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					</table><p>Renewable capacity grew by 9.6% in 2022, adding a record 295 GW worldwide. This accounts for 83% of all power capacity added last year and brings the global renewable generation capacity to 3,372 GW by the end of last year, a report by the International Renewable Energy Agency (<a href="https://www.irena.org/" target="_blank" rel="noopener">IRENA</a>) said.</p>
<p>The IRENA&#8217;s Renewable Capacity Statistics 2023 confirmed that renewable energy is growing at record levels, defying global uncertainties and affirming the decline of fossil-fuelled power generation.</p>
<p>“The strong business case of renewables coupled with enabling policies has sustained an upward trend of their share in the global energy mix year on year. But annual additions of renewable power capacity must grow three times the current level by 2030 if we want to stay on a pathway limiting global warming to 1.5°C,” said IRENA’s Director-General Francesco La Camera.</p>
<p><strong>Region-Wise Capacity Additions</strong></p>
<p>IRENA&#8217;s data showed that, although many countries increased their renewable capacity in 2022, Asia, the U.S., and Europe remain the primary drivers of renewable growth.</p>
<p>In 2022, almost half of all new capacity was added in Asia. The report said that China contributed the most by adding 141 GW to the continent&#8217;s new capacity, resulting in a total of 1.63 TW of renewable capacity in the year.</p>
<p>Europe and North America saw renewable capacity grow by 57.3 GW and 29.1 GW, respectively. However, Africa&#8217;s capacity grew by a modest 2.7 GW.</p>
<p>Oceania maintained its double-digit growth and expanded capacity by 5.2 GW. South America’s capacity grew by 18.2 GW.</p>
<p>The Middle East recorded its highest increase on record, with 3.2 GW of new renewable capacity commissioned in 2022, a 12.8% increase.</p>
<p><img loading="lazy" decoding="async" class="wp-image-51779 size-full aligncenter" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934.png" alt="Source: IRENA" width="841" height="442" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934.png 841w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934-300x158.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934-768x404.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934-650x342.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934-624x328.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Screenshot-2023-03-24-111934-600x315.png 600w" sizes="(max-width: 841px) 100vw, 841px" /> Region-wise Renewable Capacity Additions | Source: IRENA</p>
<p><strong>Highlights by Technology </strong></p>
<p>The report said that solar and wind technologies dominated new renewable capacity, contributing 90% of all new capacity. At the same time, hydropower remained the largest source of renewable generation capacity, accounting for 1,250 GW.</p>
<p><img loading="lazy" decoding="async" class="wp-image-51780 size-full aligncenter" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA-.png" alt="Renewable generation capacity by energy source| IRENA" width="662" height="387" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA-.png 662w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA--300x175.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA--650x380.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA--624x365.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/IRENA--600x351.png 600w" sizes="(max-width: 662px) 100vw, 662px" /> Renewable generation capacity by energy source| Source: IRENA</p>
<p>Solar capacity experienced the highest increase with 22%, followed by wind energy with a 9% rise in generating capacity. The increase in solar power was mostly driven by solar photovoltaic power, which added 191 GW in 2022.</p>
<p>Renewable hydropower capacity rose by 2%, adding 21 GW of capacity, which is consistent with the expansion observed in recent years.</p>
<p>Wind energy grew by 9% to reach 75 GW, although it continued to slow compared to the previous two years.</p>
<p>Bioenergy experienced a slight slowdown in expansion, adding 7.6 GW compared to 8.1 GW in 2021.</p>
<p>Geothermal energy capacity rose by 181 MW. Off-grid electricity capacity grew by 1,237 MW in 2022, reaching 12.4 GW at 11% growth.</p>
<p>In November 2022, a new report by the International Renewable Energy Agency (IRENA) released at the ongoing U.N. Climate Change Conference COP27 <a href="https://www.mercomindia.com/irena-urges-global-leaders-to-bridge-renewable-energy-deployment-gap" target="_blank" rel="noopener">found</a> that the collective effort to switch to renewables and make the energy transition is not enough despite the Glasglow Climate Pact.</p>
<p>At the beginning of the year 2022, the Ministry of New and Renewable Energy (MNRE) <a href="https://www.mercomindia.com/daily-news-wrap-up-mnre-irena-green-hydrogen" target="_blank" rel="noopener">signed</a> a strategic partnership agreement with the International Renewable Energy Agency (IRENA), signaling its intent to strengthen its collaboration with IRENA in the field of renewable energy.</p>


