1、IN COLLABORATION WITH:Shaping TomorrowsEnergy Landscape:Balancing Sovereignty,Affordability and Climate ResponsibilityWORLD ENERGY MARKETS OBSERVATORY 2023|25TH EDITIONCONTENT01G L O B A L O U T L O O K05D I G I T A L/D A T A F L O W S02T H E C U S T O M E R06T H E C L I M A T E B O T T O M L I N E0

2、3E N E R G Y F L O W S07E N E R G Y I N T H E R E G I O N S04M O N E Y F L O W SWORLD ENERGY MARKETS OBSERVATORY2W E M O 2 0 2 3HOMECHAPTERS&ARTICLES0 1.G LO B A L OUTLOOK.060 2.T H E C U STOME R.500 3.E N E RG Y FLOW S.900 4.MONEY FLOWS.1700 6.C LIM AT E B OT TO M LIN E.2740 5.D IG ITAL/DATA F LOW

3、S.2461.The energy retail market is dead;long live the energy services market.532.Power to the people!How energy consumersaretakingcontrolandworkingaroundindustryconstraints.583.Transformation for all?What does the futureholdfortheatypicalconsumers?Doeshyper-personalisationmakeevery one atypical?.664

4、.LearningLessonsfromtheUK TelcoTransformation forenergyretail.695.What big bets are utilities in Australia makinginthecustomerdomainandhowwilltheypayoff?.776.Commodity to services How market changesarepointingtoaverydifferent playbookforutilities.843.Renewable tech as scale.1034.Climate changes and

5、energy sovereignty issues are nuclear revival.1135.GigafactoriesIsthebatteryindustryreadyto supporttheenergytransition?.1246.Electric vehicles:The 5 technological forces driving the next 5 years .1347.Electricity connections:Is the impact of electrificationholdingbackdecarbonization?.1448.Globalbenc

6、hmarks-levelizedcostofenergy.1549.Networks at the centre of the energy transition:Will energy networks enable or hinderthetransitiontonetzero?.1611.Ahugeshiftinhowenergyflows.932.Are oil and gas companies truly committed totheenergytransition.961.Worldwide energy price composition development:Interv

7、entionandreformiscrucial .1762.How did European governments react to the biggestenergycrisisofthecentury?.1923.Electricity market design:how much intervention isneeded?.1994.Europeanplayers-priorities,investmentsandfinancial results.2055.North American Players-priorities,investment and financialresu

8、lts.2151.How climate change will be funded:Theeconomiccase.2772.Operationalizingcarbonintensity tracking Carbon intensity,the metric that captures the greenhouse gas emissions releasedperunitofeconomic.2883.Businessplanninginafiniteworld.2974.Decarbonising Energy.Are we moving fast enough?Lights and

9、 shadows.3051.Next-generationAMI-bringssignificantbenefits for both customers and utilities.2502.Exploiting data at the substation level.Virtualizationandutilityedgecomputing:An industry gamechanger.2543.Energy of data and AI.2564.The essential role of quantum computing in the Smart Grids of the 204

10、0s.2665.What is a digital twin in the context of linear assets:Howdoesautilitybenefit?.2706.Australianplayers-priorities,investmentandfinancialresults.2293W E M O 2 0 2 3HOMECHAPTERS&ARTICLES5.Empoweringyourspace:Effectivelyleveraging buildingefficiencytechnologies.3096.Do we have minerals available

11、 to reduce the impactofclimatechange?.3177.Finding opportunity in the heat transition.3268.Transition to Renewable Energy:Progress and Challenges.3320 7.E N E RG Y I N T HE R EGI ONS.338Region 1:Europe.3401.1Germany.3421.2UnitedKingdom.3431.3France.3441.4Italy.3451.5Spain.3461.6Netherlands.3471.7Swi

12、tzerland.3481.8Poland.3491.9Turkey.3501.10Sweden.3511.11Belgium.3521.12Norway.353Region 2:Asia Pacific.3542.1China.3562.2Japan.3572.3India.3582.4SouthKorea.3592.5Indonesia.3602.6 Australia.361Region 3:Middle East.3623.1 Saudi Arabia.364Region 4:Africa.365Region 5:North America.3675.1USA.3695.2Canada

13、.3705.3Mexico.3714W E M O 2 0 2 3HOME01GLOBAL OUTLOOK5W E M O 2 0 2 3HOMEGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEENERGY IN THE REGIONSGLOBAL OUTLOOKCOLETTE LEWINEREnergy&Utilities ExpertThemajoreventoftheyear2022wasRussiasunjustifiedinvasionofUkraine,w

14、hichledtoahistoricincreaseingasandelectricity prices in Europe.Following these events,measures to strengthen security of supply and energy sovereignty were taken in addition to those to accelerate the energy transition.Carbon-free electricity production technologies have progressed,but despite this,

15、greenhouse gas(GHG)emissions have continued to increase.The summer of 2023 was one of the hottest in history.In this Outlook,we examine the questions of energy sovereignty and the Wests dependence on China,whose weight in the energy transition is continuously increasing.While regulations must be str

16、engthened to reduce dependence on fossil fuels,the speed of implementation of these regulations depends on their costs and their acceptability.Despite this,it is likely that the objectives of limiting temperature to 1.5C in 2030 will not be achieved.Adaptation measures must thereforebetakenquickly,w

17、hichrequiresthemobilizationofnumerous stakeholders(governments,infrastructure managers,businesses,citizens).Consumerbehaviorandfinancingoftheenergytransitionarekey points for success.TheseandothertopicsareanalyzedinthisOutlook.I hope you enjoy reading it.6W E M O 2 0 2 3HOMEGLOBALOUTLOOKTHE CUSTOMER

18、ENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEENERGY IN THE REGIONSThe 2021-2022 crisis and 2023 perspective:How Europe freed itself from its dependence on Russian gas:BeforetheunjustifiedinvasionofUkrainebyRussia(February2022),Russian gas,mainly imported by pipeline,represented 40%

19、of European gas supplies,around 140 billion cubic meters(bcm)per year.As I had written in previous WEMO1 Outlooks,this heavy dependence on Russian gas posed a threat to European security ofsupply.Thisthreatmaterializedin2022.Russian gas:InresponsetotheinvasionofUkraine,theEuropeanUnion(EU)took sanct

20、ions against Russia,particularly on Russian oil and coal.It avoided taking sanctions on gas because of Europes heavy dependence on Russian gas.It is President Putin who decidedtoprogressivelyreducethegasflowingbypipelinetoEurope.The sabotage of the two North Stream giant pipelines onSeptember22,2022

21、,furtherreducedtheseflows.Thus,RussianflowstransitingbygaspipelinesrepresentedinJune2023onlyaround7%oftheUnionssupplies.Since the last quarter of 2022,in addition to“TurkStream”,only twogaspipelinescrossingUkrainearestillsupplyingEurope1 https:/ https:/www.energymonitor.ai/industry/a-missed-opportun

22、ity-eus-new-oil-imports-are-a-backdoor-to-russia/#:text=In%20January%202022%2C%20Russia%20accounted,back%20to%20Russia%20after%20all.4 https:/www.globalwitness.org/en/press-releases/eu-imports-russian-lng-have-jumped-40-invasion-ukraine/5https:/ Russian gas.However,gas transit contracts between Russ

23、ia andUkraineendin2024andmaynotberenewed.UnveiledinMay2022,theREPowerEU2 plan aimed to“reduce theEUsdependenceonRussiangasbytwo-thirdsbytheendof 2022”;additionally,it aims to“make Europe independent of Russianfossilfuelswellbefore2030”.Thefirstpartoftheplanaddressesgassupplysourcesdiversification.Th

24、esecondpartdeals with acceleration of the energy transition,deployment of energyefficiencymeasures,andtheacceleratedcommissioningof renewable electricity production means.Diversified supplies:1.Oil:DuetotheEUsanctions,Russianoilimportsdroppedsharply.Whiletheyaccountedfor31%ofEUoil imports in January

25、 2022,by March 2023 it was only 3%.Nevertheless,someoftheEUsnewimportsmaytrace back to Russia.3 2.Gas:Europehassuccessfullydiversifieditsgassupplysources:a.First,by increasing imports by pipeline from its traditionalsuppliers(Norway,Algeria,andtheUnitedKingdom).However,these countries have limited p

26、otential to increase their exports.b.Secondly,byincreasingimportsofliquefiednaturalgas(LNG)oninternationalmarkets(UnitedStatesand Qatar,in particular),including 45 to 50%on the spot market.In2022,theEUimportedjustover130bcmofLNG,a60%increasefromthe80bcmimportedin2021.Inthefuture,Europe will be able

27、to receive additional LNG as it expands its regasificationcapacityandasglobalLNGsuppliesincrease.TheglobalLNGflowsareexpectedtoincreaseby23bcmin2023,largely due to the ramp-up of liquefaction projects in Africa andtheUnitedStates.In2022,theU.S.representedroughly40%ofLNGEuropeanimports.DespitecutsinR

28、ussianpipedgas,theEUincreaseditsRussian imports from sea through LNG imports.Russia overtook Qatar as Europes second-largest LNG supplier.In the first seven months of 2023,EU countries imported 40%more Russian LNG than the same period in 20214,making up around 16%of the EUstotalLNGimportsfromJanuary

29、-July.5 This is against the EUs aim to end its reliance on Russian fossil fuels(coal,oil,piped gas or LNG)by 2027!W E M O 2 0 2 3W E M O 2 0 2 37HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE2023 gas supply still presents threats:The

30、diversificationofEuropesgassupplysourcesstrengthensitssecurityofsupply.However,theEUisexposedtoadoubleriskof rising prices and price volatility on one hand and availability of volumes on the other.1.Higher prices and volatility:LNG prices are usually higher than those of gas imported by pipeline(due

31、 to factors such as the cost of liquefaction,transportation byvessel,andregasification).Also,theirGHGemissionsare worse than for piped gas.Being exposed to the spot market,the prices of LNG imports are,by nature,more volatile than the long-term contracts prices of piped gas.a.Volumeavailability:In20

32、22,confinedChinasawadrop of more than 20%in its LNG imports.However,a rebound in Chinese demand for LNG could limit LNG availability.In June 2023,China imported 32%more LNG than the previous year,and approached its June 2021 record.6 However,this increase was mainly due to exceptional weather events

33、 and low LNG spot prices.For the whole year,Chinas demand for gas and LNG is expected to grow but not at the same pace as duringthefirsthalf.Indeed,thecurrentnationalpolicyprioritizesenergysecurityofsupplywithcoaland6 https:/ addition,continued growth in domestic gas production and ramped-up deliver

34、y from Russian pipeline imports will limit the growth of LNG imports.At the end of August 2023,the LNG market was not underpressure,asreflectedbytheU.S.LNGexportprice,which dropped to around half its August 2022 level.b.Some leaders in the energy world are expressing concerns for the year 2024,given

35、 the link to the electionsintheUnitedStates.IftheRepublicanPartyreturnstopower,theUnitedStatescouldban or limit LNG exports because they are pushing American domestic prices up.It would be a shock forEurope,sincetheregionreliessignificantlyontheU.S.However,shalegasisproducedintheU.S.byprivatecompani

36、es;theseorganizationscouldlaunchlitigationproceduresagainstthosepenalizingdecisions.Deployment of new regasification infrastructures:Europe Member States and,in particular,Germany have reacted to the 2022 crisis by increasing the number of Floating Storage andRegasificationUnit(FSRU)projects.Bymid-2

37、023,eightnewterminalswerecommissioned,andtheEUsLNGimportcapacity is expected to increase by a further 20%by 2024.However,at the European level,LNG import capacities were alreadyoversizedbeforethecrisis.Thedeploymentofnewgas infrastructure responds to the poor distribution of LNG terminalsonthecontin

