Energy islands

T
he phrase “good things come in small packages” is proving true as agriculture turns to microgrids — small-scale powerhouses that could offer farmers much-needed energy without the use of fossil fuels.

The food and agriculture industries are responsible for approximately 30 percent of the world’s energy consumption and 22 percent of global greenhouse-gas emissions.

Disconnecting from the larger power grid and running off a smaller grid powered by green energy sources like solar or wind can reduce the agricultural carbon footprint, save on cost, protect from cyber threats and even serve as an extra income stream.

Microgrids are energy distributors that serve a small geographical area like a college campus, hospital or farm.

They can operate autonomously or can be a hybrid model that disconnects from the main power grid and continues to function in “island” mode when needed — such as in the event of a power outage due to a storm or in the event of a cyber-attack.


Microgrids promise a climate-safe, sustainable and inexpensive way for rural communities.

Renewable Energy World


After an attack, a hospital, for example, could detach from the main grid and keep running.

Microgrids, when connected to the main grid, can also balance power supply and demand by using complex computational techniques using real-time data analysis. Two-way communication between a microgrid and the main power grid means it can take power or give it, based on over-supply or a required injection. This symbiotic relationship offers stability to both.

And if you have excess energy, you can sell it back to the main grid. Depending on tariff rates you could end up with extra cash. But the microgrid can also be an autonomous entity receiving its power injections solely from green energies.

In this case, the grid can receive energy — say, from solar panels — store it and supply it, with zero reliability on the main grid.

Agricultural industry leaders, farmers and food suppliers can now turn to this more reliable, cost-effective and sustainable energy source to maintain uninterrupted operations.

Bigger isn’t always better

Microgrids may be smaller than the traditional power grid but in a big way, they are a reliable source of power during unexpected outages and can mitigate interruptions to business continuity.

The ability to disconnect from the main grid and run off stored energy allows communities or businesses including farms and food suppliers to operate when the main grid is inaccessible.

They’re also resilient, able to modify and recover from severe and sudden disruption.

Plunkett Research’s 2023 statistics report estimates the global food and agriculture industry to be worth U.S.$11.1 trillion, which equates to 11 percent of total gross domestic product. Losses during downtimes therefore, can be catastrophic.

Dairy farmers, for example, require power for milking, processing and storing the product. An electricity shutdown effectively means a business halt and potential for spoilage.

And in countries experiencing an energy crisis, agriculture takes a significant hit.

South Africa, for example, protects its main grid by load shedding. This means power is temporarily shut down when demand comes close to shedding the grid of what it has to offer in order to avoid grid failure. These outages can last up to eight hours per day.

Though this protects the main grid, shutdowns wreak havoc on agriculture.

“It is beyond dispute that every sector of the South African economy has suffered from the impact of rolling blackouts. But agriculture has suffered disproportionately,” says Christo van der Rheede, chief executive officer of AgriSA, in an article for the Daily Maverick.

So a country that experiences extensive outages would seem a perfect fit for microgrids.

“A technology of the future, microgrids promise a climate-safe, sustainable, and inexpensive way for rural communities to harness their own resources and meet their communal needs,” says Renewable Energy World, which covers news and trends in the renewable-energy industry.

The problem is, while microgrids might offer security and save money over time, it takes funding to make the switch. And not everyone has this kind of money.

Is it worth it?

Countries like Australia are less vulnerable to power loss than developing countries that experience many power outages throughout the year, but increased cost of power could be incentive enough to invest in an energy shift.

And switching to green energy means significant cost savings.

Tania Chapman, general manager of farming operations at Nutrano Produce Group, one of Australia’s leading producers of fresh fruit, says it’s complicated to maintain earnings among rising energy costs and maintaining governmental sustainability guidelines.

“If I look at one of our sites the annual bill is around $110,000 currently for the electricity, putting in solar would cost me $120,000 and it would reduce the electricity bills by around 25 to 30 percent,” she tells ABC Rural.

