At the plenary session Technology Leaders in Future Energy – Insights from the Innovators, energy experts representing a range of industry viewpoints debated two key issues confronting decision makers: the cost competitiveness of renewable energy compared with fossil fuels, and the technological innovations needed to promote wider adoption of renewable energy sources.

Andrew Beebe, COO of Suntech, the world’s largest producer of solar panels, said that cost-competitive utility-scale renewable energy was already within reach.

“Ten years ago years ago we were saying stop talking in kilowatts and start talking in megawatts and people thought we were crazy. Today there is around 35-40 gigawatts of capacity.”

Arguing that the expansion of renewable energy should dovetail with the role of traditional oil and gas, he said: “I was explaining to my son all the great things we make from oil and gas – and he said, ‘Wow! So why do we burn it?’ We need to use oil and gas for the most valuable things. [The solar industry] has cut costs by 80 percent while the cost of oil has gone up four times.”

The minor role renewable sources play in today’s global energy mix will soon change if the current rate of development in the sector is maintained, explained Ben Kortlang, a partner with Kleiner Perkins Caufield & Byers.

He said: “We wrote down 25 grand challenges for clean technology to become viable on a large scale – and many of them today have been reached. From US$10 per watt we’re now approaching one dollar per watt. [Renewable energies] will be enormous businesses in the next five years…”

The commercial potential of renewable innovation is also compelling, Kortland argued.

“Businesses willing to lean forward and be an early adopter spur on other industries and end up creating a much larger business return than initially expected.”

But the potential of renewables should not outweigh practical considerations, cautioned Kathy P. Pepper, VP Middle East and Russia at ExxonMobil.

Admitting that renewables were “growing the fastest” of all energy technologies, she said their contribution to the world’s energy needs would still amount to less than five percent.

“We need a mix of energy sources: fossil fuels, nuclear and renewable energies,” she said.

ExxonMobil is pioneering the development of biofuels from algae. “The technology is a couple of decades away but that hasn’t stopped us developing it,” Pepper said.

The success of renewable energy will pose its own technology challenges, according to Jan Mrosik, Chief Executive Officer, Siemens Infrastructure & Cities Division Smart Grid.

“We need to make sure that electricity grids are capable of accepting the renewable energy influx. The challenge is balancing generation and the load… We need virtual power plants to put energy into the grid and also smart metering to measure what’s happening on the consumption side.”

Charles Soothil, Senior Vice President Technology of Alstom, identified storage and distribution as key innovation challenges facing the renewable energy sector.

“If you had better long-distance transmission grids, you could take power from where the sun is strongest to where [the electricity] is most needed… Combining solutions is [also] important, bringing together solar and existing power generation.”

Santiago Arias, Technical Director of Torresol, a joint venture between SENER of Spain and Masdar of Abu Dhabi, said the industry was already overcoming the intermittency challenges associated with renewable energy production.

The company’s recently opened 20-megawatt Gemosolar facility in Andalusia is the world’s first solar power plant to produce electricity nearly 24 hours a day, Arias explained.

“These are not laboratory plants – the technology is there. [Gemasolar] is making electricity according to demand not environmental conditions.”

Speaking at the plenary session Business Leaders in Renewable Energy – Insights from the Executive Suite, nine senior figures from the energy sector agreed that 2012 was likely to be a challenging year – but that those challenges could be overcome by a commitment to strategic investment.

Steve Bolze, Senior VP, President and CEO of GE Power and Wind, said that only those companies that invested significantly in R&D and innovation will thrive.  “Given the times, technology investment has to be the long-term differentiator in the sector,” he said.

Bjorn Haugland, COO of Norway’s DNV, agreed, adding that his company is committed to investing 6 to 7 percent of turnover to research and development.”The next ten years is going to be a major transition period,” he said. “We need to take the next generation of renewable technology from the drawing board, where it is now, to being fully scaled up.”

Steve O’Rourke, Senior VP and Chief Strategy Officer at Sun Edison said the challenge ahead for his company  lay not with the science, but with implementation. “When it comes to photovoltaics, the science is already out of the equation,” he said. “What we now have is an engineering problem, and that’s what we must concentrate on. But, solving that engineering problem is very do-able.”

