Wärtsilä Report Urges 100% Renewables Sooner, Uruguay Proves It Can Happen Now
With the COP26 conference in Glasgow coming up soon, many climate and environmental groups are urging nations to accelerate the transition to renewable energy. A new report from Wärtsilä entitled Front Loading New Zero argues that nations can adopt 100% renewable systems faster than currently planned.
It says significant cost reductions can be achieved by front loading the deployment of renewables — mostly wind and solar — and by utilizing the technologies needed to balance their inherent intermittency with energy storage and thermal generating stations. The report reveals that by accelerating 100% renewable power systems, substantial benefits are unlocked:
- Accelerating renewables so they become the main source of electricity drives down fossil fuel usage significantly reduces the levelized cost of electricity by 50% in India by 2050, while California and Germany can cut costs by 17% and 8% by 2040 respectively.
- Coal-fired power — currently 70% of generation in India and 33% in Germany — can be securely replaced by renewables coupled with energy storage and thermal power as early as 2040.
- Colossal carbon savings can be made in the short term, enabling national climate targets to be achieved. Germany can avoid 422 million tonnes of carbon dioxide by 2040 by accelerating its coal phase-out, helping it achieve a 65% reduction target compared to 1990 levels by 2030. In addition, renewables would allow Germany to avoid the need to import 550 TWh of power by accelerating the phase-out of coal.
Wärtsilä CEO Håkan Agnevall explains, “As we approach COP26, our Front-Loading Net Zero report should act as a wake-up call for leaders, as this is our last and best chance to get countries on pathways to carbon neutrality. Our modelling shows that it is viable for energy systems to be fully decarbonized before 2050 and that accelerating the shift to renewable power coupled with flexibility will help economies to thrive.
“We have all the technologies that we need to rapidly shift to net zero energy. The benefits of renewable-led systems are cumulative and self-reinforcing — the more we have, the greater the benefits — so it is vital that leaders and power producers come together now to front load net zero this decade.”
Sushil Purohit, president of Wärtsilä Energy adds, “There is no single solution that fits all markets, and this report highlights the different paths and technologies that can be utilized. The ultimate aim, however, is common to all and that is to decarbonize energy production and take the fullest advantage of our natural energy sources.”
Uruguay Shows The Way
In 2007, Uruguay had to rely on electricity imported from neighbors like Brazil and Argentina. That’s when it decided to invest heavily in wind turbines. Within 10 years, it had 4,000 MW of installed capacity. Today, 98% of the electricity for its 3.4 million inhabitants comes from renewables, including hydro. This is a nation that a recent former president of the United States liked to referred to as a “shithole country.”
Since the Kyoto Protocol was signed in 1997, Uruguay has surprised its South American neighbors with its growing list of environmental successes, including conserving native forests, protecting bio-diverse areas, and showing remarkable progress toward a promise to be carbon neutral by 2030.
To transform its energy landscape, the Frente Amplio, or FA, Uruguay’s governing party from 2005 to 2020, recognized the reality of a country dependent on importing fossil fuels while living in an ideal location for solar, wind, and hydraulic power generation. To date, the FA’s vision for an inclusive, people-oriented strategy for energy transformation has shown not only remarkable promise, but results. Throughout Uruguay, there is a strong emphasis on local energy production, particularly solar energy in rural areas that focuses on rural schools and churches far from the grid, as well as hospitals, hotels, sports clubs, and new public buildings.
With its gently rolling landscape, higher than average year-round sunshine, and hundreds of miles of ocean and river coastline, Uruguay has prime space for deploying energy alternatives. In addition, the country has identified significant opportunities for generating energy from biomass produced by the agriculture industry.
Other progressive energy projects include the country’s push toward a network of “electric highways” beginning with the coastal highway that links Colonia and Punta Este, two popular tourist cities. A network of EV charges will eventually be available throughout the entire country. While these projects are impressive, it is the country’s creation of larger energy infrastructure changes that have made the most impact.
