Quote of the day…

…Undoubtedly, to China, the forgotten ally of the West during World War II, also, this undesirable situation is squeezing his shoes leaving them serious wounds in their public treasury, hopefully, and so, by necessity or common sense, the economic giant of the East will awaken to the damage that this context is causing in its own economy and will use the magic key.

NATURAL GAS IS THE NEW “RUSSIAN WINTER” AS A WAR ELEMENT…GERMAN & CO, SEPTEMBER 9, 2022

Most read…

China calls for peace talks between Russia and Ukraine

China made the comments in a 12-point paper on the 'political settlement' of the crisis, timed to coincide with the one-year anniversary of Russia's invasion of Ukraine.

  LE MONDE WITH AP AND AFP

‘If we refuse to use them, why do we have them?’

A third nuclear age may be dawning in Ukraine

The first nuclear age was marked by deterrence, the second by hopes that nuclear weapons might be eliminated. The war in Ukraine may herald a third nuclear age, much more dangerous and uncertain than what came before.

  LE MONDE DIPLOMATIQUE BY OLIVIER ZAJEC

The U.S. Has Billions for Wind and Solar Projects. Good Luck Plugging Them In

An explosion in proposed clean energy ventures has overwhelmed the system for connecting new power sources to homes and businesses.

  NYT BY BRAD PLUMER

New French fund with 87.5 mln euros targets African solar development

The AFRIGREEEN Debt Impact Fund's first closing will finance on- and off-grid solar power plants for small- and medium-sized commercial and industrial consumers across the continent, the statement said.

  REUTERS

  CNBC.COM, ANMAR FRANGOUL

  PUBLISHED MON, JAN 23 

AES chief says we’ll need natural gas for next 20 years

From the United States to the European Union, major economies around the world are laying out plans to move away from fossil fuels in favor of low and zero-carbon technologies.

It’s a colossal task that will require massive sums of money, huge political will and technological innovation. As the planned transition takes shape, there’s been a lot of talk about the relationship between hydrogen and natural gas.

During a panel discussion moderated by CNBC’s Joumanna Bercetche at the World Economic Forum in Davos, Switzerland, the CEO of energy firm AES offered up his take on how the two could potentially dovetail with one another going forward.   

“I feel very confident in saying that, for the next 20 years, we need natural gas,” Andrés Gluski, who was speaking Wednesday, said. “Now, what we can start to do today is … start to blend it with green hydrogen,” he added.

“So we’re running tests that you can blend it up to, say 20%, in existing turbines, and new turbines are coming out that can burn … much higher percentages,” Gluski said.

“But it’s just difficult to see that you’re going to have enough green hydrogen to substitute it like, in the next 10 years.”

Change on the way, but scale is key

The planet’s green hydrogen sector may still be in a relatively early stage of development, but a number of major deals related to the technology have been struck in recent years.

In December 2022, for example, AES and Air Products said they planned to invest roughly $4 billion to develop a “mega-scale green hydrogen production facility” located in Texas.

According to the announcement, the project will incorporate around 1.4 gigawatts of wind and solar and be able to produce more than 200 metric tons of hydrogen every day.

Despite the significant amount of money and renewables involved in the project, AES chief Gluski was at pains to highlight how much work lay ahead when it came to scaling up the sector as a whole.

The facility being planned with Air Products, he explained, could only “supply point one percent of the U.S. long haul trucking fleet.” Work to be done, then.

Seaboard: pioneers in power generation in the country

Armando Rodríguez, vice-president and executive director of the company, talks to us about their projects in the DR, where they have been operating for 32 years.

  SOURRCE BY MERCADO DOMINICAN REPUBLIC, 28 JUNE 2022

More than 32 years ago, back in January 1990, Seaboard began operations as the first independent power producer (IPP) in the Dominican Republic. They became pioneers in the electricity market by way of the commercial operations of Estrella del Norte, a 40MW floating power generation plant and the first of three built for Seaboard by Wärtsilä.

Armando Rodríguez, vice president and executive director of Seaboard, joins us for this Mercado Interview to talk about the company's contributions to the Dominican Republic's electricity sector. "Our plants have been strategically located by the authorities of the electricity sector to make it possible to reduce blackouts in Santo Domingo and save foreign currency for all Dominicans," he explains.

Cooperate with objective and ethical thinking…

China calls for peace talks between Russia and Ukraine

China made the comments in a 12-point paper on the 'political settlement' of the crisis, timed to coincide with the one-year anniversary of Russia's invasion of Ukraine.

