Onshore power in the future Nordic energy system – new opportunities and cooperation

It seems the world is finally realizing that it is time for change. The ways of today are simply not sustainable – IPCC and 4^th IMO GHG Study refer, and all industries must contribute towards reaching the climate goals set in the Paris Agreement. The maritime industry is no different, as the emissions from diesel generators are toxic to the environment. The maritime industry must intensify the actions and investments in finding a sustainable low carbon alternative to power ships in the future, with the goal of eliminating the global CO2 and greenhouse gas emissions.

In terms of energy efficiency there is no better power source than direct supply with electrical energy. This is also why we experience a global trend of electrification of all industries and transportation. But the maritime industry is different, as ships inherently cannot be plugged in to the power grid when on open water. Therefore, parallel technologies must be applied to make shipping carbon neutral.

Different future fuels or alternative power sources are currently being researched and it could be that the best solution is a mix of different technologies. A fair hypothesis would be that some form of E-fuel will be needed for long distance shipping, full electric solutions will be the optimal solution for short sea shipping and shore power supply will become common for all ships in port. But for anyone of these technologies to become a valid power source for ships, large quantities of raw electrical energy are required. Therefore, the decarbonization of the maritime industry is closely linked to the decarbonization of all power production.

The Paris agreement focuses explicitly on production of sustainable energy and emphasizes that we must accelerate investments in renewable energy technologies such as wind and solar. But making a global shift to low carbon intensity power usage, can only be achieved through a combination of clean energy generation, modern transmission technologies and power grid interconnectivity.

Therefore, ports, grid operators and power companies, must work together to ensure the electrical infrastructure that is needed for the future. And as Shore Power technology is a mature technology with an instant impact, the expansion of shore power facilities in all ports is an obvious place to start.

A good example of successful implementation of OPS in future energy system, can be found in looking at Port of Bergen. Here, the port and the local utility company partnered in a joint ‘shore power company’ to offer electricity to ships. This model now serves as an example to follow, with plenty of benefits. The environmental benefits are obvious, but added benefits are a strengthened power grid, a new source of income to the port, more power distribution to the utility company and better rates for the ship owners.

The case of Bergen underlines a few key points for highly successful implementations of OPS; firstly, the need for open dialogue with other stakeholders, whether they are ship owners, the city, utilities etc. Secondly, the opportunity to look at it more from an investment/business case perspective rather than just as pure cost. Each city and each port represent a new and unique case and when looking at shore power infrastructure, this needs to be accounted for. Sometimes the driver will be heavily focused on the green environmental benefits, but other times it is simple very good business.

The case of Bergen also underlines the importance of utilities and the grid side of the equation. In many ports, the biggest hinderance to shore power infrastructure is the lack of grid capacity. The grid is simply the bottleneck in supplying sufficient OPS, for large ships whose high-power demand risks putting too much pressure on the grid system. The case of Southampton is a great example as grid updates were needed to install OPS. For OPS to play a key role in the future energy system it is therefore crucial to get the utility companies involved.

Collaboration with the local city and utility as well as all other stakeholders is key, as OPS is very hard to implement alone. Port networks are also great, especially international ones, for knowledge sharing and lessons learned. When implementing OPS, there are always many opinions to evaluate and determine. In this context of stakeholders, the voice of the people or the city should also not be underestimated. Sometimes they have been the first to demand action or can even shift the power structure. Aarhus is a good example as the decision for OPS was made when the city stepped into the discussion.

Another power structure that is crucial for OPS is that sometimes the initial request comes from ship owners. Vital to the discussion and success of OPS, they must be closely engaged; especially if the situation is vice versa where the port comes to them and tries to convince them of using OPS. In many cases, that can be tough, also because we should remember to take the on-vessel investments into consideration.

Another aspect that supports OPS’ future role in the energy system is the increasing political support for the technology – which often reflects the availability of funding available for OPS projects specifically. This support is crucial for the scaling and rollout of OPS as ports simply can’t cover the investments themselves. Increasing regulations and incentive programs are also a clear sign of the political backing. This must continue and increase if OPS is going to continue to play a significant role. Green technologies like OPS must be prioritized from top to bottom. The European Commission’s “Fit for 55” report states it clearly that OPS will be demanded by 2030, putting a hard deadline for rolling out OPS across Europe.

However, such political strategies are needed at all levels for ports and ship owners to know what to invest in and how to implement it. Combined with the needed level of collaboration and planning, almost none of the main issues with implementing OPS are on the technical side. The technology is there and ready to be installed.