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Join us weekdays for bite-sized updates, expert analysis and a global view of the energy transition.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing shift towards a decarbonised economy.
Here are the main climate and energy stories making the news around the world:
Sticking to the budget
Image ChatGPT / FORESIGHT
“The budget from January 1st 2024 is about 275 billion tonnes of CO2. Given that we emit about 40 [billion] every single year, we would exhaust this budget in around seven years. So if we keep emitting the same amount of CO2 as we did this year, we would reach this threshold and have a 50% chance […] of meeting the 1.5C.” – Pierre Friedlingstein, University of Exeter
More climate and energy news is available on FORESIGHT website, including an opinion piece on the benefits of building renovation and a deep dive into greening steel.
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated:
Email us at thejolt@foresightdk.com
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From FORESIGHT Climate & Energy, Watt Matters is a podcast all about the energy transition and the shift to a decarbonised economy.
For the best possible audio experience, listen to Watt Matters in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
The US’ electricity system is complicated, with each of the 50 states setting its own rules for how markets work, how power is priced and who manages customer relations.
But amid the complexity, Octopus Energy US sees a big opportunity to continue its UK success story across the pond and help US customers benefit from decarbonised electricity.
According to Michael Lee, the CEO of Octopus Energy US, customers can be the centrepiece of a grid based around more flexible demand if the focus is on cheaper prices and rewards for joining the road to decarbonisation.
He joins Watt Matter’s David Weston and Jan Rosenow to look at the company’s goal to boost customer’s involvement in the energy transition and the challenges of decarbonising the US grid.
Enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our X accounts:
Michael Lee
Michaela Holl
Jan Rosenow
David Weston
Kira Taylor
@WattMattersPod
FORESIGHT Climate & Energy
Listen and subscribe to Watt Matters wherever you get podcasts. Follow us on Twitter at @WattMattersPod or email us at show@wattmatterspodcast.com
Illustration: Masha Krasnova-Shabaeva.
Show notes:
Our previous podcast with Octopus Energy in the UK can be found here.
Suggested reading from Michael: Reuters article about the US’ struggle with supply chains and how this is affecting the energy transition.
What caught our eye this week:
Michael’s pick: Can the Electric Reliability Council of Texas show the way to faster and cheaper grid interconnection?
Dave’s pick: What would nature say? Second UK company appoints the natural world to its board
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Talking Transitions is a new special podcast series from FORESIGHT Climate & Energy and EY looking at how the transition to a sustainable economy—both from an environmental, but also social perspective—is affecting three key areas: the energy and resources industry, the financial services sector, and Government.
The rate of change the energy sector is witnessing is the fastest it has ever been. As a result, many energy companies, regulators, legislators and supply chains are struggling to keep up.
There is a greater need for collaboration across the full value chain to leverage the new capabilities being developed to create a sustainable economy, and to release the handbrakes hold the transition back.
With views from across the full energy spectrum, Serge Colle from EY and David Weston at FORESIGHT Climate & Energy are joined in this episode by:
Links
EY’s Energy and Resources Transition Acceleration model report
Enjoy the show!
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Over 25 million job-years would be created in Europe by adopting available green technology for buildings
Buildings account for 36% of final energy consumption and nearly 40% of energy-related CO2 emissions. The EU cannot meet its ambitious climate targets without decarbonising buildings.
Given the size of the task ahead and the renewed interest in climate policy as industrial policy, there is a massive potential for job creation when cost-effective decarbonisation technologies are adopted, which in turn leads to economic benefits for small and medium enterprises (SMEs) and poorer households; a triple win. This supports each of the pillars of sustainable policy: economic, social, and environmental.
Research shows today’s conversation around the energy performance of buildings is fundamentally flawed and must switch from a narrative around the presumed cost of renovation to the benefits foregone because of insufficient ambition, implementation delay, or worse yet, inaction by legislators.
Much more aggressive policies are needed to deliver jobs, justice, and decarbonisation, especially for non-residential buildings.
GREEN, FAIR AND LOCAL
Deployment of low-carbon technologies in the buildings sector can create jobs, including those related to the construction, installation, operation, and maintenance of solar photovoltaic systems, energy storage systems, and heat pumps.
Lawmakers should prioritise low-carbon technologies in the building sector to realise the benefits to society and the planet through financial incentives, regulations and standards. Even using conservative estimations, millions of lasting jobs would be created while driving to net zero and economic growth.
These technologies can create major opportunities in France (over 9 million jobs years), Germany (over 6 million), Italy (over 4.5 million), Spain (over 4 million), and the Netherlands (over 2 million). Such benefits incentivise companies, cities and governments to accelerate decarbonisation.
Buildings are already a significant economic driver of growth today. Builders and related industries account for 18 million jobs across the EU today—nearly 8% of total employment. The International Energy Agency (IEA) calculates that for every €1 million invested in energy renovation between 9 and 30 local jobs are created.
It is worth highlighting the word “local”. Renovations are typically led by small construction firms and contractors, supporting SMEs and local apprenticeships.
Our research paper elucidated the job creation potential on a per-building basis. The results demonstrate the power of clean technologies to support employment.
ELECTRIFICATION, DIGITALISATION AND FLEXIBILITY
To maximise impact, strategies cannot rely solely on insulation and passive solutions. Adopting integrated electrification, digitalisation, storage and onsite renewables is equally critical to transform buildings from energy consumers to flexible assets supporting decarbonisation.
All-electric buildings paired with smart controls and solar PV unlock huge efficiency gains compared to fossil fuels. The merit of all-electric buildings cannot be understated. Heat pumps can reduce heating emissions up to 80% over natural gas. Smart buildings optimise energy usage based on occupancy. Battery storage reduces grid strain. Onsite solar displaces carbon-intensive electricity.
These technologies also enable demand response. Digitised buildings can shift usage based on grid signals, balancing supply and demand. Electric vehicles, thermal storage and other distributed assets can store energy.
This “grid-interactive efficient buildings” approach turns buildings into a managed resource supporting decarbonisation—exactly what 21st-century infrastructure requires.
Financial incentives need to promote electrification and digitalisation, not just conventional upgrades. Codes should mandate or encourage fossil fuel phase-outs, EV charging, solar PV, energy storage and smart controls. Plans focused only on insulation will strand assets, minimise emissions reductions and ultimately miss the opportunity for meaningful climate change action.
A JUST TRANSITION
Renovations done right promote social equity and inclusion. Small firms contracted for upgrades create jobs across communities. Targeted training programmes allow disadvantaged groups to access careers in construction. Lower energy bills make housing more affordable. Energy poverty decreases, along with associated health problems.
Furthermore, renovation has advantages over new construction. Reusing existing building materials lowers the environmental impact and reduces construction time compared to demolition and reconstruction. Refurbishment also preserves cultural heritage, neighbourhood character and avoids tenant displacement.
The IEA estimates doubling the renovation rate could provide three million additional direct jobs in the EU by 2030. Tax revenues generated from job growth can subsidise upgrades for low-income households. Between 50 million and 80 million Europeans lived in energy poverty and “struggled to keep homes adequately warm” before the pandemic and, for most EU countries for which we have data, this number has increased following Russia’s invasion of Ukraine.
As demand grows, the EU needs to scale up skills training and education programmes. This will prepare workers for the estimated doubling of building renovations required this decade. Youth apprenticeships provide pathways into the trades. Continuing education helps experienced workers add skills in high-performance construction, heat pumps, solar PV, IT and building controls.
SEIZING THE OPPORTUNITY
The climate imperative is clear and the social and economic benefits are compelling. EU leaders have a pivotal opportunity to implement policies that maximise job creation, deliver a just transition and rapidly decarbonise building stock.
This means making the European Performance in Buildings Directive (EPBD) rhyme with opportunity. Parliament’s mandate was notable for its ambition and technology push, both of which have been hailed by industry.
These should be preserved throughout the trilogues, especially for non-residential buildings. The triple win is clear and the moment to seize it is now.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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Join us weekdays for bite-sized updates, expert analysis and a global view of the energy transition.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing shift towards a decarbonised economy.
Here are the main climate and energy stories making the news around the world:
Over land and sea
Image ChatGPT / FORESIGHT
“Either the EU has to fix it so all international trains enjoy zero VAT or they have to remove the exemption for aviation, to have a level playing field” – Victor Thévenet, T&E
The latest episode of Watt Matters is available for our subscribers today. It’s all about renewable energy in the US, so make sure to check that out. It will also be available for everyone on Friday.
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated:
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Listen to Talking Transitions in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Talking Transitions is a new special podcast series from FORESIGHT Climate & Energy and EY looking at how the transition to a sustainable economy—both from an environmental, but also social perspective—is affecting three key areas: the energy and resources industry, the financial services sector, and Government.
The Financial Services sector is looking to scale up its transition finance capabilities.
There are a range of available mechanisms and different approaches being taken but it remains still an early stage development with incomplete and varying definitions of what forms a “transition finance” investment.
Episode four of Talking Transitions was recorded in the Green Zone at the COP28 climate negotiations in Dubai. The panelists delve into the difficulties of establishing such a definition whilst avoiding greenwashing and how the culture of the finance sector is changing in its approach to supporting low-carbon investments.
Editor-in-Chief David Weston is joined by Kazuto Kita from EY’s financial services team and Joost Vreeswijk from its tax team.
Also on the panel are:
The City of London Lord Mayor Michael Mainelli also provides a scene-setting introduction.
Enjoy the show.
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Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is a member of FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Join us weekdays for bite-sized updates, expert analysis and a global view of the energy transition.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing shift towards a decarbonised economy.
Here are the main climate and energy stories making the news around the world:
Good COP, Bad COP
Image Midjourney/ FORESIGHT
“The crappier the previous year’s conference gets, the better and more hopeful the next one becomes.” – Claudio Angelo, Climate Observatory
FORESIGHT Editor-in-Chief David Weston and CEO Kasper Thjell-Karstensen are at COP this week recording episodes of the Energy Enablers and Talking Transitions podcast with EY. You’ll be able to hear the first of those episodes later this week!
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated:
Email us at thejolt@foresightdk.com
Elevate your listening experience, try our app – iOS / Android
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is a member of FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Join us weekdays for bite-sized updates, expert analysis and a global view of the energy transition.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing shift towards a decarbonised economy.
Here are the main climate and energy stories making the news around the world:
Taxing times at COP28
Image Midjourney/ FORESIGHT
“We’ve been talking for decades about how to find the trillions, rather than the billions we need for climate action.”
FORESIGHT Editor-in-Chief David Weston and CEO Kasper Thjell-Karstensen are at COP this week recording episodes of the Energy Enablers and Talking Transitions podcast with EY. You’ll be able to hear the first of those episodes later this week!
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated:
Email us at thejolt@foresightdk.com
Elevate your listening experience, try our app – iOS / Android
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is a member of FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Join us on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing transition to a decarbonised economy.
Here are the main climate and energy stories making the news around the world:
We’re going daily
While you’re here, check out the latest episodes of the Policy Dispatch and Energy Enablers, plus two new deep dives on aviation and shipping.
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated:
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From FORESIGHT Climate & Energy, Watt Matters is a podcast all about the energy transition and the shift to a decarbonised economy.
For the best possible audio experience, listen to Watt Matters in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
There are no studies where absolute zero emissions can be reached with reductions alone, meaning carbon removals are crucial to reaching ‘net’ zero emissions, according to the IPCC. After the world has reached that point, any remaining emission would need to be countered by an equivalent removal from the atmosphere.
Because of this, the world of carbon removals is rapidly growing in importance, from technological innovations to legislation looking into how to verify removals.
