World Bank backs Pakistan, India clean energy projects

Spanish Market: Electricity
10/07/26

The World Bank has approved financing for clean energy projects in Pakistan and India, backing grid upgrades in Pakistan to improve renewable energy integration and rooftop solar deployment in India to expand residential clean energy adoption.

The World Bank's Board of Executive Directors approved $375.9mn in financing on 9 July for Pakistan's Grid Stability Enhancement Project under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) programme — the first phase of a 10-year initiative to modernise the country's power grid.

The project will install Static Synchronous Compensators (STATCOMs), used to regulate voltage and improve grid stability, at three 500kV substations, along with fixed reactors and capacitor banks across 26 grid substations. The upgrades are expected to bring 640MW of currently curtailed wind generation onto the grid, enable the full use of 1,840MW of wind capacity in southern Pakistan, and support the integration of around 491MW of planned private sector-led renewable energy projects.

The World Bank has also approved an $890mn financing package for India's flagship residential rooftop solar programme — PM Surya Ghar — comprising an $820mn International Bank for Reconstruction and Development (IBRD) loan, a $60mn concessional loan from the Clean Technology Fund and a $10mn grant from the Livable Planet Fund. The package is expected to mobilize around $4.2bn in private capital for residential rooftop solar installations.

The financing comes as India ramps up investment in its energy transition, with government think-tank Niti Aayog estimating the country will need $22.7 trillion in cumulative investment by 2070 to achieve net-zero emissions.

India plans to install rooftop solar systems across 10mn households through the programme. Over the past decade, the programme has helped India to expand rooftop solar capacity from around 500MW to more than 27GW, the World Bank said. India has 30.11GW of grid-connected rooftop solar capacity as of 30 June, according to the Ministry of New and Renewable Energy.

By Keertiman Upadhyay

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10/07/26

Brazil’s inflation slows to 4.64pc in June

Sao Paulo, 10 July (Argus) — Brazil's inflation slowed to an annual 4.64pc in June, with lower motor fuel prices helping offset higher electricity bills. The consumer price index IPCA decelerated from 4.72pc in May , national statistics agency IBGE said on Friday, after accelerating from 4.39pc in April. Housing costs, appointed as the largest contributors to the monthly gain in the index in June, decelerated to 5.85pc from 6.22pc a month earlier, mostly thanks to electricity bills and tax readjustments for power supply in some southern states. Food and beverage costs, which weigh heavily on the index, contributed the most with the monthly decrease in the IPCA, decelerating to an annual 3.82pc in June from 3.87pc in May. Lower prices for coffee, fruits and meat drove the result, IBGE said. Transport costs slowed to 3.95pc in the month from 4.05pc in May. Lower prices for ethanol, diesel, gasoline and compressed natural gas (CNG) weighed on motor fuel costs, despite an increase in airfares. The annual gain for June was down from 5.35pc in June 2025. Inflation expectations, as calculated by the central bank's Focus survey, remain above target at 5.3pc for 2026 and recently ticked up to 4.18pc for 2027. Brazil's central bank lowered its target rate to 14.25pc in June. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

South Korea launches first coal-to-clean energy project

08/07/26

South Korea launches first coal-to-clean energy project

London, 8 July (Argus) — South Korea has launched its first project to transform a retired coal-fired power plant into a renewable energy hub, as part of its efforts to accelerate the country's clean energy transition . South Korea's state-owned utility Korea Western Power (Kowepo) signed a joint development agreement with renewable energy developer Vena Energy and Copenhagen Infrastructure Partners for its Taean offshore wind project, it said today. Kowepo will build a 500MW offshore wind farm in Taean county, with operations scheduled to begin in 2029. The wind farm will operate for about 25 years and reuse the grid infrastructure of the retired Taean 1 coal-fired plant . The project is expected to create new jobs and help boost the regional economy, Kowepo said. It is also expected to serve as the first phase of the utility's 1.4GW offshore wind cluster in Taean . The South Korean government will continue pursuing its target of deploying 10.5GW of offshore wind capacity by 2030, climate and energy minister Kim Sung-hwan said. Kim described the Taean project as a good example of a " just transition " and said the government would continue supporting similar projects through policy measures. The project comes as South Korea's state-run power utilities are stepping up preparations for the country's coal phase-out. Korea Southern Power (Kospo), for example, last week launched a joint study with climate and energy ministry Mcee and other fellow state-run utilities on repurposing retired coal-fired power assets and workforce. By Dayu Park Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

