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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.

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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.

 

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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.

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[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.

 

Interesting Engineering

PATTERSON… we have great cause to be concerned about the effects of climate change

 

NASSAU, Bahamas (CMC) — Former Jamaican Prime Minister P J Patterson says there is need for strong political awareness of the relevant issues related climate change and disaster risk considerations.

Patterson, who spoke at the opening of the 9th Caribbean Conference on Comprehensive Disaster Management earlier this week, encouraged politicians to foster close collaboration with regional agencies with mandates regarding climate change.

“Political awareness and support are key in order to ensure full support at the highest level of Governments for appropriate allocation of national funds to address these issues.

According to Patterson, the region is fully aware of the challenges linked to climate change, as faced by small island developing states .

“Our regional Heads of Government and our people are well-acquainted, many of us through adverse experiences, with the challenges our countries face as small island developing states in a highly hazard prone region of the world. At times, it seems that the rich natural endowments with which we have been blessed are borne by curses that serve to impede our advancement.”

The former prime minister stressed the importance of a “consolidated approach and collective action to protect our environment to avert disasters where we can, or at least, to mitigate their effects, and at the same time, to spur sustainable development”.

He added that the region’s approach to the achievement of sustainable development globally, regionally and nationally must be through integrated efforts to achieve resilience.

“The building of a resilient nation has to begin and proceed on the base of community resilience. We can learn a great deal from the Cuban model, which has been tested and proven.”

Concerning national policies, Patterson said climate change measures must be integrated.

“This must resonate with us in the Caribbean. We have great cause to be concerned about the effects of climate change; rising sea levels which threaten our coastal developments, and devastate our agricultural production; more severe tropical storms which can eradicate years of hard work in a few short hours; and proliferation of tropical diseases.”

He added that the disasters constitute a “clear and present danger to our lives and well being. It could wipe out the tourism product entirely and destroy all our prospects for economic growth”.

In making reference to the Paris conference, Patterson said the outcome is very important to the region “as we are disproportionately vulnerable to the effects of climate change. The countries represented here are in the main small island states. While we fall within the same category of landlocked and developed countries which are also most disadvantaged, I believe the Caribbean and the small Pacific Islands should be singled out for very special and urgent attention by the Developed World and the International Institutions as is now the accepted case for Africa.”

Patterson, at the same time, said officials need to broaden their outreach for the next conference to include, possibly as associates in the first instance, all nations which are part of the geographic space — Guadeloupe, Martinique, Curacao, St Maarten, Cuba, the Dominican Republic and Puerto Rico.

“Natural disasters, when they come, do not seem to respect national borders. They spread their fury, regardless of flags. In avoiding, moderating and responding to disasters, we need a more inclusive approach to secure the best deployment of personnel, technology and equipment,” he said.

 

The Observer

 

The oil-fired JPS power plant in Old Harbour Bay, St Catherine is to be converted to LNG.

Spanish firm Abengoa SA has revealed the value of the upgrade and employment prospects for the 190MW power plant project amid pre-bankruptcy filings in its home market.

“The contract for the plant, which will be powered by natural gas and cooled by seawater, is worth more than US$200 million,” said Abengoa in a release.

The engineering and renewable energy firm was selected as preferred bidder by Jamaica Public Service Company (JPS), and the parties are in the process of finalising the contract for the LNG-fired power plant. JPS has said the full project cost would be closer to US$300 million.

Abengoa has about four months in which to secure deals with its creditors and restructure its debts if it is to escape full bankruptcy. JPS has said it is not ready to give up on its preferred bidder just yet, but is monitoring the situation.

Abengoa said it will be responsible for the design, engineering and construction work of the plant that will replace an existing fuel-oil facility and is expected to “create between 300 and 500 jobs during the construction phase”.

JPS wants to decommission the existing fuel-oil plant and move to a natural gas facility to create a cleaner, efficient and more reliable source of power, added Abengoa.

