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Parabolic Trough Technology to Gain Traction in Concentrated Solar Power Market

Parabolic Trough
Archives, Global Trade Daily, Utilities

Parabolic Trough Technology to Gain Traction in Concentrated Solar Power Market

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The rapid adoption of clean energy across the decentralized grid network is projected to add impetus to the global concentrated solar power market expansion in the foreseeable future. Governments worldwide are focusing on improving the usage of sustainable energy by introducing various policies and reforms.

Likewise, high integration of the thermal energy storage technology, as well as the FDI’s and private investments in the Asia Pacific & the Middle East regions to deploy new concentrated solar power plants, will boost industry share.

The global market has been witnessing robust demand for sustainable electricity, along with mounting investments in solar integrated power grids. Furthermore, the advancements in technology to use the solar receivers with increased thermal performance, the large-scale integration of renewable energy, as well as the rapid sustainable electrical network construction will contribute to notable concentrated solar power market growth over the projected timeframe.

The energy demand across the globe has been constantly rising. Several businesses are making medium- and large-scale investments to develop solar generation farms, which in turn, can drift the regulatory policies & consumer tendencies towards solar technologies. Concentrated solar thermal systems will further gain high prominence over the coming years, due to the restructuring of various trade policies as well as investment flows across the developing economies.

Based on technology, the global concentrated solar power market from the parabolic trough segment is slated to witness remarkable traction in years to come, which is attributable to the rising number of investors, coupled with the utility inclination towards this technology. The segmental growth will also be bolstered by the shifting focus towards the advancements of thermal energy storage options and subsequent development of solar receivers to improve the collector field thermal performance. Additionally, growing R&D activities to adopt storage technology with high absorption rates and longer receiver life cycle will augment the integration of this technology.

In the parabolic trough CSP systems, the solar energy is concentrated by the parabolically curved and trough-shaped reflectors on a receiver pipe above a curved mirror surface. The heat energy is then deployed in the thermal power block to generate power in a conventional steam generator. These accelerating concentrated solar power advantages will amplify the concentrated solar power market outlook over the forecast spell.

In terms of segmentation by capacity, the ≤ 50 MW segment is set to gain significant momentum in the years ahead. The segmental expansion can be credited to the capability of the CSP units to complement the escalating energy demand across the commercial sector as well as their high applicability in small-scale industrial process heat systems to lower the level of fossil fuel consumption.

Furthermore, rising installations of solar thermal power plants across space-constrained areas, coupled with the stringent environmental regulations to ensure carbon reduction, will create ideal growing conditions for the overall concentrated solar power market over the projected timeframe. For example, in 2019, the Indian Government set 7.2% as the solar purchase obligation for the power distribution companies, which will be increased to 10.5% by 2021.

With regards to storage, the global concentrated solar power industry from the without storage segment will depict a considerable growth rate, driven by the low installation costs and complexity. Minimal capital expenditure has also led to a reduction in maintenance and operational costs. Additionally, a paradigm shift towards the installation of these without storage CSP plants due to high capacity utilization and power reliability will boost business growth.

The competitive landscape of the concentrated solar power market consists of companies namely Acciona Energy, Suntrace, Enel Green Power, Abengoa Solar, and ACWA Power, among others. These companies are targeting towards expanding their regional footprint and product portfolio by implementing strategies such as M&A and business expansions.

For instance, in March 2021, ENGIE reached an agreement to acquire a 100-MV concentrated solar power plant from Abengoa, which is equipped with a molten salt storage system and parabolic trough technology to enable 5.5 hours of power storage and deliver electricity during peak demand.

Source: https://www.gminsights.com/industry-analysis/concentrated-solar-power-market

electricity
Archives, Global Trade Daily, Utilities

States With the Most (and Least) Expensive Electricity

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When an extreme winter storm tore through Texas earlier in 2021, the widespread power outages that followed put a microscope on how electricity is produced and generated. A state that prides itself on its critical role in the energy economy—both as a source of traditional fossil fuel energy sources like oil and a growing hotspot for renewables like wind and solar—had its electric grid completely crippled for days. Stories emerged of customers being billed thousands of dollars for using the state’s limited supply of electricity in the storm’s aftermath. The situation became a flashpoint for a longer-running debate in the state (and beyond) over whether renewables or fossil fuels were a more dependable source of energy.

Despite the renewed political back and forth over energy production in the wake of the Texas storm, the overall trends in the U.S. energy sector are undeniable: renewables will be the fastest-growing contributor to electricity production in the U.S. in the decades to come. Government incentives and technological advancements in the renewable sector have lowered costs and improved reliability in recent years, and low costs will spur increased adoption of the newer technologies.

Data from the U.S. Energy Information Administration show that renewables currently represent around 21% of electricity generated in the U.S. By 2050, that figure is expected to double. Meanwhile, natural gas will decline slightly from 40% to 36% of electricity production over the same span. And the respective shares of electricity generated from nuclear and coal will be nearly cut in half.

The increased use of renewable sources will also pass on savings to consumers. The cost of electricity is also projected to decline in the next three decades, albeit gradually. The 2021 cost of electricity per kilowatt-hour currently averages around 10.5 cents across all sectors; that number will drop to 9.6 cents by 2050. And this trend will not be limited to any one sector: cost projections for electricity in the residential, commercial, industrial, and transportation sectors all show the same downward trend. Customers can expect to see a reduction in retail prices across the energy sector spectrum as the cost of electricity generation declines.