  LE MONDE WITH AP AND AFP, PUBLISHED ON FEBRUARY 24, 2023 AT 04H06

China, a firm Russian ally, has called for a cease-fire between Ukraine and Moscow and the opening of peace talks as part of a 12-point proposal to end the conflict.

The plan issued on Friday, February 24, by the Foreign Ministry also urges the end of Western sanctions imposed on Russia, measures to ensure the safety of nuclear facilities, the establishment of humanitarian corridors for the evacuation of civilians, and steps to ensure the export of grain after disruptions caused global food prices to spike.

China has claimed to be neutral in the conflict, but it has a "no limits" relationship with Russia and has refused to criticize its invasion of Ukraine over even refer to it as such, while accusing the West of provoking the conflict and "fanning the flames" by providing Ukraine with defensive arms.

China and Russia have increasingly aligned their foreign policies to oppose the US-led liberal international order. Foreign Minister Wang Yi reaffirmed the strength of those ties when he met with Russian President Vladimir Putin during a visit to Moscow this week.

China has also been accused by the US of possibly preparing to provide Russia with military aid, something Beijing says lacks evidence. Given China's positions, that throws doubt on whether its 12-point proposal has any hope of going ahead – or whether China is seen as an honest broker.

US reserving judgment

Before the proposal was released, Ukrainian President Volodymyr Zelensky called it an important first step. "I think that, in general, the fact that China started talking about peace in Ukraine, I think that it is not bad. It is important for us that all states are on our side, on the side of justice," he said at a news conference Friday with Spain's prime minister.

US State Department spokesman Ned Price said earlier Thursday that the US would reserve judgment but that China’s allegiance with Russia meant it was not a neutral mediator. "We would like to see nothing more than a just and durable peace ... but we are skeptical that reports of a proposal like this will be a constructive path forward," he said.

Price added that the US hopes "all countries that have a relationship with Russia unlike the one that we have will use that leverage, will use that influence to push Russia meaningfully and usefully to end this brutal war of aggression. (China) is in a position to do that in ways that we just aren’t."

The peace proposal mainly elaborated on long-held Chinese positions, including referring to the need that all countries' "sovereignty, independence and territorial integrity be effectively guaranteed." It also called an end to the "Cold War mentality" – it's a standard term for what it regards as US hegemony and interference in other countries.

"A country’s security cannot be at the expense of other countries’ security, and regional security cannot be guaranteed by strengthening or even expanding military blocs," the proposal said. "The legitimate security interests and concerns of all countries should be taken seriously and properly addressed."

'Resume direct dialogue asap'

China abstained Thursday when the UN General Assembly approved a nonbinding resolution that calls for Russia to end hostilities in Ukraine and withdraw its forces. It is one of 16 countries that either voted against or abstained on almost all of five previous resolutions on Ukraine.

The resolution, drafted by Ukraine in consultation with its allies, passed 141-7 with 32 abstentions, sending a strong message on the eve of the first anniversary of the invasion that appears to leave Russia more isolated than ever.

While China has not been openly critical of Moscow, it has said that the present conflict is "not something it wishes to see," and has repeatedly said any use of nuclear weapons would be completely unacceptable, in an implied repudiation of Putin’s statement that Russia would use "all available means" to protect its territory.

"There are no winners in conflict wars," the proposal said. "All parties should maintain rationality and restraint ... support Russia and Ukraine to meet each other, resume direct dialogue as soon as possible, gradually promote the de-escalation and relaxation of the situation, and finally reach a comprehensive ceasefire," it said.

‘If we refuse to use them, why do we have them?’

A third nuclear age may be dawning in Ukraine

The first nuclear age was marked by deterrence, the second by hopes that nuclear weapons might be eliminated. The war in Ukraine may herald a third nuclear age, much more dangerous and uncertain than what came before.

  LE MONDE DIPLOMATIQUE BY OLIVIER ZAJEC

…A third nuclear age may be dawning in Ukraine?

On 11 March, President Joe Biden sharply rejected politicians’ and experts’ calls for the United States to get more directly involved in the Ukraine war, ruling out direct conflict with Russia: ‘The idea that we’re going to send in offensive equipment and have planes and tanks and trains going in with American pilots and American crews — just understand ... that’s called World War III’ (1). He nonetheless accepted war was possible if the Russian offensive spread to the territory of a NATO member state.