El Nino to hit India hardest as power use surges: CREA

08/07/26

El Nino to hit India hardest as power use surges: CREA

Mumbai, 8 July (Argus) — India may need to produce an extra 17.7TWh of electricity from fossil fuels over the next year if a developing El Nino boosts cooling demand and cuts wind and hydropower output, according to a report by energy think-tank Centre for Research on Energy and Clean Air (CREA). Higher temperatures linked to El Nino are expected to add around 10TWh to cooling-related power demand during July 2026-June 2027, while weaker wind speeds and lower hydropower output could increase the generation shortfall to 17.7TWh, the 6 July report said. If the shortfall is met primarily by coal-fired power plants, the power sector could emit an additional 17mn t of CO2 over the period. Under a more severe scenario, the generation deficit could widen to 24TWh, CREA said. India's energy system is likely to face the strongest impact globally, as El Nino is expected to cut wind and hydropower output while increasing cooling-related power demand, CREA said. The report comes as India's thermal power fleet is already operating at elevated levels. Coal and other thermal power stations generated 122.37TWh of electricity in June, up by 12.5pc on year, while average thermal plant load factor rose to 72.3pc from 66.6pc in June 2025, according to Central Electricity Authority (CEA) data. Coal-fired generation accounted for around 86pc of conventional electricity produced last month. Coal consumption at power plants remained robust, with generators consuming 2.34mn t of coal on 6 July while maintaining stocks of 43.05mn t, according to the CEA's daily coal stock report. Hydropower generation fell by about 20pc on the year to 13.36TWh in June from 16.78TWh in June 2025, while nuclear generation rose to 5.55TWh from 4.50TWh over the same period. Hydropower generation has already weakened as below-normal monsoon rainfall affected water availability, with the India Meteorological Department reporting a 42pc cumulative rainfall deficit during 1-24 June. India's installed power generation capacity stood at 543.1GW in early July, comprising 251.5GW of thermal capacity, 230.8GW of renewable energy, 52.1GW of hydropower and 8.8GW of nuclear, National Power Portal data show. Including small hydropower projects, the country's total hydropower capacity exceeds 56GW, according to government data. India added 44.6GW of solar capacity in 2025, nearly doubling from the previous year, data from CREA show. Quicker deployment of battery energy storage systems (Bess), more flexible grids and higher solar generation would be key to cutting reliance on fossil-fuel power when renewable output weakens. The government issued guidelines for small hydropower projects under a 25.85bn rupees ($272mn) programme aimed at supporting the sector in June. The projected El Nino will test India's power system as extreme weather becomes more common, with Bess deployment and grid modernisation likely to shape its resilience to future climate shocks, CREA said. By Keertiman Upadhyay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Singapore, Indonesia reaffirm power trade co-operation