James Brown, President, Utilities Business Group at First Solar said that despite the difficulties the industry is facing, innovation will continue to make renewables more attractive for end-users. “The industry was in chaos last year,” he admitted, citing the over-supply in the PV sector, but he added that tech breakthroughs, such as the record-breaking 14.4 percent efficiency in pholtovaltaic modules  announced by First Solar at WFES earlier in the day, continue to be made, and will bring the cost of the renewable down further.

He also said that emerging markets would be a focus for the company, “We have been slightly overweight in developed markets,” he said, adding that renewable energy is increasingly attractive for emerging markets as they seek to address long-term energy challenges.

Emerging markets are also on the agenda for Shell as it renews its focus on gas production as a replacement for coal in power plants. Mark Carne, executive VP for Shell International, said the priority of Shell would be gas, the cleanest of fossil fuels. “Last year was the first year in this company’s 100-year history that we produced more gas than oil,” he told delegates.

He flagged Iraq as a key area for gas development for the company. “700 cubic feet of gas per day is flared off in Iraqi refineries,” he said. Shell aims to capture this resource to use for Iraq’s internal energy needs. “This is a very exciting project that will make a real difference to the future of Iraq,” he said.

Tulsi Tanti, Chairman and Manging Director of Suzlon, India, said that despite the extremely challenging macro and micro economic environment, “emerging markets continue to show great potential.”

He cited the fact that the costs of wind power were now at par with gas, and would catch up with coal by 2015. But he warned that education was not keeping up with growth in the sector. “Talent is simply not sufficient to support growth in the industry, so we need to make significant investments to boost that talent pool.”

Jean-Pascal Tricoire, President and CEO of Schneider Electric, outlined his company’s four-point plant for 2012 and beyond: connect the company’s 40 sites in 25 countries to drive efficiencies of scale; connect the customer base to improve efficiency in transmission, by leveling out peak demands; improve access to energy in areas of operation and, lastly, to boost education in new technologies.

Frank Wouters, Director of Masdar Power, said education remained a priority for the Abu Dhabi-based initiative, which also runs the Masdar Institute, a homegrown university dedicated to renewable and  clean technology.

He said that Masdar Power would use 2012 to build on its innovation breakthrough in 2011 – a concentrated solar power generator that harnessed the properties liquid salt to provide power generation 24 hours a day.

“This year we will have the second generation on the drawing board – we see massive potential with this,” he said. Wouters added that Masdar will also seek to open new markets. “We need to be agile,” he said. “Overall, I’m not particularly pessimistic about the future, but you have to be able to tap into markets as and when required.”

In his welcoming address, Dr Sultan Ahmed Al Jaber, the CEO of Masdar, outlined the huge advances the renewables sector has made in recent years.

“Over the last decade, the renewable energy sector has grown immensely,” he told delegates. “The production capacity for wind has increased by a factor of 10 to reach 200 gigawatts, while solar has increased by a factor of 30, to reach almost 35 gigawatts. Production and technology advances have led to a sharp decrease in the cost of production, and the market value of the renewable sector has increased from one billion dollars to 211 billion dollars.”

In his keynote address, the Chinese Premier, Wen Jiabao, praised the UAE’s vision and courage in the field of sustainable development. He outlined a four-stage process to address the world’s future energy challenges, with the priority being energy conservation and energy efficiency.

“To save energy does not mean simply to cut energy use, nor does it compromise people’s quality of life,” he told delegates. “What is needed is to rely on science and technology to increase energy efficiency, build a circular national economy featuring low input, high output and low energy consumption and emissions, and drive sustainable economic and social development with minimum energy and resource consumption.”

He also called on governments to “vigorously develop renewable energy and clean energy” as alternatives to fossil fuel, promote a “revolution of science and technology in the energy sector,” and finally, “effectively safeguard energy security”.

The Chinese Premier outlined the steps his own country is taking to address energy challenges, including shutting down coal fired generators, investing in wind, solar and hydroelectric power and increasing energy efficiencies in its traditional industries.