Thus a distinction was established between NATO’s territory (inviolable) and the territory of Ukraine, which falls into a unique geostrategic category: according to the US, maintaining this distinction will require an accurate understanding of the balance of power between the belligerents on the ground, strict control of the degree of operational involvement of Ukraine’s declared supporters (especially concerning the nature of arms transfers to Ukraine) and, above all, continual reassessment of the limits of Russia’s determination — all with a view to leaving room for a negotiated way out acceptable to both Russia and Ukraine. Some trace the US’s caution back to a statement by Russia’s president Vladimir Putin on 24 February: ‘No matter who tries to stand in our way or ... create threats for our country and our people, they must know that Russia will respond immediately, and the consequences will be such as you have never seen in your entire history.’ These words, and his order that Russia’s nuclear forces be placed on high alert (‘a special regime of combat duty’), amounted to attempted coercion, and could suggest that Biden’s reaction constituted backing down. In January, neoconservative New York Times columnist Bret Stephens had called for the revival of the concept of the ‘free world’, and warned, ‘The bully’s success ultimately depends on his victim’s psychological surrender’ (2).

One might argue that it is not for the bully to say how much aggression is ‘acceptable’ from countries that, with help from allies, seek to defend their own borders and their right to exist. Stephens’s warning could equally apply to past international crises, such as Iraq’s invasion of Kuwait in 1990. But the territory being invaded today is Ukraine, which is far bigger. And the aggressor — Russia — has strategic arguments entirely different from those of Saddam Hussein.

‘Scenarios for use of nuclear arms’

To help understand the issues at stake in US-Russian relations today, and Joe Biden’s irritation with the extreme positions of some of his fellow Americans and some allies, it’s worth recalling Russian foreign minister Sergey Lavrov’s 2018 statement that Russia’s nuclear doctrine ‘has unambiguously limited the threshold of use of nuclear weapons to two ... hypothetical, entirely defensive scenarios. They are as follows: [first,] in response to an act of aggression against Russia and/or against our allies if nuclear or other types of mass destruction weapons are used and [second,] with use of conventional arms but only in case our state’s very existence would be in danger’ (3).

Nuclear doctrines are made to be interpreted, and Russia experts have long debated exactly how (4). In Foreign Affairs, Olga Oliker, director of International Crisis Group’s Europe and Central Asia programme, writes that ‘although it has not been used before, Putin’s phrase “a special regime of combat duty” does not appear to signal a serious change in Russia’s nuclear posture’ (5).

But, at least in terms of how the present crisis is perceived, we cannot ignore the implications of the second scenario in Lavrov’s 2018 statement — an existential threat to Russia. Do Russia’s leaders really see Ukraine’s strategic status, and therefore its potential NATO accession, as critical? If they do, that would explain why, contrary to all normal logic and political good sense, they have given NATO a reason to make a stand and irretrievably damaged Russia’s international standing by deciding it is rational to attack Ukraine unilaterally — and then opting for a blunt ‘nuclearisation’ of their crisis diplomacy, so as to keep other potential belligerents out of the conflict.

Is this just a cynical manoeuvre, banking on Western weakness and hesitation, to give Russia the greatest possible freedom to act? Former British prime minister Tony Blair asks on his thinktank’s website: ‘Is it sensible to tell [Putin] in advance that whatever he does militarily, we will rule out any form of military response? Maybe that is our position and maybe that is the right position, but continually signalling it, and removing doubt in his mind, is a strange tactic’ (6).

Who would take responsibility?

Yet although diplomatic manoeuvring is clearly going on, who — with responsibility for what comes next — would be able to say today precisely to what extent this Russian cynicism, which seeks to achieve its objectives through aggressive drawing of red lines, also stems from strategic conviction fuelled by frustrations that have come to a head? We should not underestimate the dangers of this mixture if the West were to test Russia’s siege mentality head on in Ukraine.

Others asked these questions, well before Biden. In the first days of the October 1962 Cuban missile crisis, when the US joint chiefs of staff were taking a hard line, President John F Kennedy expressed the key issues not in military terms, but in terms of perception. He told a meeting of ExComm (the Executive Committee of the National Security Council), ‘Let me just say a little, first, about what the problem is, from my point of view ... we ought to think of why the Russians did this.’

The declassified archives on this key moment in history reveal that Kennedy talked of a blockade, of the importance of giving Khrushchev a way out, and of avoiding escalation to nuclear weapons, all while preserving the US’s international credibility. General Curtis E LeMay, US Air Force chief of staff, replied, ‘This blockade and political action, I see leading into war ... This is almost as bad as the appeasement at Munich.’ The joint chiefs were unanimous in recommending immediate military action. Kennedy thanked them, dryly, and, in the days that followed, did the exact opposite.

