Solar operations and maintenance company Alectris has completed a project to automate asset management activity at a photovoltaic plant in Jordan.
Alectris implemented the initiative at the 11.5MW facility with MASE, a solar O&M provider in the Middle East.
The partnership between Alectris and MASE aims to automate and standardise asset management activity across new solar projects in the Middle East and North Africa (MENA).
As solar development has increased in the MENA region, O&M and asset management has “struggled to keep pace”, limiting long-term productivity prospects, said Alectris.
The partnership began in 2016 with MASE responsible for field operations and maintenance services on location, while Alectris provided operations and “legacy expertise” in global asset care.
“Working together, both businesses successfully improved the bankability of the project, which was financed by key development finance institutions operating across the region,” said Alectris.
The initiative involved the integration of Alectris’ ACTIS software platform for solar PV plant asset management, with all data monitoring streams gathered under the single platform to “improve oversight” into project activity.
Alectris managing director Vassilis Papaeconomou said: “Solar development in the MENA region offers a significant opportunity to invest in clean energy projects.
“But if this market momentum is to be maintained, it is imperative that operating plants offer security and stability of financial returns. By partnering with MASE, we’ve been jointly able to combine the latest in asset management software with leading experience in services activity.
“This will ensure that project owners and investors benefit from enhanced and efficient performance reporting and operational management, saving time, reducing costs and ensuring the plant delivers at its optimum. As a result, the plant delivered above expectations with an excellent performance ratio and availability close to 100% over the last three years.”
MASE chief executive Tareq Khalifeh added: “Throughout this collaboration, Alectris have proved to be reliable, dedicated and experienced with a wealth of knowledge that has been indispensable when working in an exciting but challenging market.”
Space cooling and heating is a common need in most inhabited areas. In Europe, the energy consumed for air conditioning is rising, and the situation could get worse in the near future due to the temperature increase in different regions worldwide. The increasing cooling need in buildings especially during the summer season is satisfied by the popular air conditioners, which often make use of refrigerants with high environmental impact and also lead to high electricity consumption. So, how can we reduce the energy demand for building cooling?
A new study comes from a research group based at the Politecnico di Torino (SMaLL) and the National Institute of Metrological Research (INRiM), who has proposed a device capable of generating a cooling load without the use of electricity: the research has been published in Science Advances*. Like more traditional cooling devices, this new technology also exploits the evaporation of a liquid. However, the key idea proposed by the Turin researchers is to use simple water and common salt instead of chemicals that are potentially harmful for the environment. The environmental impact of the new device is also reduced because it is based on passive phenomena, i.e. spontaneous processes such as capillarity or evaporation, instead of on pumps and compressors that require energy and maintenance.
“Cooling by water evaporation has always been known. As an example, Nature makes use of sweat evaporation from the skin to cool down our body. However, this strategy is effective as long as air is not saturated with water vapour. Our idea was to come up with a low-cost technology capable to maximize the cooling effect regardless of the external water vapour conditions. Instead of being exposed to air, pure water is in contact with an impermeable membrane that keeps separated from a highly concentrated salty solution. The membrane can be imagined as a porous sieve with pore size in the order of one millionth of a meter. Owing to its water-repellent properties, our membrane liquid water does not pass through the membrane, whereas its vapour does. In this way, the fresh and salt water do not mix, while a constant water vapour flux occurs from one end of the membrane to the other. As a result, pure water gets cooled, with this effect being further amplified thanks to the presence of different evaporation stages. Clearly, the salty water concentration will constantly decrease and the cooling effect will diminish over time; however, the difference in salinity between the two solutions can be continuously – and sustainably – restored using solar energy, as also demonstrated in another recent study from our group**”, explains Matteo Alberghini, PhD student of the Energy Department of the Politecnico di Torino and first author of the research.
The interesting feature of the suggested device consists in its modular design made of cooling units, a few centimetres thick each, that can be stacked in series to increase the cooling effect in series, as happens with common batteries. In this way it is possible to finely tune the cooling power according to individual needs, possibly reaching cooling capacity comparable to those typically necessary for domestic use. Furthermore, water and salt do not need pumps or other auxiliaries to be transported within the device. On the contrary, it “moves” spontaneously thanks to capillary effects of some components which, like in kitchen paper, are capable of absorbing and transporting water also against gravity.