To introduce us to the world of capture and storage (CCS) and carbon dioxide removals (CDR), Eve Tamme, policy expert and founder of climate policy advisory, Climate Principles, joins the Watt Matters team.
Enjoy the show.
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our X accounts:
Listen and subscribe to Watt Matters wherever you get podcasts. Follow us on Twitter at @WattMattersPod or email us at show@wattmatterspodcast.com
Illustration: Masha Krasnova-Shabaeva.
Show notes:
You can find Eve’s latest blog post on the convergence of the voluntary and compliance carbon markets here.
The CCS ladder Michaela mentions is available here.
Our previous podcast on the Methane Regulation can be found here.
What caught our eye this week:
Jan’s pick: Joint Research Centre paper on heat pump developments, trends, value chains and markets
Eve’s pick: Global Status of CCS Report 2023 by Global CCS Institute
Dave’s pick: UK government raises maximum prices in renewable energy auction
Michaela’s pick: EU negotiators reach provisional agreement on regulating methane emissions
Kira’s pick: Upcoming report – Piloting the Climate Club: A Sectoral Alliance for Steel. The report will be available here at the end of November.
Try full access to FORESIGHT Climate & Energy for €1 a day
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Listen to Talking Transitions in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
When we talk about the transition to a decarbonised economy, it sounds like just one change. In reality, however, this societal evolution holds within it a number of different and varied transitions across sectors, geographies and timelines.
This is Talking Transitions, a new special podcast series brought to you by FORESIGHT Climate & Energy and EY.
In this series, we’ll be looking at how the transition to a sustainable economy—both from an environmental, but also social perspective—is affecting three key areas: the energy and resources industry, the financial services sector, and Government.
In the first three podcasts, we will take a look at where we stand today, focusing on both the risks and the opportunities for these three areas.
Then, we will be at the COP28 climate negotiations in Dubai for some live podcasts to discuss how challenges can be addressed, no-regret strategies, the role of both the public and private sectors and how they interlink. And we will then follow up on COP with a further set of three podcasts reflecting on what took place in Dubai and what the next steps will or should be.
Guiding me along the way will be an EY thought leader from each of the three different areas as well as a number of expert guests bringing their own unique insights into the transitions.
We hope you will join us too.
Stay tuned.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
A taste of e-fuel
Image MidJourney / Prompts FORESIGHT.
While you’re here, check out the latest episode of the Policy Dispatch as well as our new deep dive on e-fuels and a look at the complex world of electrolysers,
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
Email us at thejolt@foresightdk.com
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Join us on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
Welcome to today’s episode of The Jolt, arming you with the news and insight you need to navigate the rapidly changing transition to a decarbonised economy.
Here are some of the main climate and energy stories making the news around the world:
You brake it, you buy it
“Declaring an emergency to the German economy would allow the government to deviate from this constitutional fiscal brake”
While you’re here, check out the new edition of the FORESIGHT magazine, now available as a digital copy.
We want The Jolt to be as listener-driven as possible. Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
Email us at thejolt@foresightdk.com
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For the best possible audio experience, listen to Policy Dispatch in the FORESIGHT app. If you don’t already have the app, download it from the App Store or Google Play. Use your FORESIGHT login details to access the app.
Home to nearly 3 million people and nestled on Europe’s eastern frontier between Romania and Ukraine, Moldova has been significantly affected by Russia’s invasion of Ukraine because of its extremely fragile energy security situation.
That prompted Moldova to hook its electricity grid up to continental Europe’s and to pursue an even more ambitious strategy to align itself with European Union rules and regulations. This month, the EU said that membership talks should begin as soon as possible.
On top of all that, Moldova also wants to bolster its energy security by ramping up renewable power and generating homegrown electricity, rather than relying on others to provide energy. Bountiful natural resources and political momentum mean that Moldova could well end up decarbonising quicker than some Western European countries.
State-secretary for energy Carolina Novac explains in this episode why Moldova has embarked on a green path, what challenges are standing in its way and what is needed from its international partners to pull it off.
Thanks for listening, enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Carolina Novac
Sam Morgan
@Policy Dispatch
Kira Taylor
FORESIGHT Climate & Energy
Listen and subscribe to Policy Dispatch wherever you get podcasts. Follow us on Twitter at @Policy Dispatch or email us at show@policydispatch.com
Show notes:
FORESIGHT Policy Section
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Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
We are living in a raw material world
Image MidJourney / Prompts FORESIGHT.
While you’re here, check out the latest episode of the Policy Dispatch and our new deep dive on e-fuels. Also stay tuned for Friday’s episode when we will give you a sneak peek at our new magazine.
Audio credit: European Commission archive
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
Email us at thejolt@foresightdk.com
Elevate your listening experience, try our app – iOS / Android
The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Global leaders herald the urgency of infrastructure transition, but the research paints a contrasting image
From the streets of urban metropolises to the corridors of power in major corporations, a multiplicity of voices seek to influence the future of our infrastructure. And amidst these different voices lies a profound revelation: division.
The recent Infrastructure Transition Monitor 2023 report uncovers these divides, shedding light on the differences that might slow our collective race to net zero. As we push for the modernisation and decarbonisation of energy, buildings, mobility and industries, it is clear that the stakes have never been higher. The infrastructure transition—projected to span three decades—is the most ambitious and encompassing transformation in the history of infrastructure development.
Sadly, the research does not provide a clear map that we can use to chart our course to a cleaner energy transition as it unveils surprising discrepancies. While more than 50% of the 1400 executives surveyed see decarbonisation as a competitive advantage, less than half (47%) believe their countries possess an effective decarbonisation strategy.
Even more troubling, less than 50% of organisations anticipate meeting their decarbonisation targets by 2030.
THE TRANSITION BATTLEGROUND
While the urgency of the energy transition and industry decarbonisation is at the forefront, other forces like digitalisation, demographic shifts and unpredictable factors like technological innovations and political shifts are also at play.
The result is that innovation and integration are at a crossroads and debates surge over the feasibility of various solutions, such as carbon capture, green and blue hydrogen, energy storage and much more.
Business is divided on the likelihood of decarbonisation outcomes, with 46% of respondents saying they will likely accelerate decarbonisation efforts in the year ahead, but 31% saying it is unlikely.
The views are as polarising as many countries’ decarbonisation strategies. What we urgently need is alignment and collaboration. But if we are to believe the numbers, consensus remains elusive and divisive opinions threaten the momentum we desperately seek.
To better grasp where we are collectively in the transition, we must look at the different issues, challenges and opportunities the players face. We have created a view across three spheres of influence – regional, city and industry perspectives.
SPHERE 1: THE REGIONAL PERSPECTIVE
Different regions, with distinct socio-economic and political landscapes, offer diverse approaches to energy transition. While the urgency of energy transition is universally recognised, the strategies to achieve it are far from uniform.
The study’s data reiterates this divide, highlighting that less than half of executives are confident in their nation’s decarbonisation strategies, and 10% or less consider their region/country to be “advanced, fully integrated, full-scale” on the major energy goals of the infrastructure transition.
Decarbonising the world’s energy systems requires an overhaul of the infrastructure supporting it. And this is a multi-decade, $275 trillion shift in how we generate, distribute and consume electrical power, on top of the industrial processes, buildings, transport, governance, systems and structures that keep the world functioning.
Someone has to be responsible for advancing the infrastructure transition. When asked to allocate percentages by groups, regulatory authorities ranked highest at 31%, then the owners of assets, investors/shareholders at 25%, businesses at 17%, politicians at 13%, and citizens at 13%. The challenge is that each of these is interdependent, which calls for more action and better leadership.
SPHERE 2: THE URBAN ODYSSEY
Cities are on the front line in the battle against climate change. As urban populations boom, so does the demand for efficient transportation, building and energy systems. Yet even as cities recognise decarbonisation as a competitive advantage, they grapple with the very real challenges of implementing wide-scale changes within their complex infrastructures.
Let’s look at the figures: For electrification and decarbonisation of heating and cooling, 24% of survey respondents consider it as mature or advanced; 22% for city-wide smart grid implementation; and 21% for the expansion and integration of renewable energy.
Then there is the debate around electric vehicles, the infrastructure required to support them, and the rebates to use them—all of which are now highly politicised. And where there could be quick wins like mobility-as-a-service, the digitalisation of essential services, and better use of 5G and the cloud, the wheel of progress seems to be stuck in third gear.
To tackle the issue head-on, cities need to become more co-ordinated in their efforts. Public-private partnerships must become the norm and citizens must feel involved; the data from smart systems must be used to make smart decisions and leadership needs to become more decisive.
SPHERE 3: CRAFTING TOMORROW’S EDIFICES
The industrial sector is under immense pressure to decarbonise its business models, assets and infrastructure.
To achieve these goals, it is also a sector that needs diverse funding resources, better risk management, skills development, supply chain innovation, regulatory collaboration and better deployment and adoption of digital, automated, and data-driven solutions.
This is also a sector where socio-economic factors have the most impact. And with only 17% of the executives surveyed confident their revenue or profitability will grow in the year ahead—we have a chicken and egg scenario.
Executives know that decarbonisation will cost less in the long run. Still, the coffers are not in a position to support the immediate investment, while the one factor more than any other that threatens to stall the energy transition is a recession.
An important step for industry is improving the energy efficiency of buildings, which is also critical, as according to the World Green Building Council, buildings contribute 39% of energy-related carbon emissions.
The obvious choice is to retrofit existing buildings with modern solutions, but supply chain challenges are playing a significant factor in holding back progress, with 46% of the executives stating they are likely to accelerate decarbonisation in the next year also saying that the one thing that will stall this is the inability to secure the equipment needed to do so.
BOTTOM LINE
No matter how you look at it, infrastructure transition is urgent and the consequences of delay are severe. Global warming needs to be reversed or, at the very least, slowed down so we can become more resilient to climate change.
This will happen through the rapid transformation of infrastructure at scale and better and greater alignment, collaboration and standardisation. Globally we are sitting on a treasure trove of technology and digitalisation solutions to help the process. Yet, they are not being leveraged to their full potential due to various concerns, from cost to expertise.
With the current rate of progress, achieving global decarbonisation goals becomes increasingly challenging. As stakeholders in this monumental transition, the path forward needs harmonized action as it is no longer just about recognising the importance of the transition; it is about unified, strategic and immediate action. •
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
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Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Tesla’s Chinese fortunes hang in EU balance
Image MidJourney / Prompts FORESIGHT.
While you’re here, check out our latest deep dive on Zimbabwe and its foray into the murky world of carbon credit trading, as well as this op-ed on how to make hydrogen production cheaper.
Audio credit: European Commission archive.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
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Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
All about the base
Image MidJourney / Prompts FORESIGHT.
While you’re here, check out the latest edition of Watt Matters—a special live episode—and stay tuned for next week’s episode of the Policy Dispatch, delving into the complex case of Moldova.
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Indonesia asks the $20 billion question
Image MidJourney / Prompts FORESIGHT.
While you’re here, check out the latest edition of Watt Matters, a special live episode that looks into how public procurement of energy could help clean up the transport sector.
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Cost reductions in electrolyser technology can be achieved on several fronts
It is increasingly clear that the energy transition will require large amounts of low-carbon hydrogen to replace fossil fuels in a range of industries.
Traditionally-made hydrogen, generated via steam methane reforming (SMR) has a significant carbon footprint, but there are various ways of making the gas with lower emissions.
The one that holds the most promise is “green” hydrogen, made from the electrolysis of water powered by electricity from renewable energy sources. Green hydrogen is free of emissions and could scale to limitless levels, given enough renewable energy capacity.
The challenge with it today is that it is relatively expensive.