Some parts of the country could feel more of the benefit than others as costs decline. By one measure—average monthly residential electricity bill—most of those beneficiaries will be in the Southeastern U.S. The main factor driving costs in the Southeast is the greater use of electricity throughout the year compared to other regions. Warmer weather in the summer means high bills from air conditioning, and in the winter, Southeastern households are more likely to heat their homes with electricity than with other sources like natural gas or fuel oil. While these factors suggest that consumption levels will remain high, customers in the Southeast will benefit from electricity’s lower unit costs.

Another way to evaluate the different costs between states is to look at the average per kilowatt-hour cost of electricity across all sectors. On this measure, one of the key factors driving disparities between states is whether the state must import fuel or energy to supply their electricity. The most expensive states include the geographically remote Hawaii and Alaska, along with New England states that have largely retired old coal and nuclear facilities in recent years and rely on imported natural gas for electricity. In contrast, states, where electricity prices across sectors are cheap, tend to have nearby resources for electricity production, whether that be natural gas, coal, or a strong renewables sector.

To find the states with the most and least expensive electricity, researchers at Porch used information from the U.S. Energy Information Administration and ranked states based on the average electricity price for all sectors in cents per kilowatt-hour (kWh). In the event of a tie, the state with the greater residential price for electricity was ranked higher.

Here are the states with the most and least expensive electricity.

States With the Most Expensive Electricity

State Rank Average electricity price for all sectors Residential price Average monthly residential bill Average monthly consumption

 
Hawaii 1 28.72¢ per kWh 32.06¢ per kWh $168.21 525 kWh
Alaska 2 20.22¢ per kWh 22.92¢ per kWh $127.29 555 kWh
Connecticut 3 18.66¢ per kWh 21.87¢ per kWh $150.71 689 kWh
Rhode Island 4 18.49¢ per kWh 21.73¢ per kWh $121.62 560 kWh
Massachusetts 5 18.40¢ per kWh 21.92¢ per kWh $125.89 574 kWh
New Hampshire 6 17.15¢ per kWh 20.05¢ per kWh $120.04 599 kWh
California 7 16.89¢ per kWh 19.15¢ per kWh $101.92 532 kWh
Vermont 8 15.36¢ per kWh 17.71¢ per kWh $97.18 549 kWh
New York 9 14.34¢ per kWh 17.94¢ per kWh $103.60 577 kWh
Maine 10 14.04¢ per kWh 17.89¢ per kWh $100.53 562 kWh
United States – 10.54¢ per kWh 13.01¢ per kWh $115.49 887 kWh

 

States With the Least Expensive Electricity

State Rank Average electricity price for all sectors Residential price Average monthly residential bill Average monthly consumption

 
Louisiana 1 7.71¢ per kWh 9.80¢ per kWh $120.70 1,232 kWh
Oklahoma 2 7.86¢ per kWh 10.21¢ per kWh $113.93 1,116 kWh
Idaho 3 7.89¢ per kWh 9.89¢ per kWh $93.83 949 kWh
Washington 4 8.04¢ per kWh 9.71¢ per kWh $94.49 973 kWh
Wyoming 5 8.10¢ per kWh 11.18¢ per kWh $96.53 864 kWh
Arkansas 6 8.22¢ per kWh 9.80¢ per kWh $109.46 1,118 kWh
Utah 7 8.24¢ per kWh 10.40¢ per kWh $75.63 727 kWh
West Virginia 8 8.49¢ per kWh 11.25¢ per kWh $121.90 1,084 kWh
Texas 9 8.60¢ per kWh 11.76¢ per kWh $134.07 1,140 kWh
Kentucky 10 8.61¢ per kWh 10.80¢ per kWh $120.08 1,112 kWh
United States – 10.54¢ per kWh 13.01¢ per kWh $115.49 887 kWh

 

For more information, a detailed methodology, and complete results, you can find the original report on Porch’s website: https://porch.com/advice/states-with-the-most-least-expensive-electricity

energy exports
Archives, Global Trade Daily, Utilities

U.S. States that Export the Most Energy

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The energy economy in the United States has been transformed over the last 15 to 20 years, reducing reliance on some traditional fuel sources while bringing others to the forefront.

The main factors driving this shift have been the increased use of natural gas and renewable energy. The emergence of fracking has reduced the costs of natural gas extraction and led to a boom in domestic production over the past couple of decades. Simultaneously, new innovations in renewable energy sources like solar and wind power have reduced costs and made these alternatives more viable at scale. With the adoption of natural gas and renewables, production and consumption of formerly predominant sources like oil and coal have leveled off or declined.

This transition has also shifted the U.S. political economy around energy. Nationally, political figures have called for U.S. energy independence from imported foreign fuel resources for years, hoping to reduce reliance on other nations in the event of geopolitical conflicts. Because of the U.S.’s increased production of domestic energy sources, the country has made rapid progress toward that goal in recent years.

In 2019, the United States was a net exporter of energy for the first time since 1957, meaning that it produced more energy than it consumed. With a sharp increase in production over the past twenty years, production has begun to catch up with consumption and exports with imports. The nation’s net imports of coal and coke, natural gas, and petroleum have all fallen below zero, leaving only crude oil as a major fuel import—and even imports in that category are showing a decline.

