Renewable energy in rural settings; exploring innovative financing models

Header image courtesy of Dominic Chavez/World Bank

The need for renewable energy has intensified as the globe grapples with climate change. Rural areas are part of this push, even though they present unique challenges such as lower population densities and logistical complexities. However, these rural areas can achieve renewable energy goals given innovative financing models, which the rest of this article explores.

What is the current state of renewable energy financing in rural settings?

Renewable energy faces some challenges in rural areas. These include a lack of infrastructure, financing, skills, and public awareness. Renewable energy projects must also work around the lack of grid connectivity and higher per-unit energy costs.

Traditional financing models often do not address the unique needs of renewable energy in rural areas. As such, innovative financing is needed to overcome the barriers of high upfront costs, high perceived risks, and small project sizes, which could discourage traditional bankers and financiers. This is needed to make renewable energy accessible and affordable for rural communities.

Case studies of innovative financing models for rural renewable energy projects

Crowdfunding and community financing schemes

These types of financing allow individuals and communities to invest directly in local renewable projects. They can help solve the problems of lack of access to capital, high upfront costs, and long payback periods. They also increase local ownership and engagement.

An example of these financing models is the Ambition Lawrence Weston renewable energy project, which planned for a giant wind turbine that can power 3,850 homes and generate up to £400,000 per year in profit.

Green bonds

Green bonds are another means of financing rural renewable projects, with cumulative issuance crossing the US$1 trillion mark in 2020. Apart from providing access to capital, they also attract investors interested in supporting the transition to a low-carbon and climate-resilient economy.

Pay-as-you-go (PAYG)

PAYG models provide affordable and flexible payment options for renewable energy products, such as solar home systems and mini-grids. Customers can pay for their energy use in small instalments instead of bearing the burden of a high upfront payment.

Advantages of PAYG models in rural renewable projects include reducing the risk of default and theft for the energy providers, enhancing the quality and reliability of renewable energy services through customer support, maintenance, and warranty, and generating local employment and entrepreneurship opportunities by involving local agents and distributors.

Power purchase agreements

Power purchase agreements (PPAs) are contracts between a power generator and the party that wants to buy the power. The agreements cover an agreed period, with the power supply set to meet the requirements of the generator and the buyer.

PPAs can provide a means for farmers and landowners in rural areas to sell excess renewable energy generated on their properties. These have the potential to incentivize the adoption of renewable energy and provide a stable secondary income for rural dwellers.

Conclusion

Innovative financing models are crucial in driving the adoption of renewable energy in rural areas. Businesses, investors, and policymakers must tap into these innovations to extend the benefits of renewable energy to every corner of the planet.

Hungary to receive €1.1 billion EU aid for energy storage projects

Header image courtesy of Tesla

Hungary has been approved to benefit from a €1.1 billion (US$1.2 billion) EU scheme for financing large-scale energy storage projects, as Energy Storage News reports.

The central European country targets not less than 800 MW/1,600 MWh of energy storage capacity with the funding. The installations will store renewable energy, making it easier to integrate into Hungary’s electricity system.

The fund will be accessible to companies in Hungary’s energy sector, except financial institutions. Developers can also use the fund to finance projects outside Hungary, provided they can transmit the power across the border into Hungary.

Hungary will disburse the fund to all kinds of battery technology. However, lithium-ion remains the most popular battery chemistry.

Successful developers will pass through a competitive process, which will be concluded before the end of 2025. The projects must be completed and brought online within three years of signing the contract.

The EU fund will come partly from Hungary’s Recovery and Resilience Facility share and a Modernization Fund. Other European countries that have accessed EU funding include Greece, Estonia, Croatia, Finland, and Slovenia.

EU and Chile team up for two initiatives on green hydrogen

Header image courtesy of EEAS

The EU and Chile have signed two new cooperation agreements on renewable hydrogen, as Offshore Energy reports. The new agreements will contribute to the “Team Europe Initiative for the Development of Renewable Hydrogen in Chile” program.

The two initiatives involve technical assistance from EU member states to help Chile develop its renewable hydrogen sector. Also planned is a fund that will support green energy projects.

The technical assistance part of the agreement will promote an enabling environment for Chile’s renewable energy economy. It will ensure capacity building, knowledge transfer, and other measures required to move green hydrogen forward in the South American country.

