research Archives - Page 3 of 8 - Energy Management Summit | Forum Events Ltd

Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd

Posts Tagged :

research

Small businesses call for greater Government leadership in the race to Net Zero

 960 640 Stuart O'Brien
By:
New research suggests small businesses are maintaining a commitment to tackling the climate emergency despite the immediate economic challenges they face – but many would like to see Government take more of a lead to encourage and support the green initiatives of small enterprises.
Despite the tough economic climate, the research from Novuna Business Finance says 85% of UK small businesses are working hard to put green issues higher up the agenda within their enterprise. Nationally, 17% have green issues on the agenda for senior management meetings, 17% run green incentives for their staff, 21% encourage staff ideas on green projects and 16% run staff education programmes on the urgency of climate change issues.
The research was conducted by MaruBlue among a representative sample of 1,228 small business decision makers, spanning all key industry sectors
These positive steps continue despite the seismic barrage of economic challenges faced by small businesses today, who cite their top worries being: the rising cost of living (47%), rising fuel prices (34%), the economic impact of Covid (34%) rising interest rates (24%) and long term-impact of Brexit (23%).
Whilst small businesses want to do more to become green and work towards Net Zero, many believe the Government could be doing more to help them.
  • Thinking about cutting carbon emissions in the community, only 20% of small business owners believed the national and local Government were doing enough to champion the issue.
  • Looking at the challenge of how to become carbon neutral in their supply chain, small businesses were most likely to call on the Government to do more to help. Nationally, 28% of enterprises felt the Government should give small businesses clearer guidelines on what steps they can take to help supply chains become greener. This was most strongly felt in three sectors – transport and distribution (40%), medical services (39%) and manufacturing (36%).
  • For those businesses where staff had returned to the workplace, there was a stronger belief that the Government should give clearer guidelines and advice on how small firms could make their supply chain greener (33%, compared to 22% of enterprises where staff worked from home).
  • When reflecting on specific business initiatives that could be undertaken in order to achieve Net Zero, less than one in five enterprises said the Government had been influential in helping them thinking more positively about a range of green issues they could consider. Only 20% of small business cited the influence of Government advice on their move to use renewable energy. The figure was even lower when it came to presenting the case for electric vehicles (19%), using less packaging (12%), cutting down on business travel (11%) or weighing up the relative benefits of staff car sharing schemes (9%).
  • Thinking about the mindset sea-change required to achieve carbon neutrality, small business owners were asked where this process needed to start. Whilst 23% of respondents said they took ownership on themselves – to drive change and influence others – small businesses were most likely to say it was down to the Government and major businesses to lead change – and when they led, small businesses would follow (27%).
Joanna Morris, Head of Insight at Novuna Business Finance, said: “Successive Governments have done a great deal to support Net Zero and the green agenda but, despite the current and immediate economic challenges, now is the time to maintain a focus on the climate commitments made in recent years. The global debate on climate change often focuses on major businesses and their role as change agents. Yet it is clear from our research that the small business community has a vital role to play. Combined they employ three fifths of the UK workforce and their relative size and agility means they can adapt more quickly. Furthermore, whilst many small businesses are making good progress on the road to becoming Net Zero and sustainable, they expect Government to take a lead – to devise policies, offer support and frame guidance that small businesses can follow.”

Employers ‘aren’t doing enough’ to reduce environmental impact of buildings

 960 640 Stuart O'Brien
By:

New research reveals the impact the energy crisis is having on the UK workforce, as 70% of hybrid workers admit they’re concerned about the cost of working from home as bills skyrocket.

The survey of 2,000 UK workers by OnePoll, on behalf of UK smart building technology firm Infogrid, finds that worries over energy usage don’t just start and stop at home. There is also greater scrutiny from the workforce, especially younger generations, on how employers manage energy during this crisis, and an expectation that they should be actively driving change for the future.

More than half (55%) of the UK’s hybrid workers are concerned about how energy efficient their workplace is, so much so that they want to take measures into their own hands to cap usage. Over a quarter (27%) say they would take personal action including turning off lights and monitor screens to reduce the amount of energy wasted in their buildings. Those aged 18-34 feel the most passionate about how much energy their workplace is using, with these figures rising five points to 62% and 32%, respectively.

