ABB – New ABB and BCG report highlights growing role of direct current technologies in future power systems

EMR Analysis

More information on ABB: See full profile on EMR Executive Services

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More information on the Report “The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture” by ABB and BCG: https://www.abb.com/global/en/company/innovation/hybrid-ac-dc-power 

 

 

 

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EMR Additional Notes:

• AC (Alternating Current) & DC (Direct Current) & UC (Universal Current):
  • Direct Current (DC):
    • Electric current that is unidirectional, meaning the flow of charge is always in the same direction. Unlike alternating current, the direction does not change. It is used in many household electronics and in all battery-powered devices.
    • Direct current has many uses, from charging batteries to supplying power for electronic systems, motors, and industrial processes. Very large quantities of DC power are used in applications such as aluminum smelting and other electrochemical processes.
    • DC is more efficient for long-distance transmission at very high voltages (HVDC) because it avoids reactive power losses and reduces skin effect and capacitive losses, especially over long distances and submarine cables.
  • Alternating Current (AC): 
    • Alternating current is an electric current in which the direction of flow periodically reverses (typically 50 or 60 Hz).
    • AC is used in power grids and homes because it can be easily transformed to higher or lower voltages using transformers. This allows efficient transmission at high voltage over long distances and safe distribution at low voltage for end users.
    • DC can also be converted to different voltage levels, but it requires power electronics (converters), not simple transformers.
  • Universal Current (UC): .
    • Universal Current (UC) means a device can operate with either AC or DC input.
    • For example, a 24 V UC input can accept either 24 V AC or 24 V DC.
    • UC is not a type of current, but a device input specification indicating compatibility with both AC and DC supplies.

 

 

 