The more than 40-year-old Old Harbour plant remains one of the least energy efficient in the island and its upgrade would form part of the Jamaican Government’s drive to increase cleaner forms of fuel. Jamaica aims to increase renewable energy reliance to 20 per cent of the energy output within the medium term.

SEAWATER COOLING SYSTEM

“The plant will use a seawater cooling system that returns the warm water without adversely impacting the environment. Abengoa’s design will use the existing infrastructure as much as possible, requiring less power and improving the overall output of the plant,” said the Spanish firm in late November, adding that the project would extend Abengoa’s experience in turnkey combined cycle projects to the Jamaican market.

The company informed that it filed for insolvency protection on November 25 before the Mercantile Courts of Seville. The company also indicated that it would continue negotiations with its creditors with the objective of reaching an agreement that ensures the company’s financial viability, “under the protection of Article 5 of the Spanish Insolvency Law”.

The company recorded a €194 million net loss attributable to its parent over nine months ending September 2015 on revenues of €4.87 billion. It holds €6.2 billion in total debt while its earnings before interest tax and amortisation totalled €1.3 billion or 4.5 times net leverage.

Abengoa’s other major combined-cycle projects include the 640MW plant in Centro Morelos, Mexico, and the 440MW combined cycle plant in Portland, Oregon, United States, currently under construction. More recently, Abengoa was awarded two combined cycle plants in Mexico – Nuevo Pemex 680MW, and Norte III, 924MW.

The Gleaner

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.”

Jamaica Observer

 

Indian Prime Minister Narendra Modi (L) and French President Francois Hollande (R) shake hands during a news conference at the Elysee Palace in Paris, April 10, 2015.      REUTERS/Charles Platiau

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.

businessinsider.com

* Abengoa has 4 months to reach deal with creditors

* Shares plummet 54 pct, bonds virtually worthless

* Abengoa’s bankruptcy would be Spain’s largest on record (Adds Abengoa removed from Ibex, details on company)

MADRID, Nov 25 Spain’s Abengoa started insolvency proceedings on Wednesday after a potential investor said it would not inject fresh capital into the energy firm, sending its share price tumbling by 54 percent.

Under Spanish law, companies can enter into pre-insolvency proceedings, giving them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy.

Failure by Abengoa to reach such a deal could lead to Spain’s largest bankruptcy on record. The company employs around 24,000 people worldwide.

Spanish and international banks’ total exposure to Abengoa stands at around 20.2 billion euros ($21.4 billion), including financing for projects, a source familiar with the matter said at the end of September.

The Seville-based engineering and renewable energy firm, which has biofuel and solar-heated power plants in the United States, has been struggling for a year with high debts but the situation became unsustainable in July. It first cut its 2015 targets and stepped up an asset sales plan on July 31, only to announce a share issue days later.

Since then, the company’s market value has tumbled by around 85 percent, hit by uncertainties over whether creditor banks would agree to back the issue.

The shares plummeted by 69 percent when trading resumed following a more than three-hour suspension on Wednesday morning. They closed down 54 percent, wiping out around 470 million euros in market value on the day.

The stock market operator said Abengoa would be removed from Spain’s blue-chip index Ibex as of Nov. 27.

Bonds also lost most of their value.

Abengoa earlier confirmed that Gonvarri, a unit of privately-held industrial group Gestamp, had backed away from a plan to inject around 350 million euros into the firm.

“The company will begin the negotiating process with its creditors with the aim to reach an accord to guarantee the financial viability under the Article 5 of the Bankruptcy act, which the company intends to request as soon as possible,” Abengoa said in a statement.

Abengoa has been trying to find new investors since early August, when it announced a 650 million euro rights issue of new shares to cut gross debt of some 8.9 billion euros.

Gonvarri’s interest was conditional on banks underwriting the issue and it had asked the banks to inject 1.5 billion euros in to the company, sources told Reuters late on Tuesday.