Within the U.S., states have different levels of production and consumption affecting their import and export levels as well. While some states—especially those who produce coal in large numbers—have suffered in the transition between fuels, others have dramatically increased their energy production. As a result, these states are now producing far more energy on a per capita basis than peer states are.

This is particularly true for two of the states at the front of the natural gas boom, Wyoming and North Dakota. These states lead the nation in both total energy production on a per capita basis, a function of both their high levels of production and their low populations.

Interestingly, Wyoming and North Dakota are among the nation’s leaders in per capita energy consumption levels as well. One of the reasons is that extracting and refining fuel is itself an energy-intensive process—which is why some of the other leading states for energy consumption per capita are also major fuel producers, like Alaska and Louisiana.

Despite their high consumption levels, leading states Wyoming and North Dakota nonetheless have the highest net energy exports per capita, followed by other major energy producers like West Virginia, New Mexico, and Alaska. To find these locations, researchers at Commodity.com used data from the U.S. Energy Information Administration’s Electric Power Annual Report and ranked states based on their net energy exports per capita—calculated as the difference between per capita production and consumption.

Here are the states that export the most energy.

State Rank Net energy exports per capita (million Btu) Total energy production per capita (million Btu) Total energy consumption per capita (million Btu) Net energy exports (trillion Btu) Total energy production (trillion Btu) Total energy consumption (trillion Btu)

 
Wyoming     1     12,368.3 13,335.4 967.1 7,158.3 7,718.0 559.7
North Dakota     2     4,677.5 5,549.4 871.9 3,564.6 4,229.0 664.4
West Virginia     3     2,200.0 2,661.6 461.6 3,942.7 4,770.0 827.3
New Mexico     4     1,301.0 1,636.8 335.8 2,727.9 3,432.0 704.1
Alaska     5     1,099.3 1,928.8 829.5 804.2 1,411.0 606.8
Oklahoma     6     800.4 1,233.5 433.1 3,167.2 4,881.0 1,713.8
Montana     7     522.5 932.8 410.3 558.5 997.0 438.5
Pennsylvania     8     392.5 702.0 309.5 5,024.8 8,987.0 3,962.2
Colorado     9     370.0 635.9 265.9 2,130.8 3,662.0 1,531.2
Texas     10     206.2 704.3 498.1 5,978.2 20,421.0 14,442.8
United States* –     2.7 307.8 305.2 873.0 101,038.0 100,165.0

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-export-most-energy/

solar water heater
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Global Solar Water Heater Market Forecasted for Healthy Growth by 2025

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According to a recent study from market research firm Global Market Insights, the solar water heater market is set to grow from its current market value of more than $1 billion to over $3 billion by 2025, gaining remarkable traction over 2020 to 2025 period.

Growing demand for cost-effective, advanced, and energy-efficient water heating solutions would expand the solar water heater industry landscape in the forthcoming years. Solar water heaters, also known as solar domestic hot water systems, are a cost-effective way to generate hot water in any climate. These solar water systems are comprised of two major components, which are storage tanks and solar collectors.

The installation of solar water heating systems usually costs more than conventional heating systems. However, incorporation of these systems in domestic and industrial settings minimizes fuel and gas bills by up to 50% – 80% and reduces carbon emission produced by other water heater systems.

Growing awareness towards sustainable sources of energy will substantially augment the adoption of solar water heaters. According to a Global Market Insights, Inc., forecast, the global solar water heater market size is estimated to surpass $3 billion by 2025.

Flat plate collectors are used to collecting solar energy, which is further used to heat water in the home for washing, bathing, and heating water pools and others. The benefits of the product such as low cost, simple design, and comparatively easier installation than other hot water heating systems will augment its demand for most residential and small commercial hot water applications.

Increasing demand for energy-efficient water heating systems in commercial and household settings would boost the adoption of flat plate collectors.

Evacuated tube collectors are comprised of transparent glass tubes and metal absorbers which increases absorption of solar energy and reduces heat loss. On account of such features, these collectors are broadly used in commercial applications across the U.S.

The thermosyphon system is the commonly known solar-heated hot water system. These commercially available solar hot water systems work by combining a storage tanker and roof-mounted flat plate collector. Growing demand for cost-effective, nature-friendly, energy-efficient, and capacity solar water heater solutions from commercial establishments will increase their deployment in the coming years.

The European solar water heater industry is expected to witness significant growth owing to several government initiatives to increase the adoption of renewable sources of energy. Such initiatives include priorities set by the European Union in the energy field for the development of energy production from renewable resources. The renewable resources development targets reducing the dependence on scarce fossil fuels and minimizing CO2 emissions.

Reportedly, the adoption of energy-efficient water heaters and household spaces can save European people over €60 billion by 2020, including electricity saving of nearly 600 TWh and reduction of CO2 emission up to 135 million tons. In several northern European countries, hot water and space heating systems are jointly used to provide 15 to 25% of home heating energy.

China leads the global industry in terms of solar water heaters installations which accounts for nearly 30 million in Chinese households. The widespread product deployment is mainly due to its functional effectiveness in cloudy weather and at even low temperatures. In several climates, these systems can render up to 85% of domestic hot water energy.

Source:  https://www.gminsights.com/industry-analysis/solar-water-heater-market

renewable energy
Archives, Commentary, Global Trade Daily

States With the Largest Increase in Renewable Energy Production

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One of the most significant trends over the last decade for the economy, society, geopolitics, and the environment has been the rise of renewable energy. Fossil fuels have been the basis of the industrial economy for generations, powering tremendous economic growth but with dangerous consequences for the environment and public health. With the dramatic expansion of renewable energy technologies over the last decade, power sources like wind, solar, and geothermal have offered a more sustainable—and increasingly more affordable—path forward.

