ABB – ABB signs €500 million EIB financing to further drive smart and sustainable electrification technologies

EMR Analysis

More information on ABB: See full profile on EMR Executive Services

More information on Björn Rosengren (Chief Executive Officer, ABB): See full profile on EMR Executive Services

More information on Timo Ihamuotila (Chief Financial Officer and Member of the Executive Committee, ABB): See full profile on EMR Executive Services

 

More information on EIB (European Investment Bank): https://www.eib.org/en/index.htm + The European Investment Bank is the lending arm of the European Union. We are the biggest multilateral financial institution in the world and one of the largest providers of climate finance. Since its establishment in 1958, the EU bank has invested over a trillion euros. While climate action is a part of everything we do, our activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion.

The EIB works closely with other EU institutions to foster European integration, promote the development of the EU and support EU policies in over 160 countries around the world.

Through EIB Global, set up in 2022 to increase the impact of our development finance, we help address global challenges and create growth and opportunity in all continents.

In 2022, 58% of all EIB financing was in climate and environmental action, amounting to some €36.5 billion. The EIB Group as a whole, has supported €222 billion of climate action and environmental sustainability investments over the last two years. Other EIB priorities are: development, innovation and skills, small and medium-sized businesses, as well as infrastructure and cohesion.

More information on Dr. Werner Hoyer (President, EIB): https://www.eib.org/en/about/governance-and-structure/statutory-bodies/management-committee/members/werner-hoyer.htm + https://www.linkedin.com/in/werner-hoyer-42a4a2120/ 

More information on Ambroise Fayolle (Vice President, EIB): https://www.eib.org/en/about/governance-and-structure/statutory-bodies/management-committee/members/ambroise-fayolle.htm + https://www.linkedin.com/in/ambroise-fayolle/ 

 

More information on The European Union: https://european-union.europa.eu/index_en + The European Union’s institutional set-up is unique and its decision-making system is constantly evolving. The 7 European institutions, 7 EU bodies and over 30 decentralised agencies are spread across the EU. They work together to address the common interests of the EU and European people. 

In terms of administration, there are a further 20 EU agencies and organisations which carry out specific legal functions and 4 interinstitutional services which support the institutions.

All of these establishments have specific roles – from developing EU laws and policy-making to implementing policies and working on specialist areas, such as health, medicine, transport and the environment.

There are 4 main decision-making institutions which lead the EU’s administration. These institutions collectively provide the EU with policy direction and play different roles in the law-making process: 

• the European Parliament (Brussels/Strasbourg/Luxembourg)
• the European Council (Brussels)
• the Council of the European Union (Brussels/Luxembourg)
• the European Commission (Brussels/Luxembourg/Representations across the EU)

Their work is complemented by other institutions and bodies, which include:

• the Court of Justice of the European Union (Luxembourg)
• the European Central Bank (Frankfurt)
• the European Court of Auditors (Luxembourg)

The EU institutions and bodies cooperate extensively with the network of EU agencies and organisations across the European Union. The primary function of these bodies and agencies is to translate policies into realities on the ground.

Around 60,000 EU civil servants and other staff serve the 450 million Europeans (and countless others around the world).

Currently, 27 countries are part of the EU: https://european-union.europa.eu/principles-countries-history/country-profiles_en 

More information on The European Commission: https://ec.europa.eu/info/index_en + The Commission helps to shape the EU’s overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. It also plays a significant role in supporting international development and delivering aid.

The Commission is steered by a group of 27 Commissioners, known as ‘the college’. Together they take decisions on the Commission’s political and strategic direction.

A new college of Commissioners is appointed every 5 years.

The Commission is organised into policy departments, known as Directorates-General (DGs), which are responsible for different policy areas. DGs develop, implement and manage EU policy, law, and funding programmes. In addition, service departments deal with particular administrative issues. Executive agencies manage programmes set up by the Commission.

Principal roles in law: The Commission proposes and implements laws which are in keeping with the objectives of the EU treaties. It encourages input from business and citizens in the law-making process and ensures laws are correctly implemented, evaluated and updated when needed.

