Oil Companies are evolving their organisations by adding inexhaustible renewable energy power projects. The shift to renewable projects is mainly due to reduced costs related to renewable deployment and diminished interest in fossil fuels as energy-producing commodities.
The latest research within the renewable power area by Gielen et al., 2019 shows that solar and wind energy are expected to see the most elevated development ten years from now. Furthermore, oil and gas companies continue to progressively allocate their resources in these two areas to decrease carbon emissions and line up with the changing energy mix. Oil and gas EPC (Engineering, Procurement, and Construction) sellers continue to empower the energy transitions by developing abilities to set up renewable energy frameworks.
The demand for global power is expected to grow at a Compound Annual Growth Rate (CAGR) of 2.5% between 2020 to 2030. A significant portion of this will be provided by renewable power generation – Solar PV and thermal at 11.9% CAGR, with wind power (onshore and offshore) contributing at 9.4% CAGR.
This developmental viewpoint makes renewable power a critical market for organisations in the energy sector, inclusive of oil and gas companies whose traditional market is currently in danger amidst the transition to low carbon emission sources.
The chief driver empowering the energy transition, for now, is the reduction in costs of renewable power. Earlier, the main disadvantage of renewable power projects was their huge expenses (in comparison to coal and gas-fired power plants). As of late, there has been an increase in their economic competitiveness (in part) due to government strategies, incentives, and innovative advances in technology. Therefore, oil and Gas Majors like BP, Equinor, and Shell have invested their resources into wind power generation.
BP and Total are also driving the way in increasing solar power capacity. At EGB Engineering, we believe that another aspect inciting oil and gas companies towards cleaner fuel sources is that governments around the planet are effectively zeroing in on decreasing carbon emissions and fossil fuel reliance. Laws and legislation have been enacted to enable decarbonisation, thereby driving wind and solar energy growth. Electricity generation via renewable sources is an optimal way to lessen carbon emissions. It also is a global mitigative approach to shift away from petroleum products to alleviate the danger of climate change.
EGB believes that the developing role of green energy represents a significant alternative to fossil fuel-based power generation. Natural gas’s contribution to power generation will be undermined due to growth in renewables and is likely to hold the same status in the global power generation mix as coal. EGB Engineering is working on countless projects and is helping our partners and clients make the switch. We have helped set up large-scale renewable energy projects that support EPC in Africa to cater to Africa’s growing energy needs while also helping realise renewable energy infrastructure – from design and conceptualisation to bringing changes in national policies in various countries. We believe in working for the greater good of this environment and our future generations.