Edition 12 | November 2013 | Retail price € 5,50
Energy for All
What’s Going on in the World?
Special Edition Energy Convention 2013
NAM - HOMA BV - Plugwise - enie.nl - Ballast Nedam - FrieslandCampina Cofely-GDF SUEZ - Phase to Phase - Shell - GasTerra
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f the entire history of the Earth were condensed into just one year, the industrial revolution would start on December 31st, at only two seconds before midnight. Suddenly, everything on Earth would begin to change at an unprecedented speed, and in the last milliseconds of the year, we would reach the decades that you and I have lived in today. Humanity has achieved enormous progress in societal development, technology and life expectancy. But these successes have come at enormous cost to the environment and have increased the risk of ecological disasters that threaten much of the accomplished progress. With the assumption of a one-year life span, it is highly unlikely that the planet as we know it would remain as we know it in the next second. Perhaps the biggest of all ecological threats we are facing is climate change. The atmosphere and oceans have warmed up, the amounts of snow and ice have diminished, sea levels have risen and the concentration of greenhouse gases has increased. The temperature rise should be kept under 2 degrees centigrade this century in order to avert the worst climate impacts. This could still be possible, but much needs to be done, and the clock is ticking. At this point, it is crucial that a universal, legally-binding global climate agreement is reached among all countries, by 2015. Energy is a key issue when discussing climate challenges. The worst effects of climate change can be avoided if we can make a transition to a sustainable and more inclusive global economy. Such an economy should combine access to modern sources of energy for all people with improvement of energy efficiency and increased use of renewables in the energy mix. This is the essence of the “Sustainable Energy for All” initiative, in the form of a privatepublic partnership, which was launched two years ago by the United Nations Secretary-General Ban Ki-moon. This edition of NRG Magazine is dedicated to this goal, focusing on local as well as global solutions for ensuring that the world’s growing population will have access to sustainable energy.
Alexander Verbeek Strategic Policy Advisor Global Issues Climate, Energy, Environment and Water Department, Ministry of Foreign Affairs Photo Aad Meijer
This year NRG Magazine is honoured to have all its editions introduced by representatives of the government of the Netherlands.
This goal can only be achieved when energy issues are tackled within a nexus approach, in which energy is integrated along with food and water in the overall context of climate change. In several regions of the world access to energy is hampered by lack of water, in other regions access to water is hampered by lack of energy. The forecast of a growing and wealthier world population combined with the anticipated negative effects of climate change will put increased strain on water resources in many countries, with serious implications for food production. In 2013, the World Economic Forum rated water supply crisis as the second in the top five risks that have the highest impact on the planet if they were to materialize. Additionally, water supply crisis is on the list of top five most likely risks. In the Netherlands’ policy, as well as in the policies of several other EU countries, the nexus approach is becoming increasingly important. A new department has been established in the Ministry of Foreign Affairs, where the GPGs with regard to sustainability are brought together: water, food security, climate, energy and resources. As decisions in one resource area can lead to trade-offs or co-benefits in other areas, experts responsible for these topics are closely working together and the geopolitical aspects of these topics receive increasingly more attention. In this edition of NRG Magazine, the accent is put on translating how the UN goal of “Sustainable Energy for All” set for 2030 can be diced and analyzed for different areas. It takes a holistic approach on all these issues and emphasizes how energy for all can be achieved, through solutions in the form of policies, technology, water, renewable energy and sustainable cities.
Alexander Verbeek
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Magazine Circulation 7.500 per edition Circulation distribution Partners of Energy Academy Europe Partners of Energy Valley Partners of the International NRG Battle Partners of Kivi Niria University of Groningen Hanze University of Applied Sciences TU Delft TU Eindhoven TU Twente Companies in the energy sector Municipalities in the north of the Netherlands Province of Groningen NRG Magazine is published 4 times a year. Publisher TTA Publishers P.O. Box 1746 9701 BS Groningen The Netherlands Kwinkenplein 8-4 9712 GZ Groningen Tel.: +31 50 317 14 75 Fax.: +31 50 317 14 72 editor@nrgmagazine.nl www.nrgmagazine.nl www.twitter.com/thenrgbattle www.facebook.com/nrgbattle Editor-in-Chief Luminita Stoica Editors Cristina Huré Mariia Stolyga Assistant Editor Theresa Scheeben Design Giscard van Uytrecht Sales Rob Hogenelst, Director Sales Marius Nugteren, Sales Tel: +31 50 317 14 70 sales@nrgmagazine.nl
Dear Reader, All time high CO2 emissions concentrations coupled with large difficulties of establishing a global carbon trading system, extreme weather, 1.3 billion people without access to electricity, pressing need for off-grid energy solutions and scenarios about how this century is going to play out…humanity has a lot on its plate, as does the energy system. Nevertheless, as the pioneering American aviator Anne Morrow Lindbergh once said: “The wave of the future is coming and there is no fighting it.” Today, energy looks more fast-paced and innovative than ever before, hence more promising as well. In spite of all the challenges, government, companies and individuals are making noticeable progress in bringing humanity to a higher level of well-being. Energy is indispensable in this advancement, and energy for all the people on the planet, even more so. This twelfth edition of NRG Magazine is ready to end this year excited at the prospect of humanity’s energy future. The main theme of this edition is Energy for All – debating local and global solutions which could ensure that, in the long run, the world’s growing population will have access to sustainable energy. First, NRG Magazine will take you on a journey through technology, policies, water, renewables and sustainable cities to find out what’s going on in the world in terms of developments in the energy sector and related fields (pages 8-17). Then, this edition dives into solar energy, both exemplifying remote and affordable solutions – Gerard van Baar, page 18 – as well as through a sound and balanced debate between Ramez Naam and Prof. Anton J.M. Schoot Uiterkmap around the question: Is solar energy the key to providing “Sustainable energy for all”? Next, Ieda Gomes gives an overview of the evolution, challenges and outlook of the global gas markets in the Expert Section (pages 24-25). Furthermore, this magazine is an Energy Convention 2013 special edition. Some of the world’s top experts in energy are keynote speakers at this year’s convention. You can read about the event and its expert line-up on pages 26-31. The next pages (31-41) feature a wave of innovators in virtual power plants (HOMA), energy metering and control systems (Plugwise and enie.nl), eco-friendly cooling water systems (Ballast Nedam), impressive energy evaporators and spray driers in the dairy industry (FrieslandCampina), proficiency in project management in energy and ICT (Cofely), advanced software for keeping energy infrastructure up-to-date (Phase to Phase) and scenarios for the future of the global energy system (Shell). Moreover, Ambassador Wu Jianmin joins this edition’s “Back to the future” section and shares how his native country China tackles energy cooperation, lifting masses from poverty and extreme pollution on pages 42-43. No edition is complete without NRG Facts or Fiction, written again with the revolutionary ink-efficient typeface from Ecofont and telling the story of turning trash into electricity in an environmentallyfriendly manner (pages 44-45). Equally important, this edition’s Talents in the Spotlight (pages 48-53) share the beginning of their professional path in energy, and, on pages 54-55, NRG Battle invites you to its 2013 finals at the Energy Convention. Enjoy reading about energy.
Luminita Stoica
Printer Veldhuis Media Photography Giscard van Uytrecht Cover photo Fotolia
Contact
For subscriptions to NRG Magazine or ideas for future editions of the magazine, please contact: editor@nrgmagazine.nl No part of this publication may be copied or reproduced without written permission of the publisher. The publisher and authors do not accept liability for damages of any nature whatsoever, resulting from actions and decisions based on the information in this magazine. This issue is produced with the utmost care.
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INDEX 8. Energy for All 14. Hydropower: flexibility in the global energy mix
18. Column by Gerard van Baar Here comes the sun!
19. Rational Middle
8.
Is solar energy the key to providing “Sustainable Energy for All”?
24. Expert Section with
Ieda Gomes: The world’s gas markets
26. Energy Convetion powered by Energy Academy Europe
34. Ballast Nedam
Revolution in Cooling Water Systems
40. Shell’s New Lens Scenarios
44.
50.
Energy for All What’s Going on in the
World? 8 | NRG Magazine Edition 12
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nergy is an absolute prerequisite to a world with high living standards and economic wealth, where little or no harm is done to the environment. In short, an ideal world has sustainable energy for all its citizens. At the opening of the General Assembly in 2011, the United Nations’ Secretary-General Ban Kimoon launched an initiative, which changed our very understanding of sustainability and outlined the development path for the years to come. Called “Sustainable Energy for All,” the initiative focuses on three main objectives to be achieved by 2030: ensuring universal access to modern energy sources, doubling the global rate of improvement in energy efficiency and doubling the share of renewable energy in the global energy mix (“A Global Action Agenda,” April 2012). “Development is not possible without energy, and sustainable development is not possible without sustainable energy,” remarked Bam Ki-moon. The three goals, should they be achieved, will transform the global energy system, along with the lives of around 7.2 billion individuals, and counting. Fortunately, the number of governments and industry players that are making an effort to contribute to achieving the goals of the initiative is on a steady rise. Although, in order to arrive at the era of Sustainable Energy for All, many more efforts are needed to address the ubiquitous challenges of the energy sector, as we currently know it. “Supplying modern energy services to the billions who now lack electricity and clean fuels is not just a moral imperative but a unique business opportunity,” said Chad Holliday and Kandeh Yumkella, Co-Chairs of the High-level Group on Sustainable Energy for All. Moreover, both sustainability and energy for all are enabled by collaboration. In this sense, organizations that bring together governments and businesses, researchers and entrepreneurs, policy-makers and market leaders, are crucial in the future of energy. Such organizations include the International Energy Agency, the World Energy Council, the International Renewable Energy Agency and the World Energy Forum. The World Energy Forum (WEF) for example is aiming to provide an international platform for transparent and unbiased discussion for world energy leaders. Dr. Harold Hyunsuk Oh, President of WEF explains: “The World Energy Forum wants to assist a new global energy civilization that will achieve energy for all. It promotes and facilitates technological advancement, as well as the political will of all nations and peoples to achieve a more just allocation of the Earth’s resources.” But how can such a vision translate into reality? Sergio Fernández de Córdova, Co-Chairman of the World Energy Forum’s Next Generation Energy Leaders, shares his assessment on the role that young talents will play in the future transformation of the energy system: “WEF brings together governmental officials, innovators and entrepreneurs in the same place. Through Next Generation Energy Leaders, the world’s best talents and young professionals are able to communicate with policy-makers and experienced top professionals from around the world. Talents and young professionals have a fresh view on energy issues and such a meeting enables knowledge sharing, innovation and solutions for the energy system.” In this edition of NRG Magazine, the focus is on “Energy for All,” which could be the intermediary step towards Sustainable Energy for All. Renewables like solar, wind, hydro, geothermal, biomass and ocean thermal conversion energy are to be exploited and expanded in order to achieve sustainability in the global energy sector. However, in both policy-making and business, there are experts debating on how doable it is for renewables to provide energy for all in the next decades. Issues related to intermittency, lack of electricity networks that can handle increasing loads and costly storage are against renewables. Low or no carbon emissions, wide availability and possibilities for off-grid solutions are championing renewables, as are Joan MacNaughton, Executive Chair of the World Energy Council’s Energy Trilemma (pages 12-13) and Frank Wouters, Deputy-Director General IRENA (pages 14-15) in the articles that follow. Renewables are very important, but they are certainly not the only things that need focus, green technology, creating knowledge platforms for sharing sustainable practices, healthy and balanced policies, clear investments and numerous other issues need to be tackled in this direction, as illustrated by Ellen Carberry, co-founder and Managing Director of The China Greentech Initiative (pages 10-11) and Cristiana Fragola, C40’s Europe Regional Director (pages 16-17). As Ellen Carberry mentions in the next article, when referring to solving the problems the energy sector encounters, “at the end of the day, it’s not about one particular technology and its use at one specific point”. NRG Magazine agrees that to bring energy for all and to make the global energy system sustainable, a complex approach needs to tackle numerous areas in the same time frame. This is why the next pages provide a brief analysis of how energy for all could be achieved from the perspective of technology, water, policy, renewables and sustainable cities. When looking at the outlook of energy for all, what’s going on in the world?
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what’s going on in the world: technology
China has achieved stunning economic and industrial growth over a spectacularly short amount of time. In less than 30 years, the country has evolved into a full-fledged industrial power, with its middle class and living standards increasing slowly but steadily. However, these changes have taken place at the expense of the country’s environment and health. As resources become increasingly scarce and pollution levels persist, Chinese authorities and businesses are challenged with a critical question: What is the best manner of bringing China on the sustainability path?
Ellen Carberry, co-founder and Managing Director of The China Greentech Initiative Photo courtesy of The China Greentech Initiative
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Could China lead global sustainable development? T
he China Greentech Initiative appeared as a consequence of two major trends occurring in the country. First, in the 2000s a broad range of green technologies started to appear, slowly transforming China into one of the biggest markets for adopting and developing such technologies. The capacity of the newlyborn market allowed not only meeting domestic needs, but also enabled export. The founders of The China Greentech Initiative (CGTI) shrewdly predicted the potential of the industry in the making. “When we say greentech, we try to give a simple name to a whole range of products and technologies. 2008 was the year we first developed a map of China’s greentech market across the value chain of energy, water and waste,” explains Ellen Carberry, co-founder and Managing Director of The China Greentech Initiative. CGTI fosters the development, financing and deployment of new greentech solutions, as it brings together more than a hundred businesses of all scales, both Chinese and international. In fact, CGTI is a business acceleration platform, serving commercial actors who are willing to do businesses associated with greentech in China. In the platform, these actors are given trustworthy knowledge, so they can make decisions and establish relationships. “We think that China will be able to develop, produce and sell greentech solutions that would be more affordable on the global market,” says Ms Carberry. The Chinese approach to sustainability has the potential to affect the rest of the world. The country is the biggest buyer and generator of coal and thermal power on the planet, but also the world’s largest emitter of polluting gases. Furthermore, China’s government is planning to urbanize another 300 million people in the coming 15-20 years. The transition from rural to urban will cause a drastic increase in the use of energy (fourfold) and water (sevenfold) for all these individuals, aggravating the already existing problems of pollution and scarcity of resources. Nonetheless, the Chinese government is now trying to shift to a different economic plan, encouraging a more comprehensive consumption model and taking into account the existence of a growing middle class. “People will not quit spending, but the pattern of their spending will
shift from products to services. They will then opt for investing in education or healthcare, rather than in another car,” remarks Ms Carberry. Thus, resource consumption would decrease and the economic growth could be balanced with environmental awareness. In this respect, advanced technology can significantly facilitate this process, as it helps mitigate the adverse environmental effects of the development. “The China Greentech Report,” produced annually by CGTI, has earned the company the reputation of authority on the development of China’s greentech market. The report does not only provide valid advice and strategy for China’s sustainability pursuit through greentech, but stands as a valid illustration of the power of thoroughly assessing the energy chain of production, from resources to waste, of each country. Such an assessment cannot only pinpoint areas that need improvement and connect them to available technologies and businesses on the market, but it can also emphasize the right direction for investments and governmental efforts. Sustainability cannot be pursued without a clear analysis of the situation in each country.
