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MAY 25, 2022

Good morning,

Our hearts are breaking for the lives lost yesterday in the elementary school shooting in Texas. This isn't our lane, but tragedy doesn't know lanes.

Anca tackles energy efficiency, the low-hanging fruit no one seems to want, and our Data Dive looks at the cleantech potential in Southeast Asia.

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Send your energy photos, story tips and more to news@ciphernews.com or reach us directly at amy@ciphernews.com and anca@ciphernews.com.

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LATEST NEWS

Energy savings: an easy option but a tough sell

BY: ANCA GURZU

Building renovations, heat pumps and triple-glazed windows are rarely the talk of the town—yet these kinds of energy efficiency measures are central to the European Union’s plan to shed Russian fossil fuels following Moscow’s invasion of Ukraine.
 
Experience shows energy savings policies are one of the hardest sells.
 
“We need to be much better at saving energy,” Frans Timmermans, the European Commission’s executive vice president in charge of the European Green Deal, said May 18 during the unveiling of REPowerEU, the plan to ditch energy imports from Russia, the EU’s main energy supplier. “The cheapest energy is the energy you don't use.”

Saving energy is one of the three pillars of the plan, together with boosting the production of clean energy and finding alternative energy suppliers. It has a two-pronged approach: immediate savings by relying on people’s goodwill and legislation that can enforce medium- and long-term measures.

Moments of crisis are always a stark reality check about energy dependency. In fact, the EU’s first energy efficiency regulations were first established in response to the oil crises of the 1970s.

Energy efficiency was “always seen as a second-best option” in the EU’s efforts to cut greenhouse gas emissions over the last years, but the war in Ukraine and current high energy prices are changing things, said Arianna Vitali Roscini, secretary general of the Coalition for Energy Savings, a lobby group.

“The idea of saving energy is entering more into people’s minds,” she said. “What is important is to make this systematic and integrate these behaviours into a long-lasting routine.”
 
But that doesn’t mean it will be easy. Energy efficiency “is invisible,” yet its success hinges on actions by millions of households and businesses, said Jan Rosenow, director of European programs at the Regulatory Assistance Project, an NGO.

“It’s very attractive for policymakers to cut the ribbon of a new wind farm, but less exciting to say: ‘We saved this amount of energy,’” he said.
 
It’s also complicated and technical, Rosenow added. This leads to a paradox: “Even though energy efficiency pays back, people still don’t know about it, or don’t want to think about it and identify the best solutions.”
 
Research shows that even with smart technology in their homes, some people can’t be bothered to keep track of their energy use.

Niels Fuglsang, a Danish member of the European Parliament from the Socialists and Democrats group and the lead negotiator on key energy efficiency legislation, echoed these thoughts, pointing to the business sector.
 
“If it makes economic sense, why don’t they just do it? A lot of the companies can save a lot of money, but it’s not on their radar,” he said. “It also requires a lot of expertise.”

Another problem is that energy efficiency is more fragmented, ranging from heating systems to windows and doors, said Ksenia Petrichenko, energy efficiency policy analyst at the International Energy Agency. “It’s a longer logical chain.”

The bloc barely reached its nonbinding target of reducing energy consumption by 20% by 2020, a success that “seemed unlikely for many years,” according to the European Environment Agency, an advisory body of the EU. It might have only met the goal because the widespread lockdowns in 2020 pushed energy consumption lower.

The European Commission took legal action in November 2020 against 22 of 27 member countries that failed to fully incorporate into national law a recently revised energy efficiency legislation.  
 
In 2020 it also kicked off the Renovation Wave Strategy, a set of recommendations that aim to double renovation rates in the next 10 years and improve the energy performance of buildings. A January report from the Buildings Performance Institute Europe, a think tank, found decarbonization in new buildings is happening too slowly and inconsistently.
 
Germany, which gets about half of its gas needs from Russia, is looking to revamp its heating sector by making heat pumps mandatory in coming years. Spain also said this week it will introduce temperature controls in public offices this summer.

Buildings are responsible for about 40% of the EU's energy consumption and 36% of greenhouse gas emissions from the energy sector. But only 1% of buildings undergo energy efficiency renovations every year, and roughly 75% are not energy efficient. (The EU still tops recent investment growth in the energy efficiency of buildings globally, according to a recent IEA report.)

The REPowerEU plan proposes boosting the EU’s 2030 energy savings target to 13% from 2020 levels, up from 9%. The Commission’s plan also envisions several other measures meant to facilitate energy savings, from strengthened energy audits to phasing out subsidies for fossil-fuel-based boilers.
 
It also comes packed with a toolbox of suggestions for how to make it work, from targeted information campaigns on energy waste and free-of-charge advice and inspections, to financial incentives for small service companies, which are struggling to get the loans they need.
 