The EU has budgeted €4 million for the initiatives, supplemented by another €4 million from the German Federal Ministry of Economics and Climate Protection (BMWK).

Team Europe Renewable Hydrogen Fund in Chile is a second fund sponsored by the European Investment Bank (EIB) and the German Development Bank (KfW). It is derived from a €6.5 million grant from the EU’s Latin America and Caribbean Investment Facility (EU LACIF) and €200 million in loans. The loans are powered by the EIB and KfW). These funds will be administered by CORFO to support hydrogen production projects in Chile.

President of the EU, Ursula von der Leyen, said, “this is one of the most important projects that we can undertake together. This Renewable Hydrogen Fund, here in Chile, will support the development of this strategic industry. It will create good jobs in the country, and boost its renewable hydrogen exports to the world and, of course, also to its partners, such as the European Union”. 

Powering the Future: Battery Tankers and the Offshore Renewable Energy

Offshore renewable energy sources are increasingly vital in the global energy transition. However, harnessing their potential can require efficient energy storage solutions to address intermittent power generation. To fill this need, battery tankers are emerging as an innovation. This article explores the significance of battery tankers and their transformative impact on offshore renewable energy.

Why is energy storage needed in offshore renewable energy?

Offshore wind and solar farms are often located in remote areas with limited grid connectivity. These renewable energy installations face challenges related to intermittent power generation, as energy production fluctuates with weather conditions. Energy storage systems are crucial for managing this intermittency and ensuring a consistent power supply. Battery tankers provide a scalable and flexible storage solution.

How do battery tankers work?

PowerX battery tanker courtesy of PowerX

Battery tankers are essentially massive floating energy storage units. They use advanced battery technologies to store surplus energy from offshore wind or solar farms. These tankers can charge when renewable energy production exceeds demand. They can then discharge the stored energy during periods of low production or high electricity consumption. The battery tankers act as a buffer, optimizing the power supply and ensuring a stable grid connection.

What are the advantages of battery tankers for offshore renewable energy?

Grid stability and reliability

Battery tankers enhance the stability and reliability of offshore renewable energy systems by providing immediate response and balancing services. They can inject stored energy into the grid in response to a sudden wind or solar generation drop, preventing power disruptions.

Intermittency mitigation

Battery tankers mitigate the intermittency issues associated with offshore renewable energy by storing excess energy during peak production periods. This allows for more efficient use of available resources. It also ensures a steady electricity supply, even during low renewable energy generation periods.

Enhanced grid integration

Battery tankers facilitate the integration of offshore wind and solar farms into the existing power grid infrastructure. They provide grid operators with greater control over power flow. This enables efficient utilization of renewable energy resources and reduces the need for costly grid upgrades. Decommissioned thermal power plants near ports can get a new lease of life by becoming charge/discharge points.

Scalability and flexibility

Battery tankers offer scalability, allowing for the addition of multiple units to accommodate the growing capacity of offshore renewable energy installations. They can be easily deployed and relocated, offering flexibility to optimize energy storage capacity based on specific project requirements.

Future outlook and challenges of battery tankers

The use of battery tankers for offshore renewable energy storage is still in its early stages, but the potential is immense. As the technology evolves, the cost-effectiveness and efficiency of battery tankers are expected to improve further.

Japanese startup PowerX has introduced a battery tanker due for completion in 2025. The company’s proof of concept tanker will be equipped with 96 containerized marine batteries with a total capacity of 241 MWh. The batteries will use lithium iron phosphate cells with over 6,000 life cycles and use dedicated gas emission control and fire suppression mechanisms. PowerX has scheduled sea trials for 2026.

PowerX battery tanker courtesy of PowerX

However, challenges such as safety, battery degradation, environmental impacts, and regulatory frameworks need to be addressed to ensure this solution’s widespread adoption and sustainability.

Conclusion

Battery tankers represent a significant breakthrough in the field of offshore renewable energy. These floating energy storage systems can revolutionize the industry by addressing the intermittency challenges of offshore wind and solar farms. With their ability to provide stability, reliability, and grid integration, battery tankers offer a promising solution for powering the future of offshore renewable energy.

Tapping into the Earth’s Core: Overcoming Environmental and Social Challenges to Harness Geothermal Energy’s Potential

Geothermal energy has emerged as a highly promising contender in the quest for cleaner and more sustainable energy sources. However, its adoption faces environmental and social barriers that require effective mitigation strategies. This article examines where geothermal energy is feasible for exploitation and overcoming these barriers.

