My Energy 2050 Podcast

(Ep. 47) The Clean Regulatory Transition Project — Jan Rosenow

This week we speak with Jan Rosenow, the Director, Regulatory Assistance Project. The word, 'project' as Jan tells us, was meant to be a project to assistant regulators to build better utility regulation. The project operates in China, Europe, India, and the United States.
 
From this episode, you'll learn about the importance of regulation in the energy transition. Markets are not free, but depend on good (and bad) regulation to create market conditions that deliver outcomes that society wants. Of course, there is a heavy dose of politics in this mix, but the main thrust is to protect the consumer.
 
As Jan tells us, regulation is not just regulation implemented by energy regulators, but also comprises policies that shape the markets.
 
From a personal point of view, I love regulation. This will sound very odd, but one of the joys of living in the EU is we have so much regulation to study and understand the impact of both a multilateral institution, like the EU, but also the actions of governments and how they implement regulation is such diverse actions.
 
I was really excited when Jan agreed to come onto the podcast to discuss what the Regulatory Assistance Project does, and to focus on regulation's role in the energy transition. This episode delivers with both a general discussion on regulation in the first half and by the second half, we work our way through the role of regulation in the EU and the new Fit for 55 and Green Deal directives that are coming out.
However, I want to emphasize the eloquent way that Jan answers all my questions on regulation. Jan has a rare and true skill to be able to express the role of regulation plays in both abstract terms but also through examples. And I think what I'm saying here, doesn't do justice to how he explains the importance and differences regulation plays in the energy transition. 
The energy transition requires forward-leaning regulations that both push and pull new technologies in the marketplace. In this episode, you'll learn both how this is done and why it is done.

(Ep. 46) Weathering risk: The climatology of energy markets — Aaron Perry

This week we speak with Aaron Perry, a senior associate in Valuation and Risk Analytics at Resurety. We discuss the role that long-term and short-term weather forecasting plays in reducing financial risks. Aaron is a climatologist and takes a long-term view on the impact weather has on renewable energy, like wind and solar.
 
As Aaron explains, the market impact of weather in an age of weather-dependent technologies impacts the price in power markets. There is a strong need to predict the output of renewable facilities. This means the owners can ride the peaks and troughs of power markets and weather conditions. In short, there is a great need to do portfolio management of assets to ensure these are profitable.
 
To be honest, it is a bit hard for me to summarize our discussion in some clear points. As you'll hear, as the episode progresses, we get more and more exact in the language we use to describe the impact of weather on the power markets. There is a reason for this. The complexities behind financing renewable energy is not down to just money to build, but also to ensure long-term operations are profitable. Combine the finances with the complexities of the power market, and the complexities of weather prediction, and you get into the complexities of what we discuss today. It is just very complex. But it boils down to making sure renewables are producing at maximum output, and are also able to sell this power into the market.
Towards the end of the interview, we get into the role that hedging. Hedging, while it sounds like a risky term, as Aaron explains, actually just shifts risk exposure from those that don't want it to those that do want it. I think you'll find this informative to understand the complexities of renewable financing. In my interpretation, one of the biggest barriers to renewables, besides technological, is financial risks. This is why I find today's episode so important. If we find ways to reduce financial risks, or even lower the cost of operations for renewables, more renewables can be deployed.In short, the ability to ensure renewables are not-loss making means more fossil-free technologies can be deployed. Taking into account the impact of weather on the price of electricity means the energy transition can progress.
 

(Ep. 45) The Virtual Power of a Polish Energy Entrepreneur — Bartosz Kwiatowski

This week we speak with Bartosz Kwiatowski the director of the Polish Liquid Gas Association. I've known Bartok for over a decade and he is always a well of knowledge on the Polish energy scene and broader developments in Europe. So why is today's episode important to listen? You'll gain a greater understanding of the role that nuclear power and hydrogen could play in the Polish energy mix. In our discussion, we provide both a historical account of why Poland is reliant on coal and how it can transition out from coal. As Bartok points out, the dramatic increase in solar PV use in the country, or the development of energy clusters in towns contrasts the national push for coal.
Bartok has also been active in the start-up scene, trying to get a virtual power plant operating with a range of businesses. Bartok recounts the difficulty of having a small energy company - it saves energy, but it does not attract money to expand, because of its ability to save energy. Listen in, and you'll get the account of why attracting VC funding is hard at a small scale. Towards the end, we do cover the role of liquid gas fuels - this is important when we consider how we shift people cooking and heating to using gas produced from biofuels.
In this week's episode, we take on a range of issues providing a broader perspective of developments in Poland, but also within the EU. You'll learn of the complexities of decarbonizing the energy system in both large and small scale projects.

