UN launches SE Asia energy transition initiative

: Electricity
26/02/25

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has launched a new regional initiative to accelerate the energy transition in southeast Asian countries, with initial funding of over $4mn.

The Energy Transition for Green Growth and Prosperity (ETGGP) is a three-year initiative that begins in 2026. Initial funds pledged so far amount to over $4mn from philanthropic foundations.

The initiative focuses on three key areas — supporting regional power connectivity through green power corridors; mobilising green finance to create enabling conditions, build investable pipelines and facilitate larger-scale capital flow; and analytical work to support long-term planning for energy, economy and industry.

The ETGGP will work with energy, finance, transport, environment and social development ministries, while also bringing together development partners and financial institutions to come up with policy solutions.

Through this initiative, the UN expects an improvement in policy co-ordination, greater investment readiness and better access to public and private finance for clean energy.

"The launch comes at a critical time," said UNESCAP, as the Asia-Pacific region accounts for around 60pc of global greenhouse gas emissions and 80pc of global coal supply.

The region's energy demand is expected to rise by about a third by 2035 and two-thirds by 2050, according to the IEA, with just under half of this demand growth to be met by fossil fuels.

The Association of Southeast Asian Nations last year endorsed a regional energy plan for 2026-30 targeting a 30pc share of renewables in the primary energy mix, and a 45pc share in installed power capacity by the end of this period.

A key part of this plan is the Asean power grid, with the bloc acknowledging the importance of creating green power corridors to ensure a secure and interconnected low-carbon energy future.

By Prethika Nair

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26/02/25

Rubio calls for Caribbean energy ties despite tensions

Houston, 25 February (Argus) — US secretary of state Marco Rubio strongly defended the US intervention in Venezuela to a gathering of Caribbean nations today, also calling for stronger energy ties in the region in comments delivered as Cuba reported a firefight with a US-flagged vessel. "I will tell you this without any apology or without any apprehension: Venezuela is better off today than it was eight weeks ago," Rubio told members of the Caribbean Community (Caricom) on Wednesday in a summit in St Kitts and Nevis. Caricom has 15 members and six associate members, but does not include Cuba or Venezuela. The US will continue to drive for fair, democratic elections in Venezuela, Rubio said, after leaving it in the hands of collaborators of former President Nicolas Maduro, whom the US captured on 3 January. The initial priorities of preventing mass migration and spillover violence in the wake of Maduro's seizure were achieved, he said. More broadly in the region, the US hopes to help ensure economic development and better access to energy, Rubio said. "Many of the countries represented here today have energy resources that I know you seek to explore responsibly, safely, but in a way that generates wealth and prosperity for your people and your countries, and we want to be your partner in that regard," Rubio said. Cuba confrontation The Caribbean meeting came as Cuba reported on the same day that it killed four of 10 passengers on a Florida-flagged speedboat that invaded its territorial waters and opened fire on an approaching Cuban coast guard vessel. The coast guard shot back, also wounding six of the passengers who are now receiving medical care, the interior ministry said. "Cuba ratifies its will to protect its territorial waters," the ministry said. The US has not confirmed the incident but it is "a situation we're monitoring, hopefully it's not as bad as we fear it could be. But I can't say more," vice-president JD Vance said on Wednesday afternoon. The ship was about one nautical mile offshore from the city of Corralillo on the northern coast of Cuba, according to Cuba's account. It had a hull identification number of FL7726SH, Cuba said. This indicates it was not likely a military vessel, which Florida's boat registration authority lists as exempt from state titling. By Carla Bass Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Kazakhstan thermal coal production falls in Jan

