Bill Gates, co-founder of Microsoft [Image source: On Innovation.com, via Flickr]
On the opening day of the COP21 global climate change meeting in Paris, Bill Gates and Mark Zuckerberg have announced they have joined together with other private investors to help fight climate change by investing in renewable energy. The Breakthrough Energy Coalition will provide financial support to companies that take clean energy innovations out of the laboratory and commercialize them, the main idea being to accelerate progress on clean energy development.
“The world is going to be using 50 percent more energy by mid-century than it does today” said Mr Gates on his gatesnotes blog. “That should be good news, especially for the world’s poorest, because right now more than 1 billion people live without access to basic energy services. Affordable and reliable energy makes it easier for them to grow more food, run schools and hospitals and businesses, have refrigerators at home, and take advantage of all the things that make up modern life. Low- and middle-income countries need energy to develop their economies and help more people escape poverty. But the world’s growing demand for energy is also a big problem, because most of that energy comes from hydrocarbons, which emit greenhouse gases and drive climate change. So we need to move to sources of energy that are affordable and reliable, and don’t produce any carbon.”
Mr Gates added that although current renewable energy technologies, like wind and solar, have made a lot of progress and could be one path to a zero-carbon energy future, given the scale of the challenge, the world needs to be exploring many different paths, and that means it also needs to invent new approaches. These energy breakthroughs will be made by private companies, but their work will rely on the kind of basic research that only governments can fund.
Mark Zuckerberg, co-founder of Facebook [Image source: Jason McELweenie, Flickr]
Ways in which to promote clean energy innovation
Earlier in the year, Mr Gates set out on his blog three important ways in which to promote clean energy innovation – incentives, markets and treating poorer countries fairly.
The first of these involves governments drastically increasing their funding for research on clean energy solutions. At present, only a few billion dollars are spent per year on researching early-stage ideas for zero-carbon energy, when really, the world should be spending two to three times as much. Gates said that governments should be doing this for the public good and that the benefits of doing so are “far greater than the amount that the inventor can capture.” Expanded government support for energy research will also lead to more private investment. Gates has invested in companies developing new batteries and other energy storage solutions and also companies developing advances in solar power technology. However, governments need to act quickly on this because these energy transitions are time-intensive.
Windmill Sunset [Image source: Max and Dee Bernt, Flickr]
The second important step is to ensure that energy prices reflect the full impact of emitting carbon. At present, the market does not factor in ‘negative externalities’ – the costs to health and the damage to the environment caused by greenhouse gas emissions. If these costs are reflected in the price, renewable energy will become more competitive with fossil fuels and that in turn will attract more investors to the market. Governments should support this process by creating incentives to develop new solutions while also ensuring certainty in the market so that energy companies can plan ahead and enact the transition to zero-carbon energy.
The third step is to recognize that, at this late stage when climate change is already starting to have disastrous effects on the world, it will continue to hit the poorest people in the world hardest. This means that those countries that have done most to create this problem should spend the most to invest in mitigation and help poorer countries to adapt. The Gates Foundation is now doing this by helping small farmers in poorer countries to adjust to hotter and more unpredictable weather by increasing productivity.
The Breakthrough Coalition
The Breakthrough Coalition consists of some of the world’s top investors who have joined together in the understanding that technology will help to solve the world’s current energy issues, particularly the urgent issue of climate change. This requires an aggressive and urgent global program of zero-emission energy innovation based on a model of public-private partnership between governments, research institutions, and investors. It will involve large funding commitments with a key role being played by governments, with aggressive increases in funding for basic and applied energy research. Current levels of government funding are insufficient.
[Image source: CheapFullCoverageAutoInsurance.com]
The coalition is focused on the creation of a network of private capital intended to drive forward the transition to an advanced energy future. It is doing this by concentrating on providing investment for early stage companies, involving early investment through seed, angel and Series A investments, with commercial capital expected to take over in the later stages once the investments are de-risked. It will invest in a number of sectors, including electricity generation and storage, transportation, industry, agriculture and energy efficiency. The aim is to boost the development of novel technologies and innovations that make existing technologies more efficient, scalable or help to reduce costs. Given that most of these innovations will come through government research pipelines, the coalition has decided to focus its investments on countries participating in the Mission Innovation international initiative.
