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US and global stocks to decline this week amid mixed Fed messages, concerns about tech valuation
Wall Street stocks shook in range-bound, but choppy trading on Friday. Rising hopes for a December rate reduction from the U.S. Federal Reserve was countered with persistent concerns about lofty valuations of tech companies. The tech-laden Nasdaq had a modest decline, while the S&P 500 had a slight increase, and the Dow Jones Industrial Average was heading more decisively in the positive direction. The benchmark Treasury yields fell, the dollar remained steady and bitcoin was sharply lower. The S&P 500, the Nasdaq, and other world markets are on course to post their biggest weekly percentage losses since U.S. president Donald Trump shook the market with his major announcement of tariffs in April. The solid earnings of AI pioneers, notably Nvidia, only temporarily eased concerns that AI stocks are overpriced, and may be due for a correction. After a government shutdown that ended recently, the Fed finally got to see the current state of the job market, and it was a surprise to find the rate of unemployment ticking up. Financial markets have increased the likelihood that this will be the Fed's third and final cut in interest rates for this year. CME's FedWatch set the odds to 73.3%. This is a big jump from Thursday's 39.1%. The messages from policymakers are mixed. New York Fed president John Williams said that the Fed may still be able to cut rates in near-term, but Dallas Fed president Lorie Logan urged them to remain on hold until the central bank assessed the impact of current rates on economy. Oliver Pursche is a senior vice president of Wealthspire Advisors in New York. There are ongoing concerns over valuation, the Fed's future move and unemployment. Pursche said that "the fourth quarter has seen a rough start, even though it is usually the best for stocks, in terms of performance." The Dow Jones Industrial Average increased 200.09 points or 0.44% to 45,952.35, while the S&P 500 gained 3.54 points or 0.04% to 6,541.66. Meanwhile, the Nasdaq Composite dropped 81.74 or 0.38% to 21,993.43. European stocks fell on renewed concerns over stretched technology valuations. The MSCI index of global stocks fell by 4.07 points or 0.42% to 964.46. The pan-European STOXX 600 fell by 0.44% while Europe's FTSEurofirst 300 fell by 0.43%. Emerging market stocks dropped 2.81% to 1333.04. MSCI's broadest Asia-Pacific share index outside Japan closed at 684.69 - a 2.83% decrease. Japan's Nikkei dropped 2.40% to 48625.88. The dollar was expected to gain a little each week, while the yen gained support after Japanese officials intensified their verbal interventions to stop the currency's fall. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.12%, to 100.28. However, the euro fell by 0.22%, at $1.1502. The dollar fell 0.73% against the Japanese yen to 156.33. Cryptocurrencies fell to multi-month lows as a result of a wider flight away from riskier assets. Bitcoin dropped 5.08% to $82 789.98. Ethereum fell 6.44% to 2,692.87. U.S. Treasury yields fell as Fed rate-cut bets increased. The yield on the benchmark U.S. 10 year notes dropped 3.9 basis points from 4,104% at late Thursday to 4.065%. The 30-year bond rate fell 1.2 basis point to 4,7199%, from 4,732% at the end of Thursday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Fed fell by 5.3 basis points, to 3.505% from 3.558% at late Thursday. The U.S. has been pushing for a peace agreement between Russia and Ukraine. U.S. crude dropped 2.2% to $57.71 per barrel. Brent was down to $62.21 per barrel on the same day, a drop of 1.81%. Gold recovered from earlier losses following dovish Fed remarks that increased the likelihood of a rate cut in December. Gold spot fell by 0.31%, to $4.064.19 per ounce. U.S. Gold Futures rose by 0.35% to $4.070.90 per ounce.
