Home Industry Energy Interview: Powering economies through net-zero electricity Grid modernisation, renewable energy integration, and digitalisation help advance the transition to a net-zero electricity grid by Marisha Singh October 13, 2023 Image credit: Supplied by Hitachi Energy Dr Mostafa AlGuezeri, managing director of Hitachi Energy for the UAE, Gulf, Near East and Pakistan, speaks to Gulf Business about the energy sector’s period of transition towards a net zero future. Q. What are the building blocks to achieving net-zero electricity? The path toward achieving 100 percent fossil-free electricity entails several key elements. A significant shift toward renewable energy sources like solar and wind power is crucial as they offer clean and sustainable electricity generation while moving away from fossil fuels. Establishing an efficient and reliable grid infrastructure is essential to accommodate the intermittent nature of renewable energy sources. Hitachi Energy has been instrumental in advancing grid technologies, notably through HVDC systems. These systems enable efficient electricity transmission over long distances, sending huge amounts of power where it’s needed most, including connecting offshore operations to onshore grids with minimal energy losses. Digitalisation and smart grid solutions are pivotal for optimising electricity generation and distribution. Promoting energy efficiency measures also plays a vital role in reducing overall electricity consumption. Hitachi Energy’s dedication to energy efficiency, which encompasses waste reduction in grid operations and support for electric truck fleets, aligns with the broader objective of conserving energy resources and curbing carbon emissions across various sectors. The organisation itself has reached a significant milestone in its sustainability journey by achieving 100 percent fossil-free electricity in its own operations. This accomplishment aligns with the company’s Sustainability 2030 plan, which aims to make its operations carbon-neutral by 2030. This achievement has resulted in a substantial reduction in CO2 equivalent emissions, exceeding 50 percent compared to 2019 levels, showcasing Hitachi Energy’s commitment to sustainability and its contribution to global climate goals. To attain this milestone, Hitachi Energy has adopted multiple strategies, including generating its fossil-free electricity through projects such as solar roof panels, combined with digital solutions like e-mesh for distributed energy resources, enhancing energy efficiency and reducing CO2 emissions. The UAE is taking decisive steps toward a carbon-neutral future, aligning with the 17 United Nations Sustainable Development Goals (UN SDGs). The UAE has designated 2023 as the Year of Sustainability, cementing its commitment to attain a sustainable future. Per the Paris Agreement, the region aims to achieve net-zero emissions by 2050. Hitachi Energy further enables the UAE’s 2050 Net Zero Initiative by supporting its efforts to achieve climate goals and a net-zero future. As the pioneering technology leader, Hitachi Energy collaborates with customers and partners to enable a sustainable energy future – for today’s generations and those to come. Q. What are the challenges of integrating renewable energy sources into the grid? One significant challenge is the intermittent nature of renewable energy generation, such as solar and wind. These sources are weather-dependent and can experience fluctuations in output. Hitachi Energy addresses this challenge by providing power quality solutions, advanced grid management and energy storage solutions. Utilising HVDC transmission for these intermittent renewables providing customers with an enormous degree of control, offsetting many of the challenges and potentially making the grid more stable than ever before. Additionally, energy storage solutions, such as grid-scale batteries, can store excess renewable energy during periods of high production and release it when needed, ensuring a stable power supply. Grid congestion is another challenge when integrating renewables. Increased distributed generation from solar panels and wind turbines can strain existing grid infrastructure. Hitachi Energy offers grid expansion solutions that make it faster, simpler, and more efficient to expand power grid capacity and accelerate the transition to a more sustainable energy system. Q. What is Hitachi Energy’s focus in the MENA region, as each country has a different growth stage and different visions? Hitachi Energy’s strategic focus is characterised by adaptability and tailored solutions to meet individual countries’ diverse growth stages and energy visions. The company recognises that each nation in the region has unique energy needs and development trajectories. Hitachi Energy has played a pivotal role in helping Qatar transition toward a more sustainable energy future. The company connected the Al Kharsaah solar photovoltaic (PV) power plant – one of the world’s largest solar PV parks – to the national power grid through its grid integration solution. The company contributes to Qatar’s vision of reducing greenhouse gas emissions by 25 percent by 2030. Hitachi Energy’s broader focus in the region extends beyond individual projects. The company collaborates with utilities and industry stakeholders to address the region’s unique energy challenges. This includes supporting energy diversification efforts per each country’s energy mix objectives, enhancing grid stability and security, and driving digital transformation in the energy sector. The company recognises the importance of local capacity building. By investing in knowledge transfer and skill development initiatives, Hitachi Energy empowers local talent to actively participate in the energy sector growth and development. Q. What is the outlook for your business growth, and what drives your growth in the UAE and the larger GCC region? Hitachi Energy is driven by a commitment to sustainability and digitalisation. Key growth drivers include the increasing demand for advanced energy efficiency technologies, integrating renewable energy into the grid, and supporting oil and gas companies transitioning to carbon-free energy solutions. The region’s ambitious sustainability goals, like the UAE’s ‘2050 Net-Zero Initiative,’ align perfectly with Hitachi Energy’s mission to provide sustainable energy solutions. The company’s expertise in grid modernisation, renewable energy integration, and digitalisation positions it as a key partner in advancing these initiatives. Electricity will be the backbone of the entire energy system, and with this, the focus on energy efficiency grows stronger. Hitachi Energy’s solutions are geared toward optimising energy grids, enhancing reliability, and reducing losses, all contributing to improved energy efficiency. These efforts are in sync with the region’s broader goals to enhance the sustainability and resilience of its energy systems. Q. With COP28 days away, what are you expecting from the summit, and what do you hope for? With COP28 on the horizon, Hitachi Energy is gearing up to address critical issues related to decarbonisation and sustainability. We are committed to reducing our carbon footprint, contributing to a more sustainable society, and pioneering innovative technology products that address global challenges. Electricity will be the backbone of the entire energy system. As global technology leaders, we take responsibility for the steps toward this vision, knowing that our efforts will play a pivotal role in driving worldwide decarbonisation and sustainability. We remain committed to advancing the world’s energy system to be more sustainable, flexible, and secure. Tags Carbon Neutral COP28 electricity energy grid Hitachi Energy net-zero energy UAE’s 2050 Net Zero Initiative You might also like Charging ahead: 63% of UAE residents want to drive EVs by 2025 Here are 5 key takeaways from the COP28 climate summit Countries strike deal at COP28 to transition away from fossil fuels Watch: Dr Sultan Al Jaber’s statement on historic global stocktake at COP28