Energy revolution: are we there yet?

When will the energy revolution occur?

The question may seem strange. After all, every day the evidence mounts: the energy revolution is well underway, brought on by recent technological advances and a tremendous increase in the use of renewable energies. We are tempted to say that the energy revolution is here.

Even so, many remain unconvinced, and wonder whether advances on the horizon will materialize soon, or whether they are still some distance away. When will the necessary changes be made to buildings, transportation systems, and cities – changes without which the energy revolution will never be complete?

In addition to skepticism regarding the timing of the revolution, we note a certain anxiety.

The energy revolution is generally recognized as the fulfillment of the promise of a decarbonized world, in which the interests of economic development and environmental preservation will finally be reconciled. Some fear, however, that the impact on jobs that will result from the decline of certain sectors and the emergence of new ones will be too great, as the revolution in industry progresses in a frenzy of creative destruction.

Still, technological solutions exist, and they are ushering in an energy revolution as we speak, with strong growth and employment vectors.

These technologies are still relatively unknown to the public at large, and deserve to be more widely appreciated.

At ENGIE, we believe in the potential of these innovations. Moreover, we consider they will soon become essential. For this reason, we have made the decision to invest €1.5 billion in innovation over the next three years. We are both investing in and collaborating with startups that are on the cutting-edge of these activities of the future, to speed the development and adoption of their technologies. And we are making these investments at a time when these emerging technologies are not necessarily mature and will take a few more years to become profitable.

Based on our commitment to innovation, we are also concluding a partnership with the Solar Impulse Foundation, signed at the Viva Technology conference, a major event in Paris that is devoted entirely to the exhibition and celebration of the technological solutions of the future.

In November 2016, the Foundation, created by Dr. Bertrand Piccard, launched the World Alliance for Efficient Solutions, whose mission is to inform consumers about solutions that are already available and can set the world on a path to sustainable growth.

This partnership and our participation in Viva Technology are reflections of our belief that innovation must be developed to further the energy revolution, and that it will accelerate that revolution over the next few years.

I would like to discuss a few examples of these innovations here today.

Though still emerging, their development will ultimately lead to the transformation of some of the most immediate factors of our daily lives – buildings and transportation – making them more sustainable.

Considered together, these innovations would seem to indicate that the completion of the energy revolution is at hand.

Heliatek and Vertuoz, or how to reduce the carbon footprint of buildings

As far as the energy revolution is concerned, it is as important to reduce carbon in buildings and optimize consumption, as it is to reduce carbon in electricity production.

Simple, practical solutions are being developed in this very field that could be the drivers of strong growth in the energy efficiency market.

For example, lower carbon energy consumption by buildings can be achieved by installing solar systems that feature both photovoltaic panels on the roof and organic photovoltaic (OPV) solar film on the windows.

Heliatek is a German startup that makes such film. Extremely light and flexible, the film can be applied to building facades, where it generates solar energy. The advantage of this solution? Building facades have far more surface area than rooftops, and thus can greatly increase the production and consumption of solar energy.

The growth of this technology is expected to be driven by gains in conversion efficiency of organic solar cells and development of their mass production.

The use of digital technologies is another lever for reducing the carbon footprint and energy consumption.

Consider, for example, Vertuoz, a digital platform for connected buildings. Connected objects, such as CO2 sensors, temperature sensors, occupancy sensors, switches and valves, are installed in buildings where they generate a trove of data about the building’s environment and communicating the data using an artificial intelligence algorithm. The system autonomously controls the building’s equipment, guaranteeing optimum energy consumption that corresponds to actual needs. This solution is all the easier to adopt, since connected devices are easy to install:

The Vertuoz solution will be deployed in 140 schools in Paris for which ENGIE Cofely signed an energy performance contract in March of 2016. Under the contract, energy costs are expected to be reduced by 20% to 25%. This contract is part of the City of Paris’s efforts to reduce the energy consumption and CO2 emissions of city-owned buildings by 30%.

15,000 connected devices will be installed in these schools, in particular temperature and occupancy sensors in each classroom and covered courtyard area. The continuous, real-time transmission of data from the connected devices to the heating system will make it possible to heat only areas that are actually occupied, thereby decreasing overall energy consumption without sacrificing pupil comfort.

Symbio and EV Box, or how to facilitate the mass adoption of green mobility

The number of electric vehicles on the road is still modest compared to other vehicles, but it is increasing significantly with each passing year.

The main obstacles to the development of this sector, apart from the obvious one of price, which is still too high, are driving range and the incomplete coverage of public charging station networks. Electric vehicle driving range is between 100 and 300 kilometers, compared to 500 for gasoline- or diesel-powered vehicles. By late 2016, there were only 16,000 electric vehicle-charging stations available to the public in France – although the energy transition law set a goal of 7 million by 2030.

Here, too, a number of innovations could shift the current landscape.

Through technological innovation, the range of some electric vehicles is now comparable to that of gasoline- or diesel-powered vehicles. Symbio designs and produces systems that equip electric vehicles with hydrogen fuel cells to extend their range of autonomy. The driving range of these hybrid hydrogen FC / electric vehicles can be as great as 500 kilometers.

In addition, the public charging station network is on the verge of taking off thanks to a product innovation. EV-Box is marketing recharging ports to individuals, businesses, parking facility managers, municipalities, and regional governments. By making recharging ports available to all, EV-Box is helping to increase the density of the charging station network, thereby facilitating the adoption of electric vehicles.

Boosting the development of green mobility is all the more essential as the transportation sector consumes 20% of the world’s energy, is responsible for 23% of the world’s CO2 emissions, and is still 95% dependent on petroleum-based fuels.

The energy revolution is taking place before our very eyes. In addition, as this series of concrete innovations shows, it is moving at a much faster pace than people realize. The energy revolution is here and now.

ENGIE owns minority shares in Heliatek and Symbio. ENGIE announced the acquisition of EV Box in March 2017. Vertuoz is a subsidiary of ENGIE.