Adding a microgrid into the solar mix could be significantly better.

With global temperatures on the rise, the volume and severity of extreme meteorological events can be catastrophic to not only large industries, but like those of developing countries or remote communities. And access to the main energy grid can be unstable, which also limits socioeconomic development.

Microgrids are less costly than extending the main grid, so many countries are investing in their rural communities. It’s not only a cheaper option but it also allows governments to meet commitments and goals set forth in the Paris Agreement. Tax breaks can also help offset the costs of renewable-energy equipment.

As of 2019, there were 4,500 microgrids globally, but the market is expecting a major growth spurt in the coming decade as governments are keen to mitigate financial risk and develop rural areas.

More like this: Growing a hydrogen economy

On the path to sustainable
construction

The United Arab Emirates is a popular tourist destination, with much of the draw attributed to its impressive megastructures: the Burj Khalifa and the Future Museum in Dubai, Abu Dhabi’s Emirates Palace and Qasr al Watan, the Louvre and, of course, Sheikh Zayed Mosque.

There is over U.S. $710 billion invested in ongoing construction projects aimed at fostering economic growth and development. At the same time, architectural marvels and rapid urbanization often come at the cost of environmental sustainability.

Listen to the Deep Dive:

Shadeedha Saradara is a Ph.D. student at Khalifa University. With KU professor Malik Khalfan, she examined the sustainability initiatives surrounding construction efforts in the UAE, evaluating their effectiveness and drawing comparisons with regional and international standards.

The UAE government is unequivocally committed to attaining its sustainable development goals.

Shadeedha Saradara, Khalifa University

Saradara says the built environment is a major contributor to global environmental challenges, responsible for over 50 percent of the annual global extraction of materials and a significant portion of greenhouse gas emissions.

“In 2015, the same year members of the U.N. signed the Paris Agreement to substantially reduce global greenhouse gas emissions, the construction industry was responsible for 38 percent of the total world carbon dioxide emissions,” Saradara says. “It’s imperative that we quickly and substantially reduce these emissions in the building sector on a worldwide scale if we want to achieve the objectives outlined in the Paris Agreement.”

However, the journey to sustainable construction is fraught with obstacles. The UAE, a nation synonymous with rapid development and constant construction, serves as a case study for this challenge.

“The UAE’s transformation from a modest economy to a global hub has been meteoric,” Saradara says.


IMAGE: Unsplash

“But this comes with a hefty carbon footprint. The construction sector here must now pivot toward a circular approach that emphasizes reuse and minimizes waste. This isn’t just an environmental imperative, it can also have economic benefits, reducing the long-term costs associated with material consumption and waste management,” she adds.

Saradara notes the UAE’s commitment to sustainable development is evident in its policies and practices. Despite its reliance on fossil fuels and the environmental pressures of air-conditioning and desalination, the country is striving to reduce its carbon emissions and enhance its sustainability credentials.

“The construction sector stands as a cornerstone of the UAE’s economy, but this comes with a set of environmental responsibilities,” she says. “There are new green building standards and certifications which are augmented by existing global certifications, and efforts to reduce emissions from the construction industry and construction and demolition waste are all backed up with Emirate-level programs and policies.”

More legislation and initiatives are still needed to address the challenge of sustainable construction, but Saradara says the UAE is definitely heading in the right direction: “The UAE government is unequivocally committed to attaining its sustainable development goals, showcasing its dedication to ensuring a sustainable future for its population and natural resources.”

Ask the experts: What’s the future of hydrocarbons in an increasingly green world?

Behaviors must start changing now

Michael Jefferson


From the supply side there are a few problems facing us as we (or some of us) endeavor to move to “an increasingly green world.” For example, the UK is Europe’s windiest country, yet in the first 11  months of 2021 there were at least 85 days when wind energy failed to provide even 10 percent of the country’s electricity grid load, leaving gas (and sometimes even coal) to come to the rescue.

