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Optimism versus practicality in energy transition

Industry players in the sector acknowledge joint efforts deficiency in path towards adopting clean energy

DNV released a report disclosing over 1000 energy professionals were optimistic about growth in 2022’s  (energy) transition. “The Power of Optimism: Managing scale and complexity as the energy transition accelerates” paper wrote senior industry players from across power, renewables, and oil and gas believed the huge commercial opportunities presented by the transition outweigh the risks to their businesses.

Spirits are willing, however…
Optimism is subjective and does not translate to feasible actions. In other words, it is just a thought with the potential to catalyse actions yet constantly at loggerheads with practicality. The report skillfully added a disclaimer that it was not implying there are no barriers in the journey: stating skills shortages represent the greatest barrier to growth for the energy industry, followed by a lack of policy support.

The report acknowledged permitting and licensing issues are the greatest barriers to growth, and power and renewables sectors both point to supply chain pressures as a significant barrier. Almost two-thirds of the energy industry believed that supply chain issues are slowing down the energy transition. Ditlev Engel, CEO, Energy Systems at DNV, commented: We see an optimistic energy industry: confident about growth, boosting investment, and making critical strategic decisions in the energy transition. However, we also see significant concerns about barriers to progress – from a skills shortage to policies, financing, supply chains, and permitting – as the enormous task of transforming the energy system gathers pace.”

He added, “The world is not on track to meet the targets of the Paris Agreement. We can and must do much more to transition faster to a deeply decarbonised energy system. We see complexities in timing and matching the scaling down of fossil fuels with the scaling up of clean energy – in terms of raw total energy, and also in affordability and reliability. The solution is to scale up clean energy very much faster.”

Identifying permitting and licensing issues as the greatest barriers to growth is outrightly saying not all stakeholders are on the same page about application, though many are supportive. Positivity may be highly encouraged, nevertheless materialising it has its set of challenges.

Marine Online Media Team
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