“Other technologies for passive cooling are also being tested in various labs and research centres worldwide, such as those based on infrared heat dissipation into the outer space – also known as radiative passive cooling. Those approaches, although promising and suitable for some applications, also present major limitations: the principle on which they are based may be ineffective in tropical climates and in general on very humid days, when, however, the need for conditioning would still be high; moreover, there is a theoretical limit for the maximum cooling power. Our passive prototype, based instead on evaporative cooling between two aqueous solutions with different salinities, could overcome this limit, creating a useful effect independent of external humidity. Moreover, we could obtain an even higher cooling capacity in the future by increasing the concentration of the saline solution or by resorting to a more sophisticated modular design of the device” commented the researchers.
Also due to the simplicity of the device assembly and the required materials, a rather low production cost can be envisioned, in the order of a few euros for each cooling stage. As such, the device could be ideal for installations in rural areas, where the possible lack of well-trained technicians can make operation and maintenance of traditional cooling systems difficult. Interesting applications can also be envisioned in regions with large availability in water with high saline concentration, such as coastal regions in the vicinity of large desalination plants or nearby salt marshes and salt mines.
As of now, the technology is not yet ready for an immediate commercial exploitation, and further developments (also subject to future funding or industrial partnerships) are necessary. In perspective, this technology could be used in combination with existing and more traditional cooling systems for effectively implementing energy saving strategies.
[*] Matteo Alberghini, Matteo Morciano, Matteo Fasano, Fabio Bertiglia, Vito Fernicola, Pietro Asinari, Eliodoro Chiavazzo. Multistage and passive cooling process driven by salinity difference, SCIENCE ADVANCES (2020), URL: https://advances.sciencemag.org/content/6/11/eaax5015
[**] Eliodoro Chiavazzo, Matteo Morciano, Francesca Viglino, Matteo Fasano, Pietro Asinari, Passive solar high-yield seawater desalination by modular and low-cost distillation, NATURE SUSTAINABILITY (2018), URL: https://www.nature.com/articles/s41893-018-0186-x
At this year’s Light+Building trade fair, Siemens will showcase its vision for transforming today’s passive buildings into learning and adaptive environments that intelligently interact with people. The company’s focus at this year’s show is “Building the future today”, outlining the innovations that will make this possible. These include cloud-based technologies, digital planning, occupant-centric building automation and services. New solutions for smart electrical infrastructure that seamlessly connects to the Internet of Things (IoT) are also at the core of this transformation.
„Building the future today”: Siemens at Light+Building 2020 in hall 11, booth B56“Around 99 percent of today’s buildings are not smart. Digitalization has the power to transform buildings from silent and passive structures into living organisms that interact, learn from and adapt to the changing needs of occupants. This is a significant leap in the evolution of buildings where our technology plays a vital role,” said Cedrik Neike, Member of the Managing Board of Siemens AG and Chief Executive Officer of Siemens Smart Infrastructure. “This transformation is already becoming a reality. We expect to see the first entirely self-adaptive buildings in three to five years from now.”
Digital solutions for the entire building lifecycle
Globalization, urbanization, climate change, and demographics are changing the way people live and work. At the same time, digitalization is ubiquitous. With some 10 billion building devices already connected to the IoT, buildings are ready to leverage the potential of digitalization. People spend an estimated 90 percent of their lives indoors, so ensuring buildings meet the broad range of individuals’ needs is crucial. On one hand, smart buildings actively contribute to occupants’ enhanced productivity, wellbeing and comfort. For operators and owners, they help them collect and analyze data to create actionable insights, boosting buildings’ performance and therefore revenue.Siemens will showcase the smart buildings suite of IoT enabled devices, applications and services. At the core of the suite is the “Building Twin” application, which will be on display at the booth. It provides a fully digital representation of a physical building, merging static as well as dynamic data from multiple sources into a 3D virtual model. With real-time understanding of how a building is performing, operators can immediately make adjustments to boost efficiency as well as extract data to improve the design of future buildings. One of the new IoT-enabled applications is “Building Operator”, which allows remote monitoring, operation and maintenance of buildings. Available as Software as a Service (SaaS), it provides real-time building data as the basis for predictive and corrective maintenance.
