Renewable energy is not the only effective approach to reducing carbon emissions. Renewable Energy will continue to play a growing role in power generation capacity, he said, but it is projected that by 2050, 74% of global primary energy demand will still be supplied by coal, oil and gas.
Instead, industry leaders and energy experts recognize there are many different avenues to explore on the journey towards delivering cleaner energy. Now that the energy sector understands this premise, realistically, achieving a low-carbon future becomes a more complex challenge.
Mitigating climate change while balancing the growing global demand for energy remains a key focus for the industry, but there are many other considerations. Key challenges for the years ahead include addressing supply intermittency, navigating economic realities and ensuring a safe and consistent energy supply.
Natural gas remains the main focus of the transition to cleaner and more fuel-efficient fuels, supported by several factors: including falling renewable energy prices; the growing impact of innovations such as carbon capture and provision (CCS); alternative fuels for coal and oil; and expansion of wind and solar technology.
Costly moving towards cleaner energy, solar power, along with offshore and onshore wind generation, holds the key to the renewable resources of the future. The success of this emission-free technology is driven by cost reductions, coupled with increased generating capacity. As future energy generation leans towards a decentralized power grid, matching supply with demand will prove a challenge. New innovations or alternative fuels will be needed to combat the intermittency of renewable energy supplies to generate power when there is no sunlight or wind.
The large number of new energy solutions being brought to market creates a large trader risk for the energy industry. The danger of investing in the wrong technology, or in solutions that cannot be measured, acts as a barrier to new innovations being adopted.
Future Energy Sector
Natural gas remains the main focus of the transition to renewable energy, but also has an important role in the long-term energy mix, along with other alternative fuels such as hydrogen and biomass. These fuels support renewable energy in an effort to meet the growing demand in the energy sector of the future.
Biomass is a cleaner source of fuel that does not require large investments in infrastructure, as the process of generating electricity is the same as using fossil fuels.
Improve Energy Efficiency
In addition to reducing emissions by using alternative fuels, the energy sector is also developing ways to increase energy efficiency and reduce the environmental impact of traditional fossil fuels.
Another efficiency-enhancing technology, which can be applied to the manufacture of things like cement, steel, glass and metal, is waste heat recovery. That in heat recovery applications, organic rankine cycle (ORC) units increase the efficiency of the production process by converting low-level heat into useful power.
In an increasingly digital world, the Fourth Industrial Revolution is poised to transform the energy sector, just like most other industries.
Advances in Artificial intelligence (AI), The internet of things ( IoT) and machine learning will automate processes, optimize efficiency and lower costs. In a rapidly changing world, digital energy generation and distribution will enable the energy sector to model real-world behavior and simulate the resource and infrastructure challenges required to scale renewable energy in the future. Using technology to make decisions and create realistic models should make the simulations as realistic as possible.
Framework for success
To meet the uncertain challenges of the future energy sector, there is a growing industry confidence in market-based solutions involving government and private sector alliances. By working in unison, policymakers and industry representatives can create a flexible regulatory framework to facilitate the transition to renewable energy.
Government support and encouragement gives the energy sector scope to absorb and scale up new technologies. The increasing global demand for energy will put pressure on the market in the future as renewable energy becomes fully utilized. In the future, long-term seasonal generation reserves will be very important, including from fossil fuels.