Oman’s Ministry of Technology and Communications (MTC) has committed to a memorandum of cooperation (MoC) with BankDhofar at the Sas Center for the 4th Industrial Revolution (4IR), in order to manage a technology innovation lab at the center.
The MoC was reportedly signed by Dr Salim bin Sultan Al Ruzaiqi, CEO at MTC, and Abdul Hakeem Omar Al-Ojaili, CEO at BankDhofar.
The innovation lab has been established to help students and local Fintech startups, as they focus on developing innovative financial technology products and services.
“The Ministry has launched the SAS Center for the 4th Industrial Revolution to keep pace with the current developments in the ICT sector. Signing this MoC with BankDhofar reflects the significant role of the private sector in supporting this dynamic sector and the Omani youth initiatives in entrepreneurship.”
He added that through this cooperation, they aim to create an encouraging environment that can help develop useful Fintech solutions, which could become part of the 4th IR technologies.
He also said the project aims to encourage and support Oman’s private sector organizations to continue to empower the nation’s emerging technology fields.
“The innovative lab at Sas Centre for 4th Industrial Revolution serves our vision of contributing to such projects of national value, and it also contributes to the development of the Fintech field in general.”
“We are in the midst of the 4th Industrial Revolution where the banking sector has to seize the opportunity and take part, supporting the youth and encouraging them to become effective in a field which will positively contribute to the national economic growth in the future.”
MTC and BankDhofar will work cooperatively to establish, host, and manage the innovation lab. They will provide mentorship and training for Omani students, staff, local startups and Fintech firms.
In December 2019, Bank Muscat, the leading financial services provider in the Sultanate, revealed that the Central Bank of Oman had approved the institution’s request to establish a $100 million (appr. OMR38.5 million) nationwide, strategic Fintech investment program.
The investment program is reportedly part of Bank Muscat’s strategic growth initiative.Sponsored Links by DQ Promote
An international research group has analyzed the visual impact of PV facades on buildings which include crop cultivation. Architects, PV specialists and farmers were surveyed and the results showed broad acceptance of such projects. The ‘vertical farming’ survey generated suggestions for the design of productive facades. So here is Raising crops in PV facades of buildings by Emiliano Bellini.
The researchers conducted anonymous 10-minute, multiple-choice web surveys in English with 15 questions. The group also provided images of four variants of productive facade, with respondents asked to rate their architectural quality on a scale of one to five.
The questions addressed topics including the visual impact of PV modules and crops, preferences about the arrangement of PV modules and ease of operation for owners and workers. Around 80% of the 97 respondents were architects with the remainder engineers, PV specialists, productive facade experts, horticulturalists, solar facade professionals, consultants and other professionals.
The results indicated architects and designers gave low ratings to all four of the designs presented and rated the design of PV installation poor. However, respondents with experience in horticulture, farming and PV facades showed stronger acceptance of building-integrated productive facades. “All groups of experts agree that PFs have the most positive effect on the exterior facade design and have accordingly graded them with higher marks than the designs without PV and VF [vertical farming] systems,” the paper noted.
Concerns were expressed by almost all respondents about the logistics of crop cultivation and irrigation near electronic devices such as the vertical solar modules.
“Several comments recommended exploring more creative designs,” the researchers added.
The lowest rating – 2.84 – was given to a productive facade with only PV modules visible from the inside. The highest mark – 3.9 – was scored by the image in which only plants were visible.
Tips for developers
The study also generated recommendations for the improvement of productive facade prototypes. “It should be noted that the selection of elements for practical application cannot be made based on a single isolated PF element – the entire building should be considered, especially the aesthetic elements of the building envelope, such as composition, proportion, rhythm, transparency, scale, colors and materials,” the researchers stated.
The study’s authors recommended the installation of the PV systems on north and south-facing facades, with ceiling level a preferable location.
