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Worldwide demand for energy is set to rise strongly in coming decades. It is essential that we revolutionise the way we consume power so emissions don’t soar accordingly, says Olaf Heil.
Across the world, the need for a secure, stable and affordable energy supply continues to rise sharply. According to research from Frost & Sullivan and Hitachi, global demand for energy is set to grow by 2 per cent a year up to 2020 and by a total of 55 per cent by 2040. Much of this increased demand comes from the world’s poorest communities, who need reliable and safe sources of energy to power economic growth. But how is this demand to be met without harming the environment?
An answer to this lies in social innovation, whereby new technologies and business models are leveraged across the energy industry to improve efficiency and sustainability. This allows governments, businesses and individuals to satisfy the ever-increasing demand for energy while minimising the impact on the environment.
As traditional fuels are phased out, the need to provide sustainable and clean energy offers a huge opportunity to develop and invest in smart technologies, which can be used in the generation, distribution, consumption and management of energy. Increasingly effective renewable energy and electric vehicle (EV) technologies, alongside the integration of data into energy grids and management systems, are examples of innovative technologies that are helping to reduce emissions while meeting rising demand.
We are also entering an era where green products and services are being enhanced or even replaced by smart products and services, which make the generation, distribution and consumption of energy more efficient.
Smart grids are introducing digital technology to the electricity network so they can intelligently monitor and control distribution. They are interactive and can provide real-time feedback, which can reduce grid losses and make energy consumption more efficient. Smart grids can also manage demand more efficiently than traditional grids, because they have the power to distribute energy to where it is needed most. Feeding back to these grids, there is a move to get consumers using smart meters, which allow for more accurate information on energy consumption and demand.
As well as smart meters, smart thermostats also enable more efficient consumption. It is predicted that by 2020 there will be over 30 million smart thermostats in Europe. These are examples of home energy management systems, which allow smart products to be connected through a centrally controlled system. Advancements in energy storage technologies and integrated energy management systems will lead to more connected homes using the smart grid.
Charging forward with EVs
The onset of EVs and the potential to integrate them into home energy management systems will encourage the transition towards a low-carbon world. EVs form part of the drive towards reducing our fossil fuel consumption and reducing emissions. According to research by Frost & Sullivan and Hitachi, there are already 1.2 million EVs on the road, and this is set to grow to 12.5 million over the next ten years. In conjunction with other innovations in transport, the EV is capable of reducing emissions by up to 10 per cent.
However, it is critical EVs derive their power from low-carbon energy. The different components of the energy management system are linked via a central data communications process which controls the distribution of clean power between the EV, the charging stand and the home energy management system. These systems will lead to energy savings of as much as 30 per cent, as they reduce losses and allow generated energy to be shared via digital technology.
Sustainable energy is a particularly pertinent topic after the Paris climate change discussions. One hundred and ninety countries gathered in Paris and signed up to a legally binding and universal agreement on climate change, in order to keep global warming below 2C while encouraging economic growth. This demonstrates that it is more important than ever to pursue social innovation in energy, which allows us to satisfy increasing energy demand via new smart technology while simultaneously ensuring produce clean and sustainable energy.
Olaf Heil, chief executive EMEA-CIS social innovation business platform, Hitachi
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