Energy – Informed Comment https://www.juancole.com Thoughts on the Middle East, History and Religion Sat, 14 Dec 2024 22:38:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.8.10 Türkiye reaches 18.7 GW Photovoltaic Capacity, shows how Solar can meet Growing Air Conditioning demand https://www.juancole.com/2024/12/photovoltaic-capacity-conditioning.html Sat, 14 Dec 2024 05:15:53 +0000 https://www.juancole.com/?p=222029 Ann Arbor (Informed Comment) – One of the paradoxes of human-made climate change is that as we heat up the planet by burning gasoline, coal and fossil gas, it makes the summers hotter. These torrid months impel people to run the air conditioner nonstop, which requires burning more coal or fossil gas, which causes it to get hotter. It is a vicious circle.

Türkiye is suffering from increasing summer heat waves, especially in the western part of the country, creating dramatic increases in electricity use from ACs.

But the country has also showed that there is an alternative to this constant ratcheting up of the temperature. According to the energy think tank Ember, 2/3s of the increased demand for electricity, mostly caused by the sweltering temperatures of the summer of 2024, was met by new solar installations. Turkish energy production from solar was up 40% in the first half of 2024, year over year.

By putting in new solar installations, Türkiye in 2024 avoided 16 gigawatts of dirty electricity produced by fossil fuels. All of those fossil fuels would have been imported, since Türkiye is poor in these resources, resulting in a big import bill. That expenditure was also avoided.


“Solar Golden Horne,” Digital, Dream / Dreamland v3 /Clip2Comic, 2024 >

Türkiye reached 16 gigawatts of installed solar capacity this summer, which is 14% of the country’s installed power capacity. It has already risen to 18.7 gigawatts in December. The government wants to increase solar capacity to 22.6 gigawatts in the next twelve months.

A little over half of the country’s electricity is produced by coal-fired and fossil gas-fired plants on a year-round basis, but the government has plans to invest heavily in renewables toward a zero-carbon electric grid over the next little over a decade. It plans 89 gigawatts of new solar and wind capacity by 2035, with plans to invest $108 billion in the transformation.

Greening the Turkish grid is made difficult not only by the extra air conditioning use in increasingly hot summers, but also by the economy’s continued expansion. It is one of the fastest-growing countries in the world economically, which creates vast additional electricity demand.

Türkiye is also going for 14.8 gigawatts of wind generation by the end of next year.

Turkish electric vehicle sales are also surging by 39% this year. The country produces the Togg, for which it is seeking increased Chinese partnerships, and plans to export it to Europe starting next year. The Togg is helping drive EV sales domestically and creating local jobs, showing how green technology can help power clean industrialization.

Türkiye, a member of NATO, is the world’s 17th largest economy, making it a member of the G20, with a projected 2024 nominal GDP of $1.3 trillion. It has a population of 87 million, just a little bit more than that of Germany.

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Trump is Already Rewarding Fossil Fuel CEOs; That’s not Good for Consumers or the Planet https://www.juancole.com/2024/12/already-rewarding-consumers.html Sun, 08 Dec 2024 05:06:05 +0000 https://www.juancole.com/?p=221940 If you think fossil fuel profits lead to better prices, then look again at the Biden administration.

( Otherwords.org ) – During his campaign, Donald Trump publicly promised to reward oil and gas executives handsomely in exchange for funding his campaign.

Within weeks of winning the election, he’s making good on his promise by tapping oil and gas executive Chris Wright to lead the Department of Energy. Wright has zero experience in running a federal agency. And as the Associated Press reports, he’s “been one of the industry’s loudest voices against efforts to fight climate change.”

To lead the Environmental Protection Agency, Trump has picked another crusader against the climate: former New York Rep. Lee Zeldin, who voted in lockstep with fossil fuel interests during his time in Congress.

Poll after poll shows a majority of Americans believe climate change is real, human-caused, and needs to be urgently addressed. Trump’s billionaire oil buddies — who will shape national energy policy for the next four years — offer precisely the opposite.

Trump has promised to make fuel and energy more affordable for consumers by steering massive profits to energy producers — but those profits will come at our expense. He’s pledged to end federal subsidies for electric vehicles, even though many Americans want zero-emission vehicles but can’t afford them yet. And he’s vowed to bring gas prices under $2 a gallon — a wild claim that economists don’t buy.

Oil profits and production are already sky-high under President Biden and haven’t led to lower gas prices.

Indeed, Biden has been more of a friend to oil and gas than to climate justice groups. In spite of the White House’s boasts about historic climate policies, Biden’s actions have been relatively toothless. Among them are setting goals posts to reduce emissions years from now — anywhere between 2030 and 2050 — well after he leaves office.

He’s touted his signature legislation, the Inflation Reduction Act, as a historic victory for the climate. The law did make significant climate investments, but the majority of it tinkered around the edges of what’s truly needed. And it ended up giving away billions to the fossil fuel industry for unproven technologies such as “carbon capture.”

Indeed, if Trump wants to “drill baby, drill,” he could thank Biden for paving the way.

Biden has overseen the transformation of the U.S. into one of the world’s largest fossil fuel producers, both during his presidency and during the Obama years, when he was vice president. According to the Energy Department, the U.S. has “produced more crude oil than any nation at any time… for the past six years in a row.”

So the last thing the fossil fuel industry needs is more favors.

