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April 2021 – open access articles The following articles are taken from Energy World magazine’s April 2021 edition for promotional purposes. For full access to the magazine, become a member of the Energy Institute by visiting www.energyinst.org/join
Energy transition
CLIMATE DIPLOMACY
Not on course for destination 2030
It’s no exaggeration to say that the next 10 years will be among the most consequential in human history. As the pandemic abates, governments must focus on tackling the climate challenge – and they will have to ramp up their ambitions rapidly. Jennifer Johnson reports.
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espite a wealth of newly declared targets and goals, governments are not yet approaching the level of ambition needed to limit global temperature rise to around 1.5°C. In the rush to jumpstart stalled economies, there’s a danger that greenhouse gas (GHG) emissions will rebound – and that reductions observed during the pandemic will be a fluke, rather than the start of a terminal decline. The United Nations has said that humanity must slash its GHG output by 45% by 2030 from 2010 levels, meaning that the need for deep decarbonisation across all sectors is urgent. Slow to act Stark as these warnings are, there is plenty of evidence to suggest that policymakers are not yet heeding them sufficiently. In February, the research group BloombergNEF (BNEF) revealed that the world’s largest economies are largely failing to stick to the
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The US, Canada, Mexico and Australia made investments supporting oil and gas in their COVID-19 spending packages. Photo: Shutterstock
promises they made under the Paris Agreement. The firm’s G20 Zero-Carbon Policy Scoreboard evaluated the decarbonisation policies of the world’s 19 largest economies plus the European Union, and found that even countries with progressive and far-reaching climate policies are falling short. Analysts confirmed that much of the progress in reducing GHGs to date has come from the power sector, with all of the countries they studied having some government scheme to support the rollout of clean electricity. The countries covered in the Scoreboard were marked out of 100% based on 122 qualitative and quantitative metrics relating to the number, robustness and effectiveness of their decarbonisation policies. According to the report, no country has a perfect score for all areas, with those for the industry and buildings sectors most commonly the lowest.
Governments will therefore need to consider how to best address these weaknesses if they wish to achieve their climate targets. ‘While some power sector policies have delivered results, most countries have done little elsewhere in the economy,’ says a statement from Victoria Cuming, Head of Global Policy Analysis for BNEF. ‘And even within each sector, it’s not enough to implement incentives for one technology – multiple pathways are required.’ The UN has called for the world’s largest emitters to step up their ambitions ahead of November’s COP26 meeting in Glasgow. Parties to the Paris Agreement were meant to have submitted enhanced nationally determined contributions (NDCs) – or climate action plans – to the UN by the end of last year. However, only 74 countries (including the 27 EU countries), representing 28% of global emissions, followed through by the deadline. Notably absent were
Energy transition
three of the world’s largest emitters: the US, China and India. Countdown to COP26 In late February, the UN also published its initial NDC Synthesis Report, which was designed to quantify the impact of countries’ increased climate ambitions. Analysis showed that the revised NDCs result in emissions cuts that are only 3% lower by 2030 than the previous round of pledges set out by the same nations in 2015. However, Patricia Espinosa, Executive Secretary of UN Climate Change claimed that the report represented a ‘snapshot, not a full picture’ of the NDCs, as COVID-19 made it difficult for many governments to complete their submissions for 2020. An additional report will be released prior to COP26, according to Espinosa, who also urged countries to make their submissions as quickly as possible. ‘This report shows that current levels of climate ambition are very far from putting us on a pathway that will meet our Paris Agreement goals,’ she says in a statement. ‘While we acknowledge the recent political shift in momentum towards stronger climate action throughout the world, decisions to accelerate and broaden climate action everywhere must be taken now.’ Only two of the 18 largest global emitters – the EU and the UK – presented an NDC last year that contained a strong expansion of their GHG reduction targets. Though the Synthesis Report showed that the plans submitted in 2020 are more robust and detailed than their predecessors, the UN conceded that the overall level of ambition on the part of major emitters remains ‘very low’. Espinosa further urged the G20 nations to lead the way by ensuring their COVID-19 recovery measures are sustainable and promote low-carbon development. On this front, data has also shown that policymakers have left much to be desired. Recovery or rebound New analysis of announced recovery spending by major economies – undertaken by Oxford’s Economic Recovery Project and the UN Environment Programme (UNEP) – found that only 18% can truly be considered ‘green’. Analysts classified just $341bn of the $14.6tn in postCOVID pledges as sustainable, though the inclusion of European Commission spending brings the figure up to $697bn. The largest