“To really change the way we generate, distribute and use energy and water, the whole system has to change.” The first version of The China Greentech Report was published in 2009 and contained a greentech map of China. That map covered 11 different sectors and 30 sub-segments, with everything from conventional to renewable sources, as well as water, waste and agriculture. It also included an account of more than 300 technologies that could be
deployed across the sectors, which were later narrowed to 125 most relevant to the Chinese green technology market, estimated at 1.3 trillion renminbi (circa 122 billion euro) by 2013-2014. The latest report (2013) highlights that the changes in the way countries generate and use energy or water should take place at the system’s level. The report identifies eight points that need to be addressed for industries to change efficiently and for collaborative ecosystems to develop. These include alignment of economic goals with environmental incentives, adoption of win-win business models and measurement, monitoring and reporting on the progress. These eight points have to be addressed together. Ms Carberry: “At the end of the day, it’s not about one particular technology and its use at one specific point. To really change the way we generate, distribute and use energy and water, the whole system has to change.” When discussing sustainability, climate change challenges follow. Many have argued the necessity for proper policies and a global CO2 emissions tax that will incentivize companies to pursue cleaner technologies. This indicates that top-down climate change and environmental policies have to be accompanied by enforcement mechanisms. According to Ms Carberry, policies also need to be connected to the correct measurement. For example, when selling wind turbines, the correct item to measure would not be the sales, but the actual energy generated with the turbines. Hence, three elements have to be present for the energy system to improve: topdown policy, enforcement mechanisms and correct measurements. On a final note, CGTI reports indicate that emerging markets are confronted with similar problems like urbanization, loose governmental control or rampant use of resources. The Chinese follow the same growth path as other emerging economies. Nevertheless, the developments in China are also of importance to mature markets. This is because technological solutions created in China are simpler and cheaper, and, as a result, more affordable and easy to export. By leading global greentech development, China could help other nations provide sustainable energy for all.
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what’s going on in the world: water
Hydropower: flexibility in the global energy mix The commitment of UN Secretary-General Ban Ki-moon to achieving “Sustainable Energy for All” can be regarded as one of the most important initiatives the United Nations has ever supported. The role of access to energy is primary in the advancement of human civilization. Energy would significantly improve living standards for the 1.3 billion people on the planet who lack it and would have positive externalities, such as enabling easier access to clean water, better cooking and heating facilities and increased communication possibilities. But, providing energy for all requires, besides the use of adequate technologies, a sound investment strategy. Adding to this, energy solutions need to be affordable, secure and environmentally friendly. In this respect, the World Energy Council (WEC) is giving the global energy sector a helping hand. The UN-accredited energy body facilitates global dialog on energy policy, publishes authoritative reports and works through its extensive member network. WEC put forth the World Energy Trilemma, which assesses how well countries balance the three competing goals of security, affordability and environmental sustainability. In this article, Joan MacNaughton, Executive Chair of the World Energy Council’s Energy Trilemma, discusses the challenges of creating valid policies, as well as the role hydropower can play in achieving a sustainable global energy system.
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n order to achieve sustainability goals and face climate challenges, governmental efforts alone will never be enough. Such complex issues require collaboration between governments and the business sector represented by multinationals and other companies around the world. Governments come from the regulatory side, having the power to enforce stricter rules and adjacent penalties for non-compliance with sustainability goals. Multinationals and other companies hold the means and resources to influence how markets evolve by having a say in the quality of products, in delivering products and services that are made in a sustainable manner and by investing in R&D for developing marketable sustainable technologies, as well as investing in emerging markets or in off-grid energy solutions for remote areas.
Government vs. industry With extensive experience in both government and industry, Joan MacNaughton elaborates on the challenges faced by government and businesses, which she considers quite distinct. “For government, the task is to try to meet goals, which are maybe conflicting. For example, if you don’t care about affordability and your economy is strong, you could spend as much as you choose on tackling climate change issues. However, in reality, you want to keep basic
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products and services affordable, while trying to meet climate change targets and ensuring that your security of energy supply is not compromised. Balancing these different goals is a tremendous challenge for policy-makers and perhaps one of the most important and stimulating challenges that I tackled in my whole time in government. In the industry, the challenge is somewhat different. A company might try to get the right framework to manufacture the right products and to deliver services, while making good profit. But, companies have to comply with government policy and adjust as well.” Ms MacNaughton continues by emphasizing that problems occur when a policy is not coherent across the different parts of the government. At that point, companies encounter increased difficulties in developing strategies that will enable them to continue to operate successfully. “In the energy sector, more than in other sectors, stable policies are needed because investment decisions are being taken in the industry; and the payback of a particular project might occur after a very long time, beyond an electoral cycle,” pinpoints Ms MacNaughton.
Hydropower The planet is facing a complex web of problems in terms of providing energy for its increasing population. While some argue that gas is the idea fuel for transitioning to a
more sustainable energy system and ensuring security of supply, others support the rapidly developing market of renewables, especially solar. Nevertheless, the future energy mix of the world cannot take extreme sides. As with making the appropriate energy policy, there has to be a balance in the shares of different energy sources in the global energy mix, while accounting for gradually reducing humanity’s carbon dioxide emissions. In line with this, Ms MacNaughton notes that hydropower should receive more attention in the energy system. “Hydropower plays a crucial role in delivering electricity to hundreds of millions of people. It is cheap, cost-effective and can contribute to the overall stability of the energy system,” she argues. Ms MacNaughton has been Global Advisor Sustainable Policies at Alstom, “which is the number one equipment maker for hydropower in the world,” and can provide an expert view on what hydropower can offer to the global energy system. She identifies that hydropower can be of particular use in the pursuit of sustainability. First, hydropower is quite flexible in terms of possibilities of combining it with other renewables like solar power. Secondly, it enables large-scale storage options. Thirdly, if the technology is implemented correctly, hydropower’s impact on the environment is very small, with no direct CO2 emissions resulting from using it.
Joan MacNaughton is Executive Chair of the World Energy Council’s Energy Trilemma and Member of High Level Panel for the CDM Policy Dialogue. Ms MacNaughton is also Immediate Past President of the Energy Institute. She has extensive public service experience and has been an influential figure in energy and climate policy-making, both in governmental and in advisory positions in the business sector.
“Hydropower plays a crucial role in delivering electricity to hundreds of millions of people.”
Photo courtesy of Energy Academy Europe
Moreover, hydropower has many valuable tricks up its sleeve. Ms MacNaughton reveals that there are incredible technologies like mini- and micro-hydro that are employed in remote places of the planet, where they can provide electricity to isolated, small communities. Micro-hydro technologies are producing electricity using the natural flow of water. They are a wonderful aid to developing nations across the globe, as they provide people with energy without imposing the need to purchase fuel. Additionally, out of all the renewable sources currently used, hydropower yields the biggest energy output. In spite of all these advantages, hydropower might not be suitable for every country. Because, not every country has the necessary resources or geography to handle hydropower production. This is one of the main disadvantages of hydropower, being limited by the characteristics of the geographical site. Nevertheless, in other extreme cases, the proper geographical location remains simply unused, which is the case of Africa, where 90% of the hydropower potential is not being tapped into. In this sense, Ms MachNaughton states: “When you think of the hundreds of millions of people in Africa, particularly Sub-Saharan Africa,
who don’t have electricity, not using the hydropower potential there is a great pity.” She suggests that the contribution of hydro should be improved enormously. “In my view, we must almost double the hydropower capacity on the planet in order to take full advantage of its potential and to contribute to a more sustainable electricity mix in the future.”
Scenarios for the future Ms MacNaughton reflects on past attempts to solve global issues: “We allowed the clean development mechanism of the Kyoto Protocol to erode just at the point when it was becoming very successful. That mechanism delivered huge numbers of projects and investments.” Alas, many other international agreements
have eroded or not yielded the desired results. Mankind can only succeed in successfully meeting climate change goals and providing energy for all if the right policies meet the right industry response, and profit is pursued in a smart and sustainable way, with a long-term view. “The private sector is the one that is going to provide the bulk of money and the bulk of expertise. We should try to use markets to unleash the innovations that the private sector can bring to meet these enormous challenges. Frankly, it is the only way forward,” concludes Ms MacNaughton.
did you know…
In Nepal, 1 million people benefit from mini/micro scale hydropower, since their rural communities do not have access to the national grid. In the current global hydropower electricity generation scheme, Africa and Australia account for 2% each, Europe 13%, South America 18%, North America 26% and Asia 39%. On the whole, hydropower is expected to double its global capacity up to around 2,000GW and to increase its global electricity generation to 7,000TWh by 2050. Additionally, the largest part of the growth in hydroelectricity generation will come from great projects in emerging economies and developing countries. (www.iea.org)
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what’s going on in the world: renewables
IRENA champions renewable on and off the grid Renewables have been having an impressive development in the past millennia. Take solar energy for example. Already in the 7th century B.C. people were using magnifying glasses to start fire. The first solar collector was made by Swiss scientist Horace de Saussure in 1767. Later on, French scientist Edmond Becquerel discovered the photovoltaic effect (1839). Other scientific work like the discovery of the photoconductivity of selenium (1873) propelled the solar energy industry. In 1955 Western Electric started selling commercial licenses for silicon photovoltaics (PV) technologies. By 1999 the worldwide installed PV capacity reached 1,000 megawatts.1 Apart from solar energy, renewables such as hydropower, wind, bioenergy, along with geothermal and ocean energy are experiencing rises in the global energy mix. The International Energy Agency (IEA) notes that total renewable capacity and generation rose by 8% in 2012 and are expected to increase by 40% by 20182.
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ncreasing global renewable energy production is not without its challenges, no matter where on the globe you are. Some may believe that deploying renewables in the West has little obstacles to overcome and that the real issues arise when deploying in developing countries. For Frank Wouters, Deputy-Director General of the International Renewable Energy Agency (IRENA3), this is not necessarily the case. Mr Wouters finds that countries around the globe are encountering similar issues when trying to develop projects involving renewables. Raising awareness is at the top of the list of challenges, although all challenges are equally important to overcome when deploying renewables. For IRENA, keeping up to speed with cost trends and creating awareness for this topic are daily tasks. This is because developments in the field of renewable energy are fast-paced and constant. Another challenge is financing; projects are capital-intensive but become cheaper as they develop. To illustrate, the IEA reports that in 2012 global investment in renewables fell by 12%4. Furthermore, regulation is a major barrier. In this sense, cooperation between countries is essential. IRENA cooperates and enables cooperation between its 119 members and is ready to welcome 44 more states that are currently in the accession process. IRENA works with countries on designing the most effective policy framework for their specific situation. Mr Wouters observes that many energy systems are in a state of transformation.
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les
He notes: “There is going to be increasing pressure on some actors that have been traditional energy providers. They will probably be resistant to the [renewables] transformation to some extent, and resistance is both a challenge and a barrier to that transformation.” These actors may include traditional utility providers such as electricity, oil and gas suppliers that as yet have to adapt their business model to new market realities.
IRENA’s part When it comes to deploying renewables, awareness, access to finance, regulation and pressure to transform are challenges being faced all over the world. This is where IRENA starts playing its part. As an intergovernmental organization, the agency’s role is to guide its member states and advise them on developing their renewable energy market. One of IRENA’s main priorities is to evaluate where knowledge is lacking and collect information on policies, technologies, resource assessment, finance, innovation and all relevant topics for policy makers from the agency’s 119 member states. Another part of the organization’s work is to assist national governments in obtaining funds for deployment projects and to facilitate intergovernmental cooperation. When it comes to IRENA’s role in the UN’s “Sustainable Energy for All” initiative, the agency is the global hub for efforts to double the share of renewables in the global energy mix by 2030. For Mr Wouters this is an important indicator for the global recognition of IRENA. Moreover, it seems that the agency has become the “go-to” organization for a number of topics related to renewables.
Funding off-grid innovation “Revolutionary technologies have opened up a whole new arena of options for off-grid solutions,” says Mr Wouters. In his view, renewables can be the offgrid solution and they could be added to already existing energy generation systems, saving costs. In truth, due to cost competitiveness, new areas of innovation are being explored, and there has been plenty of new activity in the off-grid sector. “There are many development banks working on this, and we are working on it also, because we see many developing countries growing rapidly,” continues Mr Wouters. Sub-Saharan Africa is a prime example in this respect, with the continent’s fastest growing economies (Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia and Nigeria5), intensifying their renewable energy activities, especially solar6. IRENA is consistently involved in such developments. In the previous year, the agency organized the first International Off-Grid Renewable Energy Conference (IOREC) to debate pathways for increased access to energy and to encourage investments in renewable energy projects.
Fading fossil fuels Humanity has reached the point where fossil fuels are no longer an efficient solution for meeting energy demand. Nevertheless, fossil fuels are still heavily subsidized around the world. While some may argue that especially developing countries need these subsidies in order to provide energy to the poor, others might convey a different story. Closer examination reveals that, in the developing world, most of these subsidies go to the transport sector and not to helping the underprivileged. Mr Wouters clarifies: “Governments are subsidizing fossil fuels for the middle class and the business sector. Readjustments are politically unpopular.” In fact, governments are aware of the on-going subsidies issues and they are trying to redirect funds to put them to work in a more sensible way.
did you know...
IRENA and the Abu Dhabi Fund for Development (ADFD) cooperate on enabling funding for renewable projects that are replicable, innovative and intended to have a multiplier effect. The IRENA/ADFD project facility provides access to USD 350 million to fund such projects endorsed by IRENA in developing countries. The funding will occur in seven cycles. Currently, the agency is in the final stage of selecting the projects for the first cycle. US Department of Energy, www1.eere.energy.gov/solar/pdfs/solar_timeline.pdf International Energy Agency, Medium-Term renewable Energy Market Report 2013, June 2th 2013 3 www.irena.org 4 Id. 2 5 www.ventures-africa.com/2012/08/the-7-fastest-growing-economies-in-africa 6 UNEP Finance Initiative, Innovative financing for sustainability, “Financing renewable energy in developing countries,” February 2012 1 2
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what’s going on in the world: sustainable cities
C40 facilitates sustainable climate Even though they only cover 2% of the planet’s surface, cities have a high environmental impact. Around 70% of the global carbon dioxide emissions come from cities. Moreover, they are responsible for two-thirds of the world’s energy consumption. Additionally, since 90% of the Earth’s urban areas are located in coastal regions, cities are most likely to suffer from the impact of climate change, for example, coastal storms and rising sea levels. Nevertheless, with such an influence on the global scene, cities are able to make a change in the right direction in terms of engaging in sustainable development and tackling climate change issues.1
“C
ities have the power to change the world.” This is what motivates the C40 Cities Climate Leadership Group (C40) to encourage and facilitate cities to undergo sustainable action. Established in 2005, C40 is a network of cities from around the world,
countries and the current very challenging economic times, Europe is not without its difficulties in the face of climate change. However, according to Cristiana Fragola, C40’s Europe Regional Director, the 19 European cities that are part of the C40 network are making progress in tackling
that the collaboration among the cities she is looking after is not confined to the European zone, but that these 19 cities also cooperate with C40’s global network. Ms Fragola emphasizes that C40 cities are continuously exchanging best practices with each
Munich
New york
including 19 European cities, committed to implementing significant climaterelated actions and enabling cooperation. Currently, C40’s chair is former New York City Mayor Michael R. Bloomberg.