Recognizing the importance of the Middle East to the global energy equation, the Premier told delegates that China respects the independent choices made by the countries in the region, and supports their efforts in developing their economies based on their resources and strengths. He added that China, as a Permanent Member of the UN Security Council, would continue to work with the international community to promote peace and stability in the Middle East and North Africa.

In his own keynote address, South Korea’s Prime Minister, Kim Hwan-sik, stressed the need for active co-operation between developing and developed countries in expanding renewable energy resources.

Kim also stressed the importance of “the peaceful usage of nuclear energy” under guarantees of “safety and non-proliferation” until alternative energy resources can fully replace fossil fuels.

He pledged that South Korea would continue its efforts to become a leader in the field or renewable energy. “We will maintain close cooperation with the UAE to expand the spread of renewable energy as well as measures for green growth in the future,” Kim said.

Nassir Abdulaziz Al Nasser, President of the General Assembly of the United Nations, emphasized the importance of WFES 2012 in finding solutions to global energy issues and wished the summit every success.

UN Secretary-General Ban Ki-moon, in his keynote address, called on governments, the private sector and civil society to make greater commitments in support of his Sustainable Energy for All Initiative.  “Widespread energy poverty still condemns millions to darkness, to ill health, to missed opportunities for education,” he said, adding that one in five people still lack access to electricity.

“It is not acceptable that three billion people have to rely on wood, waste and charcoal for their energy needs,” he said.

His call to action underscores the importance of energy to sustainable development, and contributes to the global launch at WFES of 2012 as the International Year of Sustainable Energy for All.

The welcoming ceremony concluded with a presentation by Bertrand Picard, the CEO of Solar Impulse, and a pledge by UAE students to commit themselves to furthering innovation to ensure a brighter, cleaner future.

The AED12 billion solar project was announced on January 9 by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and forms a cornerstone of the Dubai Integrated Energy Strategy 2030 unveiled by the Council last year.

Developed by the Council in 2010 and announced last year, the Dubai Integrated Energy Strategy 2030 seeks to reduce the emirate of Dubai’s dependence on imported gas by achieving five per cent of power supplies from solar energy, 12 per cent from clean coal, 12 per cent from nuclear, and the remaining 71 per cent from gas.

The first phase of the Mohammed Bin Rashid Al Maktoum Solar Park producing 10 megawatts of electricity will be completed in 2013.

A detailed model of the planned Dubai solar park will be displayed throughout WFES at the Dubai Supreme Council of Energy stand. The model will be a valuable educational tool for visitors, especially the many university students attending the summit. The Mohammed Bin Rashid Al Maktoum Solar Park will help generate five per cent of Dubai’s electricity needs from solar power on completion.

The Dubai Supreme Council of Energy was formed as an independent legal entity in August 2009 under Law 19 of 2009, issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.

The new regulatory body seeks to ensure that the emirate’s growing economy will have all the power it needs in the future through providing energy at a reasonable cost and reducing any negative impact on the environment.

Now in its fifth year, the World Future Energy Summit is the world’s foremost annual meeting committed to promoting advancement of future energy technologies, including renewable energy, energy efficiency, water and waste management by engaging political, business, finance, academic and industry leaders to drive innovation, business and investment opportunities in response to the growing need for sustainable energy.

Built around the theme ‘Powering Sustainable Innovation,’ WFES 2012 will stage both a high-level conference and exhibition, with companies from all over the world promoting their latest products and services. Over 26,000 attendees, including 3,000 delegates, 650 exhibiting companies and 20 national pavilions, are participating in the Summit.

The Summit will open with a ‘Policy and Strategy Forum’, where government leaders in government and global development organisations will put the future energy challenge in perspective.

Keynote addresses for the Opening Ceremony will include speeches from HE Ban-ki Moon, Secretary-General, United Nations; HE Wen Jiabao, Premier, People’s Republic of China; HE Kim Hwang-sik, Prime Minister, South Korea, and HE Nassir Abdulaziz-Al-Nasser, President, United Nations General Assembly,.