The United Nations has said that humanity must slash its GHG output by 45% by 2030 from 2010 levels, meaning that the need for deep decarbonisation across all sectors is urgent
share of this total ($86bn) is directed toward green transport mechanisms, such as electric vehicle subsidies and cycling infrastructure. Meanwhile, $66bn was invested in low carbon energy, largely thanks to Spanish and German subsidies for renewable energy projects, as well as hydrogen and infrastructure investments. Some $56bn was announced for natural capital or ‘nature based solutions,’ including ecosystem regeneration initiatives and reforestation. The report emphasises that low-income countries will require substantial concessional finance from international partners to keep decades of progress against poverty from being undone. Brian O’Callaghan, Lead Researcher at the Oxford University Economic Recovery Project and the report’s author, says: ‘Despite positive steps towards a sustainable COVID-19 recovery from a few leading nations, the world has so far fallen short of matching aspirations to build back better. But opportunities to spend wisely on recovery are not yet over. Governments can use this moment to secure long-term economic, social, and
Lockdown’s limited impact By now, we know that the lockdown restrictions imposed to limit the spread of COVID-19 had a positive impact on carbon dioxide (CO2) emissions – which fell by more than 2bn tonnes last year. This figure amounts to a record drop of around 7% from 2019 levels. But new research published in the journal Nature Climate Change in March revealed that humanity needs to make a similar-sized cut in emissions every two years for the next decade to meet the Paris targets. The study showed that 64 of the world’s countries cut their CO2 emissions in 2016–2019 compared to 2011– 2015, while 150 countries saw their emissions go up. These were largely lower income nations working to level up their respective economies. On balance, global CO2 emissions grew by an average of 210mn tonnes per year from the 2011–2015 period to the 2016–2019 period. While lockdown measures impacted the use of fossil fuels, the paper’s authors note that there was little impact on fossil-fuel based infrastructure. This means that a rebound in emissions is likely once confinement measures are relaxed. ‘Unless the COVID-19 recovery directs investments into climate-compatible infrastructure, emissions could well surpass those of 2019 within a year or two, and lock future emissions in for decades,’ says Robbie Andrew, a Senior Researcher at the CICERO Center for International Climate Research and co-author of the paper. Troublingly, the scientists also found that most COVID-19 recovery plans are in direct contradiction with their stated climate commitments. ‘Unless the COVID-19 recovery directs investments into climate-compatible infrastructure, emissions could well surpass those of 2019 within a year or two, and lock future emissions in for decades,’ says Andrew.
environmental prosperity.’ The UK fared particularly poorly in terms of the environmental impact of its recovery plans. The country was the third biggest spender as a proportion of its GDP, but just around one pound in every 10 was green. New road projects received around £27bn in government funding, and airlines got £1.8bn. In contrast, the much hyped 10-point plan for a ‘green industrial revolution’ saw just £4.6bn in funds allocated to it. Boris Johnson’s government has also been widely criticised for waving through a new coal mine in Cumbria before backtracking, as well as vowing to subsidise short-haul flights in the UK. The United States was found to have the smallest recovery package of any advanced economy as a proportion of its total GDP – largely due to decisions taken while Donald Trump was in office. However, around a quarter of this spending can be classified as green. Rival economy China is notably pursuing a recovery powered largely by fossil fuels, with significant investments in steel and cement and an expansion in coal mining. In addition, the US, Canada, Mexico, and Australia made investments supporting oil and gas in their own spending packages. It’s worth noting that only wealthy countries and the richest developing economies could devote large sums of public money to post-COVID stimulus measures. This is because many developing countries are not able to borrow on favourable terms, only further underscoring the importance of radical emissions cuts from the G20. With less than a year to go until COP26, the pressure has never been greater on governments to commit to addressing the climate challenge. While some advanced economies can boast about their low-carbon electricity investments, there remains much work to be done across other sectors. The dream of ‘building back better’ after coronavirus is fading – but the goal of keeping temperature rise to 2°C or under must not be allowed to. l
Energy World | April 2021 17
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OFFSHORE WIND
The making of a market