Renewables Accounted for 83% of the Total Generation Capacity Added in 2022


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					</table><p><a href="https://mercomindia.com/reliance-renew-tata-power-pli-tranche-ii/" target="_blank" rel="noopener"><strong>Solar module manufacturers, including Reliance Industries, ReNew Power, and Tata Power, are among the bidders for the second phase (Tranche II) of the Production-Linked Incentive (PLI) program</strong></a> under the ‘National Program on High-Efficiency Solar Modules’ to achieve gigawatt-scale high-efficiency solar modules manufacturing capacity.</p>
<p><a href="https://mercomindia.com/himachal-pradesh-32-mw-solar-project/" target="_blank" rel="noopener"><strong>Himachal Pradesh Power Corporation (HPPCL) has invited bids to commission a 32 MW solar power project in Una, Himachal Pradesh</strong></a><strong>.</strong> The selected bidders must also provide eight years of comprehensive operation and maintenance services. The last day to submit the bids is March 25, 2023. Bids will be opened on the same day. Bidders must furnish an earnest money deposit of ₹37 million (~$448,297). The scope of work includes end-to-end work on the solar project on a turnkey basis. The contractor must provide all necessary equipment, materials, and services for the satisfactory operation of the project and its integration with the evacuation system provided by the state electricity authority.</p>
<p><strong><a href="https://mercomindia.com/kerala-regulator-sets-appc-fy23/" target="_blank" rel="noopener">Kerala State Electricity Regulatory Commission has set ₹2.97(~$0.036)/kWh and ₹2.69(~$0.033)/kWh as the average power purchase cost (APPC) for financial years (FY) 2019-20 and 2022-2023</a></strong>. The Kerala State Electricity Board (KSEB) had filed a petition with the Commission to determine the APPC for FY20 and FY23. According to KSEB, the Commission did not endorse the APPC for FY19 to FY22 in the multi-year tariff order that was issued in 2019. Therefore, KSEB computed the APPC for FY20 at ₹2.97 (~$0.036)/kWh by considering the cost of power purchase and self-generation approved in KSERC’s 2019 truing up order.</p>
<p><a href="https://mercomindia.com/revenue-loss-due-to-solar-rising-globally-report/" target="_blank" rel="noopener"><strong>Reduced power generation because of equipment underperformance has resulted in a loss of $.2.5 billion for the global solar industry, according to Raptor Maps</strong></a>, an analytics, insights, and productivity software provider. “We are progressively losing more power and more money, with an estimated annual revenue loss of $82 million across the 24.5 GW analyzed by Raptor Maps in 2022, translating to $2.5 billion in losses for the entire solar industry. When coupled with other learnings from the field – solar assets are chronically underperforming relative to pro forma assumptions – there is an enormous financial impact that the industry needs to address,” the Raptor Maps’ Global Solar Report said.</p>
<p><a href="https://mercomindia.com/ftc-solar-loss-narrows-by-14-yoy-in-2022/" target="_blank" rel="noopener"><strong>United States-based solar tracker systems provider FTC Solar posted a net loss of $20.5 million in the fourth quarter (Q4) of 2022, a year-on-year (YoY) improvement of 14.15%</strong></a> compared to a loss of $23.88 million during the corresponding period in 2021.The company recorded a revenue of $26.22 million, a drop of 74.2% YoY from $101.72 million in Q4 2021. FTC Solar attributed the drop in revenue to the lower demand environment in the U.S., as customers struggle to navigate the regulatory environment and get a line of sight to solar modules.</p>
<p><strong><a href="https://mercomindia.com/eos-energys-q4-loss-on-higher-interest-expenses/" target="_blank" rel="noopener">The net loss of Eos Energy, a sustainable zinc-based energy storage solutions provider, widened to $56.6 million for Q4 of FY 2022</a></strong> compared to the net loss of $30.6 million in the same quarter of the previous year. The company said that the total interest expense increased by 485% YoY to $7.6 million due to increased borrowing from the senior secured term loan, resulting in a net loss for Q4. The total loss for the period includes a $4.4 million write-down of property, plant, and equipment that are long-term assets.</p>
<p><a href="https://mercomindia.com/module-warranty-insurance-key-solar-growth/" target="_blank" rel="noopener"><strong>Warranty of solar modules is a crucial part of any solar installation, as modules account for nearly 40% of project cost. Warranty covers both the product and its performance</strong></a>. While warranty is a business enabler, it is yet to grain traction in the industry, experts at a webinar hosted by Mercom India said. The webinar was titled ‘Solar PV Performance Warranty: Building Market Confidence.’ The panelists were Burzin Umrigar, SVP-Head Construction Insurance &amp; Renewable Energy, Howden India; Punit Mehta, Director at Pixon Green Energy; Sudhanshu Kamboj, VP-Project Development at Radiance Renewables; and Vineet Mittal, Director, and Co-founder at Navitas Solar. Priya Sanjay, Managing Director, Mercom India, moderated the session.</p>
<p><strong><a href="https://mercomindia.com/clean-energy-growth-co2-emissions-in-2022-iea/" target="_blank" rel="noopener">Global energy-related carbon dioxide emissions rose by under 1% during the year 2022, which is lower than initially expected, the International Energy Agency said in a report.</a></strong> The impact of the increase in use of coal and oil amid the energy crisis was offset by the growth of solar, wind, and electric vehicles, heat pumps, and energy efficiency, the report said. The report covers CO2 emissions from all energy combustion and industrial processes, providing a picture of energy-related greenhouse gas emissions in 2022.</p>