More information on Ursula von der Leyen (President, The European Commission): https://ec.europa.eu/commission/commissioners/2019-2024/president_en + https://www.linkedin.com/in/ursula-von-der-leyen/ 

More information on the EU Green Deal: https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en +

• The European Green Deal will transform the EU into a modern, resource-efficient and competitive economy, ensuring:
  • no net emissions of greenhouse gases by 2050
  • economic growth decoupled from resource use
  • no person and no place left behind
• The European Green Deal provides an action plan to:
  • boost the efficient use of resources by moving to a clean, circular economy
  • restore biodiversity and cut pollution
• The plan outlines investments needed and financing tools available. It explains how to ensure a just and inclusive transition.
• The EU aims to be climate neutral in 2050. We proposed a EuropeanClimate Law to turn this political commitment into a legal obligation.

 

More information on IEA (International Energy Agency): https://www.iea.org + The IEA is at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries provide secure and sustainable energy for all.

The IEA was created in 1974 to help co-ordinate a collective response to major disruptions in the supply of oil. While oil security this remains a key aspect of our work, the IEA has evolved and expanded significantly since its foundation.

Taking an all-fuels, all-technology approach, the IEA recommends policies that enhance the reliability, affordability and sustainability of energy. It examines the full spectrum issues including renewables, oil, gas and coal supply and demand, energy efficiency, clean energy technologies, electricity systems and markets, access to energy, demand-side management, and much more.

Since 2015, the IEA has opened its doors to major emerging countries to expand its global impact, and deepen cooperation in energy security, data and statistics, energy policy analysis, energy efficiency, and the growing use of clean energy technologies. 

More information on Net Zero: https://www.iea.org/reports/net-zero-by-2050 + The number of countries announcing pledges to achieve net zero emissions over the coming decades continues to grow. But the pledges by governments to date – even if fully achieved – fall well short of what is required to bring global energy-related carbon dioxide emissions to net zero by 2050 and give the world an even chance of limiting the global temperature rise to 1.5 °C. This special report is the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth. It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture and behavioral changes in reaching net zero.

More information on Dr. Fatih Birol (Executive Director, International Energy Agency): https://www.iea.org/contributors/dr-fatih-birol

 

 

 

EMR Additional Notes:

• Global Warming: Global warming is the long-term heating of Earth’s climate system observed since the pre-industrial period (between 1850 and 1900) due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels in Earth’s atmosphere.
• Global Warming Potential (GWP): 
  • The heat absorbed by any greenhouse gas in the atmosphere, as a multiple of the heat that would be absorbed by the same mass of carbon dioxide (CO2). GWP is 1 for CO2. For other gases it depends on the gas and the time frame.
  • Carbon dioxide equivalent (CO2e or CO2eq or CO2-e) is calculated from GWP. For any gas, it is the mass of CO2 which would warm the earth as much as the mass of that gas. Thus it provides a common scale for measuring the climate effects of different gases. It is calculated as GWP times mass of the other gas. For example, if a gas has GWP of 100, two tonnes of the gas have CO2e of 200 tonnes.
  • GWP was developed to allow comparisons of the global warming impacts of different gases.
• Greenhouse Gas (GHG):
  • A greenhouse gas is any gaseous compound in the atmosphere that is capable of absorbing infrared radiation, thereby trapping and holding heat in the atmosphere. By increasing the heat in the atmosphere, greenhouse gases are responsible for the greenhouse effect, which ultimately leads to global warming.
  • The main gases responsible for the greenhouse effect include carbon dioxide, methane, nitrous oxide, and water vapor (which all occur naturally), and fluorinated gases (which are synthetic).

