billion today, the IEA estimates.

Policies to support smart grid implementation

The IEA suggests five policy areas beyond targeted actions to facilitate investments to support smart grid implementation and continuous improvement in emerging markets and developing economy countries.

These are:
● Create a coherent vision of how digital grid technologies can help meet country priorities and modernise planning with updated policy and regulatory frameworks.
● Co-ordinate implementation across government departments, regulators and the digital and electricity industries.
● Facilitate rules and regulations that adequately value digital solutions and incentivise and de-risk digitalisation investments.
● Integrate resiliency and security across all electricity policy domains, including through long-term planning and for example climate strategies.
● Track, evaluate and disseminate digitalisation progress to ensure policy implementation and knowledge sharing.

This is according to LF Energy, an open source foundation launched by US-based Linux Foundation, in their 2023 Energy Transformation Readiness Study.

The report, developed in partnership with LF Research, Linux Foundation Training & Certification, G-PST, RWTH Aachen, and Zpryme, provides survey-based insights into energy sector digitalisation through open source.

According to the survey, 76% of energy stakeholders surveyed report their organisation has a clear strategic plan for digitalisation and that they have already begun implementing it.

Additionally, 64% of energy stakeholders use more open source software than closed source, however, a plurality (43%) believe energy industry consensus is still key to increasing OSS adoption.

Key findings from the report include:

• 51% of energy stakeholders see Information Technology (IT) and Operational Technology (OT) on the way to convergence in their organisations. According to LF Energy, where this is the case, it can be implied that the organisations involved are on the verge of transforming to their deepest layers.
• Digitalisation plays a critical role in decarbonisation by enabling smart home energy management, EV charging and improved demand response.
• Cost reduction and transition speed-up are the main benefits of OSS in the energy sector, while performance, support and security are the main barriers to adoption.
• Open source software reduces grid complexity by enabling the integration and management of Distributed Energy Resources (DERs) and easing application development.
• Half of the organisations surveyed believe that software and open source skills should be covered in training programmes.

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Utilities & digitalisation: Europe behind

Respondents in the Asia Pacific region were found to be the furthest ahead with implementing digitalisation plans at 84%, followed by North America at 78% and Europe at 62%.

However, the survey also points out that another 31% of European organisations are in the preparation stage: They have a plan, but it has not been implemented yet, or the plan is currently being developed.

Nearly all respondents who have not already begun implementation already have a plan in place and ready to be implemented, or well into development.

“We have heard from utilities and other stakeholders anecdotally for some time that the energy sector has accepted that digitalisation is the only path forward to transition energy systems to renewables, so it is encouraging to see this research confirm that,” said Linux Foundation general manager, Arpit Joshipura.

“That battle has been won, but the LF Energy community must reinforce to these stakeholders that open source is the most efficient and effective way to complete a digital transformation that ensures these systems are interoperable, resilient, and secure.”

Be prepared

According to the survey, a lack of preparedness for digitalisation can have a variety of consequences for energy-related organisations, including issues related to competitiveness.

31% of the survey’s respondents saw missed opportunities in relation to transportation electrification and 31% saw an inability to maintain position in the market.

When it comes to digitalisation preparedness for US utilities, states the survey, a lack thereof might be also correlated with negative regulatory relationships, confirming that penalties, fines or regulatory actions due to energy service violations are also seen as a consequence.

LF Energy states that a major factor to consider is that digitalisation is simply inevitable; the future of industry sees all things electrified and decarbonised. Most new DERs are unpredictable by nature and to be integrated within the grid, energy stakeholders need new digital capabilities.

OSS the way forward

According to the report, 64% of organisations reported that 50 to 100% of the software they use is OSS; consistent with OSS often being perceived as software that “is everywhere but not visible.”

As OSS often requires technical capability, states LF Energy, some energy sector operators are ahead of others – more traditional grid operators still rely on vendors for their software solutions while Alliander was found to be a frontrunner for OSS use as a grid operator.

66% of LF Energy’s sample were found to be strong believers in OSS with the remaining 34% partially unconvinced; LF Energy points to this as confirmation that organisations would be ready to utilise OSS if belief can be translated into actual use.