38、entandthedifficultyoftransportinggas in Europe.For many years I stressed in the WEMO outlooks,theneedtoinvestinpipelinestoincreasereversegasflows.During the crisis,it was clear that those investments were not done as it was impossible to transport gas from Spain(which has many re-gas facilities)to G

39、ermany,which had none.Also,itisverydifficulttotransportgasfromWesternEuropetothevery landlocked Eastern European countries.Several new LNG import terminals are planned for 2026.However,they go against the objective of climate neutrality and could become stranded assets.W E M O 2 0 2 3W E M O 2 0 2 3

40、8HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEPrices:During the 2022 crisis,electricity and gas prices reached historical heights.They have sharply fallen because of moderate demandlinkedtotheflattisheconomiesandthefearofanewfinanci

41、alcrisis.7 https:/ European gas price has fallen sharply(34/MWh in August 2023)since its historic peak of 346/MWh(in August 2022).EveniftheAmericangasprices(whicharearoundfivetimeslower than European ones thanks to shale gas)did not reach historicalheightsasinEurope,U.S.HenryHub7 spot gas price fell

42、from$8.8/millionBritishthermalunit(MBTU)inAugust2022to$2.6/MBTUoneyearlater.The European electricity spot prices,which are linked to the gas prices,alsofellfrom576/MWh(forFrance)inAugust2022to96/MWhoneyearlater.This dependance of electricity prices on the gas prices was questioned in Brussels by cer

43、tain countries(such as France)that use very little gas for their electricity generation.These considerations,together with the sharp increase of spot prices anditsconsequencesoncitizenbudgets,pushedEuropeanleaders to launch a reform of the European electricity prices mechanism(see below).The drop in

44、 European electricity prices was,however,less spectacular than for gas prices.They remained relatively high during the 2023 summer due to very hot weather pushing demand up(through the increased use of air conditioning),the limitation of nuclear plants electricity output(in order not to heat rivers

45、beyond a certain level)and fears around nuclear power availability during the winter.Reduction in gas consumption:IftheUnionhasreduceditsgasconsumptionby13%fortheyear 2022 compared to 2021,this drop remains largely linked to a mild winter.For example,changes in behavior would have contributed only t

46、o one-quarter of the energy savings made in buildings.Energyefficiencylevers(beyondbuildinginsulation)should be further increased to reduce heating and cooling energyconsumption.SincetheRussianinvasionofUkraine,heatpumpinstallation,whichdisplacesnaturalgastothebenefitof electricity,grew at an unprec

47、edented rate(+100%in H1 23 in Germany and+140%in Belgium).On the industrial side,almost half of the drop in gas demand came from stopping production activities due to the increase in energy prices(gas and electricity).Finally,because of the poor functioning of French nuclear power plants in 2022,the

48、re has been no reduction in gas used at power plants as the latter had to make up for missing nuclear electricity.It is difficult to predict the sustainability of these reductions in consumption,a large part of which was linked to the fear of shortages(notably power cuts)and high prices.W E M O 2 0

49、2 3W E M O 2 0 2 39HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEThe year 2023 is full of uncertainties:TheevolutionoftheconflictinUkraineisuncertainasalloptionsare open,ranging from a territorial compromise,to the attack by Russia o

50、f other neighboring countries and even to a nuclear war.It is important to note that Russia has targeted major energy facilitiessuchastheZaporizhianuclearpowerplantandtheKakhovka dam.The destruction of the latter by bombardment on June 6,2023,causedthefloodingofmorethan600squarekilometers,causing a

51、human and ecological disaster.This raises questions about the safety of major energy equipmentinwarzones.In addition,the October 2023 savage attack by Hamas terrorists inIsrael,coulddestabilizetheMiddleEast.Inflation:A series of compounding issues such as rising energy and food prices and high gover

52、nmental subsidies in the wake of the pandemic,havecreatedhighinflationrates.Globalinflationin2022isestimatedtohavereached8.75%.In 2023,lower energy prices,slower economic growth,stricter monetary policies of the central banks,and supply chain improvementsarecontributingtodecreasingglobalinflationwit

53、hdivergentinflationtrendsinwesterneconomies.Tocurbthisinflation,centralbankshaveincreasedinterestrates,triggering increases in everyday products,and creatingdifficultiesforpartofthepopulation.Thisgrowthinprecariousness could be a source of social conflicts.The increase in interest rates leads to an

54、increase in the cost of electricity produced by renewable energies and nuclear8(see below).While the economic slowdown has potential negative consequences on employment,it has the positive consequence of slowing energy consumption and therefore keeping energy prices at reasonable levels.The winter o

55、f 2023-2024 is showing more promising conditions compared to the previous one:1.At the end of August,European gas storage facilities were96%fullonaverage,whichisahighhistoricallevelfor this time of year and beyond the rate imposed by European regulations.2.In 2022,the discovery of stress corrosion i

56、n the emergency cooling circuits of a number of nuclear reactorsledtoasignificantdropinFrenchnuclearproduction.Since then,EDF,with the agreement of the French Nuclear Safety Authority,has undertaken torepairthesedefects.Thankstotheoptimizationand control of repairs,the annual cumulative nuclear prod

57、uctionwas8%higherinAugust2023thanthatofthe same period in 2022.The economic slowdown will probably trigger lower energy consumption.However,mild temperatures and sustained energy savings remain key to having a non-eventful winter.Following the 2021-2022 energy crisis,besides climate change issues an

58、d energy transition acceleration,new concerns have emerged,most notably around energy sovereignty.8Thelevelizedcostoftheelectricityproducedbytheseplantsismainlylinkedtotheinvestments(thecostoffuelbeingeitherzeroforrenewablesorrelativelylowfornuclear).W E M O 2 0 2 3W E M O 2 0 2 310HOMEENERGY IN THE

59、 REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEEnergy sovereignty has become an objective.Fossil fuels security of supply:Asanalyzedabove,theunjustifiedinvasionofUkraineinvasionby Russia in 2022,has pushed Europe to diversify its gas procurement sourc

60、es and hence to increase its security of supply.Threats to European security gas supply have also been looked at:the most important one seems to be a limitation of theU.S.LNGexportslinkedtoapotentialRepublicanvictoryatthe2024U.S.elections.Over2022and2023,theOrganizationofthePetroleumExporting Countr

61、ies and its partners(OPEC+)have continued to restrict their supply to push oil prices up.It also agreed to set a new,lower target for 2024.Meantime,Saudi Arabia decided to unilaterally cut oil production by 1 million barrels per day(b/d)until the end of the year.In July,Saudi crude production droppe

62、d tobelow9millionb/d,itslowestlevelsinceJune2021.Oilpricesrosefollowingthenews,withBrentrisingabove$90/barrel.As happened in the past,oil procurement can be subject to embargos.However,OPEC countries need the oil revenue to balance their budget.This is even more true for Russia,which badlyneedsthose

63、dollarstofinanceitswarefforts.Asseenalsointhepast,highoilpricesboosttheU.S.shaleoilproductionoutput,which in turn,limits market prices increase.Electricity sovereignty issues:According to the Energy Transition Commission(ETC)9,a successful energy transition will lead to:A dramatic increase in global

64、 electricity use,rising from28,000TWhin2022,toasmuchas110,000TWhby2050,withover75%ofthissuppliedbywindand solar.The rest will be provided by a mix of nuclear,hydropower,andotherzero-carbonsources,alongwithbattery and other storage equipment.A major expansion of electricity grids,expanding from thecu

65、rrent75millionkilometersoftransmissionanddistribution to over 200 million kilometers by 2050.Knowing the local public oppositions on new overhead line projects and the resulting delays,the grid could become the Achilles heel of the energy transition.A major role for low-carbon hydrogen,requiring ele

66、ctrolyzercapacityofupto7,000GWin2050.Thenear-totaldecarbonizationoftheglobalpassengervehiclefleetby2050,requiringover1.5billionelectriccars and 200 million electric trucks and buses.This requires a total battery capacity of up to 150 TWh.CarbonCapture,UtilizationandStorage(CCUS)capacityincreaseofaro

67、und710GtCO2 per year,is neededtooffsetremainingfossilfuel.Rare metals security of supply:ETC studied the supply and demand balance equation of six key energy transition materials(cobalt,copper,graphite,lithium,neodymium,and nickel).It appears that over the long term,therearesufficientresources10 of

68、all the raw materials(and of land area and water)to support the energy transition.If assessed“reserves”fall short of potential demand for copper and nickel,for example prices will go up.Geological research will be triggered,and new mines will open.However,there could be a time lag between growing ne

69、eds and minerals availability,creating tensions on supply.Presently,for some energy transition metals,projected supply does not seem sufficienttomeetrapidlygrowingdemand.Forexample,fromnow to 2050,lithium requirements should grow by 15 times,graphite by 12 and copper and cobalt by 5.Lithium procurem

70、ent is a strategic issue.Most of the worlds lithiumreservesareinBolivia(21milliontons),Argentina(19milliontons),Chile(9.8milliontons),Australia(7.3milliontons),and China(5.1 million tons).None in Western Countries.Chinahasadominantpositioninrefinedlithiumsupplyandaims to increase its position in min

71、es.For example,in June 2023,Chinese and Russian companies announced a common investment of more than$1.4 billion in the extraction of lithium in Bolivia,to unleash the countrys large reserves of the mineral.9https:/www.energy-transitions.org/publications/material-and-resource-energy-transition/file/

72、10 A resource is that amount of a geologic commodity that exists in both discovered and undiscovered deposits.Reserves are that subgroup of a resource that have been discovered,have a knownsize,andcanbeextractedataprofitW E M O 2 0 2 3W E M O 2 0 2 311HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOM

73、ERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEThere is major potential to reduce future lithium demand via technology,materialsefficiency,andrecycling.1.Technology:For example,battery manufacturers are developing batteries without cobalt.Sodium-ion batteries development would redu

74、ce the need for lithium.2.Efficiency:An increase in renewables generation equipmentefficiency(aswindturbinecapacityfactorsincrease,or solar panels yield improvement)would reduce the mineral needs per kWh.3.Recycling and reuse of recycled metals decreases the need for fresh metals.Finally,higher pric

75、es triggered by tight supply chains will increase reserve volumes and decrease consumption.However,this global long-term positive view on supply and demand balance of critical metals does not exclude short-term problems for various reasons,notably public oppositions delaying new mines opening.Finall

76、y,geopolitical considerations can create shortages.As a retaliatory act for the limitations placed on the Chinese semiconductorindustrybytheU.S.,Japan,andtheNetherlands,in July 2023,China,the worlds top supplier of gallium and germanium,two minor metals used to make semiconductors,announced restrict

77、ions on their exports.Could China be tempted to do the same for lithium and graphite(used notably in batteries)or polysilicon(used in solar panels)products where it has a dominant position?Strong action to open new mines and accelerate both materials efficiency and recycling should be taken by gover

78、nments.The U.S.andEuropehavelaunchedstrategicplans.Nearly immediately after his election,President Biden issued an ExecutiveOrderonAmericasSupplyChains.HavingidentifiedcriticalmineralsandmaterialsascentralpiecesoftheU.S.economy and national security,this strategic plan relies on three key pillars:di

79、versifying supply,developing substitutes,and improving reuse and recycling.Similarly,in March 2023,the European Commission put forward a European Critical Raw Materials Act,which aims to have at least 15%of the critical,strategic,and rare earth metal needs domesticallysourcedthroughsimilaractionsast

80、heU.S.Act.In May 2023,France presented a plan to launch a 2 billion investment fund for critical metals.More funding is expected in the future.The good news is that high concentrations of lithium have recently been discovered in certain brines from European(Italy,Germany,France,andtheUnitedKingdom)a

81、ndU.S.geothermal operations.If the projects,now underway,prove that battery-grade lithium can be extracted from these brines atacompetitivecost,theywouldbecomeaverysignificantlithium resource located in the western world.1111 https:/ E M O 2 0 2 3W E M O 2 0 2 312HOMEENERGY IN THE REGIONSGLOBALOUTLO