Daily News Wrap-Up: Reliance, ReNew, Tata Bid Among Bidders for Module PLI


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					</table><p>As the global demand for electricity is expected to grow at an average rate of 3% annually over the next three years, renewables and nuclear power would also increase to meet almost all of the world’s demand by 2025, a new International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) report finds.</p>
<p>IEA’s <em>Electricity Market Report 2023</em> offers an analysis of recent policies, trends, and market developments, including forecasts through 2025 for electricity demand, supply, and CO2 emissions.</p>
<p>The robust growth of renewables will lead to an increasing share in the global power generation mix and is expected to rise from 29% in 2022 to 35% in 2025. As a result, the CO2 intensity of global power generation will continue to decrease.</p>
<p>The world’s electricity demand growth slowed slightly in 2022, but is expected to accelerate in the years ahead, the report said. The forecasted growth is a step up from the average growth of 2.4% during the years before the Covid pandemic.</p>
<p><strong>Asia the Driving Force</strong></p>
<p>The report said that emerging and developing economies in Asia would be the driving force behind the faster pace.</p>
<p>Over 70% of the increase in global electricity demand is expected to come from China, India, and Southeast Asia. China’s share of global electricity consumption is currently forecast to rise to a new record of one-third by 2025, up from one-quarter in 2015.</p>
<p>Advanced economies are also seeking to expand electricity generation methods to displace fossil fuels in sectors such as transport, heating, and industry.</p>
<p>India’s electricity consumption rose strongly, while China’s growth was more subdued due to its zero-covid policy weighing heavily on economic activity.</p>
<p>The United States recorded a robust increase in demand, driven by economic activity and higher residential use amid hotter summer weather and a colder-than-normal winter.</p>
<p>In contrast, demand in the European Union contracted due to mild winter weather and a decline in electricity consumption in the industrial sector.</p>
<p>The report said that electricity demand and supply worldwide are becoming increasingly weather-dependent and highlighted the need for faster decarbonization and accelerated deployment of clean energy technologies.</p>
<p>IEA Executive Director Fatih Birol said governments now need to enable low-emissions sources to grow even faster and drive down emissions so that the world can ensure secure electricity supplies while reaching climate goals.</p>
<p>Last month, the agency <a href="https://mercomindia.com/industrial-strategies-key-to-energy-challenges-iea/" target="_blank" rel="noopener">highlighted</a> that the uneven geographic distribution of critical mineral resources used in clean energy supply chains makes international collaboration and strategic partnerships crucial. In its <em>Energy Technology Perspectives 2023, </em>the IEA provided a comprehensive analysis of global manufacturing of clean energy technologies and their supply chains today.</p>
<p>In December 2022, IEA <a href="https://mercomindia.com/efficiency-measures-billion-in-energy-bills-since-iea/" target="_blank" rel="noopener">said</a> that energy efficiency actions taken since 2000, such as investments in building insulation and efficient cars, had ensured that the energy bills in IEA countries in 2022 are set to be $680 billion less than what they would have been otherwise.</p>