Consumers will pay the price if Trump makes EVs and renewable energy more expensive, lets oil companies dismantle regulations, and accelerates the climate crisis. But he’s relying on ordinary Americans not noticing he’s throwing them and their planet under the bus because of the chaos he’ll bring with mass deportations, anti-LGBT bigotry, and other madness.


“Drilling,” Digital, Dream / Dreamland v3 / Clip2Comic, 2024

With the time he has left, Biden could still declare climate change a national emergency — a step many environmental groups are begging him to take, but which he’s resisted throughout his presidency. They’re also calling on him to stop the expansion of export infrastructure for liquefied natural gas.

If Biden wants to make any sort of claim to be a climate champion, he’ll take those steps. But ultimately, it will be up to the rest of us to watch what Trump is doing and fight for better climate policies in our own states and communities.

Otherwords.org

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In Sunny Spain, cheap Solar Power set to overtake Wind Generation, backed by Socialist Government and Co-ops https://www.juancole.com/2024/11/generation-socialist-government.html Fri, 29 Nov 2024 05:15:11 +0000 https://www.juancole.com/?p=221786 Ann Arbor (Informed Comment) – Spain’s photovoltaic electricity production is set to surpass its wind power, according to China’s Xinhua news agency.

Spain is Europe’s champion at producing solar power, because some of its regions are especially sunny — think Seville. The Global Energy Monitor puts it this way: “The country has more utility-scale solar capacity in operation (29.5 GW) than any other European nation, and more capacity under construction (7.8 GW), and in early stages of development (106.1 GW) than the next three European countries combined.” They have 100 gigawatts of solar in development! That is all the solar capacity the US has now, and it is a much bigger and wealthier country.

Germany comes in second in Europe with 24.6 gigawatts of industrial-scale solar.

So far this year, renewables account for 57.5 percent of electricity in Spain, which is remarkable for an industrial democracy. Renewables only make 26% of American electricity, so Spain is doing twice as well as we are. Spain wants to get 74% of its electricity from renewables by 2030.

Wind power provides 22.4 percent of Spain’s electricity, while solar is at 18.3 percent. Solar, however, is rapidly building out.

Spain has already produced more renewable energy by November this year than it did in the full 12 months of 2023, and production is up 13%. And, this is the second year in a row that renewables produced more electricity for Spain than did fossil fuels.

All this is not an accident. The Socialist government of Pedro Sánchez has an industrial policy when it comes to green energy. He credits outgoing Minister for the Ecological Transition and Demographic Challenge (MITECO), Teresa Ribera Rodríguez, as having spearheaded the expansion of renewables since 2018, leading to some of Europe’s lowest electricity prices for consumers. Sunlight and wind are free, so once you have built the means to capture them, electricity generation is low-cost. This is especially true at a time when the Ukraine War has caused fossil gas prices to increase substantially, hurting countries dependent on it. Ribera is on her way to Brussels to serve on the European Commission, with portfolios in competitive practices and the environment.

In contrast, when they were in power Spain’s conservatives actually put a punitive tax on rooftop solar to benefit the fossil fuel corporations to which they are close.

All the research demonstrates that Socialist democracies make people happier than other systems, and now it turns out they are better for the health of the earth, as well.

Elections matter. But so do civil society initiatives. People are forming cooperatives to share the output of solar installations. Even football (soccer) teams have done this with solar panels at their stadiums.

Spanish utilities are increasingly creating hybrid solar parks that incorporate wind turbines and batteries, as well, to ensure steady power once the sun goes down. Spain has about 1 gigawatt worth of battery storage projects under review, and has a goal of 22.4 gigawatts of battery capacity by 2030 — a deadline that some experts believe the country will easily beat.

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Bonus video added by Informed Comment:

TRT World: “60% of electricity in Spain comes from renewable energy”

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Consumer Solar Surge: Pakistan Shows you Don’t Need Government Programs to Green the Grid https://www.juancole.com/2024/11/consumer-pakistan-government.html Thu, 28 Nov 2024 05:15:22 +0000 https://www.juancole.com/?p=221767 Ann Arbor (Informed Comment) – While no one was looking, the Pakistani public took matters into their own hands, adding 17 gigawatts of solar power this year. These installations are mostly in the form of Chinese panels for rooftop or ground level solar in towns and villages.

Pakistan has abruptly become the world’s sixth-largest consumer of solar panels.

Here’s the thing. Pakistan has less than 50 gigawatts of electricity capacity in total! So they are putting in over a third of that in the form of solar just in one year. And this is not being spear-headed by the government, which is in disarray.

What we have to underline is that this remarkable solar gold rush is the work of ordinary consumers and private businesses and not government industrial policy. It shows that governmental inaction, of the sort so starkly on display at COP 29 in Baku and of the sort we may expect from the incoming president, Donald Trump, may not be a fatal obstacle to our saving the earth from a chaotic, torrid climate. The world’s people may demand clean solar, not because they understand climate change or are primarily driven by that consideration but because the cost of solar goes on plunging much faster than most analysts can now imagine. China’s government put $130 billion into its solar industry in 2023, and the technology responds to that kind of R&D money with big strides in efficiency and cost savings. And we are only at the beginning of this transformation.

DW’s Charli Shield tells the story of Shafqat Hussain, whose mother almost died during a summer heat wave — and what else is summer in South Asia? — when their government-supplied power went out. Such outages, called “load shedding” in Pakistan, are common. His mother had to go to hospital with heat stroke.