BloombergNEF, to take just one piece of research, estimates that green hydrogen today could cost anywhere between $4 and $11 per kilogram to produce. This compares to $1 to $3 per kilogram for traditional or “grey” hydrogen. Plus, it is more expensive than another low-carbon contender, blue hydrogen, which is made by trapping the carbon from SMR and costs between $2 and $5 per kilogram.
FALLING COSTS
To achieve its full potential, green hydrogen needs to cut costs significantly.
The good news is that most of this cut will come from reductions in the cost of renewable energy. As much as 65% of the levelised cost of hydrogen (LCOH)—how much it costs to produce a kilo of hydrogen once investments and operating expenses are factored in—relates to the price of electricity.
This is fortunate because the cost of wind and solar power has seen spectacular reductions in recent decades, stalling only in the last couple of years as post-Covid-19-pandemic demand pushed up the price of commodities used in panels and turbines. The International Energy Agency expects the downward pricing trend will resume from 2023.
Further reductions in LCOH could come from other capital and operational cost factors in electrolysis. The capital cost of projects, which mainly relates to the electrolyser and related assets, contributes to around 25% of LCOH, while operational expenditure—on maintenance, water and so on—makes up the final 10%.
SCOPE FOR SAVINGS
This means electrolyser cost reductions will be able to address just over a third of the total cost of green hydrogen, which is significant enough to warrant serious attention. Electrolyser manufacturers see plenty of opportunities for cost reduction.
Operating costs could go down with access to spare parts, longer-lasting components, the use of preventive maintenance and efficiency improvements to the electrolysis stack, for example by using new membrane materials. Such materials could achieve increased conductivity and enhanced temperature durability, while catalytic improvements could reduce energy losses associated with the electrolysis process.
Capital expenditure (Capex), meanwhile, could go down through manufacturing scale, and electrolyser unit costs can be significantly reduced through standardisation. The use of standard components not only facilitates assembly and helps improve quality and reliability but can also help reduce costs along the supply chain by allowing component manufacturers to scale more easily.
STANDARDISATION KEY
This has been proven in other clean technology industries, from solar photovoltaics to onshore wind and lithium-ion batteries. As the green hydrogen industry grows, the level of standardisation will grow too. For now, the market is indeed populated by a wide range of technologies and design approaches.
A certain amount of standardisation is already present in the alkaline electrolyser market, which is the most mature and widespread technology. Another benefit of alkaline electrolysis is that it does not rely on rare earth materials that could face supply bottlenecks, affecting prices.
Proton exchange membrane (PEM) electrolysis is suitable for green hydrogen production but relies on rare-earth anode and cathode materials and could therefore face challenges in cost reduction. There is also concern that a proposed European Chemicals Agency ban on polyfluoroalkyl substances (PFAS) or “forever chemicals” could affect some electrolysers as they are often reliant on fluoropolymer-coated membranes.
The reason PEM is sometimes chosen for green hydrogen projects is that it works well with the variable renewable power supply that you typically get from wind and solar generation. However, it is not the only electrolyser technology that can achieve this.
UNDER PRESSURE
A further line of research and development focuses on the fact that most of the green hydrogen produced by electrolysis will need to be pressurised before it can be moved or stored.
This pressurisation requires energy, so electrolysis approaches that produce hydrogen under pressure—and not all do—will naturally be more efficient and cost-effective. Pressurisation costs do not rise linearly with pressure; instead, the first few atmospheres are the hardest to achieve and at higher pressures, the energy requirements and costs are lower.
Electrolysers do not need to pressurise hydrogen much to have a significant impact on cost. Smaller electrolysers can have outlet pressures of around 30 bars, while larger prototype electrolysers deliver 35 bars of pressure.
Plant developers should stay abreast of such cost-related innovations, as well as look for ways to simplify and cheapen project integration and design. The path to reducing the cost of green hydrogen to competitive levels is very clear and electrolyser manufacturers are treading it already.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
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Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Carbon markets are ready to takeoff
Image MidJourney / Prompts FORESIGHT.
Check out our latest deep dives on baseload power and hybrid power projects.
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Time to bring net-zero forward?
Image MidJourney / Prompts FORESIGHT.
Check out the latest episode of the Policy Dispatch, which focuses on Brazil, as well as our new deep-dive article on why the case for baseload power is being undermined by solar PV.
Audio clip credits:
European Commission audiovisual service
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From FORESIGHT Climate & Energy, Energy Enablers is a podcast in which we speak to those who are making a difference in the race to a decarbonised economy.
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Joining David Weston on Energy Enablers is joined by Viggo Aavang, vice president of power solutions at Danish renewables developer Better Energy.
Viggo tells David why electricity prices remain high despite the growing influence of renewables on today’s western grids and how these markets are adapting to the rise of new price models like power purchase agreements (PPAs) and Contracts for Difference (CfDs) •
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From FORESIGHT Climate & Energy, Energy Enablers is a podcast in which we speak to those who are making a difference in the race to a decarbonised economy.
For the best possible audio experience, listen to Energy Enablers in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you want to know if your company/organisation is a member of FORESIGHT and would like a reminder of your login details, email info@foresightdk.com.
In this week’s Energy Enablers, David Weston speaks to Lisette van Doorn, CEO of ULI Europe, a nonprofit research and education organisation focused on land use and real estate development disciplines.
In this episode, Lisette warns that the real estate sector is not factoring in the cost of doing nothing when valuing their assets.
As buyers and building users become more aware of the carbon footprint of a building, owners will need to consider the green credentials of their property when valuing it. Less efficient buildings are going to fall in value. •
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FORESIGHT Climate & Energy
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Brazil is the fifth largest country in the world and also it’s fifth largest emitter, predominantly because of deforestation. Home to 216 million people and rich in natural resources, Brazil is growing fast but still struggles with immense socio-economic divides. That makes its approach to climate and energy issues somewhat unique and particularly challenging.
Sam is joined for this episode by Claudio Angelo from Climate Observatory, a network of 77 NGOs based in Brazil. The discussion ranges from how Brazil’s recent change of government will impact its decarbonisation efforts to more detailed issues like carbon markets and trade talks. Can Brazil come back from the brink and engage with or even lead global climate action? Tune in to find out.
Thanks for listening, enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Claudio Angel
Sam Morgan
@Policy Dispatch
Kira Taylor
FORESIGHT Climate & Energy
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Show notes:
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
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Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
We want to hear your views on the energy transition. On Friday’s episode we will discuss the result of an ongoing poll on a particular green issue. Please vote either here or here.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Check out the latest episode of Watt Matters, which digs into how Poland’s recent election result will affect energy and climate thinking, and stay tuned for the next episode of the Policy Dispatch, which will focus on Brazil. Our latest deep-dive looks at how district heating is a natural ally of power-to-x technology.
Audio clip credits:
Monty Python Official YouTube
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Repurposing waste heat from Power-to-X for district heating requires coordination to maximise these synergies
WASTE NOT WANT NOT Recovering waste heat from electrolysis processes provides a low-carbon source for district heating operators
SCANDINAVIA TRIALS Several PtX projects across Finland, Denmark and Norway have partnered with district heat network operators
KEY QUOTE The equipment or components required to integrate a green hydrogen production facility with a district heating network are relatively simple to implement
Losses happen when energy is converted from one form to another. This is fundamental. Power-to-X (PtX) plants consume electrical energy to generate chemical energy and heat. The resulting hydrogen molecules can be the building blocks to replace fossil fuels used in heavy industries, chemical processing and fuels for heavy transport, shipping and aviation. But often the heat is wasted.
The EU is expected to produce ten million tonnes of renewable hydrogen to meet part of its demand by 2030. Since around 25-35% of electrical energy supplied to PtX facilities is transformed into heat in the electrolysis part of the process, while other associated activities like compression also produce heat, there is a big opportunity to reuse all that hot air.
According to a Danish study by Euroheat & Power, a trade association, six gigawatts (GW) of installed PtX capacity would produce enough surplus heat to cover up to around 20% of district heating demand.
HAPPY COUPLING
“Green” hydrogen—and derivative products like ammonia—are more expensive to manufacture than “grey” or “blue” hydrogen. Securing revenue streams for heat and oxygen, both byproducts of electrolysis, enables green hydrogen developers to improve the return on investment of these plants. Ramboll, a Danish engineering firm, estimates that heat sale revenues could be up to 5% of a PtX facility’s total income.
Erik Rynning from Aker Horizon, a Norwegian PtX project developer, says the company is exploring reusing waste heat in district heating or industrial applications to improve the resource efficiency of its PtX projects, add an additional revenue source and enhance circularity.
Municipalities and district heating companies are also interested in PtX as they are planning ten years ahead, says Ramboll’s Eva Ravn Nielsen. “A large green hydrogen or PtX project in development nearby could influence how they invest in their district heating networks in future because it is potentially a supplier of low-cost waste heat,” she says.
HEAT TRIALS Helen is building a PtX electrolyser pilot in Vuosaari with the waste heat to be used in the company’s nearby district heating network
TECHNICAL CONSIDERATIONS
“From a technical perspective, the equipment or components required to integrate a green hydrogen production facility with a district heating network are relatively simple to implement,” Nielsen says.
The temperature of waste heat is, however, too low for district heating networks and needs to be boosted by a heat pump or electrical boiler. Other equipment such as heat exchangers, connections and some instrumentation, are also required.
Investment in any equipment that integrates the PtX plant with the district heating network for supplying the waste heat is usually borne by the PtX developer, which will also own this equipment.
Meanwhile, the receiving district heating company may need to be able to have control of the heat output, either automatically or manually, via a daily agreement with the PtX developer, as the heat will be one of several sources supplied to the network.
There also needs to be an agreement in place around risk sharing.
PIPE WORK Combining PtX and district heating networks takes advantage of synergies between the technologies
LOCATION, LOCATION, LOCATION
To maximise the mutual benefits, the location of the assets is important. PtX facilities usually need to be located close to supplies of renewable electricity and water. To supply district heating, PtX projects should also be situated near the cities or other urban areas that have these networks in place or with plans to introduce them. This might limit the uptake.
While it will never be possible to integrate all the waste heat from PtX facilities, utilising it where possible will provide an additional opportunity to decarbonise heating and lower costs for consumers in the process.
“There is a case to be made for direction to come from central government that would encourage the siting of PtX plants near urban areas or communities with district heating networks. If a plant is too far away, it would become cost-prohibitive to install the infrastructure to transport the heat from a PtX plant over long distances to the district heating network,” says John Flørning, also from Ramboll.
Modelling potential of electrolysers for providing heat
Mӓlardalen University published a study that models heat from a 100 MW electrolyser, comparing alkaline and PEM technologies. The modelling is based on the Botnia Link H2 Project in Luleå, Sweden, which is in development. A large-scale heat pump and a heat exchanger were included in the modelling to integrate the waste heat on the district heating network, while also providing cooling for the electrolyser stack. The study concluded that heat used from either PEM or alkaline systems is price competitive in comparison with other thermal energy sources. Using hourly data from Luleå Energi, the results showed that 171,770 thermal megawatt-hours (MWhth) can be integrated on the DH network annually with a PEM electrolyser, while 226,220 MWhth can be integrated on the DH annually with an alkaline electrolyser. The levelised cost of heat (LCoH) for the PEM electrolyser is SEK 0.218/kWhth and SEK 0.23/kWhth for the alkaline-connected system. With fourth-generation district heating networks, the study predicted the LCoH can reach SEK 0.018/kWth for the PEM system and SEK 0.017/kWth for the alkaline electrolyser system. |
LOW UPTAKE
In Norway, the potential for waste heat to supply district heating is large as it is rarely used in district heating networks today; waste incineration, biomass and, to a lesser extent, fossil fuels, provide the majority of sources for district heating.