Mission Innovation
Mission Innovation was also launched on the opening day of COP21. It consists of a commitment by20 countries to invest in clean energy research and its aim is to “reinvigorate and accelerate global clean energy innovation with the objective to make clean energy widely affordable.” The initiative will seek to double government funding for clean energy innovation in each of its member states
The Breakthrough Coalition consists of:
Bill Gates, co-founder of Microsoft; Mark Zuckerberg, co-founder of Facebook, and Dr Priscilla Chan; Mukesh Ambani, Chairman and Managing Director of Reliance Industries (India); John Arnold, co-chair of the Laura and John Arnold Foundation; Marc Benioff, Founder, Chairman and CEO of Salesforce.com; Jeff Bezos, Founder and CEO, Amazon; HRH Prince Alwaleed bin Talal, Chairman of the Board of Trustees, Alwaleed Philanthropies, Saudi Arabia; Richard Branson, Founder of the Virgin Group; Ray Dalio, Founder, Bridgewater Associates; Aliko Dangote, Founder and Chief Executive, Dangote Group, Nigeria; John Doerr, General Partner, Kleiner Perkins Caufield & Byers, United States; Reid Hoffman, Founder, LinkedIn and Partner, Greylock, United States; Chris Hohn, Founder, The Children’s Investment Fund, UK; Vinod Khosla, Founder, Khosla Ventures, United States; Jack Ma, Executive Chairman, Alibaba Group, China; Patrice Motsepe, Founder and Executive Chairman, African Rainbow Minerals (ARM), South Africa; Xavier Niel, Founder, Iliad Group, France; Hasso Plattner, Co-founder and Chairman, SAP, Germany; Julian Robertson, Founder and Chairman, Tiger Management, United States; Neil Shen, Founding Managing Partner, Sequoia Capital China, China; Nat Simons and Laura Baxter-Simons, Co-founders, Prelude Ventures, United States; Masayoshi Son, Founder, Chairman and CEO, SoftBank Group Corp., Japan; George Soros, Chairman, Soros Fund Management LLC, United States; Tom Steyr, Businessman, Philanthropist, and President, NextGen Climate, United States, Ratan Tata, Chairman Emeritus, Tata Sons, India; Meg Whitman, CEO, Hewlett Packard Enterprise, United States; Zhang Xin and Pan Shiyi Co-founder and CEO, SOHO China, Chairman, SOHO China; and finally, the University of California (UCLA).
The Mission Innovation initiative consists of:
Australia, Brazil, Canada, Chile, China, Denmark, France, Germany, India, Indonesia, Italy, Japan, Mexico, Norway, Saudi Arabia, South Korea, Sweden, United Arab Emirates, United Kingdom and the United States.
St Kitts-Nevis PM makes impassioned plea at climate change conference
PARIS, France (CMC) – St Kitts-Nevis Prime Minister Dr Timothy Harris has called on the international community to “negotiate and agree a legally-binding agreement with ambitious emission reduction targets”.
Addressing the 21st Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC), Harris reiterated the seriousness and urgency of the threat posed by climate change and the need for an ambitious agreement to be reached during the two week conference.
“My delegation calls on all parties here to negotiate and agree a legally-binding agreement with ambitious emission reduction targets. St Kitts and Nevis recommends that all parties subscribe to at least five-year commitment cycles with robust ex-ante review and ex-poste assessment processes.
“We also hope that developed country parties and other parties in a position to do so, would be encouraged to provide support to vulnerable countries, particularly to Small Island Developing States (SIDS).”
He told the conference which is being attended by more than 100 world leaders that his twin island Federation, like other SIDS “has been undergoing many climate related changes; namely sea level rise, extreme weather events, prolonged and severe droughts, and disruption to our reefs, coastlines and agriculture”
Harris said that the dangers of climate change are real and present and that the threat is also existential. He said greenhouse gas emissions from small island states like St Kitts and Nevis are negligible “yet our small island states continue to be adversely and disproportionately affected by the impacts of climate change.
