Fossil Fuels

Germany’s shutdown of nuclear power plants in April did not result in a ramp-up of lignite-fired power plants, despite concerns. Instead, there has been a significant increase in the share of renewables in the electricity mix, and the proportion of coal-generated electricity has fallen by more than 20%.

Despite the ever-growing number of nations committing to attaining a net-zero economy, there appears little prospect yet of a future free of fossil fuels, as Roger Lewis, an environmental, social, and corporate governance (ESG) expert at Downing LLP explains.

Indra Overland, the head of the Center for Energy Research at the Norwegian Institute for International Affairs, tells pv magazine how the Ukraine war is irreversibly changing the global energy landscape, making massive renewables deployment a certainty. But labor issues, equipment shortages, and reliance on Chinese manufacturing remain obstacles.

In a short interview with pv magazine, Indra Overland, head of the Center for Energy Research at the Norwegian Institute for International Affairs, explains how keeping a cap on gas and electricity prices is crucial to avoid long-term political damage and a loss of support for decarbonization plans. While it is difficult to say what the overall impact on the world economy will be, high costs and instability are rarely beneficial for economic growth, he says.

Six industry experts recently spoke to pv magazine about the relationship between LNG and hydrogen.

In an interview with pv magazine, Indra Overland, the head of the Center for Energy Research at the Norwegian Institute for International Affairs, explains how long-distance electricity and hydrogen transport differs from that of fossil fuels. He says strong Europe-North Africa connections could prove the viability of cables to connect continents, and notes that integration between countries and regions will increase.

A report says India’s energy investment commitments over the last 14 months largely feature measures for power transmission and distribution that could benefit greenhouse-gas-producing fuels more than renewables.

Even as solar installations continue to grow and renewables make their way further into the energy mix, a look at the bigger energy picture reveals a worrying lack of commitment among utilities to a transition away from fossil fuels. This was the conclusion of researchers at Oxford University, who found that globally, less than half of all utilities have prioritized the development of renewables over the past 20 years. Even among those that have focused on solar and wind, just 15% actually reduced commitments to fossil fuels at the same time.

Energy markets are not exactly free markets, and the replacement of existing generation is not entirely tied to price. There are artificial regulatory constructs and financial structures built into energy markets which can favor certain parties (utilities) and fuels (legacy coal, gas, and nuclear).

The two energy giants have announced plans to pivot away from fossil fuel assets as they expand their renewable footprints.