Energy (Cleantech)

Globally, the energy sector is one of the largest sources of carbon dioxide emissions. This is because a large share of electricity production internationally uses fossil fuels such as coal, gas and oil to generate electricity. More than two-thirds of the world's electricity is currently generated using fossil fuels. In the EU, energy supply also accounts for the largest share of the Union's emissions, at 27%.

Unlike countries such as Sweden, energy production in the EU continues to be based on a significant proportion of fossil fuel generation, for example from gas and coal-fired power plants. Almost 40% of the electricity consumed in the EU comes from power plants burning fossil fuels. In Sweden, around 2% of electricity production is fossil.

The EU's electricity sector is expected to be a key enabler for the Union to achieve net climate neutrality by 2050. For this to happen, the sector's greenhouse gas emissions will need to be drastically reduced during this decade. In 2021, the International Energy Agency (IEA) presented a roadmap for the energy sector's path towards net zero emissions globally.

In it, the IEA calls on the world to stop investing in new fossil fuel projects immediately. According to the IEA's roadmap, by 2030, the growth of solar and wind power needs to reach more than 1 000 GW per year by 2030 (more than four times what was installed in 2020). By 2050, 90% of the world's electricity production should come from renewable generation, of which 70% from solar and wind power. The EU has set a binding target of 32% of electricity generated by renewable energy sources in the EU energy mix by 2030.

Example 7: Data analysis enables tracking of renewable electricity

Challenge: Electricity and district heating production is one of the largest sources of carbon emissions globally and many companies are committing to using 100% renewable energy to meet their sustainability targets. Meeting this ambition requires a reliable way to track renewable electricity. While progress has been made on renewable energy sources and commitments, there is a fundamental flaw in monitoring the source and amount of energy consumed. The current system has no way of matching the supply of renewable energy with the demand for that energy on an hourly basis. The energy can come from renewable sources or be produced by fossil fuels. Without transparency of supply and demand, market forces cannot act to ensure that demand for renewable energy is met.

Solution: Vattenfall uses Microsoft Azure services, including Microsoft Azure IOT Central and Microsoft PowerBI, to build and deliver a solution that enables renewable energy production to be matched with demand 24 hours a day, 365 days a year. Energy produced from renewable sources is measured every hour, and consumption is measured using smart meters installed in places where energy is used. The transparency provided by the solution increases understanding of energy use and climate impact.

The solution allows companies to see if their 100% renewable energy commitment covers every hour of consumption and if they can convert renewable energy purchases into climate impact. It makes it easier for energy suppliers to understand hour-by-hour renewable energy demand and take action to help generation meet demand. By combining the existing system of Guarantees of Origin (GOs) for tracking renewable electricity with a digital solution to match consumption with renewable electricity production on an hourly basis, Vattenfall can provide electricity customers with information about the source of their energy - not just on a monthly or annual basis, but on an hourly basis.

This solution contributes to climate transparency through more detailed tracking of renewable electricity. Guarantees of origin allow end consumers to select electricity from a specific source, enabling them to choose electricity that comes exclusively from renewable energy sources such as wind, solar or hydropower.

Technology: IoT, data analytics, smart meters Partners: Microsoft and Vattenfall