• World
  • Sep 14

‘Transition to clean energy to take time’

The world’s much-vaunted transition to clean energy was the buzzword in sessions of the 24th World Energy Congress, which was held in Abu Dhabi from September 9 to 12.

Speakers addressed issues like the role of nuclear, hydrogen gas and other non-conventional sources of energy as a replacement for fossil fuels, which currently account for more than three-quarters of the world’s energy consumption.

Many executives and officials from oil-dependent Gulf states insist that while the change to renewables is essential, fossil fuels remain the future at least for the next few decades, despite the urgent need to fight climate change.

“For decades to come the world will still rely on oil and gas as the majority source of energy. About $11 trillion of investment in oil and gas is needed to keep up with current projected demand over the next two decades,” Abu Dhabi Oil Company head Jaber Sultan told the congress, which was attended by representatives of 150 nations and over 400 CEOs.

Energy from increasingly competitive renewable sources has quadrupled globally in just a decade, but insatiable demand for energy particularly from developing economies saw power sector emissions rise 10 per cent, a UN report said last week.

“All energy transitions - including this one - take decades, with many challenges along the road,” said Amin Nasser, the CEO of Saudi energy giant Aramco.

Why will the transition take time?

Despite important technological advances made in the past decade, renewable energy sources still make up just around 18 per cent and nuclear adds another 6 per cent of the world’s energy mix.

In the past decade, the adoption of wind and solar energy picked up rapidly as the production cost plummeted to levels close to that of oil and gas.

Oil is still the lifeline for the Gulf states, contributing at least 70 per cent of national revenues across the region, which has been cushioned by decades of immense profits from the flow of “black gold”.

Gulf nations have invested tens of billions of dollars in clean energy projects, mainly in solar and nuclear.

Dubai has launched the world’s largest solar energy project at a cost of $13.6 billion and the capacity to satisfy a quarter of the energy-hungry emirate’s current needs when it comes on line in 2030.

But critics say the addiction to oil is a tough one to kick, particularly when supplies remain abundant and the massive investment in infrastructure necessary to switch to renewables is daunting.

World Energy Congress

With more than 150 countries represented, it is the world’s largest and most influential energy event covering all aspects of the energy agenda.

Running since 1924, the triennial World Energy Congress enables dialogue among ministers, CEOs, policymakers and industry practitioners on critical developments in the energy sector.

Over the 90-year history of the World Energy Council, the Congress has been staged in more than 20 cities across the world.

As the world’s premier energy gathering, the Congress offers a unique opportunity for participants to better understand energy issues and solutions from a global perspective.

World Energy Council

Formed in 1923, the World Energy Council is UN-accredited global energy body, representing the entire energy spectrum, with more than 3,000 member organisations located in over 90 countries and drawn from governments, private and state corporations, academia, NGOs and energy-related stakeholders. It’s headquarters in London.

The World Energy Council informs global, regional and national energy strategies by hosting high-level events, publishing authoritative studies, and working through its extensive member network to facilitate the world’s energy policy dialogue.

It is the principal impartial network of leaders and practitioners promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all.

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