So the Hussain family put in solar. She quotes Shafqat Hussain as saying, “When you don’t have any electricity, forget about the air conditioning. Your fans are not working. You don’t have refrigerators on. You don’t even have any cold water to drink.”

The family’s energy bill has nose-dived by 80% and they no longer suffer from brown-outs or black-outs of electricity, gaining what she says Hussain called a “sense of safety.”

Pakistan’s politics is messy, dominated by two great political dynasties that are often at daggers drawn, and by a populist insurgent, former cricket star Imran Khan, who was jailed by the corrupt dynasties, throwing the country into turmoil. People have been in the streets this week in large numbers demanding Imran Khan’s release, and the army shot some down, raising the specter of further instability.

Americans don’t hear much about Pakistan, but it is a major player. At 240 million, it is the world’s fifth most populous country. It is the world’s 24th biggest economy by purchasing power GDP, though only the 46th nominally. In nominal terms, its economy is in the same ballpark as Egypt’s and South Africa’s. Its military is ranked 9th in the world, and it is a nuclear power.

In 2020, Chinese solar modules cost $240 per kilowatt, but they plummeted to $110 per kilowatt this year, as the post-COVID polysilicon shortages eased and the industry was hit with overproduction. That translates into about 11 cents per watt. China put out 310 gigawatts of cells in the first half of this year, representing an increase of over a third from the previous year. At the beginning of 2024, China already had 4/5ths of the world’s solar module manufacturing capacity. In general, the cost of solar pv modules has fallen 90% since 2010.

In fact, China is betting the farm on green energy. Wood McKenzie notes, “The government has identified the “new three” export industries – solar, EVs and batteries – as critical for its strategy of strengthening economic growth in the face of headwinds from past over-investment in property and high levels of debt.”

Although tariffs keep Chinese panels out of the US even under Biden, it is a big world out there. If Trump, knee-caps the US solar panel industry and hurts the value of the Chinese yuan, it would have the effect of making China’s panels cheaper and of removing a great deal of competition, cementing Beijing’s continued dominance in this field.

Pakistan imports most of the fuel it uses to generate electricity and after rate hikes this summer it has some of the higher electricity costs in Asia, far more than in neighboring India or in Bangladesh. Costs of electricity to businesses in Pakistan are especially high, giving them an impetus to install solar panels.

There are lots of potential problems with Pakistan’s solar boom. As customers desert the big utilities, they have to raise prices for everyone else, and many installations depend on steady energy generation to work — but some of them are having to shut down and then slowly come on line when needed. The government of Prime Minister Shehbaz Sharif could become sufficiently alarmed to put obstacles in the way of further panel imports. But what the Pakistani public is demonstrating is that people want and need electricity and will find a way to get it cheaply. Coal and fossil gas can no longer provide it. Coal is 9.5 cents a kilowatt hour in a lot of places, and gas is 6.5 cents per KWh. But in Pakistan solar can be 3.5 cents per kilowatt hour. Ironically, these fossil fuels are heating up the earth so fast that people absolutely need air conditioning, as Shafqat Hussain discovered. And it is increasingly solar and wind that can provide cheap air conditioning that doesn’t just make things worse. I wouldn’t advise governments to stand in the way of families rescuing their grandmas from heat stroke.

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Bonus video:

Bloomberg TV: “Pakistan’s Solar Boom Helps Millions, But Harms Grid”

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Morocco to double Green Energy in Sahara in anticipation of 2030 World Cup https://www.juancole.com/2024/11/morocco-double-anticipation.html Sun, 17 Nov 2024 05:15:40 +0000 https://www.juancole.com/?p=221562 Ann Arbor (Informed Comment) – The World Cup, disputed territory and green energy are three of the things that increasingly make the world go round, and they are coming together in Morocco. Trump son-in-law Jared Kushner is even in the background of it all.

Morocco’s Atalayer reports that Rabat will attempt to double sustainable energy generation in the Sahara by 2030.

What is so special about 2030? It is the soccer World Cup centenary, a World Cup for the ages. The first World Cup was held in Uruguay in 1930.

Spain, Portugal and Morocco jointly submitted the successful bid as hosts that year, with each country providing 6 or 7 stadiums. For Morocco, this success boosts its prestige in the Arab world and Africa. Countries fight tooth and nail over this honor. Qatar’s successful bid for the 2022 World Cup was one of the reasons Saudi Arabia and the United Arab Emirates imposed an economic boycott on it 2017-2020. They were that jealous.

So Morocco wants literally to shine in 2030, by showing off its impressive progress toward greening its grid.

Morocco gets 44% of its electricity from renewables, up from 37% only 3 years ago. It has about 4.6 gigawatts of green energy.

About 1.3 GW of Morocco’s wind and solar plants are sited in the Western Sahara, a region Morocco absorbed in 1975-1979 when Spanish colonialism there ended. Some of the Amazigh tribes there had long ties with the Moroccan monarchy before the 1884 Spanish conquest. Some of the 600,000 people in Western Sahara, however, weren’t happy to become part of Morocco, and the POLISARIO party has long led a movement for independence.

But Morocco is a country of 38 million people, and its military is the 5th most powerful in Africa. So it has gradually made its claims stick, de facto. Moreover, most economists don’t consider the Western Sahara to have the makings of a viable independent country. What is important is that they have a democratic say in their own affairs.

Plus the Trump family helped the Moroccan government in this endeavor.

The Trump family?

Yes, Kushner persuaded Morocco to join the Abraham Accords recognizing Israel. In return, the United States recognized the Moroccan claim on the Western Sahara.