Tilt angles of less than 20 degrees were suggested as a better aesthetic solution which would also avoid reflection onto neighboring buildings. “However, a well-designed integration of the PV modules with the planter of the above storey provides additional advantages – it improves the quality of indoor daylight and obstructs the view from inside to a lesser degree,” the study stated.
The researchers added copper indium gallium selenide (CIGS) panels were preferred to crystalline silicon modules, due to their more homogeneous structure.
Emiliano joined pv magazine in March 2017. He has been reporting on solar and renewable energy since 2009.
Approximately half of all jobs will be materially impacted by automation in the next 15-20 years, said professional services firm Accenture in a new report.
Meanwhile, 79 per cent of executives agree that work is shifting from roles to projects—challenging both the function and makeup of the workforce as we know it, said Tanushree Guha, managing director of Applied Intelligence and global lead for the Workforce Analytics practice at Accenture in the report titled “OCED Employment Outlook 2019: The Future of Work”.
As more and more employees look for different opportunities, many are not choosing permanent jobs. In 2018 alone, 56.7 million Americans freelanced, and it is predicted that by 2027, the majority of America’s workers will be freelance. Those choosing part-time work or even working for multiple employers at one time will need to be factored into evolving workforce models, says Guha.
“Advances in digital and automation have allowed organizations to gain efficiency and increase productivity. But adopting these technologies means that organizations must plan for their workforce—especially those at risk of being made redundant,” the report said.
As many as 40 percent of companies are already reporting that talent shortages are impacting their ability to adapt and innovate and this highlights the need for organizations to upskill, reskill and cross-skill existing workers, it added.
A new approach to workforce management
Strategic workforce planning (SWFP) helps organizations strike the right balance between external contractors and internal workforce, as well as the right blend of human and machine effort to drive the business forward.
By providing a holistic perspective of the current workforce, and existing as well as future gaps, workforce planning can help organizations assess forthcoming risks and identify quick wins to yield potential savings. This enables organizations to strategize their recruitment and reskilling plans well in advance, as well as ascertain the most advantageous size and workforce mix of the organization both in the short and long term, the article said.
For example, using HR transformation analytics, organizations are turning recruitment from what was traditionally often a process based on “gut-feel,” to one informed and backed by advanced data insights. This transformation enables businesses to find the right people at the right time with the most relevant skills from a larger pool of applicants, whilst saving on time and money.
According to Guha, SWFP helps companies to be in a future-ready state, by enabling them to:
• Have a good hold of the current workforce scenario • Be well informed of possible future workforce gaps, facilitating them to strategize gap fulfilment and avoid the probable revenue losses due to those gaps • Devise a comprehensive action plan on efficiently utilizing the various workforce types to drive maximum productivity • Be well aware of the overtime changes in workforce dynamics and reasons for those changes • Design and implement optimal reskilling strategies in line with the changing requirements, at the same time as providing optimal career pathways to their workforce. – TradeArabia News Service
Buildings kill millions of birds. Here’s how to reduce the toll
As high-rise cities grow upwards and outwards, increasing numbers of birds die by crashing into glass buildings each year. And of course, many others break beaks, wings and legs or suffer other physical harm. But we can help eradicate the danger by good design.
Most research into building-related bird deaths has been done in the United States and Canada, where cities such as Toronto and New York City are located on bird migration paths. In New York City alone, the death toll from flying into buildings is about 200,000 birds a year.
Across the US and Canada, bird populations have shrunk by about 3 billion since 1970. The causes include loss of habitat and urbanisation, pesticides and the effects of global warming, which reduces food sources.
And that’s where the problems start with high-rise buildings. Most of them are much taller than the height at which birds fly. In Melbourne, for example, Australia 108 is 316 metres, Eureka 300 metres, Aurora 270 metres and Rialto 251 metres. The list is growing as the city expands vertically.
