Strategic Update: The Energy System

so great we'll start this session is actually the only session of the summer doubles this time that's purely energy focused and then we know that we're seeing huge transformation in the energy sectors in terms of the global landscape and today we have a very good job mixture about our panelists because we have big voice two giants we have innovators and we have professors and scholars so I think it's a very good background so we can we can really look backward and look today's to bring everyone on the same page and to see what are the latest updates in terms of disruptive technology of the sector and also we will be looking for it and see where we're going in terms of the country policies and also in terms of corporates and how do we cope with all these disruptive technologies and how can we smoothly transit from traditional energy to clean energy so that's basically the agenda of today's panel and then I'll have a very brief go around the room to introduce our and dear panelists to everyone so this gentleman he's mr. John Carrington he's the chief executive officer of a stem welcome this is uh mr. Karsten Stoker he's a head of a block shing competence team energy Germany he calls himself the machine economy evangelist so another innovator I think these two gentlemen and professor lingo Chang also upfront and then he's always very informative and then professor limbo Chancellor Dean of China Institute for studies in energy policy of a Shanda University welcome and these two ladies this is miss Charlotte rule and chief executive officer of ng China welcome and this lady next to me so Miss young Xiao ping she's the president of VP China so yeah I think after the very brief introduction we do see that people are coming from very different backgrounds we have innovators we have traditional players so I think from your I like how why don't we kick star like this like from your respective industries over the past year what are some of them the biggest it disruptive technologies that you're seeing or you're looking into or what are some of the things that you think it was not possible a year ago and it's now possible so I'll start from our innovator okay thank you yeah I would say in the last 12 months what we have seen in our business and we build and operate the largest digitally connected network of energy storage solutions it's really a software company but what we see is the tremendous deflation of lithium-ion batteries which is opening new markets literally daily we also see rapid adoption at a utility level and we're seeing that globally and finally customers are demanding the ability to participate in markets they don't want to change their behavior and they have to run their business day to day but they do want to participate in markets and actually turn their business energy spend into a revenue stream and companies like mine and others are focused on the analytics to enable that so I would say that just more mass adoption in line with tremendous deflationary environment from a battery standpoint is really the big game-changing technologies and the environment we're seeing today right so you're actually a service provider in terms of innovative technologies as a software company that's right in fact it's a it's a subscription model software as a service model and very much focused on you know the software platform the analytics machine economy eventual is like what does that mean and what do you do like why because we see that you're in the head of the blockchain competence team of energy Germany and then I saw some very interesting tag line from your company it says energy is a colorful flexible full of energy and creative ideas that doesn't sound like some of the you know the the cash phrase for the energy sector like traditionally so can you tell us more about it sure so at energy we are boasts we are big accumbens because we are running a large and you will fleet you're running large distribution grids so we have Witter business and mobility business in addition we have an innovation team innovation team is working in food startup mode and of course we would like to kind of to work on the next business models for the app position so working also on transforming and reinventing the energy system and one of the key hypotheses we have is building upon what Rajan said that a lot of assets are now being connected to the grid the assets are connected by a Internet of Things devices the assets arm make intelligent autonomous assets and what we are looking into our machine economy we are looking in the trans future transaction layer to enable the assets to do transactions among each other which basically means I have an asset I put analytics algorithms on top of the assets I include blockchain and this block chain with transform an ordinary intelligence asset into an economically independent device which means it's micro organization it's a micro colonization that can transact with other machines with other assets it's a micro organization each SS with its but and in addition we are also looking of course into cybersecurity because when all the assets that I'm transacting among each other we don't want to screw up our critical infrastructure and for that reason machine economy for us to me instruction IOT analytics and cybersecurity right so we have innovative technologies like the intelligent batteries for storage and there is a technologies like blockchain so we got these are the key words from our innovators and then to Professor legging because you you have a very thorough study on the industry of the entire landscape so we want to look back over the past one year what was your key finding in terms of that the area so you're looking into and what are some of the most outstanding disruptive technology I think that's a lot of technology coming out some of them are economic or something are not but in my view that the policy is very very key transition and also to adapt