“Nonetheless, as responsible global citizens, we in St Kitts and Nevis are already acting locally to reduce our national carbon footprint even further. The pursuit of renewable energy solutions is now a critical and integral component of our national sustainable development strategy to transform St. Kitts and Nevis into a fully environmentally sustainable small island state.”
Harris said that hi new administration “is incentivizing behavioural changes through the facilitation of duty free concessions on renewable energy technologies.
“We are building strategic partnerships with countries and the private sector to develop geothermal, solar and wind energy solutions. Currently, we have solar farms operating on both St. Kitts and Nevis and are also exploring the potential geothermal capacity on the islands. These renewables will have a significant impact on our energy consumption patterns and reliance on fossil fuels.”
Thomson ReutersIndian Prime Minister Narendra Modi and French President Francois Hollande attend a news conference at the Elysee Palace in Paris
PARIS (Reuters) – French President Francois Hollande and India’s Prime Minister Narendra Modi will on Monday launch an international solar alliance aimed at eventually bringing clean and affordable solar energy within the reach of all.
The launch will coincide with a summit of world leaders at the start of two weeks of talks on the outskirts of Paris to seek a new global deal on curbing climate change, by shifting from fossil fuels towards renewable energy.
An Indian government statement on Sunday said there were well over 100 solar-rich countries in the tropics that could be members of the International Solar Alliance to develop clean and affordable solar energy.
“Solar energy is a practical and efficient way to reduce the greenhouse gas emissions,” it said.
Aware of the shadow cast by the failure of the 2009 Copenhagen summit, the last attempt to reach a global climate deal, the United Nations is placing as much weight on the efforts of individual governments as on an overarching U.N. agreement.
More than 180 nations have submitted national action plans, but they are not enough to achieve a goal of limiting global warming to 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial times — the cap scientists say is essential to prevent the most devastating consequences of global warming.
India’s national plan focuses on solar, saying it is expected to grow significantly. The aim is to reach capacity of 100 gigawatts by 2022, to be scaled up further in the future.
Firms such as Tata Power have invested heavily in solar as a reliable source capable of delivering power to some of India’s poorest people.
WASHINGTON, United States (CMC) — Jamaica is the only Caribbean Community (CARICOM) country that will benefit from an Inter-American Development Bank (IDB) multimillion-dollar-funded regional Energy Efficiency Green Bond Facility.
The IDB said that it has approved financing to establish the facility and that the programme was selected to receive up to US$217 million in additional funding as one of eight projects worldwide in the first round of allocations announced by the Green Climate Fund (GCF) earlier this month.
“This private sector programme stands out for its innovative financial approach, involving small and medium enterprises and the potential mobilisation through capital markets of funds from different institutional investors such as pension funds and insurance companies,” said Gema Sacristan, IDB’s Financial Markets Division Chief.
Providing an alternative financing mechanism for energy efficiency projects through the issuance of green asset-backed securities (ABS), the programme will also contribute to the development of capital markets in the region.
The programme will introduce green ABS following the Green Bond Principles standards and will foster socially and environmentally responsible investments.
“The approval of this programme furthers our commitment to supporting Latin American and Caribbean countries in the implementation of their proposed Intended Nationally Determined Contributions (INDCs),” said Amal-Lee Amin, IDB’s Climate Change and Sustainability Division Chief.
“Tapping into domestic capital markets for refinancing of energy efficiency is key for increasing the scale of investment for de-carbonisation over the medium and longer-term.”
IDB said that Mexico will be the first country to implement this programme, followed by the Dominican Republic, Jamaica, and Colombia.
The IDB’s loan of up to US$400 million will be complemented by a loan of up to US$50 million from the China Co-Financing Fund, administered by the IDB, in connection with the first utilisation of the facility in Mexico.
As we approach the fall and winter seasons it is important for solar clients to be aware that they will experience shorter days which means less sunlight. Less sunlight means less solar production for solar systems. So in order to avoid using too much back‐up power which is most likely JPS, it is very important to be conscious of your energy usage during these next few months, even more so with our delayed rainy season upon on us adding cloudiness to limited sun hours.
A solar system produces more energy in the summer months due to the sun being higher in the sky. In these winter months clients need to focus on demand shaping which means to use heavy energy appliances more in the day than night. Using these appliances while the sun is out allows the batteries to be recharged while providing power for equipment. Therefore scheduling activities such as washing, ironing, fridge cooling and electric oven usage during the peak sun period of 10a‐2p is crucial for allowing batteries to receive enough charge for night usage.
