Climate change: Major energy companies lag in green shift
htps://m.dw.com/en/climate-change-major-energy-companies-lag-in-green-shift/a-54839965
A global analysis of the progress and failure of electric utilities to adapt their portfolios of power-generation assets to the energy transition
https://www.nature.com/articles/s41560-020-00686-5
The study, published in research journal Nature Energy, found that of the 3,000 utilities studied most remain predominantly invested in fossil fuels. And of those prioritizing renewable energy growth, 60% had not halted expansion of their fossil fuel portfolios.
The companies with the slowest transition tended to be larger and from outside Europe, Alova told DW. "The renewables-prioritizing cohort of utilities that I identified comprises companies that are overall larger and own a larger market share in the countries where they operate, compared to the other companies," she said. "The key issue is that the majority of these companies continue in parallel to expand their fossil fuel-based capacity, although they do so at a slower rate."
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Her research highlights a gap between what is needed to tackle the climate crisis and "the actions being taken by the utility sector," she added. These companies face the risk of carbon lock-in, given that a third of their fossil fuel capacity has been added in the last 10 years, so is here to stay for decades. "Unless it is retired early, it will render significant shares of their portfolios stranded," Alova said.
"Although there have been a few high-profile examples of individual electric utilities investing in renewables, this study shows that overall, the sector is making the transition to clean energy slowly or not at all," she said.
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"Renewables and natural gas often go hand in hand," Alova said, adding that companies often choose both in parallel. "So, it might be just in media reports we are getting this image of investing in renewables, but less coverage on continued investment in gas."
It might also be the case that gas is viewed as a transition fuel, relatively less carbon emitting and providing load-balancing services to intermittent renewables generation, Alova said.
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With many projects delayed by the pandemic, the global capacity to produce electricity from renewable sources is predicted to drop by up to 13% overall this year according to the International Energy Agency.