• AI – Artificial Intelligence:
  • Artificial Intelligence (AI) is the broad field of computer science focused on building systems that perform tasks requiring human-like intelligence, such as learning, reasoning, perception, and decision-making.
  • AI systems typically:
    • ingest large datasets
    • identify patterns
    • make predictions or decisions
  • AI is an umbrella term that includes machine learning, deep learning, and other approaches (rule-based systems, optimization, etc.), not just Machine Learning (ML).
  • AI programming focuses on three cognitive skills: learning, reasoning and self-correction.
  • The 4 types of artificial intelligence?
    • Type 1: Reactive machines. These AI systems have no memory and are task specific. An example is Deep Blue, the IBM chess program that beat Garry Kasparov in the 1990s. Deep Blue can identify pieces on the chessboard and make predictions, but because it has no memory, it cannot use past experiences to inform future ones.
    • Type 2: Limited memory. Most modern AI systems. These AI systems have memory, so they can use past experiences to inform future decisions. Some of the decision-making functions in self-driving cars are designed this way.
    • Type 3: Theory of mind. Research stage. Theory of mind is a psychology term. When applied to AI, it means that the system would have the social intelligence to understand emotions. This type of AI will be able to infer human intentions and predict behavior, a necessary skill for AI systems to become integral members of human teams.
    • Type 4: Self-awareness. Does not yet exist. In this category, AI systems have a sense of self, which gives them consciousness. Machines with self-awareness understand their own current state.
  • Machine Learning (ML):
    • Subset of AI that enables systems to learn from data without explicit programming.
    • ML uses historical data to detect patterns and make predictions.
    • ML is the dominant paradigm in modern AI, replacing most rule-based systems.
    • ML allows software applications to become more accurate at predicting outcomes without being explicitly programmed to do so.
    • Recommendation engines are a common use case for ML. Other uses include fraud detection, spam filtering, business process automation (BPA) and predictive maintenance.
    • Classical ML is often categorized by how an algorithm learns to become more accurate in its predictions. There are four basic approaches:
      • supervised learning,
      • unsupervised learning,
      • semi-supervised learning and
      • reinforcement learning.
  • Deep Learning (DL):
    • Subset of ML using multi-layered neural networks to learn complex representations.
    • DL is not always “more sophisticated” in all contexts—it is more powerful for unstructured data (images, text, audio), but classical ML can outperform it in structured/tabular data.
    • DL makes use of layers of information processing, each gradually learning more and more complex representations of data. The early layers may learn about colors, the next ones about shapes, the following about combinations of those shapes, and finally actual objects. DL demonstrated a breakthrough in object recognition. Face recognition is a good example.
    • DL is currently the most sophisticated AI architecture we have developed.
  • Generative AI (GenAI):
    • AI systems that generate new content (text, images, code, audio, etc.) based on learned patterns.
    • GenAI is typically powered by large deep learning models (e.g., transformers), not a separate paradigm.
    • Generative AI technology generates outputs based on some kind of input – often a prompt supplied by a person. Some GenAI tools work in one medium, such as turning text inputs into text outputs, for example. With the public release of ChatGPT in late November 2022, the world at large was introduced to an AI app capable of creating text that sounded more authentic and less artificial than any previous generation of computer-crafted text.
  • Small Language Models (SLM) and Large Language Models (LLM):
    • Small Language Models (SLMs) are artificial intelligence (AI) models capable of processing, understanding and generating natural language content. As their name implies, SLMs are smaller in scale and scope than large language models (LLMs).
    • LLM means Large Language Models — a type of machine learning/deep learning model that can perform a variety of natural language processing (NLP) and analysis tasks, including translating, classifying, and generating text; answering questions in a conversational manner; and identifying data patterns.
    • For example, virtual assistants like Siri, Alexa, or Google Assistant use LLMs to process natural language queries and provide useful information or execute tasks such as setting reminders or controlling smart home devices.
  • Computer Vision (CV) / Vision AI & Machine Vision (MV):
    • Broad AI field for interpreting visual data.
    • Field of AI that enables computers to interpret and act on visual data (images, videos). It works by using deep learning models trained on large datasets to recognize patterns, objects, and context.
    • The most well-known case of this today is Google’s Translate, which can take an image of anything — from menus to signboards — and convert it into text that the program then translates into the user’s native language.
    • Machine Vision (MV) :
      • lndustrial application of Computer Vision. MV is a subset of CV, not a parallel category.
      • Specific application for industrial settings, relying on cameras to analyze tasks in manufacturing, quality control, and worker safety. The key difference is that CV is a broader field for extracting information from various visual inputs, while MV is more focused on specific industrial tasks.
      • Machine Vision is the ability of a computer to see; it employs one or more video cameras, analog-to-digital conversion and digital signal processing. The resulting data goes to a computer or robot controller. Machine Vision is similar in complexity to Voice Recognition.
  • Multimodal Intelligence and Agents:
    • Subset of artificial intelligence that integrates multiple data types (text, image, audio, video).
    • Multimodal capabilities allows AI to interact with users in a more natural and intuitive way. It can see, hear and speak, which means that users can provide input and receive responses in a variety of ways.
    • An AI agent is a computational entity designed to act independently. It performs specific tasks autonomously by making decisions based on its environment, inputs, and a predefined goal. What separates an AI agent from an AI model is the ability to act. There are many different kinds of agents such as reactive agents and proactive agents. Agents can also act in fixed and dynamic environments. Additionally, more sophisticated applications of agents involve utilizing agents to handle data in various formats, known as multimodal agents and deploying multiple agents to tackle complex problems.
    • The defining feature of an agent is not just decision-making, but the ability to take actions toward a goal in an environment.
  • Agentic AI:
    • Agentic AI is a system that can accomplish a specific goal with limited supervision. It consists of AI agents—machine learning models that mimic human decision-making to solve problems in real time. In a multi-agent system, each agent performs a specific subtask required to reach the goal and their efforts are coordinated through AI orchestration.
    • Unlike traditional AI models, which operate within predefined constraints and require human intervention, agentic AI exhibits autonomy, goal-driven behavior and adaptability. The term “agentic” refers to these models’ agency, or, their capacity to act independently and purposefully.
    • Agentic AI builds on generative AI (gen AI) techniques by using large language models (LLMs) to function in dynamic environments. While generative models focus on creating content based on learned patterns, agentic AI extends this capability by applying generative outputs toward specific goals.
  • Edge AI Technology:
    • AI executed locally on devices (IoT, sensors, cameras) instead of centralized cloud.
    • Edge AI refers to the deployment of AI algorithms and AI models directly on local edge devices such as sensors or Internet of Things (IoT) devices, which enables real-time data processing and analysis without constant reliance on cloud infrastructure.
    • Simply stated, edge AI, or “AI on the edge“, refers to the combination of edge computing and artificial intelligence to execute machine learning tasks directly on interconnected edge devices. Edge computing allows for data to be stored close to the device location, and AI algorithms enable the data to be processed right on the network edge, with or without an internet connection. This facilitates the processing of data within milliseconds, providing real-time feedback.
    • Self-driving cars, wearable devices, security cameras, and smart home appliances are among the technologies that leverage edge AI capabilities to promptly deliver users with real-time information when it is most essential.
  • High-Density AI: 
    • High-density AI refers to the concentration of AI computing power and storage within a compact physical space, often found in specialized data centers. It is an infrastructure trend (AI data centers / GPU clusters), not a distinct AI category. This approach allows for increased computational capacity, faster training times, and the ability to handle complex simulations that would be impossible with traditional infrastructure.
  • Explainable AI (XAI) and Human-Centered Explainable AI (HCXAI): 
    • Explainable AI (XAI) refers to methods for making AI model decisions understandable to humans, focusing on how the AI works, whereas Human-Centered Explainable AI (HCXAI) goes further by contextualizing those explanations to a user’s specific task and understanding needs.
    • While XAI aims for technical transparency of the model, HCXAI emphasizes the human context, emphasizing user relevance, and the broader implications of explanations, including fairness, trust, and ethical considerations.
  • Physical AI & Embodied AI: 
    • Physical AI refers to a branch of AI that enables machines to perceive, understand, and interact with the physical world by directly processing data from a variety of sensors and actuators.
    • Embodied AI, as a subset, focuses on the sensory, decision-making, and interaction capabilities that enable these systems to function effectively in dynamic and unpredictable environments via sensors and actuators.
  • Federated Learning and Reinforcement Learning:
    • Federated Learning is a machine-learning technique where data stays where it is, and only the learned model updates are shared. “Training AI without sharing your data”.
    • Reinforcement Learning is a type of AI where an agent learns by interacting with an environment and receiving rewards or penalties. “Learning by trial and error”
    • Federated Learning (FL) and Reinforcement Learning (RL) can be combined into a field called Federated Reinforcement Learning (FRL), where multiple agents learn collaboratively without sharing their raw data. In this approach, each agent trains its own RL policy locally and shares model updates, like parameters or gradients, with a central server. The server aggregates these updates to create a more robust, global model. FRL is used in applications like optimizing resource management in communication networks and enhancing the performance of autonomous systems by learning from diverse, distributed experiences while protecting privacy (still niche and mostly experimental.)
  • AI Factories:
    • AI Factories are specialized, high-performance computing centers designed to train, tune, and deploy artificial intelligence models at scale.
    • Companies and organizations involved in AI factory infrastructure and development include Nvidia, AWS, Microsoft, OpenAI, CoreWeave, Lambda, Nebius, Supermicro, and HPE. The European Union is also establishing AI Factories through its EuroHPC Joint Undertaking to foster regional innovation.
    • “AI factory” is a conceptual term (not standardized), referring to industrial-scale AI production systems.

