World Energy Investments 2018

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