The paradigm of high-rise gothams, New York City, has hundreds of skyscrapers, most with fully glass, reflective walls. One World Trade is 541 metres high, the 1931 Empire State is 381 metres (although not all glass) and even the city’s 100th-highest building, 712 Fifth Avenue, is 198 metres.
To add to the problems of this forest of glass the city requires buildings to provide rooftop green places. These attract roosting birds, which then launch off inside the canyons of reflective glass walls – often mistaking these for open sky or trees reflected from behind.
A problem of lighting and reflections
Most cities today contain predominantly glass buildings – about 60% of the external wall surface. These buildings do not rely on visible frames, as in the past, and have very limited or no openable windows (for human safety reasons). They are fully air-conditioned, of course.
Birds cannot recognise daylight reflections and glass does not appear to them to be solid. If it is clear they see it as the image beyond the glass. They can also be caught in building cul-de-sac courtyards – open spaces with closed ends are traps.
At night, the problem is light from buildings, which may disorientate birds. Birds are drawn to lights at night. Glass walls then simply act as targets.
Architectural elements like awnings, screens, grilles, shutters and verandas deter birds from hitting buildings. Opaque glass also provides a warning.
Birds see ultraviolet light, which humans cannot. Some manufacturers are now developing glass with patterns using a mixed UV wavelength range that alerts birds but has no effect on human sight.
New York City recently passed a bird-friendly law requiring all new buildings and building alterations (at least under 23 metres tall, where most fly) be designed so birds can recognise glass. Windows must be “fritted” using applied labels, dots, stripes and so on.
Combinations of methods are being used to scare or warn away birds from flying into glass walls. These range from dummy hawks (a natural enemy) and actual falcons and hawks, which scare birds, to balloons (like those used during the London Blitz in the second world war), scary noises and gas cannons … even other dead birds.
Researchers are using lasers to produce light ray disturbance in cities especially at night and on dark days.
Noise can be effective, although birds do acclimatise if the noises are produced full-time. However, noise used as a “sonic net” can effectively drown out bird chatter and that interference forces them to move on looking for quietness. The technology has been used at airports, for example.
A zen curtain developed in Brisbane has worked at the University of Queensland. This approach uses an open curtain of ropes strung on the side of buildings. These flutter in the breeze, making patterns and shadows on glass, which birds don’t like.
These zen curtains can also be used to make windows on a house safer for birds. However, such a device would take some doing for the huge structures of a metropolis.
More common, and best adopted at the design phase of a building, is to mark window glass so birds can see it. Just as we etch images on glass doors to alert people, we can apply a label or decal to a window as a warning to birds. Even using interior blinds semi-open will deter birds.
Birds make cities friendlier as part of the shared environment. We have a responsibility to provide safe flying and security from the effects of human habitation and construction, and we know how to achieve that.
This article has been updated to correct the figure for the estimated number of birds killed by the cats in the US to “up to 4 billion”, not 4 million.
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.
GivePower is launching containerized, solar-powered water desalination and purification plants in Mombasa, Kenya and La Gonave, Haiti this quarter. Like GivePower’s debut solar-powered microgrid desalination plant, which went live in Kiunga, Kenya in 2018, these new projects will operate with Tesla’s powerwall battery storage technology.
At launch, both of the nonprofit’s new solar water farm projects will produce a maximum of 75,000 liters of water a day by coupling a 50-kW solar system with 120 kW-hrs of Tesla batteries; together this solar plus battery system will power two low-wattage, reverse osmosis desalination pumps that run simultaneously to ensure continuous operation.
When developing solar-powered desalination projects, pinning down the point at which the technology and the operating model make economic sense is key because the one of the biggest challenges with solar desalination is the amount of energy that it takes to desalinate sea water. Often, this outsized energy need means that a plant requires a larger solar array, which increases the cost of the project.
“We need to see that [these philanthropic] projects are economically viable – that these projects can continue to operate without ongoing funding from donors to keep the systems operational,” said Kyle Stephan, GivePower’s vice president of operations. In addition to building solar water farms, GivePower trains local technicians to operate the plants.