 

 

 

• Power Electronics:
  • Power electronics is a specialized branch of electrical engineering focused on the conversion, control, and conditioning of electrical energy using power semiconductor devices (such as diodes, thyristors, MOSFETs, and IGBTs) and control systems.
  • It enables precise control of:
    • voltage
    • current
    • frequency
    • waveform
  • to efficiently supply power across applications ranging from consumer electronics to industrial drives, renewable energy systems, electric vehicles (EVs), battery energy storage systems (BESS), and power grids.
  • Typical power electronic equipment includes rectifiers, inverters, DC-DC converters, AC-AC converters, variable frequency drives (VFDs), UPS systems, battery chargers, and renewable energy inverters.
• Power Conversion:
  • In electrical engineering, power conversion is the process of converting electric energy from one form to another. A power converter is an electrical device for converting electrical energy between alternating current (AC) and direct current (DC). It can also change the voltage, frequency, or level of the current or voltage.
  • The four primary categories of power conversion are:
    • AC to DC (Rectifier)
    • DC to AC (Inverter)
    • DC to DC (DC-DC Converter)
    • AC to AC (Voltage or Frequency Converter)
  • Power conversion is one of the core functions of power electronics and enables electrical systems with different voltage levels, current types, or frequencies to operate together efficiently.

 

 

 

• Volts of Direct Current (VDC):
  • VDC stands for Volts of Direct Current, representing electric potential in a system where current flows consistently in one direction, from positive to negative. Unlike VAC (Alternating Current), VDC is used by batteries, solar panels, and electronics, providing stable, non-reversing power, typically for low-voltage devices, electronics, and industrial sensors.
• VDC Main Distribution Bus:
  • A VDC (Volts Direct Current) main distribution bus is a central, heavy-duty electrical conductor—typically a copper or aluminum bar—used to collect and distribute direct current power from sources (like batteries, solar panels, or rectifiers) to various loads in a high-power system. It acts as the central backbone of a DC power architecture, commonly operating at higher voltages (e.g., 380V, 400V, 800V, or 1000V) in modern industrial, data center, and marine applications to increase efficiency and reduce copper losses.

