Tag: sustainability

Acquisition Bridge Facility refinancing completed

Private placement

The £375 million private placement with infrastructure lenders comprises facilities with maturities between 2024 and 2029(2).

ESG Facility

The £125 million ESG facility matures in 2022. The facility includes a mechanism that adjusts the margin based on Drax’s carbon emissions against an annual benchmark, recognising Drax’s continued commitment to reducing its carbon emissions as part of its overall purpose of enabling a zero-carbon, lower cost energy future.

Together these facilities extend the Group’s debt maturity profile beyond 2027 and reduce the Group’s overall cost of debt to below 4 percent. 

Enquiries:

Drax Investor Relations:
Mark Strafford
+44 (0) 1757 612 491

Media:

Drax External Communications:
Matt Willey
+44 (0) 7711 376 087 

Website: www.drax.com

Note

(1)  Drax Corporate Limited drew £550 million under an acquisition bridge facility on 2 January 2019 used to partially fund the acquisition of ScottishPower Generation Limited for initial net consideration of £687 million. £150 million of the acquisition bridge facility was repaid on 16 May 2019.

(2)  £122.5 million in 2024, £122.5 million in 2025, £80 million in 2026 and £50 million in 2029.

What is LNG and how is it cutting global shipping emissions?

Oil tanker, Gas tanker operation at oil and gas terminal.

Shipping is widely considered the most efficient form of cargo transport. As a result, it’s the transportation of choice for around 90% of world trade. But even as the most efficient, it still accounts for roughly 3% of global carbon dioxide (CO2) emissions.

This may not sound like much, but it amounts to 1 billion tonnes of COand other greenhouse gases per year – more than the UK’s total emissions output. In fact, if shipping were a country, it would be the sixth largest producer of greenhouse gas (GHG) emissions. And unless there are drastic changes, emissions related to shipping could increase from between 50% and 250% by 2050.

As well as emitting GHGs that directly contribute towards the climate emergency, big ships powered by fossil fuels such as bunker fuel (also known as heavy fuel oil) release other emissions. These include two that can have indirect impacts – sulphur dioxide (SO2) and nitrogen oxides (NOx). Both impact air quality and can have human health and environmental impacts.

As a result, the International Maritime Organization (IMO) is introducing measures that will actively look to force shipping companies to reduce their emissions. In January 2020 it will bring in new rules that dictate all vessels will need to use fuels with a sulphur content of below 0.5%.

One approach ship owners are taking to meet these targets is to fit ‘scrubbers’– devices which wash exhausts with seawater, turning the sulphur oxides emitted from burning fossil fuel oils into harmless calcium sulphate. But these will only tackle the sulphur problem, and still mean that ships emit CO2.

Another approach is switching to cleaner energy alternatives such as biofuels, batteries or even sails, but the most promising of these based on existing technology is liquefied natural gas, or LNG.

What is LNG?

In its liquid form, natural gas can be used as a fuel to power ships, replacing heavy fuel oil, which is more typically used, emissions-heavy and cheaper. But first it needs to be turned into a liquid.

To do this, raw natural gas is purified to separate out all impurities and liquids. This leaves a mixture of mostly methane and some ethane, which is passed through giant refrigerators that cool it to -162oC, in turn shrinking its volume by 600 times.

The end product is a colourless, transparent, non-toxic liquid that’s much easier to store and transport, and can be used to power specially constructed LNG-ready ships, or by ships retrofitted to run on LNG. As well as being versatile, it has the potential to reduce sulphur oxides and nitrogen oxides by 90 to 95%, while emitting 10 to 20% less COthan heavier fuel alternatives.

The cost of operating a vessel on LNG is around half that of ultra-low sulphur marine diesel (an alternative fuel option for ships aiming to lower their sulphur output), and it’s also future-proofed in a way that other low-sulphur options are not. As emissions standards become stricter in the coming years, vessels using natural gas would still fall below any threshold.

The industry is starting to take notice. Last year 78 vessels were fitted to run on LNG, the highest annual number to date.