Things are not helped by the fact that this sector has only just begun to invest in significant volumes of back-up storage, and wind energy producers who look as if they may produce electricity when not required are paid to shut down temporarily.

Michael Jefferson

Michael Jefferson is a professor at ESCP Europe Business School (London campus). Read more›››

Formerly Group Chief Economist, Shell International (1974-1979), and other planning and oil supply and trading posts (1979-1990); deputy secretary general, World Energy Council (1990-1999); lead author, contributing author, IPCC reports; recipient of the IPCC’s certificate for contributing to their award of the Nobel Peace Prize, 2007.

Chairman, Policies Committee, World Renewable Energy Network, 1991-2007; senior editor Energy Policy journal 2013-2019.‹‹‹ Read less

On the demand side there are serious issues arising about how societies will be able to cope as demand for electricity rises concurrently with pressure to reduce reliance on hydrocarbons. The demands of re-charging electric vehicles is but one of these. There is also the rising opposition to plastics. We should all abhor plastic waste. But there are estimated to be up to 9,000 plastics products, all reliant on hydrocarbons (petro-chemicals is perhaps a more relevant term here).

You may gather that I believe we are still only in the early stages of realizing how great the challenges are of seeking to move forward along an increasingly green path.

Hopefully a greater effort will be taken in using solar power, wind towers, learning from traditional architectural layouts to reduce dependence on hydrocarbons. But we all need to be aware of the many basic needs provided for by petro-chemicals, realistic time horizons for moving off petroleum in the transportation sector, and the key contribution which gas will make to the needed energy transition. In many countries, the general population remains concerned about the safety of nuclear power, and perhaps insufficiently aware of the current constraints or challenges to wind and wave power, and modern biomass.

Readers of this may find me unduly pessimistic, so I had better point out that I believe human activities have raised near surface global temperature by just over 1 degree Celsius over the past 140 years, and I fear they could raise it by nearer 3 degrees (rather than 1.5 or 2.0) over the remainder of this century.

I have worked with climate research scientists for over 40 years, with the Intergovernmental Panel on Climate Change (IPCC) between 1991 and 2015 in various roles, and believe strongly in the need for sound precautionary policies and investments — as well as behavioral changes — now to counter climate change, even if the start of a new global solar minimum happened to be just round the corner.

 

Hydrocarbons will continue to have a significant role

Mai Bui


Hydrocarbons have provided the majority of the world’s energy needs for centuries. Employed in many areas of society, hydrocarbons have played an important role in the power, industry, transport, commercial and residential sectors, with 84 percent of the global primary energy consumption currently coming from fossil fuels. At a global scale, total anthropogenic CO2 emissions reached 36.4 Gt/year in 2019, which reduced to 34.07 Gt/year in 2020 due to the Covid-19 pandemic.

Subsequently, a growing number of countries and companies have recognized the need to commit to a target of net-zero emissions by 2050 (or 2060 as in China’s case).

Mai Bui

Mai Bui is a research associate at the Centre for Environmental Policy at Imperial College London.

Even at a national scale, reaching net-zero will be a major challenge, requiring unprecedented levels of greenhouse gas emissions reduction and removal from the atmosphere. The net-zero transition will employ a portfolio of different technology options, including renewable energy, hydrogen and energy-efficiency improvements.

Carbon-capture and -storage (CCS) technologies will also play an important role in reducing emissions associated with hydrocarbons in the power and industrial sectors, as well as generating low-carbon hydrogen (e.g. from natural gas or biomass) to use for transport or residential heating. CCS can also be used for CO2 removal from the atmosphere, which can be used to offset any residual CO2 emissions that are not captured.

It is highly likely that hydrocarbons will continue to have a significant role for the upcoming decades, particularly in countries and sectors that currently rely on carbon-based fuels. Although 2050 seems far into the future, reducing emissions at a gigaton scale will require major infrastructure changes and large-scale deployment of low-carbon technologies.

