Wed. Oct 4th, 2023
    Soaring Electricity Costs and Regulations Jeopardize Energy Transition

    Repsol CEO, Josu Jon Imaz, has expressed concerns about the future of the energy transition due to high electricity costs and insufficient regulations. Imaz believes that developing and implementing clean hydrogen as an energy source is at risk because of these factors. However, he mentioned that carbon capture technology is still affordable enough to justify large-scale construction in certain areas.

    Speaking at the World Petroleum Congress in Calgary, Imaz criticized regulators for their underperformance and called for a more open-minded approach. He believes that regulators should not ban or strictly regulate certain energy products, but instead incentivize their use.

    Repsol, an oil major, has plans to invest in wind, solar, and hydropower plants with a total capacity of 20 GW by 2030. Imaz emphasized that an orderly energy transition requires access to diversified sources of energy, including hydrocarbons. He stressed the need for these energy sources to be readily available to meet both current and future demand.

    Imaz also mentioned the European Union’s complex system of rules and regulations, which he believes hinders rapid progress in the energy transition. He argued that regulations often overlap and impose restrictions or prohibitions on technologies and solutions that could accelerate emission reduction. Instead, he advocated for policies that provide clear incentives for investment and promote decarbonization solutions on a level playing field.

    Overall, Imaz emphasized that the goal should be an energy transition rather than disruption. He called for the incentivization of all technological solutions to drive the energy transition in a fair and just manner.