Solar owners need to be mindful of ways to maximize the limited electricity generation that comes during this time of year. Clients need to be stingy with consumption. The nights are cooler so a fan might be sufficient instead of the AC or turn the temperature up a couple degrees on the AC unit. Change the most used outside/inside lights to LEDs where possible especially the ones left on for over four hours at a time. Owning a solar system makes you your own power company so it is crucial to plan out energy usage for the family, otherwise as consumption goes up so will the JPS bill. A solar system can only offset what it was designed to offset so if your night time consumption increases then the system will switch to JPS earlier than predicted.
Solar Tips for the shorter sunlight time of year:
- During the day use heavy energy consuming appliances in the course of peak sun hours of 10a‐2p.
- During the night make sure you only use the necessary loads that are required. Turn off excessive lighting when not needed.
- Adjust temperature on air conditions higher a couple degrees.
- Disconnect ghost loads that consume power even when off as long as they are plugged in. A perfect example is that of a Television. Over a period of 24 hours, a plugged in TV consumes the same power as when it is ON for thirty minutes.
- Replace all the high wattage bulbs with energy efficient ones such as LED in areas where these lights are used daily and/or nightly.
Jason Robinson
Chief Executive Officer
Solar Buzz Jamaica
Although Abengoa, the Spanish company selected as the preferred bidder to build a major power plant in Jamaica, has initiated steps that could lead to a bankruptcy declaration, Jamaica Public Service Company CEO Kelly Tomblin is not yet ready to call it quits on the multinational corporation.
Reacting to news of the bankruptcy proceedings initiated by Abengoa, Tomblin said she was monitoring the situation of the Spanish renewable-energy company.
It was only last week that JPS announced Abengoa as the preferred bidder to build the 190-megawatt combined-cycle plant in Old Harbour, St Catherine.
Despite fears that Abengoa may not be able to fulfil the requirements of the bid, given its precarious financial situation, Tomblin is holding out hope that the company will be able to make good on its financial obligations in relation to the bid.
“We have been monitoring the situation for some time. We have backup plans, but we have to wait and see what Abengoa shows us. But pot can’t call kettle black because JPS, as you know, has had its own financial difficulties, and we are just now emerging from those, so we know what it’s like, so we want to make sure that we don’t overreact,” Tomblin told The Gleaner last evening.
In the event that Abengoa folds completely, Kelly Tomblin pointed out that JPS has several alternatives.
“There are other vendors. We have many vendors who were poised to build the plant, so if, in fact, Abengoa can’t show, then other people can build the power plant. As you know, we have shareholders who have deep expertise, but we don’t want to jump the gun. Of course, Abengoa will have to give us financial assurance, but, again, pot can’t call the kettle black. It wasn’t very long ago that JPS, too, was facing insolvency problems,” she said.
Energy Minister Phillip Paulwell, in reacting to the news, said there was no need to panic and that JPS should be given the space to continue the procurement process.
When asked if the situation vindicates him in respect of the Energy World International (EWI) bid, Paulwell said, “There will be vindication when the gas is here because that, for me, is the most important aspect.”
Paulwell was in charge of overseeing the Government’s 391-megawatt project, which awarded a bid to EWI, a company which faced financial woes, leading to questions about its ability to deliver on the bid. This was before responsibility for the project was handed over to the Vin Lawrence-led enterprise team.
Now, with news of Abengoa’s bankruptcy filing, Jamaica’s renewable-energy plans may be delayed yet again.
Abengoa’s latest financial woes sent shockwaves through the banking sector and financial markets in Spain yesterday, fuelling concerns that the country’s lenders may be left with heavy losses.
According to international media reports, Abengoa has been having financial challenges from as far back as 2013, when Spain instituted energy reforms, which reduced subsidies to renewable-energy providers. This affected Abengoa’s capital base significantly and further exacerbated its pile-up of debt.
The Financial Times has said that a possible default by Abengoa could count as the largest bankruptcy in Spanish history, given that as of September, Abengoa carried gross debt of £8.9 billion.