One company that has already embraced the switch to LNG is Estonia’s Graanul Invest. Europe’s largest wood pellet producer and a supplier to Drax Power Station, Graanul is preparing to introduce custom-built vessels that run on LNG by 2020.

The new ships will have the capacity to transport around 9,000 tonnes of compressed wood pellets and Graanul estimates that switching to LNG has the potential to lower its COemissions by 25%, to cut NOx emissions by 85%, and to almost completely eliminate SOand particulate matter pollution.  

Is LNG shipping’s only viable option?

LNG might be leading the charge towards cleaner shipping, but it’s not the only solution on the table. Another potential is using advanced sail technology to harness wind, which helps power large cargo ships. More than just an innovative way to upscale a centuries-old method of navigating the seas, it is one that could potentially be retrofitted to cargo ships and significantly reduce emissions.

Drax is currently taking part in a study with the Smart Green Shipping Alliance, Danish dry bulk cargo transporter Ultrabulk and Humphreys Yacht Design, to assess the possibility of retrofitting innovative sail technology onto one of its ships for importing biomass.

Manufacturers are also looking at battery power as a route to lowering emissions. Last year, boats using battery-fitted technology similar to that used by plug-in cars were developed for use in Norway, Belgium and the Netherlands, while Dutch company Port-Liner are currently building two giant all-electric barges – dubbed ‘Tesla ships’ – that will be powered by battery packs and can carry up to 280 containers.

Then there are projects exploring the use of ammonia (which can be produced from air and water using renewable electricity), and hydrogen fuel cell technology. In short, there are many options on the table, but few that can be implemented quickly, and at scale – two things which are needed by the industry. Judged by these criteria, LNG remains the frontrunner.

There are currently just 125 ships worldwide using LNG, but these numbers are expected to increase by between 400 and 600 by 2020. Given that the world fleet boasts more than 60,000 commercial ships, this remains a drop in the ocean, but with the right support it could be the start of a large scale move towards cleaner waterways.

What makes a mountain right for energy storage

Cruachan pylons

Electricity generation is often tied to a country’s geography, climate and geology. As an island Great Britain’s long coastline makes off-shore wind a key part of its renewable electricity, while Iceland can rely on its geothermal activity as a source of power and heat.

One of the most geographically-influenced sources of electricity is hydropower. A site needs a great enough volume of water flowing through it and the right kind of terrain to construct a dam to harness it. Even more dependent on the landscape is pumped hydro storage.

Pumped storage works by pumping water from one source up a mountain to a higher reservoir and storing it. When the water is released it rushes down the same shafts it was pumped up, spinning a turbine to generate electricity. The advantage of this is being able to store the potential energy of the water and rapidly deliver electricity to plug any gaps in generation, for example when the wind suddenly dropsor when Great Britain instantly requires a lot more power.

This specific type of electricity generation can only function in a specific type of landscape and the Scottish Highlands offers a location that ticks all the boxes.

The perfect spot for pumped storage

Cruachan Power Station, a pumped hydro facility capable of providing 440 megawatts (MW) of electricity, sits on the banks of Loch Awe in the Highlands, ready to deliver power in just 30 seconds.

“Here there is a minimum distance between the two water sources with a maximum drop,” says Gordon Pirie, Civil Engineer at Cruachan Power Station, “It is an ideal site for pumped storage.”

The challenge in constructing pumped storage is finding a location where two bodies of water are in close proximity but at severely different altitudes.

From the Lochside, the landscape rises at a dramatic angle, to reach 1,126 metres (3,694 feet) above sea level at the summit of Ben Cruachan, the highest peak in the Argyll. The crest of Cruachan Dam sits 400.8 metres (1,315 feet) up the slopes, creating a reservoir in a rocky corrie between ridges. The four  100+ MW turbines, which also act as pumps, lie a kilometre inside the mountain’s rock.

“The horizontal distance and the vertical distance between water sources is what’s called the pipe-to-length ratio,” explains Pirie. “It’s what determines whether or not the site is economically viable for pumped storage.”

The higher water is stored, the more potential energy it holds that can be converted into electricity. However, if the distance between the water sources is too great the amount of electricity consumed pumping water up the mountain becomes too great and too expensive.