82、OKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINENuclear energy:In2022,theEuropeanUnionfinallyrecognizedthatnuclearpower plants are climate-friendly.12 Is it a sovereign electricity source?The operation of nuclear power plants depends on the supply of uranium;questions ha

83、ve arisen about uranium security of supply.However,uranium security of supply is not a tangible threat since:1.Uraniumresourcesarewelldistributedthroughouttheworld.In2022,Kazakhstanproducedthelargestshareof uranium from mines(43%of world supply),followed by Canada(15%),Namibia(11%),and Australia(10%

84、).13 However,thereareuraniumresourcesintheU.S.andinEurope.2.Its very high energy concentration makes it possible to store years of production.3.Typically,nuclear operators have 2-to 5 years of strategic stocks.Nuclear operators have a policy of diversifying their supplies.4.As in other industry ther

85、e is recycling.Recycled uranium and plutonium(produced in nuclear plants),currently saves about 5%of fresh ore.It is also theoretically possible to re-enrich and recycle depleted uranium.Because of the relatively low price of uranium,it is not done presently.The coup in Niger at the end of July 2023

86、 was an interesting test.Niger is the second largest supplier of natural uranium to theEU(withashareof25%)behindKazakhstan.Butitssharein global supply is only around 5%.The situation presented low supply risk because other sources were available.Moreover,Niger,whose economy is highly dependent on it

87、s uranium exports,should resume exportations in the mid-term.The price of uranium increased by only 10%after the coup.However,by September,uranium prices increased by 20%compared to the previous years caused by an increase in demand for nuclear energy worldwide.This increase has a very little impact

88、 on nuclear electricity competitiveness since uranium cost is less than 5%of nuclear electricity total cost.The circular economy is essential to ensure sustainable growth:ItiswhattheEUisimplementingwiththebattery passport EU regulation.14By2030,theEUwillneed5timesmorecobaltand18timesmorelithiumcompa

89、redtothedemandin2018,numberswhichexponentially increase when estimating demand in 2050.An update to the 2006 Battery Directive aims to ensure the growth of the battery industry is done sustainably.In July 2023,theEUBatteryRegulationAmendmentwasadoptedbytheEUCouncil,layingoutthestructuretoachievesust

90、ainablebattery lifecycles.This includes a digital record system to enable the transfer of key information between parties the battery passport.According to this regulation,by the beginning of 2030,batteries mustcontainaminimumof12%cobalt,85%lead,4%lithium,and 4%nickel which is from non-virgin source

91、s.To meet these targets,all waste batteries collected must enter a recycling process.Thisprocessshouldimproveitsefficiencyovertime.Battery producers will be obligated to report the carbon footprint associated with the overall lifecycle(excluding the usephase)ofthespecificmanufacturingbatchofbatterie

92、s.As more data requirements are added to battery passports,it will also lead to greater traceability in battery supply chains.12 https:/ eu-parliament-vote-green-gas-nuclear-rules-2022-07-06/13 https:/world-nuclear.org/information-library/nuclear-fuel-cycle/uranium-resources/supply-of-uranium.aspx14

93、 https:/ E M O 2 0 2 3W E M O 2 0 2 313HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINELifecycle assessment:It is the only sustainable approach to compare the emissions of different electricity generation technologies.15 These assessme

94、nts over the lifecycle show a wide range of emissions per kWh.Most of renewable technologies GHG emissions are embodiedininfrastructure(upto99%forphotovoltaics),whichsuggests high variations in lifecycle impacts due to raw material origin,energy mix used for production,transportation modes,and insta

95、llation.Nuclear power is the lowest emitting technology with a range of 5.1-6.4 g CO2 eq./kWh while coal power shows the highest scores,witharangeof751-1095gCO2 eq./kWh.Equipped with Carbon Capture and Storage,and accounting for the CO2 storage,thecoalplantsscorecanfallto147-469gCO2 eq./kWh A natura

96、l gas combined cycle plant without CCS emits around halftheemissionsascomparedtocoalplants,but80timesmore than nuclear electricity.This demonstrates that gas is not a long-term viable option regarding climate change and that it should be considered as a transition generation source.Wind power emits

97、between 50-200%more GHG than nuclear.For solar photovoltaic power,40%of GHG emissions is due totheelectricityconsumptionforsiliconrefining.Thus,thistechnology has a large range of lifecycle GHG emissions per kWh dependingontheelectricitycarboncontent.UnderEuropeanconditions,photovoltaic technologies

98、 show lifecycle emissions ofabout37gCO2eq./kWh,around800%morethannuclear.In other regions,emissions can be much higher.In addition to the sovereignty benefit,one advantage of manufacturing PV cells in Europe is to lower emissions by using low-carbon electricity and avoiding transportation.Industrial

99、 sovereignty:In2022,PresidentBidensignedtheU.S.InflationReductionAct(IRA)16,aprogramthatproposesalmost$370billioninfederalincentivestoshifttheU.S.gridto80%cleanelectricityandcutclimatepollutionby40%by2030.ItalsocontainssignificantincentivestolocatedcleanenergyplantsintheU.S.Oneyearlater,theresultsar

100、eimpressive:$278billionhavebeenannounced in new private clean energy investments.Projects announcedaccountfor170,000newjobs.17Given the rapid uptake,the estimate of public IRA investment over the next decade could reach more than$1 trillion.In March 2023,Canadas federal government adopted a 30%Inves

101、tment Tax Credit plan for solar,wind,and energy storage projects.ThisplanmirrorstheU.S.InflationReductionAct.18 In Europe,the Net-Zero Industry Act19,presented in March 2023,hastheambitionofredevelopingadecarbonizedandmoreautonomous industry in Europe.This act is a positive step but much less powerf

102、ul than the IRA.Hence,the latter could attract projects formerly designed to be in Europe.French President Macron has successfully launched the“Choose France”20 program with a dedicated agency“Business France”to bring low-carbon investments to France.Thanks to these actions,four battery plants will

103、be built in the north of France(ACC,Verkor,AESC-Envision,and ProLogium).Gravithy,the greensteelcompany,willbuilditsfirstplantinthesouthof France and Holosis(a solar panel plant)will be built in Sarreguemines(Eastern France).More details on these projects are presented later.15 unece.org/sites/defaul

104、t/files/2021-11/LCA_final.pdf16OnAugust16,2022,PresidentBidensignedtheInflationReductionActintolaw,markingthemostsignificantactionCongresshastakenoncleanenergyandclimatechangeinthenationshistory.https:/www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/17https:/rmi.org/its-the-iras-fir

105、st-birthday-here-are-five-areas-where-progress-is-piling-up/18https:/pv-magazine- https:/www.diplomatie.gouv.fr/en/french-foreign-policy/economic-diplomacy-foreign-trade/news/article/the-choose-france-summit-france-s-flagship-forum-for-economic-attractivenessW E M O 2 0 2 3W E M O 2 0 2 314HOMEENERG

106、Y IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEEuropean electricity market reform:In previous WEMO Outlooks,I stressed the urgent need for this reform.Because of the 2021-2022 energy crisis and the need to decouple electricitypricesfromgaspric

107、es,theEUheadsofStatespushedthe Commission to launch this reform.On March 14,2023,the European Commission(EC)published aproposaltoreformtheEUelectricitymarket.Theobjectivesare21:1.Protecting consumers from volatile energy prices.2.Enhancing stability and predictability of the cost of energy,thereby c

108、ontributing to the competitiveness of theEUeconomy;and3.Boosting investments in renewable energy.To address the first objective,the proposal foresees notably:ToallowMemberStatestoimplementaspecifictypeofregulatedretailprices(i.e.,blocktariffs),whichhave been used during the 2021-2022 crisis to prote

109、ct consumers.To allow consumers to share renewable energy more easily.To encourage suppliers to shield against high prices through the increased use of long-term contracts withgeneratorstostabilizeenergysupplyfortheircustomers.To address the second objective:Theproposalaimstooptimizethefunctioningof

110、short-term markets,for example,reducing the minimum bid sizeforintradayandday-aheadmarketsto100kWtoimprove liquidity.The proposal encourages customers to enter stable long-term contracts,such as Power Purchase Agreements(PPAs22)andContractsforDifference(CfDs23).It also seeks to increase forward mark

111、ets liquidity.Access to PPAs is currently available only to major actors in a few Member States.The States are thus asked to implement measures to make PPAs more widely accessible,notably by decreasing risks associated with buyers payment default(through state guarantees).21 https:/fsr.eui.eu/a-summ

112、ary-of-the-proposal-for-a-reform-of-the-eu-electricity-market/22 PPAs are long-term private contracts between a renewable energy or low-carbon generator and a consumer.23CfDsareContractforDifferencebasedonadifferencebetweenthemarketpriceandanagreed“strike price”.W E M O 2 0 2 3W E M O 2 0 2 315HOMEE

113、NERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEandwhichmustfinance(atleastinpart)theconstructionofthenew EPRs25needsvisibilityonitsfinancetrajectory.Itsmajorcustomers also wish to know the conditions for purchasing electricity two years in

114、 advance.EDF defends the conclusion of long-term electricity sales contracts in the form of PPAs to set its prices more freely to financeitsinvestmentsinexistingpowerplantsandnewmeansof production(renewable and nuclear).These investment needs should reach around 25 billion.Inthiscontext,onSeptember7

115、,2023,EDFannouncedthelaunch of an experimental auction system with the placing on the wholesale electricity market of volumes to be delivered in 2027and2028(overfiveyears).Presently,theFrenchwholesalemarket only allows electricity to be purchased until 2026(three-year contracts).EDF wants to increas

116、e its visibility and that of consumers in the context of high prices.The agreement that took place in October 2023 between FranceandGermanyhasclearedthewaytothefinalizationofthis import reform.However numerous details have still to be agreed upon before the 2024 European elections.24 In two ways CfD

117、s if the“strike price”is higher than a market price,the CfD Counterparty must paylowcarbongeneratorthedifferencebetweenthe“strikeprice”andthemarketprice.Ifthemarket price is higher than the agreed“strike price,low carbon generator must pay back the CfD Counterpartythedifferencebetweenthemarketpricea

118、ndthe“strikeprice.”25 European Power Reactor or Evolutionary Power ReactorThe European Commission EC recommends two-way CfDs24,which imply setting a minimum that can be earned by the energy producer,but also a maximum price,so that any revenues above it are paid back to the public actor.CfDs have al

119、ready been used for wind and solar.Their use would be extended to geothermal,hydro without reservoir,and nuclear power(existing plants and new ones).As for the third objective,CfDs and PPAs could give reliable revenuestorenewableenergysuppliers(loweringthefinancialrisk and reducing the cost of capit

120、al).This would contribute to the objective of tripling renewables deployment in line with European Green Deal goals.The European electricity market reform is a particularly sensitive topic in France because the regulated system for the sale of nuclear electricity,Accs Rgul lElectricit Nuclaire Histo

121、rique(ARENH),ends in December 2025.This regulation obliges EDF to sell 100 TWh(between one-third and one-quarter of its nuclear electricity production)to its competitors at the verylowpriceof42/MWh.ThisregulationisverypenalizingforEDFandpartlyexplainsitsfinancialdifficulties.Thereisacertainurgencyfo

122、rEDFanditscustomerstodefinethe conditions of sale from 2026 onwards.EDF,heavily indebted W E M O 2 0 2 3W E M O 2 0 2 316HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEAccordingtoanewclimatereportissuedbytheUnitedNationsin early Septe

123、mber 2023,“the world is not on track to meet the long-term goals of the Paris Agreement,”including capping global warming at 1.5 Celsius since pre-industrial times29 and achievingnetzerocarbonby2050.What measures should be taken?Accelerate clean technologies deployment.Asuccessfulenergytransitiontor