The filing for preliminary creditor protection yesterday came after a potential investor cancelled plans to inject £350 million into the company.
While he could not comment on questions of whether due diligence was done on the Abengoa bid, Private Sector Organisation of Jamaica CEO Dennis Chung said news of the filing does not mean the company will go under, as bankruptcy proceedings often give a company an opportunity to rebuild.
“I couldn’t comment on due diligence. I have to believe that proper due diligence would have been done, so that question should be put to the person who actually did the due diligence,” Chung said.
Apple will power all its operations in Singapore—including its first retail location in there–with renewable energy. The iPhone maker confirmed to Reuters on Sunday (Nov. 15) that Singapore-based solar developer Sunseap Group will provide it with 100% renewable electricity from solar energy systems built atop more than 800 buildings.
The systems will generate 50 megawatts of solar energy, enough to power the equivalent of 9,000 homes. Apple will receive 33 MW of the new project’s capacity, according to Reuters.
The news is the latest in a string of Apple announcements about renewable energy. In October it announced it would build 200 MW of solar power in China and push suppliers to make similar commitments. That came on top of two previously announced solar farms in the country producing a combined 4 MW of power.
Earlier this year Apple said it was partnering with First Solar to build a massive farm of solar panels to power its upcoming “Campus 2” headquarters in California. The “spaceship campus” will be powered entirely by renewable energy sources, the company has said.
“We’re doing this because it’s right to do,” Tim Cook said at the time to an audience at a Goldman Sachs event. “But you may also be interested to know that it’s good financially to do it.”
In any case, Apple can afford to make investments in renewable energy, however long they take to pay off.
Surprisingly, Apple does not yet have a retail store in Singapore, a major shopping hub in Southeast Asia. The city-state gets hordes of shoppers from nearby countries, especially Indonesia, the world’s fourth most populous nation. This year, Jakarta alone will send Singapore some 1.7 million visitors, who will spend about $2.7 billion, according to the MasterCard 2015 Global Destination Cities Index.
Apple products in Singapore are currently sold through third-party retailers, mobile carriers, and its online store. The company did not disclose the exact location of the upcoming store, but the Straits Times reported last month on a fitness chain moving out of a prime spot on Orchard Road—Singapore’s leafy, mall-lined shopping mecca—to “make way for Singapore’s first Apple store in 2016.”
Head of the Electricity Sector Enterprise Team (ESET) Dr Vin Lawrence says there was a vast number of credible bids that were put forward for the supply of natural gas to the new power plant to be built by Jamaica Public Service Company (JPS).
New Fortress Energy, the same entity which won the bid to supply gas to the Bogue power plant in Montego Bay, has been selected as the entity to supply LNG to the new plant, on which construction is expected to begin by the second quarter of next year. The arrangement will see New Fortress installing the facilities to receive, store and re-gas the fuel for use at the new 190-megawatt gas-fired plant at Old Harbour.
“Six entities submitted 16 variations of proposals and we were quite delighted at this because we have gone through 15-20 years of attempting to get LNG to Jamaica without much success, and on this RFP, we have had six credible entities submitting 16 variations of supply proposals,” Lawrence said.
The ESET chair, who was addressing a Jamaica House press briefing at the Office of the Prime Minister yesterday, also announced that the JPS has selected Spanish firm Abengoa to construct the new plant.
Lawrence said the agreement is for New Fortress Energy to build a terminal and supply the JPS with 200,000 metric tonnes of LNG per annum. New Fortress Energy will build, own and operate the plant which Lawrence said must be expandable.
In Ja’s Best Interest
The company will spend more than $200 million on the terminal, which is expected to be constructed at Rocky Point, Clarendon.
“We have been trying for 20 years to bring natural gas to Jamaica, and so, we believe it is also in our interest that we have a terminal facility that can expand and grow,” he said.
The gas plant is due to be finished by the fourth quarter of 2017 and the power plant is due to be ready at the beginning of 2018.
With Jamalco indicating that it is reviewing its decision on whether it will go ahead with the building of a coal plant or switch its plans to using natural gas, Lawrence said the demand for LNG could be about 500,000 metric tonnes per year.
