Solving the energy trilemma is on us

One week ahead of ADIPEC and two weeks ahead of COP27 all eyes are focused on the energy industry and the urgent need for reliable, affordable, and sustainable energy for all. This topic is not new for us. The awareness of the energy trilemma we are facing today exists for years. Since more than a decade that I have been in the Middle East region, and two and a half years with Siemens Energy, I have encountered countless conversations with other companies, government officials, colleagues, and friends around the urgency of achieving an established energy system that supports all people, countries, and sectors. But are those conversations enough? Honestly, we need to act now. We are in a race against time to make tangible progress in climate action, but amid the current global energy crisis, balancing the topic of energy security has brought a different sense of urgency to the table. The turbulences in the energy market and the new geopolitical reality have put pressure on governments, companies, and households worldwide and are challenging our status-quo. Keeping that in mind, the timing couldn’t be more relevant for global dialogues at platforms such as ADIPEC or the upcoming COP27 in Egypt. Progress on the future of energy needs our full and utmost attention now more than ever - it’s time to reprioritize and make impact together. We’re focusing on innovation to develop more efficient and groundbreaking technologies to accelerate the pace to net zero. What is in your opinion crucial to solve the energy transition in volatile times like today?

Some might say hydrogen, nuclear, technology like AI, carbon taxes, or even curbing demand. I’m assuming that your answers will be quite different from each other. Not because one is wrong and the other one is right, it’s because we are all at different stages of the energy transition and are facing various challenges along the way. Different regions, countries, or industries have unique needs and require a pragmatic approach to net-zero transition. There is no single solution. We can’t really afford to wait for the perfect one either. We need a mix of readily available technologies and long-term innovation. Decarbonization requires a restructuring of the whole energy system. Looking at it from a holistic point of view is a crucial piece of the puzzle that can accelerate the progress we are making. ??

Take the oil and gas industry as an example. It has an important economic role across the Middle East region and plays a key part of ADIPEC. 42% of global emissions come from heat and power generation, but we must consider growing energy demand and the important role oil and gas plays in reliable energy supplies. Solving energy inequality and insecurity while addressing climate change should be part of the same conversation. Interestingly during #cop27 hosted in Egypt this year, international and national oil companies will play a more prominent role in the discussions around the energy trilemma, something that has changed since last year in Glasgow where critical opinions overruled. With the goal of jointly searching for solutions, we at Siemens Energy want to fulfill our role and help industries to find a way to decarbonize their operations quicker. This could include bridging their way to net-zero with more sustainable technologies like highly efficient and low-emissions gas turbines or ensuring clean fuel burning capabilities, or transitioning to green hydrogen. Examples like securing greater efficiency in power transmission and storage are also part of the solution.

One thing is clear, collaboration will be key to accelerating energy transition. Global forums which gather the industry thought and action leaders, like #adipec and COP27, are vital. We’re glad to be part of them and look forward to engaging with you there. Which actions do you expect coming out of our conversations?