Four Key Takeaways from the SIEW Energy Insights Sessions

by User Not Found Oct 30, 2019, 18:25 PM

Four Key Takeaways from the SIEW Energy Insights Sessions  

By Kit Bun

Oil Demand Could Peak as Early As 2020

With growth in GDP globally at around 3.6 per cent per year, oil demand has increased and crossed the milestone of an average 100 million barrels a day. However, growth in oil demand is slowing with the shift to electrification for transportation, renewable energy and growing societal awareness for sustainability, such as using recyclable resources and non-oil-based products. Randolph Bell, Director, Atlantic Council Global Energy Center, shares that based on the forecasting models that his organisation has developed, oil demand could peak as early as 2020 or as late as 2040, before gradually decreasing.

Hydrogen to Play A Bigger Part as The Energy Landscape Transforms 

Keisuke Sadamori, Director, Energy Markets and Security of IEA, said: “Hydrogen can be cost-effective in the future even with fossil fuels.” Hydrogen can help overcome many difficult energy challenges faced today: 

  • Integrate more renewables as an energy storage medium
  • Decarbonise “hard to abate” sectors such as steel, chemicals, ships and planes
  • Boost energy security.  Declining cost of solar PV and wind makes them a low-cost source for hydrogen production with production costs as low as US$1.60 per kilogram of hydrogen.

Managing the Energy Transition

Masaomi Koyama shared the importance of energy transitions that realise the “3E+S” concept – Energy Security, Economic Efficiency and Environment without compromising Safety – as we transform our energy systems.

This was agreed upon at the G20 Karuizawa Ministerial Meeting in June 2019. Mr Masaomi Koyama also emphasised the value of international cooperation and innovation as key enablers for energy transition.

More can be done for energy conservation such as making the energy consumption efficiencies of industries and products more visible, enhancing the efficiencies of thermal power generation and developing a natural gas market.

Business Models Needs to Evolve along with Energy Transformation

Nawaz Peerbocus, Director, Energy Transitions and Electric Power, at King Abdullah Petroluem Studies and Research Center (KAPSARC), shared that the future of electricity markets will need to transform as the grid changes. He added that, “a new business model has to be designed for consumers based on their willingness to pay and risk tolerances.”

Research has suggested that this can be achieved by the creation of an energy insurance market where utilities charge a fixed fee for guaranteed services instead of using kilowatt hours.