Share of Renewables in Global Power Generation Mix to Reach 35% by 2025


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					</table><p>Investments in the low-carbon energy transition have accounted for a record-breaking $1.1 trillion in 2022 and have reached parity with capital deployed for fossil fuel supply, a <a href="https://about.bnef.com/" target="_blank" rel="noopener">BloombergNEF</a> report has said.</p>
<p>The investment was primarily driven by the energy crisis and policy action, leading to faster deployments of clean energy technologies.</p>
<p>“Our findings put to bed any debate about how the energy crisis will impact clean energy deployment,” said Albert Cheung, Head of Global Analysis at BNEF. “Rather than slowing down, energy transition investment has surged to a new record as countries and businesses continue to execute transition plans.”</p>
<p>BNEF’s Energy Transition Investment Trends annually tracks how much funding businesses, financial institutions, governments, and end-users are committing to the low-carbon energy transition.</p>
<p>The report identified that all sectors achieved a new record level of investment in 2022, including renewable energy, energy storage, electrified transport, electrified heat, carbon capture and storage (CCS), hydrogen, and sustainable materials.</p>
<p>The only exception was nuclear power investment, which remained broadly flat.</p>
<p>Renewable energy remained the largest sector in investment terms, achieving a new record of $495 billion committed in 2022, up 17% from the year prior.</p>
<p>Electrified transport, which includes spending on electric vehicles and associated infrastructure, accounted for a 54% increase year-on-year with a $466 billion investment in 2022.</p>
<p>Despite interest from the private sector and growing policy support, the hydrogen sector received the least financial commitment at just $1.1 billion in 2022, which accounts for 0.1% of the total investment.</p>
<p>Yet the report suggests that the hydrogen sector is still the fastest growing with investment more than tripling over the year before.</p>
<p><strong>Country-Wise Investments</strong></p>
<p>China was the leading country in attracting energy transition investment, accounting for $546 billion, which comprises half of the global total.</p>
<p>The European Union region accounted for $181 billion, with countries like Germany, France, and the United Kingdom leading the investments.</p>
<p>The United States mobilized $141 billion in investments in clean energy technologies.</p>
<p><strong>Investment Categories</strong></p>
<p>The report also finds that climate-tech corporate finance totaled $119 billion in 2022. This investment category, not included in the $1.1 trillion, describes new equity financing raised by companies in the climate-tech space, either from public markets or private investors.</p>
<p>Supply chain and manufacturing investment rose to $79 billion, dominated by China.</p>
<p>BNEF also reported that investments in manufacturing facilities for clean energy technologies, grew to $78.7 billion in 2022, up from $52.6 billion in 2021.</p>
<p>Manufacturing facilities for batteries and related components formed the largest share of this at $45.4 billion, while solar factories attracted $23.9 billion.</p>
<p>China accounted for 91% of manufacturing investments in 2022, despite efforts from other countries to capture more of the global clean energy opportunity.</p>
<p>Between 2023 and 2026, BNEF estimates that factory investment for clean energy technologies only needs to average $35 billion per year, to get on track for its Net Zero Scenario.</p>
<p><strong>Ramp-up Needed for Net Zero</strong></p>
<p>Despite 2022’s results, global investment in lower-carbon technologies remains woefully short of what is needed to confront climate change.</p>
<p>For the world to get on a 2050 “net-zero” CO2 emissions trajectory, such investment must immediately triple, BNEF estimates.</p>
<p>Including the additional $274 billion invested in the power grid, energy transition investment hit $1.38 trillion in 2022.</p>
<p>By comparison, the world must invest an annual average of $4.55 trillion for the remainder of this decade to get on track under the net-zero scenario, the report concluded.</p>
<p>According to Mercom Capital’s <a href="https://mercomcapital.com/product/annual-q4-2022-solar-funding-ma-report/" target="_blank" rel="noopener">2022 Solar Funding and M&amp;A Report</a>, global corporate funding for solar companies, including venture capital, private equity, debt financing, and public markets, amounted to $24.1 billion in 2022.</p>
<p>The global corporate funding for energy storage, smart grid, and energy efficiency companies in 2022 totaled $31.7 billion, according to Mercom’s <a href="https://mercomcapital.com/product/annual-q4-2022-funding-ma-report-for-storage-grid-efficiency/" target="_blank" rel="noopener">Annual and Q4 2022 Funding and M&amp;A Report for Storage, Grid and Efficiency</a>.</p>