According to the survey, cost reduction and transition speedup were found by the survey as the most popular benefits of OSS; flexibility the most promising feature.

Data collection for the survey took place in 2022 Q4; LF Energy received 441 valid responses.

The survey included questions in the following areas: demographics, the current state of digitalisation, benefits of digitalisation, the current state of open source uptake, governance, benefits and barriers of OSS, skill demand, outsourcing and training.

The results come courtesy of Brand Finance’s Utilities 50 2023, which finds State Grid Corporation of China (SGCC) in the first place, its brand score valued at nearly five times that of Italy’s Enel in second.

Utilities from France held the most spots in the top 10, with EDF, Engie and Veolio in third, fourth and seventh respectively.

Of the top 10 utility brands reported by the ranking, seven are European:

1. State Grid (China)
2. Enel (Italy)
3. EDF (France)
4. Engie (France)
5. E.ON (Germany)
6. GD Power Development (China)
7. Veolia (France)
8. Iberdrola (Spain)
9. EnBW (Germany)
10. KEPCO (South Korea)

According to the report, brand value “refers to the present value of earnings specifically related to brand reputation. Organisations own and control these earnings by owning trademark rights.”

European utilities: Germany sprinting

German-based brand RWE was found to be the fastest-growing brand, up 116% to $2.3 billion. RWE is also a new entrant in the ranking, coming in at 29th position. RWE is one of a number of high-performing German brands in the ranking.

Like most energy providers, states Brand Finance, RWE has financially benefited from favourable conditions in the power generational market.

Following a widespread divestment in Russia, the German government invested heavily in diversifying its energy market and turning towards domestic providers. Resultantly, German utilities brands have experienced a remarkable surge in both their performance and brand value.

The aggregate brand value growth for the four German utilities brands included in the ranking was 64%, making it the fastest growing country in the ranking. Over the last year, RWE has made financial gains on its 2021 levels across all business segments, which the report claims to have undoubtedly contributed to RWE’s brand value growth in 2023.

Fellow Germany-based brands E.ON (brand value up 13% to $6 billion), EnBW (brand value up 91% to $4.1 billion), and Uniper (value up 52% to $3.6) have all made significant gains.

EnBW jumped nineteen places to ninth in the ranking in 2023 after its adjusted EBITDA increased over the past year. Its considerable resilience, states the report, allowed it to increase investment in expanding renewables and the associated grid infrastructure across its markets.

Conversely, Spain

Spanish utilities brands have faced difficulties because of the war in Ukraine, including an energy crisis and supply chain issues.

This resulted in cost absorption and subsequent price hikes for customers.

Despite these challenges, Brand Finance found that Iberdrola has emerged as the top-performing Spanish brand, with brand value increasing by 11% to reach $4.2 billion.

This growth can be attributed to the brand’s international presence, particularly in the US and Brazil, where it has contributed to profit growth (up by 11.7% compared to 2021) and offset the decline in profits in Spain.

Furthermore, Iberdrola continues to prioritise investment in renewables and smart grids to promote energy autonomy and accelerate electrification. According to Brand Finance, 2022 saw the brand invest almost $12 million, a 13% increase from 2021, and is set to invest more in 2023 to further expand its renewable installed capacity.

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State Grid reigns

Although European brands occupy the majority of the top 10, China’s State Grid was found to be the world’s most valuable and strongest utilities brand.

This marks the sixth consecutive year the utility has occupied first place, despite a marginal 2% brand value reduction.

Its brand is still worth over $47 billion more than both the second and third most valuable utilities brands, with both Enel (down 13%) and EDF (down 4%) at $11.7 billion.

State Grid, the world’s largest utilities company, owes much of its brand value to its dominance in the Chinese utilities market.

As well as being the most valuable utilities brand, State Grid in China is also the strongest. It has a Brand Strength Index (BSI) score of 86.9 out of 10 with a corresponding AAA brand rating. It is the only utilities brand to achieve AAA brand rating status in the ranking.

The ranking adds that, in 2023, State Grid plans to invest a record $75 billion in transmission infrastructure and energy storage systems. This is a 4% increase in last year’s investment and the sixth consecutive year that investment has grown.

This significant investment demonstrates the power and size of State Grid, states Brand Finance, and the fundamental role it plays in China’s economy.