19 European cities ready for sustainable action Europe is the place that 10% of the world’s population calls home. With limited natural resources shared by many
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these challenges by setting ambitious climate targets, collaborating with their peers and driving healthy competition. In doing this, these countries are notable leaders on the way to making European cities sustainable. Ms Fragola remarks that, by taking local climate action, many cities are able to encourage economic recovery. Her main tasks at C40 involve supporting these 19 European cities on their journey to sustainability. She explains
other. The representatives of these cities can also attend workshops, for instance, on how to plan protocols for greenhouse gas inventories in cities. 2 To illustrate the progress these cities are making, one third of the twenty-nine finalists of the C40 & Siemens City Climate Leadership Awards Conference in 2013 were represented by European cities. The ten finalists included Munich for its
e action in cities around the globe unique green energy plan, Melbourne for its programme for sustainable buildings, Singapore for its intelligent transport system and New York for plans to make the city stronger and more resilient in the aftermath of Hurricane Sandy.3 Furthermore, Ms Fragola says that C40’s 19 European cities are not only leaders in terms of sustainable development programmes, they are also the cities in which sustainability goals and mandates that stem from EU Directives are first applied. In support of C40’s efforts to facilitate cities in pursuing sustainable development and encouraging them to report on their progress, data released by the group in June 2013 show that more than 91% of the 110 reporting cities that are taking action to combat climate change are also experiencing economic benefits and increased annual savings
Empowerment and care C40’s potential is enormous. “The C40 cities could reduce the global annual greenhouse gas emissions by over one billion tonnes by 2030, compared to business-as-usual. This reduction is equal to making Canada and Mexico carbon neutral,” states Ms Fragola. C40’s Europe Regional Director is confident that this goal can be achieved. She adds that, “even though the world has been facing cut-downs and lay-offs since 2008, via a collaborative effort and dialogue within the C40 network, the cities will be able to reduce obstacles in terms of human, financial and technical resources”. This way, the C40 Cities Climate Leadership Group is serving as a catalyst to help cities in facilitating knowledge exchange in the pursuit of sustainable climate action.
focused on making sustainable energy that is “accessible, cleaner and more efficient”5 a reality in the next decades. With its power to motivate sustainable change in cities and to promote engagement, C40’s actions could be of valid help in realizing the UN-supported goal. Finally, Ms Fragola highlights that C40 has the potential for large and meaningful impact only if citizens are engaged. Thus, citizen’s cooperation is needed in achieving climate goals. Likewise, C40 is deeply concerned about the well-being of its citizens. Their quality of life is central to ensuring a sustainable future for them and their children.
did you know...
C40’s 63 member cities (42 megacities and 21 smaller innovator cities) are home to roughly 8% of the world’s population. These cities are responsible for approximately 5% of the world’s emissions (around 1.7 billion tonnes of annual carbon dioxide) and represent 21% of the global economy (13 trillion US dollars of GDP). If C40 were a country, it would be the world’s third most populous one (the size of Brazil and the US combined), the world’s fifth largest greenhouse gas emitter and the second largest economy on the planet, tied with China.6
Singapore
Melbourne (the equivalent of over 10 million euro). These savings can be used by the cities’ administrative bodies to provide more service and improve quality of life for their citizens. Ms Fragola’s position within C40 allows her to have the role of connector for the 19 European cities, helping them to share climate-relate plans and actions that will deliver financial, environmental and social performance results.4
On a broader assessment, C40’s ambitions and actions are in line with the “Sustainable Energy for All” initiative launched by UN Secretary-General Ban Ki-moon two years ago. The initiative is
www.c40.org www.c40cities.org/c40blog/c40-voicescristiana-fragola-europe-regionaldirector 3 cityclimateleadershipawards.com/ category/winners 4 Id. 2 5 www.sustainableenergyforall.org 6 Information based on 2011 C40 data. 1 2
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Financing sustainability is a column by Gerard van Baar
Here comes the sun! I
n the last fifteen years, the mobile phone industry revealed business opportunities in developing countries that were unthought of before. Massive numbers of people in Asia and Africa not only appeared to be able to buy a phone, but also to use it intensively. The phone rapidly became one of the first necessities of life for communicating not only with family and work, but also with markets, banks and even health care. The success was based on cheap prepaid cards that made it possible to buy phone credit when you have the money and scale back when you don’t. Tariffs were low. However, the usage was so large that the business case was very soon profitable. Iqbal Quadir, who singlehandedly raised this model in Bangladesh, from the beginning was convinced that “connectivity is productivity”. And people recognise this immediately. This business case and structure can be used as example for spreading energy globally, specifically in rural areas. For instance, one of the hurdles of renewable energy, like solar and wind, is that all the investments need to be done upfront. The advantages of almost no marginal costs during operations is simply a step too far when you don’t have the money. Azuri, a small UK company, took all this in its business model and is now making its way into Africa. Azuri developed the concept of pay-as-you-go solar panels for lighting and charging mobile phones. They started putting solar panels on houses in South Sudan. The inhabitants were able to use the technology after buying a scratch card and sending an SMS with the code inside. This supplies the user with electricity for a week. In this way, the installed solar panels can immediately compete with a kerosene lamp, but with better light and cleaner air. Additionally, people no longer need to travel kilometres to charge their mobile phone several times a week. After a predefined period, in which users have topped up their systems a sufficient number of times, they receive a special card that provides “everlasting credit,” effectively unlocking the devices. Azuri’s success is unprecedented, winning awards and rolling out all over Africa, with ambitious goals of reaching millions within years. This is exactly the kind of business models we need to spread energy truly globally: low entry, basic levels and rapidly scalable. On the Azuri website, Barclays is put forward as the provider of working capital. From a banker’s point of view, the attractiveness of the business case is almost the same as for consumers: scalable with basic technology. Meaning that it is very easy to start on a small scale and go forward, step by step, with every milestone being another proof of the business case.
Gerard van Baar
Given the foreseen growth of the African population, the pay-as-you-go solar business model will once again prove the real value of massive numbers of small scale users. And the users know without saying: “connectivity is productivity”.
Gerard van Baar is an independent consultant. Previously, Mr Van Baar held various positions in energy and finance related business. Amongst others, Mr Van Baar was Managing Director Finance & Sustainability of the Holland Financial Centre. In this position, he was involved in the plans for and discussions on the Green Investment Corporation. Mr Van Baar also raised Deloitte’s European Energy & Commodity Risk Management practice. Contact: gerard@vanbaar.org
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Rational Middle
Is solar energy the key to providing “Sustainable Energy for All”? There are striking differences when it comes to access to energy for the more than 7 billion people on the planet. Approximately 1.3 billion individuals lack access to electricity and 2.6 billion have no access to clean cooking facilities, with 95% in Sub-Saharan Africa or developing Asia and 85% in rural areas. (www.iea.org, 2012 data) Emerging off-grid solutions have sparked enthusiasm for solving this energy gap. Numerous such solutions use the sun’s power. Solar energy is not a stranger to humanity. The Romans and the Greeks used it as far back as the 7th century B.C. to light torches in religious ceremonies. Solar power developments accelerated in the 19th century, commercialization took off in the 20th century and the percentage of solar in the global energy mix is currently rising. From using PV in satellites in 1958 and from the 1,000 megawatts of global PV capacity humanity had in 1999, solar power has moved past the 100,000 megawatts of world PV capacity mark in 2012. (www1.eere.energy.gov, solar timeline; www.earth-policy.org, solar power 2013) Two years ago, United Nations Secretary-General Ban Ki-moon launched the “Sustainable Energy for All” initiative, with the goal of achieving “universal access to modern energy services” by 2030. (www. sustainableenergyforall.org) NRG Magazine wanted to find out if solar energy is the key to achieving this goal. Ramez Naam, computer scientist, futurist and award-winning author and Prof. Dr. Anton J.M. Schoot Uiterkamp, Emeritus Professor of the University of Groningen, have agreed to clarify if the electricity-deprived and the fossil-fuel-dependent can count on solar energy in the next decades.
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Is solar energy the key to providing “Sustainable Energy for All”?
Solar: Sustainable Energy for All
P
icture a map of the world overlaid with more than a billion dark spots. Those blemishes are the more than 1.1 billion human beings alive today who lack access to electricity, a resource so basic that the vast majority of us take it for granted. Those dark spots are heavily concentrated in two parts of the world: almost 600 million in Sub-Saharan Africa and more than 500 million in India and the south of Asia, in a wide arc running through Pakistan, Bangladesh, Myanmar, Laos, Cambodia, Indonesia and their neighbours. Now picture another map of the world, this time overlaid with splashes of bright gold across those same areas. This is the amount of harvestable sunlight that can be turned directly into electricity by modern solar panels. We are, as a civilization, between a rock and a hard place. We must reduce our carbon emissions, dramatically, in the span of mere decades. At the same time, modern energy, the primary source of those carbon emissions, is also a fundamental enabler of human progress. Energy rich nations have higher life expectancies, higher educational levels, higher levels of democracy and even higher levels of measured happiness than energy poor nations. To reduce our carbon emissions by restricting the ability of a billion men, women and children to rise out of energy poverty would be both cruel and unjust. The future energy system will be a mixture of several technologies. Fossil fuels, undoubtedly, will play a role for decades, with coal hopefully playing a smaller role, and natural gas replacing coal, before it is also slowly phased out. Nuclear power and hydropower – the two most deployed low-carbon sources of energy today – both have important roles to play, and should be scaled up. Wind power also shows large promise. Solar power – and solar PV technology in particular – shows a unique set of characteristics that give it a key role in simultaneously halting our damage to the climate and making room for a billion
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Ramez Naam is a computer scientist, futurist and award-winning author from the US. Mr Naam has been Partner and Director of Program Management at Microsoft. He founded and ran Apex NanoTechnologies, the world’s first company dedicated to developing software to accelerate molecular design. Mr Naam holds 19 patents and has won the H.G. Wells Award for four of his books. He currently serves as Adjunct Faculty at Singularity University. rameznaam.com
to rise out of energy poverty. First is the fortuitous geographic coincidence of energy poverty and solar availability. In those areas with no grid yet, decentralized solar built at the village scale is already cheaper than grid deployment, and around three times cheaper than diesel generators – the most commonly used off-grid source of electricity. Second is the incredible and, in recent energy history, unprecedented exponential decline in price for solar energy.
The future energy system will be a mixture of several technologies.
Over the past 30 years, the price of solar PV cells has dropped by a staggering 95%. Solar power is literally 20 times cheaper than it was in the early 1980s. In Peru, India and Sub-Saharan Africa, solar is now cheaper than any fossil fuel alternative. Those who once dismissed solar power as entirely impractical on a price basis must now give the technology a fresh
look. Just as importantly, this exponential price decline is continuing, with the price of solar panels likely to halve in the next several years. There are of course challenges. Energy storage is one in particular. How do you provide power when the sun isn’t shining? For many in energy poverty, the mere ability to charge a mobile phone or to power an electrical pump at a well, rather than spend hours of labour hauling water, illustrates the advantages of daytime electricity. Energy storage is also improving rapidly. In the last 20 years, the price of storing electricity in batteries has shown its own exponential trend, with costs dropping by a factor of 10 in that time, and dropping by half in the past four years alone. Energy storage will be solved. Two decades ago, the first mobile phones were appearing on the world stage. They were bulky, expensive and of poor quality. But they’ve been improving, shrinking and dropping their price at a rapid pace since then. In 1993, less than 5% of Sub-Saharan Africa had access to a phone. Now, almost 80% do, thanks to the decentralized and exponentially improving technology of the cellular phone revolution. 20 years from now, when we’ll look at the changes in the global energy system, we’ll see 2013 as the early stage of a solar revolution.
Is solar energy the key to providing “Sustainable Energy for All”?
In the long run yes, but… T
he following line of arguments presents my qualified answer to “Is solar energy the key to providing “Sustainable energy for all”?” First, the transformation of energy systems should start at the demand side. When US Vice President Dick Cheney introduced the Bush Administration’s energy plan in April 2001, he said: “Conservation may be a sign of personal virtue, but it is not a sufficient basis for a sound, comprehensive energy policy.” Needless to say, the Bush plan emphasized increasing fossil energy supplies. However, before planning to provide sustainable energy for all, preference should be given to establishing a sustainable energy system starting at the demand side, since energy conserved or used efficiently is energy saved.
Once CO2 emissions are seen as a substantial loss of money, society will react. Secondly, fossil fuels remain important. Whether one likes it or not, the reality is that fossil fuels will remain the dominant source of energy in most countries, for many years to come. The current global energy system is largely fossil fuel-based. The associated multi trillion investments in facilities and hardware such as mines, production platforms, pipelines, refineries, power plants, industrial facilities, gas
Prof. Dr. Anton J.M. Schoot Uiterkamp is an Emeritus Professor of the University of Groningen. His expertise is in Environmental Sciences. Professor Schoot Uiterkamp is active at the Centre for Energy and Environmental Sciences, IVEM, Energy and Sustainability Research Institute Groningen (ESRIG) at the University of Groningen. a.j.m.schoot.uiterkamp@rug.nl
stations, home heating devices, gasoline and diesel cars cannot be written off over a short period of time. To illustrate, in the 20th century it took 30 years for available energy technologies to grow substantially and to become widely available (cf. G.J.Kramer & M. Haigh, 2009, Nature, Vol. 462, p. 568-569). Thirdly, there are two major problems with fossil fuels: sooner or later their stocks will run out and the associated CO2 emissions will contribute to global climate change. Both problems may be addressed by prevention, reduction of use and substitution of fossil resources with renewables. Nevertheless, renewable energy sources have problems too. Fossil energy sources will run out eventually, but, until then, their output is reliable and predictable. Renewable energy sources like solar and wind are inexhaustible, but their output is unreliable and unpredictable. Moreover, most renewable sources generate electricity, then again electricity accounts for only about 20% of the energy currently used globally. On top of that, electricity cannot be stored easily, and large trucks, cargo ships and airplanes cannot be expected to be all-electric soon, if ever. Still, the pressing nature of climate change calls for urgent action to bring down CO2 emissions. Thus far, the poor results of controlling and capping CO2 emissions by the introduction of tradable carbon emissions rights and Carbon Capture and Storage technologies (CCS) have shown the need for tougher measures. The introduction of a slowly rising, worldwide, fair, consistent and unavoidable carbon tax is an important first step. Once carbon dioxide emissions
are seen as a substantial loss of money, society will react. Going further, how can the two main issues renewables face be solved? Reacting hydrogen from renewables with CO2 could be the answer. Emerging technology based on the so-called Sabatier reaction (CO2 + 4H2 -> CH4 + 2H2O) makes it possible to simultaneously store electricity in the form of hydrogen and, by reacting it with carbon dioxide, to produce natural gas and other useful compounds. The electricity from renewable sources is stored by generating hydrogen from water, and the carbon dioxide is captured from stationary sources like the chimneys of coal-fired and gas-fired power plants. In the future, carbon dioxide could perhaps be captured from the atmosphere as green plants have been doing for billions of years (cf. W.Haije & H.Geerlings, 2011, Environ. Sci.Technol., Vol 45, p. 8609-8610). In this sense, a 250kW pilot plant featuring this so-called “power to gas” concept is already operational in Germany. The concept allows the gas produced to be transported in the existing gas grid and to be used in all existing facilities, including power plants. Also, if gasoline cars were to be replaced by electric cars, traffic-related emissions could be prevented and, in turn, the cars could provide substantial additional storage capacity for electricity. In conclusion, solar energy is undoubtedly a key sustainable energy source of the future, but carbon-based energy cannot be written off and will be needed for a very long time to come. The viewpoint presented here indicates a way to continue the use of carbon-based resources without their well-known environmental impacts.