And now that it was the U.S. position, French President Emmanuel Macron swung around and also recognized the territory as Moroccan.

Billionaire Moroccan Prime Minister Aziz Akhannouch intends to install another 1.4 gigawatts of wind and solar capacity into the Sahara. Integrating the territory into the country’s green energy grid is one of the ways Rabat is weaving it into the fabric of the country’s economy.

Akhannouch will put $2.1 billion into these projects, and they will generate green energy jobs for the local population.

The entire episode demonstrates the ways in which renewable energy is increasingly intertwined with nation-building projects, with all their virtues and vices.

Bonus video added by Informed Comment:

The World’s Largest Concentrated Solar Power Plant | A Brief History of the Future | PBS

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China opens World’s Largest offshore Solar Power Facility, as U.S. Falls Farther Behind https://www.juancole.com/2024/11/largest-offshore-facility.html Fri, 15 Nov 2024 05:15:22 +0000 https://www.juancole.com/?p=221513 Ann Arbor (Informed Comment) – Solar panels are great sources of energy. We have them on our roof and they have saved us a lot of money, especially in spring-summer-fall. Some observers complain about their bulk compared to the energy they put out, though. I’ve had engineers argue to me that there just isn’t space for all the solar panels that would be needed to green the American energy grid.

Since I study the Middle East, I’ve had to learn about energy markets and security. One time about a decade ago I was doing some energy consulting with the Japanese Ministry of Economy, Trade and Industry (METI). Japan had had to deal with the closure of many of its nuclear plants after the Fukishima disaster by importing Liquefied Natural Gas (LNG) from the Middle East. They were nervous about the security of the region, though. I told my Japanese colleagues that they would be better off going in for wind and solar. One replied that Japan had very little land available for solar farms. I don’t know how sincere this reply was. I think those bureaucrats were just wedded to nuclear power. In fact, Japan now has over 87 gigawatts of solar power. It has been adding about 6 gigs of solar a year recently.

One solution to this problem that is increasingly being tried out is agrovoltaics, putting solar panels on farms but in such a way that they help crops grow. So far in the US, most agrovoltaic set-ups are for sheep raising, since grass can grow under the panels. In fact, the panels help the grass thrive in hot, sunny environments by providing shade and allowing retention of moisture, which is also good for “tomatoes, turnips, carrots, squash, beets, lettuce, kale, chard, and peppers.”

Solar panels are rapidly becoming more efficient, which will allow this form of energy to produce electricity while taking up less space.

In the meantime, another possible solution is to put the solar panels on floating platforms. Japan has put them on lakes, for instance.

The panel arrays can also be placed offshore. Fish and other marine life like structures such as the steel truss platform piling used for China’s offshore solar farms. It gives them places to hide from predators, e.g.

China is the most advanced solar society in the world with over 600 gigawatts of installed solar capacity, which saves the country billions of dollars a year over paying for imported fossil gas. The US is in comparison backward, only having about 130 GW of solar.

It is therefore no surprise that Beijing has, as Aman Tripathi reports, just connected to high capacity transmission wires the world’s large offshore solar plant off the coast of Shandong Province, a 1-gigawatt facility. The facility also does fish farming.

The nearly 3,000 photovoltaic platforms are attached to fixed pilings in the sea floor and are spread over an area of some 4 square miles. It will generate enough power to provide electricity to 2.6 million people.

And this installation is only the beginning. China is aiming to have 60 gigawatts of offshore solar in only 3 years from now — an incredible build-out if it happens.

China also already has 61 gigawatts of offshore wind capacity.

Wind, water, solar and battery are clearly the way forward on meeting the world’s power needs while avoiding massive carbon pollution. Solar plus battery in my view has the greatest potential over the medium to long term. The issue of where to put the PV panels is not in my view a very serious problem. If there is a will to use them to cut carbon dioxide production, as there is in China, then places will be found to put them — as China is demonstrating.

And by the way, if the US government under the incoming Trump administration puts roadblocks in the way of solar power, it will just accelerate American decline and help propel China further toward great power status. The future is solar panels and electric vehicles, and China is already eating our lunch on those two. If that goes on for a while, we’ll be poor, breathing dirty air, and paying trillions for climate catastrophes, while China replaces us as the world’s leading superpower.

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Bonus video added by Informed Comment:

News.Com.Au : “China’s Massive 1-gigawatt Offshore Solar Cell Platform Now Connected To The Grid”

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Germany: For First time, Wind and Solar Power Generation exceeds Fossil Fuels https://www.juancole.com/2024/11/germany-generation-exceeds.html Thu, 07 Nov 2024 05:15:06 +0000 https://www.juancole.com/?p=221397 Ann Arbor (Informed Comment) – The Ember energy analysis firm reports that for the first nine months of 2024, Germany generated more electricity from wind and solar than from fossil fuels for the first time in history. Wind and solar combined accounted for 45 percent of electricity.

All in all, 59% of German electricity, almost six tenths, has come from renewables this year, with hydro the main source aside from wind and solar. In 2023, renewables only accounted for 52% of Germany electricity, so there has been a substantial advance. Half of that advance came from new solar installations, Ember says.

An amazing 11 gigawatts of new solar capacity has been added this year. As of mid-summer, Germany had 92 gigawatts of installed solar capacity, exceeding its 2024 goal of 88 GW.