‘And [the joint chiefs] were wrong,’ historian Martin J Sherwin concludes in a recent book on decision-making processes in nuclear crises. ‘Had the president not insisted on a blockade, had he accepted the chiefs’ recommendations (also favoured by the majority of his ExComm advisers), he unwittingly would have precipitated a nuclear war’ (7).

The central issue is indeed the significance of the nuclear signalling in which Russia has wrapped its premeditated conventional attack. Ukraine’s president Volodymyr Zelensky doubts Putin will really use nuclear weapons: ‘I think that the threat of nuclear war is a bluff. It’s one thing to be a murderer. It’s another to commit suicide. Every use of nuclear weapons means the end for all sides, not just for the person using them’ (8).

At the risk of appearing spineless, Biden seems to have reserved judgment. For the moment he is restraining his most aggressive allies, such as Poland, and focusing on the coercive force of the economic sanctions, rather than any initiative that might give Putin an excuse for escalation — starting with the use of tactical nuclear weapons, of which Russia is thought to have around 2,000.

‘Putin is bluffing on nuclear’

Is Biden wrong? On 14 March General Rick J Hillier, former chief of Canada’s defence staff, told CBS that NATO should impose a no-fly zone over Ukraine because Putin was bluffing. John Feehery, former communications director to House Majority Whip Tom DeLay, thought so too: ‘Biden’s weakness on Ukraine invited [the] Russian invasion ... When Putin hinted that he was willing to use nuclear weapons to achieve his goals, Biden said that we weren’t going to use ours, which seems to me to defeat the purpose of having those weapons in the first place. If we refuse to use them, why do we have them?’ (9). Stanford historian Niall Ferguson agrees: ‘Putin is bluffing on nuclear, we shouldn’t have backed down.’ And is dismayed that ‘media coverage has become so sentimental and ignorant of military realities’ (10).

But what are these military ‘realities’? What is the nature of the problem? It’s the possibility that Russia will resort to first use of nuclear weapons in an armed conflict that is already under way. Nina Tannenwald, whose book The Nuclear Taboo (Cambridge, 2007) has become a key text in international relations, believes the risk is too great, and supports the US’s wait-and-see strategy: ‘Despite scattered calls in the US for the creation of a “no-fly zone” over some or all of Ukraine, the Biden administration has widely resisted. In practice, this could mean shooting down Russian planes. It could lead to World War III’ (11).

The most striking characteristic of the war in Ukraine is its nuclear backdrop. Events are unfolding as if the world was hurriedly relearning the vocabulary and fundamentals of nuclear strategy, forgotten since the cold war. This is certainly true of Western media and governments, as they become conscious of the potentially destructive sequences of events that link the operational-tactical and politico-strategic dimensions of the present tragedy. The bellicose declarations of some experts in the early days of the war have given way to calmer analysis. In many ways, it’s high time; Kharkiv is not Kabul. Especially given the recent worrying developments in the nuclear debate.

Until relatively recently, the nuclear orthodoxy established after the cold war, as the two superpowers reduced their strategic arsenals, had placed some nuclear weapons in a kind of peripheral area of the doctrine: those known as ‘tactical’ because of their lesser power and range. From 1945 to the 1960s, they had been a key part of US war plans, especially for the European theatre. At the time, the aim was to counter the Soviet Union’s conventional superiority with overwhelming nuclear superiority, to deny the battlefield to the enemy. US secretary of state John Foster Dulles, author of the ‘massive retaliation’ doctrine, stated in 1955, ‘The United States in particular has sea and air forces now equipped with new and powerful weapons of precision which can utterly destroy military targets without endangering unrelated civilian centers’ (12). President Dwight D Eisenhower declared, ‘I see no reason why they shouldn’t be used just exactly as you would use a bullet or anything else.’

However, from the 1960s, the prospect of ‘mutual assured destruction’ reduced the likelihood that tactical nuclear weapons would be used, because of the risk of escalation. The concept of a ‘limited nuclear strike’ gradually came to be seen as dangerous sophistry. Regardless of experts who were certain that a nuclear war could be ‘won’ by ‘graduating’ one’s nuclear response, and controlling the ‘ladders of escalation’ (the best known being Herman Kahn of the Hudson Institute), even a nuclear weapon (arbitrarily) labelled as ‘tactical’ still had the potential to lead to total destruction. The works of Thomas Schelling, especially The Strategy of Conflict (1960) and Strategy and Arms Control (1961) contributed to this new awareness.