 

 

 

• Grid, Microgrids, DERs and DERM’s:
  • Grid / Power Grid:
    • The power grid is a network for delivering electricity to consumers. The power grid includes power generation facilities, substations, transmission lines and towers, distribution networks, protection and control equipment, and associated communication and monitoring infrastructure.
      • The grid constantly balances the supply and demand for electricity that powers everything from industry to household appliances.
      • Electric grids perform three major functions: power generation, transmission, and distribution.
  • Microgrid:
    • A microgrid is a group of interconnected loads and distributed energy resources (DERs) within clearly defined electrical boundaries that acts as a single controllable entity with respect to the main grid and can operate either connected to the main grid or, when appropriately designed, independently in an islanded mode.
      • Microgrids can integrate local generation, energy storage, controllable loads, and other DERs to improve resilience, flexibility, efficiency, or local energy management.
  • Smart Grid:
    • A smart grid is an electrical grid enhanced with digital communications, sensing, automation, control, and data/analytics technologies across generation, transmission, distribution, and/or customer-side systems to improve the monitoring, operation, efficiency, reliability, resilience, and flexibility of the power system.
  • Distributed Energy Resources (DERs): 
    • Distributed energy resources (DERs) are relatively small-scale energy resources, located at or near the distribution system or customer premises, that can supply, store, or modify electricity consumption and are interconnected to the electric grid. They are often located close to load centers and can be used individually or in aggregate to provide value to the grid.
      • Common examples of DERs include rooftop solar PV units, small wind turbines, natural gas turbines, microturbines, biomass generators, fuel cells, tri-generation units, battery storage, some forms of electric vehicles (EVs) and controllable EV charging, and demand response applications.
  • Distributed Energy Resources Management Systems (DERMS):
    • Distributed Energy Resources Management Systems (DERMS) are software platforms that help utilities, distribution system operators (DSOs), aggregators, and other energy-sector organizations monitor, forecast, coordinate, optimize, and, where supported, control distributed energy resources (DERs).
      • DERMS can be used to aggregate and coordinate large numbers of DERs and flexible loads for grid services, including voltage management, congestion management, balancing, flexibility services, resilience, and participation in demand-response or other electricity markets. DERMS can be defined in many ways, depending on the use case and underlying energy asset and the architecture of the power system.

 

 

 

• Switchgear (Core Concept):
  • Broad term that describes a wide variety of switching devices that all fulfill a common need: controlling, protecting, and isolating electrical power systems.
    It also includes devices for protection, switching, isolation, and in some cases measurement (metering), although metering is typically handled by dedicated instruments.
  • Switchgear contains fuses, switches, and other conductive and protective components. However, circuit breakers are typically the primary and most critical component in modern switchgear.
  • It performs the function of controlling and protecting (not “metering” as a primary function) the flow of electrical power, as well as interrupting fault currents to prevent damage to equipment and ensure safety.
  • There are three types of switchgear, namely:
    • LV (Low Voltage)
    • MV (Medium Voltage)
    • HV (High Voltage)

 

• Fuses (Core Protection Devices):
  • A fuse is a single-use overcurrent protection device that interrupts a circuit by melting a calibrated conductor when excessive current flows.
  • Fuses are widely used from low voltage (LV) up to medium voltage (MV) and, more rarely, high voltage (HV) applications.
  • It is an electrical safety device whose essential component is a metal wire or strip that melts when too much current flows, thereby interrupting the current.
• Circuit Breakers (Core Protection Devices):
  • A circuit breaker is a mechanical electrical switch designed to protect an electrical circuit from damage caused by overcurrent, overload, or short circuit.
  • Its basic function is to interrupt current flow automatically upon fault detection (either via internal thermal/magnetic mechanisms in LV systems or external protection relays in MV/HV systems).
  • Unlike fuses, circuit breakers are resettable and reusable.
• Disconnectors (Core Protection Devices): 
  • A disconnector (also known as Isolator) is a mechanical switching device operated manually (or motorized) and only under no-load conditions to provide safe isolation.
  • They are used to isolate equipment for maintenance and ensure visible and verifiable separation from live circuits (critical for safety procedures).
• Contactors (Core Protection Devices): 
  • A contactor is a remotely operated electrical switch used for frequent switching of circuits, especially motors.
  • It is a special type of relay designed for higher current applications.
  • Contactors cannot interrupt fault currents and therefore must always be used in combination with protective devices such as fuses or circuit breakers.

 

• Fuse Switch-Disconnectors (Hybrid – Combined Devices):
  • A fuse switch-disconnector combines both protection and safe manual isolation in one device; it provides overcurrent protection like a fuse, and it also allows for manual disconnection of the circuit for isolation purposes.
• RCCB  – Residual Current Circuit Breakers (Hybrid – Combined Devices): 
  • Protects against earth leakage (residual current) and electric shock.
  • It does not protect against overload or short circuit and must therefore be used together with an MCB or fuse.
• RCD  – Residual Current Devices (Hybrid – Combined Devices): 
  • General term for devices that disconnect circuits upon detecting leakage current.
  • Trips typically within 10–50 ms, protecting against electrocution and fire.
• RCBO – Residual Current Breakers with Over-Current (Hybrid – Combined Devices): 
  • An RCBO protects against overcurrent + earth leakage in one device. It is a combination of:
    • MCB (overcurrent protection)
    • RCD (earth leakage protection)

 