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hese days it seems pretty easy for the UK consumer to opt for a supplier of renewable electricity at an affordable price. They can choose a tariff from one of the established suppliers which guarantees that a proportion of their power will be part of that company’s growing renewables pot, or they can opt for one of the new kids on the block, Bulb, say, or Octopus Energy, which have made a virtue of being green from day one. The point is that all interested parties – from the latest round of would-be developers of offshore wind projects to the consumer who wants to go green for home electricity – have confidence in the market. Renewable energy is here to stay and, driven by a very public political commitment to net zero by 2050, it is grabbing an everlarger share of UK electricity generation. Climate change driver Successive UK governments have played a large part in creating what is now a robust renewable energy market. From a low base of around 2% of electricity generation in the early 1990s, renewables are now delivering over 45% and rising. The biggest driver to grow the market has been climate change and a UK commitment to reduce carbon emissions and hit that net zero target. Key developments towards this
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The UK’s success in offshore wind was no fluke. In fact, the sector benefitted from years of subsidies and government support. Nick Cottam looks at the origins of this critically important technology. goal have included the signing of the Kyoto Protocol in 1997 and the development of the Paris Agreement in 2015, under which 196 signatory countries agreed to limit global warming to well below 2°C above pre-industrial levels. Fossil fuels, we must accept, are on borrowed time. Fortunately for the UK, there has been a hurricane’s worth of offshore wind to harness – good for the climate but also a tantalising prospect for improving energy security. As politicians dither over next-generation nuclear in the face of cost and planning concerns, the UK has an opportunity to become the ‘Saudi Arabia of wind’ said Boris Johnson at the end of 2020. The commitment – part of the Prime Minister’s 10-point plan for a ‘green industrial revolution’ – is to raise offshore wind deployment to 40 GW by 2030. That means ensuring there is a framework in which wind and other forms of renewable energy can continue to grow and thrive. That framework has come about after successive governments sought to subsidise
The wind turbine blade factory in Hull has created around 1,000 jobs – from apprentices to skilled workers Photo: Green Port Hull
what was once a costly and immature technology. Developers hoping to test the water for offshore wind and other forms of renewable energy needed to be confident that there would be a demand for the electricity generated at a price that would make development viable. At the other end of the supply chain, consumers who made a significant capital investment in solar energy (for example) were given the carrot that they could sell any electricity they didn’t use into the grid at a market price. This, in turn, kept the capital cost of solar installations on the high side. Though this cost has started to come down as the Feed-in Tariff became less generous and was eventually phased out for new customers in March 2019. These days, says Rebecca Williams, Policy Director at the trade association RenewableUK: ‘it’s about how we can build enough renewables quickly enough to get us to net zero. If you look at how we can reduce carbon from the rest of the economy, then you have to look at the way we produce energy first.’ Hence a regime of government subsidies designed in the UK at least to drive efficiencies and ultimately, it is argued, encourage the market to stand on its own two feet. Avoiding greenwash This dash for renewables has not been without its wobbles and is still vulnerable to greenwash, according to renewable power provider Good Energy. In a new report the company accuses some of its competitors of misleading consumers by offering so called ‘green tariffs’, which have little or no environmental benefit. According to Good Energy, no tariff should be marked as 100% renewable unless the supplier is buying that power from a renewable generator. The company is urging the regulator Ofgem to close a loophole which has allowed many suppliers to mislead millions of consumers into joining ‘100% renewable’ tariffs while providing close to zero support for renewable generators in the UK. Instead of buying or generating renewable power, suppliers can buy second-
Energy transition
hand certificates for as little as 10p, claims the company. With its own wind and solar farms at six UK locations, Good Energy believes it is in a good position to take the moral high ground. ‘Most people would expect a supplier claiming to offer green power to actually be buying green power. However, often that is not the case at all,’ notes the company’s Senior Policy Manager, Dr Tom Steward. Environmental claims, urges the company, should be independently audited to denote what qualifies as additionality with a clear threshold for compliance. Going back to the 1990s, the UK government faced the complex task of trying to promote the development of renewable energy in what had become a deregulated electricity industry. The solution was the introduction of the Non-Fossil Fuel Obligation (NFFO), originally designed to support nuclear power in the face of cheaper coal. But the policy was, in fact, remarkably successful in stimulating the rapid growth of renewable electricity, including hydro, wind power, biomass, landfill gas and sewage waste. NFFO put the electricity companies under an obligation to purchase what was an increasing quantity of non-fossil power. If this power cost more than fossil