Options for US decision makers

The rejection of graduation became a distinguishing characteristic of France’s nuclear doctrine. While reserving the option of a ‘unique and non-renewable’ warning shot, President Emmanuel Macron said in February 2020 that France had always ‘refused to consider nuclear weapons as a weapon of battle.’ He also insisted that France would ‘never engage in a nuclear battle or any form of graduated response’ (13).

Prior to the 2010s, it seemed possible that other nuclear-weapon states could adopt such a doctrinal stance, coupled with the ‘minimum necessary’ nuclear arsenal (France had fewer than 300 warheads). And it was possible to believe that, with a few exceptions (such as Pakistan), tactical nuclear weapons had ‘faded into the background of military and political planning and rhetoric’ (14).

Despite scattered calls in the US for the creation of a ‘no-fly zone' over some or all of Ukraine, the Biden administration has widely resisted. In practice, this could mean shooting down Russian planes. It could lead to World War III

  NINA TANNENWALD

But over the last decade, the trend has reversed. In the world of strategic studies, there has been a return to ‘theories of [nuclear] victory’. Their proponents draw on the work of past scholars such as Henry Kissinger, who wondered in his 1957 book Nuclear Weapons and Foreign Policy if extending the American deterrent to all of Europe at a time when the threat of total destruction hung over the US itself would actually work: ‘A reliance on all-out war as the chief deterrent saps our system of alliances in two ways: either our allies feel that any military effort on their part is unnecessary or they may be led to the conviction that peace is preferable to war even on terms almost akin to surrender ... As the implication of all-out war with modern weapons become better understood ... it is not reasonable to assume that the United Kingdom, and even more the United States, would be prepared to commit suicide in order to defend a particular area ... whatever its importance, to an enemy’ (15).

One of the recommended solutions was to bring tactical nuclear weapons back into the dialectic of deterrence extended to allied territories, so as to give US decision makers a range of options between Armageddon and defeat without a war. Global deterrence was ‘restored’ by creating additional rungs on the ladder of escalation, which were supposed to enable a sub-apocalyptic deterrence dialogue — before one major adversary or the other felt its key interests were threatened and resorted to extreme measures. Many theorists in the 1970s took this logic further, in particular Colin Gray in a 1979 article, now back in fashion, titled ‘Nuclear Strategy: the case for a theory of victory’ (16).

Theoreticians of nuclear victory today reject the ‘paralysis’ that comes with an excessively rigid vision of deterrence. Their strategic beliefs were semi-officialised in the Trump administration’s 2018 Nuclear Posture Review (17). What influence have these theories had on Russia? Has the Kremlin chosen to combine nuclear and conventional deterrents in an operational continuum? Whatever the case, authors who defend the idea of using tactical (‘low-yield’ or ‘ultra-low yield’) nuclear weapons emphasise the importance of countering adversaries who adopt hybrid strategies. Rogue states without a nuclear deterrent will increasingly be tempted to present a fait accompli, banking on nuclear-weapon states’ risk aversion, at least when the latter face a crisis that does not affect their own national territory.

Uncertainties of deterrence dialogue

This shows how Kissinger’s 1957 discussion of the intrinsic weaknesses of wider nuclear deterrence remains pertinent today. The benefits would be even greater for a state with a nuclear deterrent — a nuclear-weapon state behaving like a rogue state. This is exactly what Russia is doing in Ukraine. The West’s hesitation to adopt an over-vigorous response that could lead to nuclear escalation is amplified by its realisation of how history would view whichever party — aggressor or victim — became the first to break the nuclear taboo since Hiroshima and Nagasaki. International Crisis Group’s Olga Oliker admits that ‘such caution and concessions may not bring emotional satisfaction; there is certainly a visceral appeal to proposals that would have NATO forces directly help Ukraine. But these would dramatically heighten the risk that the war becomes a wider, potentially nuclear conflict. Western leaders should therefore reject them out of hand. Literally nothing else could be more dangerous.’

The ‘Third Nuclear Age’, heralded by various crises over the last decade, has dawned in Ukraine. In 2018 Admiral Pierre Vandier, now chief of staff of the French navy, offered a precise definition of this shift to the new strategic era, which has begun with Russia’s invasion: ‘A number of indicators suggest that we are entering a new era, a Third Nuclear Age, following the first, defined by mutual deterrence between the two superpowers, and the second, which raised hopes of a total and definitive elimination of nuclear weapons after the cold war’ (18).