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Gold prices fall as traders increase bets on December rate cuts
After falling more than 1% in the previous session, gold prices recovered on Friday as traders increased bets that interest rates will fall by December following Fed comments. As of 0952 am, spot gold had fallen 0.1%, to $4,071.74 an ounce. After falling by more than 1% in the earlier session, ET (1452 GMT) was set to be the next trading day. Bullion will lose 0.2% per week. U.S. Gold Futures for December Delivery rose by 0.2%, to $4.068.50 an ounce. John Williams, the New York Fed president, said on Friday that the U.S. Central Bank could still reduce interest rates in near-term without jeopardizing the inflation target. Jim Wyckoff said that the comments were "certainly supportive" and gave gold bulls some good news early on today. The traders now expect a 70% probability of a Fed rate cut during the next meeting. This is up from 46% earlier that day. The delayed jobs report revealed a mixed picture of the labor market. Nonfarm payrolls rose by 119,000, far above expectations for a 50,000 increase, while unemployment reached a four-year peak. In low-interest rate environments, gold, which is a non-yielding investment, does well. Lorie Logan, the Dallas Federal Reserve president, called for the rate to be held "for a while." The traders are also closely watching the U.S. Stock Markets. "If the stock market rallies today, this will probably put downward pressure on gold due to the increased risk appetite on the marketplace," Wyckoff said. Wall Street's major indexes rose on Friday, as renewed hopes of a rate cut in the United States boosted tech stocks after a rout last session. The physical gold market in major Asian markets has remained low this week due to the volatility of rates. This deterred buyers from purchasing. The spot price of silver XAG= dropped 2.1%, to $49.54 an ounce. Platinum XPT= increased 0.1%, to $1.513.70. Palladium XPD= declined 1.3%, to $1.360.63. (Reporting and editing by Shreya Biwas in Bengaluru)
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New technology could help COP30 achieve its Amazon rainforest conservation goals
COP30 talks on climate change will focus on protecting forests Amazon is using technology to protect the environment A project that uses drones and AI to restore degraded forest Clar NiChonghaile & Rosalind Thacker The mangrove trees, which resemble upside-down tree branches and extend into the waters to provide habitat for crabs and fish, are under threat. Two years ago (coastal erosion destroyed the homes of 15 residents living here on the coast). "It was very strong," Patricia Farias Ribeiro said, a local resident. Researchers are responding by using sensors that cost little to nothing to measure air temperature, rainfall, and tide levels, to monitor the island and guide conservation efforts, as well as provide useful information to residents, such a optimal time to fish. Lisangela Cassiano, of the government park service ICMBio, said, "Over time you can identify the changes that are taking place and we will correlate this with the biodiversity data." Cassiano is responsible for the RESEX SOURE marine reserve, which is one of the three sites that ICMBio, in collaboration with the International Union for Conservation of Nature (Brazil), has chosen to install sensors developed at the Federal University of Para. According to a study published in Ocean and Coastal Research, the island has lost 150 meters of coast due to erosion during the last 16 years. This is partly caused by the sea level rise as a result of climate change. The host president, Luiz inacio Lula da Sola, has placed the protection of forests at the forefront of his agenda. The summit was used by him to launch a multilateral fund, the Tropical Forests forever Facility (TFFF), whose goal is to protect biomes of vital importance like the Amazon rainforest. Brazil can be proud of its progress. According to a report from the Brazilian space agency Inpe, deforestation fell by 11.08% between July 2025 and the same period last year, reaching the lowest level since 2014. Re.green, a Brazilian company specializing in ecological restoration that uses AI and technology to restore the Amazonian and Atlantic forest in Brazil, is already using new technologies. Thiago Piccolo, CEO of Thiago Group, aims to restore forests and generate revenue from carbon credits as well as sustainable timber. His company won the Earthshot Prize in 2025, an prestigious award for environmental protection created by Prince William of Britain. It received a grant of PS1 million ($1.31million) to further its work. Re.green was founded in 2021 and has since purchased and leased over 37,000 hectares (over 91,000 acres), which includes pastures for restoration, degraded forest and standing forests. Restoration is underway on 17,000 hectares (42,000acres) of land, and 12,000 hectares (30 acres) have been completed. Carbon credits are sold to major corporations such as Microsoft and Nestle. Picolo explained that "we restore areas that have been deforested decades or even centuries ago and the original ecosystem which was there before." DRONES IN AMAZON Re.green uses drones to survey