Worldwide, AECOM is working with clients to transform the energy market. Energy markets are responding to carbon pricing signals and new more aggressive renewable energy targets.

The speed of this transformation will be largely influenced by the new international and national regulatory frameworks and the emphasis they play in providing a stable investment environment that promotes low-carbon technologies whilst achieving a smooth transition to a clean energy economy.

Switching to low-carbon technologies will require large shifts in capital expenditure, especially in renewable energy, electricity networks and energy-efficient equipment and appliances. Galvanizing these investments will require well-targeted government policy, fiscal incentives and clear pricing signals for carbon usage.

As the transformation continues, public and private organizations are now recognizing that an early commitment to energy efficiency and renewable energy reduces business risk, brings significant competitive advantage as well as tangible benefits to the bottom line.

AECOM, born out of the United States’ oil and gas energy sector in 1990, has become a leader in sustainable energy solutions. Through the energy services it offers, the company helps the developing and developed world to use renewable sources and clean energy technologies which improve national energy security and reduce greenhouse gas emissions.

AECOM’s integrated energy services framework achieves speed-to-market by bringing together a unique combination of technologists, planners and project managers. AECOM’s services provide energy analysis and planning, environmental management, conceptual design, engineering, procurement, project management, construction management and asset management.

With over 90 years of experience in more than 95 countries around the world, AECOM has conceived, planned and built energy projects of every type and size, totaling more than 60,000 MW installed capacity, 4,473 miles (7,200 kilometers) of transmission lines and A$800 million in energy efficiency and optimization improvements.

AECOM believes that the negative environmental impacts of energy production and use can be mitigated through mainstreaming sustainable and clean energy technologies and environmental best practice to satisfy the energy needs of industrial and developing countries alike.

“There are two driving forces transforming the world energy market,” said Jon Lorentz, the Managing Director for the energy business of Australia, New Zealand and Asia. “The rapid growth in energy demand resulting in energy price and supply volatility and the worldwide initiative to reduce greenhouse gas emissions from conventional energy systems using fossil fuels. Both these driving forces push the world towards energy efficiency and renewable energy. These energy solutions are insulated from the volatility of the international energy market and play a significant role in reducing the environmental impacts of greenhouse gas emissions.”

ENERGY EFFICIENCY: THE FIRST STEP

Energy efficiency and carbon management are foremost in the minds of business leaders as AECOM heads into FY11.

“Rising demand is straining all conventional energy supply markets, but bringing new power generation capacity to market is increasingly tough,” said Lorentz. “It is far easier to address the issue initially by pursuing energy efficiency in existing systems. In fact, energy efficiency is now described as the first fuel, because it is the first measure to be undertaken in the pursuit of energy security and a low-carbon future. Above all, it is cost-effective and it buys us time to refine and deploy new low-carbon supply options.”

On the demand side, public and private organizations are now recognizing that an early commitment to energy efficiency and carbon management brings significant competitive advantage as well as tangible benefits to the bottom line.

“As an organization, AECOM is very involved in every aspect of renewable energy for energy use in the residential and industrial markets,” said Lorentz. “This has given us a tremendous opportunity to help our clients reduce greenhouse gas emissions and their future exposure to a carbon tax.”

POWERING A SUSTAINABLE FUTURE

The electricity industry provides the foundation for economic and social development in the developed as well as the developing world. It also provides the single most important opportunity for AECOM to reduce global GHG emissions.

The power generation sector is expected to contribute over half of the projected increase in world energy CO2 emissions by 2030. This growth in GHG emissions is driven by the rapid growth in demand for electricity and the use of fossil fuels – particularly coal – in developing countries like China.

To achieve a sustainable energy future, the company must look for new ways to de-carbonize the electricity supply mix, using low carbon sources such as nuclear and renewables. While there is considerable interest in solar, wind and biomass, there are two renewable energy technologies to watch in the near to medium term.

Geothermal is receiving increasing attention as a source of base load renewable energy generation. As energy prices increase, the focus is turning to less competitive low temperature and deep hot dry rock (HDR) geothermal resources.

AECOM is in the forefront of these developments and is a leader in applying binary cycle technology to low temperature geothermal resources for the generation of electricity.

Hydropower currently provides over 87% of the world’s renewable electricity generation. The International Energy Agency estimates future development at over 20,000 MW per year (mostly in developing countries – China, India, Vietnam and South America). The environmental and social impacts are a major constraint on development and have a large influence over the selection of hydro schemes and power plant concepts.

The latest trends are towards low impact run of the river schemes, which have the least social and environmental impact. This is demonstrated on the La Sarcelle hydropower project where AECOM is engineering a project using one of the largest low head bulb turbines.

ELECTRICITY NETWORKS OF THE FUTURE

Probably the greatest challenge AECOM faces as the company moves to a new energy future is the development of intelligent electricity networks (SmartGrids). They will be crucial in providing the large scale deployment of electric vehicles and the connection and integration of small scale generators into city electricity networks.

SmartGrids will also provide the network intelligence and the pricing signals consumers need to make decision in optimizing the use of energy.

SmartGrid technologies are in the early stage of development, and AECOM specialists are working with research associations to simulate the impacts of large-scale connection of distribution generation into electricity networks to increase the overall efficiency of electricity and heat generation.

AECOM is responding to the challenges of a low carbon future by pushing the boundaries of renewable energy technologies. In geothermal, AECOM is a leader in the application of binary cycle technology to low temperature geothermal resources for the generation of electricity. In hydropower, AECOM is engineering one of the largest low head bulb turbines projects in the world. In wind, AECOM uses high-resolution airborne aerial mapping (LIBAR) and Geographic Information Systems (GIS) to identify and design wind farms. AECOM also helping clients examine the role of energy storage to reduce the fluctuating dispatch of electricity from wind power projects. In Indonesia, AECOM is developing remote area electricity systems for rural communities using small-scale hydro and geothermal power generators and solar PV.

“As an organization, our commitment to sustainability is day to day,” said Lorentz. “When we talk with clients, we try to find more ways to make projects more sustainable in design and the way projects are used as assets in their lifespan.”