GivePower’s solar water farm systems cost just over $500,000, and they have a 20-year expected lifespan.
Commercial applications for GivePower’s solar water farm technology are not in the pipeline currently, according to Hayes Barnard, CEO of GivePower.
When it comes to developing commercial off-grid, solar-powered desalination systems for water-stressed communities, industry officials see solar microgrid players as particularly well placed to offer solutions.
Drought, saltwater intrusion and climate change are intensifying the need for solutions that use renewable energy to address water scarcity. Simultaneously, falling PV prices and energy storage innovations are making solar-powered desalination solutions more appealing.
So far, all of GivePower’s solar water farms are coastal well-based desalination plants. This is because 98% of the world’s water is in the ocean, and 73% of the world’s population live in coastal areas, where well water is susceptible to becoming brackish, Barnard noted. Additionally, off-coast solar desalination plants’ intake processes are expensive, and coastal well-based solar water farms do not stress underground aquifers.
For its project on La Gonave, which is off the coast of Port-au-Prince, GivePower is applying international building code seismic requirements for its solar water farm’s concrete foundation, and it is building a solar canopy that is capable of withstanding a category-four hurricane.
Initially, the nonprofit focused on providing solar-powered lighting to schools without electricity in the hope that this would open up educational opportunities for girls in developing countries. But quickly it became clear that helping communities achieve water security was key to addressing this issue because often girls were often missing school because their days were spent fetching water, according to Barnard, a GivePower co-founder. GivePower became an independent organization in 2016.
Last week GivePower’s solar-powered desalination technology received the UAE’s Global Water Impact Award for innovative small projects.
The value of a liberal arts education has become a pivotal discussion within the global higher education sector over the last decade. No longer confined to the hallowed halls of ivy-covered American colleges, this multidisciplinary approach, which focuses on developing creative thinking skills, has begun to transform the curricula of institutions worldwide.
To examine this further, the Times Higher Education MENA Universities Summit 2020, taking place at NYU Abu Dhabi on 10-12 March, will explore the benefits and challenges of broadening the liberal arts educational model across Middle Eastern and North African countries.
Fostering discussions on how to prepare students for a variety of career paths after graduation is high on the list of the summit’s objectives. Hoda Mostafa, director of the Center for Learning and Teaching at the American University in Cairo, will share useful practices to facilitate the leap between an interdisciplinary education and careers both in and out of academia.
Wasif Rizv, founding president of Habib University, Pakistan’s first liberal arts and science institution, will provide an instructional model from south-east Asia to demonstrate how a liberal arts education can develop talent to meet the demands of a global workforce.
Another key focus will be enhancing the research culture in countries where talent attraction has faced challenges. Rana Dajani, associate professor at Hashemite University, who established stem cell research ethics law in Jordan, will debate with other panellists which tools are needed to support the next generation of researchers in the MENA region.
Safwan Masri, the current vice-president for Global Centers and Global Development at Columbia University, who has written extensively on the role of Tunisia in the Arab Spring, will deliver the summit’s closing keynote, underlining the power of research and knowledge transfer in the region to ultimately promote a greater cultural understanding and bridge political boundaries.
The summit will include an exclusive THE rankings masterclass that will dissect the methodology behind the World University Rankings, giving an analysis of the MENA region’s successes and future opportunities. Additionally, delegates will enjoy a deep-dive into THE’s new University Impact Rankings, which are based on universities’ successes in working towards the United Nation’s Sustainable Development Goals.
John Gill, editor of THE, said: “We are at a crucial moment for the world on numerous fronts – from how to respond to global threats such as climate change, to how to navigate a path to greater understanding and collaboration. Higher education and research will play crucial roles in finding the answers.