in technology China an energy company I try very hard right now not only to to adapt to a new economy and also the demand pricing environment but at the same time had to accept that the idea that the new technology like renewables coming in one will all the traditional energy companies but they have to do it so in my view that the how to respond to the reforms and policy changes in countries particularly country that China we are carried out in a tricity reform at this moment that 20% of the electricity is the treaty at a market which is never never happened before and we just announced the oil and gas sector reforms just a few weeks ago and the green certificate is on the market right now and next year we are going to carry out there the quarter system compulsory quadrant system for that for renewables so all these are going to create a huge problem folder and its citizens and its comparative the transition but they have to adapt to it because it is something that they have this area but what policy and bad policy really created a problem for transistor one way or the other so we hope in that we are going to look for the group policy and making the right choices mr. rule so from a more of a traditional energy giant point of view but also we are embracing as a change and in that respect and gee made a choice to step out of coal and oil so this is not an easy choice but this is a definite choice that we are going through and we are at the end of the day stepping in energy transition because it's really what we believe in what I would say in terms of of changes in terms of technology and maybe a bit further if you allow me about technology one thing just to keep in mind even if there are this is not something new as the technology but renewable energy becomes more and more affordable and to me there is a market aspect that plays a role in the energy transition and that push forward probably the the fact of stepping out of coal typically I would say also that to support that some some solutions exist already to make energy transition a reality from right now this being energy storage with the limit that we know but still there are some research done on that and it's progressing I would also mention not to be provocative but I mentioned that we were stepping out of oil and coal but we are not stepping out of gas and gas is also part of the energy transition and even of the energy future because it can really decrease emissions right now co2 emissions with an immediate effect and further what I would see as a major trend and change is the stakeholders engagement second dose commitment to the energy transition so this is all about citizens asking still for green energy but also big customers I was in a discussion where people were wondering but how can we make an LG transition a reality but us as an energy company we already have requests from our customers to have only green electricity supply so this is happening citizens are getting organized Myers also so it's not only the state it's also at the city level and the c40 is an interesting initiative in that respect so that's the three aspects are UT affordability of renewable storage solution and probably blockchain also to track because stakeholders commitment is getting higher and company level because I read about that you actually stuffs in solar business in China yeah absolutely that's right in a very promising company called unison and we are very happy to support their development this is also about developmental of Union promising companies in China very proud of that it seems to be coping well with the with the transition and what Bell VP China so BP own new world asking you I think the industry have made really good progress and from the stats review it's clear that energy market is truly in transition the good news is at the end of if you look at 2016 data renewable energy growth was 12% in 2016 and if you look at the coal consumption it's actually is enough and the pace may need to be faster so from that point of view if we look at that achievement and say what do we need to do more in order to meet with the Paris agreement I think pipi among oil and gas companies we actually think they are three three six things we need to do better and to help with the energy transition the very first one I think only mentioned as well we want to expand the use of natural gas because increase one percent natural gas in power generation in word power or power generation can reduce carbon emission as much as 10 percent growth in renewable energy so it's very very significant so last year you saw the shale gas production exactly what is the MPC exactly yeah we actually right now have 50 percent or in a gas ratio we're going to increase to 60 percent of gas and we think that's a very important step and the second one is if you look at the energy efficiency we try to also improve energy efficiency in our own industry we have piqué plants in too high that actually has best technology for the industry reduce the carbon emission by ninety five percent as compared to other traditional technology for example and third one of course we want to help the consumers around the world to improve energy efficiency for example oops if we have good loops that can help energy efficiency therefore will reduce our carbon emissions and other things I think is also important we talk about all these innovation technology we want to invest more in the startups and the innovating companies that aims the development and come realization of low-carbon energy and this is kind of our steps we want to help with energy transition lastly but not least BP really wants to expand the use of renewable energies we actually among the major oil gas companies we have the highest renewable energy business we have wind power in u.s. biofuels in Brazil as example and we'll continue to look into that possibilities and this is how BP and many other oil gas companies are taking the next steps to make sure we