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In today’s issue, we explore India’s innovative plan to beat heat waves without breaking the bank.͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
cloudy Folsom
sunny New Delhi
thunderstorms London
rotating globe
May 5, 2023
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Net Zero

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Tim McDonnell
Tim McDonnell

Hi everyone, welcome back to Net Zero.

India has been hit by record-breaking heat waves over the last month, threatening lives and livelihoods across the country. Air conditioners can’t solve the problem, since they’re unaffordable for much of the population and a major drain on the country’s already shaky electric grid. Instead, as New Delhi-based journalist Lou Del Bello reports for us today, the country is embarking on an innovative multi-pronged strategy to beat the heat without breaking the bank. But so far, officials are struggling to pull it off.

Also today: A “duck” threatens to quack up California’s electric grid, Biden’s climate plans are looking a lot more expensive, and an offshore wind magnate gets crowned.

If you like what you’re reading, spread the word.

Warmups
Rebecca Cook/Reuters

The United Auto Workers union said it would not endorse U.S. President Joe Biden’s reelection campaign, for now. The administration’s push for electric vehicles, the union’s leadership said, will cost jobs and “is at serious risk of becoming a race to the bottom.”

Shell posted a first-quarter profit of $9.6 billion, beating analysts’ expectations and profit for the same period last year, thanks in part to strong demand for chemicals and refined petroleum products. Meanwhile, SunPower and Sunrun, two of the top U.S. solar installers, posted losses for the quarter in spite of strong sales, because of high marketing costs. Both companies face a months-long installation backlog.

A rising number of financial institutions are excluding coal mining and coal-fired power plants from their lending and insurance portfolios. At least 200 banks, insurers, and asset managers globally have said they will divest from coal, according to a new report, three times the number in 2019.

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Evidence

The proliferation of wind and solar power is pushing California’s electric grid into unprecedented territory. The “duck curve” shown below depicts the one 24-hour period during each year when the state’s electricity demand was lowest. It shows total electricity demand, minus what is being contributed by utility-scale wind and solar: essentially, how much is left over for other forms of electricity to cover. Each year, as more wind and solar come online, the “duck’s belly” — the sunniest, windiest part of the day — pushes closer to zero.

This spring, it crossed below zero for the first time, meaning that wind and solar generated more electricity than the whole state could consume, according to an analysis by Brian Bartholomew at the renewable energy company REV Renewables. That creates a huge challenge for grid operators, who have to choose between cutting off some of that renewable power or shutting down big nuclear and gas-fired power plants with the risk that they won’t be able to ramp back up on time once net demand rises in the evening.

What this chart shows, in essence, is the need for utility-scale batteries to smooth out the variability and free grid operators from having their choices dictated by the weather.

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Lou del Bello

India’s plan to stay cool without A/C

Debarchan Chatterjee via Reuters Connect

THE NEWS

India is pioneering a strategy to shield its 1.4 billion people from increasingly scorching heat — a potential blueprint for low-income countries facing the same climate-induced challenges. If it works.

India already faces some of the longest and most brutal heat waves on record, and scientists expect this trend to worsen in future. But with average annual incomes barely above $2,000, Indians cannot afford to solve their problems with air conditioners alone.

The government’s India Cooling Action Plan is a first-of-its-kind attempt to recognize rising temperatures as a systemic challenge, proposing both high- and low-tech solutions such as tougher energy-efficiency standards and white-painted “cool roofs” to reduce the internal temperatures of buildings.

LOU’S VIEW

The ICAP is among India’s hugely ambitious targets. Prime Minister Narendra Modi’s government wants to have 500 GW of total installed renewable-energy capacity by 2030, and become net zero by 2070 — a stretch given that various types of coal alone make up around 51% of its current energy mix.

But these grand statements are usually paired with the word “aspirational,” which cynics see as an open concession that they may never materialise. Previous renewable targets have been missed, there is no hard data on how the cooling plan is progressing, and no detailed steps to get to net zero.

Multiple sources have told me that the climate action plan for New Delhi itself — the megacity perhaps most exposed to the threat of heatwaves — has languished at the draft stage for several years.

That’s part of the disconnect I often see here in India: The country’s plans, when they are issued, are aggressive. But when it comes to implementation, they too often fall short. So far, this is what is happening to the ICAP.

“The high level vision seems good,” one expert told me, on condition of anonymity, “but when you dig into a lot of the details, one comes up with lots of hollow shells.”

