Energy Efficiency is Critical for a Sustainable Future
- Energy efficiency is often overlooked in favor of ramping up renewable energy capacity.
- Energy waste is a major problem, with around three-quarters of global energy wasted due to inefficient systems and behaviors.
- Improving energy efficiency and reducing energy waste can cut carbon emissions, save money, and alleviate the burden on green energy production.
As governments focus on developing their renewable energy capacity, many are overlooking a vital element to boosting clean energy security –energy waste management. Countries worldwide must fix their existing systems to ensure that energy is not lost in transit and use and that electricity grids are prepared for the influx of new clean energy projects expected over the coming decades.
The founder and chairman of the environmental non-profit organization Solar Impulse Foundation, Bertrand Piccard, is calling for greater focus on reducing energy waste instead of merely ramping up renewable energy capacity. Piccard highlighted that around three-quarters of global energy is wasted “due to inappropriate behavior and inefficient systems or infrastructures.” He explained, “So if we try to replace fossil [fuel] energy with renewables without being efficient, without reducing the consumption, it’s hopeless.”
Piccard emphasized the potential oversupply of solar panels from China to Europe, as governments ramp up their solar energy capacity targets. China has been hugely successful in producing vast amounts of panels at a low cost. This has led to far less solar panel manufacturing in more expensive regions, such as Europe, and a greater reliance on China to provide panels worldwide. This has made it difficult for domestic manufacturers to compete, which has led governments to consider the introduction of tariffs on China’s renewable energy exports, which we could soon see in the U.S.
China is expected to sell huge quantities of solar panels to countries around the world, allowing them to develop low-cost solar energy projects. This reflects the significant advancement made in solar power technology. However, it could also lead to an overreliance on increasing capacity rather than improving efficiency across all energy sources and reducing energy use.
Professor Nick Eyre, a professor of Energy and Climate Policy at the University of Oxford, explained, “Historically, energy efficiency has delivered the largest share of greenhouse gas mitigation, and reinventing it for the era of renewables will enable us to continue this trend and achieve net zero by 2050.”
Meanwhile, Mark Maslin, a professor of Earth System Science at the University College London, stated, “Energy efficiency is crucial if we are to have a fighting chance of honoring the Paris Agreement of 2015, reaching net zero and keeping climate warming under 1.5°C. We must remember the IEA has stated that energy efficiency will be able to provide one-third of the carbon saving required towards net zero. We can achieve this and ramp up energy efficiency by electrifying as much of our energy system as possible, enabling flexibility in energy supply, demand and storage, and re-using waste heat.”
A 2023 whitepaper by Danfoss Climate Solutions entitled Energy Efficiency 2.0: Engineering the Future Energy System suggested that the EU and U.K. may be able to achieve annual societal cost savings of $11.2 billion by 2030 and $16.6 billion by 2050 by maximizing the potential of demand-side flexibility. This would help the region cut CO2 emissions by an estimated 40 million tonnes and reduce the electricity generation from natural gas by 106 TWh, or about one-fifth of the EU’s natural gas consumption for electricity generation in 2022. The publication also stated that transitioning away from fossil fuels to a fully electrified system could cut up to 40 percent of final energy consumption.
Danfoss also highlights the need to ensure energy efficiency in emerging technologies. The hydrogen market is growing at an accelerated pace, as governments and companies worldwide look for cleaner fuel alternatives to power hard-to-abate industries such as manufacturing and aviation. Converting renewable energy into hydrogen via electrolysis requires large amounts of energy, which many believe could better be used directly as electricity. Therefore, we must develop high-efficiency electrolysis technologies to enhance the conversion process, as well as focus on reducing the demand for hydrogen.
The whitepaper suggests that is possible and necessary to strategically integrate sectors that deploy excess heat to lower energy demand and boost efficiency. The report states that by the end of the decade, up to 53 percent of the global energy input will be wasted as excess heat, but that this heat can be captured and reused to power machinery, as well as heat buildings and water through deeper sectoral integration.
At present, we live under the illusion of false abundance. The energy systems in place globally are highly inefficient and the world’s energy demand is continuing to rise. Therefore, governments are scrambling to rapidly replace the existing energy supply with renewable alternatives to support decarbonization efforts. Meanwhile, little is being done to reduce inefficiencies and curb unnecessary energy use. Improving energy efficiency and reducing excess use will help decrease carbon emissions as well as alleviate the burden on governments seeking to ramp up green energy production at an unsustainable pace.
Are Heat Pumps the Future of Residential and Commercial Heating?
- Heat pumps offer a net-zero heating and cooling solution, powered by electricity from renewable sources.
- Governments worldwide are phasing out gas boilers and introducing incentives to promote the adoption of heat pumps.