Data from Infogrid’s own AI-powered platform, which uses sensors to capture and analyse when people are in the workplace, shines a light on the trends that businesses will need to react to, as a result of these energy efficiency concerns. In the UK, for example, recent workplace occupancy on Thursdays is double that of Fridays.

However, looking at this year over year, there is a steady decline, with average occupancy on a Thursday trending down by 80% compared to last September. Employees are also turning their backs on starting the week in their workplace, with Tuesday now the most popular day to be in and seeing 59% more occupancy compared to Monday.

OnePoll’s survey suggests that current workplace occupancy trends could change further as we head towards Christmas and colder months, with nearly one in four (23%) hybrid workers planning to increase the frequency they head into their workplaces this winter to keep personal costs low, rising to 30% amongst 18-34 year olds.

Commenting on the findings, Ross Sheil, Senior Vice President at Infogrid, said: “If you want to tackle a problem, you must first understand what you’re dealing with. Both the OnePoll findings and our own data show us that external factors, such as the energy crisis and its effect on people’s personal financial situations, have a very real impact on how employees use their workspaces. Energy prices skyrocketing will mean that some of us will spend more time in the workplace to keep costs at home down, while others will work from home more often, because commuting costs are also on the rise. And with more than half of employees showing concern about the efficiency and sustainability of their work environments, it’s never been more important to have real-time insight into how spaces are being used, in order to tailor energy management accordingly.”

Employees call on workplaces to be more sustainable – younger generations, even more so

Indeed, the OnePoll research reveals that employees have high expectations when it comes to the sustainability efforts and credentials of their employers. Two in five (41%) don’t believe their companies are doing enough when it comes to sustainability and reducing the environmental impact of buildings, even if they are taking action. This rises to 50% amongst younger generations (18-34).

When asked about whose job it is to address these environmental concerns, 25% of UK workers believe those who manage or run a building are primarily responsible for helping to cut greenhouse gas emissions generated by them, ranking above others such as governments (20%), building landlords (20%) and building occupants (15%). One in four hybrid workers would like to see their company invest in more digital tools and technology to help make their workplace more energy efficient, increasing again amongst 18-34 year olds to 29%.

Sheil continued: “The current energy crisis should be a catalyst for businesses to strive towards a more sustainable future and protect the planet, because employees expect it, and also, for their own financial performance to prevent money being poured down the drain from poor energy efficiency. We can’t tear down and rebuild – the greenest building is an existing building. Instead we need to retrofit our workplaces with smart technology, such as IoT, AI and insights drawn from real-time data to revolutionise the way we manage energy. Now is the time for building managers to drive long-lasting change through all that digital has to offer.”

Justine Bornstein, Research Director for Smart Building Technologies at analyst house Verdantix, added: “Investment into energy efficiency has already been gaining momentum thanks to the EU’s Clean Energy for all Europeans Package in 2018. The current energy crisis has certainly catapulted it back into mainstream conversation, and we expect this to continue well into the future, with digital technologies a key enabler. These are growing by more than 33% per year, according to the IEA, and soon the stock of connected appliances, devices and sensors will overtake the number of people on the planet. The energy efficiency sector is experiencing a major growth period that shows little signs of slowing down.”

56% of world’s energy to be generated in APAC region by 2030

 960 640 Stuart O'Brien
By:

Energy decisions made by the leaders of APAC countries in the next few years will have significant impacts on the battle against climate change, with the region expected to generate over half of the world’s energy by 2030.

GlobalData’s latest report, ‘Tech in 2030 – Thematic Intelligence’, reveals that the APAC region is expected to experience the highest growth in energy production—with generation rising 3.9% every year between 2022 and 2030, compared to the 1.8% in Europe and 1.4% in North America. This casts concerns about whether renewable development will be able to keep pace.