The distance between the reservoir and the turbines is also reduced by Cruachan Power Station’s defining feature: the turbine hall cavern one kilometre inside the mountain…

Carving a power station out of rock

The access tunnel, cavern and the networks of passageways and chambers that make up the power station were all blasted and drilled by a workforce of 1,300 men in the late 1950s to early 1960s, affectionately known as the Tunnel Tigers.

This was dangerous work, however the rock type of the mountainside was another geographic advantage of the region. “It’s the diorite and phyllite rock, essentially granite, so it’s a hard rock, but it’s actually a softer type of granite, and that’s also why Cruachan was chosen as the location,” says Pirie.

The right landscape and geology was essential for establishing a pumped storage station at Cruachan, however, the West Highlands also offer another essential factor for hydropower: an abundance of water.

Turning water to power

The West Highlands are one of the wettest parts of Europe, with some areas seeing average annual rain fall of 3,500 millimetres (compared to 500 millimetres in some of the driest parts of the UK). This abundance of water from rainfall, as well as lochs and rivers also contributes to making Cruachan so well-suited to pumped storage.

The Cruachan reservoir can contain more than 10 million cubic metres of water. Most of this is pumped up from Loch Awe, which at 38.5 square kilometres is the third largest fresh-water loch in Scotland. Loch Awe is so big that if Cruachan reservoir was fully released into the loch it would only increase the water level by 20 centimetres.

However, the reservoir also makes use of the aqueduct system made up of 19 kilometres of tunnels and pipes that covers 23 square kilometres of the surrounding landscape, diverting rainwater and streams into the reservoir. Calculating quite how much of the reservoir’s water comes from the surrounding area is difficult but estimates put it at around a quarter.

“There are 75 concrete intakes dotted around the hills to gather water and carry it through the aqueducts to the reservoir,” says Pirie. “The smallest intake is about the size of a street drain in the corner of a field and the largest one is about the size of a three-bedroom house.”

Pumped storage stations offer the electricity system a source of extra power quickly but it takes the right combination of geographical features to make it work. Ben Cruachan just so happens to be one of the spots where the landscape makes it possible.

The different ways water powers the world

If the spectacular Roman aqueducts that still dot the landscape of Europe tell us anything, it’s that hydraulic engineering is nothing new. For thousands of years water power has been used to grind wheat, saw wood, and even tell the time.

Craigside in Northumberland

By the 19th century, water was able to go beyond performing rudimentary mechanical tasks and generate electricity directly. Cragside in Northumberland, England  became the first house powered entirely by hydroelectricity in 1878. By 1881, the whole town of Niagara Falls on the US-Canada border was being powered by the force of its eponymous river and waterfall.

Hydropower has many advantages: it’s predictable, consistent, often zero or low carbon and it can provide a range of ancillary services to power transmission systems. In Great Britain, there is 1.7 gigawatts (GW) of installed hydropower and another 2.8 GW of pumped hydro storage capacity, but it remains a small part of the overall electricity mix. In the fourth quarter of 2018, the 65% of British hydropower that is connected to the national grid accounted for less than one per cent electricity generation or 545,600 megawatt hours (MWh). By contrast, wind accounted for 14% of total generation that quarter (almost 9.5 million MWh).

While hydropower projects can be expensive to construct, operational and maintenance costs are relatively low and they can run for an extremely long time – the Lanark Hydro Electric Scheme in Scotland, which Drax recently acquired, has been producing power since 1927.

Today, hydropower installations are found at all scales, all around the world. But the term hydropower covers many different types of facility. These are some of the ways water is used to generate electricity.

Impoundment power plants

The simplest and most recognisable form of hydropower, impoundment facilities, work by creating a reservoir of trapped water behind a dam that is then selectively released, the water flows through a turbine, spinning it, which in turn activates a generator to produce electricity.

From the Hoover Dam on the Nevada-Arizona border, to the Three Gorges Dam in China – the world’s largest power station of any type, with a generating capacity of 22.5 GW – impoundment dams are some of the most iconic structures in modern engineering.