• Circuit Breakers (By Application / Technology):
  • MCB (Miniature Circuit Breakers): 
    • Used in domestic and light commercial installations.
      • Rated current: typically up to 100–125 A
      • Protects against overload and short circuit
    • Widely replacing fuses in LV installations due to reset capability and ease of use
  • MCCB (Molded Case Circuit Breakers): 
    • Used in industrial and commercial systems.
      • Rated current: up to ~2500 A
      • Higher breaking capacity than MCB
    • Often includes adjustable trip settings for more precise protection
  • ACB (Air Circuit Breakers): 
    • Uses air as the arc insulating / quenching medium.
    • Used in low voltage but high current applications (e.g., main incomers in buildings)
  • VCB (Vacuum Circuit Breakers): 
    • Uses vacuum for arc quenching.
    • Common in medium voltage systems
  • OCB (Oil Circuit Breakers): 
    • Uses insulating oil for arc quenching.
    • Now largely obsolete / being phased out due to fire risk, maintenance complexity, and environmental concerns
  • Solid-State Circuit Breakers (also known as Semiconductor Circuit Breaker):
    • Electronic devices using semiconductors to interrupt current extremely fast (microseconds).
      • No moving parts
      • Used in DC systems, data centers, EVs
    • Key advantage: ultra-fast fault interruption compared to mechanical breakers
  • Hybrid Circuit Breakers:
    • Combine mechanical + solid-state switching for:
      • fast response
      • low losses
  • PTCB eFuse Circuit Breaker:
    • An Electronic eFuse Circuit Breaker (PTCB) is an electronic micro fuse for DIN rail protecting very low currents (typically below 1A in control and electronics circuits) to facilitate clear fault detection and precise fault localization.
    • Response times are shorter compared to conventional fuse protection and the exact current value can be adjusted at any time

 

• Specialized Fuses:
  • Reducer Fuses:
    • A reducer fuse is not a fuse itself, but rather an adapter that allows a physically smaller fuse to be installed into a larger fuse holder. A fuse reducer typically consists of a non-conductive, insulating body that encases the smaller fuse.
  • Electrified Vehicle (EV) Fuses:
    • EV fuses are specialized safety devices designed to protect the high-voltage DC systems in electric vehicles.
    • Specialized for:
      • High-voltage DC (500–1000V+)
      • High fault currents
      • Harsh environments (temperature, vibration)
    • Also designed to safely interrupt DC arcs, which are more difficult to extinguish than AC arcs

 

• Switchgear Technologies:
  • AIS (Air Insulated Switchgears):
    • Uses air as insulation.
    • Common in MV and HV outdoor substations due to simplicity and lower cost
    • AIS controls, protects and isolates electrical equipment in power transmission and distribution systems.
  • GIS (Gas Insulated Switchgears): 
    • Uses SF₆ gas (or alternatives) for insulation.
    • It is a compact metal encapsulated switchgear consisting of high-voltage components such as circuit-breakers and disconnectors, which can be safely operated in space-constrained environments (e.g., cities).
  • Pad-Mount Switchgears:
    • Outdoor, ground-mounted distribution switchgear used in utility and commercial networks
    • The pad-mount switchgear is made from the same modular switch and interrupter components as the vault switchgear. This means all components are sealed, submersible and protected, so you don’t have to worry about tracking, animal infestation, corrosion or the effects of condensation inside the enclosure.
  • Ring Main Unit (RMU):
    • A ring Main Unit (RMU) is a Medium-Voltage, gas-insulated, fully sealed cabinet used to measure, connect, and integrate transformer protection functions with a fixed type breaker. Ring Main Units are safe, reliable, low-maintenance, and easy to replace switchgear.
    • A Ring Main Unit (RMU) is a factory assembled, metal enclosed set of switchgear used at the load connection points of a ring-type distribution network.
  • Dead Tank Circuit Breaker (DTB):
    • A Dead Tank Circuit Breaker (DTB) is a high-voltage, air-insulated switchgear where the interrupter units are housed in a grounded, metallic tank filled with insulating gas (typically SF6 or eco-friendly alternatives). It provides superior safety, seismic resistance, and allows for direct integration of current transformers, making it ideal for substation applications up to 800 kV.

