DNV Report Studies Role Of Tech Companies In RE Generation

Highlights :

  • The report found a strong majority (64%) of renewables as per the respondents are expected to see that the year ahead will have more large, capital-intensive projects approved than in the past year.
DNV Report Studies Role Of Tech Companies In RE Generation DNV Report Studies Role Of Tech Companies In RE Generation

Norway-based DNV has unveiled valuable insights in its report regarding the confidence, sentiment, and priorities prevailing among tech companies in contributing toward renewable energy generation. The report comes at an interesting time, when the rise of AI and the massive data centres it demands have raised the spectre of rising power demand in hitherto stable markets like the US and more.

In the report titled “Transforming Through Uncertainty,” the report sheds light on the ongoing initiatives within the solar industry. Moreover, the study delves into the exponential growth of renewable energy, citing Amazon’s ambitious plan to match 100% of its global operations’ electricity consumption with renewable sources by 2025, surpassing the output of the aforementioned solar plant by over 33 times.

It found a strong majority (64%) of renewables respondents believe that the year ahead will see more large, capital-intensive projects approved than in the past year. However, different energy industry sectors are investing in different renewables (e.g. solar, wind, hydro, biofuels) and associated areas (e.g. CCS, hydrogen, storage). It mentioned that fewer than one-third are increasing investment/focus particularly the big four of solar, wind, hydrogen, and storage.

According to the report, Kalyon Karapinar Solar Power Plant in Turkey is one of the world’s largest solar farms generating 2,300 GWh annually—nearly equivalent to the size of Manhattan. Exploring the intersection of technology and renewable energy, the report underscores the pivotal role of artificial intelligence in propelling major tech firms like Google and Microsoft towards exploring unconventional renewable sources such as nuclear and geothermal power, in addition to wind and solar. It gave the example of Amazon which had added over 500 renewable electricity generation projects across 27 countries, slated to produce a staggering 77,000 gigawatt-hours (GWh) annually once operational.

The report also examines the strategic shifts of traditional oil and gas companies towards renewable energy, exemplified by TotalEnergies’ transition to an integrated power business model, leveraging their organizational expertise to incorporate wind, solar, and battery storage alongside conventional gas-fired power plants.

Furthermore, it addresses the evolving landscape of renewable energy, with variable renewables projected to surpass hydropower in electricity generation for the first time in 2024, followed by outpacing coal in 2025 and nuclear power by 2026, ultimately contributing 42% of global electricity by 2028.

This transition towards renewable energy presents challenges for grid operators, while also highlighting the increasing involvement of non-energy companies in shaping the energy ecosystem. The report indicates a growing inclination towards large-scale, capital-intensive renewable projects, with a diverse focus across sectors, including solar, wind, hydrogen, and storage.

Overall, the report underscores the dynamic transformation underway in the energy industry, driven by technological innovation, shifting consumer demands, and a growing commitment towards sustainability.

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