Change Management In Energy Sector

Halfway through the first 100 days for the UK’s new government: With everything we are seeing right now, this appears to mark a critical period for the UK’s energy transition. Let’s take a look at what is already happening and its impact on the UK reaching clean power by 2030.    It was a strong start, immediately lifting the 2015 de-facto ban on new onshore wind in England, quickly followed by increasing the budget for the next renewable energy auction to £1.5 billion. A more than 50% increase in comparison with previous budgets. Much needed given the UK’s now even more ambitious climate goals: quadrupling offshore wind capacity to 60 gigawatts, tripling solar to 45 gigawatts and doubling onshore wind to 30 gigawatts. All by 2030.    But even with these measures, those targets are still a long way off. Ongoing challenges must be overcome to continue accelerating investment and deployment.     Most notable is the need to accelerate planning approval for energy projects – this calls for more resources to enable more timely decisions. This same principle must also be applied to expanding grid infrastructure to ensure timely grid connections for new projects. Regarding drumming up further investment, here, the publicly owned company ‘Great British Energy’ could help unlock more private investment, but the current commitment to work in partnership with the private sector must be upheld.   In summary: These first days have shown that the potential is there, and good progress has been made. A lot still needs to happen, but the UK seems to be determined to give the energy transition a massive boost, and we at RWE are ready to do our part. In fact, we are planning to invest 8 billion euros net in the UK as one of our core markets from 2024 to 2030. I am excited to see how this market will continue to develop.

NEW ANALYSIS: Meeting European climate goals will require a stark contraction in fossil gas use. But in many countries gas grid planning is based on the assumption of infinite gas grid use. Despite the substantial implications for gas grid users and infrastructure, current grid planning does not adequately reflect this new reality. This misalignment poses a substantial barrier to the transition towards a sustainable energy system and underscores the need for more holistic planning. Alignment of energy infrastructure planning with other planning processes could better support climate and social goals. Regulations regarding heat planning, for instance, have significant consequences for gas grid infrastructure development, heating appliance regulations and consumer burdens. Infrastructure planning processes also do not yet address the support needed to ensure vulnerable energy users are able to fully participate in the transition to cleaner, more efficient technologies. Our study provides comprehensive information on the current state of the gas grid, its development, and the regulatory framework in selected European countries, and identifies current regulatory barriers for the phase-out of fossil gas. It concludes with recommendations on how Member States could better align energy infrastructure planning with the attainment of national and EU climate targets: - Adopt a national phase-out target and give energy regulators a net zero mandate. - Make the regulatory framework fit for the gas phase-out. - Adopt integrated heat and grid planning. - Plan future gas infrastructure based on realistic assumptions about future availability of zero-carbon heating technologies. - Track and collect harmonised data at the EU level. - Protect vulnerable customers. More in our Regulatory Assistance Project (RAP) & Oeko-Institut e.V. report released today.

Understanding Workforce Challenges in Energy & Power Sector: My Takeaways and Solutions   As someone who has spent years in the trenches of industry, I see a growing challenge that’s hard to ignore; a) Plant jobs aren’t appealing to the younger generation anymore b) The new generation is not impressed by big names or brand loyalty anymore. For decades, working for a reputed company was a badge of honor, a status symbol. Not anymore! Compensation, once a key driver, is no longer enough. Younger talent values flexibility, purpose, and innovation just as much as pay (Needless to say compensation structure has to be competitive to attract talent)   Some Key figures for all of you:   - 25% of the workforce is nearing retirement   - 40% employees have left the sector for other industries since 2016 - 50% of Gen Z and Millennials reject employers based on environmental and ethical concerns   These statistics reveal a multi-faceted challenge: aging workforce, talent migration, and shifting generational priorities. The risks for operators are real: high attrition, knowledge gaps, and competency mismatches can lead to inefficiencies, safety issues, and higher operational costs.   But there’s hope. By reimagining workforce strategies, we can turn these challenges into opportunities. How do we make plant jobs more attractive? Here’s what I believe can make a difference:   Modernize Work Culture: The plant environment needs to evolve. Embrace flexibility. The new generation is not lazy, they are only against slavery. Hybrid work, upskilling, and wellness initiatives are no longer optional—they’re necessary to retain top talent. They’re the foundation for retention in a post-pandemic world. Link Purpose to Work: Highlight how roles contribute to solving global challenges, like sustainability and energy security. Show them they’re not just operating machinery; they’re powering a better future Workplace Innovation: Bring tech into the equation. Smart plants, automation, and AI-driven operations can attract tech-savvy minds. However balance automation with human competency: Technology can enhance efficiency, but only a skilled, adaptable workforce can navigate complexity under pressure. Preserve Institutional Knowledge: Need to institutionalize knowledge transfer and experiential learnings. Use robust platforms to store and transfer all knowledge. No one here is here to work till retirement now. Celebrate Plant Heroes: Recognize and amplify stories of plant workers solving critical challenges. Showcase them as innovators and leaders                                                                                                                              What’s your perspective on these workforce trends? Are you seeing similar challenges in your organization?  What should we do to make plant jobs exciting for new generation. #Leadership #WorkforceDevelopment #FutureOfWork #SkillsMatter   Engro Polymer & Chemicals Ltd Engro Corp Engro Corp  