This third age will bring new questions on the reliability — and relevance — of ‘logical rules ... painfully learned, as during the Cuban [missile] crisis’ (19). There will be questions about the rationality of new actors using their nuclear deterrents. The worth of the nuclear taboo, which some today treat as absolute, will be reappraised.

‘Unleashed power of the atom’

Questions like ‘If we refuse to use them, why do we have them?’ suggest Albert Einstein’s warning from 1946 may still be pertinent: ‘The unleashed power of the atom has changed everything save our modes of thinking.’ Yet Einstein was already wrong. Huge numbers of papers were hurriedly written to explain the balances and imbalances of the deterrence dialogue. The current usefulness of these historical, theoretical documents is highly variable, as their logic often reaches absurd conclusions. Yet they include some intelligent analyses that shed light on the Ukrainian nuclear crisis.

Columbia professor Robert Jervis (20), a pioneer of political psychology in international relations, sought to demonstrate that it was possible to overcome the security anxieties that cause each actor to see his own actions as defensive, and those of his competitor as ‘naturally’ offensive. Jervis maintained that breaking the insecurity cycle caused by this distortion meant developing exchanges of signals that would make it possible to differentiate between offensive and defensive weapons in the arsenals of one’s adversaries. And his adaptation of prospect theory to nuclear crises opens up possibilities of interpreting Russia’s behaviour differently, suggesting for example that the adoption of aggressive tactics is more often motivated by aversion to loss than by hopes of gain.

In a nuclear crisis, all strategies are sub-optimal. One, however, is worse than all the rest: claiming that the adversary’s leader is insane, while simultaneously treating the standoff as a game of chicken. This will lead either to mutual destruction or to defeat without a war. Over the past few weeks, some seem to have accepted that this worst of all possible choices is worthy of being called a strategy.

  *OLIVIER ZAJEC IS A LECTURER IN POLITICAL SCIENCE AT JEAN MOULIN LYON III UNIVERSITY’S LAW FACULTY.

The U.S. Has Billions for Wind and Solar Projects. Good Luck Plugging Them In

An explosion in proposed clean energy ventures has overwhelmed the system for connecting new power sources to homes and businesses.

  NYT BY BRAD PLUMER

  FEB. 23, 2023

Plans to install 3,000 acres of solar panels in Kentucky and Virginia are delayed for years. Wind farms in Minnesota and North Dakota have been abruptly canceled. And programs to encourage Massachusetts and Maine residents to adopt solar power are faltering.

The energy transition poised for takeoff in the United States amid record investment in wind, solar and other low-carbon technologies is facing a serious obstacle: The volume of projects has overwhelmed the nation’s antiquated systems to connect new sources of electricity to homes and businesses.

So many projects are trying to squeeze through the approval process that delays can drag on for years, leaving some developers to throw up their hands and walk away.

More than 8,100 energy projects — the vast majority of them wind, solar and batteries — were waiting for permission to connect to electric grids at the end of 2021, up from 5,600 the year before, jamming the system known as interconnection.

That’s the process by which electricity generated by wind turbines or solar arrays is added to the grid — the network of power lines and transformers that moves electricity from the spot where it is created to cities and factories. There is no single grid; the United States has dozens of electric networks, each overseen by a different authority.

PJM Interconnection, which operates the nation’s largest regional grid, stretching from Illinois to New Jersey, has been so inundated by connection requests that last year it announced a freeze on new applications until 2026, so that it can work through a backlog of thousands of proposals, mostly for renewable energy.

It now takes roughly four years, on average, for developers to get approval, double the time it took a decade ago.

And when companies finally get their projects reviewed, they often face another hurdle: the local grid is at capacity, and they are required to spend much more than they planned for new transmission lines and other upgrades.

“From our perspective, the interconnection process has become the No. 1 project killer,” said Piper Miller, vice president of market development at Pine Gate Renewables, a major solar power and battery developer.

A building that formerly housed transformers at the Brayton Point Power Station, a decommissioned coal plant that is being repurposed to link a wind farm to the Massachusetts power grid.Credit...Simon Simard for The New York Times

After years of breakneck growth, large-scale solar, wind and battery installations in the United States fell 16 percent in 2022, according to the American Clean Power Association, a trade group. It blamed supply chain problems but also lengthy delays connecting projects to the grid.

Electricity production generates roughly one-quarter of the greenhouse gases produced by the United States; cleaning it up is key to President Biden’s plan to fight global warming. The landmark climate bill he signed last year provides $370 billion in subsidies to help make low-carbon energy technologies — like wind, solar, nuclear or batteries — cheaper than fossil fuels.