Three Gorges Dam, China

As well as having the potential to provide large quantities of baseload power, they can react extremely quickly to grid demands – just by opening or closing their floodgates as the power system operator requires.

Run-of-river generation

Rather than storing and releasing power from behind a dam, run-of-the-river generators channel off part of a river and use its natural flow to generate power.

Tongland Power Station, Galloway Hydro Scheme

Because it doesn’t require large dams or reservoirs, run-of-river can be less environmentally disruptive, as there is not always a need for large scale construction and flooding is less common.

Stonebyres Power Station, Lanark Hydro Scheme

While run-of-river facilities tend to be smaller and less flexible than impoundment, they still have significant generating potential – the Jirau hydro-electric power plant on the Madeira river in Brazil has a generating capacity of 3.7 GW.

Pumped storage 

Water can also be good for storing energy that can then be converted to electricity. Pumped hydro storage facilities operate by pumping water uphill to a reservoir when electricity is cheap or plentiful, then letting it flow back downhill through tunnels to a series of turbines that activate generators to generate electricity (in the same way as an impoundment dam) when electricity is in high demand.

Dam and reservoir, Cruachan Power Station

Their ability to both produce and absorb electricity makes them a vital part of electricity networks, playing the role of energy storage systems. In fact, a massive 97% of all global grid storage capacity is in the form of pumped hydro. Their function as giant batteries will only become more important as intermittent renewable sources like wind and solar become more prevalent in the energy mix.

Outlet and loch, Cruachan Power Station.

So too will their ability to ramp up generation very quickly. Drax’s recently acquired Cruachan Power Station in Scotland can go from zero to 100 MW or more in less than 30 seconds when generation is called upon – for example, when there is a sudden spike in demand.   

Tidal range generation

Swansea Bay

The sea is also an enormous source of potential hydropower. Tidal range generation facilities exploit the movement of water levels between and high and low tide to generate electricity. Tidal dams trap water in bays or estuaries at high tide, creating lagoons. The dam then releases the water as the rest of the tide lowers, allowing it to pass through turbines, generating power.

There are limitations – like wind and solar’s dependence on the wind blowing and the level of sunlight, operators can’t control when tides go in or out. But its vast generating potential means that it could be a valuable source of baseload power if it were to be deployed more widely.

Great Britain in particular has major opportunities for tidal generation. The Severn Estuary between England and Wales has the second highest tidal range in the world (15 metres), and a barrage built across the estuary could have a generating capacity of up to 8.6 GW – enough to meet 6% of the Britain’s total electricity demands. Some environmental groups worry about the impact such projects could have on wildlife.

Due to the level of public funding required, the government rejected that plan in 2010, in favour of pursuing its nuclear policy. A second attempt at securing a government-backed investment contract, known as a CfD, for a smaller 320 MW ‘pathfinder’ project in Swansea Bay was also rejected, in 2018. The Welsh government is however supportive of the project, which already has planning permission.

Tidal stream generation

Rather than building a dam, tidal stream generators work like underwater wind turbines. Sturdy propellers or hydrofoils (wing-like blades which oscillate up and down rather than spinning around) are positioned underwater to transform the energy of tidal streams into electricity.

While tidal streams move far slower than wind, the high density of water compared to air means that more power is generated, even at much lower velocities.

Not reliant on large physical structures, tidal stream generators are a relatively cheap form of hydropower to deploy, and make a much smaller impact on their environment than tidal barrages.

Wave generation

Unlike tidal power, which is generated by the gravitational effects of the sun and moon on the Earth’s oceans, wave power ultimately comes from the winds that whip up the ocean’s surface.

There are a number of different methods that turn waves into generation, including funnelling waves into a tube floating on the surface of the water that contains electricity-generating turbines, or by using the vertical bobbing movement of a tethered buoy to pull and spin a fixed generator.

Wave power has yet to be widely implemented, but it has significant potential. It’s estimated that the waves off the coasts of the USA could have provided 66% of the country’s electricity generation needs in 2017 alone. Effectively commercialising wave power could provide another vital tool in developing a sustainable energy landscape for the coming future.