• Hydrofluorocarbons (HFC):
  • Hydrofluorocarbons (HFCs) are a group of industrial chemicals primarily used for cooling and refrigeration. HFCs were developed to replace stratospheric ozone-depleting substances that are currently being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer.
  • Many HFCs are very powerful greenhouse gases and a substantial number are short-lived climate pollutants with a lifetime of between 15 and 29 years in the atmosphere.
• GHG Protocol Corporate Standard Scope 1, 2 and 3: https://ghgprotocol.org/ + The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organizations preparing a corporate-level GHG emissions inventory. Scope 1 and 2 are mandatory to report, whereas scope 3 is voluntary and the hardest to monitor.
  • Scope 1: Direct emissions:
    • Direct emissions from company-owned and controlled resources. In other words, emissions are released into the atmosphere as a direct result of a set of activities, at a firm level. It is divided into four categories:
      • Stationary combustion (e.g fuels, heating sources). All fuels that produce GHG emissions must be included in scope 1.
      • Mobile combustion is all vehicles owned or controlled by a firm, burning fuel (e.g. cars, vans, trucks). The increasing use of “electric” vehicles (EVs), means that some of the organisation fleets could fall into Scope 2 emissions.
      • Fugitive emissions are leaks from greenhouse gases (e.g. refrigeration, air conditioning units). It is important to note that refrigerant gases are a thousand times more dangerous than CO2 emissions. Companies are encouraged to report these emissions.
      • Process emissions are released during industrial processes, and on-site manufacturing (e.g. production of CO2 during cement manufacturing, factory fumes, chemicals).
  • Scope 2: Indirect emissions – owned:
    • Indirect emissions from the generation of purchased energy, from a utility provider. In other words, all GHG emissions released in the atmosphere, from the consumption of purchased electricity, steam, heat and cooling. For most organisations, electricity will be the unique source of scope 2 emissions. Simply stated, the energy consumed falls into two scopes: Scope 2 covers the electricity consumed by the end-user. Scope 3 covers the energy used by the utilities during transmission and distribution (T&D losses).
  • Scope 3: Indirect emissions – not owned:
    • Indirect emissions – not included in scope 2 – that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions are linked to the company’s operations. According to GHG protocol, scope 3 emissions are separated into 15 categories.

 