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High growth, stagnating image

According to the consultancy’s report, the coupled effects of sanctions on Russia and elevated energy prices have seen brand revenues surge – average YoY revenue increase was found at 21%.

However, profits have also led to a consequential decline in brand equity for many brands within the utilities ranking.

Consumers, states Brand Finance, are starting to raise concerns about the escalating profitability of these brands, especially amidst a widespread energy crisis and mounting inflation, which has added to the financial difficulties experienced by many.

This trend is evident through the decreasing scores in the BSI for several major utilities brands worldwide, and an average BSI decrease of 4%.

As a result, the report recommends that leading utilities brands need to focus on rebuilding trust and enhancing their reputation among consumers, an effort that will be essential to foster higher growth in brand value that aligns with the increase in revenue.

On the rankings report, Richard Haigh, managing director of Brand Finance, commented: “The global utilities industry is increasingly transitioning to a more sustainable future in which brands are upping their investment in renewables, while phasing out reliance on non-renewable energy sources.

“The Utilities 50 2023 ranking reflects this change as many brands double down on greener strategies and the communication of this to stakeholders, while renewables-focused brands are increasingly seeing brand value growth and becoming more influential and valuable.”

With three of the top 10 utility brands hailing from France, make sure to follow and register for Enlit Europe, taking place in Paris, France from 28 to 30 November 2023.

LGES and Hyundai Motor Group announced the signing of a memorandum of understanding to produce EV batteries in the US and further accelerate the Group’s electrification efforts in North America.

LGES and Hyundai Motor Group will each hold a 50 per cent stake in the joint venture (JV), which will involve an investment of over $4.3 billion (KRW 5.7 trillion).

The facility will be in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group Metaplant America, currently under construction.

Starting construction in the second half of 2023, the JV plans to start battery production at the end of 2025 at the earliest.

Hyundai Mobis will assemble battery packs using cells from the plant, and then supply them to the Group’s US manufacturing facilities for production of Hyundai, Kia and Genesis EV models.

The new facility is hoped to help create a stable supply of batteries in the region and allow the Group to respond fast to the soaring EV demand in the US market.

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Competitive US market

With the JV, LGES now has seven battery plants currently operating or being constructed in the US, where the company is concentrating most of its resources to expand the production capacity.

Earlier this year LGES reported record-breaking order backlog of its battery cells; demand has been spurred for the company’s solution by the favourable EV tax credits offered up by the Inflation Reduction Act in the US.

The end of the 2022 financial year marked for the company a significant financial milestone as “a record-high annual revenue was made possible, as battery shipment has increased across all product line-ups in our proactive response to the increased demands for EVs and power grid energy storage systems (ESS),” explained Chang Sil Lee, CFO of LG Energy Solution at a conference call announcing the company’s 2022 earnings of KRW1.2 trillion ($905 million) in operating profit.

Most of the company’s earnings have been attributed to the competitive energy and EV market in the US, where companies are being spurred competitively by the IRA.

With this latest JV, by ramping up its local production, LGES hopes to provide its products both on a larger scale and with speed.

The signing ceremony took place in LGES’s headquarters in Seoul on May 26 with the attendance of Youngsoo Kwon, CEO of LG Energy Solution and Jaehoon Chang, President and CEO of Hyundai Motor Company.

Established after the conclusion of the G7 Summit in Japan, the collaboration aims to strengthen bilateral cooperation on climate change, clean energy and the energy transition.

The partnership was launched in Seoul, South Korea, during the EU-Korea Summit by Commission president, Ursula von der Leyen, and Korean president, Yoon Suk Yeol.

Both parties reaffirm with this partnership their commitment to keep global temperature rise below 1.5°C and reach climate neutrality by 2050 at the latest. Additionally, both sides reiterated their commitment to their respective 2030 targets for greenhouse gas emission reductions.

