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41. Separating electricity from gas prices through Green Power Pools: Design options and evolution

Author:
Michael Grubb and Drummond Pike
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper develops a detailed proposal for an efficient way to channel the value of large-scale renewables, which have become much cheaper than gas-driven wholesale electricity prices, to consumers at ‘cost-plus’ prices. This would reduce the fiscal pressure on governments for market- wide subsidies and offer more stable support for consumers most in need. We detail how this ‘green power pool’ approach could interact with the wholesale market to ensure firm power, also bringing transparency to the cost of balancing the variable renewables output, and maintaining incentives for efficient supply and demand responses. We illustrate the approach with reference to the cost and volume trajectories of UK renewables backed by government CfDs, targeted initially to particular consumer groups, as a first step in a wider transition towards direct consumer access to cheap renewables.
Topic:
Climate Change, Energy Policy, Green Technology, Renewable Energy, and Energy Crisis
Political Geography:
United Kingdom and Europe

42. Energy Politics in the MENA Region: From Hydrocarbons to Renewables?

Author:
Valeria Talbot
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
After Russia's invasion of Ukraine and its weaponisation of natural gas supplies, energy security has become a top political priority for Europe. Given the Middle East and North Africa (MENA) region's abundant oil and gas resources, the European countries inevitably turned to the region to make up for the shortfall. This Report analyses the impact of Europe's "scramble for alternatives" on key MENA exporters of fossil fuels. Specific attention is attached to their prospects as short-term suppliers of fossil fuels while they set the stage for their green transition. How is the current energy crisis affecting the role of MENA hydrocarbons producers as Europe's energy suppliers? Which impact on energy relations among MENA countries? Which new prospects for their green transition?
Topic:
Security, Energy Policy, Renewable Energy, Hydrocarbons, and Green Transition
Political Geography:
Middle East and North Africa

43. North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6

Author:
John Coyne and Grace Stanhope
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Northern Australia Strategic Policy Centre’s latest report, North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6, is a series of articles published in The Strategist over the last six months, building on previous volumes by identifying critical intersections of national security, nation-building and Australia’s north. This issue, like previous volumes, includes a wide range of articles sourced from a diverse pool of expert contributors writing on topics as varied as maritime law enforcement, equatorial space launch, renewable energy infrastructure, rare earths and critical minerals, agriculture, Industry 4.0, advanced manufacturing, fuel and water security, and defence force posturing. It also features a foreword by the Honourable Madeleine King MP, Minister for Northern Australia. Minister King writes, “Northern Australia promises boundless opportunity and potential. It is the doorway to our region and key to our future prosperity.” The 24 articles propose concrete, real-world actions for policy-makers to facilitate the development, prosperity and security of Australia’s north. The authors share a sense that those things that make the north unique – its vast space, low population density, specific geography, and harsh investment environment – are characteristics that can be leveraged, not disadvantages.
Topic:
Defense Policy, National Security, Infrastructure, Law Enforcement, Space, and Renewable Energy
Political Geography:
Australia and Asia-Pacific

44. How renewable energy transitions impact power structures in local communities

Author:
Maria-Louise Clausen
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
International donors often see renewable energy transitions in fragile and conflict-affected states as a building block for peace and development. But donor-supported transitions to small-scale renewable energy generation can both mitigate and exacerbate local conflict dynamics and undermine the central state. In fragile and conflict-affected states, it is often difficult for the central authorities to protect large-scale energy infrastructure from attacks and sabotage, and thus guarantee long-term stability. Moreover, local communities often use fuel-driven generators to supplement the state-driven national grid, but national diesel supply lines are also vulnerable to disruptions. Consequently, international donors increasingly support small-scale renewable energy generation as a climate friendly alternative to centralised and state-led energy generation. Solar photovoltaic (PV) in particular has become a widely promoted, affordable and accessible technology for local energy generation.
Topic:
Security, Climate Change, Development, Water, Non State Actors, Governance, Inequality, Renewable Energy, and Energy Transition
Political Geography:
Global Focus