Where is Geothermal Energy Most Feasible?

Geothermal energy is most feasible in areas with a high geothermal gradient, meaning the temperature increases rapidly with depth in the Earth’s crust. This allows for accessing hot water or steam from relatively shallow wells or boreholes, reducing drilling costs and risks.

Geothermal energy is also more feasible in areas with a high permeability of the rocks, meaning that the fluid can flow easily through fractures or pores. This increases the efficiency of the geothermal system and the heat recovery rate.

Geothermal energy is also more feasible in areas with low seismic risk, meaning geothermal activity does not trigger or facilitate earthquakes or tremors. This reduces potential damage and disruption to the geothermal infrastructure, surrounding environment, and communities.

According to a report by the World Bank, some of the factors affecting the feasibility of geothermal energy include the geological setting, which determines the type, temperature, depth, and extent of the geothermal resources; the market conditions, which determine the demand, price, and competitiveness of geothermal energy; and environmental and social impact, which determines the sustainability and acceptability of geothermal energy.

Based on these factors, some of the regions where geothermal energy is most feasible are:

The Ring of Fire, a belt of volcanic and seismic activity surrounding the Pacific Ocean. It includes countries such as Indonesia, the Philippines, Japan, New Zealand, Mexico, the USA (California), Chile, and Peru. These countries have abundant geothermal resources due to their active volcanism and tectonism.

The East African Rift System, a zone of continental extension stretching from Ethiopia to Mozambique. It includes countries such as Kenya, Ethiopia, Tanzania, Uganda, and Rwanda. These countries have high geothermal potential due to their rifting and magmatism.

The European Geothermal Belt, a region of elevated heat flow that extends from Iceland to Turkey. It includes countries such as Iceland, France, Germany, Italy, and Turkey. These countries have diverse geothermal resources due to their volcanic activity or sedimentary basins.

Environmental Barriers and Solutions

Induced Seismicity

One primary concern associated with geothermal energy is induced seismicity; the earthquakes and tremors caused by human activities. For example, The Geysers geothermal field in California, USA, has experienced thousands of induced seismic events since the 1960s due to steam withdrawal and thermal contraction of the rocks.

The Geysers geothermal power plant, Cobb Creek, California, US, courtesy of CALPINE

Addressing this challenge requires adopting advanced seismic monitoring, careful site selection, and responsive management measures such as the traffic light system (TLS).

Water Consumption and Contamination

Geothermal projects often require large amounts of water and risk contamination from drilling fluids. Utilizing closed-loop systems and non-toxic drilling fluids can drastically minimize these environmental impacts. Developers can also use dry cooling systems, which use air instead of water, hybrid cooling systems, and enhanced geothermal systems (EGS) to reduce water consumption. However, the latter can require more drilling and increase the risk of small earthquakes.

Overcoming Social Hurdles

Public Acceptance

A significant social hurdle is the need for more public understanding of geothermal energy. Educating communities about the benefits of geothermal energy and involving them in project planning can foster acceptance and enthusiasm.

Land Use Disputes

Land use and property rights conflicts often arise due to the extensive land requirements of geothermal projects. Early engagement with stakeholders and implementing fair compensation mechanisms can help alleviate these disputes.

Growth Projections for Geothermal Energy

There are multiple sources of growth projections for geothermal energy. For example, the International Energy Agency (IEA) forecasts geothermal power generation of 282 TWh in 2030 in the Sustainable Development Scenario.

IEA, Geothermal power generation in the Sustainable Development Scenario, 2000-2030, IEA, Paris https://www.iea.org/data-and-statistics/charts/geothermal-power-generation-in-the-sustainable-development-scenario-2000-2030, IEA. Licence: CC BY 4.0

Conclusion

Overcoming the environmental and social barriers to geothermal energy requires concerted efforts, innovative solutions, and supportive policies. Despite these challenges, the potential of geothermal energy to contribute to the global energy mix is undeniable, especially in tectonically active regions. By looking at the strategies adopted by the major players and considering growth projections, it is evident that geothermal energy will play a significant role in the future of renewable energy. The opportunities it presents for a cleaner and more sustainable future are within reach, and the time to seize them is now.

Welcome to Renewable Brief!

Welcome, dear reader, to the inaugural post of Renewable Brief!