Earlier this month, Abengoa’s auditor Deloitte said the group faced significant risks and its future depended heavily on the proposed investment deal with Gonvarri.

https://solarbuzzjamaica.com/jps-announces-preferred-bidder-for-old-harbour-plant/

Reuters.com

The Office of Utilities Regulation (OUR) has announced that it no longer has responsibility for the Net Billing Programme.

The net-billing system, which was introduced in 2012, allows persons who own renewable energy generators to generate electricity for personal use, and sell excess energy to the national grid.

This process was being led by the OUR.

However, the OUR said the deletion of Condition 18 of the Amended and Restated All-Island Electric Licence and the provisions in the Electricity Act, 2015, which came into effect in August, means that it no longer has authority to lawfully engage in the addition of generating capacity to the national grid.

 

ELECTRICITY ACT

 

It said Section 9 (2) of the Electricity Act specifically excludes the OUR’s involvement in accepting applications and making recommendations to the minister of science, technology, energy and mining for licences.

The OUR said that section provides that the minister has exclusive authority over the issuing of licences.

The OUR said that as a result, it cannot lawfully assume responsibility for the licensing process and, therefore, it considers its substantive role in the Net Billing Programme at an end.

The Gleaner

 

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

 

The Observer

CO-EXECUTIVE director of The Caribbean Policy Research Institute (CaPRI), Dr Christopher Tufton, will this week travel to Barbados to chair a workshop on Barbados’ country report on renewable energy options at the Caribbean Development Bank Conference Centre in St Michael.

With funding from the European Union (EU) under its Energy Facility II programme, CaPRI has been implementing the ‘Frameworks, Policies and Instruments for Mobilising Renewable Energy in the Caribbean’ project over the past two and a half years.

The overall objective of the project is to empower both the public and private sectors and other energy consumers in the Caribbean to make informed decisions on renewable energy investments, and to provide input to policymaking in order to create an enabling environment to accelerate such investment.

The workshop will present the country report which included analyses of renewable energy technology options as well as a number of tools aimed at the public and private sector, including:

*Technology assessment tool — an online calculator which will enable Caribbean businesses and energy consumers to size and cost renewable energy systems to meet their energy needs;

* Renewable energy financing database — a searchable database of local and international financing schemes to allow energy consumers, businesses and project developers to identify appropriate financing for their renewable energy projects, large and small;

* Policies and incentives database — a complete database of incentives available for renewable energy investments in the Caribbean;

*Cost benefit analysis tool.

According to Tufton, the workshop will also include a practical session using the cost benefit tool, and an opportunity for participants to provide feedback on its usefulness. So far CaPRI has presented country reports in Haiti, St Kitts and Nevis, Grenada, and Jamaica with Barbados and Guyana left.

This CaPRI EU programme is valued at approximately 500,000 Euros over four years and represents the most in-depth database on renewable energy in the Caribbean.

CaPRI is hopeful that this database will be used by policymakers, the private sector and the general public to increase the use of renewables in the region, Tufton said.

The Observer

CASTRIES, St Lucia (CMC) — Caribbean Community (Caricom) ministers and climate change negotiators began a two-day meeting here yesterday to fine-tune the region`s negotiating position ahead of the 21st session of the Conference of Parties (COP 21) to be held in Paris later next month.

The November 30 to December 11 conference forms part of the United Nations Framework Convention on Climate Change UNFCC).

The meeting here is a follow-up to a similar one held here in September and the organisers said the objective is to prepare the ministers to engage in the pre-COP meeting which will be organised by the COP Presidency in November.

“With just over one month before the start of COP 21 and on the heels of a climate negotiators preparatory meetings held earlier this month in Bonn, Germany, it is an opportune time for Caricom negotiators and ministers to be updated on the critical issues, especially those with implications for Small Island Developing States and to concretise position(s) going to Paris.”

The ministers will be apprised of the state of climate change negotiations under the UNFCC for a new climate change agreement to be finalised at the COP 21.

The meeting here is being organised by the Ministry of Sustainable Development, Energy, Science and Technology, the High Level Support Mechanism and the Caribbean Community Climate Change Centre.

The Observer