So are we doing enough in the Energy and Urbanization Transition?

In a recent SIEW Opening Keynote Address,  was an opening view by Cedrik Neike, a member of the Managing Board of Siemens AG and CEO Smart Infrastructure on “Accelerating Energy Transformation”, He asked the question to the audience: Are we doing enough?

Sadly he only had ten minutes. It would have been good to have this opening challenge expanded out so we can all recognize many of the areas that we are not doing enough in our need for the necessary energy transition.

Mr. Neike spoke of the battle we have in the energy and urbanization transformation, the need to accelerate the transition.

So his question sparked my thinking here that in my view, there are four parts to any Urban Transition.

The energy transition we are undertaking

Sources FT Guide: The Energy Transition
https://www.ft.com/reports/energy-transition-guide

In recent months I have become totally “wrapped up” in the energy transition occurring across the world. The whole transformation we are undertaking is not just for our energy sake; it is for more for our climate sake and having a sustainable future.

Energy is one of the critical drivers of our well-being, providing one of the essentials to survive and thrive. We need water, food, air, shelter, and sleep, and our source of energy underpins all of these as the energy transition in its solutions are aimed at cleaning up our climate and environment before it is too late and give us more energy to power the next growth cycle.

We are suffering increasingly from polluted air; we need increasing intensive farming. We are living in a very crowded planet where our shelter (home) becomes our “place to be or simply survive” Our water supplies need consistent refiltering as freshwater is increasingly growing in shorter supply. Humans need their sleep, and it is the environment that enables that, and as 70% of the world’s population by 2050 will live in cities, all are becoming  “highly dependent” on energy to fuel the system.

The Digitalization of Energy

We are on the cusp of a new digital era in energy. Digital technology has been involved in the energy system for decades.

What is new, is the pace of digitalization occurring through technological innovation, providing solutions that enable the energy system to be transformed?

Digitalization across the energy landscape is determining the system-wide changes of connectivity; it is linking, monitoring, aggregating, and controlling assets to cause a fundamental “blurring” between who supplies and who consumes energy.

The old paradigm of central grids will undoubtedly continue to provide the energy infrastructure backbone and keep balancing the electricity transmission network, but there will be significant differences at the local level (final point of supply) to trade energy through different grid edge designs and services.

Digitalization brings us closer to the end-user – knowing your grid edge and how to respond

Continuing the Energy Transition Journey

Source:https://innovateuk.blog.gov.uk

This week I have had one of those most intense periods of researching and then absorbing the material around different energy issues.

Everywhere you turn, you stumble across reports on one aspect or another of the energy transformation we are undertaking.

I am looking at this energy transition through the eyes of the innovator, as it offers so much in new solutions and designs that any innovator would love to be part of.

Energy is tackling one of the world’s toughest tasks, turning our existing energy system, reliant on fossil fuels into one based on renewables, is an enormously complex set of challenges in its goal of decarbonizing it.

There is such an innovation landscape of solutions that are contributing to the world achieving a more renewable-powered future. Technology innovation, suggested new business models, outline proposals for changing policies, processes, and market design all are being “sketched out.” It is overwhelming, but innovative solutions need to be continuously refreshed to reflect this consistent inflow of understanding, relating to the energy transition that is being undertaken. It is evident innovation must be way broader than just technological RD&D.

During this past week, I have been working through specific aspects of the energy transition model.

Accelerating Innovation in the Energy Transition Journey

https://www.iea.org/topics/innovation/innovationgaps/

What fascinates me presently is the energy transition currently being undertaken, due to the enormous amount of innovation options being considered and applied. New technologies are changing the very nature of how energy is going to be produced and delivered over the next ten to twenty years.

When you consider how vital energy is to society anywhere in the world, you realize what a significant time this is to curb the carbonization and radically resign the system based on renewables and green electricity. It might sound obvious, but having access to energy is crucial to our daily lives; it powers everything we do. Not just in the home, in our business lives, in our ability to function, it enables us to be productive or simply “plugged-in.”

We are undergoing such a revolution that will have an impact on all of our lives. During the next ten to twenty years, we are in a race to transform our energy system, one that moves from fossil fuel reliant to clean fuels based on renewable energy. We need to decarbonize and make energy greener.

Increasing innovation focus on the end-user segments within the energy transition story

Source of visual used: https://www.elprocus.com/overview-smart-grid-technology-operation-application-existing-power-system/

When you investigate and research the energy transition that is underway, the higher focus to date has been on the progress to replace fossil fuel with renewable power generation technologies. As crucial renewable energy solutions (wind, solar) are falling in price comparison, we are beginning to see clean energy solutions for industry, for the environment, and society, as a whole. Energy transition and moving to renewable power generation, though, it is not happening fast enough.

