RIYADH: Unprecedented events are shaking up the energy sector on a macro and micro level. The sector is in flux as supply and prices bear down while the transition to greener energy gains momentum.
Looking at the Bigger Picture:
·Europe expects a $1 trillion energy bill in 2022 due to the hyperinflation in power and natural gas prices rippling across the continent, Bloomberg reported.
Unlike previous peaks which were attributed to surging oil prices, this one is primarily associated with the cost of heating households and powering renewable plants instead.
·The US government is to hold the largest sale in its history of offshore wind farm rights off New York and New Jersey in a swift clean energy push, Bloomberg reported.
As part of the accelerated energy push plan, the Biden administration also intends on building power transmission lines to fuel the country with sustainable electricity.
Through a micro lens:
·Kazakhstan's Prime Minister Alikhan Smailov signed a decree on Monday recalling a bill that had sanctioned a $6 million green energy deal with Abu Dhabi-based holding companies ADQ and Taqa, Reuters reported.
Despite scepticism from industry analysts upon the announcement of the deal last month as it was not followed by viable bidding, the reason behind this move has not been disclosed yet.
·Specializing in renewable energy production, EDF renewables UK, has created a strategic partnership with Irish renewable energy development corporation, DP energy, to produce as much as one gigawatt of wind power from a floating offshore wind project in the Celtic Sea, Reuters reported.
The project is anticipated to generate enough electricity to cater to an estimated 927,400 homes in the region.