Robert Penman, Thematic Analyst at GlobalData, said: “Traditionally, growth has been reliant on increasing fossil fuel use, which is at odds with the burning need to decarbonize and limit the effects of climate change. Further, climate change will increase energy demand and consumption even further. For example, air conditioning systems will be increasingly necessary around the world. The APAC region has some incredible potential for renewable development, but it is clear that the decisions made by leaders in this region between now and 2030 will be felt all around the world.”

China, Mongolia, and Australia hold huge potential for renewables in APAC

The APAC region is expected to generate 43% of its energy from renewable sources by 2030, driven by investment in China and Australia, as well as the high potential in Mongolia.

Penman continued: “China is a clear winner when it comes to renewables in the APAC region. It has invested heavily in both solar and wind, and its highly productive companies will export these technologies and the necessary infrastructure worldwide. Meanwhile, Australia will benefit greatly from the energy transition as it has access to key raw materials and enormous solar power potential—useful for hydrogen production. Last, but not least, Mongolia has the potential for 2.6 terawatts of renewable energy production. Major advances in battery storage would allow significant energy exports from this country.”

APAC and MEA only regions to not exceed 50% generation from renewables/low-carbon sources by 2030

Worldwide energy generation will reach 35PWh by 2030, with 49% of energy generated by renewables and low-carbon fuels. Most of the world’s regions are looking to generate more energy from renewables than fossil fuels (67% from renewables in Europe, 60% in North America, and an impressive 77% in the South and Central America), but APAC and MEA will lag behind, at 43% for APAC and 20% for MEA.

Penman added: “APAC and MEA’s lower renewable generation share is a consequence of the need to rapidly increase energy generation to keep pace with the regions’ growing consumption. Microgrids offer a way to start incorporating renewables into the power mix while also helping rural populations access electricity. They are often fuelled by off-grid renewable sources to power local buildings and can later be connected to the main grid to increase its resilience and provide backup support.

“Conversely, Europe’s higher proportion of energy from renewables will heighten the need for a continent-spanning supergrid and large-scale energy storage solutions. This will enable countries to match renewable power generation and demand across the entire continent.”

Coal to remain largest energy source but high growth in wind and solar

GlobalData’s report reveals that, despite an estimated $4.4 trillion of investment in renewable energy projects between 2022 and 2030, coal will remain the single largest source of energy worldwide in 2030—accounting for 9.5PWh of generation. Wind and solar will see the most development, with generation growing at a yearly rate of 9.3% for wind, and 14.9% for solar.

Penman concluded: “As the world weans itself off fossil fuels, it’s easy to know which renewable technologies will have the greatest impact on limiting climate impact by 2030 – it will be the technologies implemented today. Wind and solar in particular will grow in importance over the next decade and beyond.”

Manufacturing sector ‘at risk’ of oversized and poorly matched energy equipment

 960 640 Stuart O'Brien
By:

Manufacturing managers concerned with the decarbonisation of energy in their facilities are being signposted towards Aggreko’s latest upgrades of equipment that will help cut emissions and protect the bottom line amid the energy crisis.

According to Aggreko, industrial facilities rely on several different temporary power and temperature control solutions which are often oversized or poorly matched for their chosen application. This is proving not only unsustainable but also inefficient.

With stricter climate legislation and uncertainty in the market affecting firms’ ability to predict energy usage, the temporary power firm says its manufacturing customers are now in a precarious position.

Greener Upgrades in Manufacturing is a new initiative that advises on how to meet demand via effective use of newly developed technologies, such as hybrid generators and temperature and humidity control products, which can run off alternative fuel sources.

The Greener Manufacturing guide highlights how the current equipment necessary for cold storage and back-up power emits heavy pollutants such as carbon dioxide, nitrous oxide and other harmful particulates. However, Aggreko showcases some of the changes the industry can make via a Greener Upgrade, such as replacing diesel fuel with hydrotreated vegetable oil (HVO) to cut carbon dioxide emissions by 90% and particulate matter by 86% respectively.

Matt Watson, Sector Sales Manager for Manufacturing at Aggreko, said: “In light of the problems the manufacturing industry are facing today, there’s a clamour for more environmentally-friendly solutions. The majority of our customers are now demanding more flexible energy solutions which meet their needs without eating into capex budgets. Greener Upgrades in Manufacturing provides a pragmatic answer to this.