Tidal and wave power generation are less established generation technologies than their land-based cousins but they hold huge potential in delivering more sources of reliable, zero emissions electricity for energy systems in coastal locations around the world.

Supporting our employees’ mental health

It’s a free and confidential 24-hour service which offers support on anything from financial stress and family and relationship issues to addiction, housing concerns or legal information. There is a phoneline and an app and users can be referred for six sessions of counselling per issue, per year.

Opus Energy ran 15 voluntary workshops to help our leaders understand the benefits of this service and they were attended by 113 managers.

As a result of Opus Energy’s initiative first launched in 2017 to train Mental Health First Aiders, we now have 20 employees qualified to offer a first line of response across the business. They are available to all employees should they would want to speak with a peer about any mental health issues.

A further 16 employees will train as Mental Health First Aiders in 2019.

‘3D’ to drive an energy revolution

Think of the phrase ‘3D’ and may people instantly think of video games, television or cinema, along with the special glasses you needed to watch it.

But another form of 3D is, I believe, going to be at the heart of the energy revolution which is rapidly gathering place.

The three Ds in this case are Data, Diversification and Decarbonisation. Together, they will transform the way businesses buy, use and sell their energy, help companies take control of their energy use and save money and also play a key part in our journey towards a zero carbon, lower cost energy future.

We’re already seeing some real innovations in the energy sector. Our trial of a storage battery with a customer of Opus Energy is an example, offering a farming business in Northampton the chance to sell stored energy generated by solar panels back to the grid at times of peak demand – a potential new revenue stream.

But other innovations and advances will maintain the pace of change and data will be at the core of this now the new generation of smart meters are being installed in businesses, revolutionising customer relationships with their energy suppliers.

The data from the new meters will finally give customers insight into where and when they use energy. Suppliers will have to work much more closely with customers to help them access new opportunities for cost savings, access to new markets and even new revenue streams.

An example would be a restaurant. With the data smart meters will provide, the restaurant’s supplier will be able to tell the owners how their energy use compares to the local competition and where improvements can be made.

The detail could go as far as identifying whether the restaurant’s equipment is older and less efficient, whether rivals have installed newer kit or whether other businesses are switching off their equipment earlier or using it at different, cheaper times.

Using energy during the peak weekday morning and early evening hours is often the most expensive time to do so. Data will give businesses the insight into how they can use energy more efficiently and when they use it, offering them the chance to avoid buying at peak times whenever possible and driving efficiencies.

This is why Haven Power’s trading team is now working closely with GridBeyond. The partnership allows our customers to trade the power they produce as well as optimise their operations to help balance the grid at times of peak demand. The really smart thing is that in doing so, customers are reducing their energy costs and making their operations more sustainable.

Trading desks at Haven Power’s Ipswich HQ

The way demand changes and is managed by businesses and consumers on a diversified power system will also be key. The business energy sector is already diversifying as many customers are able to generate and store their own power but the next step is for more customers to be paid to reduce their usage at peak times.

Think of a busy time for the National Grid – half time in the FA Cup Final or after the results in Strictly Come Dancing. Previously, the grid would have to pay a power station to ramp up generation to meet demand but these days, customers are paid to reduce demand for 30 minutes or so – in effect becoming a huge virtual power station.

This has happened for some time of course with larger, industrial customers but now, smaller companies can benefit from this too, thanks to the data and insight they will have from their smart meters. This empowers customers and puts them, not the energy companies, in control of the key decisions about their energy.

A close, advisory relationship between energy suppliers and their customers will become ever more important to make sure business can choose to avoid the high demand periods, and maximises use during the lower, cheaper times. In fact, I can see a time when customers will end up paying more for insight and advice than they do for the power they buy – and they’ll save money overall in doing so.

And if we get all this right, it will help drive one of the most important of the three Ds – decarbonisation.

Sustainability is increasingly becoming a primary focus for businesses and demand for renewable energy is growing because it is now cost-effective. That will help us in our drive towards a zero carbon future as more and more renewable energy comes onstream, though the UK will continue to need power generated from more flexible assets as well.