get to the energy transition agenda thank you so we had a very brief around the room answers for the for the first round of questions I guess just two so to let our audience I think know a little bit about the latest update of the industry and also I think know a little bit about each and every one if your background so now we can dive into some of the more detailed sectors I think we talked about I think as a professor Lynn pointed out that it's difficult but then the change the transition from traditional energy to clean energy has to be made so now let's talk about some of the challenges and I think Charlotte she talks about the renewable energies being affordable so we talked about some of the cost curves and then mr. Carrington you mission about like lithium iron like but then we see that the if the price really I think is huge fluctuations although it's been like it has been going up for the past few years and now I'd like plunged but then people still see like for example the intelligent battery storage as an expensive technology so where we are exactly and then is there any challenges or I was reading that some people think it's already the mainstream is was yeah I think it's ready to go mainstream a lot of areas in the world you know there's a tremendous cost down we saw in our business and 15 to 16 70% we saw 30 percent last year expect the same this year I think the real wild card in the battery storage side is as V's become less efficient for the car usage the grid side is still available and so that secondary use market is starting to come in over the next two to three years whereby the automakers will have to change those out they'll come to companies like mine and others that will be happy to utilize that from a grid standpoint that will drive cost down again some sequentially my view is below $100 I think that much like solar you'll see this resolved to a cash cost level because scale is really what drives the cost down in this space and I go to Korea China Japan I've seen all the big manufacturers over the last 18 months and to a manufacturer they will tell me they are continuing to add capacity they feel like in Korea particularly this is a foundational product for their country they miss solar if you will so batteries are not something they're gonna miss and so you have the Koreans the Chinese like byd and the Japanese none of which are going to necessarily acquiesce the market so it's really created an oversupply as oils come off $100 and v's have not taken off maybe to the level they expected so there is a massive amount of oversupply today that's continuing to drive down this cost every cost deflation opens a new market for the grid and the energy storage side of our business and others so I think you'll continue to see it come in I don't see another technology really responding as quickly as it as lithium-ion does and the technology they have the back they have these big companies is pretty compelling I think for the space I really wonder how the story goes in China professor Lin because we've been talking about things like smart grid for the longest time and then you mentioned is still difficult and then we know that for these renewable energies or clean energies like solar or went in the like before in the past it used to be a lot of the heavily depend on a subsidy and then now we're seeing increasing capacity and the we're seeing that the cost of it like going down to lower and lower but there's still a lot of these the renewable energies got wasted we call that she phone she phones she Guam so like what why does that happen that is why the policy is quite important to guide the investment on renewables which is the enormous amount in fact for last 20 months I think that there's a numbers 320 billion something like that in the renewables but do we edit each generation out very low that's what we caught about chief on chiquan yes sir that's the reality the reason for days that we resources are normally located very far away and there's no marketer and given the current largest surprise across the country it's very difficult for those power to set the low centers some results if invest on the ability but not much use so that's why the parties you really have to step in not only to gather investments for example we really prefer the micro grid distribution in a row center in the place where the market is ready not in the presence so far away this no maki there whatsoever so that the parties is not only to gather investment of all the places where that can be utilized also very important there to address the current problem if you're already how you could solve the problem either gonna let those machine capacity just stand there you know not much useful so right now I think that is a that's what step has been taken already that's a green certificate it was issue a couple weeks ago and I believe we be treated in the market very soon but but given their that the compulsory Renewable quarter had to be there to support a green certificate we saw that green certificate not going to go it's not going to go anywhere so so I think that there is a compulsory Porter for mobiles we can basically more than solve the problem of what we call that that low journalism how is a very far away in those locations but at the same time we also try to have a policy to guide those investments into the place white ricotta market distribution us micro grip but the problem is that we are the problems about those for those investments so those are we need to figure it out step by step what are the policy needed for so the market problem what are the policy media to guide the investment to water places why is it useful so in terms of challenges like what do you think would be like that the key challenge do you think it's really like for example China is so huge so it's not I think it's not as easy as the country for example like Germany the size of Germany because you talk about a lot of these plants are really