REDPRO CLIMATE & ENERGY CONSULTANTS LTD (KENYA)

Proud, ecstatic and top of the world happy to have REDPro registered and officially incorporated in Kenya.
I am grateful to my children and friends in Greece for encouraging and supporting me in this and to my new friends in Kenya for making me feel so welcome.
#renewableresources #endfossilfuels #facetheclimateemergency #climateactionnow #notimetowaste

29 January 2021

Dr Ioannis Tsipouridis – General Manager of REDPRO

McKinsey: Low Cost Renewables Will Outcompete Fossil Assets By 2030.

The energy transition is accelerating. 2020 saw renewables replace fossil fuels in Europe for the first time and one of the many impacts of COVID-19 has been on energy demand. According to the latest research from McKinsey, demand for fossil fuels will never return to pre-pandemic levels.

McKinsey’s 2021 Global Energy Perspective report predicts not only that fossil fuel demand will not recover post-COVID-19 but that it is set to peak globally by 2029. The really big shift in energy demand though is expected to be towards electrification, and the report projects that power demand will double as this happens, with low cost renewables outcompeting fossil fuel assets by 2030.  It also projects that by 2036, half of the global power supply will be generated by intermittent renewable energy sources.

The shift in the energy mix is expected, not due to the behavioural shifts associated with the pandemic but rather “known” long-term shifts such as decreasing car ownership, growing fuel efficiencies and a trend towards electric vehicles, whose impact is estimated to be three-to-nine times higher than the pandemic’s by 2050.

Christer Tryggestad, Senior Partner at McKinsey, says: “While the pandemic has certainly provided a substantial shock for the energy sector across all fuel sources, the story of the century is still a rapid and continuous shift to lower-carbon energy systems”. She adds however: “The share of electricity in the energy mix is set to grow by around 50% by 2050 and it’s set to capture all global energy growth as hydrocarbon consumption plateaus. .”

The challenge is that while energy systems are shifting towards renewables and an earlier peak in hydrocarbon consumption will result in lower emissions, the global carbon budget for 2100 will have been used up at some point in the 2030’s.

As a result, while the earlier peak of hydrocarbon demand means a substantial reduction in forecasted carbon emissions, the world remains significantly off the 1.5ºC pathway and will run out of its carbon budget for 2100 in the early 2030s.

 

 

 

14 January 2021

Forbes

Cheap Renewable Energy Has Arrived.

The cost of renewable energy is now on par with natural gas.

At a time when the only climate-related news that gets relayed paints a bleak picture of our future on this planet, it feels good to share a positive story about how far science has come in renewable energy.

According to research conducted by the University of Calgary, the cost of renewable energy has dropped massively, such that it can now compete with natural gas. The age of affordable renewable energy has arrived.

Over the last ten years, wind power costs have dropped by 70% and solar power costs have dropped by 90%. This decline in cost is dramatic and relates to how the levelized cost of wind and solar power is now similar to that of the marginal cost to run an efficient natural gas plant. Levelized cost is a measure that includes the cost of building and running power plants. Therefore, not only have renewable resources begun to match natural gas in price, they have actually become cheaper to operate than existing fossil fuel power plants.

A report conducted a year ago by the Pembina Institute supports these claims. According to the study, renewable energy (including solar, wind, and battery storage) provided the same services to consumers as new fossil fuel power plants even during peak demand scenarios.

This study was conducted in Alberta, Canada, which already has some of the lowest natural gas costs in the world. For renewable energy to compete with an already cheap competitor is incredible, and speaks to the innovation that has occurred in the last ten years in the renewable energy industry.

Furthermore, the report discusses case studies from the United States that discovered how investment in renewable energy portfolios would save consumers over $29 billion a year and would cut greenhouse gas emissions by 100 million tons.

The Pembina report goes on to describe how an analysis conducted by the Rocky Mountain Institute found that when compared to the energy generated at fossil fuel power plants, the cost of renewable energy was $9 to $24 less per megawatt-hour. After reviewing these findings, Pembina announced that these costs would drop further as the technology advanced, something that was proven by the report conducted by the University of Calgary back in November of this year.