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The V International Energy Forum in Moscow
The V International Energy Innovations. Infrastructure. The International Energy Forum, held annually in Moscow, is meant to determine the strategic challenges that are currently faced by the Russian Heat-and-Energy Complex and to find solutions to these challenges. The forum’s main task is to promote efficient collaboration between Russian governmental bodies, trade unions and associations, academia and businesses, as well as representatives of other areas. All these parties work together at the forum in order to bring forth relevant ideas and recommendations for the development of country’s energy and technology sector. This year, the forum is taking place on December 17th 2013, at CG “President Hotel,“ Moscow.
Photos Alexander Kalasnikoff
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The V International Energy Forum in Moscow
Forum in Moscow Security. T
hroughout its history, The International Energy Forum has welcomed more than 1,000 attendees, both national and foreign businesses, and government representatives. An interesting feature of the forum is the “Business Development Territory” – a special part of the day, in which attendees can arrange a meeting with each other in order to negotiate, present projects and ideas, sign deals and engage in other mutually beneficial activities without any intermediaries.
The shift in the decision-making process in Russia Gennady Shmal, President of the Union of Oil and Gas Producers of Russia, now 76, has had a prolific career in the Russian oil and gas sector, starting as an engineer back in 1959. Among his many held positions, he was head of the state concern “Neftegazstroi,” head of the RAS “Rosneftegazstroi”and a member of the state committee on liquidation of Chernobyl catastrophe consequences. Commenting on the forum, Mr Shmal remarks that “the forum and other similar events of the country’s energy and technology sector are very important”. He continues by saying: “in the Soviet times, there was a strict top-down system of implementation of all the decisions concerning the science and technology areas in Russia. A State Committee for Science and Technology was in charge of various relevant programs, amounting to more than 200. These programs regulated the implementation of changes in sectors from construction, to gas and oil. Neither the committee nor its programs exist anymore, and that is what makes The International Energy Forum important. This is the place where people can exchange opinions and express their views. The older system was substituted by a new one, in which the government is not the sole decision-maker anymore. Hopefully, this shift in approaches can contribute to future positive changes in the industry. The forum is gradually increasing in its significance for the energy sector, especially since the people and businesses that are attending it are very diverse. Personally, I am very involved in this sphere; nevertheless, there is always something new for me to learn here.” Continuing the discussion, Mr Shmal elaborates on the characteristics of a favourable atmosphere for energy innovation in Russia, by pinpointing the key factors that could allow its implementation in the country’s oil and gas sector: “First of
Anatoly Dmitrievsky, Director of Oil and Gas Research Institute of Russian Academy of Sciences, Yekaterina Popova, Head of Committe for Modernization and Technological Development of Russia. Gennady I. Shmal, President of the Union of Oil and Gas Producers of Russia. all, there is a need for the right legislative framework regulating new developments in this sector. Then, the economic situation of the country, which is to a large extent dependent on the European economy, needs to be taken into account. New technologies are very important. Moreover, we have to think about the areas to invest in, that would later give the most significant return on investment. Additionally, we have to try to distance ourselves from fossil fuels.” Regarding the differences between implementing innovation in Russia and in the EU, Mr Shmal notes: “When it comes to funding scientific research, Russian companies spend significantly less than, let’s say, their foreign counterparts Shell or Exxon Mobil. In Russia, no money is allocated to the development of abstract sciences. Currently, there is a restructuring process of the Academy of Sciences taking place, but, unfortunately, this process is leading to a wrong direction altogether. The Academy of Sciences is an institution of an exceptional importance, however all the projects that I have seen to date degrade its authority to the level of an ordinary research think-tank.”
Making research innovation commercially interesting The Chamber of Commerce and Industry of the Russian Federation (RF CCI) is a Russian non-profit NGO that represents the interests of SMEs and big businesses in a variety of sectors, while promoting the growth of the Russian economy. Yekaterina Popova, Head of the Chamber’s Committee for Modernization and Technological Development of the Russian economy, presents a few insights into the activities of the organization, while taking into account the general state of affairs connecting research and market implementation of innovative ideas. Ms Popova explains: “In my view, there are numerous projects and ready-to-be-used ideas coming from Russian researchers and engineers, but these ideas are not met with relevant business demand
and do not sell well as a result. This is exactly the problem that has to be solved with the help from the government, because the government is the only authority that can underpin the best projects and ideas and help ensure their implementation. The business circles can only be engaged in the final stages of the process, when commercial gains are clear. In this respect, until the commercial advantages of ideas from scientific research are made clear to the business side, it is our task to improve the situation. Furthermore, there are many sustainable energy projects in Russia, which is promising, of course. However, the problem is how to make these projects commercially interesting and profitable.”
Engaging ministries and society Last but not least, Anatoly Dmitrievsky, Director of the Oil and Gas Research Institute of the Russian Academy of Sciences, is talking about the importance of engaging the ministries and society in the energy transition. Mr Dmitrievski: “I must note that the Presidential Administration together with Yekaterina Popova and her team are doing a great job, because they have initiated various sections of The International Energy Forum, which operate along the panel discussion. While the reports of research centres are being presented at the discussion, the forum’s sections are a platform where different parties (business representatives and researchers) can meet and share their views. My advice for the participants is not to narrow the process down solely to the reports of the ministries. These reports are often merely the reiteration of the previous said and discussed items, as we have been having similar meetings three to five times per year. The reports that are presented at the panel discussion have to be the ones that can actually change the way the ministries see the situation in the Russian industry. This will allow the parties to positively contribute to the innovation process in our country.”
NRG Magazine Edition 12 | 23
Expert Section with Ieda Gomes
The world’s gas markets: evo
NRG Magazine celebrates experts. In this edition Ieda Gomes, Managing Director at Energix Strategy ltd shares her experience in the global gas sector and elaborates on the particularities of financing projects in this field. Ms Gomes is an experienced professional in the energy sector, specializing in the oil and gas markets. For nearly 13 years she worked for BP in natural gas and solar projects and opportunities in Africa, Asia, the Middle East and Latin America. Ms Gomes is currently also Director at the Board of Directors of InterEnergy Holdings and Non-Executive Director at the Board of Bureau Veritas. She has been awarded by the International Gas Union (IGU) for her services rendered as Chair of the IGU Task Force Building Strategic Human Capital (2009-2012) and as member of the IGU Executive Committee (2006-2011). Ms Gomes’s background and expertise allow her to provide valid insights into the current state of the world’s gas markets and their future. Ieda Gomes, Managing Director at Energix Strategy ltd Photo courtesy of Ieda Gomes
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Expert Section with Ieda Gomes
olution, challenges, outlook A
s nations work towards a more sustainable future, one cannot belittle the importance of natural gas. Bringing the flexibility of supply that renewable energy sources such as solar and wind still lack, gas is rapidly becoming the go-to fuel in the transition period. However, in order for gas solutions to thrive, be it for heat or electricity generation or for fuelling transport, investments have to be made in the world’s gas markets. Financing for the gas sector poses various problems. These difficulties can be observed in the developing world. According to Ieda Gomes, Managing Director at Energix Strategy ltd, in most of these countries, the gas sector is controlled by national gas/oil companies that sometimes play conflicting roles as investors and self-regulators and that, “very often, are constrained to sell the gas at subsidized prices”. Ms Gomes remarks that “the gas industry is very capital intensive, particularly in the upstream and midstream sectors, with investments maturing in the long term”. Additionally, she argues that for natural gas to penetrate the market place, pipelines and the right distribution infrastructure are required to be constructed, and the end-user needs to invest significantly in internal pipes, equipment conversion and metering systems. “The major obstacles to the development of the gas industry in developing countries are the incipient infrastructure due to the limited investment capacity of the local incumbent, gas prices set below economic parity, low individual and aggregate demand in the residential and commercial sectors and the lack of a stable and predictable regulatory regime,” identifies Ms Gomes. Although challenges are persistent, for Ms Gomes, the key pre-conditions for successful investments in gas markets include: long-term vision and planning; effective, balanced and independent regulators; a regulatory framework which controls natural monopolies and allows for private investment and the availability of competitive gas supplies. These conditions, alongside capable human resources create prime scenarios to attract investment. In the US, for instance, these conditions have successfully played out. The country is today the largest gas consumer on the planet and fosters the world’s most dynamic gas market. Ms Gomes explains: “One of the main features of the US gas market is the rapid response of the
industry agents to economic signals.” Due to private investments in LNG and shale gas, within seven years, shale gas has come to account for 40% of the domestic supply in the US. Furthermore, LNG import terminals are being converted into LNG export terminals. This success story has not yet evolved elsewhere due to environmental considerations. However, Ms Gomes pinpoints that there are several studies concluding that the risks of shale gas can be mitigated through adequate industry practices and proactive communication. She adds that, in order for shale gas to have other success stories outside the US, challenges related to public perception of the effects of shale gas and fracking on water and the atmosphere need to be tackled.
“Subsidies have the perverse effect of not allowing the consumer to make appropriate choices.” Moving to Asia, Ms Gomes shares that China demonstrates additional barriers for the exploitation of shale gas because of difficult geological conditions and lack of equipment, know-how and technology. The country’s gas sector continues to develop, and China has grown to be the fifth largest gas consumer in the world. Ms Gomes clarifies that “the development of the country’s gas sector is embedded in the five-year government plan, and, so far, China has successfully built the EastWest and the Turkmenistan importation pipelines and several LNG terminals”. China could set a global example for developing gas markets in general. Ms Gomes: “China is gradually implementing some gas price reforms in main cities and its national champions (i.e. Sinopec, PetroChina and China National Petroleum Corporation) are investing abroad to secure future gas supplies. One can clearly see this policy in motion following China’s recent acquisitions of upstream companies and participation in gas fields in Africa, Latin America and North America.”
Furthermore, gas markets in Brazil, Middles East, South Asia and Africa have challenges and paths of their own. Ms Gomes comments that the first milestone in the evolution of these gas markets will be the increased availability of competitive gas supplies. She notes that Brazil, India, China and several Middle Eastern countries have become net importers of natural gas and particularly of LNG. Nevertheless, at the same time, gas and LNG prices have risen due to importation from Japan and South Korea. In this respect, Ms Gomes advises these countries to develop appealing fiscal terms to attract investors in the upstream. She further illustrates the need for attracting upstream investors with the case of Africa: “Huge gas reserves have been discovered in Mozambique and Tanzania. But both countries lack gas infrastructure, so the industry will have to be developed around the exportation of LNG.” Focusing on LNG, particularly on LNG as transport fuel, Ms Gomes notes that challenges in terms of supply chain necessities and subsidies need to be overcome. She remarks that “the sector is still in its early days, as LNG import/ export terminals are available in less than 50 countries”. She also comments that the main incentive for using LNG in transport would be lower prices compared to diesel and gasoline. In this respect, she emphasizes that natural gas is often competing with subsidized diesel or gasoline in the transportation markets. “Subsidies have the perverse effect of not allowing the consumer to make appropriate choices. When diesel and LPG are not subsidised, natural gas can compete on equal grounds,” explains Ms Gomes. Finally, with respect to the future of natural gas in the transport sector, Ms Gomes has her expectations set on compressed natural gas (CNG): “Due to the cryogenic features of LNG, I believe it is cheaper and easier to develop natural gas for vehicle solutions by using CNG, which is much wider spread and doesn’t depend on the existence of liquefaction or importation facilities.”
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Ehendandent Energy Academy ra cuptatem Europe ut por
The Energy Convention 2013 powered by the Energy Academy Europe
19th and 20th of November 2013 in MartiniPlaza Groningen
The Energy Academy Europe is the host of this year’s Energy Convention, which is an international platform for senior energy experts from various disciplines, sectors and countries. Each year the latest topics in the field of energy transition are discussed by senior representatives from research & development, business and government. The convention is of growing size and importance, with up to 1,000 visitors last year. The Energy Convention includes a number of interesting plenary events: keynotes, forums, dinners, and networking lunches. A variety of inspiring high-profile speakers will lecture at the Energy Convention, turning this conference into a well-balanced mix of inspiration and cutting edge science. This years’ conference will also be of interest to young energy professionals and students, as it is featuring a talent market and networking possibilities. The convention will cover two themes:
The Energy Convention 2013 is organised by:
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ENERGY CONSCIOUSNESS and SYSTEM INTEGRATION Energy consciousness will focus on the changing energy dialogue in society and the interaction with the changing energy sector. System integration will deal with the new decentralized energy system. Various facets of system integration will be discussed during four sessions; from changes in economic models to the technical or ICT aspects of this integration.
SIDE EVENTS - NRG Battle - Energy Career Event - Young Energy Convention - European North Sea Energy Alliance, Pitch Event - Masterclass
THIS YEAR’S KEYNOTE SPEAKERS Amory Lovins is an American physicist, environmental scientist, writer, and founder of the Rocky Mountain Institute. Time magazine named him one of the World’s 100 most influential people and a ‘Hero of the Environment’. Lovins has received ten honorary doctorates, published 29 books and has written over 450 papers. He has been promoting energy efficiency for over forty years and has advised countless governments and Fortune500 organisations on energy-related matters.