26/02/19

Kazakhstan thermal coal production falls in Jan

London, 19 February (Argus) — Kazakhstan's thermal coal production fell by 1.7pc on the year to 9.92mn t in January, in a slow start to 2026, but could receive a boost as the country plans major coal sector projects for the year. Coal production, including coking coal, dipped by a marginal 0.7pc year on year to 10.31mn t in January, data from National Statistics of Kazakhstan show. The decrease in coal production comes even as the country ramps up efforts to boost its coal sector including drafting up a national project for expanding coal-fired generation through to 2030, adding about 7.6GW of new and modernised capacity. Kazakhstan's thermal coal-fired power plants averaged consumption of about 55mn t/yr in 2023-24, according to previously disclosed figures from the energy ministry, but going forward the new projects will require an additional 16mn t/yr of coal. Bogatyr Komir, Kazakhstan's largest private-sector coal producer, plans to increase output from this year to 45.2mn t and up to 56.5mn t/yr through to 2032. The producer operates the country's largest Ekibastuz mine, which has reserves of 2.4bn t. Kazakhstan produced 115.9mn t of thermal coal in 2025, about 6.5pc higher on the year as consumption grew steadily last year. Kazakh coal offered at discounts in Europe Northwestern European buyers were heard to have received Kazakh-origin coal offers at wide discounts to the buoyant benchmark European API 2 index, market sources said, while icy weather conditions disrupted some shipments to Poland recently. Kazakh-origin NAR 5,850 kcal/kg minimum coal was heard offered at an $8-10/t discount to the API 2 to some German buyers as of last week, market participants said. A German trader was heard to have received an undisclosed volume of 0-8mm-sized coal of Kazakh origin from a Polish seller by rail, according to sources. But icy conditions at Baltic Sea ports recently have disrupted flows of Kazakh coal into Poland. Smaller 5,000-10,000t vessels, which is usually the standard import size for Polish buyers of Kazakh coal, were not suitable for transit in the snowy conditions. This has shifted import sizes to larger 30,000t vessels, limiting the number of Polish traders that would import Kazakh material, a supplier said. Poland's extended wintry conditions have ramped up consumption and depleted stockpiles rapidly and are likely to keep demand steady and buyers eager to replenish stocks even after the winter. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Spanish spot to deliver well below Feb expectations

26/02/19

Spanish spot to deliver well below Feb expectations

London, 19 February (Argus) — The Spanish spot index is set to deliver significantly below forward expectations in February owing to high wind generation during and following Storm Kristin, while heavy rainfall over the period has weighed heavily on March. The Spanish spot index averaged €12.66/MWh for delivery over 1-20 February, down sharply from an average of €116.88/MWh across the same period last year. The spot is on track to average about €18.85/MWh across the full month, based on its weighted average over 1-20 February as well as the latest assessments and trades for the weekend and week 9. This is well below the February contract's expiry at €50.55/MWh. Very high wind generation has weighed on the February spot index. As of today, wind output has averaged 11.2GW in Spain, up by about 123pc on the year and substantially higher than the 6.6GW average over the past three years. But looking forward, wind output over the remainder of February is expected to return closer to the norm, with average output of 6.9GW over the next eight days, according to data from global trade and analytics firm Kpler. Wind output has been particularly high owing to extreme weather conditions in February, especially at the beginning of the month when Storm Kristin brought extreme conditions to Spain and Portugal . The storm also brought exceptionally high rainfall, with hydro stocks in Spain recording three of their five highest ever week-on-week increases in the past three weeks . Despite the strong rise in hydro stocks, this has had little impact on output so far this month, with generation essentially equal to the level over the same period last year. But the extreme rise in hydro reserves in Spain has weighed strongly on the front-month contract. Since the storm hit Spain, March has shed €13.75/MWh, and is €21.65/MWh below where the equivalent contact was at this time last year. The record-breaking hydro stocks are particularly consequential for March, which has recorded the highest average output from the technology of any month in Spain in the past three years. Snowpack is also at record highs for the season, indicating that large volumes will continue to reach Spain's Ebro basin reservoirs when Pyrenean snowmelt begins, typically in mid-April. Gas-fired output has dropped in February, also contributing to low spot prices in Spain. Generation from combined-cycle gas turbines has dropped by about a quarter on the year to an average of just 3.6GW. This is also down by about 30pc from the 5.1GW average for the equivalent period of February over the past three years. February has also been marked by a significant divergence in Spanish and Portuguese spot prices. The Portuguese spot has cleared below the Spanish almost every day so far in February, and often by a sizeable margin. On average, there has been a daily price differential of €7.31/MWh between the two spot indexes, overwhelmingly with Spain at a premium. Across the same period of 2025, the average price differential was just €0.13/MWh, with the two spot indexes clearing at parity on 16 out of 20 occasions. Portugal has net exported to Spain across February at an average of about 580MW. This is the first month that Portugal has held a net export position to Spain since March 2024, and the first time this has occurred in February since 2021. Very high wind in Portugal so far in February — also in part owing to Storm Kristin — has supported Portuguese wind generation, which is up by about 130pc on the year and by more than 80pc compared with the three-year average. Portugal's hydro reserves currently stand at about 3.1TWh, equivalent to 94.1pc of total capacity. This is 18.7 percentage points higher than reservoir levels at the same point last year. Generation from hydro in Portugal has been low so far in February, averaging just 2.7GW, down by about a fifth from last year. Generation is likely to have to increase in the coming weeks in order to prevent overspill, or controlled releases, as was seen in Spain last year as reservoirs neared record capacity. By James Doran Spot price comparison ES-PT (1-20 Feb) €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