Smart electrical infrastructure
Given that buildings account for more than 40 percent of electricity consumption in cities, building efficiency is crucial in the battle towards decarbonization. Electrical infrastructure lays the foundation for safe, reliable and efficient building operations, while delivering essential data for a holistic, cloud-based building management. This is made possible by communication-capable low-voltage products, power distribution boards and busbar trunking systems that enable the measurement and wireless transmission of energy and status data. To illustrate this, Siemens will exhibit a unique end-to-end solution for cloud-based power monitoring in buildings. Electrical installations can now be supplemented with digital metering without additional space requirements or wiring outlay. This makes it easy for electrical installers to start using digitalization to their benefit. With “Powermanager”, a power monitoring software, now fully integrated into the Desigo CC building management platform, all building and energy data can be managed, monitored and analyzed from one single platform.Siemens will also display its electromobility ecosystem, including battery storage and charging systems for residential buildings. In a parallel show, “Intersec Building 2020”, in hall 9.1, booth B50, the company will exhibit integrated and networked systems for safety and fire protection.
Qatar-based Industrial Solutions leader ‘Nehmeh’ has organised the annual Mega Industrial Expo 2020 showcasing a range of the world’s leading brands in construction solutions,
The two-day event was held on February 4 and 5 at a five-star hotel in Doha where Nehmeh showcased power tools, ventilation systems, light construction tools and machinery with a focus on concrete machinery along with demonstrations to let guests have a first-hand product experience of the machines and its applications.
An important part of the event was the launch of the Qatar’s first locally manufactured ‘Roof Top Package Unit’ by Nehmeh Air Conditioners and introduction of Belgium based ‘Beton Trowel’ brand renowned for Concrete & Compaction Equipment.
The event also featured key note address by experts from Beton Trowel, Nehmeh Air Conditioners and Makita over the two days. ‘Nehmeh App’ the region’s first industrial solutions mobile app was highlighted to guests at the expo. Nehmeh, one of the leading industrial solutions providers in the GCC, represents world class brands which are leaders in their respective categories.
For over 65 years, tens of thousands of people depend on reliable industrial performance solutions by Nehmeh. This mega event succeeded in attracting visitors including retail partners, suppliers, end-users and others related to the construction industry.
Visitors also included managers from Qatar looking for solutions to improve their efficiency and productivity on sites. Brands participating at the expo were Makita, Nehmeh Air Conditioners, Stampa, SDMO, Beton Trowel, Sofy, Portacool, Koshin, Awelco, Dr. Schulze among many more. Demonstrations were held on specially prepared areas showcasing tools, equipment and machinery. Expert professionals from Singapore, Germany and Belgium presented to the audience new introductions and technologies along with an informative Q & A session.
“Nehmeh range of Industrial Solutions cover major solutions required for the Qatari construction market. This concept event has been developed keeping in mind the requirements of our customers and I am glad to say that the event has been well received by the guests over the years,” said Emil A. Nehme, Chief Executive Officer at Nehmeh.
“With the support of our partners, we have the ability to cover major construction solutions as required here in Qatar. Witnessing the popularity of such an event, we are inclined to hold more such regular events as part of our calendar of activities,” he added.
‘The Nehmeh Corporate Catalogue 2020’ was launched during the event. Awards bestowed to various partners as tribute to their efforts and achievements. In addition, four lucky visitors also walked away with reward trips, gold coins and stay vouchers.
ABU DHABI, 1st February 2020 (WAM) — Making the UAE the first Arab country to deliver safe, clean and peaceful nuclear energy, Barakah is the first major national achievement this year.
Nawah Energy Company, the subsidiary of the Emirates Nuclear Energy Corporation, ENEC, responsible for the operation and maintenance of nuclear energy plants in the UAE, has confirmed that the World Association of Nuclear Operators, WANO, has cleared Unit 1 of Barakah as ready for start-up.
After it’s fully operational, the Barakah Nuclear Energy Plant’s four Units will prevent the release of 21 million tons of harmful carbon emissions every year, equivalent to removing 3.2 million cars from the country’s roads on an annual basis.