Inspirational speeches from Bertrand Picard, Chief Executive Officer, Solar Impulse, and Aiden Dwyer, Young Innovator from the USA, together with a group of students from the United Arab Emirates pledging the younger generation’s commitment to innovation for a cleaner future, will conclude the Opening Ceremony.

Following the opening session, the Summit will break into three Ministerial Panel sessions with former heads of state, ministers and key advisors to governments on energy exchanging views on ‘Sustainable Energy for All,’ ‘Action Towards Universal Energy Access’ and ‘The Role of Government Institutions in Accelerating the Transition to a Global Clean Energy Economy.’

To ensure equitable balance on all issues associated with energy, sustainability and development, WFES has dedicated each day of the conference for a topic of global relevance.

The second day of the conference will discuss “Business and Policy” while “Technology and Innovation” will take centrestage on the third day. Investment will be the theme of the final day with financial and business leaders debating on the opportunities and innovation gaps in ‘Finance and Regulation’ relating to the business of sustainability.

For the second year in a row, a Project Village, hosting select projects in renewable energy and energy efficiency from the Middle East, India and Africa, as well as other markets will form a significant component of WFES this year.

WFES 2012 will also host the Young Future Energy Leaders (YFEL) programme, an initiative organized in partnership with Masdar Institute, to provide an opportunity for the next line of talent in sustainability technology to interact with government representatives and business leaders involved in clean energy initiatives.

A new development in 2012 is the Innovate@WFES zone, an original incubator concept dedicating free exhibition space to select small and medium-sized businesses working across the future energy value chain.

A series of high-level meetings are scheduled to take place alongside the summit, discussing key policies and programs within the renewable energy and environment sphere by industry associations, non-governmental organizations and companies.

WFES is held under the patronage of H.H General Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and hosted by Masdar.

The ministerial delegation at WFES 2012 includes representation from nearly every major region including the Gulf Cooperation Council, wider Middle East, Indian Subcontinent, Asia, Europe, North America and Africa. Additionally, nearly 150 renowned speakers representing an array of industries and specializations are now confirmed to address key issues in renewable energy including solar and wind, energy efficiency, water and waste sectors. Visitors to the Summit also include ministers and delegates attending the second session of the International Renewable Energy Agency (IRENA) on January 14-15.

Three ministerial panels will be held on Day 1 of the Summit. The first ministerial panel is based on the theme of “Sustainable Energy for All” and will be addressed by Secretary General of the United Nations, HE Ban Ki-moon; Mr. Adnan Amin, Director-General, IRENA; and Mr. Farooq Abdullah, Minister of New and Renewable Energy, Government of India, among others.

The second ministerial panel is based on the theme of “Action Towards Universal Energy Access,” and will be addressed by Daniel Johansson, Vice-Minister of Energy, Sweden; and Timu Ivanov, Head of Russian Energy Agency, among others.

The third ministerial panel is based on the theme of “The Role of Government Institutions In Accelerating Transition To A Global Clean Energy Economy,” and will be addressed by Walter Steinmann, State Secretary for Energy, Switzerland; Lord Howell of Guildford, Minster of State, United Kingdom; S Iswaran, Minister for Home Affairs & Second Minister for Trade and Industry, Singapore, among others.

Final registrations from attendees and delegates can be made at http://www.worldfutureenergysummit.com/.

The Summit has already confirmed attendees from over 120 countries, and expects the representation of nationalities to reach 140. Further demonstrating the summit’s growing global profile, attendance at WFES 2012 will be led by the GCC, the Indian Subcontinent, Africa, Europe, Asia and the United States.

The exhibition will see industry leaders in energy efficiency, solar, wind, water and waste management showcasing over 2,000 products. Key exhibitors include Siemens, Schneider Electric, ADNOC, ExxonMobil, Trina Solar, Sharp, Suntech, Yingli, GE, Fuhrlander, Total, Isofoton and Shell.

The summit also includes the Project Village, a unique initiative from WFES dedicated to upcoming renewable energy projects. Now in its second year, the platform will see the participation of around 25 projects with a combined value of more than US$4 billion.

WFES 2012 will also see the introduction of Innovate @ WFES to the WFES feature portfolio. Innovate @ WFES will act as a hub for start-up cleantech companies developing new technologies/services in the clean energy and environment industry.