Several factors contribute to the expansion of clean energy. For one, technological advancement in renewables has made energy production and storage more efficient than ever before. The renewables industry has also received a boost from public policies and investments enacted by governments worldwide seeking to decarbonize in response to the threat of climate change. These developments have helped bring down renewable energy production costs over time, allowing market forces to spur continued growth in the sector. In all, electric power generated from renewables in the U.S. has grown by more than 70 percent since 2010.

And although growth is occurring across many renewable sources, wind and solar have been the most prominent success stories of recent years. In 2007, wind accounted for about 35 million Megawatt-hours (MWh) of electricity produced in the U.S.; since then, wind production has increased by an average of around 20 million MWh per year, rising to nearly 295 million in 2019. Meanwhile, solar is the fastest-growing of all renewables. Solar production constituted less than 1 percent of renewable energy until around 2010, but experts now project that by 2050, solar and photovoltaic energy will account for nearly half of all renewable electricity production.


Growth in renewable energy production in the U.S. is widespread, but unique features of each region mean that the transition to renewables looks different from state to state. Measured by the proportion of total electricity generated from renewable sources, states in New England and the Western U.S. surpass the rest of the country, largely as a result of renewable-friendly state policies. Vermont generates a remarkable 99.9 percent of its electricity from renewables.

In terms of total electricity produced from renewables, California (97 million MWh), Texas (91 million MWh), and Washington (74 million MWh) are the national leaders. Physical geography explains much of these three states’ strength in renewables. California is the largest producer of geothermal (with the world’s largest geothermal field) and solar (due in part to large installations in the Mojave Desert). With plenty of cheap land and strong wind in many of its regions, Texas dominates the U.S. in wind production. And in Washington, major water features like the Columbia and Snake Rivers provide the basis for the nation’s strongest hydropower sector.

To identify the states with the fastest-growing renewable energy sector, researchers at FilterBuy used data from the U.S. Energy Information Administration to calculate the percentage change in renewable electricity production between 2010 and 2019. The researchers also calculated what percentage of total electricity production is accounted for by renewables, as well as the largest renewable energy source currently.

Here are the states with the largest increase in renewable energy production.

State Rank Percentage change in renewable energy production (2010-2019) Total renewable energy production 2019 (MWh) Total renewable energy production 2010 (MWh) Renewable energy share of total production 2019 Renewable energy share of total production 2010 Largest renewable energy source

 

 
Kansas     1      511.0% 21,218,058 3,472,565 41.7% 7.2% Wind
Nebraska     2      379.7% 8,667,568 1,807,009 23.2% 4.9% Wind
Oklahoma     3      377.6% 33,281,621 6,968,743 39.1% 9.6% Wind
New Mexico     4      310.1% 8,496,851 2,071,802 24.2% 5.7% Wind
Rhode Island     5      228.5% 472,344 143,779 6.2% 1.9% Biomass
Texas     6      213.9% 90,922,198 28,966,660 18.8% 7.0% Wind
Ohio     7      189.8% 3,272,411 1,129,113 2.7% 0.8% Wind
Utah     8      188.6% 4,261,269 1,476,479 10.9% 3.5% Solar
Illinois     9      186.4% 15,057,518 5,256,702 8.2% 2.6% Wind
Colorado     10      173.6% 14,043,640 5,132,797 24.9% 10.1% Wind
Iowa     11      155.7% 26,356,275 10,308,651 42.7% 17.9% Wind
Nevada     12      155.3% 11,345,373 4,443,943 28.4% 12.6% Solar
North Carolina     13      144.3% 16,709,383 6,839,691 12.7% 5.3% Solar
Michigan     14      143.3% 9,932,713 4,083,005 8.5% 3.7% Wind
North Dakota     15      134.0% 14,392,502 6,150,146 35.0% 17.7% Wind
United States     –      70.3% 727,696,543 427,376,077 17.6% 10.4% Wind

 

For more information, a detailed methodology, and complete results, you can find the original report on Filterbuy’s website: https://filterbuy.com/resources/states-largest-increase-renewable-energy/

metal tank
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The Pandemic to Undermine the Growth of the American Metal Tank Market

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IndexBox has just published a new report: ‘U.S. Metal Tank (Heavy Gauge) Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

In 2019, the U.S. metal tank market increased by 2.3% to $7.7B, rising for the third year in a row after two years of decline. The pace of growth appeared the most rapid in 2014 when the market value increased by 5.2% against the previous year. As a result, consumption attained a peak level of $9.6B. From 2015 to 2019, the growth of the market remained at a lower figure, hampered by both an economic slowdown and lower metal prices which plummeted amid a sharp drop of global oil and commodity prices.

Metal tanks, as an element of engineering infrastructure, are widely used in various industries, particularly, in oil and gas extraction and processing, as well as in the chemical industry, and transport facilities. Therefore, the key factor determining the development of the market is the dynamics of the industrial sector, which, in a broader context, reflects the overall GDP growth. Another particular fundamental is the state of the global oil market which determines capital investment in the oil and gas sector.