According to Earth Island Journal, in the decade leading up to 2017, forward-looking policies and projects made Uruguay a world leader in wind power — along with Denmark, Ireland, and Germany — with more than a third of its electricity coming from wind farms. Adding hydropower generation to the mix, emissions levels in the country have fallen roughly 20 percent from their peak in 2012.
How this happened is worth noting. The country’s determination to use solar as an alternative is reflected in the country’s solar thermal mandate established in 2009 by the Solar Thermal Law, with additional provisions enacted in 2011. The law states that after 2014, all new construction and refurbishments of public buildings, hotels, health, and sports facilities in which hot water is expected to account for over 20 percent of the building’s energy consumption must obtain at least 50 percent of water heating energy from solar thermal energy. After 2012, heated pools had to use solar heating unless they used a different renewable energy source.
“The energy policy of Uruguay has focused highly on renewable energies, with the ambitious goal of incorporating them in the short term and providing attractive tax benefits for that purpose,” says Fernanda Panizza, Biz Latin Hub’s country coordinator and corporate lawyer, who counsels both foreign and national business stakeholders in the country. “Uruguay offers not only an advantageous business environment,” she notes, “but also great social stability, and considerable fiscal incentives for investments.”
A New Political Order
While Uruguay has made remarkable progress in expanding its renewable energy infrastructure, the country’s groundbreaking energy initiatives now face a new challenge from a governing party with more conservative views and a new president, Luis Lacalle Pou.
World affairs analyst Frida Ghitis, who has covered political and social issues in the region for over a decade, believes that there is good reason to look for the continuing positive trajectory of Uruguay’s progressive energy policies. “My sense is that Uruguay’s commitment to renewable energy is so deep that it transcends the left/right divide,” she says. “I don’t foresee that the center-right administration in Uruguay will backtrack on progress toward green energy.”
For more perspective on how renewable energy has become embedded in the culture of Uruguay, please take the time to review the DW video below, particularly with regard to concerns that wind turbines would disturb cows and interfere with their milk production. The result? The cows paid no attention to the turbines at all. It would be wonderful if more humans could do the same.
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Subaru is the latest Japanese automaker to announce it will “re-evaluate” its EV plans. The company is rethinking its strategy with slowing sales and a potential multi-billion-dollar hit from Trump’s auto tariffs. The tariffs might not even be Subaru’s biggest threat.
Subaru and other Japanese automakers adjust EV plans
Within the past week, Japanese automakers, including Nissan, Honda, Toyota, and now Subaru, have announced major adjustments to their EV plans.
After releasing fiscal year financial results on Wednesday, Subaru’s CEO, Atsushi Osaki, said, “We are re-evaluating our plans, including the timing of investments.” Osaki added that the move is due to “today’s rapidly changing environment” and other external factors.
Like most of the industry, Subaru is bracing for a shift under the Trump administration, which could cost it billions. With around half of its vehicles sold, the US is key for the Japanese automaker.
Subaru said Trump’s new auto tariffs could cost the company up to $2.5 billion this year. The automaker is looking at ways to boost US production, but it won’t be easy.
Tomoaki Emori, Subaru’s senior managing executive director, said (via Automotive News), “Under the current circumstances, there is probably no way not to expand in the US. We must think about how to go about that.”
Emori added that the company still has the production capacity, “so we would like to mitigate the impact of tariffs while making use of it.”
Subaru joins a growing list of automakers in pulling its earnings forecast, citing “developments in US tariff policy” make it hard to forecast.
The company’s global sales fell 4.1% to 936,000 units over the past year. In North America, deliveries also fell 4.1% to 732,000 vehicles. Subaru anticipates global sales will continue dropping to around 900,000 this year, or another 4% drop. A part of the forecast is due to downtime at its Yajima plant as Subaru prepares to produce EV batteries.
Osaki said Subaru is “making various preparations for a BEV-dedicated plant,” but added it may add a mix of gas-powered vehicles.
Subaru unveiled its second EV for the US at last month’s NY Auto Show, the 2026 Trailseeker. The Outback-sized electric SUV will go on sale in 2026, joining the smaller Solterra in Subaru’s EV lineup in the US.