So there are huge opportunities out there to transform our energy landscape but they have to be viewed positively. The smart metering programme can be viewed as a regulatory burden or it can be seen as an opportunity. We take the positive view.

Likewise, batteries were once the preserve of massive companies only but now, as technology develops, they are becoming available for smaller firms too. The more we can innovative on a larger scale, the more the technology will work its way into smaller markets too, adding momentum to the energy revolution.

The opportunities are huge. If we get it right, so too will be the benefits to one of the biggest priorities of all – the work to decarbonise the UK and create the lower carbon future we all want.

The small devices that use lots of power and the big buildings that don’t

When Texas Instruments set about attempting to create the world’s first handheld calculator in the early sixties, it estimated that such a complicated device might require a battery as big and powerful as a car’s.

With some innovative thinking, the team were eventually able to power the device with just a five-volt battery, turning the calculator into a truly handheld device and kickstarting an electronics efficiency revolution. Continuous advances in the space mean that today’s super-powered smartphones run on more efficient, powerful – and smaller – sources than ever before.

But as more of our devices become ‘smart’ and grow in usage, their electricity demand is also increasing. On the other hand, many bigger objects that traditionally have used a lot of power are becoming more efficient and consuming less electricity than before.

The small devices eating up electricity

Think of the most electricity-intensive appliance in a home. Something constantly running like a fridge-freezer might come to mind – or something intensive that operates in short blasts like a hairdryer or kettle.

However, a surprising drain of electricity in homes is TV set-top boxes and consoles, which as recently as 2016 were reported to account for as much as half of all electricity usage by domestic electronics. This is because of how often they are left in standby mode, which means they are constantly using a small amount of electricity.

In 1999 the International Energy Agency (IEA) introduced the One Watt Initiative, which led to the electricity consumption of many devices on standby falling from around five watts to below one watt. And while this has helped reduce standby or ‘vampire power’, multiplied across the country – the electricity consumption becomes significant (in the UK there are an estimated 27 million TVs).

This is not just a TV-specific problem, however, it is symptomatic of many of the modern devices increasingly found in our homes, from smart lightbulbs to Amazon’s Alexa. These are constantly using small amounts of electricity, listening and connecting to the cloud even when not being directly used.

In 2014 the IEA estimated that by 2020 these networked-devices could result in $120 billion in wasted electricity. Adding to this is the increasing demand of the cloud and data storage, which has been estimated could account for 20% of the world’s electricity consumption by 2025.

Previous alarm bells surrounding the bitcoin network’s electricity usage highlights that it’s not just physical, connected objects that will put increasing pressure on electricity supply, but also entirely digital products.

Yet even as little things become smarter and require more electricity, some big things that have previously consumed huge amounts of electricity are becoming more efficient.

The big things becoming more efficient   

Buildings are a big source of electricity demand globally. Office blocks full of lights and blasting heating and air-conditioning units are among the main offenders, but poorly insulated homes that leak heat also have a significant impact.

Efforts are constantly being undertaken to reduce this via technological means such as companies generating their own electricity onsite from installed renewables. But cutting interstitial demand to a minimum doesn’t always have to be hi-tech.

The Bullitt Centre in Seattle is a 50,000 ft2office aiming to be ‘the greenest commercial building  in the world’. This is achieved in part through a rooftop solar array that allows the building to generate more electricity than it consumes, but is complimented by more straightforward steps such as maximising natural light and ventilation, collecting rainwater, and the use of geothermal heat pumps. On average the building consumes 230,000 kilowatt-hours (KWh)/year compared to the average of 1,077,000 KWh/year for Seattle offices.

Retrofitting can also make notable reductions to energy usage and New York art-deco icon, the Empire State Building, has been updated to consume 40% less electricity. This is largely thanks to straightforward renovations such as ensuring windows open properly and temperatures can be easily controlled.

Energy efficiency is even extending beyond the confines of the planet. The International Space station only consumes about 90 kW to run, which comes from a solar array stretching more than 2,400m2. When its solar panels are operational about 60% of their generation is used to refill batteries for when the station is in the Earth’s shadow.