According to the World Bank outlook from January 2020, the U.S. economy was expected to slow down to +1.7% per year in the medium term, hampered by increasing global uncertainty, trade war, and slower global growth. In early 2020, however, the global economy entered a period of the crisis caused by the COVID-19 epidemic, due to which most countries in the world put on halt production and transport activity. The result will be a drop in GDP relative to previous years and an unprecedented decline in oil prices.

The U.S. is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation.

The industrial sector has proven vulnerable to the pandemic as due to quarantine measures, industrial facilities were paused, and the drop in incomes of the population makes the growth of end markets unfeasible. The oil and gas sector also challenges a drastic drop in drilling activity and oil extraction which is due to much lower demand for oil amid the pandemic and the related dramatic drop in oil prices.

Tight financial conditions and uncertainty regarding the length of the pandemic and the possible bottom of the related economic drop, as well as high volatility of financial markets, and political tensions between the U.S. and China, disrupt capital investments in the immediate term, which is to put a drag on the metal tank market.

In the medium term, should the pandemic outbreak end in the second half of 2020, the economy is to start recovering in 2021 and then return to the gradual growth, driven by the fundamentals that existed before 2020.

Taking into account the above, it is expected that in 2020, the consumption of metal tanks will drop by approx. 6%. In the medium term, as the economy recovers from the effects of the pandemic, the market is expected to grow gradually, with an anticipated CAGR of +0.5% for the period from 2019 to 2030, which is projected to bring the market volume to $8.2B (in fixed 2019 prices) by the end of 2030.

The U.S. Metal Tank Market Remains to a Large Extent Dependent on Imports

In value terms, metal tank production amounted to $7.7B in 2019. Over the period under review, production continues to indicate a perceptible downturn. The U.S. metal tank market remains dependent on imports: over the period under review, the share of imports in terms of total metal tank consumption in the U.S. increased from 12% in 2007 to 17% in 2019 (based on value terms). It means that the U.S. metal tank market remains an attractive destination for foreign manufacturers.

Metal tank imports declined dramatically to $1.3B (IndexBox estimates) in 2019. The total import value increased at an average annual rate of +3.4% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years.

In value terms, China ($492M) constituted the largest supplier of metal tanks to the U.S., comprising 37% of total imports. The second position in the ranking was occupied by Canada ($181M), with a 14% share of total imports. It was followed by Mexico, with an 11% share.

From 2013 to 2019, the average annual rate of growth in terms of value from China stood at +9.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Canada (+0.2% per year) and Mexico (+9.8% per year).

Companies Mentioned in the Report

Enerfab, Inc., Paul Mueller Company, Caldwell Tanks, Inc., Modern Welding Company, Inc., Flexcon Industries, Inc., Imperial Industries, Inc., Walker Engineered Products, Taylor-Wharton International LLC, CST Industries, Inc., Permian Tank & Manufacturing, Nooter Construction, Inc., Polar Tank Trailer, Mid-State Tank Co., Fort Worth F and D Head Company, James Machine Works LLC, Rocky Mountain Fabrication, Phoenix Fabricators & Erectors, HMT LLC (Pasadena Tank Corporation), Washington Metal Fabricators (WMF), Truenorth Steel,  Arrow Tank and Engineering Co, Helgesen Industries, Mississippi Tank and Manufacturing Company, Alonso & Carus Iron Works, Cimarron Energy, Tankcraft Corporation, Highland Tank & Manufacturing Company, Inc.

Source: IndexBox AI Platform

brazil
Archives, Foreign Trade Zones, Global Trade Daily, International Trade, Site Selection, Utilities

Brazil’s Electric Power Transmission Auction Paves the Way in Economic Recovery and Foreign Investment

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On December 17th, Brazil will kick off its upcoming Electric Power Transmission Auction. This event, which will take place in São Paulo, is critical for Brazil’s forward-movement in economic recovery since the pandemic. ANEEL – the Brazilian Electricity Regulatory Agency, will be hosting the auction to attract investments to the energy sector, and ultimately create jobs. Global Trade Magazine heard directly from Roberto Escoto, Investment Manager of Apex-Brasil (the Brazilian Trade and Investment Promotion Agency) to learn more about the event and its importance in the foreign investment arena.

 

 

 

 

Discuss the goals for the upcoming Electric Power Transmission Auction and the issues it’s aiming to solve.

The upcoming Electric Power Transmission Auction will be held on December 17, 2020 by the Brazilian Electricity Regulatory Agency (ANEEL) at B3 S/A – Brasil, headquartered in São Paulo.

There are 11 lots of projects, covering 1,940 km of transmission lines and substations with a transformation capacity of 6,420 MVA. The transmission facilities that will be auctioned involve investments of about BRL $7.4 billion, with the potential of generating 15,434 thousand jobs during construction of the projects.

The term for commercial operation of the facilities varies from 42 to 60 months, for concessions of 30 years valid from the signing date of the contracts. Concessions will be tendered for the construction, operation, and maintenance of 16 transmission lines and 12 substations.

Brazil’s main transmission network, the National Interconnected System (Sistema Interligado Nacional – or SIN), consists of four interconnected subsystems (North, Northeast, Southeast and Center-West, and South). Together, this makes up one of the largest interconnected subsystems in the world. The Brazilian network has interconnections with neighboring Paraguay (through the Itaipu Binational project), as well as with Uruguay, Argentina, and Venezuela.

