DNV GL report looks at how energy transition can be ‘accelerated’
A new report from DNV GL has outlined strategies to ‘accelerate the global energy transition’ and stimulate the ‘rapid uptake of renewable energy’.
In a statement issued today (11 August), DNV GL said that, ‘thanks to the continuously decreasing cost of energy for onshore and offshore wind projects, and the availability of lower cost and more efficient solar modules, combined with advanced energy storage solutions,’ there is likely to be ‘another significant rise in renewables deployment this decade#.
However, DNV GL said that – while this development is to be welcomed – it will still ‘not be enough to meet the Paris Agreement target of keeping global warming well below 2°C by 2050’.
The report, entitled Transition Faster Together: Renewable solutions, strategies and policies for a clean energy future, outlined ‘focus areas’ where it believes ‘concentrated efforts can enable the large-scale uptake of renewable energy’.
In terms of suitable technologies, the report found that ‘wind, solar and, to some extent, energy storage have become mature and cost competitive’ and the ‘expansion and evolution of these technologies is critical’ for the next state of the energy transition. Hydrogen, carbon capture and ‘next-generation battery storage’ were among the technologies that the report said should be ‘scaled-up’.
The report warned that the current regulatory environment is ‘fragmented’, which makes it ‘difficult to implement infrastructure investments with long-term payback’.
DNV GL urged: ‘The relaxation of local restrictions and support for renewable energy projects are urgently needed, as countries and governments are looking for dynamic solutions in the post-corona landscape. Additionally, policies are required that provide predictable costs which favour investment in renewable energy by reducing risk and increasing rewards, including carbon tax or cap and trade system which fund subsidies for green energy projects.’
Ditlev Engel, CEO at DNV GL – Energy, commented: ‘We know we need to change the forecast to prevent a rise in the average global temperature to 2.4°C above pre-industrial levels. To do so, we must transition to a clean energy future faster, much faster. Although there is no silver bullet, there are steps that governments, businesses and society can take. Innovation is thriving and can deliver change at a rapid pace. But we need a combination of measures with technology, business models, policy and investment all working together to move towards a low-carbon future.’
The full DNV GL report is available to download here.