With the last year dominated by the build-up to COP26, humanity’s response to one existential crisis was front and centre: the climate crisis. And for us at the Energy Institute (EI) it’s felt like a period of great alignment. As the world’s governments, businesses and publics worked through what needs to be done to keep global average temperature increases within 1.5°C, so we’ve also been working through at the EI what it means to put our new purpose of accelerating the just global energy transition at the heart of our work.

This is undoubtedly a new energy era and I’m pleased to say the EI’s contribution to the global net zero endeavour is now well under way. This first superb issue of our digital member magazine New Energy World is the latest manifestation of this, uniting for the first time our coverage of issues, developments and views in conventional fuels with those in the growing cleaner energy sectors. 

The same was the case at our recently reimagined conference International Energy Week and our President’s Award, both of which you can also read about this week in New Energy World. And the just-published 2021 review of our good practice programme outlines broader and deeper work in support of the transition, with collaboration on carbon capture, use and storage (CCUS), hydrogen, power systems, climate resilience and sustainability.

Convergence and transition

All of these activities embody the convergence and transition under way in the field of energy. It’s in this context that we’re doubling down on what matters – attracting and equipping the diverse workforce required, convening the expertise needed by decision makers, and enabling industry to make energy lower carbon, safer and more efficient.

But in recent months it’s become increasingly clear that we are also dealing with a second crisis: the energy price crisis, as consumers across Europe face record high gas, fuel and electricity prices. And then on 24 February, as we watched in shock and anger, a third crisis dawned: Russia’s invasion of Ukraine. Like many organisations, the Energy Institute has acted swiftly to ensure its products and services are not used by Russian companies or in other companies’ Russian operations.

These three crises have occurred independently, but they are intrinsically interlinked and are not going to go away anytime soon. Moreover, they have major short-term and long-term implications for the energy sector.

The International Energy Agency has swiftly set out a 10-point plan for how Europe can reduce its reliance on imports of natural gas from Russia. For me, there are three truths laid bare by the current situation and which, if tackled in an aligned and concerted manner, can alleviate many of the impacts of these three crises.

Three truths

First, improving energy efficiency is something we can all do today to address all three crises. At the simplest level, turning the thermostat down a degree, replacing halogen with LED bulbs and taking a bus rather than driving. These are small changes but if millions of people were to make them, they will reduce costs, carbon and dependence on Russian gas immediately. Beyond this, homes, businesses, schools and governments must do much more to understand their energy use and reduce it.

At the Energy Institute we are proud to accredit – and are unique in accrediting – Chartered Energy Managers and provide some of the best training in energy efficiency available.

Second, increasing renewable energy has been painted by some as part of the problem behind high energy prices. This is simply not true. The costs of key renewable energy technologies have fallen dramatically in the last decade, reducing the cost of supply to the grid. And whilst natural gas provides critical balance when the sun is not shining or the wind not blowing, without the penetration of renewables our dependence on gas and coal would only be greater. 

To make energy cheaper, lower carbon and more secure, accelerating the transition to net zero is more important than ever. Ultimately, a renewable grid will be cheaper, lower carbon and more independent of global commodity prices and supply.

Third, Europe (including the UK) has been guilty of double standards. Whilst we have opposed or banned development of natural gas on climate grounds in many geographies, we have increased our dependency on pipeline gas from Russia and more carbon-intense LNG cargoes from the Middle East, US and elsewhere. Up until now this could be conveniently ignored. That is no longer the case. 

We all want a lower carbon future, but we need to recognise the critical role gas has as a transition fuel and as a long-term decarbonised energy source. It is also critical that the upstream industry focuses on reducing flaring and methane emissions, something the Energy Institute is supporting through the Methane Guiding Principles initiative. Sourcing gas domestically should be seen as part of the solution. It has taken record prices and war in Europe for us to realise these truths.

Make a difference

These are scary and difficult times, but I genuinely believe that we can all make a difference.  As citizens, consumers, voters – and as energy professionals – we all have a role to play in using energy more efficiently, not letting dogma ignore the role natural gas still plays, and helping to accelerate the transition to renewables and a low carbon future.

Together, the Energy Institute with you, our members, we can create a better energy future.