As Europe struggles with a power shortage, Asia-Pacific’s power supply remains secure mainly because the region still uses a lot of coal, data has shown.
With liquified natural gas supplies in the region redirected to Europe, power generators in Asia not only have less access to LNG but have had to opt out of buying more expensive LNG driven by strong demand in Europe.
Europe is struggling with a gas shortage as Russia cuts its supplies, forcing many countries into an energy crisis in the lead up to winter. The U.K.’s National Grid has warned of possible power cuts.
S&P Global chief energy strategist Atul Aryal said while the crunch in Europe and the war in Ukraine have forced up prices of fuel such as oil and gas globally, it has not hurt Asia’s energy generation.
According to the International Energy Agency’s latest gas report, in the first eight months of the year, Asian spot or short-term LNG imports were down 28% compared to the same time last year. Overall LNG imports fell 7% year-on-year.
Bloomberg | Bloomberg | Getty Images
“In Asia, instead of using gas, countries are using coal because coal is here, coal is domestic and less expensive,” Arya told CNBC.
“The downside is that Asia, which is growing gas consumption, has stopped, at least for now.”
Unlike Europe which relies on gas for energy creation, gas is less relevant to Asia. It only forms 11% of its power mix and imported LNG forms a small part of that with most gas coming from domestic production, Wood Mackenzie head of Asia Pacific power & renewables research Alex Whitworth said.
Coal takes up a larger portion of the mix, although it is falling, Whitworth added. The share of coal in power generation for Asia-Pacific markets is more than 60%, he said.
The deployment of renewables takes time and will not ease security concerns in the short term … therefore, we are likely to see more of a push to boost the supply of fossil fuels and therefore the reliance on these dirtier fuels.
Warren Patterson
ING Economics
Separately, Asia’s LNG imports have fallen due to high prices.
Imports to China — now the biggest global LNG importer — fell the most by 59%. The decrease in LNG imports for Japan, Pakistan and India were 17%, 73% and 22% respectively, the IEA said.
The agency explained it wasn’t just high prices deterring Chinese buyers, but also the country’s slowing economy, milder winter temperatures and strong domestic production of its own gas and coal.
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These factors have set up opportunities for more coal use in Asia, amid efforts to reduce the use of fossil fuels. For example, Korea Electric Power Corporation has started using more coal in recent months, according to the Institute for Energy Economics and Financial Analysis.
The company used about 26% more coal in July this year compared with the previous month, but that was still lower than the volume used last year, data from IEEFA showed.
“KEPCO’s data suggests that both coal and LNG power generation have fallen since May as a result of higher prices year on year. However, there is a clear increase month on month of coal power generation,” IEEFA energy finance analyst Ghee Peh said.
LNG imports in China – now the biggest global LNG importer – fell the most at 59%.
Hector Retamal | Afp | Getty Images
This follows that Korea — which, like Japan, uses more gas than other Asian markets — so to some extent, have had to compete for limited gas like Europe. But, because of the availability of domestic supplies, they are more secure than Europe, Whitworth added.
In other words, Asia’s dependence on coal and relatively less reliance on gas imports mean it has higher energy security.
In general, tighter LNG supplies and higher prices now mean that some countries would have to rely on relatively “cheaper and dirtier fuels,” ING Economics head of commodities strategy Warren Patterson said in a recent note.
“One would expect that the high fossil fuel price environment would speed up the green push from governments across Asia, particularly given that a number of these economies are large net importers of energy,” Patterson said.
“However, clearly, the deployment of renewables takes time and will not ease security concerns in the short term.”
“Therefore, we are likely to see more of a push to boost the supply of fossil fuels and therefore the reliance on these dirtier fuels.”
Hyundai’s midsize SUV is already due for a facelift, including a new design and electrified powertrain. It’s not a pure EV, but the new Hyundai Santa Fe will offer electric-only driving.
Is Hyundai launching the Santa Fe EV?
The Santa Fe is slightly bigger than the Tesla Model Y and one of Hyundai’s most popular vehicles, so an EV version would make sense, right?
Hyundai introduced hybrid and plug-in hybrid powertrains for the 2021 model year. The fifth-generation, launched last year, brought a bold new look, added power, and a new hybrid option.
Now, it’s official, the next Santa Fe will be radically different from the current model. A camouflaged prototype was spotted in South Korea with a few design updates, but that’s not all.
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Although it’s still under wraps, a sticker on the side of the vehicle confirms that this Santa Fe is actually an extended-range electric vehicle (EREV). Hyundai announced plans to launch its first EREV in 2027 during last month’s CEO Investor Day.
2026 Hyundai Santa Fe Hybrid (Source: Hyundai)
According to Hyundai, the new electrified vehicle will offer an “EV-like” driving experience, delivering over 600 miles (960 km) of combined range.
The vehicle is still equipped with a battery for pure EV driving, but it also has a gas engine that acts as a generator to extend the driving range when the battery gets low. Hyundai will use in-house batteries, which it claims will offer “full EV power performance with less than half the battery capacity.”