Through the end of July, fossil fuel electricity generation plummeted 14.5% from the same period in 2024, reaching the lowest levels on record. The consumption of coal, the dirtiest fossil fuel, fell by 39% through September of this year compared to the same months in 2023.

Germany’s carbon emissions dropped by 10% in 2023 compared to the previous year, and are expected to fall again this year. If all industrialized countries met Germany’s performance, the climate crisis would be less severe. Energy-related carbon emissions in the US. fell last year, but only by 3%.

The rapid advance of solar, Ember explains, is the result of government policy changes, including the reduction in bureaucracy and easier permitting and “simplified grid connection for small PV systems,” as well as better remuneration for consumers who sell their electricity back into the grid.


“German Solar,” Digital, Dream / Dreamland v3 / Clip2Comic, 2024

Wind installations kept pace with those of the previous year, at 2.3 gigawatts. Wind-generated electricity was up 7% this year. Although wind’s progress was not as spectacular as that of solar, it still did make impressive advances, and there is a lot of capacity in the pipeline. Germany won’t quite meet its goals for total wind installations of 80 gigawatts this year, but those goals are the most ambitious in the European Union.

Winds have been anemic in the summer and fall, but are expected to pick up in the last two months of the year. Wind has had to be replaced with expensive fossil gas for the moment. Emissions will likely still fall, since electricity demand is lower. Wind plus battery will smooth out some of these fluctuations in the future.

There are also legal reasons for which wind will advance even more in future. Ember writes, “The German government has declared renewables to be in the overriding public interest, a privileged legal status which unlocks faster permitting and simplified procedures. Furthermore, German states are now required to allocate around 2% of their land for wind turbines.”

Ember doesn’t say so, but battery capacity is also rapidly increasing in Germany, where battery storage reached 9.9 gigawatts so far in 2024. Reuters reports that grid battery capacity in the country is up by 1/3 in 2024, an incredible advance. In the next two years, through the end of 2026, battery storage in Germany is set to increase five-fold, according to Clean Energy Wire. Battery storage allows solar energy to be captured during daylight and released at night.

CEW adds that “more than 80 percent of smaller photovoltaic rooftop systems are already being installed in combination with battery storage systems.” That combination is not nearly as common in the United States, but it should be.

Two big issues loom over Germany’s energy situation. One is the closure of the country’s nuclear plants at the insistence of the Green Party, which has been in government off and on (it is part of the present shaky coalition). Despite predictions of gloom and doom, the transition to wind, solar and battery has gone well.

Clean Energy Wire observes, “Decades of debates came to an end in April 2023, when Germany finally shuttered its last nuclear power plants after the energy crisis. One year on, predictions of supply risks, price hikes and dirty coal replacing carbon-free nuclear power have not materialised. Instead, Germany saw a record output of renewable power, the lowest use of coal in 60 years, falling energy prices across the board and a major drop in emissions.”

The other issue is the Ukraine War and Germany’s attempt to wean itself off Russian fossil gas. Germany cut its natural gas imports by nearly a third last year, and is pressing the EU to end imports of gas from Russia, still 20% of Europe’s usage. There isn’t any doubt that replacing both nuclear and fossil gas with wind, water, solar and battery is saving Germany money and allowing it energy independence from Russia.

In 2025, as Trump comes back into office, Americans should remember the cost savings offered by renewables, the environmental benefits of reducing carbon emissions and avoiding climate catastrophes, and the significance of energy independence for the US and its allies. Germany has overtaken Japan to become the world’s third largest economy.

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China’s Green Energy Wave enters the Middle East https://www.juancole.com/2024/10/chinas-energy-enters.html Fri, 18 Oct 2024 04:15:58 +0000 https://www.juancole.com/?p=221056 London (Special to Informed Comment; Feature) – Facing rising trade barriers and diplomatic tensions with the US and the EU, Chinese renewable energy companies are turning to Middle Eastern states as an alternative market for goods including electric vehicles (EVs), lithium-ion batteries, and solar panels. The US, the EU and Canada have all imposed tariffs on Chinese EVs, amid accusations that Beijing is dumping excess Chinese production overseas and using unfair subsidies. “Global markets are now flooded with cheaper [Chinese] electric cars. And their price is kept artificially low by huge state subsidies,” European Commission President Ursula von der Leyen said in September last year.

The EU has begun a probe into Chinese wind turbine companies. Then-Commission Executive Vice-President for Competition Margarethe Vestager warned that a wave of subsidised Chinese wind turbine exports: “is not only dangerous for our competitiveness. It also jeopardises our economic security.” The EU remains scarred by its loss of a trade war to China over the bloc’s solar power industry a decade earlier. Western governments and activists have also expressed concerns that China’s green sector is tied to human rights abuses like forced labour in Xinjiang.

In the Middle East, however, many governments remain open to Chinese green sector exports and have struck commercial agreements to gain investment from its major firms. In July, Saudi Arabia’s Public Investment Fund struck joint investment deals with Chinese solar power companies Jinko Solar and TCL Zhonghuan. Meanwhile, Saudi investment business ALGIHAZ signed a contract to build an energy storage facility with Chinese company Sungrow. The Australian Griffith Asia Institute calculated that altogether Chinese firms worked on green energy projects across the Middle East worth about $9.5 billion over 2018-2023.