07/07/26

Singapore, Indonesia reaffirm power trade co-operation

Singapore, 7 July (Argus) — Singapore and Indonesia on 6 July signed deals aimed at strengthening their commitment to collaborating on cross-border electricity trade. Representatives from the two countries signed multiple agreements during the Singapore-Indonesia leaders retreat in Jakarta, Indonesia, with cross-border electricity trade being the main focus of discussions. Indonesia has appointed sovereign wealth fund Danantara Indonesia to lead cross-border power trade with Singapore, Singapore's Ministry of Trade and Industry and Danantara said in a joint statement. Danantara, through its investment arm Danantara Investment Management, signed two memoranda of understanding (MoUs) with Singapore's electricity retailer Keppel Electric and energy firm Sembcorp Utilities to explore co-operating on the offtake of low-carbon electricity imports. Danantara has also signed an MoU with Singapore Energy Interconnections (SGEI) to facilitate information sharing and co-operation on the commercial and technical aspects of cross-border interconnector development. Ministers from the two countries "[look] forward to the materialisation of 3.4GW or more of projects by 2035 on a commercial basis", the joint statement said. These projects are aimed at advancing energy connectivity and decarbonisation for both countries, including by accelerating investments in Indonesia's clean energy sector. The countries will work on their respective regulatory frameworks, policies and requirements to enable cross-border electricity trade and investment. The latest discussions build on agreements signed by the countries last year on cross-border electricity trade, carbon capture and storage, and setting up a joint sustainable industrial zone. A key issue that remains is electricity pricing, and negotiations on this aspect are not yet completed, Indonesia's energy ministry (ESDM) said on 7 July. Under Indonesia's current regulations, the government has the authority to set prices. Indonesia is seeking an arrangement that opens energy export opportunities, as well as provides balanced economic benefits for both countries, the ESDM said. Singapore and Indonesia said they will also develop a cross-border Renewable Energy Certificate (REC) framework to track power trade ahead of physical electricity delivery. Singapore businesses already use regional RECs to match power consumption with procured renewable electricity. But these RECs cannot be used for claims under corporate standards such as RE100, which requires sourcing of renewable power within the same market as companies' operations — or where physical interconnections exist. Singapore published a draft cross-border REC framework last year that focused on using bilateral work to harmonise standards with partner countries. The Asean Centre for Energy is also working on a broader system meant to align standards across the region. Participants expect regional RECs recognised under an eventual cross-border framework with Singapore to command a premium to standard contracts. Argus assessed current-year Singapore solar I-RECs at $23.50/MWh last week, while Indonesian current-year solar I-RECs were recently offered at under $3.50/MWh. Indonesia is seeking to diversify its energy sources and reduce its reliance on fossil fuels by accelerating the development of renewable energy. Indonesia's president Prabowo in March ordered the construction of 100GW of solar power to "implement the electrification of renewable energy from solar power in the shortest possible time". By Prethika Nair and Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany mulls 2045 climate neutrality in building law

06/07/26

Germany mulls 2045 climate neutrality in building law

London, 6 July (Argus) — Germany's federal government has proposed an amendment to the country's Building Modernisation Act (GModG), targeting the use of only climate-neutral fuels in the building sector by 2045 through a green gas and heating oil quota. The amendment introduces section 42a, requiring the introduction of a new law by 1 December to oblige heating oil and gas suppliers to gradually switch to climate-friendly fuels — renewable or low-carbon — so that by 2045 only these are used to heat buildings. The draft law does retain the "biotreppe" (bio-ladder) framework, with a rising share of climate-neutral sources in new heating installations starting at 10pc in 2029, and continuing to 15pc in 2030, 30pc in 2035 and 60pc in 2040. Biomethane, bio-oil, biogenic liquefied petroleum gas and green, blue, orange and turquoise hydrogen, including derivatives, count towards the quota. The amendment defines bio-oil for the first time. Although the bio-ladder ends with a 60pc share in 2040, the new green gas and heating oil quota would make fossil-fuel heating virtually impossible from 2045. A wider range of options are also being considered to meet the quota, including green fuels, solar thermal systems and ventilation systems with heat recovery. Hybrid systems combining a heat pump and fossil-fuel boiler can also qualify under certain technical conditions. The amendment contains detailed rules around documentation. Company declarations as well as expert reports will count as proof of compliance. Energy suppliers must confirm on invoices that fuels meet legal requirements. Documents must be kept for years and made available to authorities on request. The draft GModG had drawn criticism in recent months . The Left party announced that it had filed an urgent complaint with the Federal Constitutional Court on 3 July to block the law before the summer recess because of the speed of the process, despite missing information on the law's impact. The government plans to pass the law this week in second and third readings before the summer recess, but it is not yet on the Bundestag's public agenda. By Svea Winter Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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