difficult-to-access land. It then analyzes the data using AI, and other technologies, to determine which areas will yield the greatest returns in terms of biodiversity and climate, and for local communities. They have a conversion rate of just 1.5%. This means that they only close on two properties out of 100 they evaluate because of factors such as environmental viability or land prices. The only landowners they buy from are cattle ranchers and they do not use land owned by the community. Picolo said that technology can help them achieve scale by sorting through large datasets. Drones also boost efficiency by planting seeds or killing exotic grasses which degrade land. He said, "The holy-grail for us is to be able do this with high efficiency and be able access land that can't be accessed by traditional tractors or agricultural implements." Picolo stated that re.green projects create jobs for local communities in science and technology and encourage indirect entrepreneurship. This is done by allowing bee-producing companies to use land on which local people can harvest acaiberries and by allowing locals to harvest the berries. Helping Nature Recover Picolo said that the model of restoration used depends on local context. Some areas may require intensive intervention, such as planting more trees in areas that are severely degraded. Other areas will regenerate naturally. He said that understanding where to apply each model was fundamentally important. "If we don't invest enough and rely on nature to regenerate, you may end up with an inferior type of forest. We need to apply science and technology to our current practices to figure out how we can make forests grow faster. Making technology more accessible is one way to achieve this. Renan Peixoto Rosario is a researcher at the Federal University of Para who worked on the Marajo Island Project. He said that the technology system was created to be inexpensive, easy to maintain, and easily replicated in protected areas. He said that the system could be five to twenty-five times cheaper than commercially available solutions. This is due to its modular design, open-source hardware and 3D printing. He said that the goal was to make remote coastal communities able to afford monitoring. Context Links https://www.context.news/nature/scientists-in-brazil-starve-trees-of-water-to-test-amazons-limits https://www.context.news/nature/tipping-point-the-amazon-rainforests-vital-signs https://www.context.news/nature/q-and-a-bezos-earth-fund-ceo-on-how-ai-could-help-climate-and-nature
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Lilly is the first pharmaceutical company to reach the trillion-dollar club in response to weight-loss boom
Eli Lilly's market value surpassed $1 trillion on Friday. It is the first pharmaceutical company to join the exclusive club of tech giants, and it highlights its growth as a weight loss powerhouse. The explosive growth in the weight loss drug market has been a major factor behind the more than 35% increase in the stock price of the company this year. Obesity treatments, once considered a niche, are now among the most lucrative segments of healthcare. Demand is steadily increasing. Novo Nordisk was the first to market, but Lilly’s drugs Mounjaro & Zepbound have grown in popularity & helped Lilly surpass its competitor in prescriptions. Lilly's obesity and diabetes business generated combined revenues of over $10.09 billion in the last reported quarter. This represents more than half its total revenue, which was $17.6 Billion. Kevin Gade is the chief operating officer of Lilly shareholder Bahl and Gaynor. He spoke ahead of this milestone. Wall Street predicts that the global weight-loss drugs market will be worth $150 billion in 2030. Lilly and Novo are expected to control the majority of the projected sales. Investors now focus on Lilly’s orforglipron oral obesity drug which is expected be approved in early 2019. Citi analysts wrote in a note published last week that the latest generation GLP-1 drugs are already a "sales phenomena" and orforglipron will benefit from "the gains made by its predecessors who were injectables." Lilly's recent agreement with the White House, which will lower prices for its weight loss drugs and also include planned investments in expanding drug production bodes well for its future growth. James Shin, Director of Biopharma Equity Analysis at Deutsche Bank said that Lilly has started to resemble "the Magnificent Seven", referring to tech giants such as Nvidia and Microsoft, which have fueled much of this year's market returns. Investors once regarded it as a member of this elite group, but after some disappointing earnings and headlines, it fell out of favor. He added that it now appears poised to return, perhaps even as a viable alternative for investors. Recent concerns and weakness of some AI stocks have also contributed to this. Analysts and investors will be watching to see if Lilly is able to maintain its current growth, as the prices of Mounjaro, Zepbound, and its diversified pipeline come under pressure. They'll also be looking at whether its dealmaking and scale-up plan can offset margin pressure. (Reporting and editing by Sriraj Kalluvila and Devika Syamnath in Bengaluru.