Middle Eastern States Piggyback Off China

China’s government and Chinese state-owned or state-linked companies have been able to offer commercial and political advantages to Middle Eastern governments seeking to decarbonize their economies. Western engineering and manufacturing firms’ projects are regulated by numerous rules intended to prevent corruption, environmental harm and other negative development outcomes. Chinese companies under the direction of the ruling Chinese Communist Party (CCP) face no such restraints, though the quality of the infrastructure they have produced under China’s signature Belt & Road Project (BRI) initiative has varied. For autocratic Middle Eastern governments like the Gulf monarchies, however, Chinese companies have the ability to build high-technology critical infrastructure without the need to appease external stakeholders like the human rights groups or independent media outlets found in Western countries.


“Xi of Arabia,”

Chinese companies are also generally happy to operate in a Middle Eastern business environment that still often relies on patronage to get deals done. The CCP has cultivated particularly close ties with Saudi Arabia, the UAE, Iran, Egypt, and Algeria, with whose governments Beijing has signed comprehensive strategic partnerships (the most elevated type of bilateral agreement with China). These relationships have borne increasing fruit as the BRI has matured and new technology has widened the appeal of clean energy and other green industries. Petrostates like Saudi Arabia have belatedly woken up to the threat of climate change and their own potential ability to take advantage of clean energy like solar power.

Doing Deals to Decarbonize

Chinese President Xi Jinping met with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Beijing in June. Xi promised his government would cooperate more closely with the Arab country on a range of industries including “information technology, artificial intelligence, the digital economy, and new energy.” China was already the UAE’s biggest trading partner in 2022 while the Arab state was Beijing’s biggest Arab trading partner, the UAE’s economy ministry said in 2023. While renewable energy development is only one aspect of the burgeoning diplomatic and trading relationship between the two sides, it is an important consideration for the UAE and its Net Zero 2050 strategy to decarbonize the country’s economy. Given China’s private sector is subordinate to the political aims of the ruling CCP, further Chinese green investment is likely to flow to the UAE in 2025. The UAE is also investing in renewables in East Asia, with its green energy firm Masdar aiming to install 2 gigawatts of renewable power in ASEAN countries by 2025. The firm was invited by the Philippines government to invest in Manila’s green sector too.

In May, the UAE’s Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, said “new energy” and “critical minerals” were among the areas the country was interested in engaging with Beijing. Chinese CEOs held meetings with UAE officials in July following the UAE president’s state visit to discuss bilateral cooperation in various areas, including solar power and renewable energy. The UAE’s example is being replicated by other Middle Eastern governments with whom China has cultivated close relations. At the Forum on China-Africa Cooperation in September, Egypt signed agreements worth more than $1.1 billion with Chinese companies, which included the country’s first green chemical plant. China’s Befar Group will build a $500 million facility powered energy sources including natural gas, wind and solar energy. A second deal involves the creation of a $100 million solar panel factory. Chinese companies are building solar power plants in Algeria and becoming investors and co-investors in Saudi and UAE solar and wind projects as these two countries decarbonise their power grids.

China Seeks to Refute Dumping Narratives

Meanwhile, Middle Eastern demand for Chinese clean energy infrastructure and products allows Beijing to claim it is not engaged in overproduction in sectors like EV manufacturing or renewable energy products and dumping the resulting excess on foreign markets. Much criticism of Chinese trade practices in the country’s green industries has come from the US and other Western governments. Treasury Secretary Janet Yellen said in April that excess Chinese manufacturing capacity in sectors like EVs and solar panels was intensifying. Chinese state media and CEOs like the head of vehicle manufacturer Great Wall Motor International have denied this, although non-Western countries like Turkey have also imposed tariffs on Chinese exports like EVs. China has taken Turkey to the World Trade Organization in response.

Trade tensions between China and governments under pressure to restrict Chinese green technology exports are likely to endure in many parts of the world. In the Middle East, however, Beijing and local regimes continue to discover synergies between their development needs. China’s sluggish economy and growing trade tensions with the Global North have left it in need of new markets for its goods. Meanwhile, Middle Eastern governments need the country’s know-how and deep pockets if they are to overhaul their own 20th-century fossil fuel infrastructure and create new jobs in the emerging green economies of the 21st century. 

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The New Climate Colonialism https://www.juancole.com/2024/10/the-climate-colonialism.html Fri, 11 Oct 2024 04:02:57 +0000 https://www.juancole.com/?p=220925 ( Tomdispatch.com ) – Considered Angola’s crown jewel by many, Lobito is a colorful port city on the country’s scenic Atlantic coast where a nearly five-kilometer strip of land creates a natural harbor. Its white sand beaches, vibrant blue waters, and mild tropical climate have made Lobito a tourist destination in recent years. Yet under its shiny new facade is a history fraught with colonial violence and exploitation.

The Portuguese were the first Europeans to lay claim to Angola in the late sixteenth century. For nearly four centuries, they didn’t relent until a bloody, 27-year civil war with anticolonial guerillas (aided by the Cuban Revolutionary Armed Forces) and bolstered by a leftist coup in distant Lisbon, Portugal’s capital, overthrew that colonial regime in 1974.

Lobito’s port was the economic heart of Portugal’s reign in Angola, along with the meandering 1,866-kilometer Benguela Railway, which first became operational in the early 1900s. For much of the twentieth century, Lobito was the hub for exporting to Europe agricultural goods and metals mined in Africa’s Copperbelt. Today, the Copperbelt remains a resource-rich region encompassing much of the Democratic Republic of Congo and northern Zambia.