(Ep. 44) Beyond Oil? Carbon neutrality by 2050 — Adam Czyzewski

This week we speak with Adam Czyzewski, the chief economist at PKN Orlen. I'll describe PKN Orlen as a diversifying oil and gas firm.
I got the opportunity to sit down with Adam while I was in Warsaw and I'm extremely grateful for his time and his willingness to share his thoughts on the energy transition. It is possible that some listeners may object to my conversational style sit-down with a representative of the oil and gas world. I remember a conference I attended in 2019 when the Chief Economist for Equinor got not only a frosty reception but a hostile reception from the academic and policy audience at a conference on 'Beyond Oil'.
My approach to understanding and assisting in the energy transition is to listen to a range of opinions. In this interview, you'll learn that Adam - before he joined PKN Orlen 12 years ago, was an outsider himself. He shares his perspective and questioning of the sustainability around not just fossil fuels but global consumption of energy and materials. Even, as he points out - that plastic turned out to be too cheap and good for a consumer society. Nonetheless, the lightweight and durable properties of plastic make it useful for the energy transition.
Adam provides a pivotal acknowledgment and voice that says, yes, our present consumption patterns are not environmentally sustainable - but he also outlines how an oil and gas firm CAN make the transition to be carbon neutral by 2050. This seems unbelievable from an oil and gas firm. At least, I was highly skeptical before speaking to him. But as you'll hear, more than what I thought, could actually be achievable. Particularly, when you consider how the firm is diversifying into wind farms and investing in developing new technologies.
Depending on where you live and your background, you may be dismissive of what can we learn from a Polish oil and gas firm. As dedicated as the Polish government appears to be towards coal, it is important to understand the world, technology and firms are changing regardless of what is in the headlines. It may be a question of how fast we make the transition, or can we really believe fossil fuel firms will get rid of their fossil fuels? These are points for arguments. But at least from this interview, you'll gain an understanding of the market forces at work that keep fossil fuels as petrochemical feedstocks in the near - if not distant - future.
 
One of the reasons I wanted to start a podcast was to share some of the interviews I have with experts while doing research. I've interviewed Adam in the past and I always found him very knowledgeable and holding a broad view of energy markets. In this episode, you'll get more than an insight into the workings of oil and gas markets. You'll get a thoughtful discussion on where companies are heading as they lower their carbon outputs and invest more into lower or zero-carbon technologies.

(Ep. 43) Director of the Planet Super League — James Atkins

This week we speak with James Atkins, the Chairman of Vertis Environmental Finance and Director of Planet Super League - using the power of football to inspire fans to take action on climate change.
 
From this introduction, you might guess, James does more than just trade in carbon emissions. If there is an environmental polyglot, then James is it. From co-founding an organic farm to writing a book for football fans on climate change - he is out there working with businesses and social groups to ensure a positive impact is being made on the environment.
 
In this episode you'll learn how James moved away from the world of corporate accounting and set up his on consultancy, which over time, became Vertis Environmental Finance - an early pioneer in emission credits trading.
 
Within this interview you'll learn the softer side of why and how a business makes adjustments based on changing needs and regulations. Essentially, we have a story of a start-up learning and then copying how to break into the world of global emissions trading - learning by doing.
 
James is a true environmental leader. As you'll hear his message and activities span from the UK all the way to Romania. And as you'll learn, he's got a range of projects going on, like a certification scheme for rewilding solar farms in the UK to a cellulose collective in Romania. 
 
The intent of the MyEnergy2050 podcast is to spread the knowledge about how the energy system can assist our transition towards a greener future. The interview with James delivers on this point.

(Ep. 42) Prepare for Impact: The EU‘s Energy Transition — Miroslav Lopour

This week we speak with Miroslav Lopour, he is a Senior Manager of the Energy and Resources team at Deloitte Czech Republic.
 