Since “It is becoming more difficult to decide how to incorporate electrification into our production mix,” Emori said, Subaru is “thinking about how to incorporate hybrids and plug-in hybrids.”
Electrek’s Take
Subaru and other Japanese automakers are quickly falling behind Chinese EV leaders like BYD in some of their most important sales regions, like Southeast Asia.
Delaying new EV models and other projects will only set them further behind in the long run. Nissan is in crisis mode after scrapping plans to build a new battery plant in Japan. The facility was expected to produce lower-cost LFP batteries, which could have helped Nissan compete on costs with BYD and others.
Last week, Toyota’s President, Koji Sato, said the company will be “reviewing” its goal of selling 1.5 million electric vehicles by 2026. And just yesterday, Honda announced plans to pause around $15 billion in planned EV investments in Canada.
BYD and other EV leaders are expanding overseas to drive growth after squeezing foreign brands, especially Japanese automakers, out of China.
Next year, BYD is launching its first kei car, or mini EV, that’s expected to be a big threat to Japanese automakers. A Suzuki dealer (via Nikkei) warned, “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”
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Porsche Cars North America has integrated over 97,000 more charging stations into its app, streamlining its Porsche Charging Service.
That brings the total number of EV charging stations available to Porsche Charging Service customers in the US to 102,000, with more scheduled to be added in 2025. That means Porsche drivers can now use the My Porsche app as a one-stop shop to easily find, use, and pay at most J1772 and CCS charging stations.
“This is a significant milestone for Porsche and the electric vehicle journey,” said Timo Resch, president and CEO of Porsche Cars North America. “We know flexibility and choice are important.”
Customers in the Porsche Charging Service inclusive period – that’s the year after you buy your EV – or who sign up for Porsche Charging Service Premium can now access the ChargePoint, EV Connect, EVgo, Flo, EvGateway, and Ionna networks, in addition to chargers in the Electrify America network.
Customers in the Porsche Charging Service Base plan will receive access later this summer.
Read more: ChargePoint unveils ‘revolutionary’ V2X EV charger tech that can double Level 2 speeds
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Tesla’s (TSLA) board is reportedly exploring a new CEO pay deal for Elon Musk, who might not get back his $55 billion 2018 compensation package.
According to a new Financial Times report, Tesla’s board created a new “special committee” to explore a new CEO pay package for Musk.
The report points to the committee looking at new stock options and “alternative ways” to compensate Musk if Tesla fails to reinstate his 2018 compensation package, which was rescinded by a judge who found that Musk negotiated the deal with a board under his control and then misrepresented it to shareholders.
Musk is Tesla’s largest shareholder and therefore, he stands to benefit the most when the company does well. However, he doesn’t take a salary for his role as CEO.
Historically, He has received stock compensation packages, with the one secured in 2018 being the controversial one currently under contention.
Since then, no new CEO compensation package has been approved, and Tesla has not suggested another one as it tried to appeal the judge’s decision on the 2018 package.
The company is currently attacking the decision on two fronts with an appeal to the Delaware Supreme Court and a new legislation in Delaware to try to circumvent the decision altogether.
FT reporting that the board is working on a new compensation package with backpay could point to Tesla anticipating not being able to reinstate the original compensation package.
Robyn Denholm and Kathleen Wilson-Thompson are the board members reportedly on the new committee.
Denholm took over from Musk as Tesla’s chair, and she has recently made headlines for selling her Tesla stock options for more than $530 million over the last few years.
Electrek’s Take
It increasingly looks like Tesla won’t be able to distance itself from Musk and separate its fate from his.
Musk has masterfully convinced Tesla shareholders that the destruction of its core business, selling electric vehicles, doesn’t matter because the company is on the verge of solving self-driving – something he has claimed every year for the last 6 years and has been wrong every time.
Now that they don’t care about EVs, there’s no point in blaming Musk for killing demand and delivering a single new vehicle in 5 years, the Cybertruck, a commercial flop.
Therefore, the only thing that will make Tesla shareholders stop wanting Musk as CEO is if they stop believing his self-driving and humanoid robot claims.
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