The Mars Desert Research Station (MDRS) in Utah

Technology like this will be essential if humans are going to put buildings on other planets where we will not have vast electricity generation and transmission systems we enjoy on earth. And if that is the ambition, continuously striving for ever more efficient devices on a smarter power grid is only going to help progress us further.

The renewable pioneers

People love to celebrate inventors. It’s inventors that Apple’s famous 90s TV ad claimed ‘Think Different’, and in doing so set about changing the world. The renewable electricity sources we take for granted today all started with such people, who for one reason or another tried something new.

These are the stories of the people behind five sources of renewable electricity, whose inventions and ideas could help power the world towards a zero-carbon future.

The magician’s hydro house

Using rushing rivers as a source of power dates back centuries as a mechanised way of grinding grains for flour. The first reference to a watermill dates from all the way back to the third century BCE.

However, hydropower also played a big role in the early history of electricity generation – the first hydroelectric scheme first came into action in 1878, six years before the invention of the modern steam turbine.

What important device did this early source of emissions-free electricity power? A single lamp in the Northumberland home of Victorian inventor William Armstrong. This wasn’t the only feature that made the house ahead of its time.

Water pressure also helped power a hydraulic lift and a rotating spit in the kitchen, while the house also featured hot and cold running water and an early dishwasher. One contemporary visitor dubbed the house a ‘palace of a modern magician’.

The first commercial hydropower power plant, however, opened on Vulcan Street in Appleton, Wisconsin in 1882 to provide electricity to two local paper mills, as well as the mill owner H.J. Rogers’ home.

After a false start on 27 September, the Vulcan Street Plant kicked into life in earnest on 30 September, generating about 12.5 kilowatts (kW) of electricity. It was very nearly America’s first ever commercial power plant, but was beaten to the accolade by Thomas Edison’s Pearl Street Plant in New York which opened a little less than a month earlier.

The switch to silicon that made solar possible

When the International Space Station is in sunlight, about 60% the electricity its solar arrays generate is used to charge the station’s batteries. The batteries power the station when it is not in the sun.

For much of the 20thcentury solar photovoltaic power generation didn’t appear in many more places than on calculators and satellites. But now with more large-scale and roof-top arrays popping up, solar is expected to generate a significant portion of the world’s future energy.

It’s been a long journey for solar power from its origins back in 1839 when 19-year old aspiring physicist Edmond Becquerel first noticed the photovoltaic effect. The Frenchman found that shining light on an electrode submerged in a conductive solution created an electric current. He did not, however, have any explanation for why this happened.

American inventor Charles Fritts was the first to take solar seriously as a source of large-scale generation. He hoped to compete with Thomas Edison’s coal powered plants in 1883, when he made the first recognisable solar panel using the element selenium. However, they were only about 1% efficient and never deployed at scale.

It would not be until 1953, when scientists Calvin Fuller, Gerald Pearson and Daryl Chapin working at Bell Labs cracked the switch from selenium to silicon, that the modern solar panel was created.

Bell Labs unveiled the breakthrough invention to the world the following year, using it to power a small toy Ferris wheel and a radio transmitter.

Fuller, Pearson and Chapin’s solar panel was only 6% efficient, a big step forward for the time, but today panels can convert more than 40% of the sun’s light into electricity.

The wind pioneers who believed in self-generation

Offshore wind farm near Øresund Bridge between Sweden and Denmark

Like hydropower, wind has long been harnessed as a source of power, with the earliest examples of wind-powered grain mills and hydro pumps appearing in Persia as early as 500 BC.

The first electricity-generating windmill was used to power the mansion of Ohio-based inventor Charles Brush. The 60-foot (18.3 metres) wooden tower featured 144 blades and supplied about 12 kW of electricity to the house.

Charles Brush’s wind turbine charged a dozen batteries each with 34 cells.

The turbine was erected in 1888 and powered the house for two decades. Brush wasn’t just a wind power pioneer either, and in the basement of the mansion sat 12 batteries that could be recharged and act as electricity sources.

