a ELECTRIFICATION ERA Is INDUSTRY prepared?
12
We are on the edge of an a ELECTRIFICATION ERA Is INDUSTRY prepared? Dr Silvia Madeddu 23.02.2021 PIK – Potsdam Institute for Climate Impact Research [email protected] https:// twitter.com/MadedduSilvia
Transcript of a ELECTRIFICATION ERA Is INDUSTRY prepared?
We are on the edge of ana
ELECTRIFICATION ERAIs INDUSTRY prepared?
Dr Silvia Madeddu
23.02.2021
PIK – Potsdam Institute for Climate Impact [email protected]
https://twitter.com/MadedduSilvia
The ongoing RENEWABLES TRANSITION shows that ELECTRICITY is easier and faster to decarbonise than non-electric fuels
Renewables are becoming increasingly cost competitive with fossil fuels (in some countries they are already cheaper!)
In 2020, for the fist time, renewables overtook fossil fuels in the generation of electricity in Europe (38%)
Sources: Agora Energiewende and Ember (2021): The European Power Sector in 2020: Up-to-Date Analysis on the Electricity Transition (left image) IRENA (2020), Renewable Power Generation Costs in 2019, International Renewable Energy Agency, Abu Dhabi. (right image)
The ongoing RENEWABLES TRANSITION shows that ELECTRICITY is easier and faster to decarbonise than non-electric fuels
Reference(current policies)Climate policyBalanceH2-focusSynfuel-focusElectrification-focus
Source: Preliminary data from IAM REMIND (Luderer et al, Accelerated electrification based on cheap renewables facilitates reaching Paris Climate targets, under revision)
Electricity Non-electric fuels
REMIND, EU level, 1.5 °C scenario - Carbon Intensity of energy carries
The ongoing RENEWABLES TRANSITION shows that ELECTRICITY is easier and faster to decarbonise than non-electric fuels
Reference(current policies)Climate policyBalanceH2-focusSynfuel-focusElectrification-focus
Source: Preliminary data from IAM REMIND (Luderer et al, Accelerated electrification based on cheap renewables facilitates reaching Paris Climate targets, under revision)
Global level, below 2°C scenario, with limited bioenergy (100 EJ/y) & CCS (4 GtCO2/y).
Electricity Non-electric fuels
REMIND, EU level, 1.5 °C scenario - Carbon Intensity of energy carries
Investments in CARBON-INTENSIVE technologiesfor INDUSTRY will JEOPARDISE THE EU GREEN DEAL
2021 2050
Investments in CARBON-INTENSIVE technologiesfor INDUSTRY will JEOPARDISE THE EU GREEN DEAL
Industry is responsible for circa 30% of theend-sectors CO2 emissions in Europe, whenprocess and indirect CO2 emissions fromelectricity and central heat use were included.
lifetime 20 – 40 years
The RENEWABLES TRANSITION requires an adequate TECHNOLOGICAL TRANSITION in INDUSTRY
Mature and efficient technologies already exist that could be readily implemented to electrify industry
The RENEWABLES TRANSITION requires an adequate TECHNOLOGICAL TRANSITION in INDUSTRY
As of today, only 19% circa of the energy used in the European industry is supplied by electricity (circa 25% at final energy level)
From Madeddu et al., The CO2 reduction potential for the European industry via direct electrification of heat supply (power-to-heat), Env. Res. Letters, 15, 2020, https://doi.org/10.1088/1748-9326/abbd02
The RENEWABLES TRANSITION requires an adequate TECHNOLOGICAL TRANSITION in INDUSTRY
From Madeddu et al., The CO2 reduction potential for the European industry via direct electrification of heat supply (power-to-heat), Env. Res. Letters, 15, 2020, https://doi.org/10.1088/1748-9326/abbd02
- 78% of the energy demand (excluding feedstocks) is electrifiable with technologies that are already established.
- 99% electrification can be achieved with the addition of technologies currently under development.
- Such a deep electrification could reduce the industry energy consumption by 20%
- Such a deep electrification reduces CO2 emissions already based on the carbon intensity of today’s electricity (∼300 gCO2 kWhel−1).
- With an increasing decarbonisation of the power sector (12 gCO2 kWhel−1 in 2050), electrification could cut CO2 emissions by 78%, and almost entirely abate the energy-related CO2 emissions, reducing the industry bottleneck to only residual process emissions.
INDUSTRY ELECTRIFICATION can be fostered by creating a level plain field in the energy market and a COMPETITIVE ELECTRICITY PRICE
INDUSTRY ELECTRIFICATION can be fostered by creating a level plain field in the energy market and a COMPETITIVE ELECTRICITY PRICE
- Industry investments in electrification, not only monetary but also for the acquisition of technical expertise will stall until a clear scenario is presented where electricity is going to be cost-competitive.
- Economic incentives and appropriate policies are needed to support industry transformation:
o Reduction of electricity taxation and levies to create a level playing field across energy carriers and a competitive electricity price.
o Carbon pricing system.o Stop subsidies for fossil-based technologies
Source: de Boer, R., Marina, A., Zühlsdorf, B., Arpagaus, C., Bantle, M., Wilk, V., Elmegaard, B., Corberán, J., & Benson, J. (2020). Strengthening Industrial Heat Pump Innovation: Decarbonizing Industrial Heat.
Electricity/gas price ratio in Europe
THANK YOU!