Schedule Not Affected
Lawrence said the bauxite-producing company is being allowed another two to three weeks to “have discussions with the possible gas supplier for a final decision to be taken”.
“This period will not affect the scheduling that we had proposed for Jamalco. If they shift to gas, we would have a two-year rather than a three-year construction period and the capital cost would be significantly less,” Lawrence added.
The new building of the JPS power plant represents part of an effort to lower electricity costs on the island. The plant will replace 292 megawatts of heavy fuel oil power plant at Old Harbour in St Catherine, and will be combined with energy from renewable sources and cogeneration facilities from Pan-Caribbean Sugar Company and bauxite companies.
The final electricity price to the grid will be less than US$0.13 cents per kWh, the ESET head said, which would mean at least a 30 per cent cut in light bills.
Lawrence said Jamaica has been looking at getting one million metric tonnes per year, and that New Fortress Energy is expected to construct a terminal that can supply the 200,000 metric tonnes that the JPS requires.
He said the demand for LNG from other sources would determine how quickly the facility is expanded.
Technical assistance was provided by the Galway Group and Hatch Mott McDonald, two reputable international firms.
Critical issues such as the security of supply, capability of delivering the project, ability to expand the terminal, ability to meet the power plant schedule, and a commitment to achieve a timely financial close were considered in selecting New Fortress Energy as the preferred bidder.
POTENTIAL home owners in search of environmentally friendly surroundings have just got lucky.
Developers of what is being touted as Jamaica’s “first green residential community” last week broke ground for the construction of 114 energy-efficient homes in Greendale, St Catherine, called Green Village.
Project manager Paul Soegaard told the Jamaica Observer that the phased development will begin later this month and is expected to cost roughly $1 billion. He added that the developers are looking to employ up to 200 individuals to complete the project.
The gated community features 48 two-bedroom single-family homes, 24 two-bedroom apartments and 42 super studio apartments, spanning roughly 930, 717 and 475 square feet respectively.
Starting at $7.9 million, the complex is located a few metres before entering Spanish Town and is overlooked by the well established residential community, St Jago Heights. Amenities of the community include a swimming pool, clubhouse, BBQ and green area and a play area.
The development is a joint financing project with the National Housing Trust and the Green Village Country Club developers.
“Under a short- to medium-term housing programme developed by the NHT, some 9,000 housing solutions will be funded by the Trust over the next two years to enable thousands of families to realise their dream of owning a home,” the NHT stated in a release to the public.
The government agency hopes to boost the housing solutions available to contributors and noted that some 42 housing solutions are currently buimg built across the island. Of that number, St Catherine has a total of 11 developments including the Green Village, followed by Clarendon and Kingston and St Andrew, which each have seven developments.
“It’s driven by fundamentals,” Soegaard told the Sunday Finance. “First of all, attainable lands are not easy to find these days and this development is really the closest to Kingston. That’s the main driver.
“We were lucky enough to own these lands for a number of years, and with the demand for housing we just decided to build the first green housing development in Jamaica. There is great demand for housing coming out of the Kingston area, spilling all the way over to Old Harbour as annual surveys by the NHT indicates.
“The connection to the Green Village in Greendale, St Catherine, is by coincidence, our name is driven by best practices and building strategies, but I think they complement each other,” the project manager stated.
Green Village is designed to be energy-efficient and includes features such as solar water heaters, water and energy-reducing features for faucets and toilets. The development is also designed to take advantage of passive energy and natural light instead of purchased electricity or natural gas.
“It means that the houses are built of aerated concrete to foster cooler homes than the traditional ones and designed so that you can get a lot of sunlight without the rays passing through,” Soegaard explained.
The architectural design of the complex also provides for renewable energy-powered street lighting, Bahamas sun shades which also function as hurricane shutters and burglar bars, biodigester and reed bed sewage treatment plants which give a much higher level of treatment than septic tanks, storm water retention, grey water recycling, and xeriscaping — the practice of landscaping the common area with plants that use little to no water.
With regards to further expansion, Soegaard says there are plans underway for the development of a second phase based on sales demand.
“It’s dependent on a number of factors, but we have the option to do a phase two — though nothing is confirmed at this point,” he said.
BY KARENA BENNETT