Small turbines generating between 5 kW and 25 kW were important at the turn of the 19thinto the 20thcentury in the US when they helped bring electricity to remote rural areas. However, over in Denmark, scientist and teacher Poul la Cour had his own, grander vision for wind power.

La Cour’s breakthroughs included using a regulator to maintain a steady stream of power, and discovering that a turbine with fewer blades spinning quickly is more efficient than one with many blades turning slowly.

He was also a strong advocate for what might now be recognised as decentralisation. He believed wind turbines provided an important social purpose in supplying small communities and farms with a cheap, dependable source of electricity, away from corporate influence.

In 2017, Denmark had more than 5.3 gigawatts (GW) of installed wind capacity, accounting for 44% of the country’s power generation.

The prince and the power plant

Larderello, Italy

Italian princes aren’t a regular sight in the history books of renewable energy, but at the turn of the last century, on a Tuscan hillside, Piero Ginori Conti, Prince of Trevignano, set about harnessing natural geysers to generate electricity.

In 1904 he had become head of a boric acid extraction firm founded by his wife’s great-grandfather. His plan for the business included improving the quality of products, increasing production and lowering prices. But to do this he needed a steady stream of cheap electricity.

In 1905 he harnessed the dry steam (which lacks moisture, preventing corrosion of turbine blades) from the geographically active area near Larderello in Southern Tuscany to drive a turbine and power five light bulbs. Encouraged by this, Conti expanded the operation into a prototype power plant capable of powering Larderello’s main industrial plants and residential buildings.

It evolved into the world’s first commercial geothermal power plant in 1913, supplying 250 kW of electricity to villages around the region. By the end of 1943 there was 132 megawatts (MW) of installed capacity in the area, but as the main source of electricity for central Italy’s entire rail network it was bombed heavily in World War Two.

Following reconstruction and expansion the region has grown to reach current capacity of more than 800 MW. Globally, there is now more than 83 GW of installed geothermal capacity.

The engineer who took on an oil crisis with wood 

Compressed wood pellet storage domes at Baton Rouge Transit, Drax Biomass’ port facility on the Mississippi River

While sawmills had experimented with waste products as a power sources and compressed sawdust sold as domestic fuel, it wasn’t until the energy crisis of the 1970s that the term biomass was coined and wood pellets became a serious alternative to fossil fuels.

As a response to the 1973 Yom Kippur War, the Organization of Arab Petroleum Exporting Countries (OPEC) placed oil embargoes against several nations, including the UK and US. The result was a global price increase from $3 in October 1973 to $12 in March 1974, with prices even higher in the US, where the country’s dependence on imported fossil fuels was acutely exposed.

One of the most vulnerable sectors to booms in oil prices was the aviation industry. To tackle the growing scarcity of petroleum-based fuels, Boeing looked to fuel-efficiency engineer Jerry Whitfield. His task was to find an alternative fuel for industries such as manufacturing, which were hit particularly hard by the oil shortage and subsequent recession. This would, in turn, leave more oil for planes.

Wood pellets from Morehouse BioEnergy, a Drax Biomass pellet plant in northern Louisiana, being unloaded at Baton Rouge Transit for storage and onward travel by ship to England.

Whitfield teamed up with Ken Tucker, who – inspired by pelletised animal feed – was experimenting with fuel pellets for industrial furnaces. The pelletisation approach, combined with Whitfield’s knowledge of forced-air furnace technology, opened a market beyond just industrial power sources, and Whitfield eventually left Boeing to focus on domestic heating stoves and pellet production.

One of the lasting effects of the oil crisis was a realisation in many western countries of the need to diversify electricity generation, prompting expansion of renewable sources and experiments with biomass cofiring. Since then biomass pellet technology has built on its legacy as an abundant source of low-carbon, renewable energy, with large-scale pellet production beginning in Sweden in 1992. Production has continued to grow as more countries decarbonise electricity generation and move away from fossil fuels.

Since those original pioneers first harnessed earth’s renewable sources for electricity generation, the cost of doing so has dropped dramatically and efficiency skyrocketed. The challenge now is in implementing the capacity and technology to build a safe, stable and low-carbon electricity system.