Major European players convene to lay out industrial energy transition

Some of Europe's key energy players, such as Siemens, Iberdrola and Vestas convened for a panel at EU Industry Days 2021 event to discuss the "twin transitions" marking the shift to green energy and the digital transformation.

This comes as the European Commission - who are hosting the event - plan to layout the "Decade of Change," signalling how the 2020s will see large-scale adoption of greener technologies.

Read more: Engie & Equinor partner to develop low-carbon hydrogen

The panel primarily discussed emerging technologies and how to make them more viable in order to meet climate goals in line with the EU's target of complete decarbonisation by 2050.

"It's not just about decarbonisation," said Paula Pinho, who moderated the panel. "It's about looking to create jobs and opportunities so that Europe can continue to compete in the global energy market."

Each panellist offered its own solutions and issues to be tackled by the climate partnership across the entire field of green energy.

The EU is currently the world leader in wind power, with a 70% market share as of 2019. Its wind sector has so far created over 300,000 jobs.

Morten Dyrholm, CEO of Vestas, said: "We still have a long way to go. If the EU wants to hit its 2030 - and subsequently, its 2050 - climate goals, then it has to deliver 1000GW of onshore and 300GW of offshore wind by 2050.

"Sustainability is also key as wind turbines are moving towards being 100% recyclable, but it is key to maintain the momentum if Europe wants to remain a key industrial player.

"Aside from this, we must also look to value sustainability in other areas but looking at trade remedies and competitiveness from a number of different angles, including formulating an industrialisation strategy."

The transition to a fully green economy could create hundreds of thousands of jobs, according to the panel.

Other issues brought up include transportation, lowering costs, and a switch to a circular economy necessary for the twin transition.

The Vestas CEO also suggested aggregating "the best of the best" from across European industry and utilising it to create a European leader.

The EU currently operates a 40% share in the automotive industry, and electrification will be required if the bloc is to meet its decarbonisation targets.

The EU is projected to operate a significant market share in electric vehicles by 2050, although some analysts suggest oil will still be present within its automotive sector.

Read more: EVs set to dominate new car market by 2050 but oil will remain king

Wind power is just one of the technologies that may become more economically viable through the decade.

There were also calls for consumers to take a more active role in the energy transition, through initiatives to encourage a switch to green energy.

"Green hydrogen is currently not competitive, so new technologies and opportunities must be made to make it significantly cheaper," Angeles Santamaria, Iberdrola's Technology Director, told the panel.

She added: "There are currently three main areas of interest for us and the energy transition: faster growth for renewable generation, such as wind and solar, storage and electrification; substitution of fossil fuels in other industrial sectors; and pushing for cheap green hydrogen.

“Investors are demanding stable and predictable policies. We must work to make the sector more investor-friendly. We must also remove arrears and level the playing field across all forms of energy.

“We have to accelerate and simplify procedures in order to make renewable projects viable."

Read more: Iberdrola and Fertiberia to invest in massive green hydrogen project

Claudia Grotz, the senior director general of European Affairs at Siemens Gamesa, argued that innovation must be present in all aspects of the supply chain.

She said that there must be assurances as manufacturers and suppliers across supply chains scale up production to be ready to meet climate goals.

"It will require investments," she said. "We look forward to engineering larger components for both onshore and offshore wind."

She added: "There will be challenges when it comes to sourcing these components and so we must look at offering strategic cooperation across the supply chain while looking into newer technologies such as digitalisation and perhaps utilising 3D printing."

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