power, the difference would be made up by the taxation of coal-derived electricity. In other words, you penalise carbonintensive coal to subsidise the growth of clean energy. Rapidly falling costs Between 1990 and 1999, the government placed five successive ‘orders’ for non-fossil electricity, effectively underpinning the supply side of the market while also ensuring there was growing demand built into the system. Is this a straight subsidy or the creation of a framework to kickstart the market and drive down costs and prices? RenewableUK 's Rebecca Williams prefers to call it a framework which has helped to meet targets and indeed to bring down the cost of capital. ‘The story of the renewable industry over the last 10 years has been one of rapidly falling costs and rising expectations,’ she says. ‘This is the cheapest way to build the volumes we need to meet net zero.’ Others agree with her. ‘Historically, the first major renewable energy implementation policies in Europe were fixed higher payments to generators,’ notes Jack Ihle on behalf of the International Energy Agency. ‘The UK’s NFFO became the most visible alternative to fixed higher payments, and since its
In recent years, for example, the cost of offshore wind projects has fallen dramatically and at the last auction in 2019, the lowest price awarded was around 30% lower than in 2017
BP recently made a huge bet on developing wind farms in the Irish Sea, which is currently home to the world’s largest operational wind farm. Photo: Ørsted
implementation, an active discussion has taken place about which system produces renewables most cheaply.’ The downside of NFFO, arguably, is it tended to favour the major players rather than smaller independents, which were less well placed to compete in the auction process and drive down costs. In a competitive UK market, developers had to propose a bid price lower than competitors to win contracts. This was not the case in other European countries – eg Germany and Denmark – operating a system of fixed higher payments. This is one important reason for falling development costs in the UK – for example offshore wind farms – as developers reaped the benefits of economies of scale and more established processes. By the completion of NFFO-5 at the end of the 1990s, the average price of renewable power was down close to the electricity pool price of 2.67p per kWh. Scaling up In 2002, the NFFO was replaced by a new Renewable Obligation (RO) scheme. This programme was designed to underpin more largescale generation of renewable energy and encourage suppliers to purchase Renewable Obligation Certificates (ROCs) as part of the requirement for a growing proportion of their energy to come from renewable sources. Again, government was part of the process by ensuring a market for renewable energy at a guaranteed price over a period of time. Having further primed the market for renewable energy, the RO scheme closed to all new generating capacity in March 2017, the intention being to encourage more independence and self-sufficiency in a maturing market. Has this happened? Indeed, prices have continued to fall, and the UK has become the world’s largest offshore wind market. Abundant resources have been the catalyst for large scale development and government intervention has undoubtedly helped to spawn an industry, not only in terms of renewable energy capacity, but also in the support structures which have led to job creation and economic growth in various parts of the country. Catalyst for growth One example is the wind turbine blade factory in Hull which has had a measurable impact, Energy World | April 2021 19
Energy transition
creating around 1,000 jobs, from apprentices to skilled workers. The statistics speak for themselves: 10% improvement in economic activity over the last five years; 13% improvement in local employment and 30% growth in local enterprises. Research by Hull University suggests that for every £1 of Siemens Gamesa renewable energy investment, an extra 8p will be generated in the disposable income of the local economy. Add to this a nearly 60% reduction in local unemployment benefit claimants, and it’s not difficult to see why governments have been trying to strike a balance between comforting guarantees on demand and returns and a hard-headed auction process. At the end of this year, we can expect another auction as renewable power generators bid under the Contracts for Difference (CfD) scheme, which replaced ROs. The scheme means that qualifying projects are guaranteed a minimum price at which they can sell electricity, and thanks to economies of scale, the price is still coming down. In recent years, for example, the cost of offshore wind projects has fallen dramatically and at the last
auction in 2019, the lowest price awarded was around 30% lower than in 2017. If the wholesale power price rises above the CfD strike price, then the power generators must pay back the extra cash to government. The evidence is compelling, argue supporters of the scheme: you drive down costs by encouraging competition and innovation and this supports the long-term development of the market, helping to boost investor confidence.
