BAKU, Azerbaijan, February 5. Oil should not be dismissedin pursuit of SDG 7 (Sustainable Development Goal 7) is the United Nations' goal to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030, reads the insight by OPEC, Trend reports.
"While statistically oil constitutes a small percentage of global electricity generation, roughly 3%, in the bid to achieve universal access, no fuel should be dismissed. There are specific circumstances when oil is appropriate for electricity generation. Three points illustrate this. The first is remote settlements, or those with no grid connection. In such cases, bringing in generators and fuel is simpler than building new lines or facilities. This is why island nations often generate a high proportion of their electricity from oil. For example, the EU country with the highest proportion of electricity generated by oil is Cyprus," say the OPEC analysts.
The organization notes that the majority of those without electricity live in remote areas, 84% of the 666 million live in rural areas. These are predominantly low-income regions, often in fragile security situations and with weak infrastructure. In such cases, diesel-powered generators can be the right solution.
"Secondly, diesel-powered generation often has low upfront costs and simple deployment. This avoids the need for large loans that, for example, some well-designed solar mini grids at community scale may require. As climate financing from developed countries has not come close to the levels developing countries require, short-term bridge solutions, like diesel-powered generators, may become more necessary to improve electricity access. The third case when oil plays a crucial role in electricity generation is in terms of emergency backup generation. Diesel generators are known as the ‘default workhorse’ backup generators for critical infrastructure, airports, emergency operation centres, defense facilities, data centres, hospitals and much more. This is because of how promptly they can start operations, their ability to function well in harsh weather conditions and their capacity to sustain power supply for long periods. Many authorities and emergency planners pre-stock diesel generators as part of continuity and civil protection plans, reads the report.
OPEC says this is not restricted to developing countries.
"One large survey has found that about 85% of backup generators in commercial buildings and critical facilities in the US run on diesel, and another report suggests that the share worldwide is over 60%. An illuminating example of this is the backup generator system in the largest hospital in Vienna, the Allgemeine Krankenhaus. If the public grid were to fail, within just 15 seconds, a diesel-powered emergency generator would take over the hospital’s power supply, ensuring critical, life-saving equipment keeps functioning. This diesel emergency power plant can maintain power for the entire hospital for 48 hours of autonomous operation and, with shed loading, this can be extended further," notes the organization.
OPEC analysts say that these points underscore the fact that there are circumstances when oil powered electricity is an appropriate option.
"Given that electricity demand is expected to increase by a massive 85% by 2050, perhaps an expanded role of oil in meeting this demand should be considered. In the 1990s, oil constituted around 10% of total electricity generation globally. With technological innovation improving its environmental credentials, oil’s role in future electricity generation cannot be discounted. This important role for oil in electricity generation depends on a secure and stable supply of crude oil, and this is fundamental to all OPEC’s actions and activities. Oil should not be dismissed, nor should any energy source, as the SDG 7 2030 deadline for universal access to electricity looms ever nearer," the report says.