In today's world, energy has become a basic necessity of life. Electricity has evolved as a basic human need not just for humans but also for schools, hospitals, businesses, institutions, cities, and industries. Electricity has become an essential determinant in differentiating between the developed and the developing economies, with more than 850 million people still living without it, as reported by the International Energy Agency. Leading a life without energy and electricity is nothing short of a curse for society. Their absence would further aggravate the condition of the struggle for those deprived of them. However, those with access to electricity and energy can imagine their lives without air conditioners? Can they imagine how it would be without the internet? Can they imagine how institutions would be disrupted in the absence of electricity? As of now, the answer to every single question is beyond imagination.
With the rising population across the globe, the demand for energy is rising at an unprecedented rate. However, with the increasing demand, the economies are moving towards adopting sustainable goals. Industries are focusing on decarbonizing their operations. The governments are aiming to create a carbon-neutral environment. Global corporations play a vital role here, but policymakers must take the lead and create the right environment to encourage innovation and investment in pursuing a sustainable energy future. True sustainability strikes a balance between economy, environment, and society. Renewable energy's contribution to worldwide electricity generation increased to 26% in 2018, according to the International Energy Agency (IEA). However, the reality is that today's energy system is still reliant on fossil fuels. Coal, gas, oil, and nuclear power are still needed to meet global energy demands.
Fig.1: Renewable electricity generation increase by technology, country and region, 2020-2021
Source: International Energy Agency
While China will remain the largest solar photovoltaic (PV) market, expansion in the United States will continue because to continued federal and state legislative assistance. After a significant drop in new solar photovoltaic (PV) capacity additions in 2020 due to COVID-related delays, India's photovoltaic (PV) market is predicted to rebound quickly in 2022. Also, strong governmental support for distributed solar photovoltaic (PV) applications in Brazil and Vietnam are driving the market. Solar photovoltaic (PV) electricity generation is predicted to expand by 145 terawatts-hour, or over 18%, globally by 2022, approaching 1000 terawatts-hour. It is anticipated that there will be an increase in hydropower generation in 2022 as a result of a mix of economic improvement and new capacity additions from large Chinese projects.
Renewable chemicals play a significant role in the process of energy transition. A rising number of small and large scale industries are focusing on applying renewable chemicals right from the entry point to build a bio-based economy. Data Bridge Market Research grabbed this market opportunity to prepare a detailed report on the global renewable chemicals market. The global renewable chemicals market was valued at USD 98.00 billion in 2021 and is expected to reach USD 224.71 billion by 2029, registering a CAGR of 10.93% in 2022-2029. BASF SE (Germany), Mitsubishi Chemical Holdings Corporation (Japan), DAIKIN (Japan), 3M (U.S.), Braskem (Brazil), Corbion N.V. (Netherlands), NatureWorks LLC (U.S.), Amyris (U.S.) and DuPont (U.S.) are some of the major players operating in this market.
To know more about the study, visit: https://www.databridgemarketresearch.com/reports/global-renewable-chemicals-market
Fig.2: Renewable electricity generation increase by technology, 2019-2020 and 2020-2021
Source: International Energy Agency
Wind is expected to have the highest growth in renewable energy, increasing by 275 terawatts-hour, or over 17%, compared to 2020 levels. Due to policy deadlines in China and the United States, developers completed a record amount of capacity in the fourth quarter of 2020, resulting in a significant rise in energy generation in the first two months of 2021. China is predicted to generate 600 terawatts-hour in 2021-2022, while the United States will generate 400 terawatts-hour, accounting for more than half of worldwide wind output.
AT A GLANCE:
- The process of reducing greenhouse gas emissions to 'zero' is known as energy transition (i.e. where removals of emissions from the atmosphere balance remaining emissions)
- Much-needed progress is being made, but the essential infrastructural framework aiming to decarbonize the energy will take time
- Depending on the circumstances, resources, and demands of each country and its own energy system, the path to solving the energy transition will be different
- While renewables are becoming more prevalent and will play an increasingly important role in the future energy mix, they are inherently intermittent and cannot always deliver continuous power. It is expected that fossil fuels and renewables to coexist for the foreseeable future.
- People will not have access to reliable and inexpensive electricity if we discard old energy generation systems before adequate replacements. This is, therefore, a complicated problem that cannot be solved with individual efforts.
