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INDUSTRY REVIEWNON-RENEWABLE POWER GENERATION


A paradigm shift towards cleaner power


Energy demand worldwide continues on its upward trajectory. Despite the rapid growth of renewable energy, the bulk of this demand was met by oil, gas and coal. Fossil fuels still account for 81 percent of total energy demand – a level that has remained stable for three decades – according to the International Energy Agency (IEA). Sam Whelan reports on the sector’s prospects.


6.3 percent, “the fastest growth rate of any fuel”. This was enough to meet a quarter of world energy demand growth, which rose 2.1 percent.


T


It is perhaps a sign of the times that a discussion of non-renewable power generation and project logistics should begin with a nod to the renewable energy sector. A number of project forwarders interviewed by HLPFI highlighted the rising demand for wind and solar power.


he International Energy Agency (IEA) has noted that renewable- based electricity generation made “impressive” gains in 2017, with installed capacity growing


“We see the trend more towards renewables rather than pure cleaner fuel,” said Nikola Hagleitner, chief executive industrial projects at DHL Global Forwarding. “We see an upturn in wind and solar projects with huge opportunity in this sector. We now see projects in countries like Saudi Arabia and Egypt, where fossil fuel power generation has historically been the main reliance.”


India and China However, the size and scale of the non- renewable power generation field dwarfs that of its emerging green rival. In 2017, global demand for coal was up


1 percent, a reversal of the downward trend experienced over the past two years, driven predominantly by increased coal-fired electricity generation in Asia. At 3 percent, natural gas saw the biggest rise of all the fossil fuels, buoyed up by high demand in China. Worlwide, electricity generation increased by 3.1 percent, with China and India accounting for 70 percent of the global uptick.


Both China and India are likely to dominate the non-renewable power generation scene for years to come. With a population of over 1.3 billion, India still lacks electricity for some 240 million people – the world’s largest un-electrified population, according to the World Bank. Coal-fired capacity provides three- quarters of the nation’s electricity, according to Bloomberg, but new capacity expansion is slowing due to the indebtedness of state- managed distribution companies and because of interest in renewables. One standout project is the 4 GW thermal power station at Yadadri, near Hyderabad. Currently under construction by Bharat Heavy Electricals, the USD3.1 billion plant consists of five


DB Schenker worked with Mammoet last year to manage the delivery of 100,000 tons (90,718.5 tonnes) of freight to Burullus, Egypt, for a gas-fired power station, with equipment supplied by Siemens.


www.heavyliftpfi.com


May/June 2018


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