124、eachnetzerocarbonin2050,implies a huge growth in electricity generation.According to the Energy Transition Commission30,itshouldrisefrom28,000TWh in 2022,to as much as 110,000 TWh by 2050,with over 75%ofthissuppliedbywindandsolar.Therestwillbeprovidedbyamixofnuclear,hydropower,andotherzero-carbonsou

125、rces,along with battery and other storage.China has a dominant role in clean technologies,both by its domestic investments and by its position in the international market.The country spent$546 billion in 2022 on investments that included solar and wind energy,electric vehicles,and batteries.That is

126、nearly four times the amount of U.S.investments,whichtotaled$141billion.TheEuropeanUnionwassecondtoChinawith$180billionincleanenergyinvestments.31 26 https:/www.iea.org/reports/co2-emissions-in-202227https:/climate.copernicus.eu/summer-2023-hottest-record 28https:/www.iea.org/reports/co2-emissions-i

127、n-202229https:/www.lemonde.fr/en/international/article/2023/09/08/un-world-not-on-track-to-meet-paris-climate-goals_30 https:/www.energy-transitions.org/publications/material-and-resource-energy-transition/31 https:/ change consequences are happening quicker than expected.26 June,July,and August 202

128、3 were the hottest months ever recordedsince1940.AccordingtotheCopernicusClimateChange Service27,“The world will continue to see more climate records and more intense and frequent extreme weather events,until we stop emitting greenhouse gases.”GlobalenergyrelatedGHGemissionsgrewby0.9%or321Mtin2022,r

129、eachinganewhighofover36.8Gt.Thisgrowthwasslower than 2021s 6%increase,which followed a 4.6%drop in 2020aslockdownsinthefirsthalfoftheyearrestrictedglobalmobility and hampered economic activity.28Increased deployment of clean energy technologies such as renewables,electric vehicles,and heat pumps hel

130、ped prevent an additional 550 Mt in CO2 emissions.Industrial production curtailment,particularly in China and Europe,also averted additional emissions.CO2 growth in 2022 was well below global GDP growth of 3.2%,reverting to a decade-long trend of decoupling emissions and economic growth which was br

131、oken by 2021s sharp rebound in emissions.W E M O 2 0 2 3W E M O 2 0 2 317HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEWe will concentrate our analysis on clean electricity generation by acknowledging that“green heat”,as provided by

132、biomass and geothermal,is an important complement notably because it is storable.WewillnotanalyzeindetailtheprogressinCCUS,asthiswasdone extensively in the 24th edition of WEMO.32 We can note that with solid market carbon prices33,CCUScompetitivenesscouldincreasethankstoindustrialization,andthatitis

133、certainlyatechnologythatisneeded.IntheUnitedStates,Oil&Gascompanies are strongly committed to developing this technology and the IRA provides subsidies.Europe is late(compared to the U.S.)inCCUSdevelopment;however,theEChaslaunchedaconsultation to state its vision.Finally,China is making significant

134、progress on CCUSdevelopment.34 This is of the utmost importance as China is commissioning two large coal plants per week.35Finally,as stated in 2022,Direct Air Capture is not a mature technology,since it consumes a lot of energy and because it is expensive.Nuclear:Climate changes and energy sovereig

135、nty issues are triggering nuclear revival.In early 2023,at the initiative of France,the European Nuclear Alliance was created.It aims to bring together all the countries of Europe wishing to rely on nuclear energy,alongside renewables,to carry out their energy transition.In May,the 16 European count

136、ries participating in this alliance(Belgium,Bulgaria,Croatia,theCzechRepublic,France,Finland,Hungary,the Netherlands,Poland,Romania,Slovenia,Slovakia,Estonia,Sweden,Italy,andtheUnitedKingdom)announcedthatthey will prepare a roadmap to develop an integrated European nuclear industry reaching 150 GW36

137、 of nuclear power capacity intheEUselectricitymixby2050.TheycallontheEuropeanUnionandinternationalpartnerstoconsiderthecontributionofallaffordable,reliable,fossil-free,andsafeenergysourcesto achieve climate neutrality by 2050.Nevertheless,actions must follow the announcements.Further,financing terms

138、 for new nuclear power plants have not yet been decided,including notably in France where there are ambitious plans to build six new EPR reactors and consider building a further eight.At the end of August 202337,inadditiontoEDFfunding,theU.K.government announced that it has made available a further

139、341 million(400million)ontheSizewellCnuclearpowerplant.SizewellCisexpectedtohosttwoEPRsof1.6GWcapacityeach,like the Hinkley Point C plant,which is under construction.The constructionofSizewellCremainssubjecttoafinalinvestmentdecisionanddependsnotablyontheprojectfinancingastheU.K.governmentmustraise2

140、0billion(20.3billion)ofprivatefinancethroughdebtandequitybeforeconstructioncan start.To make the investment attractive to institutions(suchaspensionfunds),theU.K.governmenthasadoptedtheRegulated Asset Base(RAB)regulation38 for the electricity to beproducedbySizewellC.IncomparisonwiththeCfDmodelused

141、for Hinkley Point C,under RAB,construction risks would fall on the public(most likely as electricity consumers,but also as taxpayers).However,it will probably take until the end of 2024tocloseSizewellsconstructionfunding.32 https:/ InEurope,EmissionTradingSystem(ETS)carbonpriceisaround90/t34 35 http

142、s:/energyandcleanair.org/publication/china-permits-two-new-coal-power-plants-per-week-in-2022/#:text=A%20total%20of%20106%20GW,from%2023%20GW%20in%202021.36 100GW in 2023.As there will be nuclear plants decommissioning from 2023 to 2050 the new plants capacity to be built will exceed 50GW.37https:/w

143、orld-nuclear-news.org/Articles/More-funding-for-Sizewell-C-preparations38https:/www.lowcarboncontracts.uk/W E M O 2 0 2 3W E M O 2 0 2 318HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE1.Existing reactors have been operating safely as

144、 no important incident or accident happened since the 2011 Fukushima accident.In 2023,there are about 440 nuclear power reactors operating worldwide with a combined capacity of about390GW.39 They provide around 10%of the worldwide electricity needs.The 2022 IEA Net Zero Emissions by 2050 Scenario(NZ

145、E)40 sees nuclear capacityincreaseto871GWby2050.Outofthe60power reactors currently being constructed,the vast majority is in Asia(China,India,and North Korea)and Russia has four reactors under construction.Lifetime:The nuclear power plants lifetime should be linked only to its safety condition and p

146、rice competitiveness.However,these technical and economic considerations are not considered by politicians that decide to close safe and competitive reactors.This was unfortunately the case in France with the closure of Fessenheims two reactors in 2020.After the Fukushima accident in 2011,the German

147、 Chancellordecidedtophaseoutthecountrys17nuclear reactors.Accordingly,all have been stopped by mid-2023,including the three last ones that were provisionallykeptopenduringthe2022-2023difficultwinter.This happens while Germany is increasing its renewable output and may be confronted with grid stabili

148、ty problems.During the summer of 2023,two important lifetime extension decisions were announced.On the one hand,Belgium reached an agreement with operator Engie to extend the use of the countrys nuclear reactors by 10yearsafterRussiasinvasionofUkrainepromptedBelgiums governing coalition to rethink p

149、lans to rely more on natural gas.Initially,Belgium was to have exited nuclear power entirely by 2025,but will now extend the lives of its two newest reactors,Doel 4 and Tihange 3,according to the agreement.On the other hand,the French Nuclear Safety Authority issued a decision allowing for the conti

150、nued operation of EDFs Tricastin 1 nuclear reactor in southern France.ItisthefirstlifetimeextensiongrantedtoaFrenchreactor after 40 years of operation.These decisions will allowtokeeptheexistingnuclearfleetwhilewaitingfor the new nuclear plant to be built.In addition,reactor uprates41 provide immedi

151、ate solutions to maintaining and increasing power capacity in existing reactors.Since 2001,globa net nuclear capacityhasincreasedfrom352.72GWto392.61GW42,an 11%increase,while the number of operational nuclearpowerplantshasnotincreasedsignificantly(438vs.442).Someofthisisattributabletosmallerreactors

152、 being replaced by larger ones,but most of the increase is due to improvements in existing reactors.These investments usually have a compelling payback for utilities as capital investment represents around80%ofthenuclearelectricitycost.Upratesare relatively small investments leading to capacity incr

153、eases ranging from 0.4%to 20%.The French nuclear operator was prevented from increasingitsfleetcapacitybythe2015lawcappingthetotal nuclear output at 63 GW.Thanks to the new 2023 law on“nuclear acceleration”,this non-understandable constraint has been lifted and EDF is engaging in an uprating program

154、.39https:/world-nuclear.org/information-library/current-and-future-generation/plans-for-new-reactors-worldwide.aspx40 NetZeroEmissionsby2050Scenario(NZE),mapsoutawaytoachievea1.5Cstabilizationinthe rise in global average temperatures,alongside universal access to modern energy by 2030.”41 An uprate

155、is any change that increases the power output of42 https:/ E M O 2 0 2 3W E M O 2 0 2 319HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE1.New large reactors:Out of the 60 power reactors currently being constructed,the vast majority is

156、 in Asia(China,India,and North Korea)and Russia has four reactors under construction.Most of these constructions are progressing along the initial plant.This is not the case in western world.OnJuly31,2023,theU.S.utilityGeorgiaPowerannounced that the AP1000 Vogtle 3 was in commercialservice.Itbecomes

157、the93rdreactorinthecountry.Unit4isexpectedtogenerateelectricityinthefirstquarterof2024atthelatest.Theyaresevenyearslateand$17billionoverbudget.SomeofthekeypromisesofVogtlelikebuildingmodulesoffsiteandshipping them for cheaper on-site assembly did not materialize.InEurope,FinlandsOlkiluoto3EPR(1600MW

158、)finallyentered in service more than ten years later than planned and with a several billion Euro cost overrun.Olkiluoto3isthefirstEPRtoenterserviceinEuropeand the third in the world after the Taishan 1 and 2 plants in China.The French Flamanville 3 EPR should startoperationsinthefirstquarterof2024.

159、Similarlyto Olkiluoto EPR,the delay will be 12 years and the cost overrun around 10 billion.(The projects cost at completionisestimatedat12.7billion,morethanfour times the initial estimate of 3.3 billion).These examples illustrate the difficulty of building new large third-generation reactors in wes

160、tern countries.2.SMRs:Development on small modular nuclear reactors(SMRs)is underway globally and is generating a lot of interest.SMRs promise technological advances that address key challenges in the nuclear power generation cycle,includingprojectsize,costandfinancing,timetomarket,andlocationflexib

161、ility.In 2021,after a nine-year construction,research and technological development,the China Huaneng Group Co.s200MWUnit1reactoratShidaoBayhasstartedoperations in Shandong province,using helium as the coolingfluidinsteadofwater.In2019,thefloatingnuclearpowerplantAkademikLomonosov was connected to t

162、he grid,generating electricityforthefirsttimeinRussiasfareast.There are currently four SMRs in advanced stages of construction in Argentina,China,and Russia.In addition,several existing and newcomer nuclear energy countries are conducting SMR research and development.W E M O 2 0 2 3W E M O 2 0 2 320

163、HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE Design:There is a large range of SMR designs in development(morethan70differentdesignsasof2023).The most mature SMR concepts being proposed by vendors are evolutionary variants of Light

164、Water Reactors(LWR)operatingworldwide;thesebenefitfrom many decades of operating and regulatory experience.They represent approximatively 50%of the SMR designs under development.The other 50%of SMR designs corresponds to Generation IV reactors(Gen IV SMR)that incorporate alternative coolants(i.e.,li

165、quid metal,gas,or molten salts),advanced fuel,and innovative system configurations.WhileGenerationIV-baseddesignsdonot have the same levels of operating and regulatory experience as that of LWRs,and additional research is still needed in some areas,they nevertheless benefitfromanextensivehistoryofpa