We have a wide-ranging discussion about how the Czech Republic is preparing for the energy transition.  What you'll learn from our conversation is a unique perspective on the EU's Eastern Member States. I found Miroslav has the ability to express in a precise manner both the social and political resistance and reluctance to participate in an energy transition. As you'll hear in our discussion about the coming electric car revolution, Miroslav articulates why there is reluctance in the country, to move away from the internal combustion engine, and even coal.
 
He discusses an inherent conservatism in former communist countries which makes politicians and society reluctant to fully participate in a clean energy transition. I think our conversation provides an in-depth understanding of this reluctance to change, not just in the Czech Republic but in the broader region of Eastern Europe.
 
If I can think of one reason you should listen to our discussion today, it is to understand why certain countries are slow on the uptake and deployment of policies and technologies that deliver a clean energy. There is justifications for why countries move slow. Understanding the reasons can assist in developing policies and help us all transition to a cleaner future - not just a few countries.
 
As I mentioned we discuss a range of topics, but threaded through our conversation is the difficulty to change industry and technologies. Regardless of the reluctance, as Miroslav points out, the money from the EU is here - and ready to fund the transition. Therefore the Czech Republic is about to ramp up their activities and join the transition.
 
I think our conversation is an important milestone. We need to revisit the expectations expressed in this interview in a few years. Let's see if what the EU is promising in retooling industry and assisting people and regions, to move away from coal, does have a positive impact.
 

(Ep. 41) Fighting the Cold: Seeking a just energy system — Ana Stojilovska

This week we speak with Ana Stojilovska, an energy poverty researcher, who just received her PhD from Central European University, Department of Environmental Sciences and Policy.
 
And full disclosure before we get going. Michael was Ana's PhD supervisor.
 
Ana's research really goes to the heart of the divisions in Europe around energy poverty. Her thesis, 'Synergies between heating and energy poverty - the injustice of heat' tackles how people attempt and afford to heat their homes in North Macedonia and Austria. Her research shows two widely different approaches to assisting - or not - people to heat their homes. She really underscores the role that state institutions play in setting the price of heat, but also assisting homeowners to pay their bills.
As you'll her from our discussion, the right to heat emerges as a fundamental human right. We first get into Ana's questioning why her family only heated one room when she was growing up in Skopje. This may sound odd to some, but for many families in former Communist countries, this is still a common practice today.
 
She decided to pursue a PhD after she was spurred on by her NGO experience and after receiving a Masters in European Studies. Seven years ago, she applied to CEU's PhD program. And, as they say, the rest is history. For the past six years, Michael and Ana have been working together. 
 
Ana has been a great inspiration for learning new research methods - like phoning up thousands of people in Vienna. As you'll hear, Ana has a sincere dedication to her research. And for anyone that reads one of her five or six articles she's published while doing her thesis, there is great depth to her data collection. The outcome of her research is: Energy poverty is representative of deeper misalignments in state institutions and it is the people who bear the social and economic cost of state failures.

(Ep. 40) The Power of Hydrogen to the X: The Wärtsilä ship — Reetta Kaila

This week we speak with Reetta Kaila, Director for Sustainable Fuels and Environment at Wartsila. She holds a Doctorate of Sciences in Industrial Chemistry. And if you review her CV, and listen to our discussion, you'll both see and hear her drive to both research and operationalize a more circular form of power production in both industry and academia. She is a true scientist in solving problems and holding substantial experience to solve some of the key technological challenges we are facing, such as using hydrogen and gas in power production and propulsion.
On the surface, Reetta differs from previous guests because she works for a large corporation, which is Wartsila. But as you'll hear, Wartsila is a company that is the energy transition. That is, they are the ones building the power plants, the engines, and the batteries that underpin the energy and transport system of the current fossil fuel era, and as you'll hear, the future era of lower or zero carbon engines and storage options.
Wärtsilä, which according to their website is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. In 2020, Wärtsilä’s net sales totaled EUR 4.6 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. That is the general description from the website.
But what will you learn from my conversation with Reeta today?
First, you'll learn about pink hydrogen. That is my teaser, and you'll have to listen to the show to find out what is pink hydrogen.
Second, you'll find out how and why designing and building power and pollution abatement equipment for ships drives innovative solutions. Designing for these small environments can translate into big innovations on land.
I really liked our discussion about working in a marine environment, particularly on ships. Because if you think about the Earth, it is one big giant spaceship. And as Reeta tells us, the engines of a ship can produce 90 MW which is the same as that consumed by a big city. If you think about that size we really are talking about massive infrastructure being built by Wartsila. It is this machinery is where the uptake in new low or zero-carbon technologies needs to be used to reduce carbon emissions.
Innovation, as Reeta discovered isn't just done in a laboratory, but as she points out it is solving problems when a customer needs it. She uses an example of what to do with the gases coming from boiling heavy oil (or bulk oil) on a ship. Well, they discovered you could mix it with LNG and feed it back into the engine - and wala, not only do you get more power, but you get innovation.
Among, other topics, we learn about Power X, which is a program that looks to understand what to do with the extra electricity on the grids created by renewable energy. Some of it can go to battery storage, or even be turned into hydrogen for longer storage. Our discussion on hydrogen comes about halfway, but you'll find it really exciting when we discuss the different properties of hydrogen and gas. And how you can even mix 25% hydrogen and 75% natural gas and power an engine. However, just a word of caution, don't try this at home. 
We end the interview with understanding the role of society and with a hope that by 2050 we are running on pure hydrogen. Overall, I found our conversation fascinating for understanding what are the new technological - and even policy - challenges for companies producing the machinery that is now powering our energy system today and tomorrow.