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G20 envoys have agreed on a draft declaration of leaders without the US at the summit, sources claim
Four sources with knowledge of the situation said that G20 envoys had agreed on a draft declaration for leaders ahead of this weekend’s summit in Johannesburg, without U.S. involvement. The Trump administration has announced that it will not attend the summit due to disagreements with South Africa, the host country. Some analysts saw an opportunity in South Africa's hosting the G20 despite Trump's anti-multilateralism. No one has revealed the contents of the declaration. On Thursday, President Cyril Ramaphosa stated that South Africa is in talks with the United States about its possible participation The White House denied that this was the case, but it did happen. Trump rejected the agenda of the host nation for the summit on November 22-23, which included promoting solidarity and assisting developing nations to adapt to more severe weather disasters and transition to clean energy.
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Lukoil's trading arm shrinks rapidly under Western sanctions
Five sources said that U.S. sanctions have dismantled what is left of Lukoil Litasco. Litasco was once Russia's largest oil trader, and a competitor to Swiss oil houses and major oil companies. Washington is trying to stop Moscow from funding its war in Ukraine. The new measures also target the state-owned Rosneft. They went into effect Friday. The measures have put Lukoil’s global operations in limbo - from oilfields across the Middle East, to fuel pumps and refining plants throughout Europe. Sources said that Litasco, cut off from the global system of finance, has fired most traders and operational employees, and offered a three-month severance package and bonuses. Now, oil trading is impossible without billions in credit. Only a few employees will be left to manage administrative tasks. Litasco or Lukoil didn't immediately respond to a comment request. LITASCO SHUTS DOWN GLOBAL OFFICES Three sources claim that traders of crude oil and other employees will be leaving Litasco's Swiss headquarters at Geneva by the week's end. A fourth source stated that the office will be closed completely by the end February. Two sources confirmed that the majority of the 20 traders and operational staff in the U.S. office in Houston left on Thursday. Few employees will remain to complete any remaining obligations with customers and suppliers, according to the sources. One source stated that employees in the UAE offices at Dubai have received notice, but will still be employed until February. Litasco, founded in 2000, was one of the largest oil trading companies in the world in its heyday. It traded barrels from third parties and moved oil for Lukoil assets all over the globe. A SHADOW FLEET COULD BE LIFELINE Litasco traded a little under 4 million barrels of crude oil and fuel per day in 2019. This was about 4% global consumption. The company competed against oil giants and trading companies alike, poaching their top talent. Adi Imsirovic, former head of oil trade at Gazprom Trading and consultant Surrey Clean Energy, says that the winding down of Litasco will further drive Russian oil traders underground. Moscow heavily relies on an aging shadow fleet of tankers for shipping crude oil despite sanctions. Imsirovic stated that it is possible to bounceback, but money, patience and time are required. Due to U.S. sanctions and EU sanctions, Russia was forced to redirect most of its oil to Asia. Litasco suffered a major blow in 2022, when the West clampeddown on Russia's petroleum industry due to Moscow's invasion in Ukraine. However, it has been trying to rebuild its operations by hiring U.S. traders as well as securing credit. "Litasco has to shut down due to the sanctions." Energy economist Philip Verleger said that Russian oil would get to refiners in some way, but traders needed access to dollars and to the global financial system. (Editing by Dmitry Zhdannikov & Louise Heavens).