166、stresearchanddevelopment.These reactors have advanced engineered features and are deployable either as a single-or multi-module plant.SomeareclassifiedasmicroSMRs,producingaslittle as 10 MW,while many are designed for a capacity of about 300 MW.Benefits:Smallmodularreactorsofferalowerinitialcapital

167、investment and thus a reduced risk,greater scalability,andsitingflexibilityforlocationsunableto accommodate larger reactors.They also have the potential for enhanced safety and security compared toearlierdesigns.Theirsmallsizeandmodularityfacilitate their adoption in regions and sectors where the us

168、e of large nuclear power plants is more limited.Challenges:ThesmallersizeofSMRsimpliesthattheydontbenefitfromeconomiesofscale.To overcome this economic challenge,“series construction”will become an imperative.Factory fabrication also provides an environment of enhanced quality control that can reduc

169、e construction risks and enable the introduction of new manufacturing techniques.Some of these benefits have already been demonstrated in other industries but still need to be proven for SMRs.At the same time,higher levels of regulatory harmonizationareneededtosupportaglobalmarket,as well as a reduc

170、tion in the number of designs proposed by vendors.Obtaining licensing agreements is potentially a challenge for SMRs,as design certification,construction,andoperationlicensecostsare equivalent to those of large reactors that generate much more electricity.In addition,the dispersion of SMRs could rai

171、se concerns on nonproliferation management.Finally,duetotheirsmallersizeanddeploymentoverlarger areas;harnessing the same amount of electricity from SMRs than large reactors will require an increased number of grid connections(similar to wind or solar farms).This places additional demands on grid op

172、erators.They will encounter the same challenges in grid connection as dispersed wind or solar farms.An illustration of these challenges is the NuScale SMR project development.It has long been named the most advancedcompanyinthefieldofSMRs.Itsdesign,composedof50MWemodules,isalsothefirsttohavereceived

173、certificationfromtheU.S.safetyauthority(NRC)in January 2023.However,at the end of 2022,the company announced a 53%increase in the SMRs targetelectricityprice,drivenbyadramatic75%jumpin the projects estimated construction cost,which hasrisenfrom$5.3billionto$9.3billion.Thenewestimate makes the NuScal

174、e SMR about as expensive(on a dollars-per-kWh basis)as the two-reactor Vogtle nuclear plants(see above),undercutting the claim that SMRs will be cheap to build.43 While SMRs will certainly contribute in the future to clean energy generation,it is likely that they will not contribute meaningful amoun

175、ts in western countries,for another decade.43 https:/ieefa.org/resources/eye-popping-new-cost-estimates-released-nuscale-small-modular-reactorW E M O 2 0 2 3W E M O 2 0 2 321HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE Start-ups:SM

176、R development is proceeding in western countries with a lot of private investment,including smallstart-upcompanies.Outofthe83SMRprojectsfrommanydifferentplayerssurveyedbyIDTechEx44,around30%oftheorganizationsinvolvedarestart-ups.The involvement of these new investors is positive,as itbringsfreshfina

177、ncingtothenuclearindustry,newideas,and entrepreneurial management skills.3.Nuclear fusion breakthrough:Presentreactorsarebasedonfissionnuclearreactionthat split atoms to generate energy.A fusion reaction would force lighter atoms(for example deuterium)together to create heavier atoms.Both reactions

178、generate carbon-free energy,but fusion avoids much oftheradioactivewastethatfissioncreates.Fusingatoms together requires extreme heat and pressure.Upuntilrecently,thedevelopmentwasbasedonmagneticconfinement(Tokamak),notablywiththevery large ITER45 international project.Recently,fusion confinementtri

179、ggeredbylaserhasmadeascientificbreakthrough.In December 2022,scientists at Lawrence Livermore National Laboratory in California achieved fusion ignition.46However,theefficiencyofapotentialfusionenergy power plant remains to be seen as the reported fusion net gain required about 300 megajoules of ene

180、rgy input,which was not included in the energy gain calculation.This energy input,needed to power 192lasers,camefromtheelectricpowergrid.Inotherwords,the experiment used as much energy as a typical household does in two days while the fusion reaction output was enough energy to light just 14 incande

181、scent bulbs for one hour!So,a real break-even was not reached.Presently there is an appetite for funding nuclear fusion from governments and the private sector.For example,Germany,which has phased out its nuclear plants,announced in September 2023,that it will invest more than 1 billion in fusion re

182、search over the next fiveyears.Ontheprivatesectorside,entrepreneursand start-ups are investing and getting public funding(from the Department of Energy,for example).Presentlythereare39companiesinnuclearfusion47 and this number is growing.However,billions of dollars are needed before fusion can meani

183、ngfully contribute to our energy system.Solar and wind power development must accelerate:1.In 2022,investment in clean energy technologies48 has significantly outpaced spending on fossil fuels,triggeredbyaffordabilityandsecurityconcerns.2022was a record year for renewable electricity capacity additi

184、ons,with annual capacity additions amounting to about 340 GW.49PublicpoliciesintheUnitedStates(IRA),Europe,and China(14th Five-Year Plan)have pushed renewable energies and should continue in thefuture.Thecapacityofoffshorewindfarmsiscontinuously increasing thanks to the wind turbine capacity increas

185、e.The development of the cable industryandfloatingoffshoreplatformsenablestheconstructionofverylargeoffshorefarmsatalonger distance from the coast(which reduces local opposition).For example,the Seagreen50offshorewindfarminScotland is expected to be fully operational during the summer of 2023 with 1

186、14 turbines and a total capacityof1,075MW.Itselectricitywillbeexportedvia19kilometersofundergroundcables.Thelargestsolar farms are in China,India,and the Middle East.The Golmud Solar Park in China is the worlds largest 44 https:/ https:/www.iter.org/fr/mach/tokamak46 https:/ the momentum behind more

187、 sustainable options.49https:/www.iea.org/energy-system/renewables#tracking50 https:/www.power- E M O 2 0 2 3W E M O 2 0 2 322HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEsolarfarmwithaninstalledsolarcapacityof2.8GW,generated by nea

188、rly seven million solar panels.Plans are to expand the site to reach 16 GW within thenextfivetosixyears.Despitethoseimpressiveachievements,renewable deployment must accelerate.Several factors can contribute to this needed acceleration.2.Accelerating the permitting process,since it can be an obstacle

189、 to renewable energy projects by increasing delays and cost.To address the issue,the revised Renewable Energy Directive includes provisions thatsimplifypermittingprocesses.IntheU.K.,theSimplificationsDecree-Lawforrenewableenergy,green hydrogen,and electricity grid entered into force onApril19,202251

190、.In March 2023,France adopted the law on the acceleration of the production of renewable energies,the aim of which is to halve the deadlines for carrying out renewable energy projects.In 2020,wind,solar,as well as wood and hydro energies,represented 19.1%ofcountrygrossfinalconsumption,whichwasbelowi

191、tsEUtargetof23%.The law is thus structured around four pillars:Accelerate the procedures:In France,it takes,on average,fiveyearsofprocedurestobuildasolarparkrequiring only a few months of work,seven years for awindfarm,and10yearsforanoffshorewindpowerpark twice as long as its European neighbors.Free

192、upthenecessaryland,bymobilizingcarparks,degraded land,and the edges of motorways to deploy photovoltaic panels.Acceleratethedeploymentofoffshorewindprojectsthrough less complex consultation procedures with localstakeholdersandthroughfieldplanningthatwould be carried out on the scale of a seafront.Im

193、provethefinancingandattractivenessofrenewable energy projects.3.Boosting innovation:The innovation goals for renewables are like those analyzed in the 24th edition of the WEMO.52 For PV solar technology,they aim to:Increase the solar panels yield53,with innovative material such as perovskites.Develo

194、p longer-lasting solar cells.Developsolarcellsprintableontoflexiblesurfaces.Implement solar panels that track the sun from east to west throughout the day.Develop solar power plants that work at night.Extend the surfaces covered by PV panels by installingthemonrooftopsandlakes(floatingsolar).51 http

195、s:/ https:/ https:/.au/renewable-news/latest-advances-in-solar-pv-technology-could-make-solar-panels-more-efficient-and-affordable/W E M O 2 0 2 3W E M O 2 0 2 323HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEFor wind technology,inno

196、vations aim to:Increasewindturbinessize:ChinaThreeGorgesCorporation announced that a 16 MW turbine had been successfully installed at the companys offshorewindfarmonJuly19,2023.Thebehemothis 152 meters tall,and each single blade is 123 meters and weighs 54 tons!Design wind turbines with innovative a

197、erodynamic and structures.Usebettermaterials,includingadvancednanomaterials like graphene for turbine blades,and consider hybrid materials for wind turbine towers,combining both steel and concrete for enhanced durability and performance.Adaptoiloffshorefloatingplatformtechnologiestooffshorewind,enab

198、lingtheconstructionofwindfarms further from the coast.For both solar and wind there is a need to Recycle equipment.Improve operations,control,and maintenance;and Implement a data-driven approach,by developing advanced measurement systems and improving numerical prediction tools.4.Improving wind and

199、solar competitiveness:After years ofimpressivedropsincost,windandsolarlevelizedcost of electricity(LCOE)started to increase in 2021.In 2022,this trend continued.Like nuclear electricity costs,the initial capital investment accounts for the majority of solar PV and wind power plant generation cost(as

200、 operations and maintenance costs are very low).In late 2020,the prices of major inputs such as steel,copper,aluminum,and polysilicon began to rise sharply,as did freight and land transport costs,due to supply chain challenges and growing demand during thepost-Covid-19globaleconomicrebound.During 20

201、22,freight and commodity prices have fallensignificantlybelowtheirpeaks,buttheyremainelevated compared with 2020.For example,polysilicon price(where China has a dominant position)in Q1 2023 was 200%higher than the January 2020 average price.U.S.steelincreasedby100%duringthesameperiod.Thesecostincrea

202、seswerenotoffsetbycostreductionsfrom technological innovation and,according to IEA54,the resulting LCOE increase for 2022 is estimated at 15-20%for these technologies.Except for China,many regions experienced cost increases,especially for offshorewind.In Europe55,between 2020 and 2022,LCOE onshore w

203、indcostincreasedfrom38/MWhto50/MWh,solarutilityscalefarmscostrosefrom48/MWhto67/MWh,andoffshorewindcostjumpedfrom101/MWhto 114/MWh.Although their costs continue to exceed pre-Covid-19 levels,solar PV and onshore wind remain the cheapest option for new electricity generation in most countries.5.Overc

204、oming industry difficulties and increasing sovereignty:Three recent events illustrate the wind sector difficulties.On August 30,2023,Denmarks Orsted56,the worldslargestoffshorewindfarmdeveloper,announced impairments of 2.3 billion due to supply chain problems,soaring interest rates,andalackofnewtaxc

205、redits,especiallyonU.S.offshoreprojects.Inoneyear,productioncostsrosesignificantly,whilethelong-termelectricitypurchasepricesofferedbyStateshavecontinuedto fall.This situation makes operators dependent on subsidies.Part of Orsteds disappointment comes from a reduction in the expected subsidy forthee

206、stablishmentofitsfieldofftheNorthAmerican coast.54 iea.org/reports/renewable-energy-market-update-june-2023/will-solar-pv-and-wind-costs-finally-begin-to-fall-again-in-2023-and-2024.55 https:/ https:/ E M O 2 0 2 3W E M O 2 0 2 324HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY F

207、LOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE In July 2023,Swedish utility Vattenfall57 announced that it would stop development of its British NorfolkBoreasoffshorewindproject(1.4GW)dueto rising costs.Vattenfall President and CEO Anna Borg said that costs rose by 40%and she warned that Britain could

208、 struggle to meet its wind targets without improved incentives.In August 2023,Siemens Gamesa58 booked a 2.6billionlossinitsfiscalthirdquarterduetohigher-than-expected charges associated with its onshore turbines.The turbine company expects to record a total loss for the year of around 4.5 billion,re