The transition to renewable energy sources like solar and wind is crucial for a sustainable future. However, their intermittent nature poses challenges for grid integration and stability. Our latest review focuses on Integrated Energy Management Systems (IEMS) that can make a game-changing difference. An IEMS is an advanced system that combines predictive and real-time controls to balance energy supply and demand intelligently. By integrating solar forecasting, demand-side management, and supply-side management, an IEMS can optimize renewable energy utilization while maintaining grid reliability. Here are some key benefits of implementing an IEMS: 1. Accurate Solar Forecasting: By precisely predicting solar energy generation, an IEMS can proactively manage supply and initiate appropriate responses, reducing uncertainties. 2. Demand-Side Management: An IEMS can initiate demand responses, such as adjusting energy consumption patterns or incentivizing customers to shift loads, ensuring a better balance between supply and demand. 3. Supply-Side Management: When solar generation is insufficient, an IEMS can seamlessly integrate alternative energy sources, energy storage systems, or dispatch algorithms to maintain a stable supply. 4. Cost Savings: By optimizing energy use and reducing waste, an IEMS can lead to significant cost savings for utilities, businesses, and consumers alike. As the world transitions towards a more sustainable energy future, adopting cutting-edge technologies like IEMS will be crucial. #renewables #research #management #netzero #energy

A new government which promised consultation with industry has instead rushed out an announcement on EPL which (1) extends the windfall tax (despite no windfall conditions) to beyond the date of the next election; and (2) continues to leave material uncertainty, whilst appearing to indicate that our industry will be singled out (as compared to the whole of the rest of the UK economy) in not being allowed ‘full expensing’ for capital investment. Sounds technical, but in reality if implemented in the budget, would be a blow to energy security, to UK jobs and to the emissions of UK energy demand.

Renewables and nuclear met nearly half of global energy demand growth in 2024 — a turning point that carries significant implications for companies and investors alike. According to the latest Global Energy Review (IEA), renewables supplied 38% and nuclear 8% of the growth in energy demand last year. In other words, nearly half of the additional energy the world required was delivered without adding to carbon emissions. What has driven this shift? →Policy and Regulation: Major economies have accelerated support for clean energy through mechanisms such as the Inflation Reduction Act and the European Green Deal, unlocking substantial investment. →Cost Competitiveness: Renewables, particularly solar and wind, have become the most cost-effective sources of new electricity generation in many regions. The commercial case is now as strong as the environmental one. →Energy Security: Recent geopolitical tensions have underlined the strategic importance of domestic and diversified energy systems, leading many countries to fast-track renewables and nuclear. →Corporate Demand: The rise of corporate power purchase agreements and the proliferation of net-zero commitments have significantly boosted private sector demand for clean energy. Why does this matter for companies? →Decarbonisation is no longer peripheral — it is becoming integral to competitiveness. Companies that continue to depend on fossil fuels risk exposure to volatile prices, regulatory tightening, and reputational damage. →Early movers will secure cost advantages, supply chain resilience, and preferential access to capital. Clean energy is increasingly recognised not just as a sustainability issue but as a strategic and financial one. →The direction of travel is clear. Investors, regulators, and customers expect credible decarbonisation strategies, and those who deliver will differentiate themselves. Evidently the shift to renewables and nuclear is a commercial and competitive reality. Further resources to consider: https://lnkd.in/dasZ6qFw https://lnkd.in/dY_F2Dna https://lnkd.in/dseEXjtw #energytransition #decarbonisation #sustainability #netzero #climatestrategy #businessstrategy