(Ep. 39) The Carbon Storm of 2021: Energy shortages and high prices — Michael LaBelle

This week Michael is answering a question his brother asked. He works for a multinational company which produces parts all over the world. He's particularly concerned with energy shortages and reduced production by China's factories. He's asking if the global energy shortage and spiking prices is, as he writes, a "readily solvable problem or are we headed someplace dire?”
Michael take his question on in this podcast and answer it in the framing of what experts talk about when a hurricane comes ashore now - well, it's not directly because of climate change, but it emerges as a 'Carbon Storm'. The interaction of climate change and climate change policy and business responses. The perfect storm the media is speaking about, is actually a Carbon Storm that will occur with more frequency as the energy transition places pressure on old fossil fuel technologies and while newer technologies are still being rolled out. The market needs to adjust and so do regulations that facilitate the energy transition.
We can speak of the 'Carbon Storm of 2021' which reflects the new reality of Climate Capitalism, which Michael spoke about in episode 31. We are now paying the price of the energy transition, and how consumers, governments and industry react and work together to make this transition will also determine the price we pay in the short and the long-term.
In this episode, Michael provides a simple framing of the 'problems in the East' and 'problems in the west'. Unfortunately, he don't discuss the problems in the South. We hit on old topics, like Russian gas, but also energy shortages in China and Europe and how we get to talk about Europe's and Russia's dysfunctional dependency relationship. Well, maybe it's not dysfunctional, but its like a married couple that's been together for fifty years, maybe it's not dysfunctional to them, but from the outside we think it is.

(Ep. 38) Extracting value from a coal phase-out — Gireesh Shrimali

This week we speak with Gireesh Shrimali, Precourt Scholar at the Sustainable Finance Initiative at Stanford University. He is also an adjunct professor at Johns Hopkins University and involved in the Climate Investment Funds.
One of the key takeaways from our conversation is the idea of Value at Risk and the inter-relationship with transition risk. Gireesh's examination of risk essential for understanding how we accelerate an energy transition. We begin to discuss this halfway through, and it is an essential concept for managers to understand when assess the value of their asset portfolio. It is also important to understand how established technologies, like solar and wind, are already undermining coal and gas.
We can view activists investors, like those from Engine Number One, which seated new members onto Exxon's board, as radical energy pioneers, but Gireesh and his analysis underlines the importance of risk assessment as the energy transition speeds up. You'll find our discussion worthwhile for understanding risk and how coal and gas are becoming stranded assets with companies unable to extract profits - thereby threatening the survivability of the companies themselves.
Links
World Bank. “Coal-Plant-Repurposing-for-Ageing-Coal-Fleets-in-Developing-Countries-Technical-Report.Pdf,” 2021. https://documents1.worldbank.org/curated/en/144181629878602689/pdf/Coal-Plant-Repurposing-for-Ageing-Coal-Fleets-in-Developing-Countries-Technical-Report.pdf.
Calculating climate financial risk: How to combine transition and physical risks? | by Gireesh Shrimali | Medium
Deploying batteries at scale in power sector: A case for battery targets complemented with DISCOM-controlled dispatch - The Economic Times (indiatimes.com)