Is the era of fossil fuels over?

Matthias Rebellius, AG Managing Board Member, Siemens & CEO of Siemens Smart Infrastructure

Matthias Rebellius, AG Managing Board Member, Siemens & CEO of Siemens Smart Infrastructure

Climate change isn’t the only reason we need to digitalize faster. The world’s reliance on gas, oil and coal must end. The fossil fuels which drove the industrial revolution are wrecking the natural environment. Intelligence and automation of all machines will cut carbon dioxide emissions, alter trade flows and reshape our world.

Earlier this month, a UN report said that time is running out. If we don’t accelerate the energy transition now, our climate goals will be out of reach by the end of the decade. Switching to clean energy sources, digitalizing infrastructure, enabling sustainable transportation and production is what we need to do.

Geopolitical tensions have increased the sense of urgency. For many countries, the war in Ukraine underscores the advantages of energy from wind, solar, hydroelectric and even from nuclear. If you can power factories, businesses, schools, hospitals, homes, trains and cars without fossil fuels, you’re not just saving the environment, you’re saving resources and gaining independence.

Electricity from sources that are free to anyone who can harness them,reduces the need to import oil and gas. That strengthens a country’s independence from volatile energy markets, from energy supply chains, and from the politicians who control access.

I’ve spoken beforeof how scientific discovery, engineering and technology have given us the tools to manage environmental challenges. Imagine, we have even found ways to decarbonize extremely complex supply chains.

In many customer projects, Siemens, the company I proudly work for, is connecting energy systems, buildings and industries to create digitally networked ecosystems. Artificial intelligence, the internet of things, digital twins, connected devices and big data make everything more efficient be it machinery, production lines, factories, offices, shopping malls or electric grids. That is the key to a zero-carbon world.

Let me share two examples of how Siemens’ know-how combining the real and digital worlds can accelerate a clean energy transition.For American Electric Power, one of the largest utility companies in the United States, we created a digital twin of their electricity network, to integrate data from three regional grid operators into one software model. At first glance, that doesn’t seem very green. But the digital twin improves decision making, which strengthens grid reliability and ultimately gives it the stability to transport more power from sources whose inputs fluctuate like wind and solar.

Switching To Clean Energy Sources, Digitalizing Infrastructure , Enabling Sustainable Transportation And Production Is What We Need To Do

Matthias Rebellius, AG Managing Board Member, Siemens & CEO of Siemens Smart Infrastructure

Another example is the world’s largest mixed solar and hydro-power plant at Sirindhorn Damin Thailand. Thanks to Siemens’ microgrid control, cloud technology and artificial intelligence it generates renewable energy day and night. Similar hybrid projects are planned bythe Electricity Generating Authority of Thailand(EGAT) at another nine hydroelectric dams to generate an additional 5,000 megawatts enough renewable electricity to power 3 million homes.

Investment, driven by a sense of urgency, can scale use of the tools that helped AEP and EGAT smart microgrids, energy storage and connected devices. Worldwide, the share of renewable energy in power generation has increased more than 25-fold in the past three decades to almost 30%.

The more smart factories, smart buildings and smart grids there are in the world, the more we can increase that percentage and reduce dependence on energy imports. The positive side effect: Our economies will be more resilient and more self-reliant regarding their energy needs.

And yes, the era of fossil fuels is over. Electricity from wind and solar will be the backbone of the energy supply in the future. Green hydrogen made with renewable power will have a role to play as an aviation fuel and as substitute for natural gas. All this will lead to completely new supply structures. A homogeneous system, connected by digitalization and electrification.

There are challenges and world leaders need to step up to drive change together. At Siemens we’ve been doing change and innovation for 175 years. As a society, we should embrace it. We need to. There isn’t much carbon dioxide in the atmosphere, just 420 parts per million. But it’s too much almost 50% more than the concentration found in the early 1800s and our planet can’t take it.

For greener power we need intelligent and smart technology in buildings, in grids and in mobility. Siemens has the software, the hardware and the know-how to serve customers who have the passion and ambition to make this happen. Let’s get on with it.