Low-Carbon Energy Tech Investment Exceeds $1 Trillion for First Time Globally


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					</table><p>The International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) has said the global energy crisis is accelerating the installation of renewable power, with the total capacity growth set to almost double in the coming five years.</p>
<p>Countries have turned to renewables to reduce dependency on expensive imported fossil fuels following the war in Ukraine.</p>
<p>It can overtake coal as the largest source of electricity generation and keep alive the possibility of limiting global warming to 1.5°C, IEA said in a new report, Renewables 2022.</p>
<p>“The world is set to add as much renewable power in the next 5 years as it did in the previous 20 years,” said IEA Executive Director Fatih Birol. “This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system.”</p>
<p>The report pegs global renewable capacity growth by 2,400 GW over the 2022-2027 period, an amount equal to the entire power capacity of China today.</p>
<p>The expected increase is 30% higher than the estimates a year ago.</p>
<p>Renewables (wind and solar) are set to account for over 90% of global electricity expansion in the next five years, overtaking coal to become the largest source of global electricity by early 2025, the report said.</p>
<p>The agency makes the following forecasts in the report:</p>
<ul>
<li>Global solar photovoltaic (PV) capacity is set to almost triple over the 2022-2027 period.</li>
<li>Installations of solar panels on residential and commercial rooftops are expected to accelerate, which will help consumers reduce energy bills.</li>
<li>Global wind capacity is expected to nearly double in the forecast period, with offshore projects accounting for one-fifth of the growth.</li>
<li>Emerging signs of diversification in global PV supply chains are seen, with new policies in the United States and India expected to boost investment in solar manufacturing by as much as $25 billion over the 2022-2027 period.</li>
<li>China, which currently remains the dominant player, will see its share in global manufacturing capacity decrease from 90% today to 75% by 2027.</li>
<li>Total global biofuel demand is set to expand by 22% over the 2022-2027 period. The United States, Canada, Brazil, Indonesia, and India make up 80% of the expected global expansion in biofuel use.</li>
</ul>
<p>In Europe, governments and businesses are rapidly looking to replace Russian gas with alternatives. The amount of renewable capacity to be added in Europe during the 2022-27 period is expected to be twice as high as in the previous five-year period. This is driven by a combination of energy security concerns and climate ambitions.</p>
<p>Europe, China, the United States, and India are implementing policies and introducing regulatory and market reforms more quickly than planned to combat the energy crisis.</p>
<p>The report also lays out an accelerated case in which renewable power capacity grows a further 25% on top of the main forecast.</p>
<p>The accelerated scenario requires efforts to resolve supply chain issues, expand grids, and deploy flexible resources to securely manage larger shares of variable renewables.</p>
<p>The agency says this would move the world closer to a pathway consistent with reaching net zero emissions by 2050 for which the advanced economies would require tackling regulatory and permitting challenges.</p>
<p>For emerging and developing economies, policy and regulatory uncertainties, weak grid infrastructure, and a lack of access to affordable financing have to be addressed.</p>
<p>Fossil fuel combustion will grow by less than 1% in 2022 as the strong expansion of renewables and electric vehicles prevent a sharper rise, IEA <a href="https://mercomindia.com/co2-emissions-from-fossil-drop-due-to-of-renewables-iea/" target="_blank" rel="noopener">said</a> in another recent report.</p>
<p>Another IEA report earlier this year <a href="https://mercomindia.com/renewables-account-global-power-capacity-iea/" target="_blank" rel="noopener">assessed</a> that around 280 GW of new renewable energy capacity would be operational in 2022. The expansion would exceed the record annual capacity additions of 2017-2019 by more than 50%.</p>