Earlier this week the Government launched their new Industrial Strategy. This is good news for the energy sector, in two quite different ways 👇 Firstly, clean energy has been specifically identified as one of eight key 'growth-driving sectors' where efforts to will be focused. This follows on announcements of significant clean energy investment in the manifesto and the creation of GB Energy, a body designed to 'crowd in' significant private sector investment. Secondly, direct industrial emissions count for ~19% of the UK total today. Whilst this is falling the rate of decline needs to increase x4 if we're to hit our targets. The capex and opex costs of decarbonising operations are a key barrier to transitioning away from fossil fuels and targeted support is needed to help industry convert to low carbon fuels such as renewable electricity, hydrogen and biomethane. The renewed focus on the needs of UK industry should provide tailwinds for this. The UK has now had 10 different industrial strategies since 2011. Business may be forgiven for being weary. I think there is room for optimism this time however, with clear support from the Chancellor apparent from the very first pages and helpful supporting proposals for a new Industrial Strategy Council included - think Climate Change Committee type in role and status. There is both an opportunity for industry and energy but increasingly the finance and political will to realise it. Government are now seeking views from industry on the proposals. Link to the full document in the comments. #industry #economy #energy #energytransition

When faced with new policies, firms must decide whether to "wait and see" or invest in new #technologies and processes to comply. But how can companies make informed decisions when #policy implementation is uncertain? My latest research with Eun-Hee Kim and Maggie Zhou offers insights! We found that firms can gauge policy implementation commitment by analyzing communication exchanges between regulatory agencies and policymakers. Costlier agency communication signals stronger future policy implementation, encouraging firms to invest in long-term technologies. Empirically, we delved into the early years of the European Union's Emissions Trading Scheme (EU-ETS), a policy aimed at reducing #greenhouse gas emissions. We examined the European electric power investments in #renewable energy facilities (2004-2009) in response to country-level agency communications to the EU Commission. During this period, #carbon allowances were freely given away, #emission caps were not binding, and it was unclear whether country agencies would strictly implement the #EU-ETS. These, combined with the plunging price of carbon during the 2007–2009 financial crisis, cast doubt on any concrete, short-term return on emissions-reducing investments. Read our full paper to learn how firms can strategically respond to policy implementation uncertainty. https://lnkd.in/guzzc7Fz #policyuncertainty #strategy #sustainability #energy #regulation USC Marshall School of Business

What if green finance could scale decarbonization for SMEs? 🚀🌱 Small and Medium-sized Enterprises (SMEs) contribute about 40% of business sector emissions. However, many face significant barriers in accessing the necessary tools or funds to transition to Net Zero. Today, we are proud to have partnered with HSBC in the UK to help accelerate their transition ! Taking a step back, here is an overview of various ways in which finance can help scale the energy transition 🌱🚀: 💰 Green Loans and Equity Financial institutions are now offering tailored green loans & equity investments to invest in projects like renewable energy installations and energy efficiency upgrades at favorable terms. In 2022, green loans in Europe alone totaled over $150 billion, showing a substantial increase in availability. Green equity is rapidly growing, with venture capital for green projects reaching $10 billion in 2023. 🤝 Public-Private Partnerships Public financial institutions can offer credit guarantees and direct financing, which reduce the risk for private investors. For example, the European Investment Bank (EIB) provided over €5 billion in guarantees for green projects in 2022, mobilizing an additional €20 billion in private investment. 🌍 ESG Integration In 2023, about 60% of global asset managers incorporated ESG criteria into their investment processes. This includes exclusionary screening, where investments in industries harmful to the environment are avoided. 🔧 Innovative Financial Instruments Transition Bonds help high-emission industries ("brown" sectors) transition to greener operations, unlike green bonds, which fund entirely green projects. They support incremental improvements towards sustainability in sectors such as mining, heavy industry, and utilities. In 2022, their issuance reached $20 billion. It works for SMEs too Blended Finance: This involves using public funds to attract private investment in sustainable projects. By pooling resources, private investors reduce risks, unlocking significant capital for green initiatives. In 2022, blended finance transactions mobilized over $30 billion for sustainable development projects globally. 📚 Non-Financial Support SMEs often lack the expertise and resources to navigate sustainable finance. Public and private institutions can provide essential non-financial support, including training, information on sustainable technologies, and tools for measuring and reporting environmental performance. For instance, the SME Climate Hub offers resources and training programs that have reached over 10,000 SMEs worldwide. This is also where Greenly | Certified B Corp comes in, now offering HSBC's customers in the UK a rapid way to track their emissions. Thank you for your trust Emily Bailey Pedro Anaya Natalie Blyth ! Of course, green finance still needs to grow 100X fold, so join the movement now... https://lnkd.in/eW53NhYs

