Building a resilient and sustainable tomorrow

Since 1987, when the Brundtland Commission formally recognized the concept of ‘sustainability’, we have come a long way to redefine our future through a new, cleaner lens. The critical climate change discourse that began at the close of the 20^th century has been unfolding steadily through a series of agreements and protocols.  Over the years, we have had some big reasons to celebrate and many more to ponder over, such as rising global temperature and seawater levels. 

The World Economic Forum's 2022 Global Risks Report rightly identifies climate action failure as the biggest long-term danger that humanity will confront in the future decade. Countries and corporations are ramping up their net-zero targets with bold declarations to become carbon neutral in a not-too-distant future. In a report by Intergovernmental Panel on Climate Change (IPCC), scientists have clearly mentioned that “with climate change, some parts of the planet will become uninhabitable”. Not a surprise today, the Glasgow Summit held last year witnessed an overpouring of similar concerns with countries pledging to stop the use of fossil fuels while recognizing the potential of alternate energy 

Financing clean power

While today's aspirations are encouraging, there is a parallel need to ensure continuous effort for comprehensive climate recovery. Renewable energy companies have raised less than USD 160 billion in debt markets since the Paris Agreement was signed in December 2015, compared to USD 3.6 trillion for non-renewable energy producers, according to Bloomberg figures. The promises made by governments are promising but often staggered towards their objective of limiting global temperature rise to 1.5° C. Renewable energy bond sales and loans totaled less than USD 10 billion this year, while fossil-fuel companies received USD 190 billion. The International Energy Agency (IEA) published a report to put these numbers in context. The road to net-zero emissions in the global energy system by 2050 will require an annual investment of USD 820 billion in electric networks by 2030, the International Energy Agency (IEA) estimates. The price is high, but it is vital.

Companies and governments are evolving from being decarbonization enthusiasts to becoming positive energy transition directors. Massive economic stimulus programmes to encourage recovery from the pandemic are expected to commence in 2022. Additional financing for renewable energy is essential to meet the objective of building more resilient and sustainable economies. Today, countries and corporations are changing their energy portfolios, attempting to embrace cleaner fuels and phasing out high-emission sources, resulting in a focus on the energy sector, which accounts for 73.2 percent of total global GHG emissions. China, USA and India are leading the list of countries, accounting for two-thirds of global renewable expansion by 2022. 

Especially in power, a key contributor to global emissions, interventions are necessary as demand is expected to only accentuate in the coming years. According to a report by PwC, the world needs USD 13 trillion to bolster power transmission and distribution networks across the globe through 2050. Here, a steady transition to hybrid round-the-clock power that functions with a mix of renewable sources powered by gas turbines can bring visible difference. The rapid integration of renewable power into the grid infrastructure creates its own set of challenges — especially in grid instability. Early adopters of renewables are realizing the need to strengthen grids with additional technologies to achieve critically required levels of flexibility, scalability, dependability, and to maintain grid inertia, the absence of which can result in frequent voltage or frequency fluctuations and blackouts. 

Gas power has emerged as a driving solution to overcome this challenge. Offering the lowest carbon emissions per megawatt hour of power generated among all fossil fuels, reaching as low as 310 grams of carbon dioxide per kilowatt hour (gCO2 /kWh), versus about 547–935 gCO2 /kWh or more for liquid fuel plants, and 750–1,000 gCO2 /kWh for coalfired power plants – gas can act as a force multiplier for renewables, complementing alternative varying energy sources with reliable, on-demand electricity that can be ramped up or down rapidly. Gas power plants can also be deployed relatively quickly, in as little as a matter of weeks to months. These many benefits are making gas a key vehicle to drive energy transition. Climate change leaders, whether Governments, big industries, or small companies, will do well to embrace the bridge role that gas can play towards developing an energy efficient future. 

For a sustainable India

India said in its report to the United Nations Framework Convention on Climate Change (UNFCC) that it is on track to meet its voluntary promise of reducing emissions intensity of GDP by 33 to 35 per cent by 2030. Now, with the recently unveiled Green Hydrogen Policy that aims to achieve 5 million tonnes of green hydrogen by 2030, the country is well on track to realizing its aspiration of achieving a sustainable tomorrow. India’s robust growth aspirations should be properly balanced with policy decisions and adequate financial availability – starting now. If India wants to grow its economy sustainably, it must prioritize the building, operation, and maintenance of its existing fleet of renewable energy assets. 

Undoubtedly, we need sustainable and cleaner forms of energy to foster growth, development and survival for the long-term. Resolving the energy trilemma of affordable, reliable and sustainable energy isn’t easy for emerging nations like India. Accelerated growth of renewables and gas power can rapidly change the trajectory on climate change. Such a strategy can be adopted instantly and can fast-track the journey towards decarbonization. 

The article has been written by Shilpa Gupta, India Engineering Leader - GE Gas Power