On the Brink of an Energy Revolution

This current energy revolution is reminiscent of past pivotal eras that shaped our world, such as the digital and industrial revolution. However, what sets this moment apart is the impetus of global warming and climate change, which have the potential to profoundly impact not only our lives but also the lives of future generations.

The Challenge at Hand.

The pressing issue we face today is climate change, largely driven by carbon emissions. Over the past few years, the alarming effects of carbon have become increasingly evident, sparking an urgent need for solutions. While efforts to combat climate change have been undertaken in the past, there is now a more concerted global endeavor to phase out outdated and inefficient energy generation methods, replacing them with sustainable advanced technologies and alternative energy solutions. These initiatives aim to decarbonize energy production, reduce greenhouse gas emissions, and more.

Although our society is making strides in adopting sustainable solutions, new and complex issues will continue to arise—one of those obstacles being access to capital. Considerable financial investments are required to drive change and mitigate the imminent effects of global warming. Unfortunately, obtaining such investments can be extremely challenging.

The allocation of capital investments is largely influenced by environmental, social and governance (ESG) requirements and policies. These criteria often favor specific focus areas, limiting funding opportunities for alternative approaches and ideas. Policymakers should establish a more flexible and diverse approach to distribute capital investments across the energy sector. This would allow for greater exploration, development and deployment of different strategies and methodologies that can work together or independently to create a sustainable future.

Current Sustainable Solutions in Action

While numerous challenges remain, significant technological advancements have been made to address climate change and reduce our carbon footprint. Notably, renewable technologies like PV solar, wind power and battery storage have experienced remarkable progress, leading to a tenfold reduction in installation costs over the past decade.

At our organization, we introduced "The ROC" (Remote Operations Center), a cutting-edge facility that employs advanced digitization to remotely operate assets for our clients nationwide. This innovation reduces the need for manual labor in power generation plants, allowing employees to focus on higher-level tasks that require human ingenuity. Digitizing operational and maintenance processes enhances energy output optimization, leading to better capital investment efficiency. Previously, centralized control of large-scale energy generation was labor-intensive and time-consuming. However, thanks to automation, advanced technology and innovative thinking, we can now ensure plants run more efficiently, sustainably, and cost-effectively.

Advancing Forward

Although energy generation techniques are improving, there is still work to be done to achieve true reform. The energy revolution demands a collective reevaluation of methodologies from all participants in the value chain. Power generation experts, political officials, technology organizations and others must come together to reconsider how we sustainably produce, store, transfer and utilize power.

Continued education and understanding play a crucial role in this process. Every stakeholder involved in the energy revolution must grasp the complexities faced during the transition away from fossil fuels and nuclear-based generation. We need solutions-oriented approaches from all parties to identify the most effective capital deployment strategies in the short- and long-term. Decision-makers must also recognize the interconnectedness of different renewable energy sources and their interactions with the existing power grid. The transfer and consumption of energy varies depending on the source. For instance, integrating renewables into existing grids alongside nuclear, coal or gas power sources intermittently dilutes their output. Education should not only target power industry professionals but also policymakers, other industries seeking solutions and even the general public.

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Figure 2. An IPSC ‘meeting of the minds’ to discuss the sustanabile production, storage, transfer and utilization of energy

One potential avenue for progress is to continue focusing on large-scale utility battery storage, which serves as a crucial buffer to address the variability of renewable generation. This approach plays a significant role in grid stabilization on the utility side and promotes the use of electric vehicles on the consumer end. While this idea presents opportunities, it also brings challenges related to raw material procurement, manufacturing demands and supply chain constraints necessary to support the provision of a substantial amount of energy. However, we must consider the carbon emissions associated with this approach, which leads us back to the starting point of our efforts to mitigate their effects on the environment. This prompts the question: What will replace large-scale utility battery storage?

The industry has made notable progress in identifying other finite resources like lithium in geological mines for energy generation. This is positive news, but determining global-scale production and potential threats related to alternative energy generation techniques will take time. Meanwhile, we continue to enhance existing carbon-based assets by bringing them closer to neutrality through carbon capture. While significant capital investments in research and development are required, this pursuit is essential to finding a lasting and sustainable energy generation solution.

If we can determine the most optimal mix of energy generation techniques, we may be able to establish a stable and reliable energy grid for the future. One potential strategy to achieve this is by breaking up current microgrids into sub-categorical, smaller, independent grids based on regions. These dispersed grids could potentially be managed even down to the consumer level, requiring a substantial workforce to transform carbon-based technology into new renewable solutions. Accomplishing this will involve apprenticeships, continued education and the creation of pathways for our highly skilled workforce. Additionally, we must establish infrastructure for training and skills development on a scale not seen since the inception of the electrical industry. Such endeavors can lead to sustainability, vast job opportunities and potentially create an entirely new energy industry vertical.

Collectively Finding a Sustainable Resolution

Responsibility for finding a solution lies with both the private and public sectors. Advanced programs are being developed to provide entry points into the energy sector, allowing the emergence of a new era in power generation. It is crucial to evaluate short and long-term organizational goals to develop strategic plans that minimize impact on end users while still meeting sustainability objectives.

So What Are The Next Steps?

As the energy sector focuses on finding a solution, new and differing teams are emerging, bringing fresh eyes and innovative ideas to the table. However, they may face challenges as they build their own knowledge base and could be overlooked or ignored by legacy players in the energy market. Therefore, collaboration and cooperation are essential across industries and sectors in order to find resolution. The problem at hand goes beyond mere political differences; it requires bipartisan collaboration and a collective goal of creating a sustainable future. We need to tap into the collective thinking of our brightest minds and work together to solve this complex issue. Relying solely on political leaders for action often leads to delays and no resolution. Instead, we should ask ourselves how we can contribute to help find a viable answer to these universal issues.

To advance the energy revolution, as experts in the field, we must act as stewards and educate consumers about the situation at hand. There needs to be a shift in the collective focus towards energy transfer and manufacturing. For example, promoting the use of LED lighting, which can reduce electrical energy consumption by tenfold. Moving forward, all aspects of research and development in the power generation industry should prioritize reducing consumption while minimizing the impact on consumers, thus creating lasting change.

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Figure 3. True reform will require continous education, stewardship and innovation from power gen professionals and other energy industry stakeholders if we are to create real change

While there is still much work to be done on the path to true energy reform, a great starting point is to stay innovative and continue educating ourselves as industry experts. By doing so, we can effectively inform and persuade the public, driving the necessary change needed to revolutionize the way we produce, transfer, store and use energy.

IHI Power Services Corp.