DECARBONIZATION INITIATIVES AMONG LEADING POWER UTILITY PLAYERS

Abstract

Decarbonization of the power sector means reduction of its CO2 intensity, which is reducing the emission of carbon dioxide per unit of electricity generated. In order to meet the emission reduction targets pledged to the Paris Agreement on climate change, power utility companies need to develop strategies on how to decarbonize their generation assets. Companies must achieve carbon neutrality by 2050, which is necessary to meet the targets of the Paris Agreement of capping global temperature rise at 1.5°C, and to meet the less ambitious 2°C target. Rapid decarbonization of the power sector is needed particularly as heat and transport sectors are electrified, creating an increase in demand for electric power. Decarbonization is being achieved by increasing the share of low-carbon energy sources, particularly renewables, and a corresponding reduction in the use of fossil fuels. Worldwide, renewables now produce a third of power capacity.