As politicians dither over next-generation nuclear in the face of cost and planning concerns, the UK has an opportunity to become the ‘Saudi Arabia of wind’
Doubling the subsidy ‘The CfD auction has reduced the cost of capital for projects because of government backing and consumers are getting a better deal as a result,’ says Williams. ‘Investors want clarity and the more clarity you have for renewable energy, the lower the cost of capital.’ To this end, the government will also include onshore wind and solar in the coming auction, doubling its support for up to 12 GW of new renewable energy. The auction will also include support for less established technologies, including floating offshore wind farms and tidal stream projects. ‘Onshore wind
and solar are now eligible again,’ adds Williams, ‘because they’re the cheapest technologies. The challenge for the early stage technologies is to progress them though to commercialisation.’ Whatever the outcome of the next auction, offshore wind will remain by far the largest contributor to the UK’s renewable energy mix and indeed its net zero target. The latest crown estate auction for seabed licenses to develop offshore wind projects – its first in a decade – will generate record-breaking returns from energy companies. Among them, the oil major BP and its partner, the German utility EnBW, will pay £462mn for the option to develop two windfarms in the Irish Sea. One thing is certain: in paying out these kind of sums both parties are confident that this particular form of renewable energy has a profitable and almost certainly, a subsidy-free, future. l
6 October 2021, online
This conference will provide insight into how businesses and countries are making net zero into a reality.
Topics explored: •
What will a net zero energy system look like?
•
Demand in a net zero future
•
Demand Deep dive: Let’s hear from the consumers
•
Energy supply in a net zero future
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An integrated energy system approach to decarbonisation
www.energy-inst.org/powering-net-zero Powering net zero.indd 1
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Represent 11/02/2021 13:42:00
Energy transition
PHOTOVOLTAICS
Israel’s solar expansion
Israel is realising the benefits of having a distributed grid powered by plentiful renewables. But the country must also contend with a lack of available land as it decarbonises. Joe Charlaff, in Jerusalem, and Keith Nuthall report.
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he government of Israel is pushing ahead with an ambitious plan to expand the country’s solar power output, awarding two sets of tenders involving 840 MW of generating power in the past 12 months, as well as requesting bids for a huge single solar power plant in the Negev Desert for 300 MW. This plant – which may also offer energy storage – would be located at Dimona, 35 km west of the Dead Sea. The government has set aside a 2.7mn m2 site for the project and tender may be awarded this year. The new plants would follow the award last year of two major sets of contracts to develop solar power in the country. First, in July 2020, a 168 MW tender award was announced by the Israel Electricity Authority, with three Israel-based energy companies – Doral Renewable Energy Resources Group, Enlight Renewable Energy and Ellomay Capital – scoring contracts. These were to develop 100 MW, 48 MW and 20 MW of capacity respectively, which the companies must bring online by 2022, feeding
24 Energy World | April 2021
the national grid. A second, and larger, award was announced in December 2020 and involved contracts to supply a total of 609 MW in solar energy, as well as 2.4 GWh of energy storage
Solar power plant at Tze’elim, the Negev desert, Israel Photo: Albatross
Energy independence The series of projects reflect a change in Israel’s government policy and attitudes toward energy independence. The country has previously been dependent on energy imports and is now adding renewables to its domestic production roster, as well as exploiting the extensive gas fields off its Mediterranean coast. In October, the government approved targets proposed by energy minister Dr Yuval Steinitz to produce 30% of the country’s electricity from renewables by 2030, growing its solar energy output by 15 GW. These 2030 targets will be reviewed and updated by December 2024. The government has also fixed an intermediate target of 20% of electricity being produced from renewable sources by December 2025. The plan foresees $24bn
being invested to achieve these goals. The Dimona plant tender encompasses requirements for integrating energy storage in the form of batteries. Some 27 consortia from several countries submitted applications in the pre-screening process, signalling significant interest in the project. Dr Gideon Friedmann, Chief Scientist at the Ministry of Energy, told Energy World that the solar energy expansion was firstly designed to reduce pollution in general, including greenhouse gas emissions. ‘The second most important reason is energy diversity and security,’ he said – ensuring Israel does not rely on one energy source, such as its growing gas sector, especially as the country phases out coal usage. ‘Solar is a distributed source, and its generation can emanate from many sites, and is not as sensitive as generation from a central source,’ Friedmann explained. ‘If Israel was in a military conflict and a power plant took a hit, 400 to 600 MW could be lost.’ As the energy unit costs of solar continue to fall, cost is another factor, he stressed. Moreover, Israel’s government has encouraged private enterprise to invest in solar, which will also improve the diversity of energy sources.
