World Energy Investments 2018

Description

World Energy Investment 2018......Page 1 Foreword......Page 4 Acknowledgements......Page 6 Table of contents......Page 10 Executive summary......Page 12 Energy end-use and efficiency......Page 13 Electricity and renewables......Page 14 Fossil fuel supply......Page 15 Key trends in financing and funding......Page 17 Innovation and new technologies......Page 18 Introduction......Page 20 1. Energy investment trends......Page 22 Global energy investment trends......Page 24 Global spending on energy efficiency......Page 28 Changes in market design have caused the market to tighten in France......Page 31 Certificate prices in Italy have soared with tighter rules on project eligibility......Page 33 Focus on heat pumps......Page 34 Public spending on electric car incentives is rising as sales climb......Page 37 Charging infrastructure is expanding in anticipation of demand......Page 42 Focus on iron and steel capacity additions......Page 44 Electricity and renewables sector investment......Page 48 Tendering schemes support larger renewable projects in some markets......Page 52 Investment in distributed solar PV rebounded in 2017, mostly due to China......Page 55 Fewer new nuclear plants, but more spending on upgrades of existing ones......Page 58 Retirements are driving a contraction in the fleet of inefficient coal plants......Page 60 Stable FIDs for dispatchable power, but less demand for new large thermal plants......Page 62 Investment in stationary electricity storage......Page 65 Investment in electricity networks......Page 70 Spending on modernising and “smartening” the grid continues to rise......Page 72 Investment in large-scale transmission projects is increasing......Page 74 Mini grids offer numerous potential benefits, but investment remains small......Page 76 Edging back from the abyss......Page 79 The rise in upstream spending differs by company type......Page 83 Exploration activities remain subdued, with few conventional resources being discovered......Page 86 Investment in conventional oil and gas is shifting to brownfield projects......Page 88 Was 2017 a turning point for the offshore sector?......Page 92 Activities in US shale creep up......Page 94 Drilling costs are on the rise again, but only slowly......Page 97 US shale costs rebound but are compensated by technological and operational efficiency gains......Page 100 Refining investment – especially in secondary units– is bouncing back......Page 104 United States leads investment in petrochemicals......Page 108 Investment in LNG liquefaction plants......Page 110 Investment in the coal sector......Page 112 References......Page 115 2. Energy financing and funding trends......Page 118 Overview......Page 119 Sources of finance for new investments......Page 120 The share of private-led energy investment has declined......Page 128 The impact of rising US dollar interest rates on energy investments......Page 129 The major oil companies......Page 132 National oil companies......Page 134 Independent US shale producers......Page 135 2010-14: The start-up phase......Page 136 2015-16: The survival phase......Page 137 2017: The consolidation phase......Page 138 2018: Profitability at last?......Page 139 Mergers and acquisitions in the oil and gas sector......Page 142 Financing and funding trends supporting power sector investment......Page 144 Policy, market and financing development for renewable investments......Page 145 More diversified financing has boosted offshore wind investment to record levels......Page 149 Financing and funding nuclear power remain dependent on government aid......Page 153 Cost recovery and investment in electricity networks in key markets......Page 155 Utility generation strategies continue to change......Page 160 Lower M&A in the power sector, but sustained activity by Chinese companies......Page 164 Focus on financing power sector investments in India......Page 167 Renewable investments face persistent risks, but there are options to manage them......Page 168 Gradual improvements in the financial sustainability of India’s utilities......Page 176 Financial issues and performance of existing assets may create headwinds for lending......Page 178 Securing finance for ESCO investments......Page 182 ESI can further reduce risk associated with ESCO projects......Page 183 Energy efficiency financing by green banks......Page 186 Energy efficiency financing by issuance of green bonds......Page 188 References......Page 191 3. Investment in R&D and new technologies......Page 194 Overview......Page 195 Investment in energy innovation......Page 196 Public sector R&D spending on low-carbon technologies jumps......Page 197 Corporate energy R&D spending is recovering slowly......Page 198 Trends in corporate energy innovation management......Page 200 Digital innovation is very different to traditional hardware innovation......Page 201 There is more corporate involvement in early-stage energy tech companies, increasingly from outside the energy sector......Page 202 The pace of radical change can be constrained when existing technology sales are needed to finance new technology development......Page 204 VC funding of early stage energy technology is growing......Page 205 Investments in lithium-ion batteries and EVs......Page 207 Lithium-ion battery production for EVs......Page 209 Battery cathodes......Page 210 Lithium and cobalt supply......Page 212 EV production......Page 214 Alignment of investments in the value chain......Page 216 Hydrogen......Page 218 Water electrolysis......Page 219 Filling stations......Page 221 Encouraging investment in CCUS......Page 223 Investment in carbon capture......Page 226 Investment in CO2 storage and transport......Page 230 Developing CO2 utilisation to support investment in carbon capture......Page 232 Policies to boost investment in CCUS......Page 235 References......Page 239 Lists of figures, tables and boxes......Page 242 Abbreviations and acronyms......Page 247 Units of measurement......Page 248