209、flectinglowerprofitcontributionsfrom the execution of its current order backlog mainly related to increased product costs.These challenges highlight a broader issue facing wind turbine manufacturers.They are actively investing inresearchanddevelopmenttoenhancethesizeof their turbines with the goal o

210、f reducing costs.However,theyfinditchallengingtorecovertheseR&Dinvestments,asclientsaredemandingevenfaster cost reductions.Indeed,the latter(utilities andOil&Gascompanies)arebiddingfornewprojects at continuously lower electricity prices to win.To secure their wind turbine procurement,European renewa

211、ble companies are opening theirsupplierlisttoChinesefirms(GoldwindandEnvision Energy,for example).According to Renewable Digital59,fiveoutofthe10largest wind turbine manufacturers60 are Chinese.Governments,regions,and States in the U.S.and EU should either increase subsidiaries on wind projects or i

212、ncrease the allocated price to avoid bankruptcy of their domestic wind turbine companies,which would endanger their energy sovereignty.WhiletheU.S.governmenthaslimitedtheChinesesuppliersaccesstotheUSbylegislationssuchasthe IRA,in Europe,the solar PV sector is totally dominatedbyChinesesuppliers.Nowt

213、heEUisreacting by encouraging PV panels manufacturing in Europe.In June 2023,the French President announced an investmentof700millionbyHolosolisina5GWproduction plant for photovoltaic solar cells and modules in France.This factory complements another 5 GW project with an investment of 1.5 billion ov

214、er the entire solar module cycle,from the formation of ingots.In the medium term,new PV production capacity should reach 10 GW on French territory.61 However,China is dominant in polysilicon procurement.Its share of worlds polysilicon productionhasgrownfrom30%to80%injustonedecade(2012-2021)62andshou

215、ldexpandto90%soon.Out of the top 10 polysilicon manufacturers in 2021,only two are situated outside of Asia:Wacker(Germany/UnitedStates,ranking4th)andHemlock(UnitedStates,ranking9th).Theremainingsevensuppliers are based in China.57https:/ https:/www.enerplan.asso.fr/industrie-solaire-une-ambition-en

216、fin-a-la-hauteur-des-defis-en-france62 https:/ Vestas Wind Systems(Denmark),Siemens Gamesa(Spain),Goldwind(China),Nordex SE(Germany),General Electric Renewable Energy(France),Envision Energy(China),Zhejiang Yunda Wind Power(China),VENSYS Energy AG(Germany),Mingyang Smart Energy(China),HZ Windpower(C

217、hina)W E M O 2 0 2 3W E M O 2 0 2 325HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINERussiasinvasionofUkrainehasopenedtheeyesfor what it means to be dependent on a country for energy supply.Western governments should not make the same

218、mistake with China.63It is high time to establish non-Chinese solar supply chains.China has demonstrated what the ingredients of success are:low electricity rates for power-hungry polysilicon and ingot production,loan guarantees for private investment,cost-efficient equipment manufacturing,and strat

219、egic foresight.”Johannes BernreuterFounder and head Bernreuter ResearchElectricity storage development is of the utmost importance to balance electricity grids.According to IEA,to reach climate change mitigation objectives,the world needs to triple the global installed capacity of renewable power by

220、 203064(mainly intermittent wind and solar).InMarch2023,theEuropeanUnionmemberscommitted65to sourcing 42.5%of their energy from renewable sources by 2030,with a potential top-up to 45%.This increasing share of intermittent renewable generation and the closure of“peaker plants”(powered by natural gas

221、)that insure the grid balance at critical hours,is triggering an increasing need for electricity storage.For example,in Australia,renewable energy sources supply about27%ofAustraliaselectricitygeneration,andattimesupto 52%.Such rapid penetration of renewables is already posing significantchallengest

222、ogridstabilitywithutility-scaleenergystorage becoming increasingly important.The recently drafted Australian Integrated System Plan(ISP)highlights challenges for energy storage in Australia.They include:Theneedtotriplethefirmingcapacitythatcanrespond to a dispatch signal,including utility-scale batt

223、eries,hydro storage,gas generation,smart behind-the-meter batteries,or virtual power plants(VPPs).By 2050,a National Electricity Market(NEM)without coal will require 45 GW/620 GWh of storage,in all forms.1.Pumped storage hydropower(PSH)66:Presently,the largest storage capacity is provided by PSH.Wit

224、h more than 100 projects in the pipeline,International Hydropower Association(IHA)67 estimates that PSH capacity is expected to increase by almost 50%to about 240 GW by 2030.The IEA has set a target of 420 GW of pumped storage worldwide by 2050.China leadsinstalledPSHcapacitywith50.7GW,holding30%of

225、the worlds total.For prospective capacity,China isthefirstcountrywith80%oftheglobalprojectedcapacity followed by Europe,Australia,India,and Northern America.An innovative project in Germany is studied by scientists.Itconsistsoffillingopencastlignitemines(at63 Research:https:/ https:/www.iea.org/comm

226、entaries/tripling-renewable-power-capacity-by-2030-is-vital-to-keep-the-150c-goal-within-reach65 https:/ https:/www.energy.gov/eere/water/pumped-storage-hydropower67https:/www.hydropower.org/factsheets/pumped-storageW E M O 2 0 2 3W E M O 2 0 2 326HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMEREN

227、ERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEa depth of 500 to 300 meters)located in Rhineland and installing PSH.Feasibility studies with elaborated cost estimation are the next step.2.Batteriesofferacomplementtocreatingaloweremission68,more resilient grid.The world will need nearly

228、 600 GWh of battery energy storage by 2030 toachievenet-zeroemissionsby2050,accordingtoestimates from the IEA.69 In 2021,there was less than 60 GWh of battery storage capacity,hence the need for a big acceleration of stationary batteries installations.70 In 2021,about 25 GWh of battery energy storag

229、e system(ESS)capacity was added globally,which amounts to 10-15%of EV battery demand.Although the demand for ESS batteries is growing substantiallymore than 100 GWh of new capacity has been announced for 2022-2024,the market is concentratedinjustafewregions:theU.S.(mainlyCalifornia),China,and Europe

230、.In China,for grid stability reasons,wind or solar farms will be connected to the grid only if they have stationary storage equivalent to about 5-20%of the totalpowergenerated.SomeU.S.stateshavesimilarlegislation.With the higher renewable generation and its intermittency,curtailments of solar or win

231、d generation will be more frequent.Either these solar or wind farms are collocated with hydrogenelectrolyzers71 to produce hydrogen at near zeroelectricitycost,orthiselectricityislost,thusdestroying the value of investing in these farms.This is why the value of stationary storage is growing.In Augus

232、t 2023,French utility company Engie has reached a deal,with an equity value of over$1 billion,topurchaseTexas-basedbatteryenergystoragefirmBroad Reach Power.72 As part of the transaction,Engie will now own 350 MW of grid-scale battery assets in operation,alongwith880MWunderconstructionand1.7GWofstor

233、ageprojectsinthepipeline.U.S.-listedprivateequityfirmKKRissettoacquirejointcontrolofU.K.batterystoragedeveloperZenobinpartnershipwith existing investor Infracapital,according to reports.73Thedealtotals$1.089billionofinvestment.This growth in ESS battery demand is ramping up at the same time as the n

234、eed for EV batteries,meaning that both types of battery makers are seeking the same resources,such as lithium or cobalt(see above).However,the specs for stationary batteries are not the same as for EV batteries.The latter can accommodate a lower energy density since weight and space constraints are

235、not a concern.ESS battery manufacturers are opting for lithium-iron-phosphate(LFP)batteries,which have a lower energy density compared to nickel-manganese-cobalt(NMC)batteries.However,this lower energy density is not asignificantconcernforESSapplications,especiallyconsidering that LFP batteries do n

236、ot rely on nickel and cobalt,unlike NMC batteries.Its worth noting that NMC batteries are still the primary choice for electric batteries.Technologies:Lithium-ion batteries are the best option for stationary storage today.Sodium-ionbatteriesarenon-flammable(thussafer),have a longer life cycle,perfor

237、m well in low temperatures and can be more sustainable due to their reduced use of critical materials.They also share a similar design to lithium-ion batteries,making manufacturing less of a challenge.The main drawback today is their relatively lower energy density compared to lithium-ion 68Theycanb

238、econsideredas“green”onlyiftheyarerecycled.69https:/www.iea.org/energy-system/electricity/grid-scale-storage#tracking 70https:/ and probably ammonia plants will have to be built also as liquid ammonia is easier to transport.72https:/ https:/www.energy-storage.news/private-equity-firm-kkr-agrees-us1-b

239、illion-deal-for-uk-developer-zenobe-reports/W E M O 2 0 2 3W E M O 2 0 2 327HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEbatteries(which is not a problem for stationary batteries).OngoingR&D74 aims at improving their performance to

240、reach energy density similar to LFP batteries.Lower cost can be expected once production is scaled up.CATL75,the worlds largest battery-maker of Chinese origin,announced it plans to have a supply chain for sodium-ion batteries in place by 2023.Other early-stage battery technologies are being develop

241、ed for stationary storageapplications,suchas:flowbatteries,metal-air(notably aluminum-air)batteries,or liquid metal batteries using molten salt.Flow batteries76:Aflowbatteryisarechargeablebatteryinwhichelectrolytesflowthroughoneormore electrochemical cells from one or more tanks.Expandingtheenergyst

242、oragecapacityofaflowbattery is a straightforward process accomplished by increasing the volume of electrolyte stored in the tanks.The electrochemical cells can be electrically connected in series or in parallel,thus determiningthepoweroftheflowbatterysystem.This decoupling of energy rating and power

243、 rating isanimportantfeatureofflowbatterysystems.However,the system is complex as it requires a pumpandflowmanagementsystem.Moreover,flowbatterieshavehighcostsatpresent.Asafinalconsideration,manyplayersintheflowbattery industry have recently stumbled,including Imergy,Aquion,and ViZn.It is likely tha

244、t only a fewwillbeabletocapitalizeonthepotentialadvantagesofflowbatteries.Recycling plays a vital role in ensuring the sustainability of batteries and electric vehicles(EVs).To achieve true sustainability,it is essential to recycle batteries,and simultaneously,ensure that the electricity used for re

245、charging them comes from low-carbon sources.EV batteries no longer suitable for vehicles:When an EV ultimately retires(or crashes),its battery pack can be reused for stationary storage.For example,the Mobility House(Zrich)already earns 1000 per EV battery pack per year by selling 13 services from st

246、ationary or parked EV battery packs to the electricity grid in several European countries.Recycling:Interest and investment in lithium battery recycling have grown in recent years as critical materials needs are exploding(see above)and carbon emissions from metals need to decrease.New legislations,s

247、uch as the European battery passport,are making recycling compulsory.74Theycanbeconsideredas“green”onlyiftheyarerecycled.75https:/www.iea.org/energy-system/electricity/grid-scale-storage#tracking 76https:/ E M O 2 0 2 3W E M O 2 0 2 328HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMO

248、NEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE Prior to recycling,batteries are collected,sorted,and dismantled.Then plastics and metals will be separated.Metals are crushed,producing“black mass”which is a powder containing a mixture of cathode and anode materials.It is made up of many metals suc

249、h as copper,manganese,cadmium,lithium,cobalt,etc.,and contains recoverable metal oxides.The objective is to separate each metal from this mass and remove toxins from the material to avoid contaminating the metals.The purer the metal,the better it can be recycled.For this purpose,two techniques are u

250、sed:pyrometallurgy and hydrometallurgy.“Black mass”is on the verge of becoming a raw material in its own right.TheS&PGlobal77 launched regular pricing of this material in 2023.Car manufacturers are becoming more and more interested in black mass78,with BMW,Ford,and Mercedes announcing partnerships f