The University of Calgary found that the leading causes for the reduction in solar energy costs included “improvements in PV (photovoltaic) module prices, advancements in solar technology and an increase in global average capacity factor (actual energy production relative to potential).” Wind energy saw similar reductions in cost attributed to “lower turbine prices, more efficient operations, and maintenance, and a better global average capacity factor.”

However, despite cost reductions, renewable energy sources still only account for 8.5% of the total global energy supply. This share in the total global energy supply is projected to increase due to increases in renewable energy investment that are outpacing investment in any other energy source by 7.6% per year. Furthermore, thanks to countries like China who are leading the world in solar panel production, the cost of manufacturing solar panels is quickly decreasing thanks to demand.

Some hurdles remain in the way of renewable energy taking center stage though. First, renewable energy is notoriously intermittent, so to many consumers, it seems like lower-quality energy. To mitigate this issue, the University of Calgary suggests implementing improved storage technology in the form of batteries, compressed air, and pumped hydro for times of high energy demand or when the sun isn’t shining and the wind isn’t blowing.

Second, there needs to be the ability to send energy to locations lacking in energy to improve and support a renewable energy-based power grid.

Finally, the University of Calgary report suggests that low-carbon sources of energy will be required to support renewable energy. Having backup energy will be vital when dealing with transitioning to renewable energy and for supplying reliable electricity daily.

While the report isn’t sure whether this supporting energy will come in the form of biomass, new nuclear reactors, or hydrogen-peaking plants, they conclude low-emission sources will need to be reliable in the next decade to support the switch to renewable energy.

With this revelation, there is little doubt that the future is trending towards being renewable and sustainable. Furthermore, the report by the University of Calgary and the study by the Pembina Institute are promising, as they were conducted in a province known the world over for their oil and gas sector.

If oil and gas can be dethroned as the cheapest energy alternative in a province whose fossil fuel roots run deep, it’s clear that renewable is here to stay, no matter where in the world.

9 December 2020

medium

Investors plan major move into renewable energy infrastructure.

Global survey finds spending expected to double in five years in response to climate fears.

Global investors managing nearly $7tn (£5.2bn) of assets plan to almost double their spending on renewable energy infrastructure over the next five years amid deepening concerns over the fossil fuel industry’s climate plans, according to a report.

A survey of institutional investors found that they are planning to increase their renewable energy investments from 4.2% of their overall portfolio to 8.3% in the next five years and 10.8% within the next decade to about $742.5bn.

The survey of more than 100 investors, representing $6.9tn of assets under management, found that 83% did not believe the plans put forward by oil and gas companies would be enough to meet the Paris climate agreement goals.

More than half of the investors in the survey, which was undertaken by the specialist fund manager Octopus Renewables, said the oil industry’s record on investing in renewables was “more style than substance” and represented “nothing more than greenwashing”.

Alex Brierley, the co-head of Octopus Renewables, said renewables have “proved an incredibly attractive asset class in the face of this year’s volatility, buoyed both by growing external pressures to invest responsibly, and by investors looking for long-term sources of yield”.

He added: “There is further progress to be made however, and alongside renewables investment, divestment from fossil fuels also remains key.”

The survey also revealed that many investors have slowed their plans to divest from the oil and gas sector because of the financial uncertainty caused by the coronavirus crisis.

On average, investors have divested 4.5% of fossil fuels from their overall portfolio in 2020, compared with 5.7% forecast for 2020 in last year’s survey. They have slowed their long-term divestment plans too, from 14.4% within the next five years and 15.6% in the next 10 years set out in last year’s survey to 5.2% and 8.6% respectively in the latest results.

Matt Setchell, the other co-head of Octopus Renewables, said governments, investors, specialist managers and energy companies must be willing to work together to use the Covid-19 pandemic as a “catalyst to a greener, more sustainable future”.

“We are now at a crossroads and must seize this opportunity to build a global post-pandemic economic recovery that also opens up the renewable energy sector to attract the capital needed to tackle climate change. If we don’t act together, and if we don’t act now, it will be too late,” he said.

 

 

23 November 2020

The Guardian