Additionally, ExxonMobil will demonstrate innovation in technologies to improve environmental performance in energy use at its exhibit titled ExxonMobil Energy Outlook Forum.  The exhibit will showcase the company’s approach to accelerating gains in energy efficiency, expanding commercially viable energy sources and developing of technologies to mitigate the growth of emissions associated with energy use.

Renewable energy is increasingly entering the mainstream, and renewable sources accounted for 18 per cent of total global electricity generation in 2006, according to the International Energy Agency. By 2030, this share is set to reach 23 per cent while the European Renewable Energy Council expects a 50 per cent share by 2050. These trends point towards the fact that renewable energy is steadily evolving into a viable option in terms of cost, efficiency and emissions. With its ability to engage both industry and political leaders across the world, WFES 2012 serves as the ideal platform to discuss these opportunities and challenges of tomorrow today.

Take, for instance, the humble light bulb.

Innovations in lighting technology are having a huge impact on the ability of a variety of industries to save power and slash carbon emissions – and will be a focus at the 2012 World Future Energy Summit in Abu Dhabi starting January 16.

Light-emitting diode technology, better known as LED, is gaining wide acceptance as an energy-efficient lighting solution.

From remote controls and TV screens to traffic lights, buildings and airport runways, LED lights are present almost everywhere around us.

According to a recent Bloomberg report, most of the conventional light bulbs we use today may eventually be replaced by LED-based alternatives.

By 2013 the global LED lighting market is expected to reach US$13.7 billion, a growth of 49 percent compared with 2008. That makes LED arguably one of the fastest developing technologies in sustainability on the market.

There are various reasons why LED has taken off so quickly: it offers energy efficiency, longer life, and more convenience thanks to the smaller size of LED applications.

Advanced technology now makes it possible for a 6-watt LED to provide the same brightness as a 40-watt incandescent bulb.

And while a conventional 40-watt bulb generally lasts around 1,000 hours, LED-based solutions can last a staggering 50,000 hours, based on normal daily use.

LED lights also generate less heat, making them ideal for low-temperature environments, such as household refrigerators. Moreover, a typical building with LED lights has a carbon footprint that is up to 85 percent smaller than one with regular bulbs.

Cost remains an obstacle but with greater awareness of the potential benefits, the wider adoption of LED technology appears to be only a matter of time, especially in the Middle East where population growth and urban expansion are placing significant demands on the energy efficiency performance of existing and new infrastructure developments.

The fifth edition of the World Future Energy Summit will present a wide variety of energy efficient products and solutions, many of them brand new to the MENA market, and a host of exhibitors shining new light on the small- as well as large-scale solutions to our present and future energy challenges.

That is the message that solar power innovators and analysts are taking to the World Future Energy Summit 2012, hosted by Masdar, Abu Dhabi’s multi-faceted renewable energy company, from January 16-19.

Jim Brown, President Utility Business Group at First Solar, a leading developer of photovoltaic panels and a sponsor of WFES 2012, believes that the industry must do more to educate government and the public about the cost and other benefits of solar.

He said: “There’s still a perception that PV is an expensive technology, compared with conventional fuels, but the industry has made great progress in reducing the cost of solar and that trend is only going to continue. Also, when you take out the incentives provided to traditional energy, solar is an additional viable option today.”

Brown, who will address delegates in a business leaders forum on day two of WFES, said: “The market needs to recognize the benefits of solar power in its pricing: solar helps optimize the use of a country’s natural resources, provides for a hedge against rising fossil fuel prices in electricity generation, and can be deployed to the grid faster than other power generation technologies. And that’s on top of providing one of the most environmentally sustainable power solutions.”

Michael Liebreich, Chief Executive of Bloomberg New Energy Finance and the moderator of a special session at the summit on financing strategies, said: “Large-scale solar projects are moving closer to grid parity compared with conventional power, and rooftop solar is also becoming competitive with utility prices in a number of markets today, such as Italy, Turkey and Portugal, and will be in almost all sunny countries by 2015.”

