What is energy diversity
First off, energy diversity as described in this blog has nothing to do with Diversity, Equity or Inclusion policies in the HR departments of big oil or DOE (The U.S. Department of Energy), but rather, analog to bio-diversity, the richness and diversity of energy carriers, generation-and storage methods.
And even though the mechanisms behind it are different, both the decrease in biodiversity and energy diversity are man made as well as destabilising for their respective ecosystems.
Difference is, where the loss of biodiversity is more of a “side-effect” of pollution, climate-change and overexploitation of natural resources, the impoverishment of energy diversity is the direct and immediate result of man-made policies.
In the same way maintaining biodiversity is vital to maintaining a stable and resilient ecosystem, maintaining energy diversity is particularly important to;
- Maintaining independence from geopolitical forces controlling scarce materials or having supply-chain dominance for specific energy storage and generation technologies. We are now facing the situation that a significant part of the material supply and technology for LIB’s (Lithium Ion Batteries) and solar panels are under control of a single region.
- Reduce vulnerability to (raw-) material shortages or supply-chain disruptions and related price fluctuations. We have all seen the effects of reducing the stock levels throughout the supply chain in (for instance) the automotive industry. All it needs is a single factory fire or a single vessel stuck in a canal to seriously disrupt complete industry segments.
- Buying time to more gradually allow nascent technologies to develop and prove themselves economically viable alternatives. Main effects of the “time pressure” we see now, is a strong movement to bring to market, technologies that are not ready yet for commercial application. Inflated expectations of governments and investors alike push subsidies and funding into technological solutions that are not ready yet for large scale roll-out. Without a doubt flavour of the month right now is hydrogen.
Hydrogen as clean energy panacea?
Seems these days hydrogen is looked upon as the panacea for all energy related challenges. Should we, on the other hand, dismiss hydrogen because of the low round-trip efficiency turning green electricity into hydrogen back into electricity (like in fuel cell applications)?
Surely not, the whole point is that we need more alternatives, not less, including hydrogen. It is clear however that the renewable appeal of hydrogen has drowned out interest in and funding for many other (short term possibly higher yield) solutions.
Most will agree that the move away from fossil fuels in favour of renewables is a good and necessary one, at the same time it’s important to keep in mind the impact on the overall energy diversity.
The fact that the wide variety of fossil energy carriers (ranging from coal, coke, fuel oil, diesel, petrol and kerosene to natural gas, propane and LPG to name just a few) will in time all be replaced by a singe form energy (i.e. electricity) should be a cause for consideration.
Resilience and stability through diversity
Where before the different energy carriers had (to a certain extend) their own distribution chain, mode of transport and global stockpile, allowing back-up of one energy carrier by another one (say LNG from the US to replace Russian “pipeline gas” in Europe) the redundancy and stability can be seriously compromised when we fail to create diversity in the generation, storage and distribution of our energy.
In order to maintain stability through diversity, it is imperative that policy makers and investors of public and private capital keep this diversity in mind when making their investments.
Embracing Energy Diversity: Pioneering a Resilient and Sustainable Future
We stand at a pivotal moment in the ever-evolving landscape of energy technology. The call for energy diversity reverberates with a resounding urgency, echoing the visionary spirit of those who have dared to dream big. Just as pioneers like Nikola Tesla and Thomas Edison have pushed the boundaries of what’s possible, we now must embrace the power of diversity in our energy systems.
It is not a mere consideration, but an imperative. Investing in a rich tapestry of energy carriers, generation methods, and storage solutions will unlock resilience, reduce vulnerability, and pave the way for a sustainable future. Let us forge ahead, guided by the conviction that a diverse energy ecosystem holds the key to a world powered by innovation, independence, and boundless possibilities. Let us chart a course towards a future where energy diversity reigns supreme and leads the path to a better tomorrow.