𝐈𝐬 𝐭𝐡𝐞𝐫𝐞 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐦𝐞𝐞𝐭𝐬 𝐭𝐡𝐞 𝐞𝐲𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐑𝐮𝐬𝐬𝐢𝐚𝐧 𝐝𝐚𝐫𝐤 𝐟𝐥𝐞𝐞𝐭𝐬' 𝐥𝐚𝐭𝐞𝐬𝐭 𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲? 𝐀𝐧𝐝 𝐰𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐑𝐮𝐬𝐬𝐢𝐚𝐧 𝐜𝐫𝐮𝐝𝐞 𝐨𝐢𝐥 𝐟𝐥𝐨𝐰𝐬? In the past month, at least two vessels transporting Russian crude oil were targeted in the Red Sea. The UK, US, and the EU are cracking down on both traders and vessels trading above the price cap, with the entirety of Sovcomflot placed on the SDN list, effectively blacklisted. But are we seeing all the patterns? Based on Windward’s Sequence of Activities and new AI capability for ship-to-ship classification, our data points out several trends: ➡️ Between April 2023 and February 2024, there was a 54% increase in ship-to-ship transfers of crude or oil products in the Mediterranean, an increase that occurred immediately after the carrying vessel called a port in Russia. ➡️ There was another 108% increase in ship meetings in Southeast Asia, also conducted after port calls in Russia. ➡️ Between April 2023 and February 2024, there was a 556% (❗) increase in Commodity STS Meetings in the Mediterranean conducted after dark activity in Russia or the Black Sea, and a 127% increase in Commodity STS Meetings conducted after dark activity in Russia or the Black Sea. Who exactly are the vessels conducting this activity? Most are sailing under the flag of Liberia (19%), Marshall Islands (18%), Panama (15%), Singapore (5%), Greece (4%), Gabon (4%), Malta (3%), and Indonesia (3%). This means the majority of these vessels are sailing under Flags of Convenience, i.e., less regulated and potentially prone to risk. Moreover, Windward’s Compliance Risk classified 22% of these vessels as Medium Risk, 13% as High Risk, and 1% as Sanctioned. This is why as of February 19th, the UK requires a new attestation after every ship-to-ship transfer. In our Q4 Risk Report, released today, we analyzed that dark fleets grew by 29% to over 1,800 vessels (❗). The analysis above points to why. According to Bloomberg, there has been a global surge in seaborne Russian crude exports in the last month, yet Windward data indicates that this increase was not necessarily driven by Russian-flagged vessels. Simply put, Russian-flagged vessels have become too conspicuous as targets. So, the Russians are diversifying, taking it up a notch with their deceptive shipping practices. What does all of this mean for you? 1️⃣ Take a good look at the chain of events and holders' history of the cargos in which you trade 2️⃣ Take an even better look at cargoes that transferred mid-ocean in the Mediterranean and Black Sea. 3️⃣ Rank flags of convenience as a higher risk. 4️⃣ Employ AI to reduce false positives and avoid alerts from the various noises in the system. Windward's Q4 Report: https://lnkd.in/eeby7BMN Bloomberg's article: https://shorturl.at/hABCX #tankers #shipping #sanctions #duediligence