Aker is working with local municipalities and agencies to explore opportunities for using the waste heat from its projects, including district heating. In Rjukan the company is developing a five-megawatt (MW) electrolyser. Aker is part of Circular Rjukan, an initiative that has been established to evaluate the potential to use waste heat and other circular economy opportunities.
“We have, together with Rjukan Business Development (Rjukan Næringsutvikling), been in dialogue with potential companies to look for synergies and business opportunities which may be viable in the future. We can also utilise the heat for district heating of buildings, contingent upon the local community establishing the necessary infrastructure,” says Rynning.
There are no district heating systems at Rjukan, but new residential areas are likely to be planned with district heating systems, he adds.
PtX projects hooking up with district heating networks A number of projects that combine PtX electrolysis and district heating systems are underway in Europe, with Scandinavia leading the way:Denmark
Finland
Germany
Sweden
|
PARTNERSHIPS IN FINLAND
In Finland, energy supplier and district heating network owner Tampereen Energia and PtX developer Ren-Gas are laying the groundwork for a district heating integrated electrolyser in Pirkanmaa, southwest Finland.
The project will be sited next to the Tarastenjärvi waste-from-energy heat and power plant, which is operated by Tammervoima, a joint venture between Tampereen Energia and local waste company Pirkanmaan Jätehuolto.
From 2026, when the planned 60 MW electrolyser becomes operational, the waste heat will be recovered and returned to Tammervoima for the district heating network, which supplies more than 5000 buildings and more than 230,000 residents.
Recovering the waste heat from electrolysis improves profitability, according to Jukka Joronen of Tampereen Energia. Tampereen Energia is owned by the City of Tampere and it has strict environmental targets, including ensuring that its heating supply is fully carbon neutral by 2030.
In other projects, Ren-Gas partners with municipal and regional energy companies which also own district heating networks. Its project in Kerava, located 30 kilometres from Helsinki in southern Finland, is sited with Keravan Energia’s bio-combined heat and power (CHP) plant, which will produce 12,000 tonnes of methane, 6000 tonnes of hydrogen and 150 gigawatt-hours (GWh) of heating from a 20 MW electrolyser.
Ren-Gas wants to build a PtX portfolio in Finland by 2030 that will deliver 20% of the e-fuels needed by the heavy road transportation sector and 8% of the Finnish district heating needs. This will replace 2.5 terawatt-hours of district heating produced by fossil fuel burning, the company predicts. Finland has banned the use of coal for energy from 2029.
Energy utility Helen is aiming for its energy production to be carbon-neutral by 2030. Earlier in 2023, Helen closed down its Hanasaari CHP plant in Helsinki. Helen is instead developing a 4 MW PtX electrolyser pilot in Vuosaari, in the eastern district of Helsinki, and the waste heat—about 13,000 megawatt-hours a year—will be used in the company’s district heating network.
A number of homes in Helsinki are already heated by the Vuosaari bioenergy heating plant, which burns wood chips obtained as a by-product of forestry. But by using heat pumps Helen can use different waste and environmental heat sources. The heat that will be produced by the Vuosaari electrolyser will be roughly 60-70°C degrees so the heat pump will boost the temperature to meet district heating requirements.
“Hydrogen [production] will support the electricity network through sector coupling and potential energy storage. The utilisation of waste heat from hydrogen production is also important, as it can save both energy and costs,” Helen’s Tuukka Hartikka says.
WIDER IMPLICATIONS
In Denmark, which has comparatively high levels of renewables penetration, any excess electricity is absorbed by heating networks installed with heat pumps and electric boilers. In the future, PtX facilities will also be able to absorb excess electricity.
“As heat demand varies throughout the year, with more heat needed in the winter than in the summer, seasonal storage can store some of the heat that is generated by green hydrogen production,” Hartikka says.
Ren-Gas says its PtX portfolio’s approximately 600 MW of electrolyser capacity is highly flexible to changes in electricity consumption, increasing demand flexibility in Finland’s electricity grid.
“For many years to come, buildout of renewable energy is in general the key to decarbonisation of our society. PtX plants will operate fairly constantly but also with a degree of flexibility so that they can capitalise on the lowest electricity prices when there is a lot of renewable generation on the grid,” Ramboll’s Ravn Nielsen says.
TEXT Sara Verbruggen PHOTOS MidJourney/FORESIGHT; Helen Oy
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
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Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
We want to hear your views on the energy transition! That’s why today’s episode includes a poll on a crucial issue. You can find the links to our polls here and here.
The question today is:
The European Union is legally obliged to be climate neutral by 2050. Would it be feasible, from a political and technical standpoint, for the Union to bring that date forward to 2045 or even 2040 within the next 18 months?
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Check out the latest episode of Watt Matters, which digs into how Poland’s recent election result will affect energy and climate thinking, and stay tuned for the next episode of the Policy Dispatch, which will focus on Brazil. Our latest deep-dive looks at how district heating is a natural ally of power-to-x technology.
Audio clip credits:
Pixabay audio sample
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Industrial players must put energy efficiency at the top of their decarbonisation plans
The world’s industries could save more than four gigatonnes of greenhouse gas emissions a year by 2030 by maximising energy efficiency measures.
Four gigatonnes is roughly 11% of the global emissions forecast for the end of this decade and is equivalent to taking around three-fifths of the world’s internal combustion engine vehicles off the road.
Almost half the emissions savings could be achieved by 2025—so in just the next couple of years—and the measures would produce an estimated $437 billion in savings by 2030.
FIRST FUEL
The figures support the International Energy Agency’s (IEA) contention that energy efficiency should be viewed as “the first fuel” to be employed before any other decarbonisation measures.
Energy is a massive running cost for most industries, so it is natural they should seek to minimise wastage. What many industry leaders may not realise is that there is still plenty more they can do.
The Intergovernmental Panel on Climate Change admitted in its 2023 synthesis report that: “Global warming is more likely than not to reach 1.5°C even under the very low GHG [greenhouse gas] emission scenario.”
More recently, consultancy firm DNV’s annual energy transition outlook predicted the carbon budget needed to stay within 1.5°C will be exhausted by 2029, and by the end of the century we will still be 2.2°C above pre-industrial levels.
Given the dire climate impacts we are already seeing at half this level of warming, it is clear we need to increase our decarbonisation ambitions significantly, and now—not in a decade or two’s time.
Yet doubling energy efficiency by 2030 could cut greenhouse gas emissions by almost a third compared to today’s levels, according to the IEA.
NO ALTERNATIVES
In electricity generation, renewables are beating fossil fuels on cost and installation rates, and transport, too, is embracing electrification—but industrial decarbonisation is complex because of the lack of a clear alternative to fossil fuels.
The process of decarbonising industry is also complicated by the fact that industrial infrastructure is costly and lasts decades. It cannot easily be thrown out and replaced by lower-emissions versions.
This might make it seem like industrial leaders can do little to reduce emissions in the short term, but the answer is something industry is already used to but could still do a lot more of—being more energy efficient.
All industry needs to eliminate more than a tenth of the world’s emissions is not a new fuel or some other as-yet-unclear breakthrough, but a simple acknowledgement that energy efficiency deserves board-level backing.
PRACTICAL FRAMEWORK
The Energy Efficiency Movement has collated a playbook with ten recommendations for industrial players to improve their energy efficiency, none of which rely on upcoming technology or ground-breaking policy shifts.
Providing a practical framework for the development of energy efficiency strategies, the guide aims to help industry leaders make meaningful contributions to decarbonisation without significantly impacting operations and profits.
The ten actions are as simple as getting someone to audit your energy consumption, making sure equipment is correctly sized for its intended application or adding monitoring systems to your industrial processes.
Perhaps the most ambitious recommendations are to start using smart building management systems and to move data into the cloud—measures that many industrial players might already be mulling in any case.
The EEM is looking to raise awareness of the benefits of energy efficiency not only through its latest guide but also through wider knowledge-sharing efforts.
Industrial players could play a major role in achieving this breakthrough, something to bear in mind as companies seek to demonstrate leadership in decarbonisation at COP28 in the United Arab Emirates.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Check out the latest episode of Watt Matters, which digs into how Poland’s recent election result will affect energy and climate thinking, and stay tuned for a new article on district heating.
Audio clip credits:
G-ZERO YouTube
White House YouTube
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy.
Email us at thejolt@foresightdk.com
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From FORESIGHT Climate & Energy, Watt Matters is a podcast all about the energy transition and the shift to a decarbonised economy.
For the best possible audio experience, listen to Watt Matters in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Since 2015, Poland has been governed by the Law and Justice Party, which has been sceptical about EU climate policy and been at loggerheads with Brussels over rule of law, leading to the suspension of EU funds, including those earmarked for the green transition.
This could all be about to change following October’s nationalelection where the opposition parties together won more support than the Law and Justice Party. With the groups now expected to form a coalition, this could mean a more pro-EU, climate-friendly government.
To discuss what changes the new Polish government might bring about, founder and president of the Polish think tank Forum Energii, Dr Joanna Maćkowiak-Pandera, joins David Weston and Kira Taylor.
Enjoy the show!
Listen and subscribe to Watt Matters wherever you get podcasts. Follow us on Twitter at @WattMattersPod or email us at show@wattmatterspodcast.com
Illustration: Masha Krasnova-Shabaeva.
Show notes:You can find the Expert Council on Energy Security and Climate’s recommendations for policy actions for the new Polish government here.
What caught our eye this week:
Joanna’s pick: Poland Shows That Autocracy Is Not Inevitable – by Anne Applebaum for The Atlantic
Kira’s pick: European Commission plans new support for renewables in European Wind Power Package
David’s pick: Drinks giant Coca-Cola wants to make its bottle tops from carbon dioxide taken out of the atmosphere
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From FORESIGHT Climate & Energy, Energy Enablers is a podcast in which we speak to those who are making a difference in the race to a decarbonised economy.
For the best possible audio experience, listen to Energy Enablers in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you want to know if your company/organisation is subscribed to FORESIGHT or would like a reminder of your login details, email info@foresightdk.com.
In this week’s Energy Enablers, Panu Virolainen, chief technology officer at ABB Motion, lets us into the world of research and development and its continued importance to the energy transition
There is a train of thought that suggests if we have that technology to achieve the energy transition, why are hundreds of millions of dollars still being spent on research and development (R&D)?
In this week’s episode, Panu Virolainen from ABB Motion, tells David why R&D remains an important element of the decarbonisation story.
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our social media accounts:
Panu Virolainen
David Weston
EnergyEnablers
FORESIGHT Climate & Energy
Listen and subscribe to Energy Enablers wherever you get podcasts. Follow us on Twitter at @EnergyEnablers or email us at show@energyenablers.com
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Check out the latest episode of Watt Matters, which digs into how Poland’s recent election result will affect energy and climate thinking, and stay tuned for a new article on district heating.
Audio clip credits:
C-SPAN YouTube
European Commission Audiovisual Service
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy!
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Audio clip credits:
United Nations YouTube
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy!
Elevate your listening experience, try our app – iOS / Android
The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
The climate crisis is not just governments’ problem to solve
An existential climate crisis threatens to rewrite the rules of human survival, and it is now no longer a question of whether the private sector should play a role in climate action—it is a matter of how much and how swiftly.
As we stride towards the COP28 climate talks in the United Arab Emirates (UAE) in December 2023, we have a golden opportunity to reframe the narrative of climate change from one of despair to one of hope and action. Now, more than ever, is the time for corporations to step forward, to wield their power and to shape our world for the better.