“Aggreko has invested significantly into its fleet technology and product range meaning that greener hired power is one way the industry can navigate the transition to sustainable energy while protecting all-important bottom lines. We believe all suppliers need to be setting an example to industry.”

To download the full guide, click here.

Power companies on track for energy transition but ‘must not neglect full ESG responsibilities’

 960 640 Stuart O'Brien
By:

Power companies will face increasing pressure to respond to both social and governance issues while navigating their way through the energy transition process in the following decade.

GlobalData’s latest report, ‘ESG Top Trends by Sector – Thematic Research’, reveals that renewable energy initiatives have been gaining traction globally, with power companies primarily focusing on the environmental factors (‘E’) in ‘ESG’. However, it is important that these companies focus not only on the environmental and technical aspects of their operations, but also maintain a holistic approach to sustainability.

Adrian Li, Energy Transition Analyst at GlobalData, explained: “Renewables taking an increasing share in the global power mix can be seen as a consequence of multiple environmental efforts from power companies to increase investments in developing clean power generation projects. This increasing share in the global power mix is also supported by government subsidies which have made green energy more price competitive, decreasing its costs exponentially and allowing companies a faster shift from fossil fuels.

“There has been a dramatic growth in the global renewable energy share; 2024 looks to be the watershed when renewable sources overtake coal-fired power generation share globally. By 2030, it is expected that more than 40% of global power will be supplied by renewables. This increase has been driven by both technological advancement and favourable government policies.”

GlobalData also notes that care must be taken by power companies not to neglect social and governance factors. In Q1 2022, social media conversations around ESG declined by 36%, compared to Q4 2021. This can be attributed to the COP26 event held in October 2021 that ignited intense interest in climate change on social media. Sentiment remains pessimistic in social media conversations regarding ESG, reflecting consumer caution towards changes in the power industry.

Li added: “Consumers have become very conscientious about carbon emissions and climate change, and, by extension, the social impact of these companies. Factors such as poor workplace conditions or corruption will severely damage the reputation of power companies and decrease investment, as interest in energy becomes increasingly consumer driven. Even something such as poor cybersecurity—although not directly related to climate change—could sour the public’s impression of a company and make them lose confidence.”

Emerging tech ‘critical’ to manufacturers who want to embrace the Circular Economy in difficult times

 960 640 Stuart O'Brien
By:

A study by Sage has revealed advances in technology and innovation (72%) as the biggest driver of Circular Economy (CE) strategies in manufacturing and distribution.

Its “The State of the Circular Economy” report shows the industry is paying greater attention to the need for, and benefits of, the Circular Economy (CE). It comes in response to the growing importance of sustainable business practices to over 60% of employees, customers, shareholders, and supply chain partners alike.

CE is based on the principles of designing out waste and pollution, keeping products and materials in use, regenerating natural systems, and supporting environmental sustainability. 84% of senior leaders say building and implementing a CE strategy is now part of their role, with 32% stating it is central to their duties.

Rob Sinfield, Head of Business Unit, Sage X3 and Sage Intacct Manufacturing, said: “Sustainability is increasingly becoming a non-negotiable for modern manufacturers and distributors. While business goals remain front of mind, the industry equally recognises the importance of environmental drivers, with energy-efficiency and helping the environment as key motivations for pursuing a sustainability strategy.

“As a result, 32% of organisations adopting circular economy strategies are already reaping the rewards – from greater profitability and productivity to improved resource usage and an enhanced brand reputation. Better yet, a further 32% believe they will achieve benefits within the next three years.”

Manufacturers and distributors see new technology and innovations (72%) as a key enabler to adopting CE and sustainability strategies, and concerns arising from inaction such as damaged brand perceptions (46%) and reduced long-term profitability (46%) are consolidating the need for investment.

The promise of technology and innovation

Digital transformation is fundamental to delivering a CE strategy. The research found manufacturers and distributors ranked cloud applications (74%), data analytics (68%), and automation (67%) as the most important technologies for running a business more sustainably.