 

• Distribution Systems:
  • Load Center (Residential Distribution) – Panel Board (Commercial/industrial LV Distribution) – Switch Board (Large-scale industrial/commercial systems):
    • A Load Center is used in residential and light commercial applications to distribute electricity supplied by the utility company throughout the home or building to feed all the branch circuits. Each branch circuit is protected by the circuit breaker housed in the load center.
    • Panelboards are typically deeper and used in commercial/industrial LV systems, supporting more configurations.
      • Panelboards are only accessible from the front while  Switchboards allow rear access as well.
    • Switchboards are used in large commercial and industrial systems and can handle higher currents and more complex distribution architectures.
  • Distribution Box – Cabinets – Enclosures:
    • General term for protective housings for electrical distribution components.
    • Enclosures provide mechanical protection, electrical safety, and environmental isolation (dust, moisture, etc.)
    • It can refer to enclosures containing Panelboards, Switchboards, or other distribution equipment.
    • In terms of use, distribution boxes are generally used for households (smaller enclosures), and distribution cabinets are mostly used for centralized power supply. Distribution boxes and cabinets are complete sets of equipment. Distribution boxes are low-voltage complete sets of equipment. Cabinets have both high and low voltages.
    • An enclosure or distribution enclosure in a general term for any type of protective housing for electrical distribution components. It’s essentially a cabinet or box designed to safeguard components from environmental factors, prevent electrical shock, and potentially shield against electromagnetic interference.

 

• Distribution Hierachy:
  • Main Distribution Boards (MDB):
    • Primary distribution point receiving power from:
      • Utility
      • Transformer
      • Generator
    • An MDB is a panel or enclosure that houses the fuses, circuit breakers and ground leakage protection units where the electrical energy, which is used to distribute electrical power to numerous individual circuits or consumer points, is taken in from the transformer or an upstream panel.
  • Sub-Distribution Boards (SDB):
    • Subsidiary from Main Distribution Board that distribute electricity to specific areas/zones of a building.
    • A sub-distribution board or sub-board is usually a smaller breaker panel acting as a subsidiary to a larger Distribution Panel. This enables greater control and isolation of a subset of smaller circuits and breakers.
  •  Final Distribution Boards (FDB):
    • Distribution Boards that received from the Sub-Distribution Boards and supply to the final switches that connect electrical devices and appliances.

 

• Meter Cabinet (Meter Box): 
  • This is the entry point for utility power into a building. It houses the electricity meter that measures power consumption and the main fuses belonging to the utility company.
  • Typically sealed and controlled by the utility to prevent tampering with unmetered energy

 

 

 

