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Daily on Energy: China dominates electric vehicle rollout

Daily on Energy: China dominates electric vehicle rollout

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CHINA’S ELECTRIC VEHICLE FOOTPRINT: New data distils the extent to which the world’s largest greenhouse gas emitter is eclipsing its largest geopolitical competitors in the rollout of electric vehicles.

China was home to 3.3 million EV sales last year, accounting for half of new sales worldwide and more than the total sales of Europe and the United States combined, according to a new report released today by International Energy. agency.

China’s combined stock of electric and plug-in hybrid electric vehicles in China also accounted for more than half of all 16.5 million electric vehicles on the world’s roads by 2021.

China’s advantages: For starters, Chinese EVs are relatively cheaper than elsewhere, as the large production capacity allows manufacturers to buy cheaper minerals and batteries, the IEA noted.

A conventional vehicle was only 10% cheaper than an electric vehicle in China last year based on the sales weighted median price.

The difference was much greater in other ‘big markets’, where conventional vehicles were between 45-50% cheaper.

More than half of all electric cars produced worldwide last year were assembled in China, which is “ready to maintain its manufacturing dominance,” the IEA said.

The contrast: Western governments, including the United States, have treated China with special scrutiny because of its top emitting status, its heavy reliance on coal, and its relatively less aggressive emissions reduction targets.

President Joe Biden criticized China for not attending the COP26 climate change conference in Glasgow last November, and its diplomatic power has pushed the Chinese to cut more emissions.

Yet, at the same time as China is deploying large numbers of new coal capacity — its 25.2 gigawatts of new coal-fired power stations were about 56% of newly commissioned coal capacity worldwide last year – it dominates the production and deployment of EVs, as well as new installations for renewable energy capacity.

China accounted for more than 80% of the increase in added renewable capacity installations from 2019 to 2020, per IEA

Home: Biden wants half of all new car sales to be electric by 2030, and he has been trying to enable more growth for electric car production domestically, something some lawmakers have said must be done to prevent China’s manufacturing industry. is continuously supported.

Turnover is growing, but reaching Biden’s goal will be a slog at current rates.

Welcome to Daily on Energy, written by Washington Examiner Writers on energy and the environment Jeremy Beaman @jeremywbeaman) and Breanne Deppisch@breanne_dep† Email [email protected] or [email protected] for tips, suggestions, agenda items and anything else. If a friend sent you this and you want to sign up, click here† If signing up doesn’t work, send us an email and we’ll add you to our list.

FERC CHAIRMAN GLICK UP FOR SECOND TERM: Biden nominated Richard Glick for another term as member and chairman of the Federal Energy Regulatory Commission, the White House announced Friday.

Glick, whose term ends on June 30, is one of the committee’s three Democrats and has been chairman since January 21, 2021.

Glick’s renomination comes at a critical time for the commission, which is under pressure from some lawmakers to speed up approval of pipelines and other infrastructure to allow more natural gas to energy-ravaged Europe.

His confirmation could hit some roadblocks in the narrowly divided Senate. Glick oversaw FERCs introduction of controversial new policy statements in February stating that the commission would expand the scope of considerations when assessing pipeline projects, including a future project’s greenhouse gas emissions.

Senate Energy and Natural Resources Committee Chair Joe Manchin then joined many Republican lawmakers in criticizing the policy statements. Industry groups also rejected the policy statements, in part arguing that they would create uncertainty for property developers.

FERC withdrew the policy statements about a month after they were introduced to allow for more public outreach, something Glick said was done “in light of concerns that the policy statements were causing further confusion”.

DIESEL PRICE INCREASE HAS NEW ENGLAND WORST: Diesel retail prices in the Northeast are up 78% since January, the highest rate of any region in the country, according to the Energy Information Administration.

The average retail price of diesel in New England was $6.43 a gallon as of May 16. The average price of the Central Atlantic region was just under $6.36 per gallon.