ENERGY TRANSITION AS A COMPLICATED PROBLEM
Yes, energy transition is a complex problem with many uncertainties and dimensions. The burning of fossil fuels for energy is the primary source of greenhouse gas emissions. Reduced usage of fossil fuels in both the power sector (which generates electricity) and directly powered equipment, such as gasoline in cars or gas boilers in homes, is required as part of the energy transition. Low- or zero-carbon energy sources, such as renewables or nuclear power, can be used to replace fossil fuels. Where fossil fuels cannot be totally eliminated, greenhouse gas emissions must be captured at the source, but this is only feasible for big sources of emissions, such as power plants or industry.
The energy transition is one of the most difficult tasks confronting today's industrialized civilizations, involving extensive social and technological changes over several decades. Several government organizations, notably the Climate Change Committee, have established detailed plans for attaining a net-zero emissions economy by 2050 in the UK. However, there is still a lot of ambiguity regarding the exact path of decarbonization.
Most experts agree that there is no ideal or universal energy mix. There is no one-size-fits-all solution that will be adopted universally. Even if the goal of international climate summits is to establish key global objectives, each country or group has its own energy transition perspective. Energy transformations are delayed because energy systems lack momentum. Energy transitions are impossible to achieve without disruptive technology and drastic shifts in consumer behavior. On the other hand, the International Energy Agency has worked on global scenarios and emphasized the need to act quickly – by 2050 – if humans are to keep the world average temperature rise to 1.5°C by the end of the century. Therefore, instead of this vision, which by no means is set in terms of a universal plan, the action plan may vary from country to country.
Through 2025, the pandemic has the potential to shift the priority of government policies and budgets, as well as developers' investment decisions and finance availability. This adds to the uncertainty in an industry that had been rapidly developing for the preceding five years. At the same time, numerous countries are implementing large stimulus programs to help their economies recover from the present economic downturn. Some of these stimulus methods may apply to renewable energy. According to the International Energy Agency, governments should consider the structural benefits of more competitive renewables, such as economic development and job creation, while simultaneously cutting emissions and promoting technology innovation.
The energy transition from fossil fuels to more sustainable energy production will not happen overnight. The elimination process will have to be gradual and carefully managed to ensure grid stability, resilience, and efficiency. Electrification is the key to achieving this change: gradually replacing fossil-fuel-based technology with renewable-energy-based technologies in all sectors, from home cooking to heating to transportation. This will help cut air pollution in cities, and energy efficiency will improve considerably as a result of grid digitization.
RENEWABLE ENERGY AND THE PANDEMIC
To meet the International Energy Agency net zero scenario share of more than 60% by 2030. Renewable power needs to expand significantly. Renewable electricity generation increased by 7% in 2020, with wind and solar PV technologies accounting for about 60% of the growth. Renewables accounted for about 29% of global electricity generation in 2020, a two-percentage-point rise from the previous year. However, a fundamental reason for this record is a decline in electricity demand caused by the COVID-19 slowdown in economic activity and mobility. To fulfill the net zero emissions by 2050 Scenario's share of more than 60% of generation by 2030, renewable power installations must increase dramatically.
Fig.3: Renewables and low-carbon share in power generation in the net zero scenario, 2000-2030
Source: International Energy Agency
The graph shows that annual generation must rise by about 12% on average between 2021 and 2030, nearly twice as much as it did from 2011 to 2020. Despite the economic disruptions induced by COVID-19, only the use of renewables increased in the electrical sector in 2020. Renewable energy generation climbed by 7.1 percent (to a new high of 505 terawatts-hours), about double the average yearly percentage growth since 2010. Solar PV and wind contributed to around a third of total renewable electricity generating growth in 2020, with hydro accounting for another 25% and biofuels accounting for the rest. In 2020, the renewables share of total power generation increased by a record two percentage points. Renewable energy accounted for 28.6% of worldwide electricity supply in 2020, the highest percentage ever recorded.