- Companies are investing in heat pump manufacturing to meet the growing demand for this clean energy technology.
Heat pumps are hotting up as governments worldwide search for alternatives to gas boilers. They can both warm and cool buildings and are powered by electricity, rather than fossil fuels, helping to decarbonise homes and offices. Governments worldwide are beginning to invest heavily in the technology as they strive to trade old boilers out for innovative heat pump technology to support a green transition.
We have long relied on fossil fuels to heat residential and office buildings. Most boilers continue to be powered by natural gas, which contributes to the release of CO2 into the atmosphere. However, several companies around the globe are now offering alternative heat pump technology that can be powered using electricity from renewable sources to provide net-zero heating and cooling.
Heat pumps work similarly to refrigerators and air conditioning systems, extracting heat from a source, such as the surrounding air, geothermal energy stored in the ground, or nearby sources of water or waste heat from a factory. It intensifies the heat and transfers it to wherever it is needed. As heat pumps transfer rather than produce heat, they are far more efficient than other heating technologies, resulting in lower energy bills. They consist of a compressor, which moves a refrigerant through a refrigeration cycle, and a heat exchanger, which extracts heat from the source. Heat is delivered using either forced air or hydronic systems, such as radiators or under?floor heating. They can also be used with a tank to provide hot water. To cool, the pump reroutes indoor heat outdoors.
One of the main challenges to the wide-scale rollout of heat pumps is the threat of overburdening the grid. In many countries, the current electrical infrastructure is outdated and insufficient in capacity to link new renewable energy projects to homes and businesses. Many electric grids were developed around energy hubs, which were largely fuelled by coal, oil, and gas. As companies develop renewable energy projects in atypical energy regions, new transmission infrastructure will be required to connect this energy to the grid. However, in many cases, this means a complete overhaul, costing a great deal of time and money. Therefore, in most places, it is not yet possible to introduce a countrywide shift from gas boilers to heat pumps. Several governments have, therefore, announced a gradual phasing out of boilers in favour of cleaner alternatives over the coming decades.
Companies have been able to improve heat pump technology significantly in recent years thanks to greater support from governments worldwide and financial incentives to decarbonise. In the U.S., consumers are being offered attractive tax credits and rebates to buy and install heat pump systems. This has encouraged unlikely players to invest heavily in heat pump technology. Carrier Global, whose founder invented air conditioning, is betting big on heat pumps. Last April, Carrier acquired the German heat pump company Viessmann Climate Solutions for around $13 billion. David Gitlin, the CEO of Carrier Global, stated “We all know that sustainability is a megatrend… HVAC has to have a critical seat at the table.”
Carrier’s chief technology and sustainability officer, Hakan Yilmaz, explained, “HVAC is at an inflexion point right now, with a tremendous shift toward electrification, going from fossil fuel-burning boilers and furnaces to heat pumps.” Yilmaz added, “In addition, the cooling side of HVAC is expected to triple by 2050 because 2.8 billion people live in hot climate zones and only about 8 percent have access to HVAC today.”
The International Energy Agency (IEA) sees heat pump technology as key to progressing a global green transition. An IEA report on the potential for heat pump usage in China highlights the country’s ongoing reliance on coal for its heating needs. In Chinese industries, heat consumption increased by 13 percent between 2010 and 2022. In addition, heat provision accounts for 40 precent of China’s CO2 emissions and coal use. The use of heat pumps is becoming more commonplace in China, with the technology accounting for eight precent of heating equipment sales for buildings in 2022. China is the biggest manufacturer of decentralised heat pumps for buildings and can increase production to support the commercial rollout of the systems to significantly reduce carbon emissions in the coming years.
In the U.K., applications for heat pump grants have risen sharply in the last year, with new applications for grants increasing by 75 percent in February, compared to the same month last year. The government introduced its Boiler Upgrade Scheme two years ago, aimed at decarbonising heating. Lord Callanan, Minister for Energy Efficiency and Green Finance, stated, “Demand for heat pumps is soaring, as we make it easier than ever to make the switch to electric heating without big upfront costs… Our boosted £7,500 grants are helping people create a warm home and lower their emissions. And with applications up 75%, it’s clear our approach is hugely popular with many families.” By the end of February, there had been 35,741 applications and a total pay-out of around £127 million in vouchers to customers.
Thanks to significant improvements in heat pump technology in recent years, interest in the technology is increasing. Governments are spending more on the technology and more companies are investing in manufacturing projects, supported by financial incentives, such as tax breaks and grants. Several countries are planning to make the shift from gas boilers to renewable-electricity heat pumps in the coming decades to help decarbonise heating. However, to achieve this, governments must invest heavily in making improvements to their grid systems to ensure the necessary infrastructure is in place to deliver clean energy to houses and businesses countrywide.
