Watt’s Happening aims to provide breaking news, sharp analysis, and thoughtful commentary from the cutting edge of the energy sector as this dynamic area of the world continues to expand and grow before our eyes.
Weekly Highlights:
World Bank Ends Ban on Funding Nuclear Power
At long last, the World Bank has agreed to end its ban on funding nuclear power in developing countries, which it has had on its books since 2013. Part of the reason for ending the ban is the projection that, as World Bank President Ajay Banga noted, the demand for electricity in developing countries is set to more than double by 2035, requiring the amount of money invested in electricity generation and storage to rise from $280 billion to $630 billion. President Banga also pledged that the World Bank will invest in small modular reactors (SMRs), in his words, “to help countries deliver the energy their people need, while giving them the flexibility to choose the path that best fits their development ambitions,” while retiring old coal plants.
Support for Fossil Fuels Rises as Support for Renewables Collapses
A recent survey by Pew Research has revealed that both Democrats and Republicans are less likely to support renewables than they were five years ago. Indeed, while 79 percent of Americans favored expanding wind and solar power in 2020, that figure is now 60 percent. On the other hand, while 20 percent of Americans supported the expansion of natural gas, oil, and coal production in 2020, 39 percent do today. While some critics point to the fact that the cause for this collapse is the fact that green energy has been coupled to broader culture war issues, the survey data do not bear this out. For instance, 69 percent of respondents in both parties favor the expansion of offshore wind, despite President Trump’s disapproval of it, and approval for nuclear power has sharply risen by both parties, mirroring President Trump’s recent wave of executive orders on the subject. To read the latest TNI analysis, click here.
The European Union Leads the Way in Energy-Saving Measures for Data Centers
While data centers only account for three percent of the European Union’s electricity demand, that figure won’t stay that way for long. After all, energy-thirsty data centers are leading the way in the artificial intelligence revolution that has the potential to reshape every aspect of human life. While EU Energy Commissioner Dan Jorgensen pledged a “data center energy efficiency package,” he remained tight-lipped about what those measures were going to look like.
The European Union Turns Up the Heat on Russia
As the war in Ukraine continues to drag on, the European Union has proposed new sanctions on Russia to hopefully force it to the negotiating table. And this time, the focus is on Russia’s Nordstream 1 and 2 Pipelines, which supply natural gas to much of Europe. The new round of sanctions would prevent any EU operator from engaging in any transactions with the pipelines, as well as cut the price cap on Russian oil. Even so, it is worth noting that the effects of the sanctions have, at best, been mixed, as the Russian economy has displayed a sizable degree of resilience to the sanctions thus far.
Clean Energy Investment Surpasses Fossil Fuel Investment
The good news is that, despite fears about Big Oil fueling the anti-green energy movement, around $3.3 trillion will flow into the energy sector over the course of 2025. Of that figure, $2.2 trillion will enter various forms of renewable or nuclear energy, with the lion’s share ($450 billion) going towards solar energy. Interestingly, it is China, not the European Union or the United States, that is leading the way, according to the IEA. It’s spending on energy developments now matches the United States and the European Union combined, despite the fact that China’s investments in fossil fuels also remain high.
About the Author: Toni Mikec
Toni Mikec is the Managing Editor for Energy World, a publication of the Center for the National Interest. Before that, he worked as a political consultant for Your Voter Guide in Sacramento and as a Senior Editor at Eagle Financial Publications in Washington DC. He holds a B.A. in International Relations (summa cum laude) from the University of California, Davis and a M.A. in International Relations and International Economics from the Johns Hopkins School of Advanced International Studies.
Image: Shutterstock/Sutthiphong Chandaeng