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Israeli forces kill 2 Palestinian teenagers in West Bank violence
Residents said that Israeli forces killed two Palestinian teens during an overnight raid in a town near Ramallah, in the Israeli-occupied West Bank. Violence is escalating in the area, with more and more deaths. According to the Palestinian Authority, which exercises limited autonomy in the West Bank, the Palestinian Authority's health ministry, forces shot Sami Ibrahim Mashaikha (16) and Amr Khaled al-Marboua (18) in Kfar-Aqab. Both died later from their injuries. According to WAFA, the Palestinian news agency, Israeli forces raided Kfar Aqab over night. They deployed forces on the streets and atop the buildings of the town before opening fire. Israel Police released a statement in which it stated that during an operation conducted in Kfar Aqab, its forces had opened fire on four individuals who, according to the police, posed a direct threat. Medical teams evacuated the individuals, according to police. According to the police, this operation was directed at "hostile elements" who were trying to cause violence and harm to security forces. During the operation, police were attacked by people throwing stones and using fireworks. Police reported that heavy gunfire was heard as well, but its source could not be identified. The West Bank is seeing increasing violence despite the ceasefire that was reached on October 10. In the last two years, Palestinians have been subjected to tighter military restrictions that limit their freedom of mobility. Israeli settlers are also increasingly attacking Palestinians. Residents in Huwara, Abu Falah and nearby communities reported that overnight, settlers set fire to property, burning it, near Nablus. Israeli soldiers have responded to reports that Israelis were throwing rocks at Palestinian vehicles in Huwara and igniting property. The military released a statement saying that Israeli soldiers searched the area and found no suspects. Benjamin Netanyahu, the Prime Minister, said that he will meet with cabinet members to ensure Israelis who are involved in attacks against Palestinians, are brought to trial. He called those responsible for such acts a "small extremist group". In recent months, videos widely shared on social networks showed dozens of settlers attacking Palestinian West Bank Communities, sometimes with wooden clubs, and other times guns. According to a count, Israeli forces have so far killed six Palestinians under 18 in the West Bank this month. The military reported that in one incident near Ramallah where the Palestinian Authority has its headquarters, two 16-year old youths hurled petrol-bombs onto a road for civilians. The claim could not be independently verified. The military released an unreliable nine-second video, which it claimed showed the teenagers throwing petrol bombs. The military refused to release the entire video or to answer questions regarding why the soldier opened fire instead of attempting to arrest the two teenagers. In a stabbing and car-ramming attack on Tuesday in the West Bank by Palestinian attackers, an Israeli was killed and three others were injured. The Israeli soldiers then shot and killed them. Netanyahu called the incident an attack by terrorists. No one has claimed responsibility for the attack. (Written by Alexander Cornwell, edited by Mark Heinrich.
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Africa G20 hosts bids to become a mineral powerhouse
South Africa hosts the first African G20 Trade talks focus on valuable minerals Experts: Local processing is key to creating jobs By Kim Harrisberg Mineral experts and African leaders are in agreement with the protesters. The G20 summit of global leaders is an opportunity for the minerals, such as lithium and cobalt, to be used to the benefit of the continents where they can be found. On the sidelines of the protest, Lazola Kathi, campaign manager for Fossil Free South Africa's Fossil Ban initiative, said: "It is important that the G20 includes communities, so that proper conversations about the development in Africa can be held." What this can look like is job creation, skills transfer... our own energy sector", said Kati as protesters from Uganda to Zimbabwe sang and held placards. This can be a job creation program, a skills transfer program... or our own energy sector," Kati said as protesters from Uganda and Zimbabwe sang while holding placards. Africa has 30% of the critical minerals required for the switch from fossil fuels and clean technologies, as well the digital infrastructure needed for AI data centres. Africa has suffered from what is known as "the resource curse" for centuries. This paradox occurs when abundant natural resources cause conflict, corruption, and slower economic development. For the first time, the G20, a group of leaders who represent 80% the global economy, will be hosted