Energy transition
Siting issues Currently, Policymakers are intent on removing bureaucratic and approximately infrastructure obstacles to bringing 8% of Israel’s private money into the sector. electricity is One way this can be achieved is from solar, 65% by enabling land to be allocated to solar farms, which require large is from natural tracts of this small country. As gas and 27% is well as persuading farms to install from coal (and solar panels where they can, the falling) government is supporting the installation of roof-top panels. ‘With local municipalities we issued a guaranteed loan plan with the help of a national lottery company which provides funding schemes for installation of PV on the rooftops,’ Friedmann added. ‘There has been a lot of activity on the municipal level.’ The Chief Scientist said changes would have to be made to the electricity grid to take better advantage of solar power. This includes ensuring power can be transmitted from more remote areas, such as the Negev, to the main population areas in the centre of the country. ‘Upgrading [the grid] is a challenge because there is no more room for building new power lines,’ said Friedmann. Instead, the existing grid will be upgraded to increase capacity, through high-voltage lines. Underground transmission will also increase, given above-ground constraints. In addition, improved storage capacity is required ‘and this will reduce the grid load,’ according to Friedmann. Smart grids, managed automatically, will also make distribution more efficient. As for Solar power panels on roofs who will deliver these projects: in Tel Aviv, Israel ‘The market is competitive - the Photo: Beko bids are open to everyone with low requirements for participating in these bids. We are trying to create a market for as many players as possible and where the prices are fair,’ he said. Tamir Cohen, CEO of Israel real estate company Shikun & Binui, which has a keen interest in solar power, thinks solar energy is Israel’s key renewable: ‘Wind energy in Israel is limited due to the geographical situation – it’s small country with a lack of wind,’ he noted, with an obvious lack of freshwater courses delivering hydro. Dr Amit Mor, CEO and CoFounder of Eco Energy, a financial and strategic consulting service, based in Herzliya, northern Tel Aviv, stressed that with the 90% decrease in the cost of solar panels and lithium-ion batteries in the past decade, solar power is green and cheap. This is especially true in sunny Israel: ‘In our region, solar
radiation is very high. There are more than 300 sunny days in the year, thus shifting to renewables makes sense in terms of environmental considerations and cost.’ Room for growth There is plenty of room for growth. Currently, approximately 8% of Israel’s electricity is from solar, 65% is from natural gas and 27% is from coal (and falling). The government concluded that, by 2025, Israel Electric Corporation will phase out coal for electricity generation. According to its forecast, by 2026 85% of electricity is going to be produced by gas, and 15% will be produced by renewable energy – chiefly solar. Mor does not believe that the government target of 30% by 2030 will be achieved ‘but it will be close'. By 2040, he thinks more than 40% of electricity will be produced by solar, increasing to 60% by 2050. Achieving this will not be easy, especially given the relative scarcity of land in Israel. Moreover, on the Negev, which is lightly populated, much of the land is ‘hilly and not suitable for the producing solar energy’, said Mor. Significant portions are also controlled by the Ministry of Defence for military training. To achieve 30% of electricity generation (as projected by 2030), around 1.5% of Israel’s land might have to be covered by solar panels, according to Mor. This shows why it’s key to persuade food farmers to become ‘solar farmers’ and focus on future technologies which might include covering outside walls of buildings with panels,
along with increasing electrical efficiency. Gal Shofrony, Head of the renewable energy section of the country’s Electricity Authority, said the government had thought hard about its pro-solar strategy, stressing that wind turbines would be unpopular in highly urbanised Israel. The country needs a secure and diverse power generating system, he stressed. One reason is that the population is growing. Israel is an anomaly demographically – its population is expected to double in 25 years, with women having an average of 3.1 children, compared to the average of 1.7 children across the other developed countries. The economy is also growing steadily (expanding 3.5% before COVID-19 hit last year), thereby increasing electricity demand. Another problem is that Israel is not connected to neighbouring countries’ grids for diplomatic reasons. Storage is