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Malaysia launches first grid-connected BESS
Malaysia launches first grid-connected BESS
Singapore, 18 May (Argus) — Malaysia's national grid operation Tenaga Nasional Berhad (TNB) launched the country's first grid-connected battery energy storage system (BESS) today. TNB installed the 100MW/400MWh BESS at its 132/33kV Santong main input substation, located in Dungun, Terengganu. The facility is part of Malaysia's national energy transition roadmap. The new BESS will strengthen the national grid system's stability and reliability, provides faster response to supply-demand imbalances, support peak load management, and enables greater solar energy integration, TNB said. The global BESS market has grown far above expectations in the past few years, with annual deployments rising by 63pc last year to above 300GWh. The roll out of variable renewable energy such as solar energy is a major driver behind the growth in BESS capacity. Global BESS additions are expected to exceed 400GWh this year, according to forecasts by Argus Consulting. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Honda pulls back from EVs due to 'consumer trends'
Honda pulls back from EVs due to 'consumer trends'
London, 14 May (Argus) — Japanese automaker Honda has abandoned its long-standing target to transition entirely to battery electric (BEV) and fuel-cell vehicles by 2040 because of "consumer trends", marking a major retreat from one of the industry's most ambitious electrification strategies. The firm is scrapping its goal for EVs to account for 20pc of sales by 2030 and its commitment to exclusively sell BEVs and fuel-cell vehicles by 2040, as weaker-than-expected EV demand and mounting losses have prompted the company to pivot back towards hybrid vehicles, chief executive Toshihiro Mibe said. Changing consumer trends were a key factor in the decision, as well as severe political upheaval since the beginning of the decade, Honda's head of government affairs, Patrick Keating, said at the FT Future of the Car Summit on 14 May. "Given the slower uptake, changing consumer demands and the focus on hybrids, the announcement this morning is moving away from a technology target to a target that's more about total, lifetime CO2 emission reductions and leaning towards where the consumer is going, which is hybrid," he said. Some regions are reconsidering emissions targets in light of global upheaval, he added. "The EU CO2 targets and UK ZEV [zero-emission vehicle] mandate which we talked about for 2035 were set very much in a different time. Once those targets were set, we then had Ukraine, a new radically different administration in the US, which has global impact." Honda's reversal comes as it reported its first annual loss since listing in 1957. The company posted a net loss of ¥423.9bn ($2.7bn) for the financial year ended March 2026, which was largely driven by more than $9bn in EV-related write-downs and restructuring costs tied to cancelled or delayed electrification projects. Vehicle sales also weakened, with Honda's global automobile deliveries falling to 3.4mn units from 3.7mn units a year earlier, reflecting slowing EV demand and intensifying competition, particularly in China. Honda is now shifting its near-term strategy towards hybrid vehicles, aiming to capitalise on stronger hybrid demand in North America and other key markets. The company signalled this direction in late 2024, when it announced plans to double hybrid sales by 2030 as a "bridge" to full electrification. The company also confirmed it will indefinitely suspend plans to build a comprehensive EV value chain in Canada, a project originally announced in April 2024 and valued at around C$15bn ($11bn). The plan included EV assembly, battery production and battery material processing facilities intended to strengthen Honda's North American EV supply chain. Honda had initially delayed the project by two years in May 2025 because of slower EV demand, but has now moved to suspend the investment indefinitely. By Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU eyes deducting carbon credits under CBAM
EU eyes deducting carbon credits under CBAM
London, 13 May (Argus) — Domestic and Paris Agreement-aligned international carbon credits used to pay for emissions in non-EU countries could be counted towards a carbon price already paid on an import's emissions under the bloc's carbon border adjustment mechanism (CBAM), under proposals published by the European Commission today. Under the CBAM regulation, declarants can claim a reduction in the CBAM certificates they must surrender for emissions embedded in imported goods if a carbon price has already been paid in the country of origin. In a draft implementing act published for consultation today, the commission proposed including all forms of compliance options allowed in the relevant country in the calculation, including carbon credits. Claiming this reduction should be allowed "irrespective of whether the mitigation activities linked to the carbon credit takes place domestically or outside the domestic jurisdiction", according to the draft implementing regulation. But while domestic credits could be counted with no additional criteria, only international credits issued under Article 6 of the Paris Agreement should be counted, the commission proposed. "This criterion should promote the development of Article 6 credits and provide the quality assurance necessary to ensure the environmental integrity of CBAM," it said. Counting international credits as a carbon price already paid on CBAM goods should also be limited to 10pc of the reported emissions to incentivise domestic emissions cuts, the commission said. Any rebates or compensation received by installations covered by carbon pricing should also be factored in, the commission proposed, including free allowances or other exemptions. The carbon price could have been paid on direct, indirect or precursor emissions, under the draft. The commission may publish default carbon prices for relevant countries, it said. And it proposed publishing a yearly reference price for CBAM certificates to be used in the calculation of the deduction. The price paid in the non-EU country would be based on either a yearly average primary or secondary market price or individual records of payment, converted to euros based on yearly average exchange rates. The regulation would apply from 1 January this year. The consultation closes on 10 June. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US producer inflation surges by 6pc in April
US producer inflation surges by 6pc in April
Houston, 13 May (Argus) — Prices paid to US producers surged by an annual 6pc in April, the biggest gain since December 2022, spurred by rising energy costs triggered by the Mideast Gulf war. The producer price index (PPI) gained from an upwardly revised 4.3pc in March, according to the Bureau of Labor Statistics. Prices rose by 3.4pc in February and by 3.1pc in January and were at 2.4pc in April last year. The PPI report comes one day after BLS reported that the consumer price index rose by an annual 3.7pc in April , the biggest gain in nearly three years. The PPI report shows more inflation is in the pipeline, triggered by the Mideast Gulf war that started on 28 February. "Stickier core inflation from AI buildout, passthrough from the oil price shock, and lingering tariff effects will keep the Federal Reserve at bay for most of 2026," Oxford Economics said in a note. "Eventually, we expect higher energy prices will feed through to weaker consumer spending and a softer labor market, prompting the Fed to deliver its next rate cut in December." Prices for energy rose by 22.7pc in April from a year prior following 11.2pc originally reported the prior month, BLS said. Energy for export rose by 50pc after an 18.6pc gain. Core producer prices, excluding volatile energy and food, rose by 5.2pc in April after a 3.8pc gain the prior month. Prices for goods rose by an annual 7.4pc in April, led by gasoline, compared with 4.9pc originally reported the prior month Services rose by 5.5pc, partly led by margins for trade services, after a gain of 3.7pc. Food rose by 2.2pc in April after a 1.6pc gain the prior month. Transport and warehousing services rose by 12.2pc after a 6.1pc gain the prior month. Transportation of passengers rose by 11pc after a 7.5pc gain in March. On a monthly basis, seasonally adjusted PPI rose by 1.4pc in April following a 0.7pc monthly gain in March and 0.6pc gains each of the prior two months. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.