Renewable Capacity Growth Set to Double in Next Five Years: IEA


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					</table><p>The number of people living without electricity is set to rise by nearly 20 million in 2022, reaching nearly 775 million, finds International Energy Agency’s (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) latest data. The agency estimates that achieving universal global access to electricity by 2030 would require annual investments of $30 billion from now to 2030, of which around two-thirds are needed in sub-Saharan Africa.</p>
<p>Leading causes for the lack of electricity infrastructure include the pandemic, inflation, and the energy crisis that have set back global progress. Around sub-Saharan Africa, the number of people without access to electricity is nearly back to its 2013 peak, the agency noted.</p>
<p>The progress in Mozambique, Senegal, and Kenya could decelerate. In Ethiopia, population growth is outpacing new connections, a sharp reversal from the rapid progress before the pandemic.</p>
<p>Bangladesh, home to almost 10% of those without access to stable electricity supply in Asia, is also set to see a slowdown in 2022, especially for new grid connections.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-44125 size-full" src="https://mercomindia.com/wp-content/uploads/2022/11/101.png" alt="" width="452" height="361" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/101.png 452w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/101-300x240.png 300w" sizes="(max-width: 452px) 100vw, 452px" /></p>
<p style="text-align: center;"><em>People without access to electricity worldwide, 2012-2022 | Source: IEA</em></p>
<p>&nbsp;</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-44128 size-full" src="https://mercomindia.com/wp-content/uploads/2022/11/102-1.png" alt="" width="497" height="405" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/102-1.png 497w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/102-1-300x244.png 300w" sizes="(max-width: 497px) 100vw, 497px" /></p>
<p style="text-align: center;"><em>Investment in electricity access in 2019 and Investment required to provide electricity to all by 2030| Source: IEA</em></p>
<p>The agency found that while grid connections proved resilient in the past two years, new procurement has slowed down, with many utilities lacking funds for energy access projects after they prioritized cushioning their consumers from rising prices. For instance, in Africa, utilities were already in a difficult financial situation heading into the pandemic, with operational losses climbing substantially since then.</p>
<p>Off-grid access solutions are facing stronger headwinds, with inflation hitting consumer demand. Prices of key components used to manufacture solar photovoltaic modules, batteries, and inverters are sharply rising, which has been further exacerbated by local currencies depreciating against the dollar. The cost of solar and hybrid mini grids has increased by at least 20% in 2022 from pre-pandemic levels.</p>
<p>The average market price for a new solar home system is up by 30% since 2020, causing households to opt for smaller or lower quality systems.</p>
<p>These setbacks put the world further behind in meeting targets for universal access by 2030, declared in the United Nation’s Sustainable Development Goal 7. As per IEA’s World Energy Outlook 2022, published earlier this month, 660 million people would still be without access to electricity in 2030, 85% of those living in sub-Saharan Africa.</p>
<p>Apart from the energy crisis, rising prices for fuel and food are disproportionately hurting, especially those in the developing world, and people facing chronic hunger are also rising. Countries witnessing growing populations without access will only see an acceleration with the trend, with the most significant increases set to occur in the Democratic Republic of Congo and Madagascar.</p>
<p>The current energy crisis will weigh heavily on negotiations at the ongoing COP27 Climate Change Conference in Egypt. The conference is expected to also focus on divesting resources to ensure universal access to secure affordable energy, especially in the developing world where populations without access to electricity are again rising. COP27 Egyptian Presidency has made it clear that accelerating efforts to reach universal access will be a crucial part of their agenda. The timely initiative aims to facilitate technical exchanges and help improve the investment environment for access solutions in Africa.</p>
<p>In its latest World Energy Outlook, IEA <a href="https://mercomindia.com/global-energy-crisis-expedite-to-sustainable-clean-sources-iea/" target="_blank" rel="noopener">said</a> the global crisis triggered by the war in Ukraine could ironically accelerate the transition to a more sustainable and secure energy system. Earlier in the year, IEA’s Renewable Energy Market Updates – Outlook for 2021 and 2022 revealed renewable energy is <a href="https://mercomindia.com/renewables-account-global-power-capacity-iea/" target="_blank" rel="noopener">expected</a> to account for 90% of the global power capacity increase in 2021 and 2022.</p>