• Switchgears:
  • Broad term that describes a wide variety of switching devices that all fulfill a common need: controlling, protecting, and isolating power systems. This definition can be extended to include devices to regulate and meter a power system, circuit breakers, and similar technology.
  • Switchgear contains fuses, switches, and other power conductors. However, circuit breakers are the most common component found in switchgear.
  • Performs the function of controlling and metering the flow of electrical power in addiction to acting as interrupting and switching devices that protects the equipment from damage arising out of electrical fluctuations.
  • There are three types of switch gears namely LV (Low voltage), MV (Medium voltage) and HV (High voltage) Switchgear.
• Circuit Breakers:
  • Mechanical electrical switch designed to protect an electrical circuit from damage caused by overcurrent/overload or short circuit. Its basic function is to interrupt current flow after protective relays detect a fault.
  • By definition a circuit breaker is an electrical safety device, a switch that automatically interrupts the current of an overloaded electric circuit, ground faults, or short circuits.
• Fuses:
  • Single time mechanical circuit interruption in an over-current situation through fusion of a graded electrical conductor. Employed in 30KV to 100KV range.
  • Electrical safety device that operates to provide overcurrent protection of an electrical circuit. Its essential component is a metal wire or strip that melts when too much current flows through it, thereby stopping or interrupting the current.
• ACB (Air Circuit Breakers): 
  • Uses air as insulating medium.
  • Air circuit breaker is a circuit breaker for the purpose of protecting low voltage circuit, mainly for energizing and cutting off high current
• VCB (Vacuum Circuit Breakers): 
  • Vacuum is used as the means to protect circuit breakers.
  • Circuit breaker where the arc quenching takes place in a vacuum medium. The operation of switching on and closing of current carrying contacts and interrelated arc interruption takes place in a vacuum chamber in the breaker which is called a vacuum interrupter.
• AIS (Air Insulated Switchgears):
  • Air is used for insulation in a metal-clad system
  • Secondary power distribution device and medium voltage switchgear that helps redistribute the power of a primary power distributor powered by a high voltage distribution transformer. AIS controls, protects and isolates electrical equipment in power transmission and distribution systems.
• GIS (Gas Insulated Switchgears): 
  • All working components assembled under SF6 (Sulfur Hexafluoride HV Switchgears) gas-tight casing.
  • Compact metal encapsulated switchgear consisting of high-voltage components such as circuit-breakers and disconnectors, which can be safely operated in confined spaces.
• OCB (Oil Circuit Breakers): 
  • Vapors a portion of oil to blast a jet of oil through the arc.
  • Circuit breaker which uses insulating oil as an arc quenching medium
• Hybrid Circuit Breakers:
  • Combines Air-insulated and SF6 Gas-insulated technologies.
• MCB (Miniature Circuit Breakers): 
  • Employed in domestic households to safeguard against overload. Rated current max. 100 A.
  • Electrical switch that automatically switches off the electrical circuit during an abnormal condition of the network means an overload condition as well as a faulty condition. Nowadays we use an MCB in a low-voltage electrical network instead of a fuse.
  • Circuit breakers have a tripping relay mechanism, while MCB has a tripping release mechanism. Circuit breakers have a high rupturing capacity, but the MCB has a low rupturing capacity. Circuit breakers are used in High Voltage systems, while MCBs are used in Low Voltage systems.
• RCCB (Residual Current Circuit Breakers): 
  • To safeguard against electrical shock arising out of indirect contact and includes the detection of residual current such as earth leakage.
  • Current sensing device, which can automatically measure and disconnect the circuit whenever a fault occurs in the connected circuit or the current exceeds the rated sensitivity.
• MCCB (Molded Case Circuit Breakers): 
  • Incorporates insulating material in the form of molded casing within circuit breaker. Rated current up to 2,500 A.
  • MCCB has a higher interrupting capacity, meaning it can handle larger loads than a conventional breaker. Generally, a standard breaker is used for residential and light commercial applications, while an MCCB is suitable for industrial and heavy commercial applications.
• Disconnectors: 
  • Automatic switching device that offers specific isolating distance on the basis of specific requirements.
  • Disconnectors (also known as Isolators) are devices which are generally operated off-load to provide isolation of main plant items for maintenance, or to isolate faulted equipment from other live equipment.
• Contactors: 
  • Works alike high-current switching systems but at higher voltage rates. Contactors can however not be utilized as disconnecting switches. Contactors are employed in 30KV to 100KV range.
  • Special type of relay used for switching an electrical circuit on or off.
  • Electrical device that is widely used for switching circuits on and off. As such, electrical contactors form a subcategory of electromagnetic switches known as relays. A relay is an electrically operated switching device that uses an electromagnetic coil to open and close a set of contacts.
• PTCB eFuse Circuit Breaker:
  • Electronic micro fuse for DIN rail protecting electronically nominal currents below 1A to facilitate the clear detection of faults and supports precise fault localization and fast recovery. Response times are shorter compared to conventional fuse protection and the exact current value can be adjusted at any time
• RCD (Residual Current Devices): 
  • Sensitive safety device that switches off the electricity within 10 to 50 milliseconds if there is an electrical fault. An RCD is is designed to protect against the risks of electrocution and fire caused by earth faults.
  • The difference between a circuit breaker and an RCD switch is the purpose of a circuit breaker is to protect the electrical systems and wiring in a home while the purpose of an RCD switch is to protect people from electrocution.
• RCBO (Residual Current Breaker with Over-Current): 
  • RCDs can protect against electric shocks, residual currents, and earth faults. On the other hand, RCBOs can do what RCDs can do and protect a circuit from short circuits and overload. RCBOs are essentially a combination of MCB and RCCB.
  • An RCBO protects electrical equipment from two types of faults; residual current and over current. Residual current, or Earth leakage as it can sometimes be referred to, is when there is a break in the circuit that could be caused by faulty electrical wiring or if the wire is accidentally cut.
• Ring Main Unit (RMU):
  • Medium voltage, gas-insulated, fully sealed cabinet used to measure, connect, and integrate transformer protection functions with a fixed type breaker. Ring Main Units are safe, reliable, low-maintenance, and easy to replace switchgear.
  • A ring main unit (RMU) is a factory assembled, metal enclosed set of switchgear used at the load connection points of a ring-type distribution network.
• Load Center – Panel Board – Switch Board:
  • A load center is used in residential and light commercial applications to distribute electricity supplied by the utility company throughout the home or building to feed all the branch circuits. Each branch circuit is protected by the circuit breaker housed in the load center.  In the event of a short circuit or an overload on a branch circuit, the circuit breaker will cut the power before any potential property damage or personal injury can occur.
  • A load center provides similar functionality in a power distribution system as a switchboard and a panelboard. As far as UL and the NEC standards are concerned, there is no difference between a panelboard and a load center.
  • However, Panelboards are typically deeper than load centers and can accommodate both bolt-on circuit breakers as well as plug-in breakers, whereas a load center is limited to plug-in breakers.
  • Switchboards are often the typical choice for industrial establishments. These panelboards generally house circuit breakers that can manage and supply electricity for machines with high-voltage demands.
  • Panelboards are only accessible from the front (as mentioned above), but switchboards allow rear access as well.