Located in the Al Dhafra region of Abu Dhabi Emirate, approximately 53km west-southwest of the city of Ruwais, the plant’s four APR-1400 design nuclear reactors will also supply up to 25 percent of the UAE’s electricity needs in compliance with the highest standards of safety, security and operational performance.
The journey started in April 2008 with the issue of the Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy.
The Policy focuses on six key principles, which include the UAE’s commitment to complete operational transparency, pursuing the highest standards of non-proliferation and adhering to the highest standards of safety and security.
It also includes working directly with the International Atomic Energy Agency, IAEA, and conforming to its standards when evaluating and establishing a peaceful nuclear energy programme, developing any peaceful domestic nuclear energy capability in partnership with the governments and firms of responsible nations, as well with the assistance of appropriate expert organisations, and lastly approaching any peaceful domestic nuclear energy programme in a manner that best ensures long-term sustainability. The UAE programme has since been successfully developed in line with all of these principles and continues to uphold these going forward.
In 2009, the Korea Electric Power Corporation, KEPCO, which is the largest nuclear power corporation in South Korea, was selected as ENEC’s Prime Contractor for the development of the Barakah Nuclear Energy Plant in the UAE.
KEPCO is one of the leading nuclear energy companies in the world in terms of safety, reliability and efficiency, as classified by WANO.
The UAE selected this company after a comprehensive year-long process conducted by a team of 75 international energy experts. The evaluation focused on several factors, most notably, safety and operational excellence. The APR1400 technology selected has since been certified by the US-based Nuclear Regulatory Commission, NRC, highlighting the design’s strong safety and reliability characteristics.
In 2010, the environmental impact assessment and licensing requests for preliminary works were submitted, and approval was obtained from the UAE’s independent nuclear regulator the Federal Authority for Nuclear Regulation, FANR.
In March 2012, ENEC submitted a construction license application for Barakah’s Units three and four, and in May 2013, the safety nuclear concrete was poured for Unit 2 and the installation of major components had begun at Unit 1.
In October 2016, ENEC and KEPCO signed a Joint Venture agreement for a long-term partnership and cooperation for the UAE Peaceful Nuclear Energy programme.
Through the Joint Venture, Nawah Energy Company was established to operate and maintain the Barakah Nuclear Energy Plant.
ENEC and KEPCO also announced the establishment of Barakah One Company PJSC, another independent subsidiary owned by both companies, which represents the commercial and financial interests of the Barakah project.
Under the JV, KEPCO has an 18 percent stake in Nawah Energy Company and Barakah One Company, while ENEC owns the remaining 82 percent.
In November 2016, Barakah One Company signed the first nuclear energy Power Purchase Agreement with Abu Dhabi Water and Electricity Company, now the Emirates Water and Electricity Company, for the purchase of the electricity to be generated at Barakah.
The agreement establishes the contractual framework between the two entities for the sale of the safe, clean, efficient and reliable electricity produced at Barakah.
In March 2018, construction was completed of Barakah Unit 1, and the first batch of Reactor Operators, ROs, and Senior Reactor Operators, SROs, were certified to operate by FANR in July 2019.
Emirati citizens account for 60 percent of the employees in ENEC and its subsidiary companies, and the total number of reactor operators is 72, including 42 Emirati ROs and SROs.
In the past decade, the UAE has welcomed the IAEA and WANO to carry out more than 40 review and inspection missions.
The success of these missions and FANR’s stringent oversight has resulted in the UAE Peaceful Nuclear Energy programme being recognised as a role model for the development of a new civil nuclear energy programme and a global benchmark for a new-build nuclear energy project.WAM/Hazem Hussein
We all know that the world is undergoing an energy transformation, from a system based on fossil fuels to a system based on renewable energy,in order to reduce global greenhouse gas emissions and avoid the most serious impacts of a changing climate. This article however realistic it appears, could be understood as some sort of justification of the ineluctable surrender of the fossil fuel to its time penalty.
Jarand Rystad Jan 25, 2020
Existing fossil fuel power plants will play a pivotal role in enabling the full transition to a near-zero-carbon electricity system in many countries. How can such a surprising and perhaps counterintuitive conclusion be reached? The key word is intermittency, in reference to the wide fluctuations of energy supply associated with solar and wind. Even if these two sources are, to some degree, complementary (with more wind at night and during winter, complemented by more sun at daytime and during the summer), the combination still carries a high degree of intermittency.
