BAKU, Azerbaijan, February 5. Oil should not be
dismissedin pursuit of SDG 7 (Sustainable Development Goal 7) is
the United Nations' goal to ensure access to affordable, reliable,
sustainable, and modern energy for all by 2030, reads the insight
by OPEC, Trend reports.


"While statistically oil constitutes a small percentage of
global electricity generation, roughly 3%, in the bid to achieve
universal access, no fuel should be dismissed. There are specific
circumstances when oil is appropriate for electricity generation.
Three points illustrate this. The first is remote settlements, or
those with no grid connection. In such cases, bringing in
generators and fuel is simpler than building new lines or
facilities. This is why island nations often generate a high
proportion of their electricity from oil. For example, the EU
country with the highest proportion of electricity generated by oil
is Cyprus," say the OPEC analysts.


The organization notes that the majority of those without
electricity live in remote areas, 84% of the 666 million live in
rural areas. These are predominantly low-income regions, often in
fragile security situations and with weak infrastructure. In such
cases, diesel-powered generators can be the right solution.


"Secondly, diesel-powered generation often has low upfront costs
and simple deployment. This avoids the need for large loans that,
for example, some well-designed solar mini grids at community scale
may require. As climate financing from developed countries has not
come close to the levels developing countries require, short-term
bridge solutions, like diesel-powered generators, may become more
necessary to improve electricity access. The third case when oil
plays a crucial role in electricity generation is in terms of
emergency backup generation. Diesel generators are known as the
‘default workhorse’ backup generators for critical infrastructure,
airports, emergency operation centres, defense facilities, data
centres, hospitals and much more. This is because of how promptly
they can start operations, their ability to function well in harsh
weather conditions and their capacity to sustain power supply for
long periods. Many authorities and emergency planners pre-stock
diesel generators as part of continuity and civil protection plans,
reads the report.


OPEC says this is not restricted to developing countries.







"One large survey has found that about 85% of backup generators
in commercial buildings and critical facilities in the US run on
diesel, and another report suggests that the share worldwide is
over 60%. An illuminating example of this is the backup generator
system in the largest hospital in Vienna, the Allgemeine
Krankenhaus. If the public grid were to fail, within just 15
seconds, a diesel-powered emergency generator would take over the
hospital’s power supply, ensuring critical, life-saving equipment
keeps functioning. This diesel emergency power plant can maintain
power for the entire hospital for 48 hours of autonomous operation
and, with shed loading, this can be extended further," notes the
organization.


OPEC analysts say that these points underscore the fact that
there are circumstances when oil powered electricity is an
appropriate option.


"Given that electricity demand is expected to increase by a
massive 85% by 2050, perhaps an expanded role of oil in meeting
this demand should be considered. In the 1990s, oil constituted
around 10% of total electricity generation globally. With
technological innovation improving its environmental credentials,
oil’s role in future electricity generation cannot be discounted.
This important role for oil in electricity generation depends on a
secure and stable supply of crude oil, and this is fundamental to
all OPEC’s actions and activities. Oil should not be dismissed, nor
should any energy source, as the SDG 7 2030 deadline for universal
access to electricity looms ever nearer," the report says.