Ambassador Wu Jianmin is Executive Vice Chairman of the China Institute for Innovation and Development Strategy, Special Researcher of the Counsellors’ office of the State Council, Member of the Foreign Policy Advisory Committee of the Chinese Foreign Ministry, Member and Vice President of the European Academy of Sciences and Honorary President of the International Bureau of Exhibitions (BIE). He is also member of the Energy Academy Europe International Advisory Board.
André Kuipers is a Dutch physician and ESA astronaut. He was the second Dutchman to travel to space and the first to return for a second mission. As part of his DELTA mission, Kuipers conducted 21 experiments on various subjects such as physiology, biology, technological development and medicine.
Dr Nawal Al-Hosany is the Director of Sustainability at Masdar. In this role, she leads a team responsible for developing Masdar’s sustainability standards & policies and sustainability auditing, monitoring and reporting. With a successful track record, on January 2012, Dr Al-Hosany further assumed the role of Director of the Zayed Future Energy Prize.
Joan MacNaughton is a former DG of Energy in the United Kingdom, former Chair of the Governing Board of the IEA and Senior Vice President, Power and Environmental Policies with Alstom Power. She is currently President of the Energy Institute in London and chairs the policy assessment Work of the World Energy Council (‘WEC Trilemma’). She is also Chair of the Energy Academy Europe International Advisory Board.
Ewald Breunesse is Manager Energy Transitions at Shell Netherlands and the focal point for the communication of the company’s long-term scenarios to the media, government, businesses and knowledge institutes. In his vast career at Shell, he served as Head of Market Research, Strategist for the Shell pension fund, Scenario Planner, Change Manager and GM of the company’s Electricity business unit.
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Energy Academy Europe
Energy Academy Europe
Ehendandent Energy Academy ra cuptatem Europe ut por
The International Advisory Board of the The international character and ambitions of the Energy Academy Europe are highlighted by its International Advisory Board, which was appointed earlier this year. The Board consists of ten energy experts from all over the globe, emphasizing the EAE’s international character and ambitions.
T
he members of the Board all have a solid track record in the energy industry, in shaping energy policy or in energy education. Their experience and knowledge will be a great asset to the Academy in developing world class education and research programmes. And of course they bring with them an extensive network of contacts in leading energy companies, institutes, governments and other stakeholders. The EAE model of combining education, research and innovation in a multidisciplinary approach with strong links to the industry is one that appeals to the Board members. In line with this, Claude Mandil, for example, former executive director of the International Energy Agency notes: “I strongly feel the need for something like the EAE. The challenges for energy are increasingly cross-cutting. Companies and government need experts in energy with a cross-cutting approach. You need people able to teach this approach
and you need people willing to learn these approaches. There are not so many institutes in the world that do that and in that sense the EAE stands out.” The need for better energy education is clearly growing, says Giacomo Luciani, who teaches in Geneva and Paris: “I know there is a strong demand for education in energy, which is not fully satisfied by regular curricula in most of our universities. The Energy Academy is a very welcome addition.” The multidisciplinary approach of the EAE also goes down well with Petter Nore, Chief Energy Analyst at the Norwegian Ministry of Foreign Affairs: ‘’I’m always on the look-out for people with a holistic view of the energy sector and this seems to be very much the case in Groningen.” Sharing knowledge and giving opportunities to a new generation of energy professionals is a recurring theme in interviews with the Board members. Nawal Al-Hosany, director of sustainability at Masdar in the United Arab Emirates: ‘’Young people bring fresh ideas. Innovation always comes from the fresh mind, so it’s critical that we engage with the young energy professionals.” This view is shared by Tatiana Mitrova of the Energy Research Institute of the Russian Academy of Sciences: ‘’My department is very young, consisting mainly of recently graduated students and current PhD students. If you trust these guys you will find they are capable of doing really interesting and professional
Energy Academy Europe
Current members of the International Advisory Board:
Joan MacNaughton
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Nawal Al-Hosany
Hans Peter Beck
Ken Koyama
Giacomo Luciani
Energy Academy Europe
Energy Academy Europe work. The more students participate in the real research the faster they learn.” Malcolm Wilson, a leading expert on carbon capture and storage from Canada, says the insights and experience of the older generation, particularly from industry, need to be passed on but shouldn’t necessarily be taken as gospel: ‘’Younger people need to keep challenging old beliefs. I have heard people in the industry say so many times ‘that can’t be done; I looked at that 30 years ago’. But I always say that times have changed and technology has changed. What didn’t work 30 years ago, might now be achievable with new materials, better simulators and so on.”
Part of this new way of thinking is the integrated, multidisciplinary approach the EAE is advocating, according to Hans Peter Beck, chairman of the Energie Forschungszentrum Niedersachsen: ‘’The young people who would like to work in energy must be aware that, in the field of energy, different disciplines must work together; otherwise there will not be an optimal solution.”
Board members also speak of the enormous challenges young energy professionals are facing. Ken Koyama, managing director of the Institute of Energy Economics in Japan: ‘’The future is in the hands of the young generation, but the answer to the energy problems has become increasingly complicated. Deep knowledge and insight is really necessary to address these complex challenges.” And because of this complexity, a new way of thinking is required, says Petter Nore: ‘’There is a true revolution happening in the international oil, gas and energy business and its interaction with climate issues. We are moving to a much more decentralised energy system. That is a starting point for a different way of thinking about energy.”
Claude Mandil
Tatiana Mitrova
Petter Nore
Malcolm Wilson
Wu Jianmin
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Ehendandent Energy Academy ra cuptatem Europe ut por
New Managing Director, Bert Wiersema:
The Energy Academy Europe has made great progress The Energy Academy Europe has been very active and laid a solid foundation for its future. Its new Managing Director, Bert Wiersema, is tasked with expanding the Academy and further developing its education and research programmes. “We have made great progress,” says Wiersema. “First of all, we gave the Academy a lot of exposure to establish our presence with businesses and other knowledge institutes, within the Netherlands, but also abroad. We have set up a wide range of education and research programmes and sorted out their funding. We’re also working hard on innovation projects and developing new initiatives. The new research projects that are now being submitted will be linked to new chairs at Groningen University and lectorates at the Hanze University of Applied Sciences.” It is crucial to keep in mind that the EAE has been established as a result of market demand, says Wiersema: “We need people for our energy
Energy Academy Europe
future and energy has become a lot more complicated than it used to be. There is a
growing demand for specialist knowledge but, at the same time, more interdisciplinary approaches and solutions are needed. That is why we need what we call ‘T-shaped students’ – students who will combine specialist knowledge from their own field with generic skills and insights. Our first task is to get the numbers of students in – 3,000 in 2022 is what we’re aiming for. We are always on the lookout for new partners in industry to help us accomplish our mission. International contacts and a good international reputation are crucial too, as we’re aiming to increase the number of foreign students. We’ve got several new international partners from just over the border in Germany, in Saudi-Arabia, Texas and China. Those are all on top of the contacts we already had via the universities. And we’ve got our International Advisory Board with their huge network all over the globe.”
“The Academy is offering a wide range of programmes and courses, but as we are a market-driven institute, we need to think about our direction and emphasis together with our partners from industry. I think
‘system’ is going to be one of the buzzwords. The energy networks of the future are replacing the traditional fossil energy structure. More knowledge is needed to manage the increasing interconnection between energy suppliers and consumers and all the networks in between, both centralised and distributed networks. This requires knowledge at industry level but also at system level. This System Integration will be one of the themes of the upcoming Energy Convention. Another major development is the construction of new wind farms. Together with the Energy College we need to train the professionals who will build and manage these. “
“Public engagement or energy consciousness is another theme we’re focussing on. Energy companies can no longer take the license to operate for granted. There are bottom-up initiatives impacting on the system as a whole. How do civil society and industry react to these changes? We need a systematic approach and one of the ways we are engaging in this is our Energy Sense project, which is researching the energy behaviour of 10,000 households.”
S AVE
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Energy Convention
DATE
18th and 19th of November 2014 in MartiniPlaza Groningen
Energy Academy Europe
Energy Academy Europe is the centre of excellence for Energy Education, Energy Research and Energy Innovation. Please make a note in your agenda:
Energy Convention 2014
powered by the Energy Academy Europe 18th and 19th of November 2014 in MartiniPlaza Groningen Marking the 400th anniversary of the University of Groningen
The Energy Academy is founded by
HOMA BV
Enabling flexibility in power generation: Virtual Power Plants and micro-generation On June 10th 2013, Maria van der Hoeven, Executive Director of the International Energy Agency, emphasized the need for proper policies and investment in technology in order to tackle climate change – “one of the defining challenges of our time”1. The UK Department of Energy & Climate Change reported in 2011 that meeting climate change goals“will require a transformation in how we produce energy”and pinpointed the role of micro-generation - producing energy through “small-scale renewables and low carbon technologies” - in this transformation.2
Simon Kolin, founder and CEO HOMA BV Photo courtesy of HOMA BV
Micro-generation and VPPs One of the challenges of micro-generation is the integration of small-scale generators into electricity networks.3 In this sense, Virtual Power Plants (VPPs) can provide an elegant, ICT-enabled solution. A VPP can be seen as a coalition of highly available, least destructive sources of energy “coming together to maximize energy output and minimize environmental damage”4. By linking large numbers of distributed devices that generate and/or consume electricity, energy sector players are able to operate these devices in a coordinated manner and unlock previously untapped economic benefits. According to Simon Kolin, founder and CEO HOMA BV, VPPs are currently becoming viable in the domain of micro energy assets, having previously been available only in the domain of mini/medium size distributed assets. A production asset can be a solar panel on a roof or a micro CHP appliance in a cellar. The consumption side could be represented by a fridge or a heat pump. Electricity and gas metres are on the measurement side.
ICT-enabled transformation The advent of micro-generation is not without its complexities. Energy companies will need to adapt their “megawatt ways to kilowatt-thinking and this is a whole new challenge,” Mr Kolin remarks. Noticing the need for such a transformation of the energy sector and anticipating the repercussions, Mr Kolin started his company, HOMA BV, in 2004. His aim was to provide the right information and communication technology for micro-generation systems. Nowadays, the company’s technology makes it possible to effectively apply concepts like micro-generation, smart grids and smart homes, which are still in their
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infancy on the market. HOMA develops ICT platform solutions for controlling and scheduling great numbers of micro energy assets, helping energy companies to build new business models. With the help of HOMA’s technology, a VPP can be created by linking numerous devices that can generate or consume electricity. As Mr Kolin notes, in many cases, “customers already have an overarching idea about what they want to do in terms of new business development, but they often need technical assistance and guidance”.
Energy companies will need to adapt their megawatt ways to kilowatt-thinking and this is a whole new challenge. In terms of projects, HOMA partners with leading utility companies and research institutions in the fields of information technology and computer science. This approach was taken right from the beginning, when Mr Kolin chose Enschede, in the Netherlands, as the location for HOMA due to the competence and cooperative stance shown by the University of Twente in the context of the technical development of the company. At the moment, HOMA is also involved in EU sponsored projects. Interreg is one of the programmes the company participates in. In the Interreg project, the focus is on ensuring that there is sufficient capacity and knowledge for the installation of new micro-generation technologies. Currently, the main market for VPPs is Germany, where the focus on these systems is more commercial than in other EU countries. “Within Interreg we work in cross-border cooperation with German and Dutch players,” says Mr Kolin.
Additionally, HOMA is involved in the SOFT-PACT project (also an EU sponsored project), which is demonstrating the viability of intelligent solid oxide fuel cells and integration of these into VPPs. The efficiency of the solid oxide fuel cells is exceptionally good in lab settings (up to almost 60% efficiency). Demonstrating such cells in a micro CHP application is the overall goal of SOFT-PACT. HOMA is providing the ICT for the monitoring and bundling of the fuel cell based micro CHPs.
Outlook HOMA’s vision and plans are to enable the integration of micro assets into VPPs and become a leading player in this field. VPP based on micro assets are relevant for certain regions of the USA, where Mr Kolin sees potential. China and India would follow as possible markets, since they need to satisfy growing energy demand and energy efficiency and reliability targets. Nevertheless, increasing the reach of VPPs based on micro-generation is not dependent on suitable ICT alone. As any system transformation, increasing VPP usage requires a change of perspective and more flexibility from governments, energy companies and consumers. For more information visit homasolutions.com or send an e-mail to contact@homasolutions.com WEO Climate Change Excerpt Launch, Opening Remarks Maria van der Hoeven, June 10th 2013, www.iea.org 2 Department of Energy & Climate Change, “Microgeneration Strategy,” 2011, www.decc.gov.uk 3 C.N. Jardine and G.W. Ault, “Scenarios for examination of highly distributed power systems,” 2008 4 S. Carr, “Virtual Power Plants,” International Journal of Scientific & Engineering Research, Volume 2, Issue 8, 2011 1
Plugwise & enie.nl
The future of energy monitoring in today’s buildings Buildings are large energy consumers. The International Energy Agency (IEA) reports that one third of the end-use consumption of energy is associated with residential, commercial and public buildings in its member states. Additionally, buildings put a strain on energy resources and are responsible for an important part of total carbon dioxide emissions. IEA emphasizes the importance of analysing how energy is used in this environment. (www.iea.org) Energy monitoring systems are set to play an increasingly important role in making buildings more energy-efficient. Plugwise is a Dutch company that has been designing, developing and producing wireless energy management and control systems for buildings since 2006. The company is dedicated to providing meaningful insights into the energy consumption in buildings, along with innovative solutions for improving building energy efficiency both in the residential and business markets. The Plugwise monitoring and control systems allow organisations and individual consumers to save from 10 to 40% of the energy used in buildings.
The solution for easily monitoring your solar panels It all started with the “plug”. When the company began its activities, Plugwise had a vision: to develop a revolutionary nonexisting product for a non-existing market. “We developed the plug, which is a piece of hardware that measures appliances and also has the ability to set time schemes in order to switch off appliances and save energy. We call this ‘micro-metering’.
Then, we developed a bottom-up scheme for measuring energy usage. Now, we can provide a total energy monitoring solution and also the possibility to save energy. We measure, we switch and we save,” explains Olivier van der Burgt, Commercial Director at Plugwise. The company was initially active in the B2B market. This was due to the high potential for energy savings in this market, with 43% of energy used outside office hours and the prospect of saving 35%. Plugwise has been thriving and extending its activities overseas. The company has a fully-automated production facility in Eindhoven, in the Netherlands, and is now also located in Germany and Australia. Plugwise has created a low-cost system that is easy to implement and incredibly adaptable. The system has no troublesome cables lying around and is independent of energy companies. Monitoring is done around the clock and alerts are sent to the users through the Plugwise App on the tablet or smartphone – the App works on all operating systems – or through the Plugwise software, called Source, on the PC. Moreover, the plug is independent of protocols, as well as adapts to any inverter, making Plugwise your ultimate partner for solar PV usage. “We offer a total energy monitoring solution, usability and reach. By ‘reach’ we mean reasonable pricing that makes our solutions available to almost anyone,” remarks Mr Van der Burgt. In addition, the company’s speedy and wellstructured R&D process allows at least one product introduction every quarter. On the international scene, Japan provides the fastest growing export market for the Dutch smart plug innovator. After the Fukushima catastrophe in 2011, the Japanese government started to enforce strict measures for energy consumption and energy efficiency. This is how Plugwise entered the market and began to thrive
there. The Plugwise smart plugs and the digital meters enable Japanese companies to monitor and control their energy consumption. Both the smart plugs and the digital meters of Plugwise are the perfect solutions for enabling Japanese offices and households to monitor and to control their energy consumption.