a key factor Shofrony stressed that significant effort is being expended so that storage releases power on cloudy days and during the evening, with a recent tender delivering 609 MW in stored power. The government wants to ensure Israel has standalone storage systems not dedicated to any particular power source by the end of 2021, he said. The government is also looking at sophisticated cost and revenue systems, where power producers help fund grid costs considering the location of solar plants – so that more remote plants may pay more for access to the grid. ‘Storage is a key factor as it maximises the existing grid. It is also important for the grid operator having storage sites immediately accessible,’ emphasised Shofrony. The government has tried hard to shift demand for power to hours when usage is comparatively light. Ultimately, Israel – a country that is 11 times smaller than the UK has to assign land to solar power, offering permits and dealing with complex planning issues associated with buffer zones for urban areas and growing demand for housing. The country is known for its innovation, however. One might be installing panels above (rather than on) farmland so that farmers can generate power without harming their power yields. If anywhere can develop such energy technology, it is probably hi-tech Israel – and the rest of the world will be watching. l Energy World | April 2021 25
Energy Institute
Time for change A little shy of three decades ago I fell into the world of energy by accident – it was either that or the press office of a very famous hairdresser (those who know me well will agree that wasn’t for me). So I took the plunge to find out what a professional body did and learn about energy. That journey began in March 1993 at the Institute of Energy, when I arrived in a rather stuffy office covered in oak panelled walls with green leather inlay on the meeting tables. I cut my teeth on events and marketing, wrote bids for new projects to generate services and revenue, delivered energy efficiency training which took me as far afield as Zimbabwe, became a speaker for the UK government’s Energy Efficiency Good Practice Programme (along with some well-known Fellows who know who they are) and travelled the UK, ultimately becoming a chief executive at the age of 27. I led that organisation for almost four years until my next CEO challenge beckoned. This was for a larger professional body – the Institute of Petroleum. Arriving there in 2002, I was given a simple objective – ‘sink or swim, and you have six months’. What lay behind that simple instruction was to create and deliver a new future for the organisation I had just arrived at. Simple, I thought – let’s bring the two worlds I had occupied in the past decade together for a better future – but only if almost everyone invested in both also thought this a good idea and in the public interest. So, on 1 July 2003, the Energy Institute was born, incorporated with a new Royal Charter and an overwhelming mandate from the membership of both organisations to make it successful. The EI has been working in some form on its mission for 107 years now, delivering knowledge, skills and good practice to those who can help create a more secure, affordable and sustainable energy system. From the most eminent and experienced in their field to the new and hungry asking why and challenging our thinking, the EI’s richness and value has stood the test of time and will continue to do so because all these voices count. It has been on its own journey 28 Energy World | April 2021
As she bids a fond farewell to the organisation she helped to create, Energy Institute CEO Louise Kingham OBE FEI shares some reflections. from a UK body to one with members in 100 countries – where our good practice guidance is downloaded somewhere in the world every 18 minutes and our convening power is unique, impartial and always based on evidence. But now, after 22 years at the helm, I’m about to move on to a new challenge. In the spirit of looking back to look forward, I share some reflections with you. Always ask a professional There is a symbiotic relationship between the EI and its members. The Institute is nothing without them and I like to think they are more because of the Institute. Members’ day jobs keep the electrons and molecules flowing, supporting our way of life in ever smarter ways, and then they transfer that knowledge through their membership and volunteering their expertise across all that we do. The largest of this volunteer community supports our good practice endeavour. Energy can involve hazardous situations and ensuring the health, safety and wellbeing of our people and protection of the environment are paramount. The EI has spent
'With constant effort, the EI raises the bar of operational excellence in the energy sector.'