far and remote it it's hard to like maybe even through this like super high pressure power grid to to and then also to have all those micro smart grid so that's more of us feels like from a planning and from a technology perspective or do you think it's more about policy do you think the country they have some sort of a preference to still the traditional energies like coal for those kind of energy feels more right now I believe the technology is basically they're not super high no high voltage it's all there and then the the the cost of linear voice is so low at this moment that whatever government subsidy is sufficient to cover you the main problem is ours you don't have generation hours you are too far away from market so so just technology is seem to me is not enough to address and we knew so the policy here as I mentioned before that really have to stay in to support it that that the transition from the German or American innovator perspective do you have any solutions to that I think I think we need to two-pronged strategy and the one hand side so we are adding a lot of assets D central better these solar wind small assets to the grits especially in Germany and of course Germany we have to change when we add the assets to the grid it's a redistribution of wealth bottom to top because the people with their houses living in the remote areas that can afford to solar-cell say by the solar cell gets a tax cuts and a contribute to the germ energy transition I think of course when the cost curves are coming down then it's much more affordable and people can get much more renewables on the rooftops are batteries all the kind of things on the other hand I really like what China is doing because I was one hand side of this D Central approach bottom-up on the other hand we have more kind of top-down approach and I really like this I think we need both approaches because what Chinese researchers estimated that we need 50 trillion took to a total transition of our global energy system which means we add so let's a creator we had wind at the Arctic Circle and harvest the energy there and transported via high voltage grids to the consumers and I think this is very promising because 50 trillion is half of the global GDP in 2025 2025 which means the mankind humans can force us to build such a global renewable infrastructure and I think this infrastructure can only be built it's being driven top down by about policymakers and that's promising that's more going and kind of more utility scale large utility scale approach and not this decent report but in the end I think we need both approaches I didn't we need to have a combination of technology advanced together with the policy guidance for example in China we like distribution every time we set a very very high talkie for distribution but there's not much why we could look at a city why we really like the disorder to be but it's no we don't have a new table we all live in the high-rise and that do not belong to somebody else so then our electricity was heavily subsidized and our consumption per household small house or three are very small so put together some incentive there's no fridge if there's a physical limit so to figure out how to do it to move the soda from very remote areas larger ones individuals in the cities or nearby sir would really need a policy to support and technology such that we can address the problem of just do Todd yeah I agree it's a policy technology combination for sure I would say that you know we are seeing much more focus on storage becoming a virtual power plant in these buildings so as you mentioned they there are more distributed resources on the grid Wheeling power from a large solar field is challenging in many areas of the world and so by utilizing a storage facility or escape ability in buildings it enables each of these buildings become virtual power plants in America some of the most congested oldest grids our original first founded cities so we're seeing a high adoption rate in those type areas but yeah the policy has to follow on very closely and I I mean I would cite energy efficiency and there are no rules in two-thirds of the country two-thirds of the countries do not have an energy efficiency plan or policy in place which is very surprising to me because that is obviously a very large utilizer of energy policy technology combination I think it's also important to put a price on the carbon because some of the renewables are still not as widely used because the cost is high but if we put a price on the carbon then the market force will play a much more economical and comprehensive way to help energy transition to lower carbon some scenario and that would be more sustainable and especially if it's a economic a white a carbon price that we can all cut into I think this is one of the things that BP is really an advocate for as well because we think this will make the energy transition more sustainable incentive to use renewable energies will be there for us to make it transition more smoothly so I fully agree with using the carbon price is is really of importance because it's a strong signal that can be given at a central level for the rest I agree with what was said we need a combination between technology and regulation regulation is very important it may seem weird to say that in a moment where we are saying well we should sort of free energies meaning that we should have more decentralized system closer to the customer closer to the actual need and then more efficient but at the same time there is a risk to my mind if we go for at least completely off-grid solution to have some pockets of our area of people that would not be covered I fre appreciate in that sense what is done in China with respect to poverty relief measures it's a really positive this is something we we jumped in through our affiliate which you mentioned but I think it's very important because the approach could be to say well we don't need big infrastructure