I am thrilled to embark on this journey with you as we explore the world of renewable energy. In this blog, I will dive into the latest developments, innovations, and trends in the renewable energy sector, providing concise and insightful briefings to keep you informed and inspired.

Understanding Renewable Energy

Renewable energy has emerged as a game-changer in our quest for a greener and more sustainable planet. Unlike finite fossil fuels, which contribute to environmental degradation, renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, are clean, abundant, and can be harnessed indefinitely. They offer many benefits, including reduced greenhouse gas emissions, improved air quality, energy independence, and job creation.

Exploring Renewable Technologies

I will explore renewable technologies, discussing their working principles, benefits, and potential applications. Each technology has unique advantages and considerations, from photovoltaic solar panels that convert sunlight into electricity to wind turbines harnessing the power of the wind.

Spotlighting Industry Innovations

The renewable energy landscape continuously evolves, driven by ground-breaking innovations and advancements. I will keep you updated with the latest breakthroughs in renewable energy research, development, and implementation.

Exploring Policy and Market Trends

Renewable energy is not just about technology; policies, regulations, and market dynamics also influence it. I will examine the policy frameworks and incentives that shape the renewable energy landscape, from government initiatives and international agreements to local regulations and subsidies. I will also keep a close eye on market trends, investment opportunities, and emerging business models that drive the growth of the renewable energy sector.

Taking Action for a Sustainable Future

Knowledge is the first step towards action. As such, I will also discuss practical steps individuals, communities, and businesses can take to embrace renewable energy solutions and reduce their carbon footprint.

Thank you for joining me on this exciting journey. Renewable Brief aims to be your go-to resource for concise and informative briefings on all things renewable. Stay tuned for regular updates and engaging discussions that will shape the way we think about renewable energy.

The Netherlands confirms new offshore wind zones

License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

New offshore wind farms are coming to the Netherlands, and the Dutch Council of Ministers has approved where the new farms will be built. Bidding for the wind farms will start in 2025.

The Netherlands aims for a 10.7 GW development which would be divided into three new sites; Nederwiek, Lagelander, and Doordewind. Two other areas from the designated list will also get new farms, including the northern part of Ijmuiden Ver and the southern part of Hollandse Kust West.

The whole network of farms will generate nearly 21 GW by 2030. This is almost double the Netherlands target of 11 GW capacity from offshore farms according to the Coalition Agreement and the Climate Agreement of 2019.

TenneT has been tapped to connect the new farms to land, costing €16bn. The company will begin to award the contracts for the individual component even before the final approvals have been granted.

According to the Dutch Minister for Climate and Energy Rob Jetten, “We want to make the North Sea our largest green energy source. That’s a huge job. The construction of a wind farm and the connection to the electricity grid takes several years, during which we constantly pay attention to the ecological impact. In order to achieve our goals for 2030, we are now in a hurry to get the wind farms up and running as quickly as possible.”

Wind generated about 2.5 GW of energy in 2021, according to government records. The country wants to increase it to at least 4.5 GW by 2023 to comply with its Energy Agreement for Sustainable Growth commitment. Offshore wind energy is expected to supply 3.3 percent of the country’s energy needs by that time.

Stellantis and Samsung to build $2.5 billion EV battery factory in Indiana

Courtesy of Jeffrey GRussel and Dodge

Electric vehicles have taken off, and companies are not afraid to make huge investments in them. Stellantis and Samsung have decided to site a factory that will manufacture EV batteries in Indiana at the cost of $2.5 billion.

While many people know the Galaxy series of Android phones, Samsung has a subsidiary that makes batteries for electric vehicles, known as Samsung SDI. The subsidiary has teamed up with Stellantis to set up a plant in Kokomo, Indiana, to make EV batteries. The facility will create jobs for 1,400 people directly.

Stellantis is the parent company for carmakers like Dodge, Jeep, Chrysler, etc.

The two companies will split the development cost and are willing to spend up to $3 billion on the factory.

Stellantis already has a presence in Kokomo, where it makes castings, transmissions, and engines.

Earlier, Stellantis had revealed it would build another plant for making EV batteries with LG Energy Solution in Windsor, Ontario, at the cost of $4.1 billion. Both projects are part of Stellantis’ push into the growing EV market.

Stellantis wants to sell 5 million electric cars by 2030 across its brands. It announced a detailed plan last year for making its line-up electric. The Chrysler brand will sell only electric vehicles by 2028.