Businesses, often vilified for the climate crisis, are fast becoming its unsung heroes. From technology titans developing artificial intelligence (AI) to optimise energy use to food companies championing regenerative business models, the private sector is showing us that the path to sustainability need not be paved with sacrifice but can instead be a journey of innovation and prosperity.
FINANCIAL VIABILITY
The idea that “green” and “growth” must be mutually exclusive is rapidly becoming an antiquated notion—in recognising the environmental impact of their operations, corporations are embracing the opportunities that a green transition offers. To many, these practices are not just the morally right choice but, now, financially viable ones.
By catalysing action, global events like COP empower the private sector to actively reshape our planet. These events have highlighted the remarkable progress made by organisations committed to combatting climate change, proving that meaningful change is not just an aspiration but a tangible reality.
I was recently on the jury panel of the Zayed Sustainability Prize (ZSP)—an award which supports small to worldwide medium-sized enterprises (SMEs), nonprofit organisations (NPOs) and high schools with impactful and innovative sustainable projects—and saw first-hand how these initiatives can bring about real change through the private sector regardless of the scale.
As we approach COP28 in the UAE, it is up to us to harness the full potential of the private sector, turning the wheels of industry towards the goals set out in the Paris Agreement. We need to cultivate an environment where businesses can thrive while ensuring the planet continues to flourish.
To do this, we must advocate for policies that reward sustainable practices, develop frameworks to measure and disclose climate risk and foster collaboration between governments, NGOs and businesses. Only then can we unlock the private sector’s immense potential to drive meaningful and lasting change.
The key point is that the climate crisis is not just a problem for governments to solve. It is a global challenge that requires the active participation of all sectors of society, including the private sector.
We must harness this momentum to unite, mobilise the strength and creativity of businesses globally, and propel forward our shared goal of a sustainable future. We must unleash the full force of industry to build a world that is not only resilient and sustainable but also prosperous, inclusive and fair for all.
As we stand at this critical juncture, our actions today will shape the judgment of history. Our legacy must be marked by meaningful transformation and unwavering resilience.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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Today’s Policy Dispatch episode takes us to the rolling green hillsides of Wales. Home to abundant natural beauty but also plentiful renewable energy sources, the Celtic nation has ambitious clean power targets to hit that could make it a leader in Europe, if not the world. Climate is now an important issue in a country that was defined by fossil fuels for much of its recent history and in 2019 the Welsh Parliament actually became the first in the world to formally declare a climate emergency.
Sam was fortunate enough to chat with Welsh climate minister Julie James about the country’s big decarbonisation plans, as part of a discussion that also delved into the importance of community-led energy projects.
Diolch, enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Julie James
Sam Morgan
@Policy Dispatch
Kira Taylor
FORESIGHT Climate & Energy
Listen and subscribe to Policy Dispatch wherever you get podcasts. Follow us on Twitter at @Policy Dispatch or email us at show@policydispatch.com
Show notes:
FORESIGHT Policy Section
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Audio clip credits:
New Zealand parliament YouTube
10 Downing Street YouTube
All Blacks YouTube
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy!
Elevate your listening experience, try our app – iOS / Android
The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
The technology is available now, so speed is of the essence
Europe’s recent severe heat wave saw temperatures soar to near-record highs in some regions. Countries like Greece, Italy, and Spain were taking measures to safeguard their residents and tourists from the scorching conditions. The hottest areas are experiencing temperatures as high as 48℃.
While it is challenging to attribute individual events to climate change, scientists emphasise that heat waves in Europe are becoming more frequent and intense at a faster rate compared to almost anywhere else on the planet.
Tedros Adhanom Ghebreyesus, the director-general of the World Health Organisation, called for urgent action to address the climate crisis. The latest Intergovernmental Panel on Climate Change report stresses that “there are multiple, feasible, and effective options to mitigate the changes, available now”.
CHANGE IS HAPPENING
A closer look reveals ongoing developments that hold promise, particularly in India and China—two major emitters.
India, for instance, has some catching up to do in terms of decarbonisation. However, the country is tackling this issue with foresight and a clear investment policy. Their goal is to achieve climate neutrality by 2070, which requires a substantial increase in renewable energy capacity from the current 150 gigawatts to an astounding 7425 gigawatts. To put this into perspective, the global generation capacity from renewable sources is not even half that amount.
China, on the other hand, is making impressive strides towards its goal of becoming climate-neutral by 2060. Despite the construction of new coal-fired power plants, China’s green transformation is progressing rapidly in parallel. This year alone, the nation is installing more renewable energy capacity than what is currently available in the entirety of Germany.
India and China are just two examples, as the rest of the world is also engaged in large-scale decarbonisation efforts to transform their economies and energy systems. However, we must go above and beyond to ensure the success of these endeavours.
CRITICAL LEVERS
There are three critical levers that demand our attention.
The first involves fuel switching—we must decarbonise our power supply by significantly increasing our reliance on solar and wind energy. Projections indicate that the share of renewable energy sources needs to increase by a factor of 30 by 2050.
Secondly, we need to electrify our energy consumption across various domains. Currently, the global electrification rate stands at around 22%, but it needs to exceed 50% by 2050.
And finally, we must strive to reduce our energy consumption by addressing demand and adopting more efficient energy usage practices. This approach could lead to nearly a 50% reduction in energy consumption.
DIGITAL ENABLER
However, when I meet customers, they also emphasise the need for an additional lever: speed. Speed plays a crucial role in the process of digital transformation. In today’s rapidly evolving business landscape, organisations need to adapt quickly to stay competitive and relevant.
Digital transformation involves leveraging technology to fundamentally change how businesses operate, deliver value to customers, and innovate their products and services. Customers ask us how they can achieve the digital transformation easier, faster and at scale. The answer is: with open, digital platforms.
Picture a building that is so smart that it can detect when there are no occupants present, either through physical access control or simple sensors, and adjust heating or cooling accordingly. No more wasting energy on unoccupied spaces. Currently, data related to buildings, including comfort, fire safety or security management, often resides in separate domains, which we refer to as data silos.
But what if we could merge all this valuable information into a single, comprehensive view? By breaking down these data barriers and creating a unified platform, we unlock entirely new possibilities for optimising building performance and resource management.
As we fight climate change, it is imperative to embrace the power of digital platforms. By combining the three critical levers—fuel switch, electrification and energy efficiency—with the acceleration and convenience provided by digital solutions, we can forge a sustainable path towards a greener future.
Technology is at our fingertips—we just need to act now.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Audio clip credits:
European Council video archive
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy!
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Image MidJourney / Prompts FORESIGHT.
Audio clip credits:
White House YouTube
European Commission YouTube
ENTSO-E YouTube
We want The Jolt to be as listener-driven as possible! Get in touch with us about what you like, what you don’t like and what you’d like to see in future episodes. All feedback is appreciated so don’t be shy!
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
HighSpeed Train, MidJourney.
Audio clip credits:
Rishi Sunak X account | Climate Change Committee YouTube account
This is week one of The Jolt, and we are keen to hear your feedback. Get in touch with us at the following links to let us know what you liked, what you weren’t keen on and what you’d like to see in upcoming editions of the show.
Elevate your listening experience, try our app – iOS / Android
The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Thinking outside the box will be beneficial for many of the world’s major metropolises
To have a two-in-three chance of limiting global warming to 1.5℃, we must release no more than 400 gigatons of CO2 into the atmosphere between 2020 and 2050. As cities generate over 70% of total greenhouse gas emissions, they play a vital role in leading the charge to net zero. With around a third of urban emissions coming from transport, driving the adoption of electric vehicles (EVs) is a sensible strategy.
In recent years, governments at all levels have been investing in, and incentivising, this shift to EVs—and it is working. Global EV sales leapt 55% in 2022, making up 13% of total vehicle sales. If consumer demand continues to grow, and prices continue to fall, battery EVs and plug-in hybrids could make up 55% of global vehicle sales by 2030.
The impact of the widespread adoption of EVs on cities would be powerful. By generating 17%–30% lower emissions than petrol and diesel cars, EVs would improve both air quality and quality of life for citizens. And by creating new jobs—an estimated 334,000 by 2030 in the US and Canada alone—they could also help reduce economic inequity.
To realise these benefits, though, cities will need to overcome some substantial challenges.
INCENTIVISE UPTAKE
Many cities are expanding and electrifying their public transit systems. In China, Shenzhen already has a fully electric fleet of buses and taxis, for example. And Medellin in Columbia is one of 26 cities to commit to procuring only zero-emission buses by 2025.
Cities are also using incentives to encourage citizens to adopt EVs. Popular approaches include scrappage schemes (in which motorists are given cash toward a new, greener vehicle when trading in an old one), free parking and exemptions from road pricing charges.
Incentives can also be targeted at those who can least afford to make the shift. In San Francisco, subsidies are available to help low-income residents buy old and new EVs. The results of such initiatives can be powerful: in India, where two- and three-wheeled vehicles dominate city streets, e-rickshaws and e-mopeds now cost as little as $1000 and are cheap to run.
Meanwhile, Singapore is combining the carrot with the stick to achieve its goal of 100% cleaner vehicles by 2040. Cleaner vehicles are eligible for rebates, and by 2030, citizens will no longer be able to register new cars and taxis with new pure internal combustion engines.
GREENER SUPPLIES
There are two aspects to supply in the context of EVs: ensuring an adequate supply of charging points and switching to cleaner ways of producing the electricity they provide.
On the infrastructure side, cities bump up against an age-old problem: only a fraction of the tax revenues collected within the city stays in the city. So they cannot access funding on the scale needed to deliver large-scale projects. To get around the issue, cities are engaging with the private sector to raise investment and deliver innovative solutions.
In New York City, where on-street parking presents a logistical headache for EV charging, the city is working with an energy company and charging network to pilot a curbside scheme. Cities can also issue green city bonds, use public seed capital to attract private investment and send clear signals to the market by setting deployment targets.
When it comes to producing clean energy, rooftops—which take up 15-35% of total land area in cities—are an obvious opportunity. But other, more creative solutions are emerging. In its bid to host Expo 2030, Rome proposes building the world’s largest urban solar farm made up of hundreds of “energy trees.” By opening and closing their panels, the trees will generate energy and provide shade helping to keep the city cool.
Cities that want to nurture this kind of green innovation can use tax credits to attract more private capital into startups and support more R&D.
CARBON STORAGE
Even with all the necessary funding, partnerships and policies in place, the shift to EVs will not happen overnight. Nor will it remove all urban transport emissions.
Carbon removal solutions can complement emissions reduction strategies by removing unavoidable CO2 emissions from the air and storing them, often underground. In doing so, they can help cities to achieve their net-zero goals or even become carbon-negative.
As ever, though, the main barrier to implementing these large-scale projects is the high price tag. Along with raising private capital, cities can take advantage of the early-stage subsidies and market integration policies of their national and regional governments.
California’s Low Carbon Fuel Standard credits alternative fuel providers for removing carbon from the value chain. Cities can support these initiatives by creating a regulatory and tax climate for innovation and attracting inward investment.
BUDGET REALLOCATION
With 70% of the global population expected to live in cities by 2050, it is crucial that urban leaders act to reduce greenhouse gas emissions—particularly from transport.
With the right targets, policies and regulations, cities can become hubs for green technology while also reducing transport emissions on the demand and supply sides. Public-private partnerships, innovative financing solutions and appropriate regulation will all play an important role.
But if national governments are serious about reaching net zero, they will need big ideas and not just big budgets to deliver the biggest reductions in emissions.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
Elevate your listening experience, try our app – iOS / Android
Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to today’s episode of The Jolt by FORESIGHT Climate & Energy. In a world underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off with a look at the major global climate and energy news stories.