German car manufacturing sector power demand could fall

26/02/19

German car manufacturing sector power demand could fall

London, 19 February (Argus) — Power consumption in Germany's passenger vehicle manufacturing sector is set to fall given that overall output is likely to drop in the coming years, according to automotive association VDA chief economist Manuel Kallweit, as strong competition from China could outweigh any power demand uptick from electric vehicle (EV) production. Electricity consumption in the vehicle, trailer and semi-trailer manufacturing sector totalled 12.86TWh in 2024, according to national statistics office Destatis, equivalent to 2.8pc of total German electricity consumption in the year. Consumption in the sector has declined slowly since 2020, after falling more sharply in the previous years. And production over 2015-24 has fallen alongside a decline in consumption ( see consumption vs output graph ). VDA forecasts car production in 2026 to drop by 1pc from 2025 — when production totalled 4.15mn units, up by 2pc on the year but still 11pc below 2019 — to 4.11mn vehicles, while German car exports are forecast to decline by 1pc to 3.14mn vehicles. Chinese EVs pressure German market The electrification of vehicles is shifting the value chain of the automotive industry to Asia — and in particular China — with Europe unable to keep up with the redistribution of industrial value, Kallweit said. In addition, China's control over a large part of raw materials supply and processing, as well as the country's various subsidy schemes to support the EV industry, is threatening Europe's automotive industry. Nevertheless, VDA opposes EU intervention such as imposing tariffs on Chinese EVs and would rather the industry continues to face the issue "head on". China's share of global vehicle production rose to 34pc in 2024 from 28pc in 2019, while Europe's share declined by 4 percentage points to 19pc, according to European manufacturers' association ACEA data. Meanwhile, US tariffs on parts and vehicles would have placed a "heavy burden" on the EU automotive industry, while the speed at which tariff proposals are introduced also results in a "significant" impact. The US in mid-January threatened additional 10pc tariffs on goods imported from Germany and several other European countries. And India's recent reduction of tariffs on EU goods exported to India is a positive sign but not a solution to current challenges as the measure only produces long-term benefits, he said. Production capacity continues to fall The expected fall in German passenger car production in 2026 can be partially attributed to the end of vehicle production at US automaker Ford's Saarlouis factory in November last year, Kallweit said. German carmaker Volkswagen also ended vehicle production at its Dresden plant at the end of last year, while the firm plans to stop vehicle production at its Osnabruck plant in autumn 2027, and to reduce production capacity at its main Wolfsburg plant due to partial assembly line relocation to Mexico in the same year. And Volkswagen expects to reduce its German manufacturing capacity by 734,000 vehicles/yr by 2028, equivalent to roughly 40pc of its 2024 German output, although since it is "primarily" unused capacities being reduced, this does not necessarily mean the firm will build fewer vehicles, the company told Argus . EV boom unlikely to lift overall demand Production of EVs is increasing, against the overall trend, but this is unlikely to be enough to counteract the fall in internal combustion engine (Ice) vehicle manufacturing, Kallweit said. Of the 4.15mn passenger vehicles produced domestically in 2025, 1.67mn were EVs, up by 23pc on the year, while their share of total passenger vehicle production reached a new high at 40pc ( see EV graphs ). VDA forecasts domestic EV production to rise by 6pc in 2026 to 1.76mn vehicles. Kallweit expects Germany to "soon" produce more EVs than Ice vehicles. The recently approved €3bn in subsidies for private buyers will provide a "boost" to electromobility, and in particular to German manufacturers due to the lack of a price cap which would have favoured less expensive, non-German-produced vehicles, he said. But the subsidy targets a very small subsection of the market, he said, as only 30pc of EVs purchased in 2025 were privately owned, against 70pc commercial vehicles, while not all private buyers will qualify for subsidies. While EVs' share of German production will "significantly increase" in the coming years, this will not lead to an overall rise in production, he said. Meanwhile, Ice vehicle manufacturing will "simply have to" decline because of EU regulation, with only a few "premium" brands able to sell within the EU in the future, meaning the decline in Ice vehicle sales will outpace the expected increase in EV sales, he said. As a result, Kallweit expects overall passenger vehicle production to continue to remain "under pressure", with the current level maintained only in an "optimistic" scenario. All things considered — and excluding rising EV charging-sector electricity demand due to the replacement of Ice cars on the roads with EVs — a likely slow decline in German passenger vehicle manufacturing will result in falling automotive industry power consumption in the coming years. By Bea Leverett Number of cars built vs automotive sector power consumption TWh, mn China, Germany annual car exports mn Share of EVs in total domestic passenger vehicle production % German annual car output by fuel type mn Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan’s Jera eyes batteries to extend thermal power use