The system operator (ONS) expects the Brazilian transmission network to grow extensively by 2024.  More specifically, ONS envisages an extension of the grid towards the less well-connected regions of Brazil, as well as work to make further improvements to the existing grid in other parts of the country. The upcoming Electric Power Transmission Auction in December 2020 aims to assist in achieving these goals.

How does the region create and maintain a competitive environment for initiatives in the energy sector and foreign investment?

The electricity sector in Brazil – in generation, transmission, and distribution – is now one of the largest destinations of foreign direct investment in the world. The growing interest from foreign investors is driven by strong business opportunities, with private players having the chance to compete in all segments of the sector, combined with the strengthening of Brazil’s regulatory framework.

What major companies are already benefiting from investment opportunities/energy sector in this region? 

Companies from all around the world are benefiting from the investment opportunities within Brazil’s energy sector, including but not limited to Iberdrola, Enel, EDP, Engie, EDF, EDP, Statkraft, Equinor, State Grid, China Three Gorges, CGN, Brookfield, Suncor, Canadian Solar, and more.

Discuss how you identify and lead multi-sector business development opportunities? 

Apex-Brasil has an extensive international network of partner organizations, associations, and companies. We have offices in the U.S. (Miami and San Francisco), Europe (Brussels), Israel (Jerusalem), Russia (Moscow), China (Shanghai and Beijing), the United Arab Emirates (Dubai), and Colombia (Bogota). Additionally, since we work in close partnership with the Brazilian Ministry of Foreign Affairs, we have access to over 100 Embassies around the world. Finally, we have a market intelligence unit that supports our efforts with relevant information on the international economy, business, and key players.

This global reach and intelligence allow us to map and prospect the right investors, as well as introduce Brazilian companies to foreign investors on international business trips.

How is the workforce prepared for incoming investors? How about for current investors?

Brazil is a populous country with a workforce of over 100 million people. The sectors that usually gather the largest number of Brazilian workers, according to IBGE’s statistic report (PNAD), are retail and mechanic workshops, public administration, defense, education, health, social services, information and communications services, financial activities, realty, and administration.

In 2017, Brazil’s Congress approved a reform in the country’s work legislation, known as the Consolidation of Labor Laws (CLT). The main goal of this reform was to make the laws more flexible, with a specific focus on negotiations between employers and employees.

As a result, new rules have emerged, allowing for outsourcing of labor in a company’s main activity, home-office regulation, and more accountability for employees in lawsuits against employers. That said, collective bargaining agreements between employers and unions may offset some points written in the law, adjusting the terms to the necessities of the workers. Some of these topics include working hours, profit sharing, and sanitary standards (which were previously established only by the employer).

However, this does not mean that workers are left unprotected, as their fundamental rights cannot be negotiated under CLT. These rights include maternity and paternity leave, holidays, minimum wage, 13th salary, retirement, and the Guarantee Fund for Continuing Service (FGTS), which is a type of savings account taken directly from workers’ salaries that aims to protect the worker’s subsistence in case of dismissal but can also be used to buy residential properties.

Also, Brazil has first-rank universities and engineers with expertise in onshore and offshore technologies, as well as in EPC entrepreneurships.

Brazil has a skilled and diversified labor market, as well as favorable labor framework conditions for investors.

Let’s discuss how the region has managed the energy sector climate during the pandemic and other disruptions. What should companies know and how are you addressing it?

Brazil is taking concrete actions to combat the Covid-19 pandemic and still remain globally competitive. Among other measures, the Brazilian government has launched a package to protect both workers, especially the most vulnerable people, and SMEs.

When it comes to the power sector specifically, several initiatives have been introduced since the start of the pandemic. This includes but is not limited to the following measures:

First, a Committee of Crisis and Monitoring, composed of the Ministry of Mines and Energy (MME), and other authorities and experts, has been established to map and act quickly on the challenges that the pandemic has imposed.

Second, MME and ANEEL, along with banks, have designed and implemented the “COVID account,” which offers loans of a total of USD $16.1 billion for energy companies, with the goal of providing liquidity to the sector, especially in the key segment of distribution.

Finally, MME has launched the green bonds program, which is favorable for obtaining financing for new energy projects, with an estimated gradual release of USD $250 by 2030. It is envisioned that this particular program will contribute to expanding 25 GW for new wind energy, 8GW for solar and energy, and 3 GW for small hydro plants.

Please share anything else you’d like the readers to know about Brazil’s investment climate.

Brazil has one of the cleanest electric matrices in the world, with over 80% of our electricity coming from renewable sources. Currently, hydro represents 58% of the Brazilian power generation mix, while biomass, wind, and solar have a share of 11%, 9%, and 2%, respectively. In 2029, it is expected that these sources will represent 42%, 10%, 16%, and 8%, respectively, of our power generation mix. With this forecast in mind, it is clear that wind and solar energies are increasing fast and constantly, underscoring their importance now and in the future. That said, this growth is not a surprise: Solar and wind are very competitive areas, and Brazil offers unique differentiators for investors to consider.

For example, Brazil has one of the highest capacity factors for wind energy in the world, with an average above 40%. Brazil also has the highest growth rate for wind in Latin America over the last 10 years. Additionally, our solar irradiation is higher than those of other counties, such as Spain, France, and Germany. What’s more, the power generation segment has opportunities in auctions, free market (Corporate Power Purchase Agreements model), and distributed market (i.e. type of net metering model) – these are all important drivers for the growth of these two sources.