251、or the development of battery recycling projects.Specialists in metals and chemistry are doing the same.In May 2023,Glencore joined forces with the Canadian Life Cycle to process black mass and create the largest European battery recycling center.The sector has a few challenges first and foremost th

252、at of profitability.The economic viability of recycling plants will be negatively impacted by the increased usage of LFP batteries,which makes metal recovery less profitable.Atthecurrentmarketprice,aNMCbattery contains approximately$10,000 of metals per ton of battery cells.Conversely,the value of t

253、he metals in an LFP battery is only$4,000 per ton.The carbon footprint of an electric battery must consider the footprint of mining.Recycled material has a much lower carbon footprint.The carbon footprint of a ton of aluminum is between 4 and 15 tons of CO2 while the carbon footprint of recycled alu

254、minum is 5 to 25 times lower.AccordingtoS&PGlobalforecasts,recoverywillrepresent approximately 15%of the global supply of lithium,11%of nickel,and 44%for cobalt in 2030.Thus,recyclingwouldsignificantlyreducethe risk of shortage linked to these metals rapid increase needs.According to Energy Transiti

255、on Commission models79,lithium consumption will be 30%higher than global supply in 2030,but with an emphasisonrecyclingandefficiency,thegapcanbe reduced to 10%.Recycling facilities:In 2022,Redwood Materials80,the battery recycling company founded by a former Tesla executive,announced that it will bu

256、ild a massive$3.5 billion facility in South Carolina that would produce 100 GWh of cathode and anode components annually.The DOE acknowledges thattheU.S.needstoexpanditsbatteryrecyclingcapabilities to meet growing demand for EVs,and to lower the cost of EVs.In February 2023,it committed$2 billion in

257、 a new,conditional loan to help Redwood Materials build out its battery recycling campus.Batteries costs:Thanks to the scaling up of electric vehicle production and to the construction of mega factories,battery costs have fallen dramatically in recent years.However,after more than 10 years of decrea

258、ses,the volume-weighted average price for lithium-ionbatterypackshasrisento$151/kWhin2022,a7%increasefrom the previous year in real terms.Battery costs increase is notably linked to high lithium prices.Higher adoption of less expensive chemistries like LFP was overtaken by the rising cost pressure o

259、n batteries.BloombergNEF81 anticipates that average battery pack prices will not decrease in 2023.77https:/ E M O 2 0 2 3W E M O 2 0 2 329HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEBattery production:In 2022,the world added 102 gi

260、gafactory projects to the ten-year pipeline,with a total capacity of 3.1 TWh.In 202282,$131 billion in battery production investment was pledged,a 24%increaseoverthepreviousyear;74%oftheseinvestmentsarein China.By 2030,thanks to these investments,worldwide lithium-ion batteries manufacturing will gr

261、ow by more than five times.China has a leading position in batteries manufacturing,followed byEurope,theU.S.,SouthKorea,andJapan.83China produces three-quarters of all lithium-ion batteries andishometo70%ofproductioncapacityforcathodesand85%foranodes.Overhalfoflithium,cobalt,andgraphiteprocessingand

262、refiningcapacityisinChina.SouthKoreaandJapan have considerable shares of the supply chain downstream of raw material processing,particularly in the highly technical production of cathode and anode material.Due to the extent of its investment in new capacity,China is expected to remain the leading pr

263、oducer by the end of the decade.According to estimates,China should produce 69%of the worlds lithium-ion batteries by 2030.82https:/ on the gigawatt-hour scale of capacityThere are already 125 battery gigafactories84 operating in China,more than ten times the combined number in Europe and North Amer

264、ica.China also has twice as many plants in planning or under construction.Outside China,the race is on to build bigger and better battery facilities,especially in South Korea,another major manufacturer of EVs.TheU.S.istheregionwiththesecondlargestnumberofgigafactories currently in operation,with man

265、y of these clustered around a newly emerging“battery belt”in the Midwest and South,close to the Tesla plants in Texas and California.Driven by its decision to ban the sale of combustion engines after 2035,Europe is catching up.60%of all new cars sold in 2030 are expected to be battery electric vehic

266、les,rising to a 100%share by 2035.This regulatory push,combined with climate-consciouspolicies,hasledtosignificantinvestmentsin Europes battery industry.W E M O 2 0 2 3W E M O 2 0 2 330HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINECu

267、rrently around 50 Li-Ion batteries factories have been planned in Europe85,although only a handful of these are currently operational.One of the best known of these is Swedish battery manufacturer Northvolt,which started operations in May 2022.The factory is expected to ramp up to a total capacity o

268、f 60 GWh per year.Poland,Hungary,Germany,France,and Sweden are emerging as key players.Exceptforlithiumsupply,Europecouldachieveself-sufficiencyin battery cells,meeting 100%of its Li-ion battery cell demand by2027.86While Europes progress is promising,there are potential challenges.Notably,IRAU.S.su

269、bsidiesandITCCanadiansubsidies87,to attract investments in clean power and green infrastructures,are luring European battery manufacturers away from Europe.For example,Northvolt is concluding a$5.3 billion deal to build a new battery plant near Montreal.8885https:/www.transportenvironment.org/wp-con

270、tent/uploads/2023/03/2023_03_Battery_risk_How_not_to_lose_it_all_report.pdf86https:/ E M O 2 0 2 3W E M O 2 0 2 331HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEHydrogen:1.Hydrogen production technologies:At present,nearly all hydrog

271、en production worldwide is grey hydrogen that is produced from methane or coal throughnaturalgasreformationorcoalgasification.It emits high volumes of GHG.Blue hydrogen refers to hydrogen derived from fossil fuels but where reforming/gasificationplantsarecoupledwithcarboncapturefacilities.Itisclassi

272、fiedaslow-emittinghydrogen.However,it is not an emission-free hydrogen production route.In fact,the lowest possible emission intensity of blue hydrogen,will be 30%that of grey hydrogen produced with natural gas.Green hydrogen refers to hydrogen produced by water electrolysis with green electricity.T

273、his process does notemitGHG.Bymid-2023,theEUfinallyrecognized89 that nuclear electricity produces green hydrogen.With this decision,Europe is aligned with all other regions in the world.Green hydrogen is considered a crucial solution to decarbonize hard-to-abate sectors(which represent around 25%of

274、the global economy).2.Green hydrogen goals:Aspartoftheirnetzeroroadmaps,many countries and regions have set up ambitious goals for clean hydrogen production in the coming decades.For example,in September 2022,the U.S.DOEidentifiedopportunitiesfor10Mt/yofcleanhydrogen production by 2030 and 50 Mt/y b

275、y 2050.InMay2022,theEUannounced90 its target of reaching 20 Mt/y of renewable hydrogen use by 2030;in March 2019,theMinistryofEconomy,Trade,andIndustryofJapan(METI)targeted a“one-fourth cost”for water electrolysis equipment from$1,500/kW installed capacityto$380/kWby2030.In 2022,more than 1,000 proj

276、ects have been announcedglobally,ofwhich795aimtobecommissioned by 2030.Total announced investments through2030haveincreasedby35%inthefirsteightmonths of 2023 from$240 billion to$320 billion.The global green hydrogen market is poised to grow at a CAGR of 55%from 2023 to 2032(from$4 billion in 2022 to

277、$332 billion by 2032).3.2022 achievements:In 2022,global green hydrogen production capacity grew by 44%compared to 202191 to reach around 100 kT/year.It is still very small compared to the 120Mt of total hydrogen production.92 The largest green hydrogen projects in the world93 are in Saudi Arabia,Ch

278、ina,Australia,and Europe.In 2023,two large renewables-based hydrogen projects startedoperationsintwoChineseprovinces:Xinjiang(developed by Sinopec)and Inner Mongolia(developed by Three Gorges Corporation).Their combined annual hydrogen production capacity is 30 kT/year.94 Bothprojectswillutilizesola

279、rphotovoltaicpowertoelectrolyzewaterandproducegreenhydrogen.Accordingtothenationsbroaddecarbonizationplan,InnerMongoliaandXinjiangwillbedevelopedinto giant solar PV and wind power hubs.Sinopecs project,locatedinXinjiang,isapilottoconstructanentire value chain for green hydrogen:renewable power gener

280、ation,hydrogen production from water electrolysis,hydrogen storage,hydrogen transportation,andhydrogenutilizationbyrefining89Bymid-2023,theEUfinallyrecognizedthatnuclearelectricityproduceslowcarbonhydrogen.By this decision Europe is aligned with most countries in the world.90REPowerEUplan91https:/ 9

281、3Largestgreenhydrogenprojects:NEOMGreenHydrogenProjectinSaudiArabia,SinopecsOrdos Green Hydrogen Project in China,FFI ad TES green hydrogen project in Germany,Plug Power Green Hydrogen Plants in Finland,Western Green Energy Hub(WGEH)in Australia.94https:/ E M O 2 0 2 3W E M O 2 0 2 332HOMEENERGY IN

282、THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINEfacilities.Sinopecs aim to produce more than 2 Mt/year from 2025 and is developing a giga-scale electrolysis plant in Inner Mongolia.These announced large-scale renewable hydrogen projects deepen China

283、s role as a renewable energy giant.Infrastructure deployment is progressing and is critical to ensuring that(low-cost)clean hydrogen supply matches demand.Committed investments in hydrogen infrastructure have grown from about$5 billion to about$7billion,ofwhichmorethanthree-quartersarein Asia.Electr

284、olyzers manufacturing capacity:Electrolyzersare a critical technology to produce low-emission hydrogen from water electrolysis.95 According to OEM statements,electrolyzer96 manufacturing capacity has reachednearly9GW/yearin2022.Futureelectrolyzercapacity is forecasted at 230 GW in 2030,which is very

285、 ambitious.However,abiggersignificantaccelerationis needed to get on track with the NZE 2050 IEA Scenario97,which requires installed electrolysis capacity to reach more than 550 GW by 2030.98 As in all green electricity equipment,China is reaching a dominant position in electrolyzers.Amongthe307MW c

286、apacity added in 2022,224 MW were contributed byChinaand83MWwereaddedbytherestoftheworld.99 For fuel cell manufacturing,the total global capacity stated by OEMs stands at 12 GW in 2022,with Japan and South Korea as the largest supply markets.Total investments increased by 35%from May 2022 to January

287、 2023($320 billion in direct investment between now and 2030,up from$240 billion).Howeveronly9%oftotalinvestmentshavereachedfinalinvestmentdecision(FID).Theseinvestmentannouncements are spread globally,with Europe leading on announcements,while North America leads with committed investments($10 bill

288、ion).Europe($7billion)andChina($10billion)However,Chinaiscatching up with giant projects.4.Green hydrogen cost:At present,grey hydrogen cost is in the range of$1-2/kg(the lower range being in the U.S.wheregasischeap).Thecostofgreenhydrogenis in the range of$4-6/kg.To make green hydrogen 95https:/www

289、.iea.org/news/promising-signs-in-electrolyser-manufacturing-add-to-growing-momentum-for-low-emissions-hydrogen 96https:/ https:/www.iea.org/reports/global-energy-and-climate-model/net-zero-emissions-by-2050-scenario-nze 98https:/www.iea.org/energy-system/low-emission-fuels/electrolysers#tracking99ht

290、tps:/ https:/ In 2022 and 2023 these costs have increased(see above)competitive,itscostshoulddecreaseverysignificantly(to$2/kg).CRUprojections100findthat,evenforgreenhydrogenproduction facilities in very favorable renewable energy locations,$2/kg is already a stretch goal for 2050.This cost level pr

291、ojection assumes halved renewable power costs101anda75%reductioninelectrolyzersystem CapEx.In addition to this,costs associated with an electrical grid or renewables connection($0.7/kgadditionalcost)aswellashydrogenstorage,compression,anddistribution($0.8/kgadditionalcost)must be added.Taking these