Developing economies are rapidly catching up with their Western counterparts in terms of investment in renewable energy – not just across solar, but also in other technologies including wind.

Middle Eastern projects on show at the dedicated Project Village at WFES 2012 include a 200-megawatt wind farm under development on the Gulf of Suez; a 160-megawatt solar power plant in Morocco; and the US$400 million Shams Ma’an photovoltaic power plant underway in Jordan. A total of 25 key renewable energy projects, with a combined value of US$4 billion, are participating in the Project Village.

French oil major Total, both a WFES sponsor and exhibitor, is a partner in Shams 1 – another large-scale solar power facility being developed by Masdar in the UAE – and sees solar power contributing to both the diversification of Middle East economies and the region’s long-term energy security.

The involvement of multinational companies at WFES such as Total is also providing direct access to management expertise in large-scale energy projects, a key factor in the wider implementation of renewable energy initiatives in MENA.

“Some renewable energies are already competitive with fossil fuels, like onshore wind and certain types of solar. That’s a fact,” said Jean-Marc Otero Del Val, Senior Vice President for Power at Total Gas & Power.  “Through solar power Gulf countries can displace their domestic oil and gas consumption and supply conventional energy to other parts of the world that need it.

“In the solar industry you have a lot of small companies lacking the expertise in putting together large projects. As a major partner of Abu Dhabi in oil and gas and other energy projects, we have significant capabilities in this area.”

Abu Dhabi is leading by example with its stated aim to produce 7 percent of its electricity needs from renewable sources by 2020. Other Arab states, including Saudi Arabia, have also declared targets for domestic renewable energy capacity.

Besides raising awareness of the increasing cost competitiveness of solar power applications, the 2012 World Future Energy Summit will also promote their diversity – from utility-scale plants to smaller installations providing a power source in remote locations.

WFES 2012 has so far confirmed 43 Chinese exhibitors and presentations by senior representatives from China’s largest companies in the renewables sector. To be held from January 16-19, the summit will also stage a dedicated China pavilion.

Ambassador of China to the UAE His Excellency Gao Yusheng said: “China and the UAE already enjoy a strong and growing trade relationship valued at more than US$25 billion, and the possibilities for this relationship to expand into the renewable energy arena are very exciting indeed. The involvement of so many Chinese companies in the World Future Energy Summit reflects Abu Dhabi’s prominent role in the rapidly emerging global market in renewables and clean technology.”

Solar energy heavyweights Suntech Power, Trina Solar, JCS Solar and Yingli Solar are among the Chinese companies to have confirmed their participation in WFES 2012.

The summit will devote a special session to China’s renewables sector on January 17, while Andrew Bebe, Chief Commercial Officer of Suntech, the world’s largest solar panel maker, and Haiyun Sun, Vice President of photovoltaic leader Trina Solar, will address delegates on the theme of technology and innovation on day three.

Frederic Theux, President of WFES organizers Reed Exhibitions Middle East, said: “Having the Chinese Premier participate in the opening ceremony of the summit is a great honor and focuses attention on the significant contribution of Chinese companies to the advancement of the global renewable energy and clean technology sector.

“China aims to have 10 gigawatts of solar power and 100 gigawatts of wind power operational by 2015 – and 15 percent of its electricity coming from renewable sources by 2020. That represents an obvious business opportunity for global industry executives attending WFES and a valuable template for Middle East policymakers looking to reduce their dependence on fossil fuels.”

According to research by the UN Environment Program released earlier this year, China spent nearly US$50 billion on clean and renewable energy in 2010, around a quarter of the world’s total spending in the sector and more than any other country.

Including its capabilities in hydro-electric power, China now has the most installed capacity in renewable energy in the world, and topped the rankings for new investment in wind power and solar-powered heating last year.

WFES Exhibitions Director Naji El Haddad said: “Industry executives attending the summit will be casting a keen eye on opportunities in China as clean energy investment in the country continues to set records. At the same time, with GCC countries needing to invest an estimated US$25 billion in power generation over the next decade, according to the International Renewable Energy Agency, the potential for collaboration between Middle Eastern and Chinese companies in meeting demand for large-scale, sustainable clean energy will also be high on the agenda.”