The Commission also included its own disclaimer: “The indicated estimated energy savings are dependent on a wide range of factors, including the degree to which individuals respond to publicity and information campaigns and other incitements.”
 
Amy Harder contributed reporting to this article.
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Lunchtime Reads and Hot Takes

Climate worries galvanize a new pro-nuclear movement in the U.S. — The Washington Post
Amy’s take: This shift has been underway for a few years now, and California is—for once—late to the climate party!

Climate change heats up South Asia—and global food crisis — POLITICO
Anca’s take: This article is a clear reminder that leaving climate change unchecked can have serious—and immediate—consequences on our day-to-day lives. The heat wave in South Asia that triggered a chain reaction affecting global food security “was made 30 times more likely by climate change.”

Ind. experiment highlights wind siting challenge — E&E News (paywall)
Amy’s take: A company tried to be super transparent, and people just didn’t engage. Interesting point—and business opportunity—about finding some sort of trusted entity to build community support for such projects.

This tiny Utah town could shape the West’s energy future — Los Angeles Times
Amy’s take: Two underground caverns poised to hold hydrogen as seasonal electricity storage will be the size of the Empire State Building. Wow! It’s a reminder of the sheer scale we must contend with in energy.

Coal India to open big, new mine this year to fight power crisis — Reuters
Anca’s take: Not the kind of headlines we want to read these days. This all points to a vicious cycle as well: India is boosting coal production, which is bad for the climate, to deal with surging power demand caused by a heat wave that was made more likely by climate change.

In US, states struggle to replace fossil fuel tax revenue — AP News
Amy’s take: This is an oil and gas industry talking point for good reason. I would have liked to see this story explore to what degree clean energy development could help offset these losses by providing a new tax base.

Do Airline Climate Offsets Really Work? Here’s the Good News, and the Bad. — The New York Times
Amy’s take: Question mark headlines expose laziness, and the answer to that question is no (not yet). I also would have liked to see the story discuss to what degree offsets associated with carbon removal technology companies could be better.

Australia’s ‘Climate Election’ Finally Arrived. Will It Be Enough? — The New York Times
Anca’s take: With a Labor government now in charge, the country Down Under now has a chance to redeem itself from being a global laggard on emissions cuts to a more progressive player both internationally and at home. That’s good news for the climate, since Australia’s carbon footprint is not tiny: it’s the 14th largest emitter globally with just 0.3% of the population. Once the celebrations are over, the pressure to deliver will be on.

More reading:

  • Climate change at Davos: Carbon capture needs to be the size of the oil and gas industry — MarketWatch
  • Three women to steer France's new 'super' green industry — Euractiv
  • Interview Of The Week: Ann Mettler, Breakthrough Energy — The Innovator
  • Germany to Bring Back Coal Power Plants If Russia Cuts Gas — Bloomberg
  • TotalEnergies agrees to buy 50% of U.S. renewables company Clearway — Reuters
DATA DIVE

Cleantech investment to soar in Southeast Asia

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Source: International Energy Agency • STEPS stands for Stated Policy Scenario, which reflects countries' current and announced policy settings. SDS stands for Sustainable Development Scenario, which reflects a more aggressive pathway adhering to the Paris Climate Agreement goals.

BY: AMY HARDER

Investments in a range of clean energy technologies are poised to increase in Southeast Asia over the coming decades, but growth really skyrockets if the world gets on a path of limiting Earth’s temperature increase to 1.5 degrees Celsius, according to a new report by the International Energy Agency.

Countries in this region, including Indonesia, Thailand and Vietnam, are still growing their economies and thus their energy demand is set to increase under all scenarios.

But outlooks diverge widely depending which pathway the world pursues: one that includes significantly more aggressive government policy that limits the Earth’s temperature rise to 1.5 degrees Celsius or another, less aggressive pathway that reflects countries’ current and announced policies.

Clean energy technologies increase in both scenarios, but demand for oil, natural gas and coal increase only in the latter, less aggressive pathway.

Among new energy technologies, batteries are set to increase the most, particularly in a 1.5-degree scenario.

Market size estimates include average market prices and sales of tradeable units of the core technologies listed, IEA says. This differs from investment or spending estimates that include things like installation costs.

AND FINALLY...

Port winds

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Anca snapped this photo last weekend during a trip to Belgium's Flemish city of Antwerp, also known as the diamond capital of the world. Wind turbines surround the Port of Antwerp-Bruges in the background, which wants to become climate neutral by 2050. The port hosts 80 wind turbines that can power 140,000 families.

Each week, we feature a photo that is somehow related to energy, the thing we all need but don’t notice until it’s expensive or gone. Email your ideas and photos to news@ciphernews.com

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