decades, in fact much of its existence, championing and originating industry good practice which helps to ensure our energy workforce returns home safely to their families. This work quite literally saves lives. Be it guidance to avoid contamination of aviation fuel, specifications and test methods to guide labs or the Toolbox app to keep workers safe in front-line operations with guidance at their fingertips, it all matters. And, with constant effort, we raise the bar of operational excellence in the energy sector. Devastatingly though, accidents do happen – think Buncefield, Fukushima and Deepwater Horizon. The key is to learn from them and share those lessons widely so that they might never be experienced again. I have witnessed our members in action, mobilised to do just that and been proud that the EI has played its part. Women should be seen and heard But it wasn’t all welcoming and supportive from the outset – being a woman in a man’s world, worse still not an engineer in an engineer’s world! I’m pleased to say one early piece of advice I received back in 1993 – and that I’ve studiously ignored ever since – was that I would 'be seen and not heard’ in service of the organisation. Contrast that with the far wiser and cleverer man who saw something in me and took a big personal risk just six years later to appoint me CEO and let me shine so others, including me, could see that something too. For some years I just thought: ‘Well, this is the world of work, it is how it is.’ It took me too long to cotton on that, actually, this wasn’t right and we needed to speak up so women’s voices, and those of other minorities, could be more widely heard in the workplace. After all, there is plenty of evidence which says businesses are far better for it. The EI has one of the most diverse and inclusive staff teams and trustee boards of any professional engineering-based institute. The EI is also proud to host the POWERful Women initiative, for which I have been a board member and ambassador, promoting and supporting the progression of women across the
Energy Institute
energy sector. It now has a network of several thousand women looking for their next opportunity to progress their careers all the way to the energy sector’s board rooms. We have made progress, but there is still much to do and it is beholden on all of us as leaders to do more to accelerate change. Our sector needs to embrace ALL of the talent we need in a fully inclusive way – increasing participation from all underrepresented communities in our workplaces for better outcomes. I am particularly proud over the past three years to have worked alongside leading CEOs in the Energy Leaders’ Coalition that understand this and want to make it happen. There’s a long way to go, but when I sit in meeting rooms (be they largely virtual for now) I am in much more diverse company among my peers than I was only five years ago. And, thankfully, it looks dramatically different to when I received that early advice and was so often, for many years afterwards, the only woman in the room.
'There is a symbiotic relationship between the EI and its members – the Institute is nothing without them and I like to think they are more because of the Institute.'
Our expertise needs to be in the thick of it The twists and turns of policy shifts I’ve seen along the way have been both exciting and frustrating. They have convinced me of the importance of getting energy professionals in there, head above the parapet, bringing evidence and expertise to bear for the best outcomes. There have been great successes, of course, such as the
unsung one in offshore wind for the UK and solar globally, but equally a school report which says ‘must try harder, much harder’ on energy efficiency everywhere. EI Fellows have been contributing to growing the knowledge and evidence base for making vital decisions with lasting impacts on our energy system. From offering their expertise at private ministerial meetings to serving as members of the UK’s Climate Change Committee and similar advisory bodies elsewhere in the world, our Fellows quietly and unassumingly share their insight for public good. I even recall hearing an account of market reforms to the UK electricity system being designed by two Fellows over supper on a napkin! This is why our annual Energy Barometer has such an important role, and it’s why I show up to help induct new entrant civil servants with the EI’s intensive introduction to the fundamentals of the energy system. Remember there’s one world and one energy Energy is fundamentally one thing – meeting humanity’s needs, on one planet, in a global market. That’s why merging the EI’s precursor organisations mattered, coming as it did just as people were talking about energy companies, not oil and gas companies, and ministers were starting to gear up to create policies for a low carbon economy. We were in the zeitgeist, a microcosm of our industry, keeping up with and trying to
prepare for changes happening across its sectors. The Climate Change Act in the UK and then the Paris Agreement sealed it. It’s why I have been determined to make the EI, through its magazines, IP Week and other key activities, the place to come to get the widest possible lens on the interconnected world of energy. And now, as its time for a change, it’s why I am proud to be moving to BP, a progressive company that is integrating the energy solutions of the future, without which global society’s needs won’t be met. I would not have moved for any other reason. Sign off I entered the world of energy almost three decades ago, wishing at the time that more people would feel able and willing to better understand, manage and value energy. It underpins human progress to date but also the great challenge humanity faces in curbing its impacts on the natural world of which we are temporary guardians. Today has never been a more exciting and important time to be on this journey to deliver a low carbon energy system that can put the world in better balance. As a Fellow myself and your CEO, I have been honoured and proud to have played my part in shaping the EI’s journey so far. The EI is well placed and hungry to do more – which is fortunate, because there is much to do and time is of the essence. ●
An enduring message
The focus of the Energy Institute is not so different now as it was back in 2003, when I first wrote about the newly formed Institute in the July issue of Energy World, Petroleum Review’s sister publication. In the magazine I wrote: ‘Looking to the balance of activities at any time is a reflection on society’s current and future energy needs. Oil and gas are major energy resources society requires today and for the foreseeable future. In 30 years’ time the world’s requirements and access to resources may be different and we are already seeing growing interest among members in renewables, particularly wind and solar energy, and the application of fuel cell technologies. Equally, the views of energy professionals would vary significantly if asked today what the energy system will look like in 2050. The El’s role is to help members explore all the fuel and energy options and possible solutions to society’s requirements now and in the future.’ ●
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