Carbon capture and storage could be key to helping tackle global warming. CREDIT: Shutterstock

Furthermore, governments will have an essential role in developing policy that will support and facilitate the transition to net-zero. Although urgent action is needed immediately, it is crucial that the transition to a green-oriented future is affordable and socially equitable.

We need to strike the right balance between cost, energy security, meeting emissions-reduction targets, while also avoiding unintended negative impacts to society and the environment.

 

3 pathways to a net-zero future

Martin Haigh


In the long run, we need to get to net-zero CO2 emissions to stop the world’s temperature rising.

That means that we need to be on a pathway to reduce our use of fossil hydrocarbons. In turn, that boils down to three options:

  • fossil hydrocarbons are not burned but used to make products like plastics (in which case those need to be either recycled or disposed of responsibly);
  • fossil hydrocarbons are burned and the emissions are captured;
  • or fossil hydrocarbons are burned and the emissions are balanced by negative emissions elsewhere.

Then the debates start about how we achieve this. Because of the pervasive use of hydrocarbons across our economies and lives, the implications are profound: justice and equity. Which uses are seen as more legitimate? How much more time should developing countries have to decarbonize? Indeed, should developing countries’ emissions rise for a period in order to continue meeting human-development goals?

  • demand or supply of fossil hydrocarbons? Can you effect change by stifling production of fossil hydrocarbons, or do you need to address demand for any change to be lasting?
  • economics and practicalities. How much change is realistic by 2030? What are the knock-on consequences of changes? Which policies are most effective in driving change?
Martin Haigh

Martin Haigh looks after the long-term energy modelling behind the Shell scenarios.

These are just a few examples, but the “how” touches almost all areas of politics, economics, technology and society. We explored a range of alternatives in our scenarios: Waves, Islands and Sky 1.5, available here. These look at wider drivers of change and the implications for the whole energy system, hydrocarbon and non-hydrocarbon.

In the Sky 1.5 scenario, a stretching and rapid world of change across the energy system, we look at the most practical means of keeping the temperature rise to 1.5 degrees C above pre-industrial levels by 2100. All available options come into play, including negative emissions, and both technological (bioenergy with CCS) and natural (nature-based solutions).

In Waves, stronger demand combines with a widespread desire to drive the energy transition by focusing on elimination of fossil hydrocarbons as the root cause of climate change. In common with Sky 1.5 is strong growth in renewables and hydrogen, but in this scenario, CSS does not play a material role.

Going green means more than just reducing our energy consumption. IMAGE: Shutterstock

The result in Waves is that emissions take longer to peak and fall. In Islands, near-term energy (and hydrocarbon) demand grows more slowly than the other scenarios, as countries focus on trying to stimulate sluggish economies and address local concerns.

The flip side to factors leading to the slower growth in demand is that the pace of transition is slower and similar to historical norms. Here are our outlooks for the future of oil demand and supply.

In the long-term, demand moves away from oil. The timing of the peak of demand for oil is quite different, possibly even this decade (Sky 1.5). But there are very different trends underneath this, both regionally and across sectors. Some uses, notably the “non-energy use” sector (material products like plastics), continue to be robust throughout the century, while it moves away more rapidly in sectors like car travel. Our data set provides the figures behind this graph, together with outlooks for other hydrocarbons (natural gas, coal and bioenergy, the non-fossil hydrocarbon), alongside other energy sources, and then how the uses of these different energy forms evolve.

 

Gulf countries need to take the lead

Adnan Shihab-Eldin


With increasing momentum in favor of switching to global clean-energy sources (net-zero emissions) by around 2050, the United Nations Climate Change Conference of the Parties (COP26) in November adopted a series of decisions embodied in the Glasgow Climate Act (GCA), which aims to achieve the Paris Agreement’s climate-change goal of keeping the projected rise in global average temperature below 1.5 degrees C.