In this analysis, we have used data from Germany from 2012 to 2019, and scaled this up to a near 100% renewable system – assuming that the total capacity will be 160 GW, or three times the average consumption. In this system, there will still be 28 days where solar and wind combined produce less than 30% of the consumption. This happens typically during high-pressure weather systems during the winter months from November to February.
Moreover, there will on average be two extreme periods per year, with up to three days in a row when sun and wind will deliver less than 10% of Germany’s total energy consumption. Even with adjustments to imports and consumption levels, the country would still need some 50 GW of power to avoid blackouts (with 72 hours at 50 GW equating to 3.6 TWh). Total water pumping capacity today is 7 GW over four hours or about 30 GWh. Assume this multiplies ten-fold by 2050, and assume that 45 million cars are battery electric vehicles with surplus capacity of 20 kWh each. This would deliver about 1.2 TWh in total, meaning the system would still need 2.4 TWh of power or a continuous load of 33 GW.
During these periods, restarting old gas-fired power plants could be an economically rational way to deliver the power needed to keep the nation running as usual. The carbon footprint of this would be small – probably less than the footprint associated with constructing gigantic battery facilities for those few extreme cases. Germany presently has 263 gas power plants, with a total capacity of 25 GW.
Thus, finding a way to maintain these plants for emergency back-up capacity could be an enabler for an energy future based around solar and wind power. Capacity pricing rather than price per kWh is probably one of the commercial changes needed. This is the same pricing model that most people also have for home internet services, and should thus not be too difficult to implement.
Adelle Geronimo informs that despite all the hoo-hah in the Middle East, the UAE to accelerate space tech startups is no extraordinary youth employment programme. This follows the UAE launching in October 2018, its first satellite built entirely by Emirati engineers in the UAE and after sending an Emirati astronaut to the International Space Station. The UAE plans also to establish a self-sustaining habitable settlement on Mars by 2117.
The UAE Space Agency has announced its collaboration with the Abu Dhabi-based global innovation hub, Krypto Labs, to launch the UAE NewSpace Innovation Programme, which aims to maximise the growth of space technology start-ups with NewSpace, the rising private spaceflight industry.
The programme falls under the purview of the National Space Investment Promotion Plan, which aims to heighten the role of the space industry in contributing to the economy of the UAE.
It is also in line with an MoU signed between the UAE Space Agency and Krypto Labs, which aims to increase innovation and investment in the space sector, drive a diversified UAE economy, and promote awareness through specialised initiatives that support space technology entrepreneurship.
Dr. Mohammed Nasser Al Ahbabi, Director-General of the UAE Space Agency, said, “The UAE NewSpace Innovation Programme invites students, entrepreneurs and start-ups to share their ground-breaking ideas and transform them into viable commercial products. This supports developing space technology as part of the UAE’s private spaceflight NewSpace sector, which aims to make space more accessible, affordable and commercial.”
Selected applicants will take part in a three-month incubation programme at the headquarters of Krypto Labs in Abu Dhabi, with access to the hub’s facilities. They will also have access to the innovation hub’s local and global network of investors, be mentored by global space experts, and develop their skills in business creation, marketing, and sales, among others.
Applicants will also have the opportunity to secure funds to ensure their start-ups are prepared to enter the market.
Eligible applicants must present an innovative and original idea with a clear technical approach, which generates a feasible and scalable product. The teams must have at least one Emirati team member.
Dr. Saleh Al Hashemi, Managing Director of Krypto Labs, noted, “By supporting innovators and young entrepreneurs, we aim to foster a spirit of originality and zest within start-ups to solve global challenges that keep the UAE on the frontier of the innovation map and elevate its position as a leader for innovation-focused businesses.”
Indeed, per the above, USD 10 trillion of fossil fuel investment must be redirected towards energy transformation by 2030.
Abu Dhabi, United Arab Emirates, 12 January 2020 – The share of renewables in global power should more than double by 2030 to advance the global energy transformation, achieve sustainable development goals and a pathway to climate safety, according to the International Renewable Energy Agency (IRENA). Renewable electricity should supply 57 per cent of global power by the end of the decade, up from 26 per cent today.