“We measure, we switch and we save.” In the Netherlands, Plugwise has teamed up with enie.nl. This innovative advisory organization is providing highlycompetent services and insights for the Dutch solar energy market. enie.nl has recently introduced a new concept, in which the Plugwise PV monitoring system is integrated. Based on the enie. nl advice, output prognosis and the monitoring system of Plugwise, enie.nl is able to guarantee a certain output. If the prognosis isn’t met, enie.nl will give a financial refund. Experts are enthusiastic and they expect that this new concept will bring the solar market to a higher level and create extra certainties for the endusers of Plugwise and enie.nl. The future looks very promising for Plugwise. Next year, the company will launch a unique solution that allows monitoring and controlling of every air conditioner. Given the fact that there is a potential to decrease air conditioner energy consumption by a factor of six, the launch will give Plugwise the possibility to contribute even further to making the global built environment sustainable. For more information visit: www.plugwise.com enie.nl
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Ballast Nedam
Revolution in Cooling Water Systems The world’s population is growing. With it, the demand for energy is increasing. Industrial plants around the world carry the burden of meeting humanity’s rising demands, but they come with requirements of their own. Cooling is a very important one. Ballast Nedam is a globally renowned company that, for the past 20 years, has been designing and implementing custom-designed cooling systems that use water. These Cooling Water Systems are usually situated at the periphery of a power plant. They extract water from natural water sources, deliver it to the plant and safely return the used water to the environment.
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he knowledge and vast experience in designing and building Cooling Water Systems (CWS) makes Ballast Nedam stand out from its competitors. Focusing ultimately on the clients’ needs, listening to their demands and working with them, rather than for them, allowed the company to transform itself into one of the leaders in building CWS. For Ballast Nedam, CWS require integrated engineering and construction, and should have a system-based approach. “Due to the fact that no two locations are the same, no two cooling systems are identical. There is always a difference due to factors like local legislation, the geography of the site for the plant and its proximity to the water source,” explains Paul Slot, Director Ballast Nedam Industriebouw, the company’s industrial construction branch.
Nuon Magnum Power Plant, Cool Water Outlet, in Eemshaven, the Netherlands Photo Koos Boertjens
Ballast Nedam makes respecting the environment an item to discuss in all its activities. To illustrate, the CWS created by Ballast Nedam Industriebouw ensure safe removal of fish when water is taken in for power plant cooling. The built-in fish-return system makes sure all living organisms in the used water are safely returned to their ecosystem. The company cooperates with a variety of partners, from technical experts to ecologists, in its projects. Furthermore, coming from
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a country that is home to numerous companies which excel at meeting strict environmental requirements, Ballast Nedam Industriebouw finds it easy to encounter the necessary knowledge partners in the Netherlands. This also allows the company to be successful in international projects, helping clients with everything, from the initial design, to doing the necessary legal formalities and acquiring the right permits for plants to be operational. Constructing CWS is a risky business. Ballast Nedam Industriebouw has to be able to predict possible complications that, to a large extent, stem from the abundance of governmental requirements and the need to comply with regulations. While meeting the requirements, carrying on with the project might be delayed. Mr Slot: “All these steps, from design to complying with all applicable regulations, have to be fulfilled when constructing CWS in a professional way.” For Ballast Nedam Industriebouw being professional also means accounting for system integration while looking into the client’s needs and requests. CWS may look simple, but they are the result of truly sophisticated work. Large costs are involved in constructing these systems, some of which are indirect, like the ones related to taking the necessary pre-construction measures. Other costs include optimization and maintenance expenditures. “If you look at power plants, the cooling systems are the most risky part of the whole construction, in terms of both time and costs. But, our experience allows us to offer clients the right services that would help them mitigate their risks,” notes Mr Slot. In terms of sustainable projects, the Nuon Magnum Power Plant located in Eemshaven, in the Netherlands, is the company’s pride and joy. The plant, which has been recently handed over to the client, is one of the most innovative projects Ballast Nedam Industriebouw has completed to date. Due to incredibly
Biomass Power Plant “Bio Golden Raand,” in Delfzijl, the Netherlands Photo Koos Boertjens
strict environmental requirements, particularly the Nature 2000 programme of the European Union, Ballast Nedam Industiebouw had to invent and employ completely new measures for CWS optimization. For example, the company had to reform the water outfall to have a lower speed that would comply with the permits of the area.
“Due to the fact that no two locations are the same, no two cooling systems are identical.” Mr Slot remarks that being environmentally-friendly is no easy financial burden. “The client might be constrained by competition to deliver power at a very low cost.” Thus, the client might opt for minimum compliance rather than the most innovative environmentallyfriendly option. Nevertheless, whenever it is possible, Ballast Nedam Industriebouw substitutes conventional steps with more innovative solutions. Mr Slot: “We always try to push the design to a new level of environmental consciousness.”
FrieslandCampina
FrieslandCampina: Energy efficiency and CSR boosted by technology The food industry provides excellent examples of why the energy-food-water nexus is so important in the pursuit of sustainability. FrieslandCampina illustrates this concept in full. The company is a major global player in the dairy industry and has the right technology and vision to see that the nexus is accounted for in every process. Furthermore, the organization is known for its strict product quality and safety requirements as it targets vulnerable groups including infants and those with health issues. The company produces high quality ingredients for dairy, infant, medical and nutrition markets around the globe, while raw materials include primarily milk and whey. Karel Horn, Director Technology FrieslandCampina
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rieslandCampina is well underway to incorporating sustainable practices in all its operations. The company integrates technologies such as energy efficient spray towers, evaporators and advanced process control systems in order to continuously improve the way it uses energy and water as well as the quality of its products. Karel Horn, Director Technology at FrieslandCampina explains how such a product-oriented industry turns its attention to sustainable processes and why this is a must for the future. For Mr Horn, the key to developing sustainability within the food industry, dairy in particular, is to train technology experts to understand the production process so they can connect technical innovations and make operations more energy-efficient and sustainable. This is how Mr Horn believes that the company he represents can further innovate and improve its activities. One of Mr. Horn’s biggest responsibilities is to enable innovation by continuously challenging the technologists he is leading. But, perhaps the greatest challenge he encounters in his work is the rapidly increasing demand for FrieslandCampina’s products, especially since the phasing out
The body of a spray-drier, FrieslandCampina Photos courtesy of FrieslandCampina
of milk quotas in the EU – these quotas will be eliminated by 2015. This increasing demand calls for a simultaneously increased capacity of many production lines. Another challenge is posed by the limitation of the high quality product standards on the speed and quantity of production. “In order to ensure the ever increasing quality levels meet market demands, production processes have to be constantly improved and so is the environment,” remarks Mr Horn. By the environment, he refers to the quality of the production buildings but also the quality control levels of the processes themselves, which have to be regulated in order to deliver high quality goods derived from milk and whey. Naturally, sustainability has to be incorporated in the entire chain of production, from cattle feed to the final products. This is the only way FrieslandCampina can optimally operate in the Netherlands, once the EU regulations on milk quotas will disappear, believes Mr Horn. With the challenges of increased demand and high quality, come energy and water usage challenges. Currently, FrieslandCampina has developed new spray towers that reduce energy
consumption by 25% per kilogram of product and use water more efficiently. The company has also recently introduced advanced process control systems that further reduce energy consumption by 10% and increase the stability of processes. One of the remarkable newly introduced technologies is the new evaporator in Bedum, the Netherlands. The evaporator is considered the largest in the dairy industry in Europe, extremely energy efficient and able to handle the complete range of goods produced by the company in Bedum. All these technologies reduce energy consumption in the whole production process. Likewise, knowledge sharing and best practice exchange are critical to the organization’s success. In line with this, the dairy giant has launched sustainable initiatives for establishing an international community for technical experts to share insights on how to improve green practices. Furthermore, FrieslandCampina’s CSR plan extends across all aspects of the complete chain of production, allowing sustainability to thrive. Mr Horn explains that the company starts by looking at the farms but also at the producers with which it cooperates. Then it asks questions like “What can the organization do to reduce the overall load on the environment?” Finally, FrieslandCampina encourages young technical talent to join its challenges. Mr Horn observes that many people do not recognize yet that technical experts can add a lot of value to the production processes in the dairy industry. “We need to break down our processes and restructure them in a sustainable manner. In this sense, I think the dairy industry is a very interesting playing field for young technologists. This is an exciting working environment,” concludes Mr Horn.
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Cofely
Cofely fosters sustainable innovation in energy Governments and local authorities in Europe and around the world are striving for an integrated approach to tackling climate change and pursuing sustainability. Such complex issues require multifaceted and integrated solutions. Cofely – subsidiary of GDF SUEZ – understands such an approach. The company uses effective communication, advanced technological applications and extensive financial and management knowledge to facilitate clients in achieving their performance targets in line with sustainability-related goals. Cofely delivers intelligent customer solutions in the areas of Energy Efficiency, Asset Efficiency and Human Comfort, while focusing on innovation and having a long-term view.
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hen Cofely experts carry out a project, they strive to take all possible factors into account, from a client’s business model, to the drivers behind its operations. Such cooperation allows the company to create the most intelligent and efficient propositions to solve clients’ problems and meet their needs. Cofely is focusing on the markets of Oil & Gas, Chemical, Food, Energy, Education and Health. In the building environment there is large potential for energy savings and efficiency. “We have an extensive discussion with the customers about their buildings, their business model and assets. Then, our team of experts together with the customers and suppliers construct smart solutions to enhance the energy-saving potential of the assets. The solution is based on a thorough analysis of the energy behaviour in those assets, including waste and water treatment, lightning systems and heat and cold storage” says André Timmermans, Business Developer Energy, Cofely Noord BV.
The greenest cheese factory in the world being built by Cofely in the UNESCO world heritage landscape of Beemster, in the Netherlands Photo courtesy of Cofely
At Cofely, a high emphasis is put on cooperating with the right knowledge partners. In its recent efforts to foster more co-creations, Cofely launched The Green Quest, a campaign dedicated to helping
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companies reduce emissions and save energy as well as money. Within this project, the company has been working together with the Royal Concert Hall (Het Koninklijk Concertgebouw) in Amsterdam, Arriva and St. Elisabeth Hospital in Tilburg. In case of the latter, the initial proposal made by Cofely estimated the possibility of reducing the yearly building-related CO2 emissions by 33%, as well as optimizing energy usage and, in this way, allowing the facility to save money on energy bills. “This is a pilot project that illustrates what we can do. As a company we are changing rapidly. Fifteen years ago we focused on construction business, nowadays we are the frontrunners in sharing our knowledge of sustainability with the world,” notes Hilbrand Brands, Commercial Manager, Cofely Noord BV. To further illustrate the company’s capabilities, Cofely Noord, part of Cofely Nederland NV, is currently working on an elaborate project for the dairy industry: the greenest cheese factory in the world. The factory is being built by Cono in the middle of the UNESCO world heritage landscape of Beemster, in the province of Noord-Holland. The first estimations of the group of partners working on the project show that the factory will have the potential for saving 15% gas, 8% electricity, 76% tap water and 46% waste water in its processes and 200KW by using solar panels and biogas. Cofely Refrigeration, also part of Cofely Nederland NV, and Cofely Noord will provide the technical support systems for the factory. The ice water installation provided by Cofely Refrigeration will not only deliver its services to the production plant and the cheese warehouse, but also to the offices of the factory. The warmth of this installation will be re-used, for example, for cheese maturation. Another thrilling development for the company is the virtual power plant, known as the SLEM (Smart Local Energy Management)
Hilbrand Brands (left), Commercial Manager, and André Timmermans (right), Business Developer Energy at Cofely Noord BV Photo courtesy of Cofely
system, in which several assets will be connected to each other, while belonging to different companies. This idea is linked to the optimization of the power market and the decentralization of trading. “Our main ambition is to develop and implement sustainable solutions in our chosen markets. In ten years, we aim to be the main supplier of customer-based services related to sustainability, energy and ICT on the market,” remarks Mr Brands. Where ideas are rife, but practical solutions are not, Cofely reaches out to students, start-ups and small companies, seeking co-creations and co-productions. “Whenever students or other companies have interesting ideas, we are glad to help them bring their plans to a more mature level. We can provide support as well as financial means to develop these ideas into energy solutions. GDF SUEZ is one of the largest companies in the energy sector. This means that we have responsibilities in terms of helping the sector improve and innovate,” concludes Mr Timmermans.
Phase to Phase: Software for tomorrow’s energy Phase to Phase develops advanced software for calculation on electricity and distribution grids. Combining state of the art knowledge of mathematics, physics and ICT, Phase to Phase creates solutions that help its clients keep their energy infrastructure up-to-date, and that allows them to either follow or lead present and future developments in the European energy supply. Phase to Phase is an Arnhem based independent software developer, where a small team of experts on mathematics, physics and ICT work on software for transport and distribution grids for electricity. For more than twenty years grid operators, industry and consultancy firms have relied on our products for the planning, design and operation of electricity grids.
Vision Power Range Phase to Phase provides an extensive range of software for grid design and grid management: Vision Power Range. Vision Power Range is built around Vision Network Analysis, a complete solution for transmission, distribution and industrial power systems analysis. Intensive contact with our users allows us to constantly improve and expand our software with new options, like Vision Fault Finder, Vision Power Quality and Vision Cable Analysis. Focusing on user friendliness, we developed Vision Grid Navigator, fast 3D presentation of distribution networks, including calculation results on a geographical base.
Vision Mobile By developing a client-server version of Vision Network Analysis, Phase to Phase makes live network data available for mechanics on the road. A light weight iPad native application displays both schematic and geographical network visualizations calculated by the server.
These days everybody needs knowledge about electricity Due to the emergence of distributed generation, solar panels, electric vehicles etc., the load flow of present day distribution grids has thoroughly changed. Since individual consumers are now generating their own power, they need some understanding about electricity and electricity networks. In order to provide them with insight concerning the possibilities and limitations of the grid, Phase to Phase developed Vision World of Energy: a portable virtual distribution network that instantly makes clear what happens when too many neighbours start charging their electric car or install solar panels. On a larger scale, Vision World of Energy shows the regional or national effects of the installation of large windmill parks or the construction of extra power lines. Vision World of Energy is set up for workshops where up to 10 attendants – politicians, students or neighbours – can each control parts of an LV, MV or HV network. They instantly see and evaluate what happens in the grid when they connect windmills or start charging their electric car. The workshop leader can make adjustments to the infrastructure, and show the attendants that often there are no easy or cheap solutions to adjust grid capacity. Vision World of Energy also shows that smart grid technology can fix some of the bottlenecks on the road to sustainable energy. For more information please visit www.phasetophase.com.