292、costs into account,the total green hydrogen cost to a typical end-user is expected to exceed$3/kg in 2050.Most countries exhibit green hydrogen costs above blue and grey hydrogen costs by 2050.Ifcarbonprices(thatpenalizegreyandbluehydrogencosts)are very high,green hydrogen could become competitive w

293、ith grey and blue hydrogen by 2035.At present,China developers claim that with,very cheap solar and wind electricity in certain provinces(suchasXianjianandInnerMongolia),combinedwithW E M O 2 0 2 3W E M O 2 0 2 333HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA

294、FLOWSTHE CLIMATE BOTTOMLINEcollocationofrenewablesandhydrogenelectrolyzers,hydrogen production cost is as low as$2/kg.5.Innovations:a.Electrolyzers:Australian researchers have developed a“capillary-fed electrolysis cell”producing green hydrogenfromwaterat98%cellenergyefficiencycomparedto75%(orless)f

295、orexistingelectrolyzertechnologies.This technology could increase green hydrogen cost-competitiveness.102 b.Methane pyrolysis is a process that uses heat to split methaneintohydrogenandsolidcarbon.Unlikeconventional methods of hydrogen production,methane pyrolysis produces hydrogen without any carbo

296、n emissions.Methane pyrolysis is a two-step process.In the firststep,methaneisheatedtoahightemperature(around900C)intheabsenceofoxygen.Thiscausesthe methane molecules to break down into hydrogen gas and solid carbon.In the second step,the solid carbon is collected and can be used for various applica

297、tions.One of the main challenges of this new technology is the high temperature required for the process,which canleadtosignificantenergyconsumption.Additionally,the technology is still in the early stages of development and needs further research and development to scale up to commercial levels.How

298、ever,it has the potential to become a mainstreamsolutionforzeroemissionshydrogenproduction.c.White hydrogen,also known as natural hydrogen,is hydrogen gas that is naturally generated within the earths crust through water-rock reactions.103 There is growing interest in white hydrogen given its abunda

299、nce,renewability,and low carbon footprint.However,thescientificcommunityisstillworkingtounderstand the mechanisms behind its generation,accumulation,andmigration.Achievingcost-effectivemethods for extraction and distribution on a large scale is also a critical challenge.Finally,just like any resourc

300、e,the extraction of white hydrogen could have potential environmental impacts.There is a long way to go before white hydrogen can be used on a commercial scale.102 https:/www.uow.edu.au/media/2022/breakthrough-opens-door-to-low-cost-green-hydrogen.php103 https:/energyadvicehub.org/what-is-white-hydr

301、ogen/W E M O 2 0 2 3W E M O 2 0 2 334HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE d.Innovative projects overcoming the negative economic impact of green hydrogens higher cost are underway in Europe:GravitHy104:Thesteelsectorisrespo

302、nsiblefor8%ofglobalenergydemandand7%ofCO2 emissions from the energy sector and must become more sustainable.To support the transition to lower GHG emissions,an industrial group105 gave birth to GravitHy.This company aims to reduce the GHG impact of metallurgy by producing and using green,low-carbon

303、hydrogen to produce direct reduced iron(DRI).The DRI can either be used directly at the plant or exported.The extra cost of green hydrogen is only around 1/ton which is negligeable compared to the cost of an EV Mercedes,for example.If the latter is powered by green electricity,it can be marketed as

304、a“real green car”!FertigHy106:In June 2023 an industrial group107 announced the creation of FertigHy,which plans to build and operate several large-scale,low-carbon fertilizerprojects.ThefirstplantwillbebuiltinSpainand produce more than one million metric tons per yearoflow-carbonnitrogen-basedferti

305、lizersfrom100%renewable electricity and green hydrogen.Its construction is planned to start in 2025.The agriculture sector alone is responsible for 13%of the EUstotalgreenhousegasemissions.BylocalizingfertilizerproductioninEurope,theFertigHyprojectisalsoansweringtotherecentchallengesoftheEUandglobal

306、 food security due to supply chain disruption108 and global uncertainties in the natural gas supply.109104 https:/gravithy.eu/105 EIT InnoEnergy,Engie New Ventures,Plug,Forvia,Primetals Technologies and the Idec group106 https:/ The electrical plane is not yet a commercial optionE-fuels:Another way

307、to use green hydrogen is its conversion into synthetic fuels,or e-fuels,by reaction with“green”CO2.E-fuels are not yet commercially available.So far there are only very few demonstration plants worldwide.Around 60 new e-fuel projects have been announced through 2035,of which only 1%have been secured

308、 with a FID.The ramp-up of the e-fuel market is being hampered by high costs and a lack of visibility on the market demand.The pilot plant in Chile(Haru Oni which was inaugurated in December 2022)would deliver costs of around 50/liter of e-fuel,which is one hundred times more than the typical wholes

309、ale price of fossil gasoline(around 0.50/liter).The industrial ramp up of e-fuel should lead to production cost decreases.However,this production increase depends heavily on the speed of the global demand increase.Withe-fuelquotasinairandshippingtraffic,politicianshavealever to accelerate the e-fuel

310、 market ramp-up.One of the initial large-scale applications of e-fuels could be in the aviation sector,which,apart from biofuels,has limited options for mitigating its GHG emissions.110 W E M O 2 0 2 3W E M O 2 0 2 335HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/D

311、ATA FLOWSTHE CLIMATE BOTTOMLINEForexample,theEUreachedapoliticalagreementinApril2023ontheaviationsectoremissionsregulation,ReFuelEU.111 The newruleswillrequirefuelsuppliersatEUairportstoblendsustainable aviation fuels(SAF)with kerosene in increasing amountsfrom2025.ItmandatesaminimumSAFsupplyatEUair

312、ports of 2%by 2025,6%by 2030,20%by 2035,and up to amaximumof70%by2050.Oftheseamounts,1.2%in2030,and 5%in 2035 must be e-fuels,increasing to 35%by 2050.Triggered by this regulation,some projects were announced in France during the summer of 2023.EDF announced that it would mobilize700milliontogetherw

313、ithHolcimandIFPENtobuildaplant to produce e-kerosene for Air France KLM.112 At the same time,EngieannounceditsparticipationintheFranceKerEAUzenproject,a synthetic fuel production unit for air transport and green chemistry.113According to a study published by the ICCT114,115,that assumes low CO2 cost

314、s,a combination of technologies that gives lowest green hydrogen cost and mid-level future cost reductions assumptions,e-kerosene is not projected to be cost-competitive with fossil kerosene before 2050.The digital revolution:It is closely linked to the energy and climate transitions.On one hand,the

315、 use of digital technology is an energy transition enabler.On the other hand,the increased use of digital technology,bigdata,andartificialintelligence(AI)aremajorconsumersof electricity.1.The use of digital technology impacts all steps of the electricity value chain:Digital twins make it possible to

316、 better design,operate,maintain,and dismantle power plants.This is why EDF implemented the Switch116 program that tracks data over the entire nuclear power plant lifecycle.Blockchain guarantees transactions between operators(for example,in electricity trading).Smart meters improve interaction betwee

317、n customers and the electricity network.Thanks to dedicated applications,these meters,which give real-time consumption information,should promote energy control.Theymakeitpossibletosetupdynamictariffsneeded for demand side management that contribute to network balancing.Smart grids:The smart meter a

318、nd other sensors on smartnetworkscapturealotofdata.Organizingandanalyzingthisdatamakesitpossibletobetteranticipate network congestion and other grid balancing issues.This is increasingly important with the development of intermittent renewable electricity generation.The use of supercomputers increas

319、es the reliability of weather forecasts.This,in turn,improves the production forecast of renewable energies(such as wind and solar).Inthebuildingindustry,thegeneralizationofbuildinginformation model(BIM)will allow new construction tobebetterdesignedandthereforemoreefficientin terms of energy consump

320、tion and GHG emissions.Betterorganized,bettercoordinated,andthereforemore quickly completed projects will also consume less energy.In the transportation sector,the impact of digital tools,such as teleconferences,on energy consumption wasdemonstratedduringtheconfinementslinkedtotheCovid-19pandemic.Co

321、mmunicationandremote working tools have made it possible,in certain professions,to maintain activity while avoiding transport.PostCovid-19,thesetoolscontinuetoreduce travel.111 https:/ec.europa.eu/commission/presscorner/detail/en/ip_23_2389112 https:/www.lesechos.fr/pme-regions/pays-de-la-loire/edf-

322、veut-produire-du-e-kerosene-pour-air-france-klm-1957692113 lesechos.fr/industrie-services/energie-environnement/biomethane-e-kerosene-engie-officialise-ses-projets-au-havre-en-presence-delisabeth-borne-1964888114 ICCT International Council on Clean Transportation 115 https:/theicct.org/publication/f

323、uels-us-eu-cost-ekerosene-mar22/116 https:/ E M O 2 0 2 3W E M O 2 0 2 336HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE Electricity consumption linked to digital technology can be broken into:Transit and storage of data:Progress mad

324、e in these technologiesledtoareductionbyafactorof7inenergy consumption per gigabyte transported.117 But traffichasincreased118 faster than the drop in unit consumption,resulting in an increase in the share of digital consumption within the overall electricity consumption.Data centers,housing IT equi

325、pment such as data storage servers and redundant power supplies,generatesignificantheatasabyproductoftheiroperations,nearly equivalent to the energy they consume They require energy-consuming cooling.At the global level,this energy represented between 200 and900TWh119in2019.Supercomputers,boasting c

326、omputing power measuredinexaflops,areessentialfortaskslikedevelopingartificialintelligencemodelsanddemandsubstantial power resources.For instance,the Fugaku supercomputer has a power supply requirement of approximately38MW.Crypto assets120 also require substantial energy consumption.This is due to b

327、lockchain technology and data mining for cryptocurrencies.In 2022,the global electricity consumption related to crypto assets was between 120 and 240 TWh,volumes which exceed the total annual consumption of countries such as Argentina or Australia.Everyday equipment:Nearly 30 billion pieces are conn

328、ected to the network,including computers,televisions,tablets,smartphones,and other everyday equipment.Their combined consumption represented a total of more than 150 TWh in 2022.In addition to this daily life equipment,there is the Internet of Things(IoT)equipment.Its consumption in 2020 was estimat

329、ed at more than 60 TWh.Forecasts show an increaseinefficiency,whichwillmakeitpossibletopartially compensate for the increase in the number of devices.Indeed,the number of these control objects shouldincreasefrom7billionin2020tomorethan20billion in 2030.117Between2015and2020118Theannualgrowthrateofne

330、tworkuserswasestimatedbyCISCOat+6%,representingaforecast of 5.3 billion users in 2023.119Themethodologiesformeteringtheenergyconsumptionofthesecentersarenotstandardized,resultinginverydifferentresults.120 Crypto assets are a digital representation of value that you can transfer,store,or trade electr

331、onically.W E M O 2 0 2 3W E M O 2 0 2 337HOMEENERGY IN THE REGIONSGLOBALOUTLOOKTHE CUSTOMERENERGY FLOWSMONEY FLOWSDIGITAL/DATA FLOWSTHE CLIMATE BOTTOMLINE2.The solutions:Thefirstincentivestodemonstrate“sobriety”have been introduced.This includes encouraging individuals to disconnect their equipment

332、when not in use,as well as urging professionals to avoid generating unnecessarytraffic.These include the management of all auxiliary consumption required for data processing,such as reducing energy consumption associated with server and switch cooling.A commonly used indicator in datacentersispoweru

333、sageeffectiveness(PUE),which is the ratio between the total energy consumed and the energy consumed solely by the information processing equipment.It appears that Googles equipmentaveragePUEof1.10isthecurrentlowasymptote.Significantenergysavingscanbeobtainedbyoptimizingdatatransferprotocols,aswellassystemarchitectures.Anotherimportantavenueofoptimizationisthatofthe physical architectures of microp