A new booklet 10 Years: Progress to Action, published for the 10th annual Assembly of IRENA, charts recent global advances and outlines the measures still needed to scale up renewables. The Agency’s data shows that annual renewable energy investment needs to double from around USD 330 billion today, to close to USD 750 billion to deploy renewable energy at the speed required. Much of the needed investment can be met by redirecting planned fossil fuel investment. Close to USD 10 trillion of non-renewables related energy investments are planned to 2030, risking stranded assets and increasing the likelihood of exceeding the world’s 1.5 degree carbon budget this decade.
“We have entered the decade of renewable energy action, a period in which the energy system will transform at unparalleled speed,” said IRENA Director-General Francesco La Camera. “To ensure this happens, we must urgently address the need for stronger enabling policies and a significant increase in investment over the next 10 years. Renewables hold the key to sustainable development and should be central to energy and economic planning all over the world.”
“Renewable energy solutions are affordable, readily available and deployable at scale,” continued Mr La Camera. “To advance a low-carbon future, IRENA will further promote knowledge exchange, strengthen partnerships and work with all stakeholders, from private sector leaders to policymakers, to catalyse action on the ground. We know it is possible,” he concluded, “but we must all move faster.”
Additional investments bring significant external cost savings, including minimising significant losses caused by climate change as a result of inaction. Savings could amount to between USD 1.6 trillion and USD 3.7 trillion annually by 2030, three to seven times higher than investment costs for the energy transformation.
Falling technology costs continue to strengthen the case for renewable energy. IRENA points out that solar PV costs have fallen by almost 90 per cent over the last 10 years and onshore wind turbine prices have fallen by up half in that period. By the end of this decade, solar PV and wind costs may consistently outcompete traditional energy. The two technologies could cover over a third of global power needs.
Renewables can become a vital tool in closing the energy access gap, a key sustainable development goal. Off-grid renewables have emerged as a key solution to expand energy access and now deliver access to around 150 million people. IRENA data shows that 60 per cent of new electricity access can be met by renewables in the next decade with stand-alone and mini-grid systems providing the means for almost half of new access.
Kuwait has issued a global tender to seek international experts for a major project to help diversify the economy.
Kuwait has issued a global tender looking to companies to help develop a new Entertainment City in the country.
The mega-scale tender seeks to locate the right partners to undertake planning, development, execution, operation, maintenance and investment in the project which forms part of Kuwait Vision 2035.
Al-Diwan Al-Amiri said in a statement that it aims to sign up partners “at the nearest possible opportunity”.
Considered to be one of the largest projects of its kind in the region, the mega project will actively support the ongoing efforts by the government to diversify sources of income and will contribute to the revitalisation of the cultural, leisure and tourism sectors in Kuwait, the statement added.
As part of the project, a global entertainment and tourism city will be established, featuring an amusement park and a world-class integrated entertainment complex.
Project components primarily include a ride based outdoor theme park, an indoor theme park, an aqua park, a kids’ activity and entertainment centre, in addition to gaming arcade, a snow/ski park and a multiplex and open air theatre.
Other components comprise a sports centre, a museum, public parks and social entertainment areas with landscaped areas and trails. The project also comprises 4 and 5 star villas, apartments, a retail mall, commercial areas and restaurants. It also includes an observatory, an amphitheatre, indoor water channels.
The current location for Al-Diwan Al-Amiri’s Entertainment City in the Doha region in the north of Kuwait will be expanded and developed to cover 2,750 million square metres.
The deadline for the global tendering and bidding process is set for February 27.
Al-Diwan Al-Amiri’s other projects include the Jahra Medical City, Sheikh Jaber Al-Ahmad Cultural Centre, Sheikh Abdullah Al-Salem Cultural Centre, Kuwait Motor Town and Shaheed Park.
A Frenchman is credited with being the first to discover the photovoltaic effect that produces electricity from sunlight. The first solar panel was built in the US. But when Abu Dhabi decided to build the world’s largest individual solar power project, they looked east for help.
The country partnered with Chinese and Japanese companies to construct a facility, which opened this year, with a peak capacity of 1.18 gigawatts generated by 3.2 million solar panels. That’s because Asia, more than any other region on the planet, and China, more than any other nation, currently represent the future of solar energy, and are at the heart of the ensuing industrywide transformation from fossil fuels to renewable and nuclear energy.