  • Cloud applications and infrastructure is impacting nearly every aspect of modern manufacturing already. The cloud enables manufacturers to develop products more effectively and support sustainable practices such as 3D printing.
  • Data analytics for predictive intelligence is helping businesses to refine their product development, optimize supply chains, and monitor equipment to increase resource efficiency.
  • Automation boosts productivity by speeding up workflows and reducing human error. It also provides valuable data-driven insights that can be analysed to improve production performance and sustainability.

However, the industry has more to do when it comes to technology adoption. Despite 61% citing cloud apps as helpful in collecting, analysing, and reporting on their CE capabilities, public cloud usage is far from universal among manufacturers and distributors. In fact, only a minority of respondents say they use public cloud for core apps such as supply chain (39%), CRM (38%), business intelligence (35%), human resources management (34%), ERP (32%) and payroll (29%).

Overcoming the barriers to sustainable transformation

Organisations want to take advantage of the opportunities presented by becoming more sustainable, such as improved reputation (50%), increased energy efficiency (47%), increased business resiliency (46%) and a reduced impact on the environment (46%).

But despite recognizing the many advantages, global manufacturers and distributors are struggling to realize the full benefits. Navigating a turbulent external market, with its own immediate challenges of rising costs (72%), supply chain disruptions (71%) and changing customer demands (68%), is taking up valuable resources that leaders could otherwise invest in future-proofing their business.

Furthermore, two-thirds (67%) of manufacturers and distributors still need to transform their business operations in order to shift to CE. 64% of those companies say transformation is a significant barrier and is hindering their pursuit of greater sustainability. Finding people with the right expertise (71%) is the biggest challenge, along with cost and budget limitations (68%) and updating technology integrations and processes (68%).

Tech expert Isaac Sacolick, President and Founder of StarCIO, said: “Organisations can overcome these barriers with innovative thinking. Recruiting from a wider talent pool to bring data and analytics skillsets into the fold will help manufacturers and distributors see the bigger picture – what can I solve today, how can I become more sustainable tomorrow, and where do I want to be in 10 years.

“With greater data insights at their fingertips, organisations will be able to identify the most suited use cases for automation and transformative technologies to enhance their cost efficiency and free up time to focus on the pressing need for a circular economy and sustainability strategy.”

ECIU: Data shows UK energy moving towards cheaper renewables

 960 640 Stuart O'Brien
By:

Government statistics on UK energy trends in Q1 2022 show that the shortfall in gas generation is being filled by cheaper renewables, namely wind and solar, which have increased their share of electricity generation on the same quarter last year.

Commenting on the statistics, Jess Ralston, Senior Analyst at the Energy and Climate Intelligence Unit (ECIU), said: “For every megawatt of renewable power this winter, that’s basically a megawatt less of gas power we have to source and pay for.

“This trend is only set to continue with recently commissioned wind projects four times cheaper than current gas and new farms coming online every year. This will protect us from gas price shocks in the long term particularly as the North Sea is a declining basin and fracking is so unpopular with voters.”

Shares of electricity generated by fuel main table (%)
2021
1st quarter		 2022
1st quarter		 Change on year before (%)
Coal 2.8 2.9 +0.1
Gas 38.7 33.3 -5.4
Nuclear 13.7 14.9 +1.1
Hydro 2.1 2.2 +0.1
Wind, onshore and offshore 25.2 29.1 +3.9
Solar 2.0 2.5 +0.4
Bioenergy 12.2 11.7 -0.5
Other fuels 2.1 2.3 +0.2
Pumped Storage 0.6 0.6 +0.0

Source: Energy Trends, BEIS. https://www.gov.uk/government/statistics/electricity-section-5-energy-trends

Gas prices are currently six times more expensive than last year [2], adding at least £2,000 to the average household’s annual bill this year [3]. Offshore wind projects online today are over three times cheaper than current gas generation, and the latest round of renewables auctions saw prices that are around five times less than the gas price during the gas crisis. [4]

Europe’s energy crisis creates a ‘trilemma’

 960 640 Stuart O'Brien
By:

HANetf recently reached out to its expert partners in the energy sector to articulate their thoughts on the ongoing energy crisis in Europe [1].

