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Michael Holder, BusinessGreen
A new report from the International Renewable Energy Agency (IRENA) finds that “solar and wind power paired with battery storage systems are already delivering reliable, round-the-clock electricity at a lower cost than fossil fuel-dominated energy systems in a growing number of regions”, reports BusinessGreen. The outlet says “in regions with high levels of solar and wind generation, hybrid systems that combine intermittent renewable power generation with energy storage capacity are proving capable of delivering cost-effective electricity 24/7”. It adds: “The report calculates that firm levelised costs of electricity for solar plus storage projects range from around $54 to $82 per megawatt hour (MWh) in regions with high levels of solar generation potential. The costs compare favourably with levelised costs of $70 to $85/MWh for new coal-fired power generation providing round-the-clock power in China or more than $100/MWh for new gas-fired generation globally, the report states.” The New York Times and Reuters also cover the report.
Lauren Almeida, The Guardian
Oil prices have dropped after Donald Trump posted on social media that “the war with Iran would end and the strait of Hormuz would be ‘open to all’ if Tehran struck a deal with Washington”, reports the Guardian. BBC News says that oil prices fell from $108 per barrel to $97 following Trump’s announcement before rebounding to more than $101. It adds: ”Oil prices are still much higher than the $70 a barrel they were hovering around before the start of the US-Israel war with Iran, which has caused production and transportation of oil in the region to slump.” Reuters reports that oil has risen by more than $1 today.
A separate Reuters article says: “Oil supplies are set to tighten further in coming weeks even if the US and Iran agree on a peace deal to end their war because it will take weeks for oil shipments to resume from the Middle East Gulf and reach refiners worldwide – so oil companies will continue to deplete storage tanks to meet peak summer demand.” The New York Times reports that “economic pain inside Iran” is “becoming much worse”. It says: “The blockade has halted Iran’s oil exports, choking off crucial revenues and the country risks running out of places to store its oil.” The Daily Telegraph says that “Iraq has offered to cut the price of crude oil by more than a quarter for shipping companies prepared to risk travelling through the Strait of Hormuz to collect it”. The Guardian reports that “uncertainty looms” as the last oil tanker from the Middle East arrives in California.
MORE ON OIL AND GAS
The Independent reports that the price of gasoline in the US is now 51% higher than before the war in Iran started. The New York Times says the higher prices are “hitting lower-income Americans the hardest”. Bloomberg reports that Lufthansa is considering adding refuelling stops to direct flights, as a result of fuel shortages. The airline warns that “some major airports have already begun to run out of jet fuel”, adds the Daily Telegraph. The Financial Times: “US fuel exports have surged to a record level as Europe and Asia lean on American energy supplies to make up for the shortfalls caused by the war in Iran.” Reuters reports that “major US passenger airlines spent just over $5bn on jet fuel in March, up $1.8bn or 56% from what they spent in February”. Bloomberg reports that OPEC’s crude oil production fell to a new 36-year low last month. The Guardian: “Shell has reported better than expected profits of $6.9bn (£5bn) after its oil traders reaped the benefits of soaring energy prices during the war in Iran, angering climate campaigners.” BBC News, the Financial Times, Wall Street Journal and Reuters also report on the company’s profits.
Ben Munster, Politico
The European Commission is “considering giving fossil-fuel companies leeway to avoid penalties under new rules governing the emissions of methane”, due to the ongoing energy crisis, reports Politico. The outlet adds: “According to draft guidelines for governments, seen by Politico, national authorities would be able to grant exemptions to companies on energy security grounds, without any clear time limit or explicit oversight from the Commission.” The Financial Times says the Commission has come under “intense pressure from US and the fossil-fuel industry” to dilute the rules on “monitoring, reporting and verification for methane leaks and flaring tied to fossil fuel imports”. It adds: “In the latest draft guidance to national bodies, which will enforce the rules from January 2027, the Commission says that applying penalties during a crisis could ‘worsen the security of supply situation, endangering continuity’”. Reuters adds: “The EU methane law requires that, from January 2027, imported gas must comply with monitoring and verification rules equivalent to Europe's. Penalties for breaching the law include fines up to 20% of a company's annual turnover.”
MORE ON EUROPE
The Guardian reports that the Norwegian government has been “heavily criticised for approving plans to reopen three North Sea gasfields nearly three decades after they were closed to help fill the gap in energy supplies created by the Middle East war”. The Wall Street Journal has a story under the headline: “Europe wants to stop deforestation. A new trade deal is putting that under strain.” Dutch climate minister Stientje van Veldhoven has told Politico that “rising energy prices show why Europe must cut reliance on fossil fuels”. The Financial Times: “Airlines must continue to reimburse passengers for flight cancellations caused by high energy prices, the EU’s transport chief has warned, rejecting claims of jet fuel shortages in Europe.”
CGTN
China is accelerating “major oil and gas infrastructure” to secure energy supply, with nearly 40 pipelines underway across the country, according to the state broadcaster CGTN. State news agency Xinhua also covers the story, saying that China is “steadily advancing major trunk pipelines, gas storage and peak-shaving projects” as the 15th five-year plan period begins. These projects will “continue to strengthen” the national oil and gas transmission network and “lay a solid foundation” for building a “strong energy nation”, adds the newswire.
MORE ON CHINA
Zheng Shanijie, head of the NDRC, writes in the “political theory” journal Qiushi that China should ensure that “incremental electricity demand” is met by new clean-energy generation. China’s Ministry of Industry and Information Technology calls for local authorities to provide tax incentives to enterprises that meet “green and low-carbon standards”, reports Jiemian. China’s highway charging for electric vehicles (EVs) during this year’s May Day holiday rose 52.8% year-on-year, reports CEPN, citing data from the NEA. Sales of electric trucks in China are “taking off” amid the Iran war, reports Bloomberg. Bloomberg says China’s copper exports, used in low-carbon technologies such as batteries, are set to get a boost due to the Middle East conflict. France has announced new rules to cut dependence on Chinese rare earths to “safeguard” sectors such as EVs and offshore wind, reports Bloomberg.
Fiona Harvey, The Guardian
In the run-up to the various elections taking place across the UK today, the Guardian reports that “the UK’s soaring cost of living” will be the “defining issue”. According to the newspaper, “green campaigners” have warned that “voters should be told about the links between inflation and the effects of fossil fuels and the climate crisis – or the remedies they choose – may make the situation worse”. The newspaper says: “[Reform UK] takes an anti-climate stance and has vowed to encourage fracking, impose punitive taxes on renewable energy generation, and block solar and windfarms. The Conservatives have also embraced more drilling in the North Sea and played down the climate crisis, without explicitly denying it.” It adds that there are “about 1,800 seats where the Green party has a chance of winning, though many of these could be wins from Labour, which also has strong policies on boosting renewable energy and green solutions to ease the cost of living crisis”.
The Independent reports that Gillian Mackay, the co-leader of the Scottish Greens, has said her party is the only one “‘prepared to tell the truth’ about the need to end new oil and gas drilling in the North Sea”. It adds: “The party co-leader said her opponents had to be ‘honest’ with voters that further fossil-fuel extraction in the North Sea would ‘do nothing to lower bills’.” [See Carbon Brief’s recent factcheck: “Nine false or misleading myths about North Sea oil and gas.”]
MORE ON UK
The Guardian: “Cut UK speed limits to reduce Iran war impact on consumers, thinktank urges.” Financial Times: “Fusion start-up backed by Bill Gates plans UK’s first commercial plant.”
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