L1 Flashcards
How much has policy and technology shaved off warming since 2015
1oc
What is the stated policies scenario?
reflect current policy settings based on a sector and country assessment of policies and what has been announced around the world
i.e. no significant policy changes
What is the announced pledges scenario?
assumes all commitments around the world and long term net zero targets will be met in full and on time
what is the net zero emissions by 2050 scneario?
a scenario that sets out a pathways for the global energy sector to achiev net 0 emissions by 2050 - does not rely on emissions reduction from outside the energy sector to achieve its goals - universal access toe lectricity and clean cooking achieved by 2030
What accounts for 90% of the upward pressure on electricity costs?
high gas and coal prices
new form of risks - coupled with geopolitical events, natural gas low crisis have reached new lows and prices have reached new highs
What does clean tech offer in the macro environment?
creation of jobs and more energy independence - less reliant on Russian oil and gas
more than just environment - the idea of energy justice
Japan - green transformation programme and US- IRA = global acceptance and commitment to make a change and progress technology
potential substitution and transformation technology
What does a wind turbine create and how is the connected to the grid?
electricity through blades turning - connected to a generator
Wind risk considerations?
intermittency but battery storage can provide load balancing and behind the meter demand charge management
government action is highly instrumental - permitting and laws that restrict wind turbine construction - Germany = heavily regulated market
Who is the largest offshore wind market for cumulative capacity>
China
Can you talk about the costs of solar over the past decade?
85% cost decline
one of the most competitive energy sources in the market
What are some of the opportuntiies with solar?
Potential to go offshore - eg. the Maldives have floating SPVs
What are some of the key risks associated with solar
Like wind, it is geo-variable - it is intermittant but not unreliable
Solar intensity is not equal among al countries
Not confident that the floating SPVs or wind turbines will work - difficult to service and lack of practical experience of these floating technologies
How does hydrogen work?
Clean fuel that whe consumed in a fuel cell produces only water
can be used in fuel cells which convert the chemical energy of hydrogen and an oxidising agent into electricity through redox reactions
What are some of the opportunities associated with Hydrogen?
EU is leading with ambiious goals for 2030, as well as China, Japan and Australia
versatile - can be used in transport, industry, buildings and energy storage
big energy companies involved with hydrogen
What are some of the risks associated with Hydrogen?
most of the hydrogen is grey - least sustainable
there are several hurdles to generating green hydrogen
How does an EV work?
have a battery instead of traditional gasoline tank and electric motor instead of an internal combustion engine
or
can have a hydrbid vehicle with tanks, batteries, motor and combustion engines
What are some of the opportunities associated with EVs?
Increasingly accessible and widespread - eg. Tesla - continues to rise as policy pressures increase.
reduced cost of batteries from ~45% of total costs to around 35% of total cost due to subsidies and technological progression
What are some of the risks associated with EV vehicles?
Battery costs are signficiant - large % of EV costs but subsidies are making activities more attractive and driving down economics
the price to earnings ratio in the market is v different - Tesla P/E is 55 compared to Ford P/E is 4.5
Why are batteries critical for the reliability of RE?
allow energy to be stored and released on demand on various scales eg. households or vehicles
mitigate the intermittent nature of alternative energy generating processes
What are some of the risks associated with batteries?
they are made oflithium - challenge posed by the non-renewable nature of minerals
issue of scaling solutions with lithium
What are the four main categories of utilities? What are these categories based on?
Based on where companies derive their earnings
Regulated
integrated
indpedendent power producers
Gas/power infrastructure
What is a regulated utility?
regulated respective state commissions - aspects set via local commissions eg. cap structure, revenues increases
mainly vertically integrated - generation, transmission and distribution
What is a integrated utility?
generate a certain amount of earnings from their non-regulated business - power generation business - eg. coal and nuclear and nat gas
generation business make money by selling power directly othte market
FCF generated by the non-regulated business to fund the regulated utility growth without the need for external equity
What is a indepdent power producer?
a pure-play power company
ie. only focus on one line of business
What is agas/power infastructure?
derive a large portion of their earnings from infra or utility like business including unregulated infra investments eg. midsteam pipelines, renewable powers and yield cos.
What is green utilities?
take an environmentally friendly approach to supplying electricity, gas , water and sewage
eg. supplying renewable energy for electricity or managing water disposal and employing low carbon emissions
How are large utilities transitioning?
investing in startup and deploying capital for predictive monitoring and analytics
European utilities are more prepared for the energy transition due to government policies
What are the three issues around global water crisis?
sustainability - using resources wisely and adapting to change
accessibility - ensuring equal access to water
portability -safe and reliable water
and overaching climate change, growing pop, urbanisation, increased agricultural demand etc
What are the risks associated with green investment into water?
water solutions are hard to evaluate - goes beyond metric evaluation
water quality measurement and failures in transparency make it hard to create standards and guidelines for evaluating water security
What countries are most at risk for water security crisis ?
gulf nations like Bahrain, Qatar , Kuwait and Lebanon
use 80% of the available surface water supply in an average year
What is sustainable agriculture?
farming in sustainable ways to meet present global food and texilte need without comprising the ability of current and future generations to meet their needs
deals with forestry to digital agriculture
What are the opp in agriculture?
market value of sustainable ag products are expected to rise sigfnciantly
What are the challenges associated with sustainable agriculture?
reducing emissions, incentivising smallholders, decreasing high transaction costs and increasing capacity mitigated by agricultural risk
What is waste management?
processes and actions required to manage waste from its inception to its final disposal
eg. cirulcat economy of waste generated by households, companies and countries
Opp in sustainable waste management?
saving money and rescources
reducing ghg
streamlining information reporting and sharing
how do high and mid income countries different from low income countries in terms of waste management?
high to mid - developed landfilling and incineration/waste to energy capacities
low- informal methods of waste collection and have poorly developed WTE or recycling
Recycling risks?
despite increasing government mandates for recycling it is subject to variation
Recycling material depends on its ability to reacquire the properties it had in its original state
Paper recylcing?
fairly developed in most countries
paper is recycled at 58% around the world
Metals recylcing?
increasing market
China import restrictions on waste from scrap metals - to increase use of recycled steel
steel and iron recycling growing fastest as can be used for construction, automotive applications and consumer durable goods
Plastic recycling?
fastest growing segement
difficulty with hydrocarbon requirements of different plastics
has the highest potential but major issues with scaling application and lack of packaging standardisation - inefficient sorting process and volitle consumer demand
governments are a large driver in recycling eg. Eu regulation and target for 50% of recycling by 2050 - currently at 40%
Battery recyling =?
issues with stockpiling - electric batteries are a significant fire hazard
lack of trained mechanics who can dissassemble an electric battery
yet to be automated using machines - reuse or recyle however remain the two most viable options for li-on battery users
Textiles recyclin?
a 5 b dollar industry in 2020
eg. patagonia - consumer demand for reused textiles
What are some of the demand drivers linked to circular economy?
CSR
government reulgation
consumer preference
corporate recycling tagets