• Carbon Dioxide (CO2):
  • The primary greenhouse gas emitted through human activities. Carbon dioxide enters the atmosphere through the burning of fossil fuels (coal, natural gas, and oil), solid waste, biomass (e.g. wood), and also as a result of certain industrial chemical reactions (e.g. cement production).
  • Carbon dioxide is removed from the atmosphere (or “sequestered”) when it is absorbed by plants as part of the biological carbon cycle and through ocean absorption and geological processes. In climate accounting, however, “carbon sequestration” generally refers to the removal and storage of carbon in a reservoir; natural uptake through the carbon cycle is not necessarily classified as anthropogenic carbon dioxide removal (CDR).
  • CO₂ is naturally part of the carbon cycle, but human activities have significantly increased its concentration in the atmosphere.
• Biogenic Carbon Dioxide (CO2):
  • Biogenic CO₂ and fossil-derived CO₂ are chemically identical molecules.
  • The distinction is not chemical, but source-based:
    • Biogenic carbon: CO₂ released from organic materials such as plants, wood, soil, and biomass that were recently part of the natural carbon cycle. Its accounting treatment depends on the applicable carbon-accounting methodology and whether the carbon is considered part of the contemporary biogenic carbon cycle.
    • Fossil carbon: CO₂ released from fossil fuels (coal, oil, gas), which were stored underground for millions of years. This introduces additional carbon into the active atmospheric carbon cycle and is therefore generally treated as fossil CO₂ emissions.
• CO2e (Carbon Dioxide Equivalent):
  • CO₂e means “carbon dioxide equivalent”.
  • It is a standardized climate metric used to express the total climate impact of multiple greenhouse gases in a single standardized unit.
  • CO₂e converts all greenhouse gases (such as methane and nitrous oxide) into the amount of CO₂ that would have the same integrated radiative forcing / climate impact over a defined time period using a specified Global Warming Potential (GWP) value.
  • Formula: CO₂e = mass of gas × Global Warming Potential (GWP)
  • Carbon dioxide equivalents are commonly expressed as million metric tonnes of carbon dioxide equivalents, abbreviated as MtCO₂e or Mt CO₂-eq; “MMTCDE” is used in some datasets but is not the preferred general notation.
  • The carbon dioxide equivalent for a gas is derived by multiplying the tonnes of the gas by the associated GWP: CO₂e = mass of gas × GWP.
  • For example, the GWP for methane is approximately 27–30 under IPCC AR6 depending on the methane source and accounting convention, while the 100-year GWP for nitrous oxide is 273. This means that emissions of 1 million metric tonnes of methane and nitrous oxide respectively would correspond to approximately 27–30 and 273 million metric tonnes of CO₂e under those GWP assumptions.
• Carbon Footprint:
  • There is no universally agreed definition of what a carbon footprint is.
  • The most widely used definition (GHG Protocol) describes it as: “The total set of greenhouse gas (GHG) emissions caused directly and indirectly through an organization’s operations and value chain.” The GHG Protocol generally refers to corporate GHG inventories and Scope 1, 2 and 3 emissions rather than prescribing one universal definition of “carbon footprint.”
  • A carbon footprint is the total amount of greenhouse gas (GHG) emissions caused directly and indirectly by an individual, organization, product, or activity.
  • It is typically measured in CO₂e.
• Decarbonization:
  • Reduction of carbon dioxide emissions through the use of low-carbon energy sources and improved efficiency, with the goal of reducing overall greenhouse gas emissions. More broadly, decarbonization refers to reducing the carbon intensity and/or absolute greenhouse-gas emissions of an economy, sector, organization, product, or process, potentially including CO₂ removal for residual emissions.
  • Decarbonization typically refers to system-wide transition, not only emission reduction at a single source.
• Carbon Credits or Carbon Offsets:
  • Carbon credits are tradable certificates representing the verified reduction or removal of one metric tonne of CO₂e, generally generated by a specific project or activity; terminology and quality criteria vary between carbon markets.
  • They are part of cap-and-trade systems, where:
    • A cap limits total emissions
    • Companies receive or buy emission allowances
    • Excess allowances can be traded
  • Offsets are often linked to external projects that reduce or remove emissions (e.g. reforestation, renewable energy). A carbon offset is generally a credit representing a reduction or removal outside the entity’s own emissions boundary that may be used to compensate for emissions, subject to the applicable programme or claim rules.
  • Carbon credits and emission allowances should not be treated as synonymous: an allowance is a regulated authorization to emit under a cap-and-trade system, whereas a credit/offset generally represents a quantified emission reduction or removal.
• Carbon Capture and Storage (CCS) – Carbon Capture, Utilisation and Storage (CCUS):
  • CCS involves capturing CO₂ emissions from industrial processes or other concentrated sources and storing them permanently in geological formations (e.g. underground reservoirs).
  • CCUS adds a utilization step, where captured CO₂ is reused as a feedstock (e.g. fuels, chemicals, building materials). More precisely, CCUS refers to carbon capture followed by utilization and/or storage; utilization does not necessarily result in permanent carbon storage.
  • CCS = capture + geological storage; CCUS = capture + utilization and/or storage.
• Carbon Dioxide Removal (CDR) or Durable Carbon Removal: 
  • CDR refers to methods that actively remove CO₂ from the atmosphere and store it for long periods in geological, biological, or mineral form. CDR specifically requires an anthropogenic activity that removes atmospheric CO₂ and durably stores it in geological, terrestrial, ocean, or product reservoirs.
  • Examples include:
    • Direct Air Capture (DAC)
    • Bioenergy with Carbon Capture (BECCS)
    • Enhanced Rock Weathering (ERW)
  • CDR creates net negative emissions when removal exceeds emissions. A CDR activity itself can provide a net removal only when the total emissions associated with the removal process are lower than the amount of CO₂ durably removed and stored.
• Direct Air Capture (DAC): 
  • Technologies that extract CO2 directly from the atmosphere at any location, unlike carbon capture which is generally carried out at the point of emissions, such as a steel plant. DAC can capture CO₂ from ambient air regardless of where the original emissions occurred; it is distinct from point-source carbon capture.
  • Constraints like costs and energy requirements as well as the potential for pollution make DAC a less desirable option for CO2 reduction. Its larger land footprint when compared to other mitigation strategies like carbon capture and storage systems (CCS) also put it at a disadvantage. However, DAC is a potential carbon-removal technology rather than simply a CO₂-reduction technology, and its climate benefit depends strongly on the energy source, capture efficiency, permanence of storage, and lifecycle emissions.
• Direct Air Capture and Storage (DACCS):
  • Climate technology that removes carbon dioxide (CO2) directly from the ambient atmosphere using large fans and chemical processes to bind with the CO2. The captured CO₂ is then transported and durably stored, typically in geological formations.
  • DACCS is therefore a specific form of CDR: DAC + durable CO₂ storage.
• Bioenergy with Carbon Capture and Storage (BECCS):
  • Technology that generates energy from biomass while capturing and storing the resulting CO₂.
  • Because biomass absorbs CO₂ while growing, BECCS can result in net negative emissions. It can result in net negative emissions when the full lifecycle emissions—including biomass production, harvesting, transport, processing, energy use, and capture/storage—are sufficiently lower than the amount of biogenic CO₂ durably removed from the atmosphere.
• Enhanced Rock Weathering (ERW):
  • Carbon dioxide removal (CDR) technique that accelerates the natural process of rock weathering by grinding silicate rocks into dust and spreading it on land, typically agricultural fields. This process enhances reactions with water and atmospheric CO₂, converting dissolved carbon into bicarbonate and, ultimately, carbonate minerals or transporting dissolved inorganic carbon to aquatic systems, where it can be stored over long timescales.
  • Its effectiveness and permanence depend on rock type, particle size, weathering rates, transport pathways, soil and water chemistry, and the emissions associated with mining, grinding, and transporting the rock.
• Limits of Carbon Dioxide Storage: 
  • Carbon storage is not endless; the Earth’s capacity for permanently storing vast amounts of captured carbon, particularly in geological formations, is limited, potentially reaching a critical limit of 1,460 gigatonnes at around 2200, though storage durations vary significantly depending on the method, from decades for some biological methods to potentially millions of years for others like mineralization. Estimates of geological storage capacity vary widely and depend on geology, reservoir characteristics, storage efficiency, infrastructure, economics, regulation, monitoring, and permanence.
  • While some methods offer very long-term storage, the sheer volume needed to meet climate targets requires scaling up storage significantly beyond current capacity, raising concerns about the available volume over time. The practical constraint is therefore better described as the need to develop sufficient safe, permanent, economically and technically accessible storage capacity rather than a single known global physical limit.
• Carbon Impregnation: 
  • Carbon impregnation is the process of treating activated carbon with chemical agents (such as metals, acids, or bases) to enhance its ability to adsorb specific, hard-to-remove pollutants. By loading substances like silver, sulfur, or potassium hydroxide into its pores, this material combines physical adsorption with chemical reaction for improved, targeted filtration in water and air. This is a materials engineering process, not a climate accounting concept.