But the law does little to address many practical barriers to building clean energy projects, such as permitting holdups, local opposition or transmission constraints. Unless those obstacles get resolved, experts say, there’s a risk that billions in federal subsidies won’t translate into the deep emissions cuts envisioned by lawmakers.

“It doesn’t matter how cheap the clean energy is,” said Spencer Nelson, managing director of research at ClearPath Foundation, an energy-focused nonprofit. “If developers can’t get through the interconnection process quickly enough and get enough steel in the ground, we won’t hit our climate change goals.”

Waiting in line for years

In the largest grids, such as those in the Midwest or Mid-Atlantic, a regional operator manages the byzantine flow of electricity from hundreds of different power plants through thousands of miles of transmission lines and into millions of homes.

Before a developer can build a power plant, the local grid operator must make sure the project won’t cause disruptions — if, for instance, existing power lines get more electricity than they can handle, they could overheat and fail. After conducting a detailed study, the grid operator might require upgrades, such as a line connecting the new plant to a nearby substation. The developer usually bears this cost. Then the operator moves on to study the next project in the queue.

This process was fairly routine when energy companies were building a few large coal or gas plants each year. But it has broken down as the number of wind, solar and battery projects has risen sharply over the past decade, driven by falling costs, state clean-energy mandates and, now, hefty federal subsidies.

“The biggest challenge is just the sheer volume of projects,” said Ken Seiler, who leads system planning at PJM Interconnection. “There are only so many power engineers out there who can do the sophisticated studies we need to do to ensure the system stays reliable, and everyone else is trying to hire them, too.”

PJM, the grid operator, now has 2,700 energy projects under study — mostly wind, solar and batteries — a number that has tripled in just three years. Wait times can now reach four years or more, which prompted PJM last year to pause new reviews and overhaul its processes.

Delays can upend the business models of renewable energy developers. As time ticks by, rising materials costs can erode a project’s viability. Options to buy land expire. Potential customers lose interest.

Two years ago, Silicon Ranch, a solar power developer, applied to PJM for permission to connect three 100-megawatt solar projects in Kentucky and Virginia, enough to power tens of thousands of homes. The company, which often pairs its solar arrays with sheep grazing, had negotiated purchase options with local landowners for thousands of acres of farmland.

Today, that land is sitting empty. Silicon Ranch hasn’t received feedback from PJM and now estimates it may not be able to bring those solar farms online until 2028 or 2029. That creates headaches: The company may have to decide whether to buy the land before it even knows whether its solar arrays will be approved.

“It’s frustrating,” said Reagan Farr, the chief executive of Silicon Ranch. “We always talk about how important it is for our industry to establish trust and credibility with local communities. But if you come in and say you’re going to invest, and then nothing happens for years, it’s not an optimal situation.”

PJM soon plans to speed up its queues — for instance, by studying projects in clusters rather than one at a time — but needs to clear its backlog first.

‘Imagine if we paid for highways this way’

A potentially bigger problem for solar and wind is that, in many places around the country, the local grid is clogged, unable to absorb more power.

That means if a developer wants to build a new wind farm, it might have to pay not just for a simple connecting line, but also for deeper grid upgrades elsewhere. One planned wind farm in North Dakota, for example, was asked to pay for multimillion-dollar upgrades to transmission lines hundreds of miles away in Nebraska and Missouri.

These costs can be unpredictable. In 2018, EDP North America, a renewable energy developer, proposed a 100-megawatt wind farm in southwestern Minnesota, estimating it would have to spend $10 million connecting to the grid. But after the grid operator completed its analysis, EDP learned the upgrades would cost $80 million. It canceled the project.

That creates a new problem: When a proposed energy project drops out of the queue, the grid operator often has to redo studies for other pending projects and shift costs to other developers, which can trigger more cancellations and delays.

It also creates perverse incentives, experts said. Some developers will submit multiple proposals for wind and solar farms at different locations without intending to build them all. Instead, they hope that one of their proposals will come after another developer who has to pay for major network upgrades. The rise of this sort of speculative bidding has further jammed up the queue.

“Imagine if we paid for highways this way,” said Rob Gramlich, president of the consulting group Grid Strategies. “If a highway is fully congested, the next car that gets on has to pay for a whole lane expansion. When that driver sees the bill, they drop off. Or, if they do pay for it themselves, everyone else gets to use that infrastructure. It doesn’t make any sense.”

