Energy

In the EU, only about one-third of the energy mix is currently electrified. (Image source: Danfoss)

A new Danfoss Impact paper argues that “competitive decarbonisation” is central to achieving market competitiveness, empowering industries to both lower their environmental impact and sharpen their competitive advantage.

“The paper tackles already existing products and solutions which can be applied immediately across MENA industry to limit energy waste, promote electrification and boost competitiveness, especially in energy-intensive industries”, highlighted Ziad Al Bawaliz, regional president at Danfoss Türkiye, Middle East and Africa.

Electric motors drive key industrial technologies like fans, pumps, compressors, and conveyor belts, and they represent more than two-thirds of industrial electricity use. In the EU, optimising motor efficiency could lead to annual savings of US$10bn-US$11.3bn in electricity costs and prevent 12.5-14.1 million tonnes of CO₂ emissions—equivalent to the annual footprint of nearly two million Europeans.

Energy efficiency

In the EU, only about one-third of the energy mix is currently electrified. However, expanding electrification in industries is crucial to easing pressure on an already maxed-out energy grid. The paper advocates for an Electrification Action Plan with explicit targets for demand-side electrification to ensure a sustainable energy future.

Kim Fausing, president and CEO, Danfoss, said, “I remain a stubborn optimist when it comes to Europe’s future, but we need to reestablish the growth mindset of the past. Mario Draghi’s report on EU competitiveness has crucially identified many areas in which Europe can improve including our elevating energy bills as a case for a massive overhaul of how Europe does business. Lowering energy consumption, cutting emissions and driving down the energy bills through energy efficient and cost-competitive electrification solutions could very well be European industry’s greatest growth opportunity.”

“Our Danfoss Impact paper takes this a step further by outlining a clear guide for immediately taking action to harvest the lowest hanging fruits in industry to limit energy waste, promote greater rates of electrification and boost competitiveness, especially in energy-intensive industries. Rather than dismissing decarbonisation in the pursuit for greater productivity, our research shows that decarbonising industries is critical for making them more resilient and increasing economic competitiveness,” added Fausing.

The Danfoss Impact paper reveals that by adopting energy efficiency and decarbonisation measures, manufacturing industries could save significantly on energy bills while increasing the gross value added. The cost-efficient measures can both prepare the industry for deep electrification, and free up vital funds needed for investments in R&D and innovation – two key areas where Europe is falling behind.

IRENA Members will discuss key issues surrounding the global energy transition. (Image source: IRENA)

The International Renewable Energy Agency (IRENA) kicked off its 28th Council meeting in Abu Dhabi today, ahead of the 29th Conference of the Parties (COP29).

Over the next two days, IRENA Members will discuss key issues surrounding the global energy transition, focusing on the goal of tripling renewable energy capacity and doubling energy efficiency by 2030, as recommended in the Outcome of the First Global Stocktake.

A recent IRENA report, Delivering on the UAE Consensus: Tracking Progress Toward Tripling Renewable Energy Capacity and Doubling Energy Efficiency by 2030, produced in collaboration with the COP28 and COP29 Presidencies, the Government of Brazil (COP30 host), the Ministry of Energy of Azerbaijan, and the Global Renewables Alliance (GRA), reveals that current national plans are expected to deliver only half of the necessary growth in renewable power by 2030 to keep global temperature rises within the 1.5°C limit.

Strategic partnerships

During its 28th session, the IRENA Council will dive into discussions on national approaches to the energy transition, exploring both the challenges and the opportunities for scaling up financial support for renewable energy initiatives.

The focus will also be on the role of innovative technologies and strategic partnerships, especially in accelerating the energy transformation for small island nations.

Over the course of the two-day gathering, participants will also review and evaluate the implementation of IRENA’s ongoing work programme and budget, working together to drive further progress in the global renewable energy shift.

IRENA Council chair Dr. Gloria Magombo, Secretary for Energy and Power Development, Zimbabwe said, “The alarming gap between the current global trajectory of the renewables-based energy transition and our collective climate targets underscore the urgency of IRENA’s mission. As Chair, I am committed to ensure that the 28th IRENA Council meets with collaborative resolve in support of the Agency’s work to accelerate progress across its Membership.” 

“The 1.5°C target is still within reach, but the risk of missing it is becoming increasingly near,” said IRENA director-general Francesco La Camera. “The third round of Nationally Determined Contributions (NDCs) must close the gap towards 2030. With COP29 less than a month away, the gathering of the IRENA Council presents another opportunity to re-emphasise the urgent need to approach Baku with significantly heightened ambition.”