anymore and I agree with you it's probably a combination of both we still need to have something allowing to at some point to balance the globe so carbon price because it's a clear message centralized one and for the rest we need to be em together and that might be my second message actually this is really something I mean none of us have the absolute as the absolute answer and to me the interesting and important thing is to team up to make sure that there is a constant dialogue for us as business regulatory with regulators but also obviously with our customers then being able also to express their point of view because I mean all relationships are sort of I wouldn't say biased but I mean whereas there is a there is a past behind but that's together that we can build the energy world of tomorrow I want to add on what you talked about because I think the last round of that question you mentioned about Paris agreement and we know that's been in the in the in the headline news recently and know that with the u.s. withdrawing from actually things the first worldwide address that the worldwide a deal to address global warming issues and what are the implications to countries like for other countries like where do we stand right now if then what are the implications for companies like not only in this net in this days and also companies around the globe because I think in the past a lot of these companies they've already invested heavily in terms of R&D to cope with to adapt to all these up to to Paris agreement so now where are we I think that's very interesting what you're mentioning is actually this is an opportunity in a way so this is obviously a very bad news but as it happens the Governor of California immediately said that it would go on with his plan anyway so in the United States within public authorities you have already voice and not the smallest one providing that there could be smaller or bigger that express themselves to support a Paris agreement going back to the stakeholders commitment to energy transition I would make that anyway city's citizens are committed to that that we see that among our big customers so the companies are not changing they are still asking to have green energy and actually you can see also that towards banks and funds there is less and less if not no loan - - I mean called project or that kind of thing so the support from the financial industry is also withdrawing and that I mean the the momentum was created and I think it's it's still going on yeah momentum has already been created and the 4pp were continuing our efforts and our commitment and a focus in developing technologies in making contribution to reduce carbon emissions as you know the cop21 past meetings commitments were already made you know continue I really want to ask John because I quote trunk and he says the Paris agreement is white Whiteley unfair to American businesses so what do you think I mean he basically is saying that he wants to negotiate this new deal and what kind of deal do you think that you will be negotiating yeah you know I'm disappointed in the decision I think that and both in there was a large faction of Fortune 500 CEOs that came out in favor of it and directly approached the president but I you know I think you have a very good point in that we don't have a national energy policy in the United States it's state driven in California where I live the governor that you highlighted I think California if it were standalone country would be the fifth largest country in the world and so since we don't have a federal energy policy it's driven at a state level so 80 to 90 percent of everything that goes on is this state level and that train has left the station people are gutted that the local legislation the people the businesses are committed very unclear as to what I think the president would try to negotiate around I think it's positive that he did say he would like to restructure as opposed to just not revisit so I'm encouraged by I think the fact that kind of we're on our way but I would like to see them come back and work the second largest first largest emitter it's crazy to not have the u.s. part of this and I think they'll find a path to get there again I think you'd miss your point about the the u.s. how the country has no federal energy policy and I really want to ask professor Lane so what are the implications and then for China's case obviously I think we do have the the national target and then so what are the differences between these two kinds of systems so that's more of a spontaneous question and also like for trader phase like after the u.s. withdrawals from the Paris agreement so where does China stand for the China that means all national policy okay so the the leadership is very clear we are going to continue to support the Paris agreement and in a date in addition than what we could me to be possibly advance that the years of emission pker so everything is in the momentum now why is unfair is that if US began to reduce the energy cost unless you guys win to step on to take on the cost okay the whatever the innocent cause but China and other countries are adding a because for example we are going to we are going to implement their comment or in common market and which it couldn't be the cost for energy market for energy company I mean you guys have reduced in the cost we are increasing the cost how we're going to compete in the future at anyway a global market so so those are the really unfair really for them other countries as I said unless you at the energy company within to me whatever the equipment so you guys could meet before but but it's not that that's bad news yeah but China we we will continue to support and you're going to see the carbon market comments where you're going to see the compulsory renewable quarters everything is really to for the transition in fair China has a 20 to 25 the sensor process in energy at this moment electricity and coal but China