KNOW MORE

India faces the possibility that a combination of extreme heat and humidity — known as a wet bulb scenario — could push the limits of human survivability. According to the consultancy McKinsey, up to 200 million people in India’s urban areas will be exposed to the risk of a lethal heatwave by the end of the decade, a number that will increase to up to 480 million by 2050.

The Western approach to cooling was “all about conditioners” says Satish Kumar, executive director of the nonprofit Alliance for an Energy Efficient Economy and one of the architects of the national cooling policy launched in 2019. But for India, “it’s much more complex than that.”

India already has the world’s highest annual cooling needs, far more than China and the U.S. combined, and the International Energy Agency projects that by 2040, electricity demand for cooling will increase sixfold.

To mitigate the demands on the grid, Indian planners have improved energy standards for fridges, air conditioners, and — crucial in India for the hundreds of millions who cannot afford either — ceiling- and wall-mounted fans. Higher efficiency fans alone could reduce the country’s peak power demand by up to 10 GW, a significant chunk of overall demand of 230 GW. They are also promoting a raft of other low-tech measures, including “cool roofs,” new rules on the directions buildings point in and their ratios of windows to doors, as well as the installation of blinds on windows.

Officials also want to expand training of maintenance workers to help ensure appliances don’t degrade, while at the same time offering well-paid, technical employment to a raft of workers who need not be fully literate, a key stumbling block in India.

Small, low-tech interventions are how you achieve scale in a country like India, as well as in many other developing countries, Kumar says.

ROOM FOR DISAGREEMENT

India can still make its cooling plan work, two experts wrote in EnergyWorld, so long as it ensures new buildings meet high energy-efficiency and insulation standards, prioritizes renewable energy, and gives more power to its states to devise appropriate local solutions.

THE VIEW FROM MIAMI

One way that several cities around the world have honed low-tech responses to heat waves is by appointing dedicated bureaucrats to the task. Miami was the first city in the world to appoint a chief heat officer in 2021. Her job entails a mix of public communication and outreach on heat-related health risks, as well as urban planning and landscaping to improve access to shade and air-conditioned public spaces like malls. Half a dozen cities worldwide have followed suit, most recently Dhaka, which appointed the first heat officer in Asia last week.

NOTABLE

  • India’s efforts have not matched its promises, analysts say. In a 2021 report, the nonprofit International Forum for Environment, Sustainability & Technology said that the cooling plan lacked a concrete implementation timeline as well as mechanisms to monitor progress and enforce action.
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Green Shoots

The Inflation Reduction Act will cost taxpayers more than anticipated. Initial estimates put the law’s cost at around $300 billion over the next decade. But as the Treasury Department has provided more clarity on how individuals and businesses can qualify for the law’s tax breaks, and investors line up around the block for battery factories and other clean energy projects, that cost is likely to balloon to well over $1 trillion, my colleague Jordan Weissmann reported this week. The higher price tag, while a good sign for the pace of the energy transition, makes the law an even easier political target for Congressional Republicans seeking to roll it back.

For more of Jordan’s reporting from Washington, subscribe to the Principals newsletter.

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Semafor Stat

Investment that would be required by 2030 for oil and gas companies to halve their operational carbon emissions per unit of production, according to the International Energy Agency. That’s “only a fraction of the record windfall income” these companies earned last year, the IEA noted.

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The Royals
Phil Noble/Reuters

The coronation this weekend of King Charles III will officially usher in the reign of one of the world’s biggest offshore wind magnates. The sovereign of the United Kingdom is officially the owner of the seafloor surrounding the country up to 12 miles offshore, which puts the Crown Estate in charge of leasing out spots in a highly lucrative patch of clean-energy real estate. The Estate’s total revenue from all its various properties in the 2020-21 fiscal year was about $554 million: Over the next decade, it anticipates reaping at least $992 million per year from offshore wind farm leases alone. In January, the King directed that this windfall be invested in “the wider public good” rather than pocketed by the royal family.

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Corrections

Wednesday’s newsletter contained two errors. In the story about climate risk to meat companies, the analyst at Newton Investment Management was incorrectly identified as Natalie White. Her name is Rebecca White.

And in the Glossary item about “Chevron deference,” we mistakenly used the phonetic spelling for the word “defense” instead of “deference.” The correct pronunciation is “ˈdef.ər.əns”. Thanks very much to eagle-eyed reader J-P for catching that one.

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— Tim (with Lou Del Bello, Prashant Rao, and Jeronimo Gonzalez)

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