Here are some of the main climate and energy stories making the news around the world:
Hoekstra hooks EU climate role
Image Foresight Media / Midjourney
In today’s deep dive, we are looking at the EU’s search for a new climate boss:
This is week one of The Jolt, and we are keen to hear your feedback. Get in touch with us at the following links to let us know what you liked, what you weren’t keen on and what you’d like to see in upcoming editions of the show.
Elevate your listening experience, try our app – iOS / Android
From FORESIGHT Climate & Energy, Watt Matters is a podcast all about the energy transition and the shift to a decarbonised economy.
For the best possible audio experience, listen to Watt Matters in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Every year, the International Renewable Energy Agency (IRENA) puts together a report, looking at the cost of renewable power production. The latest iteration shows that, despite inflation, the cost has dropped.
According to the report, the global weighted average levelised cost of electricity from new utility-scale solar, onshore wind, bioenergy and geothermal production fell. Thanks to the rise in fossil fuel prices, this makes the cost argument for renewables even more compelling, according to IRENA.
However, the picture is complicated, with China a key driver for the drop in solar photovoltaics and onshore wind.
To explain more, Michael Taylor, senior analyst for renewable cost status and outlook at IRENA, joins David, Jan and Michaela.
Enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Michael Taylor
Michaela Holl
Jan Rosenow
David Weston
Kira Taylor
@WattMattersPod
FORESIGHT Climate & Energy
Listen and subscribe to Watt Matters wherever you get podcasts. Follow us on Twitter at @WattMattersPod or email us at show@wattmatterspodcast.com
Illustration: Masha Krasnova-Shabaeva.
Show notes:
You can find the IRENA Renewable Power Generation Costs in 2022 report here.
What caught our eye this week:
Jan’s pick: Hydrogen should only play a limited & complimentary role to decarbonise heating – study
Michael’s pick: UK Office for Budget Responsibility July report on financial risks and sustainability
Dave’s pick: Rishi Sunak announces U-turn on key green targets
Michaela’s pick: Having land-use emissions could cut land-use emissions by 31% – Carbon Pulse
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Introducing The Jolt, a new series from FORESIGHT Climate & Energy, which will keep you updated on all the essential energy transition stories
Listen to The Jolt in the FORESIGHT app. This requires a membership to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Welcome to the first-ever episode of The Jolt by FORESIGHT Climate & Energy. In a world that is underpinned by climate and energy stories, it is sometimes hard to cut through the cacophony of noise and get to the news you need to hear.
This is where The Jolt comes in. Tune in on Mondays, Wednesdays and Fridays for bite-sized updates, expert analysis and a global view.
We kick off this first episode with a look at the major global climate and energy news stories.
Some of the main climate and energy stories making the news around the world:
Image Ant Rozetsky, Unsplash.
In today’s deep dive, we are looking at the carbon border adjustment mechanism or CBAM:
This is week one of The Jolt, and we are keen to hear your feedback. Get in touch with us at the following links to let us know what you liked, what you weren’t keen on and what you’d like to see in upcoming editions of the show.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
It is not magic, energy efficiency solutions are readily available right now
The UNFCCC Global Stocktake report released in September 2023 emphasised the urgency of honouring the Paris Agreement target of limiting global warming to 1.5℃. We are simply not on track yet.
The good news is that it is possible to reach our climate goals, and we do not need magic to achieve them. We already have the technology and the solutions, but action is needed.
We need an increased focus on energy efficiency policy implementation to strengthen energy security and keep the goal of limiting global warming to 1.5℃ within reach. Energy efficiency is, and always should be, the “first fuel” for clean energy transitions.
We have the required technology available and it is by far the quickest and most cost-effective carbon mitigation option.
DOUBLE UP
As Fatih Birol, at the International Energy Agency (IEA), has previously emphasised, doubling the rate of energy efficiency improvements and tripling renewable power capacity globally by 2030 is essential.
Most political and business leaders understand that building out new energy supply alone is not enough to secure true energy independence or to reach our global climate goals.
The IEA’s own findings demonstrate that these objectives will remain impossible without taking the necessary measures to reduce our demand through energy efficiency as well.
The IEA’s conclusions show that doubling efficiency improvement to above 4% per annum this decade could lower global energy demand by 190 exajoules (EJ), and CO2 from burning fossil fuels by almost 11 gigatonnes (Gt) by 2030, almost one-third of current global CO2 emissions. While global energy demand grew by 1% in 2022, this could have been almost three times higher without the current progress we have made on energy efficiency.
The next step that needs to be taken is to update the narrative around energy efficiency—and our policies—to reflect the role of energy efficiency in a future energy system based on renewables. Energy efficiency is so much more than reducing demand and it will become even more important as the clean energy transition accelerates. We call it energy efficiency 2.0.
EFFICIENT ELECTRIFICATION
What is energy efficiency in this updated narrative? It is using digital solutions such as the Internet of Things (IoT) and artificial intelligence (AI) to create the flexibility that our energy systems will need as the share of renewables grows. It is using electrification and sector integration to use our energy smarter, matching supply and demand.
A somewhat overlooked point is that we are not only electrifying because it allows us to use green power but also because electrification is energy efficiency in its purest form. An electric engine is considerably more energy efficient than an internal combustion engine, resulting in massive savings.
We also know that excess heat—from supermarkets, data centres, industry and wastewater treatment plants—in the EU corresponds to the total energy demand for hot water in residential and service sector buildings. Yet, it is mostly unutilised. In the Netherlands alone there is more excess heat potential than the demand for water and space heating.
One study shows that 11-12% of excess heat can theoretically be recovered. But if we do not act, we are letting the lowest-hanging fruit—and one of the greatest opportunities to increase energy security, affordability, and sustainability—slip straight through our fingers.
Excess heat not only has astonishing potential as an energy source at scale, but on a societal level, it can replace significant amounts of electricity or gas that are otherwise needed to produce heat. In this way, excess heat can help ease the transition towards a cleaner and more stabilised energy system.
SUSTAINABLE COOLING
Meanwhile, the growing demand for cooling in our homes, offices and businesses could drive one of the most substantial increases in greenhouse gas emissions we have ever seen. Energy efficiency also has a critical role to play in enabling a future with sustainable cooling.
District cooling is one of the most promising and efficient ways to cool and decarbonise buildings. Central cooling plants produce chilled water and supply it to buildings through an insulated underground piping network. District cooling is an extremely efficient way of cooling our cities.
This is not new technology and it is not magic. These solutions are readily available right now. In fact, Singapore has the world’s largest district cooling system and has reduced its energy bill by 40%, while also reducing the country’s emissions by the equivalent of 10,000 cars per year.
Put simply, the greenest energy is the energy we do not use. We have the technologies to reach our goals, now we just need the leadership to make it happen.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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New Zealand Aotearoa is infamous for its breath-taking scenery, remote location in the Pacific Ocean, all-conquering rugby team and being the backdrop for the Lord of the Rings. ‘The Land of the Long White Cloud’ is, like every other country on Earth, presented with some difficult and complex energy transition hurdles that will have to be overcome.
Governments have attempted to address these climate and energy issues by launching an emissions trading system, establishing carbon budgets and aiming for a completely clean power grid. This is all with a 2050 net-zero target firmly in mind.
Are the policies in place enough to get New Zealand on track? Or are they insufficient to hit that mid-century benchmark? Where must the heavy lifting be done and why is climate neutrality such a difficult prospect for what is comparatively a small country? Internationally-recognised climate expert Dr Christina Hood joins Sam for this Policy Dispatch episode to explain the true scale of the job facing New Zealand.
Enjoy!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Christina Hood
Sam Morgan
@Policy Dispatch
Kira Taylor
FORESIGHT Climate & Energy
Listen and subscribe to Policy Dispatch wherever you get podcasts. Follow us on Twitter at @Policy Dispatch or email us at show@policydispatch.com
Show notes:
FORESIGHT Policy Section
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Keeping private charging infrastructure off-limits to the EV-owning public means leaving cash on the table
Buses, coaches, company cars, delivery vans, taxis: across Europe, vehicle fleets are going electric to cut operating costs and contribute to a more sustainable future.
At the same time, the owners of these fleets—from private companies to public administrations—are investing in charging infrastructure.
The upfront costs of these charging systems are high and fleet owners may wonder if there are other ways to offset this investment. Indeed, two significant business opportunities beckon.
OPEN ACCESS
The first, and most obvious source of income, is to open the charging infrastructure up to the public. This may sound odd to fleet owners wishing to guard their vehicles and associated assets—and in some cases, it might be impractical to let third parties use your charging infrastructure.
For instance, if it is in the middle of a busy bus depot or if local regulations require charge point operators to register as energy suppliers.
But most of the time, giving others access to your charge points is a straightforward affair.
A charge point platform provider can show drivers when and where they can use this infrastructure. The owner gets to decide how many charge points are open to the public, and at what times, so enough capacity to service the fleet is retained. The owners can also set the charging price for public use.
DEMAND SIDE SERVICES
Alongside this obvious source of income, there is also a potential charging revenue stream that most fleet owners are not even aware exists. Unlike petrol and gas fuelling, EV chargers are essentially an extension to the grid, which means they can provide valuable grid services.
An example is demand response programmes where a grid operator compensates electricity users for reducing their consumption during high-demand periods.
EV charging operations are particularly suitable for demand response because they can quickly downscale, delay, or completely turn off the electricity capacity in their networks.
For grid operators and utilities, demand response provides a cost-efficient method to handle peak power demand and alleviate grid strain without resorting to expensive infrastructure upgrades. For charge point operators, this presents a chance to earn additional revenue.
Both revenue streams mentioned here can be captured with a minimum of fuss with the support of a smart charging platform.
PROGRESS FOR PROFITS AND PLANET
As for the expected returns, these will naturally depend on a range of factors, such as the type, number and location of charge points offered up, the time they are available, and the pricing of the service. However, in the case of one taxi firm in Copenhagen, its charge point utilisation more than doubled after the infrastructure was opened to the public.
The revenues have been so good that the taxi firm now sees EV charging as a commercial opportunity rather than a cost. This is likely to be the case for most fleet owners who have invested in fast chargers, which are in demand across most EV markets and currently command a significant premium from the driving public.
Beyond the attractiveness of the business case, here is also the societal good that opening charging up to the public can achieve. At a time when global temperatures are already around 1.1°C above pre-industrial levels, the energy transition needs all the help it can get.
Vehicle electrification is a vital part of that transition, yet today the availability of charging points remains a barrier to EV adoption in many places. This could be largely overcome by freeing up private charge points when not in use.
According to the analyst firm Berg Insight, there were 4.5 million dedicated charge points across Europe in 2021. This is almost ten times the 479,000 public charge points that were estimated to be in operation in the European Union last year.
Freeing up just a fraction of those private points for public charging could go a long way toward simplifying life for millions of EV owners while making money for infrastructure owners in the process. •
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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From FORESIGHT Climate & Energy, Watt Matters is a podcast all about the energy transition and the shift to a decarbonised economy.
For the best possible audio experience, listen to Watt Matters in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you would like to know if your company/organisation is subscribed to FORESIGHT Climate & Energy, or if you would like a reminder of your login details, send an email to info@foresightdk.com.
Sufficient and effective physical infrastructure—either electricity cables or gas pipelines—is vital for a successful energy transition. But the planning and building of any new such infrastructure has not received the attention it deserves with most debates focussing on the scaling up of renewable energies or on market rules for power, gas and hydrogen.
With the goal of practically eliminating gas from the energy mix and depending on electrons for our power, scaling back the pipelines and extending the cables over the next two decades is a huge undertaking.
In this special live podcast—recorded at an event organised by Agora Energiewende, the Regulatory Assistance Project, Energy Cities and FORESIGHT Climate and Energy—we discussed how moving away from fossil fuels is more than just a fuel change.