The video from HealerTV takes a closer look at the vehicle to show where the battery and high-voltage lines are located.
Although it’s covered, you can see a few design updates, including new head and rear lights that appear closer to the Palisade.
While Hyundai is preparing to launch the Santa Fe EREV, Genesis is also planning to introduce its first extended-range EV. We caught a sneak peek of the Genesis GV70 EREV earlier this month, which is also expected to arrive in 2027. It will follow the luxury brands’ first hybrid, the GV80, due out next year.
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In the last week, two former Tesla self-driving/Autopilot program leaders have commented on the state of autonomous driving, telling a very different story than their former boss, Elon Musk.
Elon Musk has been notoriously wrong about predicting when Tesla would solve self-driving.
The CEO first announced that “all Tesla vehicles produced since 2016 have all the hardware necessary to achieve full self-driving,” and then claimed, every year from 2019 to 2025, that Tesla would deliver the capability through software updates by the end of each year.
He reiterated the prediction recently, saying Tesla would remove the safety monitor from its robotaxi service in Austin and enable “unsupervised self-driving” in consumer vehicles by the end of 2025.
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There’s been a running gag at Tesla about engineers finding out that the company is supposed to deliver something as Musk announces it publicly – leading to a large discrepancy between what Tesla is working on and what Musk claims it will deliver.
Self-driving has been a good example.
While Musk has repeatedly claimed for the last 6 years that Tesla is on the verge of solving autonomy, the people actually working on the technology are not really in agreement. Some of them who left are starting to speak out.
In a new podcast this week, the AI expect again warned that autonomy is not solved:
He said that he would “push pack” on the idea that what we are seeing in the world of autonomy today, with Tesla and Waymo, means it is a solved problem.
Karpathy said:
“[…] I think basically what takes the long amount of time and the way to think about it is that it’s a march of nines and every single nine is a constant amount of work, so every single nine is the same amount of work, so when you get a demo and something works 90% of the time, that’s just the first nine, and then you need the second nine, and third nine, fourth nine, fifth nine, and while I was at Tesla for five years or so, i think we went through maybe three nines or two nines. I don’t know, but like multiple nines of iteration, there’s still more nines to go, and so that’s why these things take so long […]”
Some data support what the engineer is claiming, as the latest FSD Beta software updates that the Tesla team delivered under his leadership did result in a significant reduction in driver intervention, but the progress has been much less evident since:
The first few ‘9s’ deliver a much greater impact, statistically, than the next ones, even though, as Karpathy pointed out, the next ones are just as important and they are just as tricky as the previous 9s.
While he highlights that there’s still a lot of work to be done, Karpathy did say that he belives Tesla’s approach to be more scalable.
He is not the only former Tesla Autopilot program leader to speak out recently.
Sterling Anderson is recognized as the first Autopilot program leader at Tesla in 2015-2016. He now leads global products at GM, which announced this week that it plans to launch level 3 autonomous driving in 2028.
During the event announcing the new autonomous driving timeline at GM, Anderson took a jab at his former employer:
Our customers have driven over 700 million hands-free miles with Super Cruise without a single accident attributed to the technology. I led Autopilot, and you can’t say that for Autopilot. I think this is the long-term play: we build trust with customers by delivering safe products.
The GM executive favor the more careful approach to autnomous driving.
Electrek’s Take
As I often point out, there’s what Elon says, and there’s what Tesla’s lawyers say.
Elon’s own lawyers say Tesla shareholders shouldn’t listen to him, calling his statements “mere corporate puffery.” That’s an actual quote.
I do believe that Tesla will achieve unsupervised self-driving in consumer vehicles at someone point, but I don’t have any evidence that it is close to happen.
As Karpathy said, there are still several 9s to go through before it can be at 99.9999999%, which is needed for level4-5 autonomy, and each of those 9s represent years of work.
I think there’s a clear discrepenacy between how Elon talks about self-driving at Tesla and what people who are actually building those systems, like Anderson and Karpathy from 2015 to 2022, are experiencing.
Elon has been lucky to find Ashok, Tesla’s current self-driving leader, who seems to be perfectly willing to endorse his consistently wrong FSD predictions.
It’s not really surprising when you know that Ashok is the one who produce the infamous FSD demo of 2016. As Karpathy pointed out, we should be doubtful of AI demos.
Looking the prediction markets, people don’t really believe in what Elon is claiming. On Polymarket, people who have been betting on Tesla’s not delivering unsupervised self-driving this year have made a lot of money:
Elon reitereted the goal this week and the “no” answer still gained ground after his claim that Tesla was on track.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes Rivian’s new ALSO e-bike, FLIT sells a pound of caviar with its new lightweight folding e-bike, Florida wants e-bike riders to get a license, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 11:00 a.m. ET (or the video after 12:00 p.m. ET):
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