45. What Ukraine Taught NATO about Hybrid Warfare

Author:
Sarah J. Lohmann, Chuck Benson, Vytautas Butrimas, Georgios Giannoulis, and Gabriel Raicu
Publication Date:
11-2022
Content Type:
Special Report
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
Russia’s invasion of Ukraine in 2022 forced the United States and its NATO partners to be confronted with the impact of hybrid warfare far beyond the battlefield. Targeting Europe’s energy security, Russia’s malign influence campaigns and malicious cyber intrusions are affecting global gas prices, driving up food costs, disrupting supply chains and grids, and testing US and Allied military mobility. This study examines how hybrid warfare is being used by NATO’s adversaries, what vulnerabilities in energy security exist across the Alliance, and what mitigation strategies are available to the member states. Cyberattacks targeting the renewable energy landscape during Europe’s green transition are increasing, making it urgent that new tools are developed to protect these emerging technologies. No less significant are the cyber and information operations targeting energy security in Eastern Europe as it seeks to become independent from Russia. Economic coercion is being used against Western and Central Europe to stop gas from flowing. China’s malign investments in Southern and Mediterranean Europe are enabling Beijing to control several NATO member states’ critical energy infrastructure at a critical moment in the global balance of power. What Ukraine Taught NATO about Hybrid Warfare will be an important reference for NATO officials and US installations operating in the European theater.
Topic:
Security, NATO, Economics, Infrastructure, Cybersecurity, Renewable Energy, and Hybrid Warfare
Political Geography:
Russia, Ukraine, Eastern Europe, Central Europe, Western Europe, and Southeast Europe

46. COP27: Will Egypt Bring New Life to Climate Conferences?

Author:
Thibaud Voïta
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The COP26, held at the end of 2021 in Glasgow, was emphatically heralded as “the last best hope for the world to get its act together”. Many elements are pointing to a particularly difficult COP27, among which the unfinished work of the Glasgow COP, the worsening of the climate crisis, the tensions in the hydrocarbon markets, and the risks of economic recession. This COP in Sharm-El-Sheik is nevertheless the first hosted outside the European continent since 2016 and the first under the aegis of a rapidly changing UN Climate Change. It takes place on the African continent and, like the COP28 chaired by the United Arab Emirates, is held in a country that wants to be a hub for all types of energies. Therefore, the role of gas in the energy transition has become a central topic. Finally, African countries are pushing for a greater contribution from rich countries to the fight against climate change, especially regarding the financial adaptation, and the acceleration of implementation efforts (rather than announcements of new initiatives).
Topic:
Climate Change, European Union, Gas, Renewable Energy, Energy, and Green Transition
Political Geography:
North Africa and Egypt

47. Making Energy Resilient: State Strategies, Progress, and Opportunities

Author:
Morgan Higman
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Amidst energy transitions and the rising impacts of climate change, resilience is a growing part of state energy strategies. But there is relatively little consolidated information describing what states are doing to build adaptive capacities in the power sector. This report fills this gap. It examines how resilience is addressed in planning and policy resources from a selection of representative states. These resources describe anticipated hazards and vulnerabilities, use-cases for emerging clean energy technologies, and broader efforts to create new resilience institutions and authorities. Though resilience garners considerable policy attention, most state initiatives are not guided by well-defined performance goals or measures or a plan that provides an overarching vision for grid resilience. This paper highlights challenges in these areas and describes new, innovative, and replicable approaches to promote more complete and robust resilience strategies.
Topic:
Climate Change, Energy Policy, Governance, Renewable Energy, Resilience, and Strategic Interests
Political Geography:
Global Focus