• Solid-State Circuit Breakers:
  • Solid-state device, electronic device in which electricity flows through solid semiconductor crystals (silicon, gallium arsenide, germanium) rather than through vacuum tubes.
  • The solid-state breaker concept replaces the traditional moving parts of an electromechanical circuit breaker with semiconductors and advanced software algorithms that control the power and can interrupt extreme currents faster than ever before.

 

• Grid, Microgrids and DERs:
  • The power grid is a network for delivering electricity to consumers. The power grid includes generator stations, transmission lines and towers, and individual consumer distribution lines.
  • The grid constantly balances the supply and demand for the energy that powers everything from industry to household appliances.
  • Electric grids perform three major functions: power generation, transmission, and distribution.
  • A microgrid is a small-scale power grid that can operate independently or collaboratively with other small power grids. The practice of using microgrids is known as distributed, dispersed, decentralized, district or embedded energy production.
  • Smart Grid is any electrical grid + IT at all levels . Micro Grid is a group of interconnected loads and DERs (Distributed energy resources) within a clearly defined electrical and geographical boundaries witch acts as a single controllable entity with respect to the main grid.
  • Distributed energy resources (DERs) are small-scale electricity supply (typically in the range of 3 kW to 50 MW) or demand resources that are interconnected to the electric grid. They are power generation resources and are usually located close to load centers, and can be used individually or in aggregate to provide value to the grid.
  • Common examples of DERs include rooftop solar PV units, natural gas turbines, microturbines, wind turbines, biomass generators, fuel cells, tri-generation units, battery storage, electric vehicles (EV) and EV chargers, and demand response applications.
  • Distributed energy resources management systems (DERMS) are platforms which helps mostly distribution system operators (DSO) manage their grids that are mainly based on distributed energy resources (DER).
  • DERMS are used by utilities and other energy companies to aggregate a large energy load for participation in the demand response market. DERMS can be defined in many ways, depending on the use case and underlying energy asset.

 

 

 

EMR Additional Financial Notes: 

• All members of the Executive Committee and of the Board have their full profile on EMR Executive Services
• Major financial KPI’s since 2017 are available on EMR Executive Services under “Financial Results” and comparison with peers under “Market Positioning”
• ABB Q3 2023 full financial report can be found here: https://library.e.abb.com/public/a785f032a36e4df4a8ff5a743fabb94a/ABB-Q3-2023-financial-information.pdf?x-sign=ZjbXl62MwfBCGyqd0agmxb7EJSV+itp9k3GBS0FHzKL0rZi99zFtL/5b9Ygivhr3
• ABB Q3 2023 Results Presentation report can be found here: https://resources.news.e.abb.com/attachments/published/108492/en-US/BF14F045EC0C/ABB-Q3-23-Group-results.pdf
• ABB Q4 2022 full financial report can be found here: https://library.e.abb.com/public/0c911f20f7cc46848b2e64bde82fb4f5/ABB-Q4-2022-financial-information.pdf?x-sign=BD7iL18NxClyc/jZMypLoEnkX4K/7DtnJFLCu5Mu23MkCNY9LKaNdJ8IVroe2RsJ
• ABB Q4 2022 Group results presentation can be found here: https://library.e.abb.com/public/63461737ba8345e3aa6d2461f06fc72d/ABB%20Q4%202022%20Group%20results%20presentation.pdf?x-sign=5FXqQ/JhDK60X33QUHYXu5ygzSjC0NIRvKjkJh/IbmgD+GqqsS35xPRNFx4G9kuV
• The ABB Integrated Report 2022 can be found here: https://library.e.abb.com/public/ef5852f1e2e54cad97abcc4fc48d1d58/Annual%20Reporting%20Suite_Integrated%20Report%202022_English.pdf?x-sign=7G8OjbOECaszfrXCIyA5JiH3fGx/atL/BCzpvMeZ204bfv7LF4gr4m0zTljh9JCN
• The ABB Annual Report 2021 can be found here: https://library.e.abb.com/public/c6dae9af148d4d5fb87efc97bb4b460a/ABB-Group-Annual-Report-2021-English.pdf?x-sign=GmQyA+p+s0K/4Q+iBQ9vEKh9yaP59NfMdxeNBZl9C0AIw4xcHjMgpZ7d7xVPrAZ5