“At this summit, we will discuss the role of liberal arts education, at a time of debate about how best to prepare students for the new economy, and how to support societies in transition. We will consider how a global perspective can transform the impact of education, and address the interplay between education and research in the MENA region. These topics touch on every aspect of what universities do, as institutions that educate, create new knowledge, and drive economic and social progress, so we are delighted to have such a diverse programme of speakers, and to be meeting at NYU Abu Dhabi, itself a great example of innovation.”
The Times Higher Education MENA Universities Summit 2020 will take place 10-12 March at NYU Abu Dhabi. Find out more.
The future of real estate development is digital, with demand for cost-effective, innovative and sustainable buildings inspiring data-led business models that will fuel the growth of the Middle East construction industry, say, industry experts. So is Digital innovation ‘key to ME construction sector’?
“Innovation and sustainability in construction, specifically in connection with new digital solutions, are driving the future of real estate in the Middle East,” said Dierk Mutschler, CEO, Drees & Sommer, a leading construction and real estate consultancy.
“A gentle slowdown in some regional markets coupled with the emergence of new technology and business models will pave the way for forward-thinking companies to capitalise on these shifts. From 2020, the increasingly competitive environment will result in more demand for quality products, leading to a longer-term focus on investment in sustainable business models.
“After all, future business models, products and services will be measured not only by their economic success, but by their impact on our environment,” asserted Mutschler.
“Old business models will become obsolete,” he continued. “Real estate developers and contractors will need to truly understand data and what digitisation means for the construction industry. They will need to design and construct buildings with the capacity to adapt to new technology and future needs for the next 50 to 80 years.
“Ultimately, digitisation means ‘software’. If smart buildings are in danger of becoming outdated, a software update can make them state-of-the-art again. In our Drees & Sommer innovation laboratories, we are researching the use of regenerative technology, which will help ensure buildings are adaptable and future-proof– offering significant cost-saving benefits too,” said Mutschler.
He cited the findings of the KPMG Global Construction Survey, which forecasts six to 10 percent growth in the UAE’s construction sector in 2020 and Global Construction 2020, a report from PricewaterhouseCoopers, Global Construction Perspectives and Oxford Economics, which forecasts $4.3 trillion will be spent on construction in the Middle East and North Africa region over the next decade, as indicative of the positive outlook for the sector.
With regard to the UAE specifically, Stephan Degenhart, associate partner and managing director of Drees & Sommer Middle East, said the current focus lies in the delivery and completion of ongoing projects in anticipation of Expo Dubai 2020, which will attract 25 million visits during its six-month duration.
Following this, he predicted development would focus on delivering the ambitious roadmap of Smart Dubai 2021, which aims to make Dubai the happiest city on earth by embracing technology innovation for a seamless, efficient, safe and personalised city experience.
Degenhart commented: “The opportunities for growth lie within these shifts and changes. We predict that buildings will be completely reimagined and investors will need to consider how their business models will serve the new demands of end users. Existing buildings will also need extensive repositioning and revitalisation in order to compete in the digitised environment of the future.”
There are a host of smart technology solutions already available, from 3D laser scanning and digital modular fabrication to intelligent construction equipment and BIM models for design and construction, not to mention the use of IoT systems, robotics and data-driven business models for operation. Challenges lie in achieving the successful integration or networking of multiple systems from different technology providers and critically, according to Degenhart, in realising a change in mindset.
“Digital solutions have the power to dramatically impact the way we plan, construct and operate buildings. According to recent research by McKinsey & Company, adopting digital solutions throughout every phase of the construction process could increase market productivity by as much as 15 per cent and reduce project costs by up to 45 per cent,” Degenhart said.
“At Drees & Sommer, we are looking forward to working with developers and investors seeking to expand or enhance their portfolio in 2020, as well as supporting those new to the region. Our goal is to deliver cost-effective and sustainable buildings, profitable real estate portfolios, people-oriented working environments, visionary mobility concepts and liveable cities,” concluded Degenhart.
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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