We need to focus more on the active implementation of renewable energy solutions sooner than later. We are in an increasing race to work towards achievable goals to reduce global warming in the very ambitious time scales of the UN Paris climate agreement in 2016. This comprehensive agreement is to keep the global average temperature rise remaining below the two-degree Celsius agreed by 2050.

Presently we are failing behind this “two-degree pathway” deemed as essential, and we are currently forecasted to release more carbon and gases into the atmosphere, and that has severe repercussions for our planet.  Governments will need to introduce more substantive policies to meet the emission targets they signed up too and society, industry and us, as individuals will have to undergo adjustments to accommodate this in our habits, consumption, and usage.

It is not just replacing energy sources; it is all about solution renewal end-to-end

Innovation adoption in the technology lifecycle for Energy Translation

Building the systems enabling framework. Source: World Economic Forum

Technological innovation has a central role to play in the Energy Transition currently being undertaken throughout the world. The shifts need to take the different parts of the energy system through a lifecycle approach to any future energy system

Briefly, our energy system has been based mostly on fossil fuels (oil, coal, gas) and as we extract these, they are non-renewable and the primary cause of the carbonization crisis we are all facing on planet earth. The solutions to replace these fuels are renewables based on wind, solar, biofuels, and have a sustainability credential. The economics of powering the energy system with renewables has got to the point where there is real competitiveness so we can undertake this energy transition and reduce the emissions of carbon into our atmosphere.

Confusion or Diffusion in Energy Transition?

Following on from my recent post, “Managing Energy Transition through Innovation,” let me build out the innovation argument further. Innovation needs to be talked up within Energy. It is the catalyst to all within the current energy transition underway.

There is this compelling and urgent need to accelerate low-carbon technology innovation if the world can achieve decarbonization of the energy sector between now and 2050, to significantly contribute to meet international climate goals set out in the 2015 Paris Agreement.

The twin combination of energy efficiency and renewable energy seems to be the only plausible way to achieve 90% of the emissions reductions needed by 2050 with renewables accounting for two-thirds of the primary energy supply by this date (IRENA analysis).  The essential requirement for energy efficiencies and renewable energy needs is to come from significant technology innovation and systemic innovation, so as o achieve these ambitious numbers. Will it?

To undertake such a radical redesign of the energy system, to pilot and rapidly scale critical renewable energy technologies requires a dramatic set of shifts in such an energy transformation. Can we?

Managing Energy Transition through Innovation

Source IRENA https://www.irena.org/

In the past few months, I have been placing an increasing focus on the energy transition we all need to undertake in our energy systems, to build a more comprehensive understanding of the parts that make up the whole of this transition.

It is one of the most critical places where innovation application is required and able to be conducted to deliver a sustaining impact in our world. Innovation solutions will provide the energy transition needed, and that is what makes it such a compelling area to focus upon.

For me, the energy transition that the world is undertaking requires all forms of innovation, to offer technically advanced, as well as breakthrough solutions, to an incredibly complex system of energy delivery. To redesign a complete energy system in twenty to thirty years, which is the current time frame being wanted to be achieved, is as demanding as you can get. I certainly want to play a role in this transformation, it is exciting, challenging, and demanding on all involved.

We need to appreciate the magnitude of the innovation challenges

Recognizing an innovation need

Increasingly I am noticing that Organizations are facing the increasing dilemma of how to organize and manage within their present systems and structures their innovation activities.

Innovation is becoming far too complex for the innovation process installed within the (one) organization. It is far too self-contained and not open to the collaborative environment we need today, where others outside the one organization can freely exchange and collaborate on the same platform.

I have argued for some time we do not have an “innovation fit-for-purpose” system, we still are focusing far too much on having separate solutions for the front end (IP discovery), then idea generation, and then keep separately the pipeline and portfolio management. We are still randomly applying a range of tools that individuals have collected for themselves to complete their part of the job and the outputs can’t be shared. We continue to exchange across different social channels, often seen as a necessary evil to be bridged, as often systems do not “speak” to each other.

We fail to connect up all of our innovation process and design. When will we have a fully integrated, end-to-end innovation system? Some software solution providers seem to be working towards it but tend to keep adding pieces and not stepping back and designing a fully integrated process. Why? We are managing innovation at often very sub-optimal levels of effectiveness.