Our guests on the podcast this week are Dennis Hesseling, head of gas, coal and power at the International Energy Agency; Katharina Umpfenbach, head of infrastructure and energy systems at the German energy agency, Dena; and Michael Liebriech, CEO of Liebreich Associates, managing partner of EcoPragma Capital and host of rival energy podcast, “Cleaning Up – Leadership in an Age of Climate Change”.
Enjoy the show!
Watch the live footage here.
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Dennis Hesseling
Katharina Umpfenbach
Michael Libreich
David Weston
Kira Taylor
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FORESIGHT Climate & Energy
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Illustration: Masha Krasnova-Shabaeva.
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From FORESIGHT Climate & Energy, Energy Enablers is a podcast in which we speak to those who are making a difference in the race to a decarbonised economy.
For the best possible audio experience, listen to Energy Enablers in the FORESIGHT app. This requires a subscription to FORESIGHT Climate & Energy. If you want to know if your company/organisation is subscribed to FORESIGHT or would like a reminder of your login details, email info@foresightdk.com.
Digitisation is entering every facet of the energy transition, none more so than for grids and energy infrastructure. With the increasing complexity of grid operation, data is a vital tool to ensure the security of supply.
Sabine Erlinghagen is CEO of the grid software division at Siemens. In this week’s episode, David and Sabine examine how grids operators are adapting to the new data-driven world and what is means for the energy transition.
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If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our social media accounts:
Sabine Erlinghagen
David Weston
EnergyEnablers
FORESIGHT Climate & Energy
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In Europe’s southeast, the Balkan peninsula has a transport dilemma. Relatively short distances between cities take hours to navigate and what should be a well-connected region is anything but. Motorway expansion is the go-to government option while rail and waterways often only get the scraps. Given transport’s substantial contribution to our emissions surplus, this makes for an interesting climate policy case study. If the Balkans gets its transport act together, who knows what other green objectives the region could achieve?
As six countries vie for EU membership, one international body, the Transport Community, aims to help integrate those nations into the pan-European bloc to both accelerate their membership applications and make the transition a smoother ride. That means helping governments adopt EU standards and rules so that they can tap into funding, as well as making recommendations on what kind of policies should be prioritised.
This week Sam is joined by the Transport Community’s director, Matej Zakonjšek, to discuss the difficulties the region is facing, what kind of transport options the Balkans should focus on and why these EU-hopefuls could actually outstrip their northern neighbours if the right decisions are made soon.
Enjoy the show!
If you have any thoughts or questions about anything that has been discussed in this week’s episode, you can reach us at our Twitter accounts:
Matej Zakonjšek
Sam Morgan
@Policy Dispatch
Kira Taylor
FORESIGHT Climate & Energy
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Show notes:
FORESIGHT Policy Section
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
The biggest impact will come from reducing the energy demand of buildings and improving their thermal performance
The way we build is evolving dramatically, with new materials, systems and technologies making it possible to create architecture that is more energy efficient, resilient and sensitive to the needs of its inhabitants than ever before.
To meet the Intergovernmental Panel on Climate Change pathway to limit the global rise in temperature to 1.5°C, it is essential for all sectors to decarbonise rapidly over the next ten years.
Buildings are currently responsible for 39% of global energy-related carbon emissions: 28% from operational emissions, from energy needed to heat, cool and power them, and the remaining 11% from materials and construction.
REDUCING ENERGY CONSUMPTION
Improvements in building envelopes using the external fabric first approach, in combination with rapid and wider deployment of technologies such as heat pumps, district heating systems and other renewable heat sources, are the only coherent route to meeting our targets.
Lowering energy demands with high-performance building envelopes and services reduces the investment required in renewable generation capacity and minimises the extent of predicted climate change.
High-performance building envelopes do not just reduce overall carbon emissions, energy costs and the incidences of fuel poverty, they can also provide improved comfort, health and well-being; better indoor air quality (when combined with improved ventilation and lighting provisions) and can improve the productivity of the occupants.
To reduce the energy consumption in the EU building sector, the existing building stock will need to be retrofitted. Today, 75% of existing buildings are energy inefficient and were constructed before legislation on building performance was in place.
RENOVATION RATES
Between 85% and 95% of today’s buildings will still be in use in 2050. With only 1% (on average) of buildings undergoing energy renovations each year, it would take over 100 years to deliver on the EU’s 2050 climate neutrality objective.
While many G20 countries have achieved some reduction in building-related emissions, they are all failing to do so at the speed and scale required to achieve the 2050 net-zero goals agreed at COP21 under the Paris Agreement.
Among European G20 nations, Germany leads the way in its retrofitting performance, followed by France. Nevertheless, even these higher-performing countries are not making sufficient progress to reduce emissions in line with global net-zero targets. Among other global G7 members, Canada, USA and Japan are slowest.
Therefore, achieving a much deeper and increased renovation rate is crucial for achieving the EU’s decarbonisation objective. The International Energy Agency says 20% of existing buildings should have an energy retrofit by 2030 to align with EU targets.
What is not often talked about is that energy-efficient renovations bring many other benefits to occupants, owners, the economy and society at large. The expected benefits are broad for both indoor comfort and for the environment, as well as economic by boosting the construction sector and, in doing so, supporting SMEs and local jobs.
CLEAR VISION
Long-term and consistent policies are critical in driving momentum and setting the path to meeting the Paris goals. Faster and more ambitious action is needed to drive the necessary change, with better sign-posting of policies and regulations to help industry deliver solutions.
The recent reshaping of the EU Energy Efficiency Directive is a positive stepping stone to achieving an accelerated transition. EU countries will be required to achieve an average annual energy savings rate of 1.49% from 2024 to 2030, up from the current requirement of 0.8%, driving energy savings in critical sectors like construction.
As an industry, we need to increase the rates of renovation of existing buildings. This means improving the performance of existing buildings to something close to that of a new building and ensuring that properties are truly future-proofed and resilient to a changing climate.
In combination with this, setting ambitious minimum energy performance standards for both new builds and renovations, to ensure that today’s construction does not become tomorrow’s retrofit is such an essential element to solve.
As a follow-on, improving the quality of Energy Performance Certificates is necessary, as they are needed to underpin the minimum energy performance standards and are also often used as a control mechanism for financing programmes.
Where building prowess was once measured in tonnes of concrete and steel, today’s stand-out buildings sing of how little of its construction and operation weigh on the environment. Building better and providing more efficient products is the single most important action we in the built environment industry can take against our present environmental emergency.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Twelve-month solutions to 25-year problems will simply not cut it anymore
When you think of insurance, you think of 12-month annually renewed contracts; the two go hand-in-hand. This used to be pragmatic for clients and carriers, enforcing competition in the market and helping insurers effectively manage their regulatory capital obligations.
However, the world is changing. The world’s energy transition—widely described as the greatest reallocation of capital in human history—needs a new approach from insurance.
Traditionally an exercise in procurement, insurance needs to become a collaborative, long-term solution, to effectively manage emerging risks. Something that better reflects the nature of green and low-carbon energy projects and the associated investment hurdles.
FAR HORIZONS
In the UK offshore renewables space, nationally regulated Offshore Electricity Transmission (OFTO) licences are issued over a 25-year term. In contrast, the assets are largely insured one year at a time.
Insurance is one of the biggest costs borne by projects, and depending on insurance market cycles, it can have marked changes in price. This makes financial planning and prudent allocation of capital incredibly difficult.
In many cases, clean energy technologies will be new and largely untested, and developers will require committed capital for many years. Returns will not be realised overnight and quite possibly not even within the current board’s tenure, with the average CEO now serving just 48 months.
Many organisations are comparatively loyal to their insurance partners with relationships that span many years—albeit on a seemingly insecure, one-year rolling contract.
Loans, bonds and other financial products all have long-term tenors, so why not insurance?
PLAN FURTHER AHEAD
From the insurer’s perspective, one-year contracts are tempting. This is especially the case in a changing world where the losses of yesterday rarely equate to the losses of tomorrow. The annual policy standard provides huge flexibility for insurers, allowing them to simply pull out of areas of unattractive exposure with, in effect, 12 months’ notice.
In the past, this was also an opportunity for clients. But is this really adequate today in an increasingly volatile world where business is finding it increasingly difficult to predict their long-term exposures?
With uncertainty in consumer, business, government and global markets, buyers should be able to lock in rates to avoid dramatic swings in pricing or, more importantly, being left without any insurance at all.
Such deals will cost more in the short term, akin to fixing a mortgage rate. If you lock in a rate for ten years, it costs more than fixing for two. But, your repayment costs become more predictable. It is time for insurance companies to discuss with their clients, the value of long-term guaranteed insurance capacity.
PREDICTABLE PAYMENTS
Everyone involved should welcome any solution that brings predictability to the costs and profitability of financing and developing sustainable energy projects and it is one way insurance can stay relevant in a rapidly evolving environment.
Aligning insurance solutions to how the capital markets work is an essential next step for the insurance industry. If capital is loaned over 25 years, the risk management planning must work within the same timeframe.
I believe that the insurance market has a responsibility to offer long-term solutions, to be the advocate of long-term planning and to help organisations understand what their risk profile looks like over the next decades.
Many organisations are not putting enough thought into what their assets will be worth in 20 years’ time or how they might be affected by climate change, where models that predict long-term exposures are becoming increasingly available. Insurance has a critical role to play in advising the board on how to de-risk and prepare for their future. A future beyond one year. •
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Companies looking to capitalise on the growing market for green hydrogen will need a sound knowledge of electrolyser technologies
We are not far off mentioning “green hydrogen” without explaining how it is made and why it differs from the other “colours” on the hydrogen spectrum. With interest in hydrogen soaring over the last couple of years, even those with a passing interest may know that “green” means it is made from water via electrolysis powered by renewable electricity.
This is good news, given the amount of disinformation, uncertainty and doubt still present in many topics relating to the energy transition. Drill down into green hydrogen, though, and there is still plenty of room for misinterpretation.
Early project developers are wrestling with a lack of knowledge in areas that range from where to find the right sort of water to what to do with hydrogen once you have produced it.
One area of green hydrogen lore where knowledge is growing, but there is still room for improvement, is in electrolyser know-how. Anyone who knows about green hydrogen knows you need an electrolyser to make the gas, but after that, things quickly get complicated.
The problem is that electrolysers are not a single technology but a family of technologies, just like batteries or solar panels, with significant differences depending on the electrolyte used.
Like batteries or solar panels, different electrolysers have different capabilities and different levels of suitability for a given application. For the uninitiated, here is a brief rundown of the leading technology options and what they can do.
ATMOSPHERIC ALKALINE ELECTROLYSIS
Alkaline water electrolysis has been around for many decades and uses a hot (but under 100°C) liquid potassium hydroxide electrolyte to deliver hydrogen at atmospheric pressure.
It is an established technology, used mostly for industrial applications. Because of their widespread use in industry, alkaline electrolysers are reliable and relatively cheap. Importantly, from a scalability and sustainability perspective, they do not rely on rare metals such as iridium and platinum.
However, they have a large footprint and require a stable electricity supply, making them poorly suited for applications powered by variable renewable generation.
PRESSURISED ALKALINE ELECTROLYSIS
Pressurised water alkaline electrolysis takes advantage of the materials, reactions, and long history of alkaline electrolysis, combined with higher temperatures and pressures.
This is achieved by a particular vessel design that increases the pressure of the reaction and at the hydrogen outlet, allowing for a more compact footprint than alkaline electrolysers and a dynamic response suitable for applications related to renewable and intermittent power generation.
Pressurised alkaline water electrolysis does not rely on rare metals such as iridium and platinum.
