Impulse #25: Off to the future of energy!

"As ENGIE, we want to drive forward the energy transition and make a sustainable contribution to the future of energy - for our customers and for all of us."

55 percent. Have you also picked up on this figure recently? According to the study "The energy transition in Germany: state of play 2024" published a few days ago by the think tank Agora Energiewende, this is the share of gross electricity demand in Germany in 2024 accounted for by renewable energies. This is good news at the start of the year, as the publication shows that the expansion of renewable energies in recent months has led to both a reduction in electricity costs and a reduction in CO₂ emissions - and that Germany is therefore well on the way to achieving its 80% target by 2030. However, while solar energy and wind power are developing positively, other technologies and sectors are making less progress or even regressing.

Shaping the energy system of the future

This clearly means that there is still a lot to do to make the energy transition a success. Together with my team at ENGIE, I would like to make a contribution to this. In case we don't know each other yet: My name is Katrin Fuhrmann and I would like to invite you to connect with me directly on LinkedIn! Energy has always been my profession; I have been part of the ENGIE family since 2009 and since November 2024 I have been member of the Board of Management of ENGIE Deutschland AG and Managing Director of ENGIE Energy Management Solutions GmbH (EEMS). A little background information about our organization: EEMS' goal is to support companies and municipal utilities with energy supply solutions and risk management services for decarbonization and thus contribute to the optimization of electricity costs, the supply of green electricity around the clock and the stabilization of the grid. We act as the German platform of the international trading division ENGIE Global Energy Management & Sales (GEMS), which has received several awards, including "N°1 Energy Dealer overall" and "N°1 Power Dealer overall" in the Energy Risk Commodity Rankings 2024, and is the global number one for green PPAs (Power Purchase Agreements) with customers ranging from Google to BASF and Covestro in Germany. In Germany, we see ourselves as a driver of innovation for GEMS worldwide, as our highly competent team and the well-developed German market provide the ideal basis for this. Our daily work focuses on two core topics: Firstly, we are responsible for the internal optimization of ENGIE's assets and thus contribute to value creation. Secondly, we act as an interface between energy generation and you, our customers, in order to bring green energy to the market. As an experienced player, we have mastered both the compulsory part - the supply of electricity and gas - and the optional part - innovative future topics whose demand is increasing in the context of sustainability.

Drivers on the road to climate neutrality

Much has been written in recent years about these topics of the future and the transformation of the energy sector. There is no question that increasing digitalization, the growing feed-in of renewable energies into the grid and the increasing importance of sustainability for both industry and municipalities have fundamentally changed the way energy is produced, distributed and consumed. And this process is not over; on the contrary, it will continue to gather pace. So far, the main focus of the debate has been on the expansion of renewable energies - keyword: 55% - and the expansion of the grid. There is no doubt that both are important pillars of the energy transition - but they are by no means the only ones. I am pleased to be able to provide you with some new ideas in this editorial on how we at ENGIE want to use innovative technologies and new approaches to accelerate decarbonization for our customers and shape the future of energy.

Flexibility as the key to the energy transition

In my opinion, flexibility on the energy market plays a decisive role: we need more flexibility for a cost-efficient conversion of our energy system, especially as the grid expansion is not - yet! - at the necessary speed. If we could generate significantly more power in the future compared to the current fossil fuel power plant fleet due to the expansion of renewable energies: Do we then simply want to curtail the surplus or store it sensibly? As you can see, this is actually a rhetorical question. It suggests that we need much, much more storage capacity than is currently available. The Fraunhofer Institute assumes that the demand for large battery storage systems in Germany will increase to 100 gigawatts by 2030. On the one hand, we will need this stored energy to physically stabilize the grid. On the other hand, we will need it for portfolio optimization in trading and supply. The demand for PPAs is increasing: We have long been familiar with power purchase agreements for green electricity in energy-intensive industry, but now they are also becoming more important for SMEs and suppliers. More and more customers want 100 percent green electricity, 24/7. In my view, this is the logical consequence of the energy transition in the long term. At ENGIE, we are already trying to meet this demand today: In particular, we are making the ENGIE portfolio increasingly flexible by integrating battery storage energy systems (BESS). This allows us to better integrate renewable energies into the system - and at the same time better protect ourselves against market volatility.

Into the future with green gases

In addition to flexibility, there is another topic close to my heart, namely green gases. Hydrogen and biomethane are the environmentally friendly energy of the future - and as such can play a key role in driving the transformation towards climate neutrality. Renewable, low-carbon hydrogen sources in particular are a key prerequisite for the necessary decarbonization of industry and utilities. And: both technologies, hydrogen and biomethane, are ready for use. At ENGIE, we are proud that we are already using them in numerous projects along the entire value chain. Within the Group, we are currently focusing on building a diversified hydrogen portfolio to secure the demand for hydrogen for our customers and cover the challenges of the respective industries. In addition, we signed a long-term biomethane offtake agreement with BASF in Europe in mid-2024, under which our team will supply BASF with 2.7 to 3.0 terawatt hours of biomethane at the Ludwigshafen and Antwerp sites. Finally, we are working intensively on renewable natural gas (e-NG). We see potential here and are working together with TURN2X, a spin-off of the Karlsruhe Institute of Technology (KIT). Together, we want to accelerate the decarbonization of industry and are committed to supplying e-NG to sectors - primarily to factories with high energy consumption - that are dependent on green gases for decarbonization.

Pushing ahead with decarbonization

As you can see: We have big plans at ENGIE. And we will continue on this path with a lot of energy, for you as our customers and for all of us. Because I am convinced that the successful transformation to climate neutrality can succeed. To summarize, I believe that various elements will have to be interlinked in the future: We need to generate more renewable energy and store this green energy. We also need to secure distribution and combine energy industry expertise with energy technology know-how for the precise provision of energy. Where do you see the greatest opportunities here, where perhaps the weak points? I look forward to exchanging ideas with you by email or on LinkedIn!
 

Yours

Katrin Fuhrmann
Head of Energy Management at ENGIE Deutschland AG