Energizing Societies: The critical task to drive decarbonization and foster sustainable growth

My Keynote Speech at the Middle East & Africa Energy Week, October 19th 2020

Looking back just five years, we can all see how much the world has changed how the climate has changed. We must now reconcile how we will balance our need for energy while protecting our environment for the future generations.

Today energy systems around the world are in a state of transition. The balance between fossil-based generation and renewable energy sources is changing and that is only going to accelerate as we approach 2030. But while we debate how we will achieve this transition let us remember the 850 million people that are still living without access to electricity and that security of supply is critical for the well-being of our societies. This was very evident when Covid19 struck us with lock downs.

The story is a familiar one, half the population has access to electricity, however, the electrical supply to households, businesses, hospitals, and communities is still both costly and unreliable with consumers suffering from regular blackouts.

The Middle East and North Africa are not immune from these same challenges. There are still areas that suffer from significant shortcomings in the provision of access to electricity not only in rural areas but in large capitals and major cities.

Africa is home to 17% of the world’s population but accounts for just 4% of global investment in electric energy.

We need to act now to eradicate such energy inequality!

And it makes so much sense because once a reliable energy supply is in place, infrastructure can be built living conditions improve industries can develop. And this exactly is our role

Industrialization was triggered initially by coal followed by oil but now and in the future, it will be renewable energy generating the electricity that will drive social and economic development.

So here is the dilemma. How can we meet the projected rising demand for energy worldwide while protecting our environment and how do we make the economics work?

At Siemens Energy we are convinced that a climate-neutral energy supply is both technologically feasible and economically viable.

And this is where innovation enters the equation, we intend to provide solutions that will make climate-neutral energy supply a reality. A big claim yes so how are we going to do this?

Simply by Partnerships between Governments and business. The two must work hand in hand to drive the energy transition on multiple fronts.

So here are the three elements that we are working on with countries that are looking for expanding their energy infrastructure and reducing their carbon footprint.

1.   Rapid adoption of renewable energy sources while managing the grid stability with storage solutions and ancillary services.

2.   Develop individual country road maps to modernize existing assets with efficiency upgrades. Building new Central and Decentral capacities with Highly efficient gas fired power using turbines that can be adapted to fire green hydrogen in the future.  

3.   Adjust Government policies, where needed, to encourage investment and create the right regulatory framework to accelerate development and provide long term investment security

As with any major infrastructure project the electrification will take time but by working in partnership Governments  investors  and industrial companies can deliver new solutions that will accelerate the creation of a NEW energy infrastructure  and harnessing the economic benefits that will flow from it.

Siemens Energy has become an experienced partner for large-scale projects. We work to develop ‘Individualized Energy Roadmaps’ customizing the journey of our customers towards the decarbonized energy system of tomorrow.  

Building the financial case for these “Energy Roadmaps” is a critical part of our customized solutions, however, Digitalization, development of new skills for the local workforce and creation of new jobs is becoming the centre of gravity of what the new Energy system is all about.

Let me give you an example, the” Iraq Road Map” appears to be an ideal case to share with you today, it is about a comprehensive solution for rebuilding and modernizing Iraq’s entire power sector. Following a twelve-month study, we developed in close cooperation with the Iraqi Govt an Energy Roadmap comprising an end to end solutions from capturing flared gas, reconstructing damaged assets all the way to transmission and distribution.

The implementation of this Roadmap will strengthen Iraq’s entire energy sector improve fuel economies, reduce transmission losses, improve the carbon footprint and create thousands of jobs. This will have a huge positive ripple effect on Iraq’s economy.

In Egypt, a country where the population has crossed the 100 Mio mark, Siemens Energy has completed the Egypt megaproject in record time. Power generation capacity increased by 14.4 GW turning the country from electricity blackouts into an energy hub. The fuel savings from the boost in efficiency and the significant job creation is clearly felt in the developing Egyptian economy.

Nigeria has a generation capacity of 13,000 MW but only a portion of this is reaching the consumers. So, Siemens Energy and the Nigerian government are working together right now on a critical project aiming to removing the roadblocks in the transmission and distribution system. The eventual goal will be to develop a system delivering 25,000 MW of electricity across the country.

There is no doubt that eradicating energy inequality is a tough goal and if we are to succeed it will require planning, collaboration, and innovation because only then will we be able to generate the long-term economic growth AND decarbonize the energy system in the same time

So, let us address this challenge together in the true spirit of partnership, let us be technically innovative and financially flexible breaking through any barriers of bureaucracy with our eyes firmly set on the worthy goal  providing a reliable supply electricity to all citizens in the Middle East and Africa.