Clean Energy for All ODS7
Green, sustainable and affordable energy for all as a substitute for fossil fuel consumption ODS7
Arturo J. Peñas Jiménez MSC
Senior Mining Engineer
Oil and Gas Specialist
The world is moving towards ODS number 7 with some encouraging signs that energy is becoming more sustainable and available. Access to electricity in the poorest countries is accelerating, energy efficiency continues to improve and in the electricity sector, renewable energy is achieving remarkable results.
Antonio Gutérres, UN Secretary General, has pointed out during the emergency of COVID 19 the importance of access to this clean energy, so that it is responded to in three ways:
- Giving priority to supplying energy to health centres and first response teams.
- Keep vulnerable consumers connected.
- Increase the production of reliable, uninterrupted and sufficient energy to prepare for a more sustainable economic recovery.
On the other hand, hit by the recession caused by COVID-19, it is likely that the fossil fuel (oil and gas) market will not rebound to last year's level of activity until 2023. However, their producers could diversify some of their traditional capacities and replace them up to 40 percent of 2019 revenues by serving renewable markets.
Many services provided by these players will be difficult to carry out in the context of energy transition operations (fracking and drilling machinery). However, companies involved in engineering, procurement, construction and installation services will find it easier to apply their "know-how" to the green shift.
In terms of market opportunities, most of these companies are looking to expand into low-carbon segments, meaning technologies or services that aim to reduce or prevent emissions from oil and gas extraction and production. This can be done by offering more efficient operations and digital solutions.
Another emerging market within the energy transition is clean energy infrastructure, where suppliers can provide services to support blue and green hydrogen infrastructure, carbon capture and storage, or energy storage in general. This is a market where engineering companies and equipment manufacturers will find great opportunities for growth.
A third option within the energy transition is to provide for the comprehensive development of renewable energy generation operations, such as through the development of solar power plants, offshore and onshore wind farms, and geothermal energy. The solar energy supply chain is highly fragmented, however, the wind market offers great potential for offshore contractors to support the development of offshore wind energy.
In terms of growth opportunities, the clean energy market shows rapid growth. The installed capacity of all the world's utility-scale renewable energy assets has doubled every five years since 2010, and will reach almost 1000 gigawatts (GWAC) by 2020, adding 600 GWAC of onshore wind capacity, 284 GWAC of utility capacity and 34 GWAC of offshore capacity. By 2025, this number is expected to grow by at least 50 percent to 1500 GWAC.
Arturo J. Peñas Jiménez
Senior Mining Engineer
Oil and Gas SpecialistTranslated with www.DeepL.com/Translator (free version)