People Without Electricity Set to Increase in 2022 for First Time in Decades


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					</table><p>Global green energy company <a href="https://ffi.com.au/" target="_blank" rel="noopener">Fortescue Future Industries</a> and green hydrogen (H2) company Tree Energy Solutions (<a href="https://tes-h2.com/" target="_blank" rel="noopener">TES</a>) will jointly develop what is claimed to be the world’s largest green hydrogen integrated project to help Europe mitigate its current energy and climate crisis.</p>
<p>Fortescue and TES plan on industrial-scale green hydrogen production globally with an initial focus on Australia, Europe, the Middle East, and Africa.</p>
<p>Fortescue will make an equity investment of €30 million (~$29.7 million) to become a strategic shareholder in TES. It will also invest €100 million (~$99.16 million) for a significant stake in the construction of the TES import terminal in Wilhelmshaven, Germany. The first deliveries of green hydrogen into the TES terminal are expected by 2026.</p>
<p>In the first phase, the two companies will invest in the supply of 300,000 tons of green H2, with final locations being currently discussed.</p>
<p>The projects will produce sufficient renewable energy to meet the requirements of 1.5 million households.</p>
<p>The partnership leverages Fortescue’s expertise in developing large-scale renewable energy projects and TES’ business model, which combines hydrogen with recycled CO2 to create an efficient, circular, net-zero energy loop.</p>
<p>Executive Chairman and Founder of Fortescue Future Industries  Andrew Forrest said, “The UK and Europe urgently need green energy solutions to replace fossil fuels. This important investment will help to do exactly that. Not in 2050, in four years from now.”</p>
<p>TES will use CO2 as a carrier to import green hydrogen in the form of renewable natural gas. When the gas reaches Germany, it will be captured and transported back to the supply location, where the hydrogen is produced, in a circular, closed-loop zero-carbon system.</p>
<p>CEO of TES Marco Alverà observed, “We are delighted to announce this partnership which marks a new milestone in delivering scalable, affordable green hydrogen as well as securing renewable energy production. This agreement is another stepping stone in building TES as one of the leading hydrogen players in the world to accelerate the energy transition with the most cost-effective, bankable, and scalable green alternative to today’s fossil fuels.”</p>
<p>Last October, Fortescue <a href="https://mercomindia.com/fortescue-buys-60-percent-stake-in-hyet/" target="_blank" rel="noopener">acquired</a> a 60% stake in the Dutch-based High yield Energy Technologies Group. The acquisition marked an important milestone in the company’s vision to produce affordable green hydrogen, targeting a supply of 15 million tons worldwide by 2030.</p>
<p>The European Commission has recently <a href="https://mercomindia.com/europes-project-e5-2-billion-develop-hydrogen-chain/" target="_blank" rel="noopener">approved</a> the second phase of the Important Project of Common European Interest (IPCEI) to support research, innovation, and the first industrial deployment of the hydrogen technology value chain in Europe.</p>


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