Utrechtseweg 310, 6812 AR Arnhem P.O. Box 100, 6800 AC Arnhem, The Netherlands T: + 31 26 352 37 00 / F: + 31 26 352 37 09 info@phasetophase.nl / www.phasetophase.com
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Vision
vision power range Vision Network Analysis Complete solution for transmission, distribution and industrial power systems analysis.
Vision Grid Navigator Fast 3d presentation of distribution networks including calculation results on a geographical base.
Vision LV Network Design Unique program for Low Voltage power systems design and analysis, including safety grounding.
Vision Cable Analysis Practical software for calculating the current rating of cables according to IEC standards.
World of Energy These days everybody needs knowledge about electricity With Phase to Phase’s new program Vision World of Energy you can instantly provide diverse audiences – neighbours, students, politicians – with up-to-date insight about the possibilities and limitations of the grid. Play the energy game Vision World of Energy is a portable virtual network that is set up for workshops. Up to 10 attendants each control parts of the network and instantly see the effects of their actions in local, regional or national grids. In the process they’ll learn how costly it can be to enlarge grid capacity, and how smart grid technology can advance the transition to sustainable energy. Phase to Phase – Arnhem, The Netherlands – www.phasetophase.com
phase
phase
Phase to Phase develops advanced software for calculation on electricity and distribution grids. Combining state of the art knowledge of
mathematics, physics and ICT, Phase to Phase creates solutions that help its clients keep their energy infrastructure up-to-date, and that
allows them to either follow or lead present and future developments in the European energy supply.
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Vision Fault Finder Automatic location of faults in medium voltage distribution systems with buried cables.
Vision Power Quality Clear interpretation and presentation of PQ measurements in a uniform classification system.
Vision Mobile All network files available online for task oriented applications on iPad; calculations on powerful web server.
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Vision World of Energy Instantly provides diverse audiences with insight in both limitations and possibilities of HV, MV and LV networks.
A double-lens view on the futu
Shell has decades of experience in creating scenarios for the world’s energy markets. The company’s latest expectations regarding the future of the global energy system are illustrated in the New Lens Scenarios, labelled “Mountains” and “Oceans”. Looking towards the consequences of humanity reaching 9 billion by 2050, Shell estimates that global energy demand can increase by as much as 80% by mid-century. Ewald Breunesse, Manager Energy Transitions at Shell Nederland B.V. Photo and image courtesy of Shell Nederland
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Shell’s New Lens Scenarios
ure of the global energy system “First of all, Shell’s New Lens Scenarios sketch a possible and plausible future,” remarks Ewald Breunesse, Manager Energy Transitions at Shell Nederland B.V. According to Dr. Breunesse, “Mountains” is a rather top-down, conservative scenario about large-scale energy systems, where there is strong governance that can build infrastructure. Natural gas fits perfectly in such an outlook. At the other end of the spectrum, the “Oceans” scenario can be found. This scenario is more about microdecisions, markets and individuals. These individuals can buy solar panels and install them on their rooftops, for instance. Dr. Breunesse notes that there will be elements from both scenarios as well as other, new scenarios in the future of the global energy system. He continues by assessing the pros and cons of the New Lens Scenarios: “The good thing about Mountains is the possibility of creating large infrastructures, like natural gas grids, but also carbon capture and storage facilities. The negative aspect about this scenario is its slowness. It is rather a business-as-usual outlook. Mountains is policy-based. By contrast, the Oceans scenario accounts for the effects of individual decisions. The good thing about Oceans is its speed – millions and millions of people making their own decisions. This enables the existence of an innovative and very competitive world. Nevertheless, it will be very difficult in this scenario to create big structures. The lack of policy will be an obstacle in this respect. In fact, the two scenarios present an interesting view when assessed together, one very topdown and the other very bottom-up. They take the global energy system to extremes, providing valid learning points.”
It is easier to store electricity in the form of molecules rather than in the form of electrons. Secondly, simplified, the two scenarios focus on gas vs. renewables, a discussion that the energy system has been having for quite some time now. The question “Is it possible to completely replace fossil fuels with renewables in the next decades?” begs a distinction, which Dr. Breunesse can easily make: “We have to distinguish between clean energy and green energy. On the one hand, green energy is renewable and it is also very clean, but not always. Currently, there are debates around how clean renewables such as biomass and biofuels are. On the other hand, we have clean fossil fuels, like gas. Nevertheless, gas is non-renewable.
Thus, the discussion about replacing fossil fuels should be carried out taking into account this distinction: on the one side, clean energy, and, on the other, green energy.” Continuing the gas and renewables conversation, Dr. Breunesse clarifies that, technically speaking, it is possible for humanity to switch to a global renewable energy system by 2050. This is indicated by the rapid development of wind turbines, solar cells, hydropower and other sources of renewable energy that can be seen around the world. However, this technical possibility is not without its challenges. “The biggest challenges stem from the fact that renewable energy is intermittent, it lacks large-scale storage options and it has limited transportation possibilities. Looking at these problems, you have to consider that fossil fuels have to remain in use to provide a back-up for the global energy system, for the decades to come,” pinpoints Dr. Breunesse. With these challenges in mind, Shell has developed its own approach to a resolve. The company has been working on solving the problem of storing renewable energy through “Power to Gas”. To elaborate, in the traditional “Gas to Power” concept, gas is burnt to create steam, which in turn powers up turbines that produce electricity. In the new concept, the gas is either an end-product or a temporary product, when it is used for storing energy for later usage. “We split water into hydrogen and oxygen through electrolysis by using the excess electricity from intermittent renewable resources, i.e. wind and solar. The hydrogen can be fed into the gas grid directly or, if economically viable, converted into methane by using carbon dioxide. We think it is easier to store electricity in the form of molecules rather than in the form of electrons,” explains Dr. Breunesse. “Renewable energy has to be undisputed, but at this moment, solar energy is probably the closest one to being that,” says Dr. Breunesse. Moreover, public acceptance of renewable sources needs to increase: “The higher price of renewable energy, compared to traditional sources of energy, is an important factor for industries such as steel production or aluminium smelting. This is why they choose for affordable fossil fuel energy. Nevertheless, the bridge between fossil resources and renewables can be built by means of setting a price for CO2 emissions. If carbon dioxide were to be priced with around 50 or 70 euro per tonne, the actual price currently being less than 5 euro, then companies worldwide would make different choices in terms of energy usage
and CO2 emissions. As long as the price remains low, nothing will change.” Dr. Breunesse suggests that, in the meantime, since a global carbon system with unified pricing is not easy to implement, a solution might be to unify groups of countries, for instance, to have the European market with one carbon price and to impose a carbon tax on imported products that come with a different carbon price.
Moving from emissions issues to lack of energy problems, the UN-supported goal of providing “Sustainable Energy for All” by 2030 has been launched two years before. In light of the growing population of the planet, this is an especially interesting goal. Dr. Breunesse comments that it is up to the advanced nations to develop solutions that will be used locally in the impoverished regions. “For these regions, I would expect local power generation is the best solution where there are no power grids yet. At a certain point in history, the developed world also started locally.” Last but not least, Dr. Breunesse emphasizes that providing power to the impoverished is not a one-line solution: “There is a strong relation between energy, food and water – what we call stress nexus at Shell. This means that we have to look at global challenges in an integrated way.” Hence, only providing local energy to those that have none will not suffice as a long-term solution.
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Back to the future with Wu Jianmin
Back to the future
with Wu Jianmin
Did you ever wonder what defines a great career, what people to whom we look up have to say about global issues and what kind of advice they can provide for young talents, just beginning their professional path? In this edition, Wu Jianmin, Chinese diplomat with over 42 years of experience and Deputy Chairman of the China Institute for Innovation and Strategy Development discusses the role diplomacy can and will play in the restructuring of the world energy system and shares his thoughts on the importance of clean energy, innovation and talent. Photo courtesy of Wu Jianmin
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Back to the future with Wu Jianmin
A
[Bio]
mbassador Wu sees clean energy as the necessary foundation for a new model of interaction between nations, where the old paths of conflict and blood-spilling are forgotten. “The world is on the eve of a new industrial revolution, to which clean energy is the key. Energy is the guarantee for world peace and common prosperity,” he remarks. Ambassador Wu speaks from practice, as he has himself witnessed how energy cooperation prevented China and the USA from having a major confrontation, typical for a “rising power and an established power”. Coming from a country with a population of 1.3 billion, and still rising, Ambassador Wu has a distinct understanding about the role of energy in the lives of his compatriots, some of whom still live on less than two American dollars a day. “Human beings are born equal, but equality is not abstract. If people don’t have access to energy, how can we talk about equality?” he states. Even though China has already succeeded in lifting 600 million people out of poverty, Ambassador Wu is sure that further eradicating income disparities will be the Chinese contribution to the UN Millennium Goals. “People’s mind-set usually lags behind reality. In the modern relations between states, we still see a lot of Cold War mentality manifestation. Past wars are still fresh in our minds.” In his view, diplomacy has the potential to make the current mind-set correspond to reality, as it is meant to facilitate global cooperation for the common good of all peoples. He notes: “We were very moved when Tokyo offered assistance to Beijing in combating smog, disregarding the tensions between our countries.” This is a testament to the idea that relations among countries are not confined to politics anymore, they have spilled over into so many other fields. Energy is one of the most important such fields.
“Human beings are born equal, but equality is not abstract. If people don’t have access to energy, how can we talk about equality?”
From his impressive diplomatic career, Ambassador Wu proudly recalls the time he was serving in France, which was a remarkable learning experience: “China attaches great importance to the relations with countries it cooperates with. France is of particular significance, since it was one of the first countries to establish diplomatic relations with China after the war.” During his service in France, Ambassador Wu did everything possible to enhance and develop mutual cooperation. Also during that time, he enabled China to host the 2010 World Expo. “One of my missions during my time in Paris was to take the 2010 World Expo to Shanghai. At that time, China was bidding for this position along with four other countries. In this sense, the Chinese Embassy did a great job in keeping in touch with delegates and explaining the reasons for which China chose to bid for hosting the World Expo in Shanghai. I am proud we won the bid in 2002. This was a win-win situation for both China and the international community.”
Wu Jianmin at the UN Security Council (1972) Photo courtesy of Wu Jianmin
Wu Jianmin (1939) is a Chinese diplomat and a prominent public figure with over 42 years of experience. He spent 25 years serving oversees in countries like France, Switzerland and the Netherlands and he was part of the first Chinese delegation to the United Nations in 1971. Having retired from Foreign Service in 2003, Ambassador Wu headed the China Foreign Affairs University. He is now Deputy Chairman of the China Institute for Innovation and Strategy Development, responsible for important initiatives such as China-US Clean Energy Forum, organized twice, in 2009 and in 2011. Ambassador Wu is convinced that the institute can help enhance mutual understanding and strengthen cooperation between China and the rest of the world. He predicts the rise of diplomacy and a new world model, where clean energy will be part of the foundation.
[Tip for Talent]
“Go East! Asia transformed itself into the centre of the global economic growth, and East Asia, especially, is the most dynamic and the fastestdeveloping region in the world. As China keeps on growing, the Chinese market is rife with career opportunities, and the country needs talents from around the globe to tackle the many challenges it faces.”
On a final note, the ambassador cannot avoid referring to the challenges brought on by climate change, which in his view is one of the most serious trials humanity is facing at the moment. When it comes to climate change, China is in a difficult position as the world’s main CO2 emitter. Ambassador Wu remarks that the Chinese government is putting consistent efforts in solving this problem. The country has invested 5 billion renminbi (over 600 million euro) to tackle the smog caused by carbon emissions. China made impressive economic progress in the past decades. Nevertheless, the country has been paying a heavy price for its rapid industrial development. Now the government is aiming at a shift towards a more sustainable model. “Balance has to be found between consumption, investment and export,” emphasizes Ambassador Wu. NRG Magazine Edition 12 | 43
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Wanted: Engineers to create clean, affordable and reliable energy for all! Worldwide, engineers are working on creating a more sustainable society. The Royal Institute of Engineers in the Netherlands KIVI NIRIA is the place where engineers come together to share their knowledge, expertise and experience on a variety of technical topics including energy. KIVI NIRIA combines all engineering disciplines. The institute’s objectives are to create a platform for engineers to exchange knowledge and experience, to promote the importance of technology in our society and to provide professional services to its members.
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IVI NIRIA highly appreciates the process organized by The Social and Economic Council in the Netherlands (SER) in the last six months to come to an energy agreement for sustainable growth. Throughout the country, meetings were organized to encourage different parties and stakeholders to exchange ideas. In addition to the meetings, there was a possibility for everyone to share their thoughts on an online platform. Finally, more than 40 contributors consisting of businesses, governmental and environmental organizations, came up with an energy agreement for sustainable growth. The agreement deals with targets and actions concerning the reduction in energy use, the increasing share of renewable energy in our energy mix, and the effects on our economic and labor markets. KIVI NIRIA appreciates the excellent focus on reduction of energy in industry and built environment in this agreement. It is a simple fact that each Joule saved does not have to be generated, neither by fossil fuels nor by renewable energy sources. According to KIVI NIRIA, an energy reduction of approximately 50% in 2050 even seems possible, mainly in the form of heat. Dutch companies are strongly involved in energy reduction measures which will subsequently create many jobs. KIVI NIRIA is, however, critical on the stated ambition for offshore wind energy. The investment is particularly high and
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is likely to repress investments in other necessary routes for sustainability. The social acceptance of the substantial investment in wind energy should also be addressed. Additionally, solutions that significantly improve the electrical infrastructure are necessary to cope with the large fluctuations in power generation by wind turbines. The transmission of all wind electricity through the grid has to be guaranteed or it may be wise to delay the construction of new turbines. A European perspective is needed to take on the challenges of transporting renewable energy through the grid. For example, excess wind and solar energy produced in Germany has negative effects on the possibilities to generate wind electricity in the Netherlands, in a profitable way. On a European scale the price of CO2 emissions is of great importance. This is exemplified through the shut-down of gas-fired power plants in favor of coal-fired power plants, due to the low price for CO2 emissions. Consistent long-term policy is needed to educate the many engineers necessary to take on these challenges, in order to have clean, reliable and affordable energy at one’s disposal on a level of municipalities, countries, Europe or even on a global scale. Also, the connection between education and the labor market can only be successful if the labor market provides a consistent long-term perspective. Furthermore, technological
innovation needs explicit attention in policy-making, besides the existence of a good connection between science and innovation policy. Research and scientific institutes worldwide should work together to contribute to a functioning economy, as well as a more sustainable energy system. The Netherlands and the world need engineers to assure access to clean, affordable and reliable energy for all through developments in wind energy, E-mobility, biomass, electrical infrastructure, geothermal, solar cells and many more. They will surprise us with new technologies and improvements in existing technologies. Engineers from multiple fields come together at KIVI NIRIA, generating ideas and sharing insights. For more information go to www.kiviniria.nl. You can also follow us on Twitter: twitter.com/kiviniria
Ensuring human capital to work for a sustainable and healthy future.