The Renewable Energy Boom Has a Waste Problem
- Renewable energy waste is a growing problem due to the increasing use of solar panels and wind turbines.
- Improper disposal of renewable energy equipment can lead to environmental and health problems.
- Governments need to establish clear standards and regulations for energy waste disposal to ensure that it is done safely and responsibly.
As the global renewable energy capacity increases, so does the amount of waste from end-of-life equipment from solar, wind and other renewable energy activities. If we don’t address this problem soon it could become a whole new threat to the environment and human health. While a transition away from fossil fuels to alternative green energy sources is helping the world to reduce its greenhouse gas emissions and combat climate change, it is important to consider the implications that new energy activities may have on the environment.
Solar panels and wind turbines have a limited lifespan and need to be disposed of appropriately once they reach this point. While some components can be recycled and reused, much of the old equipment ends up in landfills due to the lack of infrastructure in place to manage the materials suitably. Renewable energy equipment, such as solar panels, contains components that can be harmful to humans, such as lead and cadmium, as well as other materials, like glass, aluminum, and silicon, which can be harmful to the environment if disposed of improperly.
One way that out-of-use equipment can be managed is through the creation of standards, such as the Waste Electrical and Electronic Equipment (WEEE) directive from the European Union, which provides guidelines for the gathering, handling, recycling, and recovery of solar panels. The U.S. Resource Conservation and Recovery Act (RCRA) also addresses the correct disposal of solar panels. However, many countries have yet to introduce clear standards for renewable energy equipment disposal, which has led to dangerous methods of disposal.
Several countries around the globe are rapidly increasing their solar and wind energy capacity, which relies on the production and installation of millions of solar panels and turbines. Tens of millions of solar panels are being installed each year in the U.S. alone, and globally the figure is over a hundred million. Despite the accelerated pace of the rollout, there are few recycling facilities prepared to manage old equipment.
Some countries are managing equipment disposal better than others. For example, France claims that 90 percent recycling efficiency is achieved in some of its flagship disposal facilities. However, others do not have mechanisms in place to even consider recycling old equipment. While it is important to put proper waste disposal mechanisms in place for the safety of people and the environment, it can also be a lucrative business. According to a study by the International Renewable Energy Agency (IRENA) and the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), the cumulative value of materials that can be recycled from solar photovoltaic (PV) waste is estimated at $4 billion by 2040 and $8.8. billion by 2050.
Supplies of many of the materials used to produce green energy equipment are finite, meaning it is important to recycle materials to reproduce equipment to continue to produce renewable energy. Jinlei Feng, a program officer at IRENA, explained, “By 2050, there will be more than 210 million tonnes of cumulative solar PV waste globally and more than three-quarters of that waste will be generated after 2040 and 40% in the last five years between 2045-2050. Feng added, “Annual solar PV waste generation will touch 10 million tonnes by 2040 and increase to 20 million tonnes by 2050.”
India is currently trying to navigate solar waste problem. Pavagada in the south of India is home to the world’s third-largest solar power plant, which holds 25 million panels across a 50 km2 park, with a capacity of 2,050MW. There are 11 other giant solar parks across the country, with plans to develop a further 39 across 12 states by 2026. However, with great solar ambitions comes significant waste. India is aiming for a solar output capacity of 280GW by 2030, of which 70.1GW is already installed. One study predicts that this will produce an accumulation of over 600,000 tonnes of solar waste by the end of the decade, which could increase 32-fold to over 19 million tonnes by 2050.
Although there are protocols in place to manage the disposal of old equipment, which state that solar waste from the plants must be transferred to e-waste contractors, authorized by the Central Pollution Control Board (CPCB), within a specified timeframe – typically 90 or 180 days – few abide by these rules. Most solar farms are in remote areas and must pay to transport old equipment to authorised contractors. Solar glass has no real value, meaning there is little incentive for waste contractors to collect and manage the equipment. This has led to the development of a network of informal operators – who dismantle, aggregate, transport and recycle panels. Instead of ensuring proper disposal methods are followed, many operators sell their waste equipment to informal buyers, meaning the materials cannot be recycled and repurposed, and many of the materials end up harming both people and the environment.
To ensure that renewable energy equipment is disposed of appropriately, and recycled where possible, governments must establish clear standards and regulations for energy waste disposal. Further, they must ensure the mechanisms are in place and funding is available to guarantee proper disposal takes place. Without the necessary standards, green energy equipment could contribute to environmental and health problems in the coming decades.
By Felicity Bradstock for Oilprice.com
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