The Enertechnos Digital Digest is a monthly breakdown that summarises relevant news stories in the sector and what this means for Enertechnos.
CLIMATE CHANGE PROGRESS
1. Renewables undercut fossil fuel cost
A new report by IRENA confirms renewables would save 156 billion USD to emerging economies with 62% of total renewable power added in 2020 costing less than the cheapest new fossil fuel option. We are now seeing declining year-on-year costs:
- Solar power (CSP): 16% cost decrease in 2020
- Solar power (PV): 7% cost decrease in 2020
- Onshore wind: 13% cost decrease in 2020
- Offshore wind: 9% cost decrease in 2020
2. CCC Report on Government’s climate action
Last week, the Climate Change Committee (CCC) published a progress report to Parliament, detailing ‘climate contradictions’ in the UK and the next necessary steps the UK government must take. The overarching message was that more must be done to keep up with the risks of climate change. The CCC reported on reducing emissions, adapting to climate change and recommendations for each sector in the government (including BEIS).
3. IRENA World Energy Transitions Outlook
Earlier today, IRENA’s World Energy Transitions Outlook was released along with a summary video addressing the need for rapid phase out of fossil fuels and further investments of 33 trillion USD in the energy transition, in order to reach the ambitious 1.5 degrees target.
‘This Outlook represents a concrete, practical toolbox to total reorientation of the global energy system and writes a new and positive energy narrative as the sector undergoes a dynamic transition’.
ELECTRIC VEHICLE NEWS
1. EV sales projections: Volvo, Ford, Jaguar…
By 2030, the UK will see a phase out from petrol and diesel cars and a steep increase in electric vehicles. Volvo, Ford, Jaguar and Lotus will sell only electric cars from 2030. More broadly speaking, by 2025 EVs will make up 20% of all cars sold globally, according to the latest forecast by UBS. Huge amounts more power is required to support this scale up and Enertechnos’ CTS cable can help deliver that power.
2. Combustion engines vs EVs
Although EVs still make up a small percentage of car sales, that percentage is growing fast. This Bloomberg article addresses some key points in the Bloomberg EVO (see below) and predicts peak sales of internal combustion engines already being behind us. A separate Bloomberg article predicts ICE’s as contributing to less than 1% of global car sales by 2045.
3. Bloomberg’s annual Electric Vehicle Outlook (EVO)
Earlier this month, BloombergNEF released their annual EVO, addressing the evolution of the road transport industry, including adoption of EVs and charging infrastructure. We are still not on track to achieve Net Zero by 2050 and the window for this is closing quickly. Aggressive action from policymakers will be needed. There will be a colossal 5,500 TWh electricity demand increase in 2050 for EVs or 8,500 TWh for the Net Zero scenario. For comparison, the entire consumption of electricity in the UK in 2020 was less than 300 TWh and this is exactly why we are active in this space.
Keep an eye out for our next Digital Digest.