in Africa. In 2023, the African Union became a member permanent. Experts believe this gives African governments greater leverage to demand global investment in local mineral processing for jobs as the demand surges. Maxwell Gomera said, "Think about it this way. Selling raw cobalt would be like exporting flour instead of bread" during an address at a Johannesburg conference this month. He added, "The world has entered a new race for Africa's mineral resources." "We have to make sure that the new green orders doesn't turn into the old colonial orders." INDUSTRIALISATION MESSENGE Deprose Manyena, Programme Director at Open Society Foundations, a human-rights funding organization, stated that the continent must negotiate as a group to leverage its bargaining power. Muchena said, "The African Union has become a G20 member, so even if South Africa leaves the stage, AU will continue to spread the industrialisation message." The Africa Green Minerals Strategy is a strategy that was endorsed by the African Union (AU) in 2025 to promote industrialisation of minerals across the continent. The document outlines responsible mining, the need for skill development, and how to attract investment in local mineral processing or beneficiation. According to World Bank research, more than a dozen African countries, including the Democratic Republic of Congo, Nigeria, and Namibia have either restricted or banned such exports to encourage beneficiation. The U.N. reports that Zambia and the DRC have created special economic zones for the manufacture of batteries using local minerals. The future of minerals that are critical to Africa is one of three themes of the South African G20 Summit. According to the International Energy Agency (IEA), a global energy organization, the continent only captures less that 5% of the total value created by energy technologies. Cyril Ramaphosa, the South African president, signed an important minerals agreement with the European Union that he described as "unprecedented" on Thursday. He stated that South Africa would increase its mineral processing in order to "move along the value chain". "RESOURCES ARE LIMITED" The G20 will be held in South Africa, but key players such as U.S. president Donald Trump and Chinese president Xi Jinping won't be attending. Both countries have a key interest, capital and investment in critical global minerals. Kati, from Fossil Free South Africa, said: "It's better to have Trump and his likes absent." She said, "This is the moment where we can define investment and development so that when they return we will be ready with a programme African-defined." Muchena, of OSF, says that mining is not the only element in Africa's development. He said that despite the G20's focus on critical minerals, mining is a short-term activity. He said: "We know that resources are finite, and at some point demand for essential minerals will decrease due to technologies which could replace this need. Diamonds have been replaced by synthetics in the same way." It was important to make the most of these financial benefits during the life spans of mines. Muchena estimates Africa will export close to $250 billion in revenue between 2023-2024 from its essential minerals. $1.6 trillion is expected over the next 25 years. "If these numbers are correct, then they should find their way into communities to transform them and provide energy directly," said he, referring to the 600,000,000 Africans who do not have reliable electricity. Raphael Bahebwa, a Congolese activist and bishop from the Congolese Solidarity Campaign, spoke at the protest about the mining abuses that are occurring in his country, where 70% of the cobalt found on the planet is mined. "Everyone who carries a cellphone carries the blood of our People," said Bahebwa in reference to the exploitative mine practices that lead to the cobalt used in the majority of cellphones.
Vietnam eyes greener power however rely on coal to prevent blackouts
Lights are off and a/c is down at the headquarters of Vietnam's staterun electrical energy provider EVN as the nation's. leading power utility tries to lead by example to prevent a repeat. of in 2015's debilitating blackouts, a main tells visitors.
But numerous services around Vietnam's capital Hanoi. seem ignoring the call to save power, keeping. decorative but otherwise purposeless neon lights on the exterior. of skyscrapers on all night.
The difficulties in cutting usage highlight. the challenges facing Vietnam a year after abrupt failures triggered. losses of hundreds of millions of dollars to multinational. producers with investments in the Southeast Asian nation.
Vietnam is pursuing a patchwork agenda of energy-saving. steps, grid upgrades, regulatory reforms and a huge. boost of coal power as it looks for to avoid electrical energy. shortfalls, according to federal government information and interviews with. authorities and specialists.