KEY HIGLIGHTS DURING PANDEMIC:
- Despite the COVID-19 crisis's mobility and logistical obstacles, renewable capacity additions surged by more than 46 percent from 2019 to 2020, surpassing yet another record. The expansion was fueled by a staggering 192 percent increase in global wind capacity expansions
- This record surge was bolstered by a 25% increase in new solar PV installations to nearly 135 GW
- The renewables industry quickly adapted to the new market conditions, allowing developers to commission new facilities in China, the United States, and Vietnam before legislative deadlines
- Many governments, including those of the United States, China, India, and the European Union, reaffirmed their resolve to seek quicker renewable technology deployment throughout the crisis, which is projected to boost capacity expansion in the future years
- Countries might increase the share of investment committed to renewable energy in stimulus packages aimed at reviving their economy, boosting renewables adoption even further. This may take advantage of the structural benefits that more affordable renewables can provide, such as job creation and economic development prospects, while also cutting emissions and stimulating innovation.
Various policy mechanisms have been used to encourage the adoption of renewable energy at various stages of technological maturity. The possibilities are to feed-in tariffs or premiums imposed by the government, renewable portfolio standards, quotas, and tradeable green certificate programs, net metering, tax rebates, and capital grants. Some of these instruments have been released at the same time.
Recently, auctions for centralized competitive renewables procurement have grown in popularity, and they have proven to be effective in determining renewable energy prices and managing policy costs in many countries, particularly for solar PV and wind. However, the design of such policies and their capacity to attract investment and competition determine their success in attaining deployment and development goals.
Data Bridge Market Research prepared an investigated report on the global solar photovoltaic glass market. The solar photovoltaic glass market was valued at USD 4.42 billion in 2021 and is expected to reach USD 84.14 billion by 2029, registering a CAGR of 30.80% in 2022-2029. The "crystalline silicon PV modules" account for the largest module segment in the solar photovoltaic glass market due to its high efficiency and uncomplicated manufacturing processes. Hecker Glastechnik GmbH & Co. KG (Germany), ENF Ltd., (Germany), Emmvee Toughened Glass Private Limited (India), and Euroglas GmbH (Germany) are some of the players operating in this market.
To know more about the study, visit: https://www.databridgemarketresearch.com/reports/global-solar-photovoltaic-glass-market
TECHNOLOGIES THAT WILL DRIVE ENERGY TRANSITION
The current global energy crisis has heightened the need to speed clean energy transition programs, emphasizing the critical significance of renewable energy once again. Pre-crisis policies result in greater growth in the updated prediction for renewable electricity. While looming market uncertainties increase the number of obstacles, a renewed focus on energy security – particularly in the European Union – is catalyzing unprecedented legislative momentum toward increased energy efficiency and renewability. Finally, whether new and stronger rules are adopted and implemented in the next six months will determine the outlook for renewable energy in 2023 and beyond. Despite the persistence of pandemic-driven supply chain issues, construction delays, and record-high commodity prices for raw materials, annual renewable capacity additions reached a new record in 2021, climbing 6% to about 295 gigawatts. Due to rising commodity and freight prices, solar PV and wind costs are likely to stay higher in 2022 and 2023 than pre-pandemic levels. However, their competitiveness improves due to significantly greater increases in natural gas and coal prices. Renewable capacity is predicted to grow by more than 8% in 2022, reaching about 320 gigawatt. However, unless new rules are quickly implemented, growth will stay stable in 2023, since solar PV expansion will not be able to compensate for decreased hydropower and consistent year-over-year wind additions fully. The rate of adoption of renewable resources and technologies can be accelerated using a set of technologies. These technologies are discussed in detail as below:
Fig.4: Technologies that can drive energy transition process
- Smart Buildings- Buildings have a significant impact on how organizations achieve their goal in a sustainable and competitive manner: they affect financial and reputational strength, service delivery capability, as well as employee well-being and productivity. As a result, buildings must work optimally. A smart building is outfitted with interconnected technology that aims to improve energy management and make tenants' lives easier. Thanks to the Internet of Things (IoT) and artificial intelligence, many applications are serving these functions. The smart building, also known as an intelligent building, is a collection of technologies that work together to ensure optimal energy efficiency.
IMPORTANT: Many buildings are inefficient in terms of energy use and contribute significantly to carbon emissions. As of February 2020, around 75% of the EU's building stock was energy inefficient. So there's still a long way to go. According to a Navigant analysis from 2019, only 5% of smart city initiatives studied had a primary focus on building innovation, while only 13% had some level of attention.