The Kokoma plant is expected to come online in 2025 and will start with an annual capacity of 23 GWh and expand to 33 GWh. The Windsor facility will kick off with a 45 GWh capacity.

Other automakers investing in EV battery production include General Motors, which plans a 140 GWh annual capacity, and Ford, which will build three plants with a combined capacity of 129 GWh per year. Volkswagen is even more ambitious, which a plan for 240 GWh per year capacity from six plants in Europe by 2020.

Next-gen C-8 electric flying boat to be revealed by Candela in Venice

Courtesy of Candela

Electric cars are now a norm, and battery-powered planes may soon become commonplace. The next target for electrification, logically, is water, and Swedish boat maker, Candela, will soon launch a new version of its C-series hydrofoil electric speedboat, the C-8.

The C-8 was announced last August, succeeding the C-7, which had become popular in Europe and the US.

The C-8 is the next-gen and features a groundbreaking design. It uses two computer-controlled hydrofoils that can raise, lower, and make other fine adjustments itself to ensure you and your passengers have the smoothest ride. It can make 100 such adjustments in one second.

This electric speedboat was designed to massively cut down the energy required to glide at high speed and still yield enough riding range. The engineers used an ingenious method to reduce the energy consumption by 75 percent. A typical boat like the C-8, measuring 28 feet, consumes as much energy as 15 family cars. This is why such boats usually have atrocious ranges, and those that offer longer ranges are priced exorbitantly.

Candela made the C-8 fly above the water instead of riding through it. The boat lifts itself automatically after reaching a few knots of speed, which reduces the drag experienced.

Courtesy of Candela

You can cruise at a top speed of 30 knots, but another draw of the C-8 is the operating costs. A 2.5 hours cruise will cost you about €8 of electricity, about 90 percent cheaper than an ICE boat of similar size.

There are other benefits, like a smoother ride and quiet operation. There is also minimal maintenance required, as you can get away with a maintenance interval of once a decade, compared to an inspection every 100 hours for a typical gas-powered boat. The boat also leaves no wake, which threatens the buildings along Venice canals.

According to Candela’s founder and CEO, Gustav Hesselskog, “Flying in absolute silence, without any slamming and basically for free — it’s just an amazing experience. Once you’ve tried Candela C-8, it will be hard to go back to traditional powerboats.”

Candela will reveal the boat at the Salone di Nautico Boat Show in Venice, Italy. The C-8 will compete in the show’s E Regetta for electric boats.

ABB and Eviny collaborate to install world’s fastest EV charger in Norway

Courtesy of ABB

The Norwegian city of Bergen has had the honor of hosting the world’s fastest electric car charger. The charger is ABB’s Terra 360 and can add 100 km in just three minutes. ABB and Eviny also collaborated to install the fast charger at a ski resort named Geilo.

The charger in Bergen is available to EV owners at the Oasen Shopping Center and the ski resort.

After these two pilot installations, the duo will undergo a wider rollout in Norway and Sweden.

The Terra 360 can charge two cars simultaneously using dynamic power distribution. The maximum output is 360 kW, meaning it can charge a typical car to 100 percent in just 15 minutes or even less.

ABB says the Terra 360 charger is fast but convenient to use as it doesn’t work differently from the chargers EV owners are used to. The charger also has a smaller footprint and sophisticated lighting to guide the user when it is dark. The cable is 5 m long but light, and the charger is available for people using wheelchairs.

Frank Muehlon, CEO of ABB E-mobility, explains: “Having recently unveiled the Terra 360 to the world, these are truly landmark launches which we are delighted to partner with Eviny on. Norway is setting the global standard when it comes to the e-mobility transition and we are excited to hear the reaction of EV drivers in one of the most advanced nations for EV adoption.”

According to Eviny’s CEO, Jannicke Hilland, “For several years we have been involved in the Norwegian transition into e-mobility. We know how important a reliable fast charging experience is when choosing an electric car over a fossil-fueled car. The e-mobility transition is happening lightning fast here in Norway, and to continue to lead the change, we need the fastest.”

ABB can’t choose a better place to install its new Terra 360 charger as the country is on track to become the first to stop the sales of petrol and diesel cars in its territory by 2025. The majority of new cars purchased in the country are electric.

Eviny has installed more than 400 chargers across Norway at 150 locations. ABB has sold more than 680,000 EV chargers in more than 85 markets.