But Trinh Mai Phuong, EVN's interactions director,. discusses during a media check out that even the greatest. infrastructure upgrade underway, a new $1 billion transmission. line linking the centre of the country to the extremely. industrialised north that was hard struck by blackouts in 2015,. might not suffice.
I would not say it is a video game changer, he said of the line. that could be completed as early as this month, keeping in mind power. usage is expected to hit record highs in the coming weeks. as the nation braces for more heatwaves.
The skyrocketing power demand is making it progressively challenging. for Vietnam to fulfill environment modification commitments while supplying. enough power to please large financiers such as Samsung. Electronic devices, Foxconn and Canon.
Broader sector-wide reforms are required over the longer term,. foreign financiers and analysts said.
EMERGENCY STEPS
In the short term, Vietnam is banking primarily on coal to. provide adequate dependable electricity. It may be simply enough - or. not - but in any case it may indicate a blow to the country's. dedications to decrease dependence on nonrenewable fuel sources.
Coal usage rose enormously in the very first 5 months of 2024,. with coal-fired power plants accounting usually for 59% of. electricity output, going beyond 70% some days, according to EVN. data.
That was up from nearly 45% in the same period last year and. 41% in 2021, when Vietnam started drafting plans to cut coal that. persuaded international donors to dedicate $15.5 billion to assist. phase out the fuel.
Thanks to a new coal-fired power plant that came online in. 2023, coal represented 33% of overall installed capacity last. year, up from 30.8% in 2020, taking Vietnam further away from. the goal of reducing that to 20% by 2030.
Energy conservation is another crucial pillar of the plan. EVN. and its regional systems have actually encouraged energy-hungry customers,. including foreign manufacturers, to conserve power with tailored. measures, specifically in peak hours.
But that dangers Vietnam's credibility as a dependable place for. financial investment and could affect future manufacturing expansion. plans, according to foreign investors who declined to be named. because they were not authorised to speak to media.
The matter ought to be attended to by solving generation and. distribution problems, and not from the intake side, 2. foreign financiers said.
Vietnam's industry ministry did not reply to a request for. comment.
CLEANER OPTIONS
Vietnam is using just a fraction of its set up solar and. onshore wind capacity due largely to administrative hurdles.
It has not approved policies to kick-start offshore wind. jobs and hold-ups dog projects to build power plants sustained. by imported liquefied natural gas, which is cleaner than coal.
The 4 energy sources together must account for more. than 40% of installed capacity by 2030, according to the. government's plans, though analysts are sceptical.
Hydropower is projected to fall to less than 20% of. set up power generation by the end of years from more than. 30% in 2020.
But some capability is being added in the north where needs. are higher.
Among Vietnam's biggest hydropower plants at Hoa Binh is. adding 2 General Electric turbines to its existing. eight, which will enhance its overall capacity to 2.4 gigawatts from. less than 2 GW now by the 2nd half of 2025, said Dao Trong. Sang, EVN's supervisor of the growth job, throughout a visit to. the dam.
The Hoa Binh plant, integrated with the new transmission. line that brings electrical energy to the north from separate plants,. may include 8% capability to the power-hungry north.
REFORMS NEEDED
The power crisis can not be fixed without long-awaited. reforms, experts state, though progress to date has actually been slow.
In April, the market ministry issued an updated. methodology for determining electricity costs, a step towards. possibly restoring jobs stuck for several years due to the fact that of an absence of. clarity about tariffs.
However, the approach might force developers to take on. extreme risk, complicating their access to fund, stated a. Vietnam-based official who decreased to be called because they. were not authorised to speak to media.
A different draft decree making it possible for makers to buy. electricity directly from producers is viewed as close to approval. after years of internal argument, according to a number of analysts.
The use of direct power purchase contracts (DPPAs) could. make it simpler for international business to prevent greater. tariffs on exports and increase using renewables to help them. meet environmental, social and governance requirements.
But the DPPA guidelines require to be integrated with other reforms,. such as clearer arrangements to straight connect factories to. power-generation jobs, the authorities stated.
(source: Reuters)