Decision makers are waking up to the fact that a collaborative, interconnected infrastructure is essential for accelerating the uptake of clean energy. As a result, world leaders at last year’s landmark COP26 summit pledged funds in the billions to support the development and adoption of clean technologies.
So, as countries, industries, and technology providers begin working together more closely in 2022 and beyond, how can we prepare for a truly sustainable future?
The next steps in clean energy adoption
To date, the primary goal has been to create renewable energy technology that is sustainable – both environmentally and financially – to ensure the transition to clean energy happens as quickly as needed.
There is still a danger, however, that adoption won’t meet expected levels. The whole cleantech industry, and particularly the energy sector, must now show organisations how they can make the transition with minimal risk and impact on their business operations. Business giants – such as Ikea, which upped its clean energy spend to €6.5bn in 2021 – have the financial capabilities to invest in dedicated renewable energy infrastructure that will ensure their operations will always have a reliable energy supply.
But what about the huge number of businesses that don’t have this capability, nor the ability to accept the potential risk to their operations that switching to green energy innovations currently presents? By designing integrated solutions from a very customer-centric perspective, accounting for the risk appetite of different businesses across different sectors, technology providers can further accelerate the transition.
Swapping silos for a whole-system approach
Energy storage is essential to ending reliance on fossil fuels with a system based on wind, solar, hydro, and nuclear. Whether in the form of batteries, gravity, or renewable fuels, each type of energy storage has different strengths and weaknesses, from capacity, dispatchability, geographic applicability, transportability, availability, or scale.
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Take batteries, for example. They provide the dispatchability that wind and solar power lack and can store the energy created when supply outstrips demand, holding it for those moments when, for instance, the sun isn’t shining. However, scaling battery storage to accommodate weeks of power at a time necessitates enormous and costly infrastructure.
A hybrid system that utilises the full suite of renewable technologies and innovations available is essential for optimising a secure, resilient and economical grid.
Why there is no 'silver bullet' when it comes to clean energy
It is natural to search for a 'silver bullet' solution. But, the truth is, we need a suite of climate tech solutions to meet the unique challenges faced by individual industries and countries. Regions with a surplus of renewable energy, for instance, will need better storage solutions or greater connections to distribute power.
Meanwhile, our definition of positive change needs rewriting. Many companies are demonised for a perceived lack of commitment when they leave a “backdoor” in their climate change strategies, preventing some from even starting their transition to clean energy. However, we cannot wait for innovation to take its natural course to becoming a full-proof, risk-free option. Decision-makers need solutions that can deliver significant changes today and don’t require huge reinvestment to close those backdoors after confidence in the new normal has grown.
Taking the challenge of switching from diesel to renewable fuels, for example, technologies that offer the flexibility to operate on many fuels will enable day-to-day operations to run on the most accessible fuel source at a given time. With the ability to use conventional fuels as a backup, this gives businesses the confidence to take the leap to using renewable alternatives such as green hydrogen. In turn, this increased demand for alternatives will encourage suppliers to provide them. Energy security will be achieved through diversity, even if that means falling back on less sustainable energy when supplies of greener fuels are unstable as the market matures.
Shifting from a relatively simple energy system to one that is far more complex and interconnected is critical for addressing the challenge of climate change. It’s natural for decision-makers to want a simple fix, but the reality is that optimising climate tech infrastructures will demand a mix of best solutions. While accountability is highly important, let’s not underestimate the psychology that accompanies these technological developments. With greater education from the industry, decision-makers can shift away from the 'silver bullet' mentality and more players will accept that backdoors are an important part of accelerating the energy transition. In 2022, we need to ensure that solutions to current problems make sense for businesses at all scales.
Toby Gill, CEO of IPG
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