still invests heavily very heavily on renewables why because we know the transistor is very important we know no common is it very important for all of us the the best choice for tonight's don't be or anything at this moment okay but we already stopped the coal-fired power plant we stopped it it's still coming in but it was a decision made before but new one is NASA new one coming in all the new one up all basically focused on the nuclear you know those are renewable were in soda but so so the the China commitments there what US company do do you have to had to stand up believe me the executives the United States echo your concern and I respect and admire the energy policy and China and what you've done here it also helps you from a finance ability standpoint you know clear policy drives financing and without it your cost of capital is much higher and you know that's a big big issue as you think about what is going on in the United States today so I look forward to more stability around this and again commend you for what you're doing here in China review it looks like I mentioned about coal consumption last year was decreasing sharply and at record low since 2004 those are contributed by man China's you know efforts as well as us actually because shale gas was at lower cost therefore lots of power generation switched from coal to gas based so actually US has from that perspective made good contributions it's not necessary policy per se but its economic journal as well shale gas cost was lower I would like to add because Linda mentioned new nuclear there two types of nuclear there's nuclear fission and fusion and from my perspective so there's no space to burn any fossil fuels anymore that's reason why invest a lot of in new worlds our best talents are looking into new world however I think there's also nuclear fusion and for my perspectives it's still an under explore technology that has a huge potential to solve the energy demand on a global level if we master the technology and from my perspective even application to kind of to also look at this technology and we are from a policy from a government financing perspective to make sure that we go further ahead to bring it to a to the physical breakthrough into a cosplay group that we can add this to our portfolio of supply that drives a more cleaner and sustainable energy supply future yeah I think in fact I'm not hurt why also invest in research and we also invest in the ice hydro there was being a news last few weeks so the the investment is there and of course the technology advances do you need it for those to be economical then we have we still have nearly 20 minutes left for our panel but then now actually I do want to open to the floor for a little bit and the see if like so far anyone has any comments or any questions to particular panelists so you can raise your hand we can pass a mic to you and the let everyone know like what's your name where you're from aware question is and this jet with I came from Emma the where the NEMA is emerging country where 65% of people do not have access to electricity and right now we are almost zero in terms of coal fire power plan zero renewable but in next five year I'm going to see more than 40% coal-fired power plant and still zero percent renewable so the that the reason is the benefit of those the new technology and the benefit of those disrupted business model like the regional power trade the the rise of the distributed power supply and the mini-grid are not actually available to the emerging country if you compare that to India you have five cents like kilowatt for solar and if you come to mama is five cents become twelve cents and for the the business model like a mini grid where you can actually provide access to the rule the population these many grades are not bankable and even this is bankable the even the private investor at the man in twenty percent IRR minimum so how can the leadership of this emerging country like NEMA can hardly have it cleaner or cleaner option yet affordable and bankable so is there any comments on that thank you because we talked about the fourth industrial Usha and inclusive growth so how do we achieve this kind of inclusive growth in this transition from traditional energy to renewable energy to clean energy so anyone wants to come in therefore from my perspective as as much as we scale renewable technologies in the inter developed world we bring down the cost curves even more aggressive and then it will be affordable for the develop and countries I think its affordability it's a placement of existing coal-fired fossil fuel burning power plant but also not sure about muammar but in Africa there's the issue of access to energy a lot of communities people don't have access to energy as all and my view is so in the developed world if you drive down the cost curves much more aggressive I think then the cost curve come down to a further level in in remote areas that we can provide access to energy to people because we know a lot of these companies they spend a lot in terms of early-stage rnd and also like for for the case of China where a lot of the other countries it's heavily subsidy dependent but then for some other emerging like other smaller emerging countries the companies or the country they might not have that much resources I think that the emerging country in time consider tonight the emerging country the problem you have can be solved it's a nice a hundred percent even though we haven't really talked about yet but China achieve 100 percent electricity electrification this is really remarkable achievement anyway in the world but we did it so so this is in my views together with the parity and technology the people willing to go there to can the government willing to compete for it and there's a technology support I think it's also about the bottom Emma I'm pleased about that there is many the policy determination of course they also got to do with the economic growth