It is possible to acquire precise data on users' real energy consumption using connected sensors. Effective efforts can be implemented to improve the management of energy use in buildings while also encouraging an environmentally sustainable energy transition. Smart buildings can provide the correct solutions to generate significant energy savings, which is critical given that the construction industry is one of the most energy-intensive.
Sensors can, for example, be used to adjust the temperature of a space based on its occupancy or to facilitate maintenance by preventing equipment from shutting down abruptly.
IMPORTANT: According to Gartner, more than four billion linked IoT devices will be in commercial smart buildings by 2028. Telecommunications infrastructures will power them, with 5G and High-Efficiency Wi-Fi (6 or 6E) at the forefront and smart utilities for power, waste, and water.
These technologies have a tangible impact on users, resulting in a more pleasant daily existence. This might result in a consistent temperature from room to room, resulting in exceptional heating quality. These difficulties have monetary ramifications as well. Building owners and renters can save money on their bills by better controlling energy consumption. Intelligent buildings are a global solution to energy waste and over-consumption through their design, which is aimed to regulate energy use. In fact, smart construction and sustainable development are two concepts that are closely intertwined. One of the key goals of the energy transition, which began in 2015, is combating overconsumption. Installing smart sensors in the electricity grid (Smart Grids) can help you save money in the long run. Improved equipment maintenance, such as ventilation and lighting systems, assures peak performance at all times.
- Distributed Energy Systems (DES) - Costs, supply security, and CO2 reduction are the three key concerns facing industries, commercial areas, huge buildings, towns, and communities. It is possible to turn these challenges into long-term calculable variables – across all businesses and industrial sectors – with the help of local distributed energy systems and solutions. The solutions use an optimized mix of distributed energy resources (DER) such as renewable energy, combined heating and power stations, or storage systems, all of which are supported by sophisticated energy management. Energy-as-a-service is an option if one wishes to outsource the energy management. As the globe looks to migrate away from carbon-based fuels and toward renewable energy (for a variety of reasons, not the least of which is to reverse climate change), distributed energy technology innovation is emerging as a possible means of achieving this goal. The majority of energy is currently produced in a centralized power plant. Traditional power plants, such as coal, gas, nuclear power plants, hydroelectric dams, and large-scale solar power plants, are frequently positioned close to needed resources to reduce transportation costs or else remote from population centers. Due to the pollutants released by coal plants, isolated sites are preferred for their construction.
These centralized power plants provide electricity to the traditional transmission infrastructure, which transports bulk power to load centers (with significant losses over long distances). The electricity is then distributed to the grid's customers. For transmission and distribution (T&D), centralized power plants rely largely on the grid; however, the rising expense of grid maintenance and serious worries about the system's age, rate of deterioration, and capacity restrictions are threatening this relationship. Distributed energy systems, also known as distributed generation, on-site generation (OSG), or district/decentralized energy, are flexible, decentralized, and modular systems that are placed near the load they service. Because electricity is generated close to where it is needed, or even on the same site where it is produced, distributed generation decreases the amount of energy lost in transmission. This also cuts down on the size and quantity of power lines that need to be built. The gadgets that generate distributed energy are likely to be mass-produced, compact, and less site-specific.
IMPORTANT: Solar panels from the first generation, in the nineteenth century, were composed of selenium. Photovoltaic (PV) panels today use thin wafers of silicon crystal that knock electrons loose and create an electrical circuit when hit by photons from the sun. The only moving parts in a solar panel are these subatomic particles. PV has decreased mining-safety concerns by requiring no fuel and emitting no emissions during operation.
By far the most important solar technology for distributed solar power generation is photovoltaics (PV). PV converts sunlight into electricity by combining solar cells into solar panels. It's a fast-growing technology, with global installed capacity doubling every couple of years. PV systems range in size from small, dispersed rooftop or building-integrated systems to huge, centralized utility-scale solar power plants. A well-run distributed energy system will lessen your dependency on centralized power plants that use fossil fuels to generate electricity. A distributed energy system has the potential to save a lot of greenhouse gas emissions.