Renewable technologies, solar and wind in particular, are at the forefront of the clean-energy mix. Nuclear energy and clean, carbon-neutral fossil-energy fuels could competitively be part of the mix, but their roles and shares are uncertain due to multiple, and sometimes contradictory, views about the optimal path of the transition, its component technologies and who will bear investment costs estimated at about $5 trillion annually by 2030, according to the NZE2050 scenario from the International Energy Agency (IEA).

There remain significant differences among industrial countries over how to proceed with emissions reductions: Some vehemently oppose expanding nuclear energy and clean fossil-energy technologies and some European countries are against including such technologies in the list of clean-energy sources and products eligible for global trade, raising obstacles to plans to export and import fossil-based clean (blue) hydrogen and ammonia.

Adnan Shihab-Eldin

Dr. Adnan Shihab-Eldin is a senior visiting research fellow at the Oxford Institute for Energy Studies and a board member of both the Kearney Energy Transition Institute, Amsterdam, and Gulf Bank of Kuwait.

Those countries, and most environmental activists, are betting that renewable energy could provide most if not all of the clean-energy supply, despite technical and economic obstacles that prevent their share in electrical grids from exceeding, on average, about 30 percent. A number of extreme energy-transition scenarios predict a sharp decline in the contribution of fossil energy to total demand, from the current 80 percent to about 20 percent by 2050 (e.g. IEA’s NZE2050). However, such scenarios are idealistic, costly and difficult to realize.

Among a wide range of other scenarios, OPEC’s latest annual World Oil Outlook report projects oil and gas demand to grow, albeit at a slower pace, until at least 2045, with the share of fossil sources falling to about 70 percent.

Regardless of the degree of optimism or pessimism of these scenarios, the goal and trajectory of all energy-transition pathways are unequivocal: a rapid transition to a clean-energy mix, with a wide range of component technologies. The growing enthusiasm for protecting the environment is sometimes shrouded in an increasingly negative outlook toward fossil sources, irrespective of how clean some can be.

This will no doubt drive an accelerating shift in policies, unless countries with large reserves of fossil sources, combined with low production costs, such as the Gulf states, start immediately making strategic investments to develop CO2 capture, use and storage technologies (CCUS, or CCS), including direct capture of CO2 from air (DAC). The investments are huge but worth it, for they will help to maintain a robust role for fossil-energy sources. Although many CCS projects are being implemented by oil- and gas-producing countries, most of them are still of small capacity and their number is growing slowly due to their high cost.

In line with the GCA call to member states to make more ambitious and concrete pledges to reduce carbon emissions, the Gulf states should embrace an ambitious initiative: pledging to equip all fossil-based power plants with (CCS) systems by 2035. Such an initiative would be welcomed worldwide. Furthermore, it will reduce Gulf countries’ CO2 emissions by approximately 25 percent, or about 1 percent of total global emissions — a significant decrease given the size of their economies is about 1.8 percent of the global economy.

Individual countries have their own views on how to go green in a post-carbon future. CREDIT: Shutterstock

Most importantly, implementing this initiative will significantly reduce the cost of CCS technologies, increase their reliability and global acceptance and ensure a continued robust role for oil and gas well into the second half of this century, while providing clean energy sources (electricity and fuel) to the world’s poor. Recently, the Gulf countries have taken encouraging steps in this direction. The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) have adopted clear and well-considered energy-transition strategies.

As part of its Vision 2030, the KSA implemented major environmental initiatives and emission-reduction programs such as the “Green Saudi Arabia” and announced its commitment to becoming carbon neutral by 2060 and producing 50 percent of its electricity from renewable-energy sources by 2030.

On a similar path, the UAE nearly 15 years ago launched pioneering initiatives and implemented the construction of Masdar Clean Energy City, four nuclear power plants and several large solar power plants with total capacities of more than 2 GW. But more investments and innovations are needed to make CCS and clean fossil fuel an important component of the future global clean-energy mix.

The GCC countries and other low-cost oil producers have the most to gain if they do and the most to lose if they don’t.