Decarbonization is changing the face of energy and the world economy in more ways than most consumers — and even most executives — appreciate. Besides the transition from molecule to electron, as this move toward electrification suggests, it is also shifting the industry’s economic base from West to East and reconfiguring the hierarchy of companies and geographies that define energy.
Asia is the 800-pound gorilla in the energy story. First, its continued economic growth and rising standard of living will make its constituent nations pre-eminent energy consumers for the foreseeable future. A study by BP indicates that Asia, including China and India, will represent 43% of global energy demand by 2040, and through that year, the region will account for more than 50% of the growth in demand. In contrast, energy demand among the 36 nations in the OECD, which includes most big economies in the Americas and Europe, will be flat.
China’s sunny outlook
Second, places like China are already among the most important suppliers of non-fossil fuel-based energy and technology. By 2017, China owned 72% of the world’s solar photovoltaic module production; in comparison, the US has 1% and Europe 2%. Of the eight top producers, six are Asian. Not including hydropower, China has somewhere around one-third of the world’s installed renewable capacity; the EU has a little over a quarter; and the US accounts for 14%. China also leads in the generation of hydropower.
As the electrification of transportation advances and demand grows for renewable energy storage solutions, China looks likely to monopolize here, too. China produces at least two-thirds of the world’s production capacity for lithium-ion batteries, which are used in electric vehicles (EVs), mobile phones and laptop computers (some estimates put their share at closer to 70%), and it looks likely to hang on to that lead through at least 2028. And besides being the largest market for EVs, China also controls the bulk of production.
China is the third-largest miner of the primary raw material used to produce those batteries, lithium — often referred to as white petroleum because of its mounting economic importance. Chinese producers are also buying up lithium reserves in Chile, the world’s second-largest lithium miner (Australia takes the top spot).
A fundamental overhaul
Of course, climate change is forcing the energy industry to undergo an existential transformation that may eventually see the elimination of fossil fuels entirely. While most executives at oil companies will be dead or at least retired before that transition proceeds to what seems its inevitable end, the slowing of demand is already being felt.
By contrast, the demand for electricity seems insatiable. Electrification rates continue to rise across the globe, with Asia expected to be close to 100% coverage by 2030. Much of that growth in demand may be supplied by renewables and nuclear power rather than fossil fuel-generated power, although natural gas is expected to play a role for years to come. It also may be accomplished through a decentralization of generating capacity, such as recent rural electrification projects in places like Malawi and Bangladesh where farmers and villages use solar panels and small generators to provide their own electricity.
What’s the World Economic Forum doing about the transition to clean energy?
Moving to clean energy is key to combatting climate change, yet in the past five years, the energy transition has stagnated. Energy consumption and production contribute to two-thirds of global emissions, and 81% of the global energy system is still based on fossil fuels, the same percentage as 30 years ago.
Effective policies, private-sector action and public-private cooperation are needed to create a more inclusive, sustainable, affordable and secure global energy system.
Benchmarking progress is essential to a successful transition. The World Economic Forum’s Energy Transition Index, which ranks 115 economies on how well they balance energy security and access with environmental sustainability and affordability, shows that the biggest challenge facing energy transition is the lack of readiness among the world’s largest emitters, including US, China, India and Russia. The 10 countries that score the highest in terms of readiness account for only 2.6% of global annual emissions.
Yet despite the urgency of climate concerns and the rapidly falling cost of renewable energy, the speed at which this existential energy transition will happen is uncertain, as pre- and post-tax subsidies on fossil fuels remain in place, discouraging consumers to make the change to a more environmentally beneficial and frequently cheaper source of energy. The International Monetary Fund estimates post-tax subsidies on fossil fuels like coal and petroleum — a result of unpriced externalities, such as societal costs from air pollution and global warming — totalled $5.2 trillion in 2017.
Regardless of the speed of transformation, there’s no doubt it is already well underway. That’s why places like the United Arab Emirates (of which Abu Dhabi is the largest) are building solar power and nuclear facilities, despite being the world’s eighth-largest oil producer — and making the transition with Asian partners. They see the future.
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