New approaches are required for the management and financing of energy infrastructures as companies and governments seek to meet the challenges of increased extreme weather risks. New thinking is needed says the latest report from the World Energy Council, ‘The road to resilience – managing and financing extreme weather risks’.
The report highlights the need for a move from ‘Fail-Safe’ systems that only look at single assets to ‘Safe-Fail’ systems which take a systemic overview of the energy value chain and a more strategic approach to identifying vulnerabilities.
Christoph Frei, Secretary General of the World Energy Council said: “We are on a path where today’s unlikely events will be tomorrow’s reality. We need to be smarter and imagine the unlikely. Traditional ‘Fail–Safe’ systems, based on predicted events, no longer operate in isolation. New ‘Safe-Fail’ systems, which recognise that unexpected weather events are occurring and that systems which go down need smarter, not stronger, solutions. This new approach is essential if we are to cope with new weather patterns and phenomena such as the more powerful El Niño currently experienced in many parts of the world.”
To manage and finance resilience against extreme weather risks, the World Energy Council report recommends:
– Clear metrics that deliver robust systems which can recover in the event of a weather catastrophe
– A move from ‘Fail-Safe’ to ‘Safe-Fail’ systems that include soft resilience solutions. These recognise that the unexpected can occur and makes contingencies for any extreme events
– New financial instruments such as:
– Weather derivatives that complement traditional re-insurance solutions
– Catastrophe bonds that transfer peak risks to capital markets
– Adaption bonds which ensure funds go towards resilience measures, particularly in vulnerable areas.
As average global temperatures over land and ocean surfaces rose to the highest on record for the period January to June 2015, so have the number of global extreme weather events increased over the past three decades, rising by a factor of more than four from only 38 events in 1980 to 174 events in 2014. In 2014 the global insured losses from natural catastrophes and man-made disasters were US$35bn, with uninsured losses in excess of US$130bn.
In North America when Hurricane Sandy hit Manhattan the lights stayed out for more than three days. In early 2015 in Chile the country experienced the equivalent of 7 years of rain in 12 hours leaving thousands without electricity. And in the Philippines, the cost of recovery from the 2013 typhoon was estimated at more than double the GDP of the country.
With a shift in the frequency and severity of extreme weather events, the financial impact of extreme weather events is also rising, driven by a mix of factors that include economic development, population growth and a higher concentration of people and assets in exposed areas.
In conclusion Frei said: “Our report has highlighted that current estimates for the cost of energy system adaptation do not fully account for the additional financing required to accommodate these new emerging risks. We need to ensure that resilience can turn these risks into rewards.”
‘The road to resilience – managing and financing extreme weather risks’ report, which is to be presented at the meeting of G20 energy ministers in Istanbul, Turkey, is the first in a series of reports that addresses the need for more investment and system change to combat the new emerging risks, including extreme weather, the energy water food nexus and cyber risks.
The reports are prepared with Swiss Re Corporate Solutions and Marsh & McLennan Companies with insights from the European Bank for Reconstruction and Development and will be delivered ahead of the World Energy Congress to be held in Istanbul, Turkey in October 2016.
To read the full report click here.
Is Wood Burning Sustainable For Your Home?
Wood is a classic heat source, whether we think about people gathered around a campfire or wood stoves in old cabins, but is it a sustainable source of heat in modern society? The answer is an ambivalent one. In certain settings, wood heat is an ideal solution, but for the majority of homes, it isn’t especially suitable. So what’s the tipping point?
Wood heat is ideal for small homes on large properties, for individuals who can gather their own wood, and who have modern wood burning ovens. A green approach to wood heat is one of biofuel on the smallest of scales.
Is Biofuel Green?
One of the reasons that wood heat is a source of so much divide in the eco-friendly community is that it’s a renewable resource and renewable has become synonymous with green. What wood heat isn’t, though, is clean or healthy. It lets off a significant amount of carbon and particulates, and trees certainly don’t grow as quickly as it’s consumed for heat.
Of course, wood is a much less harmful source of heat than coal, but for scientists interested in developing green energy sources, it makes more sense to focus on solar and wind power. Why, then, would they invest in improved wood burning technology?
Solar and wind technology are good large-scale energy solutions, but when it comes to small-space heating, wood has its own advantages. First, wood heat is in keeping with the DIY spirit of homesteaders and tiny house enthusiasts. These individuals are more likely to be driven to gather their own wood and live in small spaces that can be effectively heated as such.
