Sustainability is not just about adopting the latest energy-efficient technologies or turning to renewable sources of power. Sustainability is the responsibility of every individual, every day. It is about changing our behaviour and mindset to reduce power and water consumption, thereby helping to control emissions and pollution levels. This is why the Abu Dhabi Sustainability Week is so important. It is a vital platform for international dialogue and cooperation and an opportunity for real progress in tackling pressing issues in energy, water and the environment.
Often sustainability is discussed only in the context of energy. Energy sustainability is essential — but the word has a much broader meaning. It means long-term thinking about how we manage our businesses, invest in social spending and plan for the future. This requires vision and leadership, and it requires citizen engagement.
It is clear that we cannot continue to consume our planet’s resources at the current rate. The fact is that energy demand is growing three times as fast as the world’s population. If it continues to grow at this pace, demand by 2030 will be two thirds higher than what it is today.
As we struggle to respond to these developments, we face two big challenges. First, a global energy system struggling to meet the growing demand from our homes, factories and transportation infrastructure. The second challenge is CO2 emissions — there is no longer any dispute that these must be reduced.
I believe that a sustainable energy solution depends on four components:
• Generating power in an environmentally-friendly manner.
• More effective power transmission and distribution.
• More efficient energy use, through changes to our behaviour and technology.
• Visionary political leadership combined with realistic policies.
We must progress in each of these areas.
Coal and gas will remain the dominant sources of energy for the foreseeable future. Our challenge is to produce this energy more cleanly and to use it more efficiently. Great savings can be achieved through upgrades to existing gas and coal power plants with newer technologies. Highly-efficient Combined Cycle Power Plants — plants that generate flexible power with very low CO2 emissions — are a technology that will increase in importance in the years to come.
Another important part of the future energy mix is renewables. While the initial investment in infrastructure and technology for renewables may be high, the long-term benefits to our environment and well-being far outweigh these costs.
The second crucial element is effective power transmission and distribution. Whether energy is created from wind farms, conventional power plants or other sources, these are almost certainly not located where the power is needed the most. This means we need reliable and highly-efficient power transmission solutions, for example high-voltage direct current (HVDC) technology. This can transport power with only a 5 per cent transmission loss, a remarkable achievement, while also reducing CO2 emissions. In China this technology is already in use, linking hydroelectric power plants in Yunnan province with the cities of Guangzhou and Shenzhen 1,400 kilometres away.
The third piece of the puzzle is using our energy more efficiently. Here, technology plays a key role. I am a great believer in the potential of technology and innovation. Germany, and companies like Siemens, have traditionally been at the forefront with innovations that drive sustainability.
Energy consumption has to be managed by an intelligent grid when it comes to highly-populated areas. Smart grid technologies allow for the integration of renewable energy into the grid, as well as energy from distributed sources. Smart grid technologies can help meet increasing energy demand without requiring adding additional capacity, by balancing demand and supply.
Another area where great progress has already been made is in building technologies. The new Siemens headquarters in Masdar City is an excellent example. This building, with around 18,000 square metres of space, will be home to 800 of our employees. It will also be the first office building in Abu Dhabi to be LEED Platinum-accredited. Its sustainable technologies include an advanced building management system (BMS), which will make it 50 per cent more efficient in terms of its carbon footprint than a typical UAE office. It will also require 65 per cent less energy. Using energy more efficiently is the need of the hour in the UAE, where 70 per cent of the power generated is consumed by commercial and residential buildings, mostly consumed by air conditioning.
Greater technological efficiency in transportation is also important. Riyadh, for example, is currently building the world’s largest subway project, with six lines and a total length of 175km. Once complete, this network will offer sustainable traffic solutions in a city that previously relied primarily on diesel buses.
Efficient energy-use also depends on our mindsets and behaviour. One thing we know: There is no free lunch. People need to realise that their governments are sitting on finite resources that will run out one day. Subsidising power and water is not an ideal solution and does not help reduce consumption. We need to educate people, from a young age, about the importance of conserving energy in their daily lives. This includes developing simple habits such as switching off the lights when leaving a room, reducing reliance on air conditioning and using less water.
Finally, we will not make progress towards a more sustainable future without visionary political leadership and realistic policy initiatives. Abu Dhabi’s National Vision 2030 is an excellent example of a sustainable and realistic long-term plan. To succeed with a plan like this requires cooperation and strong partnerships.
At Siemens, we want to contribute to realising Abu Dhabi’s National Vision. We too share the vision of creating opportunities to protect our climate, safeguard our energy supplies, foster economic development and provide people with a higher standard of living and a better quality of life.
By working together, harnessing our ideas and creativity, and sharing information, we can achieve these goals. Events like the Abu Dhabi Sustainability Week play an important role in this process. I look forward to our continued success in this crucial area.
Joe Kaeser is the president and CEO of Siemens AG.