With Europe currently sweltering under extreme temperatures, cold weather is likely the last thing on the mind of many. However, with Russia dialling back supplies to Europe, the continent potentially faces an energy shock this winter.

Gabriela Herculano, manager of the iClima Global Decarbonisation Enablers UCITS ETF (CLMA) and iClima Smart Energy UCITS ETF (DGEN) comments on the difficult decisions being faced by European countries: “Countries are facing a “trilemma” during the coming energy transition, as we must decarbonize the energy industry while guaranteeing security of supply and affordability. European countries are doing two things in parallel: passing legislation that supports a massive acceleration in the energy transition, while going back to using fossil fuel for electricity generation.[2] Coal burning related emissions are thus likely to increase in Europe. The consequences of the reduced flow of natural gas from Russia that started in June are profound.

“In the long run, Germany will decarbonize its energy sources and renewable energy will replace Russian hydrocarbons, but in the short term the alternative is to replace natural gas (that can only be either liquified as LNG and then transported or sent via long pipelines) with coal (that is transportable in bulk) for electricity needs and store the natural has still being supplied for heat purposes ahead of next winter.[3] Germany, Italy, Austria, and the Netherlands have all announced plans to restart coal fired power plants; Germany’s Economy Minister Robert Habeck, a Green Party member, referring to the decision as “painful but a necessity.[4]

“However, the mid to longer term growth prospects of green solutions – from EV adoption to long duration energy storage – are extremely strong, again led by Germany in a material way. That means that longer term investors have a unique opportunity to invest in the companies leading the energy transition at a steep discount.”

Konrad Sippel, Head of Research at Solactive, the index provider for the Electric Vehicle Charging Infrastructure UCITS ETF (ELEC), expands on this issue:

“I think the interesting thing to observe is how quickly past policy decisions become obsolete in the light of a real and immediate threat of an energy shortage: discussions about increasing the use of coal power, the re-opening of a discussion on nuclear energy in Germany, just to name some examples.

“On the other hand, the short-term crisis is also likely to accelerate adoption and expansion of renewable and alternative energy sources and an affirmation of the Paris Agreement goals which should also in the mid-term benefit the Electric Vehicle ecosystem and provide an additional push for the expansion of the charging networks.”

Stephen Derkash, manager of the Solar Energy UCITS ETF (TANN) comments: “Global oil prices and European gas and electricity prices have spiked in the aftermath of Russia’s invasion of Ukraine. As the conflict in Ukraine continues, European leaders are pushing for a faster switch to renewables as part of a strategy to end dependence on Russian gas. Currently, approximately 40% of the EU’s gas and about 25% of its oil is imported from Russia. The EU’s ambitious plans now call for fast-tracking deployment of solar and tripling clean energy capacity by 2030.[5] The effects of the conflict have implications for greenhouse gas emissions and energy policy.

“Experts say that electricity has to take over from natural gas in sectors where just months ago gas seemed a secure long-term bet, which would significantly enhance prospects for solar power.[6] The European Commission believes it can replace 24 billion cubic metres (bcm) of Russian gas with zero-emissions renewable energy sources this year.[7]Furthermore, The International Energy Agency (IEA) issued a 10-point plan in March to reduce Russian gas imports by 63bcm, approximately half of what Europe imported last year, through a mixture of diversification and economy.[8]The organisation says these measures could be enacted in the next year, without building new infrastructure. Following the IEA’s statement, the European Commission announced an even more ambitious plan, the REPowerEU plan, to reduce reliance on Russian gas by two-thirds before Christmas and abolish all Russian fossil fuels – including coal and oil – by 2030.[9]

“The IEA plan would reduce Russian gas use by 33bcm by asking Europeans to turn down their thermostats by 1 degree Celsius (33.8 Fahrenheit) and increasing electricity generation from nuclear power and biofuels and renewable energy.[10] Additionally, the EU is aiming to make solar panels mandatory on all new buildings by 2029 under a new proposal aimed at rapidly replacing its reliance on Russian oil and gas.[11] The EU’s REPowerEU plan and the “solar rooftop initiative” is introducing a phased-in legal obligation to install solar panels on new public and commercial buildings, as well as new residential buildings by 2029.[12] If successful, solar energy will become the largest electricity source in the EU by 2030, with more than half of the share coming from rooftops.”

