FeatureWith most of the international community pledging to achieve net zero carbon emissions by 2050, the pressure is on; though at our current pace, the world is falling behind. Fortunately, we still have time to turn things around.
For energy and utilities organisations, this will require a significant commitment. Encouragingly, many are stepping up. The US is targeting a carbon pollution-free power sector by 2035. In 2030, the goal is to reduce emissions by 50-52%, which would achieve net zero emissions by 2050. Some optimists predict the industry could hit net zero by 2035.
By 2050, on our current path, the world’s global carbon emissions will fall 60% short of our net zero target
In Europe, 22 of the 25 largest power and gas utilities have set net-zero emissions targets. Some coal-powered plants in Europe and other regions have shut down operations to become clean energy leaders within renewables.
But the road ahead will not be easy. In the US, the transition from fossil fuels to electricity generated by renewables will require the electric-power sector to simultaneously decarbonise, while supporting an increase of about 40% in electric load by as early as 2035.
In 2022, investment in transmission infrastructure will increase from billions to trillions
These ambitious targets will require large-scale infrastructure commitments, not only to achieve the end goal but to manage the transition. Organisations must move away from siloed products to platforms or a system of systems strategy that delivers real-time data for real-time results.
This digitisation of the operation will allow energy and utilities organisations to accurately answer two important questions: How can power be distributed in the most efficient and socio-economic way possible How much power is required?
In tandem, organisations must become good stewards of their own operations, controlling and reducing carbon emissions generated throughout their supply chain and in the field. Again, technology will play a critical role. For example, predictive maintenance and scheduling will drive operational efficiencies to help organisations achieve these goals. The world must work together to hit our target by 2050.
As we saw in the first prediction, infrastructure must be modernised and strengthened to accommodate the increased electric loads for the sustainable energy goals we have set. This will require a complete overhaul of existing transmission facilities.
In Europe, 22 of the 25 largest power and gas utilities have set net-zero emissions targets
In the US, the construction of new transmission facilities will cost an estimated $314 to $504 billion. This doesn’t include the $1.8 to $2.1 trillion in new generation costs needed to hit the 2035 goal of a carbon pollution-free power sector.
To offset this, the Infrastructure Investment and Jobs Act was signed into law in the US in November 2021 and includes $1.2 trillion in spending, with an additional $550 billion subsequently added.
Europe adopted an EU-wide planning approach to transmission infrastructure, unlike the US which is managed by multiple entities. In October 2020, EU Member States agreed on a proposal to invest €998 million in critical European energy infrastructure projects.
Yet even with all of the new and increased spending, the cost versus investment will fall short. This puts more pressure on energy and utility organisations—and the people they serve—to make up the shortfall.
The electric-power sector must decarbonise while supporting an increase of about 40% in electric load by as early as 2035
Additional costs for transmission infrastructure includes the undergrounding of vulnerable lines and equipment. In the US, the need to go underground takes on greater urgency due to the catastrophic wildfires caused by extreme weather events and the sparking of flames by fallen transmission lines.
Once again, there are differences between Europe and the United States. Although Europe has a much higher population, they are more densely packed so that distribution occurs over a smaller area for greater cost and resource efficiency.
These whole-scale changes will transform energy and utilities infrastructure from below the ground up.
These sustainability targets will require large-scale infrastructure commitments, while moving away from siloed products to platforms that deliver real-time data.