Greenhouse gas emission factors for centralized power plants can range from 500 to 2000 pounds of CO2 per megawatt-hour delivered unless power purchase agreements are in place to ensure that you are receiving low carbon electricity. That same greenhouse gas emission factor could be near zero depending on how your distributed energy system is powered. Many businesses have set greenhouse gas reduction targets, and distributed energy solutions can help you meet those targets. Although distributed energy systems have a larger initial investment, the greenhouse gas reductions are significant and can be recovered during the system's lifetime.
Carbon dioxide is responsible for fueling up the greenhouse gas emissions. It is further responsible for elevating the temperature levels, thereby resulting in global warming and glaciers melting. Data Bridge Market Research prepared a detailed report on the global carbon dioxide market. According to Data Bridge Market Research, carbon dioxide market size is valued at USD 10.50 billion by 2028 and is expected to grow at a compound annual growth rate of 3.50% for the forecast period of 2021 to 2028. The carbon dioxide market is segmented on the basis of source, delivery mode, production and application. The rising application of carbon dioxide in the food and beverages, enhanced oil recovery (EOR) technology, and medical industry, various technological advancements associated with the introduction of numerous modern techniques which uses carbon dioxide released in the production stage and increasing demand for rural electrification are the major factors responsible for flourishing the growth of the carbon dioxide market.
To know more about the study, visit: https://www.databridgemarketresearch.com/reports/global-carbon-dioxide-market
- E-mobility- Over the last decade, the number of electric vehicles (EVs) has expanded dramatically, and this trend is likely to continue in the next five years. Electric vehicle sales will reach 37 million units by 2024, according to the ARK Investment Management LLC 2020 projection. Reduced battery costs and government backing through favorable legislation are mostly to be held responsible for the global increase in the number of electric vehicles. India's electric mobility industry is predicted to grow at a rate comparable to those of advanced electric vehicle markets around the world. Around four million electric two- and three-wheelers are expected to be sold in India by 2025. This will raise overall electricity demand, necessitating careful grid infrastructure planning. The integration of renewable energy (RE) into the electrical grid and the difficulty of regulating demand from electric vehicles (EVs). India's transportation sector emits an estimated 142 million tons of CO2 per year, with the road transport segment accounting for the majority of these emissions (Bureau of Energy Efficiency, 2020).
IMPORTANT: As the manufacturers explore new concepts of electrified, connected, autonomous, and shared mobility, industry players are speeding up the pace of automotive technology innovation. Over the last decade, the industry has drawn more than $400 billion in investment, with around $100 billion of it coming since the start of 2020. This money will go to enterprises and start-ups that are working on electrifying mobility, linking vehicles, and developing self-driving technologies.
Electrification will play a significant part in the mobility industry's transition and will present significant potential in all vehicle segments, however the rate and scope of change will vary. Launching new electric vehicles on the market is a vital first step in ensuring electric transportation's rapid and widespread adoption. In addition, the whole mobility ecosystem, from electric vehicle manufacturers and suppliers to financiers, dealers, energy providers, and charging station operators, must work together to make the change a success.
DECARBONIZATION, BUT HOW?
In the short term, the most efficient and latest technologies can be placed into energy infrastructure that expands on existing assets, increasing their value while cutting emissions. While some solutions require lengthy programs lasting three to five years and require additional commitment and resources, others can be implemented immediately. Small, transportable gas turbines can be used to replace inefficient diesel generators that are typically used in tough terrain. For cities by the seaside, there are even floating installations. Gas and steam turbines can be updated, optimized in operation, or replaced, allowing much of the existing infrastructure to be retained and upgraded.
The next step in this evolution is hybrid solutions. These solutions mix diverse technologies within a single facility, such as gas power paired with batteries or solar power. This has a number of advantages, including providing dependable, flexible solutions that are tailored to avoid wasting any power that can be kept in the system.
This decarbonization endeavor does not exclude – and should not exclude – the oil and gas industry. Businesses and government has access to cutting-edge technology that allows us to deploy new systems and upgrade the industry's large installed base. They can considerably decarbonize oil and gas using technologies that increase electrification, automation, and digitalization. The second major component for decarbonizing all energy sectors is hydrogen, also known as synthetic fuels. Hydrogen and synthetic fuels can be utilized to store energy on a big scale and to use green energy widely in mobility, heating, and agriculture by converting electric surpluses through electrolysis. Repurposing this energy to generate electricity in gas turbines is also an efficient use of existing infrastructure.