Perhaps it won’t shock you to learn that, half a century after Portugal’s colonial control of Angola ended, neocolonialism is now sinking its hooks into Lobito. Its port and the Benguela Railway, which travels along what’s known as the Lobito Corridor, have become a key nucleus of China’s and the Western world’s efforts to transition from fossil fuels to renewable energy sources in our hot new world. If capitalist interests continue to drive this crucial transition, which is all too likely, while global energy consumption isn’t scaled back radically, the amount of critical minerals needed to power the global future remains unfathomable. The World Economic Forum estimates that three billion tons of metals will be required. The International Energy Forum estimates that to meet the global goals of radically reducing carbon emissions, we’ll also need between 35 and 194 massive copper mines by 2050.

It should come as no surprise that most of the minerals from copper to cobalt needed for that transition’s machinery (including electric batteries, wind turbines, and solar panels) are located in Latin America and Africa. Worse yet, more than half (54%) of the critical minerals needed are on or near Indigenous lands, which means the most vulnerable populations in the world are at the most significant risk of being impacted in a deeply negative fashion by future mining and related operations.

When you want to understand what the future holds for a country in the “developing” world, as economists still like to call such regions, look no further than the International Monetary Fund (IMF). “With growing demand, proceeds from critical minerals are poised to rise significantly over the next two decades,” reports the IMF. “Global revenues from the extraction of just four key minerals — copper, nickel, cobalt, and lithium — are estimated to total $16 trillion over the next 25 years. Sub-Saharan Africa stands to reap over 10 percent of these accumulated revenues, which could correspond to an increase in the region’s GDP by 12 percent or more by 2050.”

Sub-Saharan Africa alone is believed to contain 30% of the world’s total critical mineral reserves. It’s estimated that the Congo is responsible for 70% of global cobalt output and approximately 50% of the globe’s reserves. In fact, the demand for cobalt, a key ingredient in most lithium-ion batteries, is rapidly increasing because of its use in everything from cell phones to electric vehicles. As for copper, Africa has two of the world’s top producers, with Zambia accounting for 70% of the continent’s output. “This transition,” adds the IMF, “if managed properly, has the potential to transform the region.” And, of course, it won’t be pretty.

While such critical minerals might be mined in rural areas of the Congo and Zambia, they must reach the international marketplace to become profitable, which makes Angola and the Lobito Corridor key to Africa’s booming mining industry.

In 2024, China committed $4.5 billion to African lithium mines alone and another $7 billion to investments in copper and cobalt mining infrastructure. In the Congo, for example, China controls 70% of the mining sector.

Having lagged behind that country’s investments in Africa for years, the U.S. is now looking to make up ground.

Zambia’s Copper Colonialism

In September 2023, on the sidelines of the G20 meeting in India, Secretary of State Antony Blinken quietly signed an agreement with Angola, Zambia, the Democratic Republic of Congo, and the European Union to launch the Lobito Corridor project. There wasn’t much fanfare or news coverage, but the United States had made a significant move. Almost 50 years after Portugal was forced out of Angola, the West was back, offering a $4 billion commitment and assessing the need to update the infrastructure first built by European colonizers. With a growing need for critical minerals, Western countries are now setting their sights on Africa and its green energy treasures.

“We meet at a historic moment,” President Joe Biden said as he welcomed Angolan President João Lourenço to Washington last year. Biden then called the Lobito project the “biggest U.S. rail investment in Africa ever” and affirmed the West’s interest in what the region might have to offer in the future. “America,” he added, “is all in on Africa… We’re all in with you and Angola.”

Both Africa and the U.S., Biden was careful to imply, would reap the benefits of such a coalition. Of course, that’s precisely the kind of rhetoric we can expect when Western (or Chinese) interests are intent on acquiring the resources of the Global South. If this were about oil or coal, questions and concerns would undoubtedly be raised regarding America’s regional intentions. Yet, with the fight against climate change providing cover, few are considering the geopolitical ramifications of such a position — and even fewer acknowledging the impacts of massively increased mining on the continent.

In his book Cobalt Red, Siddharth Kara exposes the bloody conditions cobalt miners in the Congo endure, many of them children laboring against their will for days on end, with little sleep and under excruciatingly abusive conditions. The dreadful story is much the same in Zambia, where copper exports account for more than 70% of the country’s total export revenue. A devastating 126-page report by Human Rights Watch (HRW) from 2011 exposed the wretchedness inside Zambia’s Chinese-owned mines: 18-hour work days, unsafe working environments, rampant anti-union activities, and fatal workplace accidents. There is little reason to believe it’s much different in the more recent Western-owned operations.

“Friends tell you that there’s a danger as they’re coming out of shift,” a miner who was injured while working for a Chinese company told HRW. “You’ll be fired if you refuse, they threaten this all the time… The main accidents are from rock falls, but you also have electrical shocks, people hit by mining trucks underground, people falling from platforms that aren’t stable… In my accident, I was in a loading box. The mine captain… didn’t put a platform. So when we were working, a rock fell down and hit my arm. It broke to the extent that the bone was coming out of the arm.”

An explosion at one mine killed 51 workers in 2005 and things have only devolved since then. Ten workers died in 2018 at an illegal copper extraction site. In 2019, three mineworkers were burned to death in an underground shaft fire and a landslide at an open-pit copper mine in Zambia killed more than 30 miners in 2023. Despite such horrors, there’s a rush to extract ever more copper in Zambia. As of 2022, five gigantic open-pit copper mines were operating in the country, and eight more underground mines were in production, many of which are to be further expanded in the years ahead. With new U.S.-backed mines in the works, Washington believes the Lobito Corridor may prove to be the missing link needed to ensure Zambian copper will end up in green energy goods consumed in the West.