26/02/19

Japan’s Jera eyes batteries to extend thermal power use

Osaka, 19 February (Argus) — Japan's largest power producer Jera is considering wider use of storage batteries to help prolong the operation of its thermal power fleets. This system would cut the risk of malfunctions by reducing the number of start-stop cycles required for the units given the growing use of intermittent renewable energy. It remains unclear when, where and at what scale Jera will install battery storage systems. The company plans to assess the benefits of battery storage in 2026 by comparing them with the cost of repairing thermal plants, particularly gas-fired units, that break down because of frequent start-up and shutdown cycles, president Hisahide Okuda said on 18 February. Battery storage would have little value if it cannot reliably reduce cycling frequency, he added. Installation of storage batteries is typically required to back up weather-dependent renewable output such as solar and wind. But the need has grown even more because thermal plants have been forced to start up and shut down more frequently than expected in recent years given rising renewable generation. Jera recorded about 110 operational cycles at its coal-fired plants and roughly 12,500 cycles at its gas-fired units in the April 2024-March 2025 fiscal year, up by around 3½ times and 2½ times, respectively compared with 2014-15. An unexpected shutdown of thermal plants would pose risks to stable electricity supply, especially given the limited nuclear output in the Tokyo area and the absence of nuclear generation in the Chubu region, where Jera operates. The Tokyo area has only one reactor — the 1,356MW Kashiwazaki-Kariwa No.6 unit — in operation, which began test runs on 16 February after a 14-year hiatus following the 2011 Fukushima nuclear disaster. Thermal power plants would play a vital role in meeting the expected rises in electricity demand from data centres and in balancing fluctuations in renewable output. It is important to prevent thermal generators from breaking down and to ensure quick repairs when they do, for example by increasing inventories of critical materials, according to Okuda. Securing LNG with sufficient volumes, flexible contract terms and even under emergency-response arrangements will also be essential for continuing to operate gas-fired plants. Jera signed an initial agreement with state-owned QatarEnergy and Japan's trade and industry ministry Meti on 3 February to establish a trilateral co-operation framework that would enable the supply of additional LNG cargoes during emergency situations. This coincided with a 27-year supply deal with QatarEnergy to buy up to 3mn t/yr from 2028. The company also secured a combined 5.5mn t/yr from US suppliers in 2025, under destination-free contracts. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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