The collaboration will focus on leveraging advanced technologies in the energy sector. (Image source: AIQ)

Artificial intelligence solutions providers AIQ and Inception have signed an agreement to drive technology innovation and transformation in the energy sector

Announced at GITEX Global 2024 in Dubai, the partnership will aim to enhance efficiency, improve safety and sustainability, and reduce costs through revolutionary near-real time data processing, advanced multi-modal insights, and AI-assisted automation across the entire energy value chain.

“Joining forces with Inception in this strategic partnership will see AIQ unlock new opportunities for growth and transformation in the Energy sector, pushing the boundaries of AI innovation and driving real, impactful change,” said Magzhan Kenesbai, acting managing director at AIQ. “This collaboration is testament to our commitment to enhancing productivity and sustainability, while reinforcing the UAE’s position as a global hub for technological excellence.”

Ashish Koshy, chief operating officer of Inception, said, “Our partnership with AIQ marks a defining moment in how artificial intelligence combined with domain expertise can accelerate innovation in the Energy sector. By combining our expertise in large language and advanced AI models with AIQ’s industry expertise and proven track record in the Energy sector, we are confident that together we will deliver solutions that will set new standards for operational excellence, efficiency, and sustainability. Our partnership with AIQ marks a defining moment in how artificial intelligence can accelerate innovation in the energy sector.”

The collaboration will focus on leveraging advanced technologies that enable faster decision-making and improve real-time data processing capabilities, empowering the energy sector to navigate the complexities and demands of operations with greater intelligence and agility. As part of the agreement, both companies will also explore opportunities to enhance AI models and accelerate the deployment of AI solutions across the energy value chain.

Emissions are set to almost halve by 2050. (Image source: DNV)

DNV has released its 'Energy Transition Outlook', which notes that 2024 will go down as the year of peak energy emissions

Energy-related emissions are at the cusp of a prolonged period of decline for the first time since the industrial revolution. Emissions are set to almost halve by 2050, but this is a long way short of requirements of the Paris Agreement. The Outlook forecasts the planet will warm by 2.2 °C by end of the century.

The peaking of emissions is largely due to plunging costs of solar and batteries which are accelerating the exit of coal from the energy mix and stunting the growth of oil. Annual solar installations increased 80% last year as it beat coal on cost in many regions. Cheaper batteries, which dropped 14% in cost last year, are also making the 24-hour delivery of solar power and electric vehicles more affordable. The uptake of oil was limited as electrical vehicles sales grew by 50%. In China, where both of these trends were especially pronounced, peak gasoline is now in the past.

China is dominating much of the global action on decarbonisation at present, particularly in the production and export of clean technology. It accounted for 58% of global solar installations and 63% of new electrical vehicle purchases last year. And whilst it remains the world’s largest consumer of coal and emitter of CO2, its dependence on fossil fuels is set to fall rapidly as it continues to install solar and wind. China is the dominating exporter of green technologies although international tariffs are making their goods more expensive in some territories.

“Solar PV and batteries are driving the energy transition, growing even faster than we previously forecasted,” said Remi Eriksen, group president and CEO of DNV. “Emissions peaking is a milestone for humanity. But we must now focus on how quickly emissions decline and use the available tools to accelerate the energy transition. Worryingly, our forecasted decline is very far from the trajectory required to meet the Paris Agreement targets. In particular, the hard-to-electrify sectors need a renewed policy push.”

Striking shifts in energy mix

The success of solar and batteries is not replicated in the hard-to-abate sectors, where essential technologies are scaling slowly. DNV has revised the long-term forecast for hydrogen and its derivatives down by 20% (from 5% to 4% of final energy demand in 2050) since last year. And although DNV has revised up its carbon capture and storage forecast, only 2% of global emissions will be captured by CCS in 2040 and 6% in 2050. A global carbon price would accelerate the uptake of these technologies.

Wind remains an important driver of the energy transition, contributing to 28% of electricity generation by 2050. In the same timeframe, offshore wind will experience 12% annual growth rate although the current headwinds impacting the industry are weighing on growth.

Despite these challenges, the peaking of emissions is a sign that the energy transition is progressing. The energy mix is moving from a roughly 80/20 mix in favour of fossil fuels today, to one which is split equally between fossil and non-fossil fuels by 2050. In the same timeframe, electricity use will double, which is also at the driver of energy demand only increasing 10%.

“There is a growing mismatch between short term geopolitical and economic priorities versus the need to accelerate the energy transition. There is a compelling green dividend on offer which should give policymakers the courage to not only double down on renewable technologies, but to tackle the expensive and difficult hard-to-electrify sectors with firm resolve,” added Eriksen

The Outlook also examines the impact of artificial intelligence on the energy transition. AI will have a profound impact on many aspects of the energy system, particularly for the transmission and distribution of power. And although data points are currently sparse, DNV does not forecast that the energy footprint of AI will alter the overall direction of the transition. It will account for 2% of electricity demand by 2050.

*CO2 emissions from the combustion of coal, oil and gas