Furthermore, Europe’s energy crisis has implications far beyond the continent. Stacey Morris, manager of the Alerian Midstream Energy Dividend UCITS ETF (MMLP), comments: “Benchmark Dutch natural gas prices have reached record highs in the wake of Russia’s invasion. Unlike oil, there are no strategic reserves for natural gas, and European inventories were already tight this winter.

“Although it will take time, Europe can reduce its dependency on Russian natural gas through the ongoing shift towards renewables and by purchasing LNG. To facilitate this, additional import capacity may be needed with Germany recently committing to the construction of two LNG import terminals.

“While the near-term impact of Russia’s invasion on energy commodity prices is readily apparent, the intermediate and long-term implications for the US energy landscape are less certain. Changes in how Europe sources natural gas should have positive long-term implications for US LNG exports with direct and indirect benefits for energy infrastructure. The extent to which US producers will accelerate production growth is less clear but could result in more volumes for energy infrastructure companies to handle.”

[1] First white label ETF issuer, as confirmed in ETF Database of all ETFs: https://etfdb.com/

[2] https://www.france24.com/en/live-news/20220620-dutch-join-germany-austria-in-reverting-to-coal

[3] https://www.bloomberg.com/news/articles/2022-07-16/germany-to-do-everything-to-fight-climate-crisis-scholz-says

[4] https://www.bloomberg.com/news/articles/2022-07-07/germany-s-habeck-urges-canada-to-help-thwart-putin-s-gas-excuses#xj4y7vzkg

[5] https://www.carbonbrief.org/in-depth-qa-how-the-eu-plans-to-end-its-reliance-on-russian-fossil-fuels/#:~:text=The%20commission%20recommends%20raising%20the,for%2055%20proposals%20last%20year

[6] https://www.ftadviser.com/investments/2022/06/27/the-race-for-energy-independence-accelerating-the-green-transition/

[7] https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas

[8] https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas

[9] https://www.carbonbrief.org/in-depth-qa-how-the-eu-plans-to-end-its-reliance-on-russian-fossil-fuels/#:~:text=The%20commission%20recommends%20raising%20the,for%2055%20proposals%20last%20year

[10] https://www.theguardian.com/environment/2022/mar/03/turn-down-heating-reduce-need-russian-imports-europeans-told#:~:text=4%20months%20old-,Turn%20down%20heating%20by%201C%20to,for%20Russian%20imports%2C%20Europeans%20told&text=Europeans%20should%20turn%20down%20their,leading%20energy%20adviser%20has%20said.

[11] https://www.independent.co.uk/climate-change/news/solar-panels-new-buildings-eu-mandatory-b2081732.html

[12] https://www.independent.co.uk/climate-change/news/solar-panels-new-buildings-eu-mandatory-b2081732.html

Cybersecurity spending in the energy industry ‘will rise to $10 billion by 2025’

 960 640 Stuart O'Brien
By:

The rapid digitalisation of the oil and gas industry has made the industry increasingly vulnerable to cyberattacks, says GlobalData.

The leading data and analytics company notes that companies must now fortify their cybersecurity posture in line with their digitalisation strategy or risk financial and reputational harm.

GlobalData’s latest report, ‘Cybersecurity in Oil and Gas – Thematic Research’ reveals that the Colonial Pipeline attack in May 2021, which hammered home the sector’s vulnerability to cyber threats, spurred an increase in cybersecurity spending. Consequently, GlobalData estimates cybersecurity revenues for the energy industry will reach $10 billion by 2025.

Francesca Gregory, Thematic Analyst at GlobalData, said: “Demand for oil products fell 14% in Q2 2020, causing prices to plummet. To stay competitive in the face of mounting financial pressure, oil and gas companies invested heavily in digital technologies to streamline operations and cut costs, which is evidenced by an analysis of patent trends.”