we have a growth to support it without growth it's very difficult to do that the region Tonica achieve a hundred percent is because economic growth but believe me son I see also emerging country at least coming from emerging country so that's workable they're also like some sort of the economy of scale because I'm not an expert I'm just asking so first countries to the size like China or that of Miele is probably different cases so then for smaller emerging countries like how do they really tackle this kind of problems what people can look ugly for a different way sometimes there's more countries a little easier okay yeah but you get what I'm asking but you're right the last sites of excitement are scars yeah because it's always a resource available for those who emo you know yeah that's correct it's probably all about education because when you look in doing an energy transition need a lot of engineers you need to make people aware that's a contribute that pick up the topic of an energy transition that they understand why it's important it except also some limitations because a lot of volatility integrate this might have impact to the energy security and so it's all about education as well I think the scale is there where it gets tricky in some countries like yours is you mentioned a twenty percent IRR and the tenor is an issue probably it's it's the it's the policy piece that is probably inhibiting a lot of the opportunity for storage wind solar which is unfortunate but hopefully hopefully that will change but yeah the price of solar should be the same globally but it's a policy discussion and we saw that in India early days and solar as well very hard to get 20-year tenor who's the off taker how do you find a 20-year PPA in your home country that that's what the financing counterparties will look for and until that's available those with every other market unfortunately actually China I think together with is Belton Road initiative and also economic initiatives like the AAB they are actually sponsoring some of these uh projects I think alone in all these other emerging countries like for similar projects and it can be something of interest for businesses also because I mean we have probably all some programs about skills sharing and and about corporate social responsibility this is something that we consider as important and and that can help in that kind of situation so I agree with you the cost is still a solution I think already but then there is a question of raising awareness awareness towards people in the country so that you educate them but awareness towards us also so that we we go and and we develop the regulation I think is also a key because if it's too difficult too risky to invest there will be some questioning definitely hi good morning I'm a journalist from dannion in terms of the development of new energy for example electric vehicles etc i want to ask ms mr. Clarington chong Carrington because electric vehicles are very popular but there are still problems for example mileage is very limited and the power is limited etc and of course now we do have some trade-offs for example you use both motor and also electricity battery so my question for you is that in u.s. but of course in u.s. you have another name for the electric vehicle what is the status quo in terms of the development of electric vehicle cars driven by new energy and how far should we go until this whole problem is totally solved thank you [Laughter] associate so this is the journalist from from valiant from Dalian Sosa journalist from from from local media and then she's actually wondering about this electric cart and also hybrid cart sector in the US and then she's wondering about so now like there's still some challenges in terms of navigation the battery life and all those job I think different challenges and then she's wondering where we are right now and then she's asking like maybe so down the road and how many years do you think we can tackle all those respective problems specifically around evie adoption or integration of Eevee to the grid or what is she okay yeah I think the number is two million today on the Eevee production which is very very minimal at a global level I do think that as I mentioned earlier from a grid standpoint with regards to storage there's an excellent opportunity for second use so each of these Eevee auto company manufacturers will be utilizing our space as a throughput for that energy or battery that is no longer effective in an Eevee but I think the adoption the real question is going to be what's that comparison with oil because as I mentioned $100 oil Eevee's were very compelling people in America at least look at the convenience versus the cost of fossil and as more and more storage sorry charging stations become prevalent you really get an opportunity to see more and more adoption I fortunately unfortunately were in California so it seems like every other car is an Eevee so I feel like the adoptions massive which I know is not the case at a global level but I think over the next three to five years you'll see more and more of again to me it's an infrastructure discussion and from a charging standpoint that is the inhibitor that that I see from across the US and maybe more globally and Carsten I think I've read something about you have this you guys have this a theorem block shrimp our charging station for electric cars so you probably got something to say on that front yeah so I mentioned I'm doing machine economy and for us this machine economy when machines are doing transactions among each other in a fully automated way in an optimal way with no intermediary in between and this is where the blockchain comes in so what we basically did so we bought our electric vehicle charging port fleet the entire fleet across the entire country on a public blockchain in addition so we are bringing cars with a wallet on a blockchain or users with an app which means we enable cars maybe even