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Specifically, the partnership will focus on the following areas:

• Supporting a clean and fair energy transition by intensifying cooperation on renewable energies, energy efficiency, renewable and low-carbon hydrogen, batteries and green mobility, Carbon Capture, Utilisation and Storage (CCUS) and a just transition away from unabated coal-fired power generation;
• Working with third countries to facilitate their green transition, notably in the area of climate change mitigation, adaptation and resilience, the clean and fair energy transition and circular economy;
• Strengthening efforts on combatting climate change, including cooperation on climate adaptation, carbon pricing, methane emissions and climate finance;
• Joining forces in other areas such as business cooperation, sustainable finance, research & innovation, sustainable food systems, sustainability and resilience of our supply chains as well as employment and the social dimension of the green transition;
• Increasing cooperation on environmental issues, including but not limited to biodiversity loss, forest degradation and deforestation, circular economy and the full life cycle of plastics, as well as the implementation of the Kunming-Montreal Global Biodiversity Framework.

International cooperation amid turbulent waters

Alongside the partnership, the two have also agreed to promote international climate action and have stated a commitment to cooperate to support developing countries and emerging economies with the implementation of their climate and environmental policies.

The partnership was announced a day after the Group of Seven (G7) Summit, whereby G7 leaders acknowledged the importance of new incentives, industrial policies and public as well as private investments.

According to a Washington-issued release, “leaders committed to work together to ensure regulations and investments will make clean energy technologies more affordable for all nations and help drive a global, just energy transition for workers and communities that will leave no one behind.”

During the announcement of the partnership, on the back of the Summit, Von der Leyen commented on the significance of the partnership, which will strengthen EU-South Korean ties as Russia continues its offensive against Ukraine.

“It is wonderful to experience this true friendship. It is heart-warming and I think our people need it in these troubled times in the changing world… We defend together for as long as it takes, Ukraine’s attempt to secure the UN Charter and their fight for the respect for international law as we stand by your side in these difficult times under constant threat on the peninsula.”

According to Reuters reportage, results from the G7 Summit were a tightening of sanctions against Russia and a discussed need to reduce reliance on trade with China.

Green Partnerships are set up as bilateral frameworks to enhance dialogue and cooperation with key EU partners. According to the European Commission, they are comprehensive forms of bilateral engagement established under the European Green Deal.

The first Green Partnership was established with Morocco ahead of COP 27 in October 2022.

Said Von der Leyen: “The EU and the Republic of Korea share the ambition of a climate-neutral future. The launch of our Green Partnership will help us towards that goal. We will now work on the convergence in key areas and deepen cooperation on strategic, clean energy projects. Because it is good for our supply chains, good for our competitiveness and good for the planet.”

Eni’s €2.2 billion share buyback

Rome-based energy company Eni has announced the first tranche of a share buyback programme, totalling €2.2 billion ($2.4 billion).

The First Tranche will concern up to a maximum of 62 million of Eni’s shares (approximately 2% of share capital), up to a total maximum of €1 billion ($1.1 billion) and to set up a share portfolio to serve extraordinary financial transactions, as for example convertible bond issues.

The purchases will be executed on the Euronext Milan through an authorised agent, who will act independently.

The share buyback will be executed over a period of 12 months and may be increased to a total maximum of €3.5 billion ($3.8 billion), in case of upside scenarios.

Therefore, after the First Tranche, a further phase of purchases will be launched to complete the overall planned buyback program.

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Series B for utility-driven robotics

ANYbotics, a Swiss robotics developer, has announced a $50 million Series B funding round led by international deep tech investors Walden Catalyst and NGP Capital with participation from Bessemer Venture Partners, Aramco Ventures, Swisscom Ventures, Swisscanto Private Equity alongside other existing investors.

The investment comes as demand for robotic solutions surges in heavy industries such as utilities, as well as oil & gas, chemicals, power, mining and metals & minerals.

Faced with an ageing workforce and labour shortages, these industries increasingly rely on innovative robotics solutions to streamline operations, reduce environmental impact and increase worker safety.

The funds will be used to scale the company’s deployments internationally, fuel the development of new capabilities, and enhance its position in robotic inspection solutions.

According to ANYbotics, their ANYmal robot platform returns value in operational deployment and is used by market leaders such as PETRONAS, Shell, SLB, Outokumpu, Siemens Energy, BASF and Vale.

“This funding validates our unique approach to addressing fundamental challenges of operating complex industrial facilities,” said Péter Fankhauser, ANYbotics co-founder and CEO. “Our legged robots have already proven their value in increasing productivity and safety.

