Socioeconomic impacts of cost optimised and climate compliant energy transitions across the world

Abstract

There are undeniable signs from all over the world demonstrating that climate change is already upon us. Numerous scientific studies have warned of dire consequences should humankind fail to keep average global temperatures from rising beyond 1.5°C. Drastic measures to eliminate greenhouse gas emissions from all economic activities across the world are essential. Major emphasis has been on the energy sector, which contributes the bulk of GHG emissions. Inevitably, energy scenarios describing future transition pathways towards low, and zero emissions energy systems are commonly proposed as mitigation strategies. However, there is growing awareness in the research community that energy transitions should be understood and analysed not only from technical and economical perspectives but also from a social perspective. This research explores the broader ramifications of a global energy transition from various dimensions: costs and externalities of energy production, democratisation of future energy systems and the role of prosumers, employment creation during energy transitions at the global, regional and national levels and the effects of air pollution during energy transitions across the world.

This research builds on fundamental techno-economic principles of energy systems and relies firmly on a cost driven rationale for determining cost optimal energy system transition pathways. Techno-economic analyses of energy transitions around the world are executed with the LUT Energy System Transition Model, while the corresponding socioeconomic aspects are expressed in terms of levelised cost of electricity, cost effective development of prosumers, job creation, and the reduction of greenhouse gas emissions along with air pollution.

Findings during the course of this original research involved novel assessments of the levelised cost of electricity encompassing externalities across G20 countries, cost optimal prosumer modelling across the world, estimates of job creation potential of various renewables, storage and power-to-X technologies including the production of green hydrogen and e-fuels during global, regional and national energy transitions. The novel research methods and insights are published in several articles and presented in this thesis, which highlight robust socioeconomic benefits of transitioning the current fossil fuels dominated global energy system towards renewables complemented by storage and flexible power-to-X solutions, resulting in near zero emissions of greenhouse gases and air pollutants. These research findings and insights have significant relevance to stakeholders across the energy landscape and present a compelling case for the rapid transformation of energy systems across the world. However, the research does have limitations and is based on energy transition pathways that are inherent with uncertainties and some socioeconomic challenges. Nonetheless, actions to enhance and accelerate the ongoing energy transition across the world must be prioritised, if not for technical feasibility or economic viability, but for the social wellbeing of human society and future generations.