A better approach, Mr. Gramlich said, would be for grid operators to plan transmission upgrades that are broadly beneficial and spread the costs among a wider set of energy providers and users, rather than having individual developers fix the grid bit by bit, through a chaotic process.

There is precedent for that idea. In the 2000s, Texas officials saw that existing power lines wouldn’t be able to handle the growing number of wind turbines being built in the blustery plains of West Texas and planned billions of dollars in upgrades. Texas now leads the nation in wind power. Similarly, MISO, a grid spanning 15 states in the Midwest, recently approved $10.3 billion in new power lines, partly because officials could see that many of its states had set ambitious renewable energy goals and would need more transmission.

But this sort of proactive planning is rare, since utilities, state officials and businesses often argue fiercely over whether new lines are necessary — and who should bear the cost.

“The hardest part isn’t the engineering, it’s figuring out who’s going to pay for it,” said Aubrey Johnson, vice president of system planning at MISO.

Climate goals at risk

As grid delays pile up, regulators have taken notice. Last year, the Federal Energy Regulatory Commission proposed two major reforms to streamline interconnection queues and encourage grid operators to do more long-term planning.

The fate of these rules is unclear, however. In December, Richard Glick, the former regulatory commission chairman who spearheaded both reforms, stepped down after clashing with Senator Joe Manchin III, Democrat of West Virginia, over unrelated policies around natural gas pipelines. The commission is now split between two Democrats and two Republicans; any new reforms need majority approval.

If the United States can’t fix its grid problems, it could struggle to tackle climate change. Researchers at the Princeton-led REPEAT project recently estimated that new federal subsidies for clean energy could cut electricity emissions in half by 2030. But that assumes transmission capacity expands twice as fast over the next decade. If that doesn’t happen, the researchers found, emissions could actually increase as solar and wind get stymied and existing gas and coal plants run more often to power electric cars.

Massachusetts and Maine offer a warning, said David Gahl, executive director of the Solar and Storage Industries Institute. In both states, lawmakers offered hefty incentives for small-scale solar installations. Investors poured money in, but within months, grid managers were overwhelmed, delaying hundreds of projects.

“There’s a lesson there,” Mr. Gahl said. “You can pass big, ambitious climate laws, but if you don’t pay attention to details like interconnection rules, you can quickly run into trouble.”

New French fund with 87.5 mln euros targets African solar development

  REUTERS

Dr Stanford Chidziva, acting director of Green Hydrogen, looks at the solar panels at the site where Keren Energy constructed the first proof of concept of green hydrogen production facility in Africa at Namaqua Engineering in Vredendal, in collaboration with The Green Hydrogen Institute for Advanced Materials Chemistry (SAIAMC) at the University of the Western Cape, South Africa, November 15, 2022. REUTERS/Esa Alexande

PARIS, Feb 24 (Reuters) - A new investment fund with 87.5 million euros ($92.63 million) will finance solar power production across Africa, with a focus on West and Central Africa, French fund manager RGREEN INVEST and investment adviser ECHOSYS INVEST said on Friday.

The AFRIGREEEN Debt Impact Fund's first closing will finance on- and off-grid solar power plants for small- and medium-sized commercial and industrial consumers across the continent, the statement said.

The project aims to provide direct lending and asset-based debt facilities for regional and international developers and African commercial and industrial companies to develop solar infrastructure.

The groups are looking to have a portfolio of twenty to thirty investments, with aim of meeting long-term debt financing needs of between 10 and 15 million euros, with an average of around 5 million euros over eight to ten years, the statement said.

The fund also includes and offer of long-term local currency financing in Ghana and Nigeria with support from the International Development Association's Private Sector Window Local Currency Facility.

The Fund's will measure impact targets in terms of megawatts (MW) installed, megawtt-hours (MWh) produced, tonnes of CO2 emissions and litres of fuel avoided, and number of companies directly or indirectly accessing new financing channel, it said.

The impact will also be measured by the number of commercial and industrial companies able to upgrade their power generation facilities and enhance their efficiency.

RGREEN INVEST and ECHOSYS INVEST said that the first closing included commitments from the European Investment Bank (EIB) and the International Finance Corporation (IFC).

French banks Societe Generale (SOGN.PA) and BNP Paribas (BNPP.PA) completed the first round of funding, the statement said.

The group is aiming to raise a total of 100 million euros from development finance institutions and private investors.

REPORTING BY FORREST CRELLIN AND SUDIP KAR-GUPTA. EDITING BY JANE MERRIMAN