Investment in research and innovation and an increased focus on emerging markets will define the renewables industry over the coming years, according to leading industry figures who gathered in Abu Dhabi this week for a high-level discussion at the World Future Energy Summit 2012.
Speaking at the plenary session Business Leaders in Renewable Energy – Insights from the Executive Suite, COO Haugland, together with eight senior figures from the energy sector, agreed that 2012 was likely to be a challenging year “but that those challenges could be overcome by a commitment to strategic investment, research and innovation.”
“The next ten years is going to be a major transition period. We need to take the next generation of renewable technology from the drawing board, where it is now, to being fully scaled up,” said Haugland adding DNV is committed to investing 6 to 7 percent of turnover to research and development.
Panelists agreed on the need to continue investing in emerging markets, with Tulsi Tanti, Chairman, Suzlon, saying this can transform obstacles into opportunity. Juan Araluce, President, Vestas, and Frank Wouters, Director, Masdar Power, emphasized economies of scale and scalability. Steve Bolze, General Electric, said investments in new technologies will be critical in the longer-term, and that centralized generation for vast geographic may be possible, though expensive. Mark Carne, Shell, emphasized changing energy portfolios, pointing out that 2012 will be the first year that Shell produces more gas than oil.
Challenges and opportunities
Expanding on the challenges and opportunities facing the renewables industry, Haugland said: “Perhaps the greatest challenge is the price compared to that of conventional forms of energy. Renewable energy is still more expensive if you look at the price per kilowatt-hour. However, that is an isolated way to look at reality. If you look at the extra costs which the use of fossil fuels incurs for society in relation to the environment, climate adaptations and health, then the picture looks different – naturally in favour of renewable energy sources. If you add that fossil energy is subsidised by more than USD 400 billion each year, it can be seen that there are opportunities for accelerating the transformation – if you want to.”
According to COO Haugland the atmosphere at the WFES was “Serious… We must act now. Even during a period when the economic framework conditions are forcing politicians and authorities to focus on short-term solutions and priorities. But the atmosphere was also one of hope that public and private players can together deal with a lot of the challenges facing the world, including in the renewable energy field. Compared to previous years, the discussion was more integrated – renewable energy was not discussed on its own but instead together with related issues, such as climate change, poverty and economic growth. That was very positive.”
Under the theme of ‘Powering Sustainable Innovation,’ WFES 2012 attracted more than 26,000 attendees over the four-day summit in Abu Dhabi. The summit was hosted by Masdar, Abu Dhabi’s long-term investment in the commercial realisation of renewable energy and sustainable technologies.
The summit is recognized as one of the world’s foremost gathering of communities dedicated to clean and renewable energy, energy efficiency and the environment. Now in its fifth year, it is the leading international events for government and industry decision makers committed to finding viable, sustainable solutions to the world’s growing energy challenges.
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Offshore WIND staff, January 24, 2012; Image: dnv