autonomous cars to do fully automated transaction with the charging poles and this sounds like a little bit of technology its leading-edge technology it's technology that is available today so we basically blockchain fights the entire country of Germany by bringing all our charging ports to the blockchain and delivers a lot of benefits a lot of benefits in terms of bringing transaction costs down because in the end the option is taking out any transaction costs and today if you compare the systems we have expensive sa P systems you have interfaces to banks we have payment costs we have roaming providers and a lot of intermediaries and what we are basically doing by digitizing the electric vehicle charging infrastructure putting this on the blockchain driving down the costs yeah yeah we are pushing property adoption and it's not only the adoption of public charging poles it's the beauty of the technologies we have today because blockchain is a very democratic technology it's empowering an authentic sharing economy we are also enabling people to contribute so private charging poles at home the parking lots whatever they have the assets the private charging fold to contribute this to the blockchain as well that we have one transaction layer where every two parties who have never met before can do immediate transactions if you compared to today this interoperability there you have to do contracts you have to sign up as a bank a bank account if the sign of the worming provider taking out a lot of intermediaries enabling people to do immediate dive a counterparty transactions to fully automate this and that's from my perspective a powerful use case for the fourth Industrial Revolution you know to enable the Machine eventually I actually really curious about that and also the huge fluctuation recently but we have only like five minutes left so I will go to our last question of that judgment because he has been raising hand and then just a quick question so we'll wrap up the panel hi this is Jay my name is Jake and I work in Shanghai my question is really about in this hot pursuing of the new Klink technology how we set standard ad for the industrial manufacturing biases and measurement that make sure whatever we do in pursuing this new technology that won't have other consequences are I just recall you know in the heat of pursuing solar power and a lot of those solar panels were exported from China and a visiting some of those manufacturing sites and then they were some not so pretty situation so in going forward of course gas natural gas certainly is buying other pursuing of these new you mention nuclear and other alternative energies what are the measures that in your view could be taken to assure that this new pursuit that set the high standard out that whatever we are transforming into will have minimal environmental consequences one view may not be complete to solve all the problems but let's say for industry the PTA industry that be peeing we have our phase three best technology there into height one dollar so if we have a price on carbon that is a benchmark methodology now you can say that carbon cota for bp's PT a plant at one Kota using historical level to say you need to reduce 10 percent a year or whatever that is or you use a benchmark methodology to say in this industry this is the lowest carbon emission that every other people plans if you don't have that minimum level you should have a plan to reduce through certain years or I will charge you for carbon price now this kind of benchmark of methodology for carbon emission reduction scheme can be used for still power coal based power plants etc and that way we can continuously reduce carbon emission sustainably and will last for better and that's why we want to we advocate to put a price on carbon this to us what harness the power of the market force to drive the behavior and instantly but rise for cleaner energy solution adaptation so the price on carbon is a technically a very good indicator and again I bring with you on that another way to manage that is also about education I really like the idea that was mentioned a bit before and what we do also in the industry is a full lifecycle assessment of a given technology or project and I think that's really important because typically what you mentioned towards batteries that's a question so we consider that because we will do solar and battery it would be fully clean is it or is it on the mid to long term so we need to assess that which we do and actually typically on solar it's more and more recyclable so there is something to learn that in terms of environment impact assessment probably also by the regulators or at least by some legal framework so it depends on the countries but definitely communicating on that and giving access to information to businesses again a corporate social responsibility might seem a sort of gadget but it works quite well and that's what we saw with banks supporting and actually not supporting that much anymore called project so giving a view on what it means to go for solar for battery for for natural gas hydrogen is very important to allow people to understand what they are diving in for energy transition so I would add that as a as an additional point for general information and then decision from from people in citizen and policy makers great thank you very informative answers and great questions and thank you very much we're actually right on time so it's very informative and very interactive session so very great recap of where we are and I think a great outlook of opportunities and challenges down the road and thank you very much for making it very interactive and insightful session and thank you very well everyone for joining us thank you [Applause]

Channel: World Economic Forum

Views: 15,125

Rating: 4.8249998 out of 5

Keywords: world economic forum, WEF, Davos, China (Country), Dalian

Id: kIbwKREQxkA

Length: 57min 55sec (3475 seconds)

Published: Thu Jun 29 2017