Wood heat is also very effective on an individual scale because it requires very little infrastructure. Modern wood stoves made of steel rather than cast iron are built to EPA specifications, and the only additional necessary tools include a quality axe, somewhere to store the wood, and an appropriate covering to keep it dry. And all the wood can come from your own land.
Wood heat is also ideal for people living off the grid or in cold areas prone to frequent power outages, as it’s constantly reliable. Even if the power goes out, you know that you’ll be able to turn up the heat. That’s important if you live somewhere like Maine where the winters can get exceedingly cold. People have even successfully heated a 40’x34’ home with a single stove.
Benefits Of Biomass
The ultimate question regarding wood heat is whether any energy source that’s dangerous on the large scale is acceptable on a smaller one. For now, the best answer is that with a growing population and limited progress towards “pure” green energy, wood should remain a viable option, specifically because it’s used on a limited scale. Biomass heat is even included in the UK’s Renewable Heat Initiative and minor modifications can make it even more sustainable.
Wood stoves, when embraced in conjunction with pellet stoves, geothermal heating, and masonry heaters, all more efficient forms of sustainable heat, should be part of a modern energy strategy. Ultimately, we’re headed in the direction of diversified energy – all of it cleaner – and wood has a place in the big picture, serving small homes and off-the-grid structures, while solar, wind, and other large-scale initiatives fuel our cities.
7 Benefits You Should Consider Giving Your Energy Employees
As an energy startup, you’re always looking to offer the most competitive packages to entice top-tier talent. This can be tough, especially when trying to put something together that’s both affordable but also has perks that employees are after.
After all, this is an incredibly competitive field and one that’s constantly doing what it can to stay ahead. However, that’s why I’m bringing you a few helpful benefits that could be what bolsters you ahead of your competition. Check them out below:
One benefit commonly overlooked by companies is offering your employees financial advising services, which could help them tremendously in planning for their long-term goals with your firm. This includes anything from budgeting and savings plans to recommendations for credit repair services and investments. Try to take a look at if your energy company could bring on an extra person or two specifically for this role, as it will pay off tremendously regarding retention and employee happiness.
While often included in a lot of health benefits packages, offering your employees life insurance could be an excellent addition to your current perks. Although seldom used, life insurance is a small sign that shows you care about the life of their family beyond just office hours. Additionally, at such a low cost, this is a pretty simple aspect to add to your packages. Try contacting some brokers or insurance agents to see if you can find a policy that’s right for your firm.
Dedicated Time To Enjoy Their Hobbies
Although something seen more often in startups in Silicon Valley, having dedicated office time for employees to enjoy their passions is something that has shown great results. Whether it be learning the piano or taking on building a video game, having your team spend some time on the things they truly enjoy can translate to increased productivity. Why? Because giving them the ability to better themselves, they’ll in turn bring that to their work as well.
The Ability To Work Remotely
It’s no secret that a lot of employers despise the idea of letting their employees work remotely. However, it’s actually proven to hold some amazing benefits. According to Global Workplace Analytics, 95% of employers that allow their employees to telework reported an increased rate of retention, saving on both turnover and sick days. Depending on the needs of each individual role, this can be a strategy to implement either whenever your team wants or on assigned days. Either way, this is one perk almost everyone will love.
Even though it’s mandated for companies with over 50 employees, offering health insurance regardless is arguably a benefit well received across the board. In fact, as noted in research compiled by KFF, 28.6% of employers with less than 50 people still offered health care. Why is that the case? Because it shows you care about their well-being, and know that a healthy employee is one that doesn’t have to worry about astronomical medical bills.
Unlimited Time Off
This is a perk that almost no employer offers but should be regarded as something to consider. According to The Washington Post, only 1-2% of companies offer unlimited vacation, which it’s easy to see why. A true “unlimited vacation” program could be a firm’s worse nightmare, with employees skipping out every other week to enjoy themselves. However, with the right model in place that rewards hard work with days off, your employees will absolutely adore this policy.
A Full Pantry
Finally, having a pantry full of food can be one perk that’s not only relatively inexpensive but also adds to the value of the workplace. As noted by USA Today, when surveying employees who had snacks versus those who didn’t, 67% of those who did reported they were “very happy” with their work life. You’d be surprised at how much of a difference this could make, especially when considering the price point. Consider adding a kitchen to your office if you haven’t already, and always keep the snacks and drinks everyone wants fully stocked. Doing so will increase morale tremendously.
Compiling a great package for your energy company is going to take some time in looking at what you can afford versus what’s the most you can offer. While it might mean cutting back in other areas, having a workforce that feels like you genuinely want to take care of them can take you far. And with so many different benefits to include in your energy company’s package, which one is your favorite? Comment with your answers below!