48. Decarbonizing Aluminum: Rolling Out a More Sustainable Sector

Author:
William Alan Reinsch and Emily Benson
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
As the effects of climate change intensify, countries and industries alike are seeking new ways to decarbonize to meet emissions targets, avoid carbon border tariffs, and reduce energy costs. Today, energy use in industry is the number one contributor to global greenhouse gas (GHG) emissions. Therefore, decarbonization of heavy industry would have a direct and immediate impact on reducing GHG emissions and slowing climate change. Aluminum is the second most used metal in the world. Its applications are numerous and fundamental, from electrical transmission to defense and construction. Aluminum is also a key input in other goods that help reduce emissions, such as electric vehicles and energy-efficient buildings, meaning that decarbonizing aluminum can help industries that are playing a critical role in global climate efforts. This paper evaluates global progress on sectoral emissions reductions and assesses policies governments can pursue to accelerate decarbonization of the aluminum sector. The aluminum industry consists of three component segments: upstream aluminum, downstream aluminum, and recycled aluminum. The upstream aluminum sector is responsible for the sourcing of raw material components from mined bauxite that is then refined into alumina and smelted into aluminum. Aluminum production is usually accomplished in two phases. In the first stage, bauxite ore is refined to obtain aluminum oxide through the Bayer process. The Hall-Heroult process of smelting the aluminum oxide to release pure aluminum comprises the second stage. Upstream production of aluminum involves the mining of bauxite and refining it into alumina. The downstream segment refers to the production of semi-fabricated aluminum products and their use in a wide range of sectors, from manufacturing and automobiles to construction and consumer products. Aluminum not only offers durability, but also is lightweight and infinitely recyclable, meaning it has clear environmental benefits compared to other similar inputs, such as steel or plastic. While aluminum does offer some environmental benefits, producing it is carbon intensive. Aluminum production processes have changed very little since the 1800s, and many countries continue to rely on coal to produce the electricity required for aluminum production. Globally, the aluminum sector contributes roughly 2 percent of GHG emissions—equivalent to about 1.1 billion tons of carbon dioxide (CO2). Yet demand for aluminum is expected to increase by 50 to 80 percent by 2050. In 2019, the aluminum industry consumed 6 percent of all global coal-fired electricity, exceeding the total amount of coal-fired electricity generated in Europe. That same year, coal-fired electricity used in aluminum electrolysis produced 636 million tons of C02 emissions, or 58 percent of the sector’s carbon footprint. On average, 72 percent of GHG emissions from primary production of aluminum are from electricity, meaning greater use of renewable energy in aluminum production could significantly decrease the sector’s carbon output. According to the Intergovernmental Panel on Climate Change (IPCC), global CO2 emissions need to decrease by 45 percent by 2030 in order to keep global warming below the 1.5 degree threshold. By accelerating the deployment of renewables and designing policies that encourage and support the decarbonization of heavy industry, the private and public sectors can play key roles in helping to reduce carbon emissions, while also continuing to grow the global economy.
Topic:
Climate Change, Energy Policy, Renewable Energy, and Carbon Emissions
Political Geography:
Global Focus

49. The EU’s Plan to Scale up Renewables by 2030: Implications for the Power System

Author:
Susanne Nies
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The climate and geopolitical crises call for speeding up the implementation of the European Green Deal around two main pillars: reducing energy consumption and investing in low-carbon alternatives. The swift and massive deployment of renewable energies (REN) is a major industrial challenge for the European electricity system. • Scaling up renewable energy (REN) is paramount for climate protection and energy security, but it is also a major industrial challenge for the European Union (EU). The REPowerEU plan requires multiplying the installed capacity for solar photovoltaic (PV) power by a factor of 3 and raising wind capacity by a factor of 2.5 in less than 8 years from now. • To achieve such ambitious targets, permit-granting and administrative processes need to be streamlined, while greater consistency between environmental and climate legislation is required for both REN and related infrastructure. • The precondition for massive REN deployment is an efficient and flexible energy system. The latter needs to be enforced throughout the Fit for 55 Package, and through European and national energy “system” development plans. • The EU’s REN ambitions – those related to offshore wind in particular – are disruptive in terms of technology needs, investments, as well as governance. Interim steps as well as regional and national strategies must be developed accordingly.
Topic:
Climate Change, European Union, Renewable Energy, and Energy
Political Geography:
Europe

50. Shift to renewable energy could be a mixed blessing for mineral exporters

Author:
Cullen S. Hendrix
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The world’s transition to sustainable energy systems has suddenly become a boon to countries rich in critical minerals used in clean energy technologies like rechargeable batteries, solar panels, wind turbines, and electric vehicles. Among these critical minerals are aluminum, coltan, copper, aluminum, zinc, tin, rare earths, lithium, tantalum, and cobalt. Given that these minerals are key to building sustainable energy systems, vital for ensuring military might, and often extremely valuable, will countries with large, exportable endowments of these minerals fall prey to the resource curse? Hendrix says these countries may find their newfound wealth to be a mixed blessing. The size of the markets for these resources and their marginal production costs suggest that they do not have the potential to generate massive rents the way that oil and gas production have. Given that these rents are the source of many ills—authoritarianism, reduced investment in human capital, poor human rights records—this is good news. But because several of these minerals can be mined artisanally, they may lead to governance challenges related to armed conflict. Their status as strategic resources will invite major power meddling and interventions—but only if mineral-rich economies are forced to align themselves and access to their resources with a major power, like the United States or China. The 20th century’s scramble to secure oil resources led to cursed dynamics in oil-rich societies, but historical precedent is not destiny. Mineral-rich countries may avoid the resource curse, especially if they develop diverse investment and trading relationships to balance major power interests in their mineral wealth and embrace industry- and civil society–led good governance initiatives around mineral resources.
Topic:
Economy, Exports, Renewable Energy, Sustainability, and Minerals
Political Geography:
Global Focus