Industry experts set out roadmap for decarbonisation
Government and private sector industry experts discussed the policy, financial and technology requirements if ambitious decarbonisation programmes are to succeed, Informa Market's Global Energy Utilities Forum was told
On the opening panel of the Global Energy Utilities Forum (GEUF) in Dubai World Trade Centre on 7 March, industry experts discussed the roadmap to decarbonisation and net zero, following on from the signing of landmark agreements at COP26.
According to Fahad Al-Hammadi, Energy Policy Specialist for the Office of the Undersecretary for the Future Energy, Water and Power at the UAE’s Ministry of Energy and Infrastructure, the Emirates has been leading the region in energy for the past couple of decades - back when there was scepticism around the viability of developing renewable energy in the fossil fuel-rich Middle East. “We are a significant hydrocarbon economy, but our leadership recognised its limited resources and that it is not something we can rely on.”
Al-Hammadi spoke of climate change as the main driver behind decarbonisation, as major issues started with climate change, adding that the UAE will be impacted, as well as other nations, particularly with stress and increase of temperatures, which places pressure on cooling. As a result, the country took a very bold step, and plans to host COP28 is set to be an important milestone.
“We will know how far we have come and how far we still need to go in terms of decarbonisation,” Al Hammadi noted. “We are on the right track in terms of the process, with the latest developments happening with the Energy Strategy 2050, and many other initiatives are in the process.”
He highlighted the importance of deciding whether the country was on the right track with the right speed, adding that the Intergovernmental Panel on Climate Change will be able to outline such efforts. “The country is looking for affordable energy,” he explained. “It is very important, and we need to understand what challenges we are experiencing in this region. It has to be coupled with advanced planning and action.”
In that regard, the government is working closely with its stakeholders, as Al Hammadi mentioned good overall progress with recent developments happening in the country, namely with the roadmap which will soon be detailed by the Ministry for net zero, tackling different sectors, and mobility, among others.
According to Carlos Gasco Travesedo, Energy Policy Executive Director at the Department of Energy – Abu Dhabi, energy efficiency is a key component of any policy making when it comes to hitting targets and the future. The agency works in different areas, including energy efficiency, and delivering a comprehensive take to deliver energy efficiently. “Policy making is about looking into the future, not what happens today, and changing the direction of action is a fundamental piece,” he noted. “For that reason, we need to understand that we do three things from the policy making point of view; and we try to bring as much clarity as possible into that future we want to have.”
Within the process of approving the clean energy target of 2025, Travesedo said the policy is almost ready to set the scene for the electricity and water sector of Abu Dhabi, reducing emissions by 60 percent and increasing renewables by 14 percent, with an estimated required investment of Dh30 million. “It is a very fundamental piece of the net zero scenario in the emirate of Abu Dhabi,” he said. “We need to set trajectories because the discussion is out. In 2050, we have to be carbon neutral so to get there, we need to bring clarity.”
The agency is also looking at tools that will enable this change, such as clean and green hydrogen, which stands as a fundamental piece of its strategy. This year, it plans to work on the strategy and framework for Abu Dhabi to allocate the different components of the successful strategy that will make the emirate and the UAE hydrogen friendly. “We will see what is missing and we will address that,” he said, adding that it also plans on increasing the use of recycled water in the emirate as early as 2023 to reach 100 percent. “District cooling will also be enhanced.”
Travesedo spoke of the final stages of an EV policy that will clarify business models and open the market to those willing to supply this service in Abu Dhabi. He called on the need to use every tool it can count on to reach such goals as the net zero scenario is “very challenging, so we have to deliver every solution we have.”
Reji Kumar Pillai, President of the India Smart Grid Forum and Chairman of the Global Smart Energy Federation, mentioned India’s work in the field of renewable energy, with plans to increase its capacity to 500 GW by the end of the decade. “The ongoing war has underscored the importance of renewable energy,” he said. “We need to address challenges and we plan to increase electrification and electrify almost all human activities, including transport and agriculture.”
For Dr Yahya Al-Hadban, Associate Research Scientist at the Energy and Building Research Center at the Kuwait Institute for Scientific Research (KISR), energy has always been a big challenge for all nations. He spoke of a need for countries to optimise energy use and conservation to cut down on investment in renewable energy. “The main player or criteria that affects going in renewable is cost, investment, finance, and return,” he explained. “All those things play a role and what connects cost and economics is technology itself.”
He said that, today, technology competes with conventional systems, which gives a good indication that it plays a major role in whether to increase the use of renewable energy or not. “I believe we should increase,” Al-Hadban said.
“An important role for decarbonisation is to take its time and not to rush steps.”
The source of funds of many regional countries, when it comes to renewable energy projects, is conventional resources. As a result, the process must be done in an optimised manner, keeping the source of capital coming in a way to be able to fund renewable energy and alternative resources to achieve decarbonisation. “It doesn’t mean we have to continue emitting,” he added.
“There is Carbon Capture and Storage and alternative fuels, which are environmentally friendly and help achieve decarbonisation targets, so we have to do it in an optimised way.”
However, he called on the need for a clear policy that shapes the framework of the bigger picture for decarbonisation, alternatives and renewables, to avoid wasting efforts. “There should be an end of the road target with a timeline,” he said.
The panel concluded with Abdurrahman Khalidi, Chief Technology Officer at GE Gas Power EMEA, who spoke of the issue of decarbonisation as one of scale, rather than a small niche project. “Industry has [doubled] the carbon dioxide in the air we breathe,” he said. “That’s why net zero is hard and it takes nations to be committed.”
He mentioned the role of gas as vital to achieve this, as the densest energy generation system in the world. Khalidi believes gas will remain an important piece of the equation as it can be a force multiplier for having more renewable energy, while being completely carbon neutral.
“This is because you can burn through hydrogen and produce water without carbon dioxide,” he explained. “Whether blue or green, the colour of hydrogen doesn’t matter but I personally feel blue hydrogen should be the strategy for the Gulf because if the world becomes decarbonised, it will be very essential and it will keep us in business for the next 50 years.”
He said 40 percent of greenhouse gas emissions emanate from the power sector, adding to another 20 percent from transportation. “A lot of transportation is being electrified, which means you are going to get electrons somewhere else,” he concluded. “So we need solutions at scale, you need gas and that gas needs to be decarbonised.”
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