Grids or gridlock, plus other top energy stories this week 

Energy ministers from the European Union have agreed a deal to change power market subsidies in the bloc.

The European Commission had outlined changes to the electricity market in the EU in March, following soaring prices in the wake of Russia's invasion of Ukraine. However, talks had stalled after concerns from Germany over some of the proposed changes, in particular around the use of state aid.

The changes hope to shift to longer, fixed-price contracts to protect consumers during periods of volatility.

"It should help protect consumers against a future emergency and future crises. The most significant factor is that there was almost unanimity," Spain's Energy Minister Teresa Ribera told reporters. Only Hungary abstained.

A new International Energy Agency report has warned of the urgent need to upgrade electricity grids to ensure equitable and reliable electricity systems and to support the energy transition.

Electricity Grids and Secure Energy Transitions says that 80 million km of grids will need replacing or adding by 2040 - the equivalent of all the grids currently in use today. Changes in how grids are operated and regulated will also be vital, while annual investment will also need to double by 2030.

“The recent clean energy progress we have seen in many countries is unprecedented and cause for optimism, but it could be put in jeopardy if governments and businesses do not come together to ensure the world’s electricity grids are ready for the new global energy economy that is rapidly emerging,” said IEA Executive Director Fatih Birol. "We must invest in grids today or face gridlock tomorrow.”

It comes as the US announces new investment in its power grid, with $3.5 billion in new funding to protect its grid from extreme weather and fires, as well as future-proofing the grid for increasing renewable energy sources.

ExxonMobil has purchased Pioneer Natural Resources, committing around $64.5 billion to the deal. The deal combines Pioneer's 850,000 net acres in the Midland Basin, with ExxonMobil's 570,000 in the Delaware and Midland Basin. Combined, the company will have access to an estimated 16 billion barrels of oil equivalent resource.

Executives at a number of US banks have warned about the impact of new regulations on the viability of a number of products and services, including green energy products. The so-called 'Basel endgame' proposal would change how banks calculate the capital they reserve against potential losses.

The latest winners of the UN Investment Promotion Awards have been announced, with investment promotion agencies and special economic zones from Brazil to the UAE and Nambia recognized for accelerating the energy transition.

Ongoing 'huge dependence' on fossil fuels makes Southeast Asia vulnerable to energy price shocks and supply challenges, Zulfikar Yurnaidi, manager of energy modelling and policy planning at the ASEAN Center for Energy has warned. The region must diversify its energy sources, he said, in order to preserve economic stability and growth.

The price of minerals like lithium, cobalt and nickel - vital materials for batteries - have dropped this year, reports the Financial Times (paywall), largely as a result of falling demand for electric vehicles in China.

Meanwhile, scientists in Australia have developed a new battery design that cuts the amount of lithium needed for charging. Researchers at Monash University say the new design also doesn't require nickel or cobalt.

A group led by Siemens Energy has run successful tests of a gas turbine that can run on pure hydrogen, natural gas or a mix of the two. It's the first time a turbine has been run on 100% hydrogen.

A $6.75 billion deal has been agreed between Egypt's Suez Canal Economic Zone and China Energy for the establishment of green ammonia and hydrogen projects in the Sokhna Industrial Zone.

A report from the Potsdam Institute for Climate Impact Research suggests that Europe could be powered entirely by its own renewable sources by 2030. But, the cost would run to trillions of euros with significant funding required from both public and private sources.

The third-largest pension fund in Australia has announced plans to invest up to A$2 billion in clean energy, with the Aware Super fund announcing a partnership with Birdwood Energy.

The United Nations Conference on Trade and Development has called for increased net-zero financing in development economies. Capital is vital to take advantage of growth opportunities, said UNCTAD Secretary-General Rebeca Grynspan.

The South African environment minister has said it could raise as much as $60 billion over the next half a decade towards the energy transition. The figure does still fall short of the sum the ministry estimates it will need to switch from fossil fuels to green energy.

No single solution or technology will decarbonize aviation by 2050, writes Mariano Berkenwald, of the Breakthrough Energy Foundation, but a mix of policy, markets and innovation. Private and public sectors will need to work together, to boost innovation and investment, to give lift off to a net-zero future.

Japan has worked to diversify its sources and reinforce its supply chain of rare earth minerals, explains Tatsuya Terazawa, Chairman and Chief Executive Officer of the Institute of Energy Economics, Japan. The approach it took could provide valuable lessons for the rest of the world.

How are farmers using renewable energy to cut their emissions and contribute towards global emissions reduction targets? From solar panels in sheep fields to geothermal to grow flowers, here are just some innovative solutions.

To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin: ellayutong.lin@weforum.org