“With this investment, we will expand internationally and accelerate the development of our robots’ AI capabilities such as manipulation for maintenance work to revolutionize automated industrial operations.”

‘Smartening’ the grid is driving investments

KPMG’s report, Smarter Grids: Powering decarbonisation through technology investment, examines the policies that support smart grids’ implementation and the investments incentivised by these enabling policies.

Wei Lin, partner and head of ESG for KPMG China, commented on the report’s findings: “Energy independence and the need to decarbonise the economy by progressively moving away from fossil fuels reliance is a key policy and business opportunity driver.

“Many countries not only have strategic roadmaps for expanding renewable energy generation, but they are also charting pathways for alternate energy options including green hydrogen and energy storage. These changes have contributed to the renewed urgency to strengthen the electricity grid.”

Ebele Angela Onyeabo, associate director of climate and sustainability at KPMG China, added how “sustainable finance is increasingly targeting the clean technologies of the future.

“Banks, asset managers, institutional investors, utilities and corporates are in many ways exploring opportunities for decarbonising their portfolio as well as their processes. Investing in and integrating smart grids technology offers a clear path to substantial carbon reduction critical to energy transition.”

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China’s vertically integrated market

The report looks at the cases of the UK, US and, of particular interest, China.

Reliable electricity, states KPMG China – a subsidiary of the global consulting firm – is critical to economic growth in the country, which generated over 8,500TWh of electricity last year, accounting for one-third of global output.

State-Owned Enterprises (SOEs) dominate the investment landscape.

Specifically, the SGCC (State Grid Corporation of China) – the country’s biggest market player and the largest electric utility company in the world – has been upping investments into electricity networks and transmission lines over the years, upscaling smart grid compliant UHVDC (Ultra High Voltage Direct Current) and flexible AC transmission lines.

They have also focused on advancements in distribution smart grid infrastructure to foster demand side management and drive uptake in electric vehicle, vehicle to grid and smart metering technology.

Through such investment, the report puts forth how ‘smartening’ the grid has benefited from access to green finance in China, which has resulted in greater access to green bonds and other financial tools, which the report states are critical for enabling the country to achieve its carbon neutrality goals through energy efficiency.

Increasing interconnection between domestic and international policies, they state, has also sped up growth of a “transparent, standardised green bond market, enabling key players to attract private investment through various financing tools.”

Variability within the country’s vertically integrated market, they add in the report, allows for the inflow of private investments to support smart grid development.

Additionally, according to KPMG’s 2022 CEO Outlook, based on a survey of over 1,300 global CEOs, long-term digital transformation and ESG make up two of the top four trends impacting businesses globally.

Smart grids, they state, straddle these two issues in a way that impacts stakeholders across sectors.

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

I will also be attending European Sustainable Energy week (EUSEW) from 20 to 23 June in Brussels, Belgium. Will I see you there?

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

With this, the performance of the platform and its conformance to G3-Alliance hybrid specifications is validated and interoperability assured when using the solution in G3-hybrid networks.

The SM2400 PLC+RF reference design module is a complete board that implements a full powerline communication interface and as well as an integrated radio for short range, modest bandwidth communication.

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The module can be used as a bridge between RF and PLC or simultaneously connect to both networks.

Such hybrid offerings are aimed to offer an efficient and cost-effective solution for smart grid, smart city, industry and other IoT applications in which meters, data concentrators and other devices need to communicate reliably to meet performance levels and are interoperable with each other.

“Hybrid PLC/RF networks deliver high reliability and scalability, while adding flexibility and increasing data capacity and speed,” said Semitech CEO Zeev Collin.

“Customers want to use certified platforms as a stamp of quality approval and to ensure interoperability with other products sharing the same networks.”

The G3-Alliance is a consortium with responsibility for 2011 to standardize and promote G3-technologies globally.

The G3-PLC Hybrid is the first industry hybrid standard offering extended capabilities through one seamlessly managed network over both wired and wireless media. As such it opens up new cases such as communication with water and gas smart meters, in-home displays and lighting controllers among other technologies.

Subsequently, the solution has been extended to include the ARIB bandplan for Japan to enable implementation in that market.