AI Mining for AI Energy

The office of KoBold Metals in quaint downtown Berkeley, California, is about as far away from Zambia’s dirty mines as you can get. Yet, at KoBold’s nondescript headquarters, which sits above a row of trendy bars and restaurants, a team of tech entrepreneurs diligently work to locate the next big mine operation in Zambia using proprietary Artificial Intelligence (AI). Backed by billionaires Bill Gates and Jeff Bezos, KoBold bills itself as a green Silicon Valley machine, committed to the world’s green energy transition (while turning a nice profit).

It is in KoBold’s interest, of course, to secure the energy deposits of the future because it will take an immense amount of energy to support their artificially intelligent world. A recent report by the International Energy Agency estimates that, in the near future, electricity usage by AI data centers will increase significantly. As of 2022, such data centers were already utilizing 460 terawatt hours (TWh) but are on pace to increase to 1,050 TWh by the middle of the decade. To put that in perspective, Europe’s total energy consumption in 2023 was around 2,700 TWh.

“Anyone who’s in the renewable space in the western world… is looking for copper and cobalt, which are fundamental to making electric vehicles,” Mfikeyi Makayi, chief executive of KoBold in Zambia, explained to the Financial Times in 2024. “That is going to come from this part of the world and the shortest route to take them out is Lobito.”

Makayi wasn’t beating around the bush. The critical minerals in KoBold mines won’t end up in the possession of Zambia or any other African country. They are bound for Western consumers alone. KoBold’s CEO Kurt House is also honest about his intentions: “I don’t need to be reminded again that I’m a capitalist,” he’s been known to quip.

In July 2024, House rang his company’s investors with great news: KoBold had just hit the jackpot in Zambia. Its novel AI tech had located the largest copper find in more than a decade. Once running, it could produce upwards of 300,000 tons of copper annually — or, in the language investors understand, the cash will soon flow. As of late summer 2024, one ton of copper on the international market cost more than $9,600. Of course, KoBold has gone all in, spending $2.3 billion to get the Zambian mine operable by 2030. Surely, KoBold’s investors were excited by the prospect, but not everyone was as thrilled as them.

“The value of copper that has left Zambia is in the hundreds of billions of dollars. Hold that figure in your mind, and then look around yourself in Zambia,” says Zambian economist Grieve Chelwa. “The link between resource and benefit is severed.”

Not only has Zambia relinquished the benefits of such mineral exploitation, but — consider it a guarantee — its people will be left to suffer the local mess that will result.

The Poisoned River

Konkola Copper Mines (KCM) is today the largest ore producer in Zambia, ripping out a combined two million tons of copper a year. It’s one of the nation’s largest employers, with a brutally long record of worker and environmental abuses. KCM runs Zambia’s largest open-pit mine, which stretches for seven miles. In 2019, the British-based Vedanta Resources acquired an 80% stake in KCM by covering $250 million of that company’s debt. Vedanta has deep pockets and is run by Indian billionaire Anil Agarwal, affectionately known in the mining world as “the Metal King.”

One thing should be taken for granted: You don’t become the Metal King without leaving entrails of toxic waste on your coattails. In India, Agarwal’s alumina mines have polluted the lands of the Indigenous Kondh tribes in Orissa Province. In Zambia, his copper mines have wrecked farmlands and waterways that once supplied fish and drinking water to thousands of villagers.

The Kafue River runs for more than 1,500 kilometers, making it Zambia’s longest river and now probably its most polluted as well. Going north to south, its waters flow through the Copperbelt, carrying with them cadmium, lead, and mercury from KCM’s mine. In 2019, thousands of Zambian villagers sued Vedanta, claiming its subsidiary KCM had poisoned the Kafue River and caused insurmountable damage to their lands.

The British Supreme Court then found Vedanta liable, and the company was forced to pay an undisclosed settlement, likely in the millions of dollars. Such a landmark victory for those Zambian villagers couldn’t have happened without the work of Chilekwa Mumba, who organized communities and convinced an international law firm to take up the case. Mumba grew up in the Chingola region of Zambia, where his father worked in the mines.

“[T]here was some environmental degradation going on as a result of the mining activities. As we found, there were times when the acid levels of water was so high,” explained Mumba, the 2023 African recipient of the prestigious Goldman Environmental Prize. “So there were very specific complaints about stomach issues from children. Children just really wander around the villages and if they are thirsty, they don’t think about what’s happening, they’ll just get a cup and take their drink of water from the river. That’s how they live. So they’ll usually get diseases. It’s hard to quantify, but clearly the impact was there.”

Sadly enough, though, despite that important legal victory, little has changed in Zambia, where environmental regulations remain weak and nearly impossible to enforce, which leaves mining companies like KCM to regulate themselves. A 2024 Zambian legislative bill seeks to create a regulatory body to oversee mining operations, but the industry has pushed back, making it unclear if it will ever be signed into law. Even if the law does pass, it may have little real-world impact on mining practices there.

The warming climate, at least to the billionaire mine owners and their Western accomplices, will remain an afterthought, as well as a justification to exploit more of Africa’s critical minerals. Consider it a new type of colonialism, this time with a green capitalist veneer. There are just too many AI programs to run, too many tech gadgets to manufacture, and too much money to be made.

Tomdispatch.com

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