I am Looking for Talent Become a member of TTA World. Recruit the talents you strategically need and increase your competitive advantage.
www.tta-world.com
Talents in the Spotlight
Talents in the Spotlight 48 | NRG Magazine Edition 12
Only once in a blue moon do we meet top talents. Not only are they high achievers in their studies, but they also have unique personalities and bring added value to any company. From the NRG Battle 2013 Round 3 we chose four gifted individuals with an uncommon mixture of talents. For instance, the Strategic Talent, an interesting combination o efficiency and creativity, a unique blend of attributes, so rare and worth encountering in one person. You cannot see this in their rĂŠsumĂŠ or in their appearance. This is why TTA World uses the Big Five personality test to indentify these highpotential individuals. We think Jiajun, Silvana, Lisanne and Varun are real top talents. You can read their stories in the following pages. For more information about the way TTA World tests talent, please contact Geertje Dam at editor@tta-world.com
Talents in the Spotlight
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Talents in the Spotlight
“I am going to analyse transport phenomena in microfluidic systems and I attempt to develop advanced microfluidic technologies.”
“We need to promote mutual excellence, because together we can achieve more.” Jiajun Cen Team : FUJIFILM Study : Master of Science in Chemical Engineering at TU Delft, in the Netherlands Talent : Strategic Talent
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iajun Cen has a natural way of foreseeing future trends and bringing the most feasible ideas in the here and the now, with a structured plan. He is a true strategic talent. Strategic talents are very rare and should be nurtured. They are the bridge builders between those with a vision and the operational staff. Jiajun loves controlled and structured innovation and creation, which for some might seem like competing concepts. He obtained his Master of Science degree from the Delft University of Technology (TU Delft), with a specialisation in Process Engineering and a focus on applied mathematics, analysis and modelling of transport phenomena and reaction kinetics. In addition, he completed an honours programme that included courses on Photovoltaics and Nuclear Technologies. The ambitious talent founded an Honours Community consisting of the top 10% students of Leiden University and served as the president of the community for two years. As a member of the foundation council, his current task is to act as a facilitator and advisor for the current board members. He is also a board member of the Science and Technology Leadership Association (STeLA), an international network aimed at developing outstanding students’ leadership skills. At STeLA, Jiajun aims to teach and share with students the distributed leadership model that originates from MIT Sloan School of Management and Harvard Business School. Jiajun would like to have a leading role at a research institution and to combine leadership with his passion and love for chemical engineering. He imagines a world where elegant and efficient microfluidic technologies can produce chemicals in a sustainable way and make healthcare and diagnosis of diseases affordable for the lower-middle classes. “I am going to analyse transport phenomena in microfluidic systems and I attempt to develop advanced microfluidic technologies. In this manner, I hope to realise my vision.” This is why Jiajun applied for a PhD in Chemical Engineering at Imperial College in London. He wants to contribute to creating a peaceful and energy efficient world, in which science and technology are crucial elements. From his perspective, local policies in many regions on Earth are the bottleneck for a sustained development of the global energy sector. Jiajun thinks it is important to invest in nuclear technologies and make them better and safer. He also inquires about the reasons behind policies that prevent more developed foreign countries to deploy solar PV and solar concentrators in desert regions. The most appealing way to learn about multidisciplinary work is to be involved in a team project. This is what drove Jiajun to the NRG Battle, which is for him “a way to seek for opportunities and to push my limits, be out of my comfort zone and enter the learning zone”. His team came up with a conceptual design for the Blue Battery, which can store excess energy from solar cells during peak hours. The competition allowed Jiajun to put the distributed leadership theory into practice, so he could structure the brainstorming sessions, boost the workflow and do most of the design and the modelling work required to get the team into the finals.
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Talents in the Spotlight
“More than 15% of energy is wasted around the world. This can be changed if more value is given to the energy used every day.”
“Set your goals with the power of commitment, have the courage to pursue them and stand out.”
Silvana Gamboa
Team : Liander Study : Master of Science in Energy and Environmental Sciences at University of Groningen, in the Netherlands Talent : Multi Talent, with strong leadership and management skills
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ilvana is a powerful lady with strong ideals. One of her goals is to bring back knowledge to her home country, Peru. Silvana is a Multi Talent. This means she is a situational leader or a “master manager,” combining the drive for results, innovation, structure and team spirit. With a natural ease, Silvana is able to bring groups to results and coordinate their plans and actions at the same time. She graduated in 2012 as an industrial engineer from the University of Lima in Peru. After her graduation, she worked for a global environmental consultancy and assisted in the environmental impact assessment of energy related projects in Peru. Currently, Silvana is studying for a Master of Science in Energy and Environmental Sciences. Her interest in the energy sector started in 2009, when she participated in a national competition organized by Bayer S.A. (Peru) with her project “Energy Independency”. In this project, Silvana connected home production of renewable energy to smart grids. After doing research on her own and volunteering for environmental projects in Peru, Silvana decided she wanted to specialize in energy and work for a sustainable future. She came to the Netherlands in 2011 as an exchange student. The talent believes that transitioning into a world of renewable energy is one of the biggest challenges that the energy sector is facing nowadays. The development of smart communities where energy production is independent for every household is a good solution. In this way, consumers are also energy producers and can sell the energy they don’t use back to the grid. Another solution, according to Silvana, is to invest in environmental education for future generations. “This is important because more than 15% of energy is wasted around the world. This can be changed if more value is given to the energy used every day.” Silvana believes that international cooperation is very important in making decisions for future regulations and sustainable development. “The NRG Battle is more than a competition; it is an experience where you can meet people with the same interests as yours. The battle gives you the opportunity to network and to find solutions for real problems that people face daily. The proposed solutions might be able to bring a better future for everyone,” says Silvana. Her team Liander was challenged with finding a solution for a farmer who wanted to install solar panels on his roof. The capacity of the grid wasn’t enough to transfer all the energy generated and upgrading the grid was too expensive, hence a percentage of energy was wasted. The team made it to the finals with an idea called “Cloud farming”. Silvana thinks that the NRG Battle should be promoted with more strength in developing countries like Peru.
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Talents in the Spotlight
“Live in a liveable world.” “In order to get the same amount of energy out of renewable and sustainable sources, tremendously big investments have to be made.”
Lisanne de Rooij Team : FUJIFILM Study : Bachelor of Science in Technology, Policy and Management at TU Delft, in the Netherlands Talent : Multi Talent, with an accent on efficiency and collaboration
L
isanne is a Multi Talent. This is a unique talent because it combines the drive for results, efficiency, team spirit and innovation in one person. Lisanne can change her perspective depending on the situation. Does the situation call for quick and decisive action? Lisanne will push for results. Is the team in need of structure? She will make a controllable and structured plan, never losing sight of team spirit. Because of her ability to shift effectively between situations, she also brings out the best in others. People with this talent are often referred to as “master managers” (Robert E. Quinn, “Becoming a Master Manager”). The talent studies Technology, Policy and Management with a specialization in energy, industry and water at Delft University of Technology (TU Delft). Additionally, she is part of a DREAM (Dream Realisation of Extremely Advanced Machines) Team. Her team is called Eco-Runner Team Delft and is trying to design a hydrogen-powered vehicle, aiming to be the most fuel-efficient vehicle in the world. Lisanne wants to work for one of the leading energy companies. The energy sector has always attracted her, especially the renewable and sustainable energy sector. In her opinion, sustainable and renewable energy will be the future, but, in the beginning, only combined with fossil fuels. According to Lisanne, one of the biggest challenges the energy sector is facing right now is climate change. She notes: “In order to get the same amount of energy out of renewable and sustainable sources, tremendously big investments have to be made.” Lisanne is driven by the need for humanity to change its current energy usage behaviour. “To live in a liveable world, we cannot simply continue the current energy consumption without expecting drastic climate changes,” she remarks. Lisanne observes that the energy sector needs to look at different, out of the box renewable sources for energy and at clean ways to store the overproduction renewable electricity. During the NRG Battle, Lisanne and her team created a solution for FUJIFILM called the Blue Battery. “Our solution is a clean way to store electricity. Our focus was on peak-shaving the overproduction of renewable energy sources, such as wind and solar, store the electricity for the time being and get it out when needed. I’m very proud we made it into the finals of the NRG Battle Europe edition 2013,” she says. Her role within the team was to enable the creation of different perspectives on the problem at hand, when the rest of her team got stuck. The NRG battle was for Lisanne a great way of meeting people with a common interest in energy and exploring very interesting challenges. “I would summarize the NRG Battle as being very inspirational, and it has so far, opened a new world for me.”
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Talents in the Spotlight
“Be the change you want to see in the world.” (Mahatma Gandhi) “Lack of policies, not technology has hampered the usage of green energy.”
Varun Aiyar Ganesan Team : Liander Study : Master in Sustainable Energy Technology at TU Delft, in the Netherlands Talent : Management and Leadership Talent
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arun is a very gifted and talented individual. His aim is to implement structured and planned ways for deploying new technologies. Varun is a Management and Leadership Talent, making him into a leader that sees what needs to be done, not only on the executing side, but also on the political side of the spectrum. That is why he is currently pursuing a Master of Science in Sustainable Energy Technology at Delft University of Technology (TU Delft). He wishes to specialize in policy implementation and ways to successfully execute sustainable systems. Varun holds a Bachelor of Science in Technology in Mechanical and Energy Engineering from VIT University, India. He graduated with honours and specialized in the fields of: Energy Audit and Economics, Solar Thermal Energy Systems, Bio-Mass Energy Systems, Bio-CNG production and Hydrogen Storage and Generation. His thesis was in the field of Bio-CNG – converting biogas to CNG for cars. According to Varun, the crisis that we are facing worldwide, from global warming to economic meltdown, was caused by mismanagement of energy resources. Varun considers it his duty to be the change needed in the energy system. The talent has a clear career path in mind. With a sound technical background, he felt the need to develop new technologies. But, after working for quite some time, he realized that humanity has more than enough technology to achieve self-sufficiency on the renewable front. “Lack of policies, not technology has hampered the usage of green energy.” That is why Varun wants to utilize his knowledge to work with policy making divisions like the UN Energy or panels that bring a shift in mind-set through a shift in policy. Varun’s work track record is impressive. He developed an efficient electrolyte for SOFC (Solid Oxide Fule Cell), a rocket for atmospheric studies and he is currently working with a TU Delft Dream Team Vortex on a project related to a wind powered vehicle. He also designed and fabricated a new Adsorption Column for less than one tenth of the industry costs. He loves out of box ideas, like space-based energy harvesting with PV systems, “which could solve the world’s energy crisis for centuries to come.” Varun notes that, in order to have a sustainable development, governments should emphasize green energy projects, industries should be asked to submit a transition plan, the transportation sector needs better travel routes and vehicles that use hybrid technology and the world needs to transition to a Smart Grid system. For Varun, the NRG Battle is an immense opportunity to learn, implement, think and grow: “It had all the ingredients that would let me develop into an energy professional, with a much better and holistic point of view.” Varun remarks that his team had the right mix of talent, skills and knowledge. At the battle he had the task of looking into the technical and the economic feasibility of the plan that he and his team had created.
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NRG Battle - setting the trend by engaging the next generat Finals NRG Battle-Europe Edition November 19th 2013, 14.00-17.30 Springer Hall, MartiniPlaza, Groningen
It takes constructive discussions to convince the jury
T Together eam Liander boosting in novation
Round 1 Eindhoven
Round 2 Delft
Team Siemens: energy bank on the way to building a self-sustaining renewable energy community
Team ROSEN: offshore windparks in deep seas
Team Spirit IT: labeling electricity - how to use existing sensor Infrastructure to identify environmental footprint Team Sensor City Assen: ways to manage your personal energy consumption Team E.ON: ventilation of buildings using curtains of cool air
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FrieslandCampina: reusing residual heat from spray dryers - used in factories to make powder milk Team Siemens 1: new ideas on the transition to gas consumption Team Siemens 2: new ideas on the transition to gas consumption
d in energy tion
T
he NRG Battle-Europe Edition is the most talent-laden and vibrant energy competition in Europe. The event is a company-sponsored contest in which teams of top talents work on innovative solutions for the companies’ challenges. From each of NRG Battle’s three rounds, the jury selects the best five teams. The 15 winning teams from three rounds of the competition will present their polished solutions in a 5-minute pitch to an expert jury, at the NRG Battle Finals. Last year’s winner, Team FUJIFILM, constructed a game-changing closed-loop system that uses waste heat and FUJIFILM’s RED technology to generate Blue Energy. With this novel and useful solution Team FUJIFILM won the NRG Battle 2012 and a TV documentary on National Geographic, which was broadcasted in January 2013.
the teams will have had the chance to work on each of their ideas and improve the pitch. The jury selects the winners based on three criteria: utility, non-obviousness of character and novelty. The winning team of NRG Battle-Europe Edition 2013 will receive tickets to travel around the world!
The 2013 finals will take place during the Energy Convention, on Tuesday, November 19th 2013. In the period leading to the finals,
The winning team is announced at 17.30 in the main hall!
The NRG Battle-Europe Edition is an annual event, organised since 2009 by TTA World. TTA World has an intelligent database that ranks global top talents from all over the world to find the best of the best. TTA World offers companies the opportunity to accelerate their business and fill their teams with fresh, powerful and insightful minds. The NRG Battle is a trendsetter for new developments and ideas in the energy sector by engaging the next generation of energy leaders.
Round 3 Groningen Team enie.nl: fighting the uncertainties of the solar market in one package Team Liander: smart storage solutions for farmers and vertical farms Team Essent: a smart app and a game for collecting energy miles
nie.nl ! Team ew e won Yeah,
Team FUJIFILM: solve the problem of CO2 and air pollution with blue energy and enzyms Team FUJIFILM: the blue battery to enable electricity storage Team Liander: cloud farming as a solution for storing and reusing solar power
case g on the n i k r o W
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Susan Schwarte Team Leader of GasTerra Commercial Dispatching Centre
In a word, working for GasTerra is dynamic. No two days are the same! GasTerra gives you the opportunity to take up a range of different jobs, sometimes at an international level. For example, I worked for nearly a year in Paris and went frequently to Russia and Norway in my previous roles. Today I am Team Leader of our Dispatching Centre. Together we balance gas supply and demand. 24 hours a day, 365 days a year. Natural gas is the cleanest fossil fuel, so it’s a major step in the transition to a completely sustainable energy supply. That makes us part of the solution! www.iampartofthesolution.nl