Displaying items by tag: Ember

Renewables reportedly generated more power than coal in the first half of 2025. Energy think tank Ember put out a report this week, which showed that solar and wind generation also grew faster than the rise in electricity demand in the first half of 2025. Global electricity demand rose by 2.6% year-on-year, adding 369TW. Solar increased by 306TW and wind by 97TW. Both coal and gas generation fell slightly, although a rise in other fossil fuel generation slowed the decline further.

Tellingly, fossil fuel generation fell in both China and India. Indeed, China added more solar and wind than the rest of the world combined, cutting its fossil fuel generation by 2% or by 58.7TWh. In India, renewables grew at the expense of fossil fuels, but demand growth was relatively low at 12TWh. In the US and the European Union (EU) fossil fuel generation actually increased. In the US, this was due to demand growth outpacing new renewable power. In the EU, weaker wind and hydroelectric output led to a greater reliance on coal and gas.

Meanwhile, a separate report by the International Energy Agency (IEA), also out this week, predicts that installed renewable power is likely to more than double by 2030 even as the sector navigates headwinds in supply chains, grid integration and financing. The IEA forecasts that global renewable power capacity will increase by 4600GW by 2030, roughly the equivalent of adding the total power generation capacity of China, the EU and combined. Solar photovoltaic (PV) will account for around 80% of the global increase in renewable power capacity over the next five years, followed by wind, hydroelectric, bioenergy and geothermal. Solar PV is expected to dominate renewables’ growth between now and 2030, remaining the lowest-cost option for new generation in most countries. Wind power, despite its near-term challenges, is still set for considerable expansion as supply bottlenecks ease and projects move forward, notably in China, Europe and India. However, the IEA’s outlook for global renewable capacity growth has been revised downward slightly compared to 2024, mainly due to policy changes in the US and in China.

This is all very well but what does it mean for the cement sector? At face value, possibly not much anytime soon. Both Ember and the IEA are talking about domestic electricity generation, not industrial. Ember reckons that half the world’s economies may have already peaked in fossil fuel power generation, but usage rates are still high. Prices of fossil fuels may even subsequently come down - to the benefit of industrial users such as cement plants. Yet, carbon taxes should, in theory, discourage increased usage - if they are working correctly.

Market distortions should not be discounted though. Some readers may recall what happened with carbon credits in the earlier stages of the EU emissions trading scheme. Free carbon allowances, calculated during the boom years of 2005-2007 when production was maxed out, were far too much to cover production during the resulting economic crisis. The sale of extra allowances provided many plants with a nice little earner and did little to encourage decarbonisation. Carbon capture is likely to require large amounts of electricity, but cheaper energy from renewables may help.

However, take a look at renewable energy stories in the Global Cement website news so far in 2025 and there are nearly 30 solar-related and seven wind-related ones. Cement companies are busily adding renewable capacity to reduce the cost of their electricity. This week, for example, Equator Energy commissioned a 10MW captive solar power plant at Mombasa Cement’s Vipingo plant in Kenya. Last week, Southern Province Cement in Saudi Arabia signed a 25-year solar energy power purchase agreement for its Bisha cement plant. Lest one forget, Saudi Arabia was the largest exporter of crude oil among Organization of the Petroleum Exporting Countries (OPEC) members in 2023 at 6,659,000 barrels/day. If a cement plant in Saudi Arabia is investing in renewables, then one might suspect a change in the global energy mix is occurring.

Electricity accounts for around 12% of the energy demand at a cement plant. Nearly two-thirds of that demand comes from either grinding raw materials or cement. Then, as mentioned above, carbon capture is expected to increase the demand for electricity. One estimate reckons it will increase electricity consumption by 50 - 120%. Renewables are expected to bring down the price of electricity but demand will also grow.

So… expect more renewable projects linked to cement plants.