Right now, energy system costs are driven by generation capacity, infrastructure upgrades, network reinforcements, curtailment and constraint payments, and imbalance costs. What’s missing is the investment in a raft of demand side management assets that are ready to go but are not part of the market, therefore not rewarded, and therefore not being invested in. Laura Sandys at Energy Systems Catapult, writing for WEF, explains why flexibility must … [Read more...]
Fossil Fuel divestment is premature: instead, enable investment to keep prices low, and tax consumption
We need to shift investment from fossil fuels to other climate-friendly energy sources, but it must be done more intelligently than we’re doing it today, says Schalk Cloete. The rapid global economic development needed to uplift the 86% of the world’s population currently living below $1,000/month is inextricably linked to the continued and timely growth in an abundant supply of affordable energy. It would be unjust – and probably futile – to … [Read more...]
U.S. EIA Annual Energy Outlook 2022 reveals no reduction in emissions to 2050
The U.S. Department of Energy’s Energy Information Administration (EIA) has released its influential 2022 “Annual Energy Outlook” (AEO2022) which projects the electricity mix over the next 30 years. (The modelling takes policies and global conditions as they were in November 2021, so the current Russia-Ukraine crisis is not accounted for, nor any future unforeseeable shocks, and assumes no new policies to 2050). Sandra Sattler at the Union of … [Read more...]
Lower driving speeds + more: behaviour change can make up for 2.7m barrels/day loss of Russian oil imports
Russia normally exports 5m barrels of oil a day. Sanctions may now see Ukraine-supporting nations refuse to buy 3m of them. Can those nations cut their consumption by the same amount, immediately, and stop shortages and further price rises? Yes, says Lucas Davis at the Haas School of Business. Following the Russia-Ukraine crisis, the IEA has released a report “A 10-Point Plan to Cut Oil Use”, with ten ideas for immediate actions in advanced … [Read more...]
Will turning down Europe’s thermostats ease the Gas supply crisis?
To counter the extremely high gas prices caused by the Russia-Ukraine crisis the IEA has proposed turning thermostats down in households to use less gas. The IEA estimated lowering the heating by just 1°C would reduce gas demand by around 10 bn cubic metres a year, or 7% of Europe’s annual imports from Russia. Aurore Julien at the University of East London looks at quantifiable past attempts around the world to get citizens to cut their energy … [Read more...]
Critical minerals and materials: supply bottlenecks and risks need international cooperation
The growth in demand for minerals and materials needed for the energy transition is putting a strain on supply. Mining and processing are the two key bottlenecks. Dolf Gielen, Martina Lyons, Francisco Boshell and Peter Chawah at IRENA summarise the multiple challenges. New capacity is not the only problem: the geographical concentration of where the mining and, in particular, the processing is being done is the primary risk. China’s dominance in … [Read more...]
Activating a community energy market for bioenergy: a new e-market environment connects biomass heating supply chain stakeholders
The e-market environment supports various supply chain stakeholders when developing a community bioenergy project on defining the services and activities needed to support their cases. It demonstrates the various stakeholder interactions and activities/services that must take place to set up an effective and sustainable local supply chain and a community bioenergy project, streamlining the process. The user-friendly, easy to use and intuitive … [Read more...]
Intelligent, flexible Sector Coupling in cities can double the potential for Wind and Solar
This week the European Commission tabled the Energy Performance of Buildings Directive (EPBD) which should accelerate the decarbonisation of buildings. Buildings and cities play a key role in the energy transition. And the target high shares of variable renewable power supply will be much more easily achieved if the sectors using them display demand flexibility. In essence, that means using or storing the excess wind and solar generation … [Read more...]
Grid-Interactive Efficient Buildings: how to start saving from day one
Edie Taylor, Rebecca Esau and John Matson at Rocky Mountain Institute explain how their report “Grid-Interactive Efficient Buildings Made Easy” identifies simple, low-cost steps that produce immediate cost, energy, and carbon savings. As utilities evolve their pricing structures to encourage users to avoid peak times, building managers must ready themselves with the controls that will allow them to buy electricity when it is cheapest. Demand … [Read more...]
Hydrogen at COP26: committing to scale-up and creating demand
At COP26 the voice of hydrogen staked its claim to meeting its targets and its contribution to making the 1.5°C scenario a realistic ambition. Cato Koole and Thomas Koch Blank at Rocky Mountain Institute explain that hydrogen supply should not be the problem. The combination of deployed and announced projects already places the world close to the green hydrogen production capacity needed as outlined in the IEA’s "Net Zero by 2050" roadmap. The … [Read more...]
Electricity Market Reform: ACER must empower consumers, not just network operators
ACER, the EU Agency for the Cooperation of Energy Regulators, has delivered to the EC its preliminary assessment of Europe's high energy prices and the current wholesale electricity market design. Simon Skillings and Lisa Fischer at E3G interpret ACER’s assessment as showing it wants to maintain the status quo. However, long-term changes in market design are inevitable. The authors want ACER to accept this reality and ensure the changes are … [Read more...]
DoE study: 45% of U.S. power from Solar by 2050. How?
This month, the White House released a U.S. Department of Energy report, the Solar Futures Study, on how solar power could generate up to 45% of the U.S. electricity supply by 2050. It’s less than 4% today. Joshua Rhodes at the University of Texas at Austin looks at what obstacles must be overcome. The good news is that the technology and engineering is already available. And solar’s advantage is that the sun shines nationwide. Other region and … [Read more...]
We’re not costing energy correctly: reward clean energy optimisation, not maximum generation
Laura Sandys at Energy Systems Catapult says policy makers today are too focussed on rewarding clean energy generation, in other words supplying as much energy as possible. With that comes a focus on reducing the cost of the energy generated. But how about reducing demand? Demand optimisation should be equally rewarded: efficiency, non-generation demand management (even at the household level: think EVs and heat pumps), and any assets that … [Read more...]
How to keep Wind and Solar profitable as its electricity gets cheaper
Success can cause problems. As wind and solar penetration increases the electricity it generates gets cheaper. If it stops being profitable we’ll stop building it, thus endangering our emissions-free goals. Dev Millstein at the Lawrence Berkeley National Laboratory summarises their research paper that looks at how market value changed over time at 2,100 utility-scale power plants across major power markets in the U.S., using 2019 data. It’s clear … [Read more...]
ELCC: for predicting how much storage a grid really needs
How much storage does a grid need? Too little leads to blackouts. Too much means money wasted. Getting the predictions wrong will skew policy priorities and investments, and slow the transition to a clean electric grid. Effective Load Carrying Capability (ELCC) measures a resource’s ability to produce energy when the grid is most likely to experience electricity shortfalls. Mark Specht at the Union of Concerned Scientists explains how it works. … [Read more...]