Oil and gas companies increased total patent publications across artificial intelligence (AI), blockchain, cloud computing, the Internet of Things (IoT), robotics, and virtual and augmented reality by 46% between October 2019 and April 2021, according to GlobalData.

Gregory continued: “Oil and gas companies are realizing the benefits of integrating technologies into workflows, with the pandemic undoubtedly playing an instrumental role in boosting the momentum of the industry’s digitalization. However, the wider industry is largely underprepared to handle its risks. The digitalization wave creates new access points in industrial networks for hackers to exploit. As technology develops, from mobile apps to the cloud to IoT, the level of complexity needed for organizations to maintain a cyber-aware stance will rise.”

Despite the increase in cybersecurity spending, the industry is still not taking cybersecurity seriously enough. GlobalData’s recent report found that only 20% of the largest oil and gas companies by market cap had a chief information security officer (CISO) on the board. This suggests that, while companies have made room for cybersecurity in their budgets, cybersecurity is absent from companies’ central strategy.

Gregory added: “The industry’s current situation is precarious in the midst of the industry’s rapid digitalization, rising cyber risk, and the promise of maximum disruption and extortion from oil and gas companies.”

IRENA: Renewable power ‘remains cost-competitive’ amid fossil fuel crisis

 960 640 Stuart O'Brien
By:

Costs for renewables continued to fall in 2021 as supply chain challenges and rising commodity prices have yet to show their full impact on project costs – the cost of electricity from onshore wind fell by 15%, offshore wind by 13% and solar PV by 13% compared to 2020.

Renewable Power Generation Costs in 2021, published by the International Renewable Energy Agency (IRENA), shows that almost two-thirds or 163 gigawatts (GW) of newly installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired option in the G20.

IRENA estimates that, given the current high fossil fuel prices, the renewable power added in 2021 saves around $55 billion from global energy generation costs in 2022.

IRENA’s new report confirms the critical role that cost-competitive renewables play in addressing today’s energy and climate emergencies by accelerating the transition in line with the 1.5°C warming limit and the Paris Agreement goals. Solar and wind energy, with their relatively short project lead times, represent vital planks in countries’ efforts to swiftly reduce, and eventually phase out, fossil fuels and limit the macroeconomic damages they cause in pursuit of net zero.

“Renewables are by far the cheapest form of power today,” Francesco La Camera, Director-General of IRENA said. “2022 is a stark example of just how economically viable new renewable power generation has become. Renewable power frees economies from volatile fossil fuel prices and imports, curbs energy costs and enhances market resilience – even more so if today’s energy crunch continues.”            

“While a temporary crisis response might be necessary in the current situation, excuses to soften climate goals will not hold mid-to-long-term. Today’s situation is a devastating reminder that renewables and energy saving are the future. With the COP27 in Egypt and COP28 in the UAE ahead, renewables provide governments with affordable energy to align with net zero and turn their climate promises into concrete action with real benefits for people on the ground,” he added.

Investments in renewables continue to pay huge dividends in 2022, as highlighted by IRENA’s costs data. In non-OECD countries, the 109 GW of renewable energy additions in 2021 that cost less than the cheapest new fossil fuel-fired option will reduce costs by at least $5.7 billion annually for the next 25-30 years.

High coal and fossil gas prices in 2021 and 2022 will also profoundly deteriorate the competitiveness of fossil fuels and make solar and wind even more attractive. With an unprecedented surge in European fossil gas prices for example, new fossil gas generation in Europe will increasingly become uneconomic over its lifetime, increasing the risk of stranded assets.

The European example shows that fuel and CO2 costs for existing gas plants might average four to six times more in 2022 than the lifetime cost of new solar PV and onshore wind commissioned in 2021. Between January and May 2022, the generation of solar and wind power may have saved Europe fossil fuel imports in the magnitude of no less than $50 billion, predominantly fossil gas.

As to supply chains, IRENA’s data suggests that not all materials cost increases have been passed through into equipment prices and project costs yet. If material costs remain elevated, the price pressures in 2022 will be more pronounced. Increases might however be dwarfed by the overall gains of cost-competitive renewables in comparison to higher fossil fuel prices.