To conclude, Brazil´s energy sector has a successful regulatory framework that is prime for foreign direct investment. Additionally, all of the energy segments in Brazil (generation, transmission, and distribution) are open to private investors. Lastly, Brazil has a solid track record of success and growth in this sector, which is the reason why the power sector attracted so much foreign investment in 2019, as well as why we expect this growth to continue in the coming years.

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Hand Protection Needs will Foster Electrical Safety PPE Market Outlook

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With the introduction of stricter worker safety norms, electrical safety personal protective equipment awareness has been gaining importance. The use of PPE in electrical and substation applications across power generation, construction, automotive, food processing, and manufacturing sectors has increased significantly.

It is estimated that the global electrical safety PPE market size will be worth more than US$20 billion by 2025, with the presence of stringent regulatory standards set forth by the European Union and OSHA to ensure occupational safety along with timely inspection and assessments. The range of PPE products used for electrical safety includes head protection gear, eye & face protection gear, hand protection equipment, hearing protection gear, and protective footwear.

The electrical hand protection equipment industry size is likely to exceed US$7 billion by 2025. These products include insulation tuber gloves and leather protective sleeves which provide necessary protection to fingers, hands, wrists, and lower arms.

The demand for electrical safety PPE across transmission applications is expected to grow substantially in the upcoming years. With growing urbanization and industrial development in China and India, the rate of electrification has also increased. As a result, an increasing number of electrical workers on transmission lines for repair and maintenance will increase product demand.

The U.S. arc-rated clothing industry size is projected to be worth over US$1 billion by 2025. PPE used in electrical applications is usually flame resistant and protect linemen and workers from fire and flash accidents. Arc flashes are among the most fatal and common electrical hazards which have massive compensation costs and lead to huge economic losses.

In September 2020, manufacturers of flame-resistant and arc-rated PPE launched The Partnership for Electrical Safety, a joint effort to ensure optimum electrical safety to American workers working on electrical equipment from deadly hazards.

Thousands of American linemen working on or around energized electrical equipment are currently not equipped or provided with proper protection against hazards of electrical arc flash despite OSHA regulations that have been in place for over two decades. The Partnership for Electrical Safety aims to directly address this critical issue and improve the health and safety of unprotected electrical workforce across the country.

The electrical safety PPE market size in France is set to reach more than US$900 million by 2025. Over the past few years, the country has invested in a number of renewables deployment projects for power generation, resulting in growing windmill construction, repair, and maintenance activities. Supportive regulatory policies enforced by the European Commission including CE marking to ensure optimum product quality will positively impact the regional outlook.

India’s electrical safety PPE market size is estimated to witness a robust CAGR of more than 7.5% through 2025. An increasing number of residential, commercial, and industrial expansion projects have created promising employment opportunities in the construction sector. Additionally, growing investments by the public as well as the private sector in sustainable power generation and distribution projects, mainly across rural regions, will augment the regional PPE demand.

Oberon Company, Rock Fall Limited, Black Stallion Inc, Protective Industrial Products, NATIONAL SAFETY APPAREL, Boddingtons Electrical Ltd., Honeywell International, Inc., COFRA S.R.L., Paulson Manufacturing Corporation, MSA Company, Baymro Safety, and UVEX Safety Group are a few notable manufacturers of electrical safety PPE.

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The Global Electric Generator Market to Seek New Balance Between the Pandemic, Cheaper Oil, And the Demand for Alternative Energy

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IndexBox has just published a new report: ‘World – Electric Generating Sets And Rotary Converters – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The Increased Demand for Autonomous Electricity Supply for Business, Industrial Facilities, and IT Infrastructure Buoys Electric Generator Market

In 2019, the global market for electric generating sets and rotary converters was finally on the rise to reach $58.4B after two years of decline. Electric generating sets and rotary converters are equipment that is used for primary power generation and also serves as backup power supplies for infrastructure and residential buildings.

The key factors in the demand for generators are the growing demand for electricity, insufficient electrical infrastructure, especially in areas far from large cities, the need to provide a guaranteed power supply with a stable voltage, as well as backup power to important infrastructure facilities (hospitals, government agencies, business centers, airports, train stations, etc.) and technical equipment (communication towers, data centers, industrial enterprises, etc.).

In value terms, the largest electric generating set and rotary converter markets worldwide were the UK ($3.1B), China ($2.8B), and Russia ($2B), together comprising 14% of the global market (IndexBox estimates). Brazil, the U.S., India, Indonesia, Turkey, Japan, Nigeria, South Korea, and Angola lagged somewhat behind, together comprising a further 15%. The leadership of the UK in value terms is largely attributed to the high demand for wind generators in the country – such units are large, rather expensive, and their quantity is much less than, for example, portable gasoline generators.

In 2019, the highest levels of per capita consumption of electric generating sets and rotary converters were registered in Angola (30 units per 1000 persons), followed by South Korea (8.23 units per 1000 persons), Japan (7.40 units per 1000 persons), and Russia (6.79 units per 1000 persons), while the world average per capita consumption of electric generating set and rotary converter was estimated at 2.92 units per 1000 persons.

Since industrial and other high capacity generators constitute expensive equipment, their installation and use correspond with capital investments against the background of the general growth of industry and trade. The dynamics of construction also directly affects the generator market: business centers, retail outlets, infrastructure, and social facilities are increasingly being equipped with backup generator sets, while residential construction is driving the demand for portable generators for private homes, which are usually purchased in case of power outages.

