Climate change not only affects the environment but ultimately, the economy and society as whole. Pollution, droughts, floods, and storms force migrations of large populations, straining economic resources and exacerbating inequality. One way to mitigate the impacts of climate change is to transition to renewable energy.
The energy industry remains one of the top contributors to greenhouse gas (GHG) emissions, generating 33GtCO2 in 2019.1 However, the energy landscape changed due to the pandemic. During the first quarter of 2020, global energy demand decreased due to the decreased economic activity and imposed lockdowns. However, there was an increase in demand for renewable energy due to its low operating costs and access to several power systems.2
The transition to 100 percent renewable energy will take time due to the nature of renewable energy sources and the current limitations of technology. Many renewable energy sources are intermittent and seasonal because water, wind and sunlight are not always present. There are various forms of energy storage systems which could address this constraint but these technologies are not yet fully developed. While battery energy storage systems offer part of the solution, the technology has not yet proven fully viable. As a result, flexible and quick-response non-renewable power generation sources continue to play a vital role in achieving system security.
First Gen has chosen to deploy the cleanest non- renewable source of energy, natural gas. Natural gas produces lower carbon emissions than coal and does not leave behind harmful pollutants such as ash and sludge. Natural gas can provide the required flexibility and reliability and therefore serves as the best transition fuel and complement to renewable energy.
First Gen recognizes that even natural gas must eventually be phased out to achieve 100 percent renewable energy. As such, it is exploring technologies that will allow its generation assets to run on alternative fuel such as hydrogen.