Electricity demand is rising and so is demand for renewable energy and hydrogen. How do players such as DNV and Statkraft position themselves for the future? See the discussion here.
As part of the World Energy Policy Summit’s collaboration with ONS, Christian Rynning-Tønnesen, CEO at Statkraft, and Remi Eriksen, CEO at DNV, discussed how hydrogen and wind will be key going forward.
- Electricity demand will double to mid-century
- Renewable energy demand will increase sixfold
- Wind and hydrogen contribute in different ways and have different characteristics
- Cost and time are major hurdles
Increased renewable energy demand
Statkraft believes electricity demand will double by mid-century, and we will need six times more renewable energy by 2050. Wind and hydrogen will be important to make that happen. However, we are facing challenges such as cost and time. Rynning-Tønnesen’s and Eriksen’s companies are both in the middle of these challenges.
Going forward, both wind and hydrogen will help the transition from fossil fuels to renewable energy. But while wind is an intermittent energy source, hydrogen, is a more flexible energy source. Hydrogen can be used when needed, and stopped when not needed. However, hydrogen is at an early stage of development, making wind more accessible.
Costs and time
Even though there are several advantages with floating wind, disadvantages as cost and time must be taken into consideration. We have yet to see further technological developments, making it competitive. As a result floating wind is underdeveloped.
To speed up the development, Rynning-Tønnesen believes that the government should support small to medium-sized projects, getting larger quantities og the technology needed. He is supported by Eriksen who explains that doubling of a new technology is a way towards cost reduction, cutting costs from 15 to 25%. This will get technology to a competitive cost level. To make this happen Rynning-Tønnesen argues that the government has an important role, and will be crucial to tackle the slow energy transition. He calls for more requirements and incentives.
However, change is not coming on its own. One of the most important things to secure going forward is an income side for these projects.
See the full discussion and learn more about the future of offshore wind here:
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