Another fundamental factor of market growth is the growth of the IT sector, as well as the telecommunications sector: the coverage of the countries of the world with wireless networks and mobile Internet is increasing, the infrastructure for which requires a stable power supply.

The development of electric transport (especially electric vehicles) will require the creation of a large-scale network of charging stations, which may increase the demand for generators (local generators can become auxiliary or even the main sources of energy for charging stations in hard-to-reach areas).

The Pandemic Hampers Business Investment But Promotes the Equipment of Medical Facilities and the Demand for Portable Generators

In view of the above, the dynamics of the electric generating sets and rotary converters market as a whole reflects the overall GDP growth. In early 2020, the global economy entered a period of the crisis caused by the outbreak of the COVID-19 pandemic. In order to battle the spread of the virus, most countries in the world implemented quarantine measures that put on halt production and transport activity.

The combination of those factors disrupts economic growth heavily throughout the world. According to World Bank forecasts, despite the gradual relaxing of restrictive measures and unprecedented government support in countries that faced the pandemic in early 2020, the annual decline of global GDP could amount to -5.2%, which is the deepest global recession being seen over the past eight decades.

In Asian countries, especially China, which faced the pandemic earlier than others, the epidemic situation improved earlier, with the quarantine measures largely relaxed, and the economy is gradually recovering from the forced outage. Thus, in China, by the end of 2020, an increase of 1% is expected (while a year earlier it was 6.1%), and in general in Southeast Asia in 2020, an increase of 0.5% is expected. In the medium term, it is assumed that the economy will gradually recover over several years as the restrictions are finally lifted. The U.S., meanwhile, is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation.

The industrial sector has proven vulnerable to the pandemic as due to quarantine measures, industrial facilities may be stopped, and the drop in incomes of the population makes the growth of end markets unfeasible, thereby hampering any expansion of the industrial manufacturing. Thus, the above economic prerequisites will have a negative impact on the establishment of new industrial facilities and put a drag on market recovery.

On the other hand, measures to mobilize the medical system and equip temporary COVID hospitals required the use of a large number of generators. At the same time, in the second half of 2020, the effect of this factor may fade out against the background of the gradual weakening of the pandemic and the removal of social isolation.

In the wind energy segment, which comprises the global exports of $6.1B in 2019, an additional factor is also favorable government policy worldwide. Increased attention to environmental issues and the political goal of reducing the “carbon load” will increase the demand for generators on alternative energy sources, in particular, for wind turbines.

As for portable generators, the additional demand could be found in those countries with a lack of stale centralized electricity supply e.g., in many African countries. Furthermore, lower oil prices as a result of reduced demand and oversupply amid the pandemic are making oil and gas more affordable. Consequently, the cost of electricity that is generated by the fossil-fuel-based equipment is reduced, which contributes to the growth of the use for electric generating sets and rotary converters. The increasing social anxiety, as well as the continuing threat of isolation due to the virus, could lead to the purchase of portable generators for future use in case of power outages in emergency situations.

Taking into account the above, it is expected that in 2020 and the next few years, global consumption of electric generating sets and rotary converters should decline somewhat against 2019. In the medium term, as the global economy recovers from the effects of the pandemic, the market is expected to grow gradually. Overall, market performance is forecast to pursue a slightly upward trend over the next decade, expanding with an anticipated CAGR of +0.9% for the period from 2019 to 2030, which is projected to bring the market volume to 25M units (IndexBox estimates) by the end of 2030.

Source: IndexBox AI Platform

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U.S. States and Metros Hit the Hardest by the Drop in Oil Prices

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The COVID-19 pandemic has sent the world economy into turmoil as lockdowns around the world have caused economic activity to grind to a halt. The demand for oil has crashed in the wake of the growing pandemic, sending oil prices diving and even dipping below $0 per barrel. According to the most recent data from the U.S. Census Bureau, the U.S. employs close to 130,000 people in the oil and gas extraction industry. Many of these workers now face uncertain employment.

Bureau of Labor Statistics (BLS) data from the last two decades shows that employment in the oil and gas sector tends to rise and fall with crude oil prices. Price drops in 2014 resulting from oil surpluses caused the oil and gas sector to shed roughly a third of its workforce. Today, the pandemic combined with a lack of storage capacity for excess oil have caused the price to fall sharply again—a trend that threatens thousands of jobs.

The concentration of oil and gas extraction workers varies widely by location. At the state level, Oklahoma and Wyoming have the highest concentrations of workers in oil and gas extraction at 7.7 and 6.7 times the national average respectively. Texas, with a relative concentration of 5.8 times the national average, boasts the largest number of total oil and gas workers of any state. Many states such as Hawaii, Maine, and Rhode Island don’t produce oil or natural gas and have no employees reported by the Census Bureau.

To find the metropolitan areas hit hardest by the drop in oil prices, researchers at Construction Coverage used data from the U.S. Census Bureau and the Bureau of Economic Analysis. The researchers ranked metro areas according to the relative concentration of employment in the oil and gas extraction industry. Researchers also looked at the total number of oil and gas extraction workers, the median earnings for those workers, and cost of living. To improve relevance and accuracy, only metropolitan areas with at least 100,000 people were included in the analysis.

Here are the 25 major U.S. metropolitan areas with the highest concentrations of oil and gas workers:

For more information, a detailed methodology, and complete results for all major metros and U.S. states, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-hit-hardest-by-drop-in-oil-prices

Report republished with permission