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Capgemini’s a year World Energy Market Observatory, 2022
You have to find a balance between two equally important imperatives.:
Ensuring Affordable Energy Supply and Fighting Climate Change
- Energy Reduction Initiatives Are Increasing Significantly and Promisingrye Reduce the risk of power outages this winter
- It is necessary to pay attention to Renewable energy Paradox – Europe in particular must not trade Russia’s dependence on gas for dependence on key components of a particular energy transition
- Acceleration needed – accelerated deployment of renewable energy and accelerated investment in key technologies such as green hydrogen electricallyZeUm Carbon capture and storage technology
Paris, OctoberoBell 13, 2022 – capgemini published twenty fourth its annual edition World Energy Market Observatory (Wemo)created in partnership with Witttime De Pardieu Brokas Maffei, Versa ETT When enadata. According to reports, there is of emergency Balancing two equally important responsibilities: security. affordable Fighting energy supply and climate change. This year’s WEMO finds out how achieve this balance Is possible tthrough a combination of short-term actions and long term Decision on reforming energy market design of Sustainability of energy supply, and Favorable financing terms for long-term green investment.
Key Findings and Recommendations from the report include:
coping with energy crisis with energy reduction When gas depository in the short term
Following Russia’s invasion of Ukraine, the long-term risks represented by Europe’s dependence on Russian gas have reached a breaking point. Russia’s dependence on gas in Europe, especially Germany, has worsened over the past two decades due to a decline in European gas production and an increase in gas consumption. This is further driven by the need to reduce greenhouse gas (GHG) emissions to advance net-zero targets, the closure of nuclear power plants following the Fukushima accident, and other economic considerations.
With Europe now forced to exit Russian gas, the security of gas supplies next winter will depend on three factors: capacity reductions by November 1, 2022, including the Rehden facility).Identification of gas import flows1and most importantly, the effectiveness of energy reduction campaigns. Energy-saving incentives, which have already been launched in many European countries, could bring about meaningful change.
Avoiding the Renewable Energy Paradox in the middle–To–long term
Under the new EU plan to accelerate the deployment of renewable energy to achieve independence from Russian supplies and electrification of the economy, a further €210 billion will be required for energy investment between now and 2027. Wind and solar technologies are currently the most promising solutions.2.
Colette Ruwiner, Senior Advisor, Energy and Utilities, Capgemini, said: “a careful balance There is a need to be hit.This meaning make the right bets in the short term solution like the sun and the windin the meantime Long-term construction of third generation large nuclear power plants or SMRs3 of Countries that can develop such programs. we need to be realistic about New solutions and their implications. debtor instance, Whator for economic and technical reasons, hydrogen Not progressing to a net-zero role by mid-century. therefore, G.lean H.hydrogen should do it reserved for industry CO2 difficult to mitigate.“
Among the renewable solutions available, solar has significant growth potential due to advances in innovative materials and methods to maximize solar energy such as bifacial cells, integrated lenses and reverse solar panels that can generate electricity at night. conceals sexuality. Solar farms are also more readily accepted by local communities than wind farms. However, 75% of all photovoltaic (PV) solar panels are currently imported into the EU from China, leading to a decline in PV production within the EU over the past decade. Europe needs to be careful not to replace Russia’s reliance on gas with reliance on players like China for key energy transition components such as PV panels, rare earths and rare metals, Observatory says . In order to regain sovereignty, European governments need to create the right technical, financial and regulatory conditions to develop domestic high-end vital industries such as PV panel and battery production. In addition, we need to agree on bold electricity market reforms to encourage investment in low-carbon generation.
On the other hand, nuclear power is undergoing a renaissance and is recognized as a central domestic energy source for decarbonizing electricity and stabilizing the grid. You have to keep the reactor running. In the medium term, the report says, governments in the UK, US, Japan, EU and China will need to continue building nuclear power plants, while introducing long-term reward systems for nuclear power to keep the private sector out. We need to encourage companies to build nuclear power plants. invest in this industry.
The energy crisis has also caused delays in coal shutdowns that are increasing carbon dioxide2 emissions. Carbon capture, utilization and storage (CCUS) technology is an essential tool for managing these emissions, and there is a need to accelerate implementation and investment in CCUS plants. In 2021, 97 new CCUS operational plants have been announced. The US and Europe account for his three-quarters of all projects in development. Investments need to continue as carbon capture capacity needs to increase by 2030 along the path to net zero by 2050. Annual carbon production capacity in 2021 only reaches 40 MtCO2.
Doubling climate action
Geopolitical turmoil has increased the need in Europe to develop nuclear power for domestic energies, such as renewables, and for countries capable of developing such programs. Coal use will increase, and while his GHG emissions in 2022 and 2023 are likely to be higher than in 2021, he believes there are two factors that could offset the impact. I have. First, energy conservation effectiveness can have a significant impact on GLG emissions. Second, a slowdown in the global economy in the second half of 2022 could reduce energy consumption and his GHG-related emissions.
Despite these trends, the political will to combat climate change still exists, growing from the world’s largest emitter. This is evidenced by his EU packages such as Fit for 55 and REPowerEU, his $430 billion inflation cut bill by the Biden administration, and the updated National Climate Plan. from India etc.
James Forrest, Global Energy and Utilities Industry Leader at Capgemini, said:energy security has been neglected in favor of fighting Against recent climate change, The current crisis presents opportunities for global energy markets and the government to solve two problems at once.by activating a solution like energy discount, Solar and wind in the short term Continue to unlock the biggest climate packages ever can make meaningful progress Between these equally important orders“
World Energy Market Observatory (WEMO) is Capgemini’s annual publication that tracks the development and transformation of the power and gas markets in Europe, North America, Australia, Southeast Asia, India and China. The 24th edition focuses on the triggers and effects of several successive energy crises, including the Russian and Ukrainian crises, and the consequences of increased inflation, particularly in Europe. As in previous years, the latest edition of his WEMO also includes in-depth articles on commodity markets, climate change, and regulatory policy. Energy transition, progress in clean technology. Infrastructure and sufficient supplies. supply and end customer. financials; the impact of the crisis on utilities and oil and gas companies;
The report was drafted primarily using a combination of public data and Capgemini’s expertise in the energy sector, and references data for 2021 and the first half of 2022. Special expertise in regulation and customer behavior as well as market data is provided by research. The team of De Pardieu Brocas Maffei, VaasaETT and Enerdata.
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1 Via the Baltic pipe, increasing liquefied natural gas from suppliers such as the United States, including supplies from Africa, Azerbaijan and Australia in the longer term
2 However, solar and wind energy sources are intermittent (as observed in 2021) and require storage to stabilize the grid.
3 SMRs : Small Modular Reactor