Five Themes (and 10 Articles/Papers) on the Energy Transition in 2022 that will carry onto 2023
Melissa Stark
Senior Advisor to Deputy Assistant Secretary Operations, Fossil Energy and Carbon Management, U.S. Department of Energy (formerly Accenture's Global Energy Transition Services Lead)
We came out of COP26 optimistic about the energy transition, with more country commitments to net zero, trillions in financing pledged to developing markets, and a commitment to an inclusive energy transition. But 2022 made it clear that our Energy Transition journey will be rocky, with the clean energy infrastructure expansion and transformation challenges becoming much clearer, and energy security coming back to the fore.
Here are links to 10 articles and papers from 2022 on five key themes that will continue onto 2023, representing various perspectives of diverse stakeholders who will need to work together for the energy transition and to deliver net zero by 2050.
Theme 1: Electricity as a Backbone to a Future Integrated Energy System
Electricity will be at least 50% of our future integrated energy system.
The electricity system needs to be transformed into an electricity backbone that integrates high levels of wind and solar and is a much more asynchronous system with flexible demand and multiple types of short-term and longer-term storage. Electricity needs to work in coordination with the gas (natural gas, biogas, H2) infrastructures.
This paper on the integration of energy systems describes a scenario of renewable electrons and electrification of end use appliances and industrial processes as a plausible paradigm to realize a carbon-free energy economy.
1. Integration of Energy Systems
Two proposals have emerged in Europe and the UK for the electricity backbone and the integration with gas infrastructures from ENTSO-E and the UK.
2. ENTSO-E Vision: A Power System for a Carbon Neutral Europe
3. UK Future System Operator Bill
Theme 2: Industrial Decarbonisation through Industrial Clusters
Industry accounts for ~30% of emissions and ~1/2 of these emissions occurs in industrial clusters. Europe alone has ~3000 clusters with ~62M jobs. These sectors are the hardest to abate and need to be globally competitive. Accenture in collaboration with the World Economic Forum and the Electricity Power and Research Institute (EPRI) launched the “Transitioning Industrial Clusters towards Net Zero” initiative at COP26, with an aim to bring together 100 clusters who will reduce emissions, create jobs, and create future competitive industries.
In the Investing in Industrial Clusters paper, we explore, particularly for hydrogen in the US, how to turn $1 of public financing into $100 of private financing and develop a new industry.
4. Investing in Industrial Clusters – U.S. Perspective on financing Industrial Decarbonisation
In policy papers, we look at the industrial clusters supporting government policies and incentives to decarbonise while supporting jobs and future competitive industries.
5. Transitioning Industrial Clusters towards Net Zero: National Policy Enablement for Industrial Decarbonization (10 Countries)
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Theme 3: Energy Transition in Emerging and Developing Markets
Emerging markets should not have to sacrifice growth and prosperity for the energy transition. Solar and wind are now even more competitive than fossil electricity sources, and we see this growth. But many grids in emerging markets are not yet suited to variable wind and solar generation, and many developing markets have domestic coal and gas resources, overcapacity in fossil generation assets, and long-term contracts.
The paper delivered by the Energy, Sustainability, and Climate Taskforce of the B20, hosted by Indonesia, represents the emerging markets perspective.
6. Energy, Sustainability and Climate Task Force Paper
Coal in emerging and developing economies make up ~75% of all installed coal capacity, and there is 500+GW of new coal planned in the next 10-15 years in emerging and developing markets. Accenture, in collaboration with the World Economic Forum, released a Coal to Renewables Toolkit and the following article highlights great examples in how the retirement of coal assets and be linked with the upside of renewables.
7. Coal to Renewables
Theme 4: Managing Short-term Energy Security Challenges
The Russia-Ukraine war brought Energy Security to the fore of the Energy Transition conversation, reminding us that geopolitical events will continue throughout our journey to net zero and that we will need to deal with the realities of disruptive events and short-term measures. But we do need to ensure that short-term measures do not compromise our long-term climate goals.
U.S. Secretary of Energy, Jennifer Granholm, recently asked her National Petroleum Council (NPC), for the short-term actions to improve the resilience of the energy markets. The paper is the NPCs response shared at the NPC meeting on December 14th. There is also a companion paper on what the U.S. Oil and Gas industry intend to do to support the energy transition.
8. Petroleum Market Developments – Progress and Actions to Increase Supply and Improve Resilience (NPC Report on Short-term Actions for Secretary Granholm)
Theme 5: Emerging Net Zero Technologies
Technology development is critical for the energy transition, and, given how long technology development has taken in the past to scale, we need an unprecedented acceleration of all colours of hydrogen, CCS, and floating offshore wind.
Accenture, working with the UK’s Net Zero Technology Centre produced a summary of the technical challenges that we need to overcome in this decade for key technologies.
9. Technology Driving Green Energy (CCS, Green Hydrogen, Floating Offshore Wind)
Fusion, of course, can change everything- Net Zero energy with almost no waste- successfully recreating how the sun works. Unfortunately, given the development timelines, fusion may come too late for net zero by 2050, – but it’s still a gamechanger to watch.
10. National Ignition Facility achieves fusion ignition
Global Utilities Lead, Senior Managing Director at Accenture
1yThis is fantastic, Melissa. Thank you for sharing!
Human and Digital Intelligence Futurist /Advisor /Explorer /Innovator /Writer, enabling High Level Leaders to Shape Integrative, Ethical, Truth, Wise and Resilient (Sustainable (Circular)) Futures in Segment Markets
1ySome exciting research and thinking of concepts and architectures at country and union / federation, country and micro grid levels.