EIA noted that a shortage of refining capacity in the regions hinders them more than some others.

The refinement factor: Commodity analysts have been quick to point out, often in refutation of price inflation theories, to what extent a shortage of refining capacity drives up retail prices.

In 2021, total U.S. refining capacity fell by nearly 560,000 barrels per day compared to the previous year, according to EIA. Total capacity reached a record 18.8 million bpd in 2019.

REGULAR GAS PRICES RISE FAST: US gas prices rose nearly 50 cents in the past month, to a national average of $4,596 per gallon, according to AAA—a peak of 48 cents from last monthwhen the average was $4,120 per gallon, and a whopping $1.55 golf from the same point last year.

The record high gas prices come just days before the start of the summer driving season in the US, which traditionally kicks off Memorial Day weekend and is expected to push demand even further.

ENERGY CRISIS EXAMPLE ANOTHER SHOCK TO ELECTRICITY COSTS: Russia’s war in Ukraine has also sparked another looming energy price crisis — for electricity bills, where monthly averages suggest prices in Europe and the US are likely to rise “significantly”.

In Europe, regional electricity futures contracts for late 2022 and 2023 have risen to near-record highs in recent weeks, “heralding further increases in energy bills”. Bloomberg columnist Javier Blas wrote† European utilities are buying electricity months in advance on the wholesale market to lock in costs for their customers, he writes – which effectively means “significant retail increases for the coming year”.

Meanwhile, the latest from the US Energy Information Administration, short-term energy outlook also forecast a 3.9% increase in residential electricity prices this summer compared to the same period last year. In its forecast, EIA cited recent trends in demand, as well as the “significant” increase in natural gas prices and the decline in production from target as coal-fired power plants were shut down.

POLAND TERMINATES RUSSIAN GAS CONTRACT AGAINST RUBLE DISPUTE: Poland has terminated its agreement to receive Russian gas deliveries through the Yamal gas pipeline, Poland’s Climate Minister Anna Moskwa said today, a decision that comes after Poland refused to meet Russia’s demand to pay for its gas supplies in rubles last month, prompting the Kremlin to cut off its gas supplies.

Poland previously said it did not plan to renew its contract with Russian gas giant Gazprom Reuters notes was originally scheduled to expire at the end of 2022. Officials said the decision would not affect gas flows between Russia and Germany, which are also supplied through the Polish-owned Yamal pipeline.

“Russia’s aggression against Ukraine has confirmed the accuracy of the Polish government’s determination to gain complete independence from Russian gas. We have always known that Gazprom was not a reliable partner,” Moskwa said Twitter

BMW APPEARS TO END RELY ON RUSSIAN GAS: BMW is exploring new investments in solar, geothermal and hydrogen power to protect itself from the possibility of Russia cutting off its natural gas supply, Reuters reports

BMW production chief Milan Nedeljkovic said the company, which depended on natural gas for 54% of its total energy consumption by 2021, has been working to determine how to convert these alternative energy sources, and is working with local authorities to begin transporting hydrogen. he said hydrogen is “very suitable for lowering or even completely offsetting gas demand”.

Bigger whole: The transport sector, Nedeljkovic said, “accounts for about 37% of German natural gas consumption” and “would come to a halt” if the gas supply were cut off.

the rundown

Politico Europe Electric cars cause problems for Central Europe

Reuters Delivery headaches strike for EV maker Rivian as the market closes the treasury

Calendar

MONDAY | MAY 23

4 p.m. Evergreen Action organizes Sen. Tina Smith and Rep. Ro Khanna for a “Policy + Pints” discussion on approving the $555 billion in energy and climate change-related utilities from the Democrats’ stalled reconciliation proposal.

TUESDAY | May 24

12 noon The House Select Climate Crisis Committee holds a hearing on ways to create an affordable and resilient food supply chain in the face of climate change. The panel will hear testimonials from nonprofit organizations including ReFED, the North American Renderers Association, the National Audubon Society and more.

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