PROTON EXCHANGE MEMBRANE ELECTROLYSIS
The Proton Exchange Membrane (PEM) electrolysis occurs in a cell equipped with a solid polymer electrolyte. Large-scale PEM systems have only been developed in recent years, and little is known about their long-term performance.
The PEM water electrolysis technology can operate at the same temperature, efficiency, and high pressure as pressurised alkaline water electrolysis, allowing for a more compact footprint.
PEM electrolysers require high water purity and extensive use of rare metals, such as platinum and iridium, which could be a bottleneck in mass-scale adoption.
SOLID OXIDE ELECTROLYSIS
The first commercially available solid oxide electrolysers are only now being tested. The technology, which, as its name indicates, has a solid oxide electrolyte, offers very high efficiency thanks to operating temperatures of between 500°C and 900°C.
This heat could be captured for other applications, such as district heating, potentially improving the business case for solid oxide electrolysis.
While solid oxide electrolysis cells have high efficiency, the high operating temperature of the technology leads to rapid degradation of its component materials.
ANION EXCHANGE MEMBRANE
Anion exchange membrane electrolysis has been developed even more recently than solid oxide and is not yet commercially available, with no large-scale systems in operation.
Compared to more mature technologies, it promises to have lower costs, since it does not require rare metals and could potentially be more durable– lower material requirements – due to solid electrolyte/less corrosive electrolyte. The use of a solid electrolyte simplifies liquid separation.
However, anion exchange membranes still need to improve in stability and ionic conductivity before they are a real alternative to other alkaline water electrolysis processes
BOTTOM LINE
The variety of characteristics offered by different electrolyser technologies, along with their cost and state of maturity, can clearly make it hard to choose the right model for a given project. This is even more the case when overall system design is considered.
Pressurised alkaline water electrolysis and PEM are sought after for renewably powered projects because of their dynamic response, while other system setups where there is only limited variability in the power generation might be more favourable for atmospheric alkaline technology.
In other projects, having a system that produces pressurised hydrogen could also be advantageous since the gas needs to be stored and moved under pressure anyway. Pressurising the gas uses energy, which adds to the cost of green hydrogen produced by traditional alkaline electrolysers versus pressurised alkaline electrolysis and PEM.
Meanwhile, pressurised alkaline systems combine the best of traditional alkaline and PEM systems, working with renewables without PEM’s high cost and rare metals requirements. The reality is that the best electrolyser for your project will very much depend on the nature of your specifications and requirements—and the electrolyser is just one of several factors affecting plant economics.
This is why it is important for developers to speak to electrolyser manufacturers and learn about the options before making a choice. The range of electrolyser technologies may seem confusing at first, but it means there is more something for everyone.
As green hydrogen production takes off, demand for electrolysers of all shapes and sizes is set to soar—so it is good news that there are plenty of options for project developers to choose from. •
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Demand response services are vital to reaching Europe’s net-zero goals
To say there has been a surge in EV popularity over the past years is a bit of an understatement. But alongside its many benefits, we know that such a surge comes with its fair share of challenges. In this case, energy usage.
Right now, we are seeing the largest shift in electricity consumption since the invention of air conditioning more than 100 years ago. Naturally, all this additional power demand presents complications—especially during peak usage periods.
Grid stress and peak power demand issues, while nothing especially new, are now being magnified in the face of this growing EV market. Complicating matters is a simultaneous shift toward renewable energy sources, such as wind and solar power, which brings even more complexities.
Unlike traditional power sources, renewable energy supply is variable, making the task of managing high-demand periods more complex and difficult to predict.
So, we have a complicated junction to navigate—one where user demand, variable energy supply, legislative changes and sustainable intentions are all jostling for position. It is at this junction that demand response offers a potential solution.
STABILISING THE GRID
Demand response is all about balancing supply and demand—with the second of those two words being the most important.
Handling supply and demand in the past has conventionally meant increasing the former to meet the latter, boosting the electricity supply to handle peak needs. But this is a costly and inefficient strategy, and it is how we end up with overinvestment in power plants and other infrastructure that sits idle during off-peak periods.
So, instead of focusing on the supply, demand response programs target the demand side of the equation. They aim to alleviate grid stress and manage peak power demand by incentivizing energy users to adjust their energy loads during high-demand periods.
In the case of EVs, demand response can be leveraged to shift charging to off-peak hours or dynamically adjust consumption based on the grid owner’s demand. This strategy effectively distributes demand, thereby alleviating stress on the grid.
RESPONDING FOR REVENUE
Demand response not only mitigates the stress on the power grid but also circumvents the need for costly upgrades to energy infrastructure. It is a prime example of how emerging technology can solve age-old problems without requiring vast capital investment.
But there is another upside here: new financial opportunities at pretty much every level of the value chain. Charge point operators can generate additional revenue by scaling their usage and being compensated for doing so by suppliers, grid operators and government agencies.
And that money can even be passed on to end users. In the example above—where grid operators and utilities ask users to reduce their electricity usage—demand response can enable charge point operators to offer their customers financial incentives or alternative benefits in return.
A WIN-WIN SOLUTION
It is not often in the energy sector that a genuine win-win innovation enters the fray, but the potential benefits of demand response mean it capably fits that bill.
For grid operators and utilities, demand response offers a cost-effective and efficient solution to manage peak power demand and mitigate grid stress, without the need for prohibitive infrastructure upgrades. For charge point operators in the EV space, it offers the opportunity to generate additional revenue, which can also be passed on to the end user.
But things need to accelerate. To align with the International Energy Agency (IEA)’s Net Zero Emissions by 2050 Scenario, we collectively need to ramp up the pace of both policy implementation and technology deployment.
The good news here is that there is notable progress being made. In October 2022, the EU approved a new plan for digitalizing the continent’s energy systems. Demand response readiness—including open access to data and codifying its various procedures—forms a large part of that plan.
STEPPING STONE
But there is still a long way to go. The Net Zero Scenario projects that the market will need to incorporate 500 gigawatts of demand response capacity by 2030, representing a tenfold increase from the deployment levels seen in 2020. This is a lofty aim and things are currently running behind schedule.
The target is possible—we just need to help decision-makers see and unlock the many benefits of the technology.
Ultimately, demand response is more than just a potential energy supply solution; it is a robust stepping stone on our journey toward a more sustainable future.
This future can only come to pass if we work to ensure that renewable energy and EVs coexist without putting undue stress on our power infrastructure. And that coexistence relies on levelling up our energy systems with this new wave of digitally intelligent architecture.
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com.
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The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
The regulatory and incentive frameworks, especially in the US and EU, will be crucial to overcoming barriers and unlocking innovation
The Biden Administration aims to increase the production of SAF through various measures. In September 2021, it launched the Sustainable Aviation Fuel Grand Challenge, which has an aspirational target to ramp up to over 11 million cubic metres (m³) of sustainable aviation fuels (SAF) annually by 2030.
Crucially, in August 2022, Congress adopted the Inflation Reduction Act (IRA) containing two consecutive tax credit schemes for SAF production. The lower a fuel’s carbon intensity score, the higher the potential credit its producer earns.
At a state level, further incentivisation can be found. The California Low Carbon Fuel Standard (CA-LCFS), established in 2009, was updated in 2019 to recognise SAFs as eligible fuels to generate credits based on their quantified greenhouse gas benefits via lifecycle assessment.
These credits can incentivise SAF production as they can then be sold to other obligated parties under the CA-LCFS. Elsewhere, in January 2023 Illinois state lawmakers approved legislation that creates a $1.50/per gallon SAF tax credit which airlines can use to satisfy all or part of state use tax liabilities.
ETS REFORM
Across the Atlantic, to ensure that the European Union cuts its CO2 emissions by 55% in 2030 (compared with 1990 levels), the European Commission, Parliament, and Council are currently negotiating its “Fit-for-55” legislative package, which has three elements that will significantly impact the decarbonisation of aviation.
The EU Emissions Trading System (ETS) covers CO2 emissions from intra-EU flights, with airlines receiving or buying emission allowances for their operations. The ETS incentivises aircraft operators to use SAF by attributing zero emissions to SAF, therefore reducing the number of ETS allowances they need to buy.
The reform of the ETS was finally approved in April 2023. The approved reform brings forth a series of notable highlights that are poised to shape the future of aviation emissions.
One key aspect is the phasing out of free aviation emission allowances, commencing in 2024 and culminating in a complete elimination by 2026. To incentivise the adoption of SAF, the reform reserves an allocation of 20 million free allowances, estimated at €1.6 billion, depending on CO2 prices.
Two other notable provisions introduced are the mandatory disclosure of non-CO2 climate effects by airlines, effective from 2025, and that flights travelling to or from destinations outside the European Economic Area (EEA) will be covered by the United Nation’s CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) framework. Flights to countries not applying CORSIA will also come under the scope of the ETS from 2027.
Next, the Renewable Energy Directive (RED II) has been revised to include rules for producing and accounting for renewable fuels of non-biological origin, such as e-jet fuel.
Finally, the ReFuelEU Aviation deal, struck in April 2023 but still awaiting a formal vote, will legislate for the aviation fuel made available to EU airports should contain 2% SAF, increasing to 6% by 2030, 34% by 2040 and 70% by 2050.
LONG-TERM VISION
The need for clear and long-term legislation to de-risk investment in technology is essential for increasing the production of SAFs as it reduces the perceived risk associated with investing in fresher technology, which may be in the early stages or need to be upscaled.
SAF production technologies are relatively new and investors are cautious about investing in untested technologies due to uncertainties surrounding commercial viability, scalability and regulatory hurdles.
To increase SAF production, there needs to be a significant investment in research and development and private sector investment will play a critical role.
If we consider that refinery lifespans are around 30 years, many incentive programmes—including the recent Inflation Reduction Act (IRA)—end just a few years after a new facility would begin operation. In a world of shifting legal frameworks and production incentives, many innovative technologies have limited opportunities to scale without government guarantees available.
We need to move to a place where policy incentives, offtake agreements and investment horizons match.
POLICY FOCUS
While important to acknowledge and appreciate the leadership shown by the US and EU in providing an increasingly clear regulatory framework overall, more ambitious actions are necessary to ensure the swift and effective implementation of these policies.
Firstly, financial incentives are crucial for de-risking private investments and creating a robust market. This will not only contribute to democratising air travel but also prevent it from becoming a luxury accessible only to a privileged few. In the US, we urge the extension of Sustainable Aviation Fuel (SAF) tax credits beyond 2027.
Additionally, the EU should consider increasing the budget of the European Hydrogen Bank to support the production of renewable hydrogen for e-SAF and redirect revenues from the ETS towards price support mechanisms that bridge the gap between SAFs and fossil fuels.
Secondly, there needs to be a focus on the development and adoption of third-generation feedstocks. This can be achieved through increased investment in research and development as well as industrialisation.
In Europe, it is crucial to include SAF technology as a strategic category in the proposed Net Zero Industry Act to unlock key support mechanisms currently unavailable.
Furthermore, expediting the approval process for new ASTM-approved SAF technology pathways is imperative, as the current timeline of 3-6 years for pathway approval exceeds our carbon budget for achieving the 1.5°C target.
Lastly, the challenge of adapting SAF to airport fuel infrastructure at scale within a limited timeframe requires substantial support. Governments must explore concrete policies to aid the aviation industry and facilitate the construction of necessary airport and pipeline infrastructure.
By taking these recommendations into account, we can accelerate the transition toward sustainable aviation and ensure a more environmentally friendly future for the industry.
The latest IPCC report showed that we are not on track with our climate goals—more focus and urgency are needed. This can and must be driven by regulation and incentivisation across industries, and of course when