 

• Global Warming: 
  • Global warming is the long-term heating of Earth’s climate system observed since the pre-industrial period (between 1850 and 1900) due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels in Earth’s atmosphere. Global warming refers specifically to the long-term increase in Earth’s average surface temperature; climate change is the broader term encompassing associated changes in climate systems, including precipitation, extremes, sea level, and ecosystems.
• Global Warming Potential (GWP): 
  • A measure of how much heat a greenhouse gas contributes to climate warming relative to CO₂ over a specific time period (commonly 100 years).
  • CO₂ has a GWP of 1.
  • GWP is the scientific basis for converting gases into CO₂e.
  • GWP was developed to allow comparisons of the global warming impacts of different gases. The numerical GWP depends on the selected IPCC assessment, time horizon, and, for some gases such as methane, the emission source and accounting convention.
• Greenhouse Gas (GHG):
  • Any gas that absorbs and emits infrared radiation in the atmosphere, contributing to the greenhouse effect.
  • Main GHGs include:
    • CO₂
    • Methane (CH₄)
    • Nitrous oxide (N₂O)
    • Fluorinated gases such as HFCs, PFCs, SF₆ and NF₃
  • Water vapor is a GHG but is not directly controlled by human emissions at scale. It is primarily a feedback in the climate system rather than a direct target of conventional anthropogenic GHG inventories.

• GHG Protocol Corporate Standard Scope 1, 2 and 3: https://ghgprotocol.org/ + The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organizations preparing a corporate-level GHG emissions inventory. The Corporate Standard itself is voluntary, although companies may be required by applicable legislation or regulation to report using the GHG Protocol or equivalent requirements.
  • Scope 1: Direct emissions:
    • Direct emissions from company-owned and controlled resources. In other words, emissions are released into the atmosphere as a direct result of a set of activities, at a firm level. More precisely, Scope 1 covers direct GHG emissions from sources that are owned or controlled by the reporting organization.
    • It is divided into four categories:
      • Stationary combustion (e.g from fuels, heating sources). All fuels that produce GHG emissions must be included in scope 1. This applies when the combustion source is owned or controlled by the reporting organization.
      • Mobile combustion is all vehicles owned or controlled by a firm, burning fuel (e.g. cars, vans, trucks). The increasing use of “electric” vehicles (EVs), means that some of the organisation’s fleets could fall into Scope 2 emissions. For example, fuel combustion in an owned/controlled vehicle is Scope 1, whereas electricity purchased to charge an EV is generally Scope 2; an EV itself does not create Scope 2 emissions—the purchased electricity does.
      • Fugitive emissions are leaks from greenhouse gases (e.g. refrigeration, air conditioning units). It is important to note that refrigerant gases are not uniformly “a thousand times more dangerous” than CO₂; some refrigerants have GWPs of hundreds or thousands of times that of CO₂, while others have much lower values. Companies are encouraged to report these emissions.
      • Process emissions are released during industrial processes, and on-site manufacturing (e.g. production of CO2 during cement manufacturing, factory fumes, chemicals). These are direct emissions resulting from physical or chemical processes other than fuel combustion, such as calcination in cement production..
  • Scope 2: Indirect emissions – owned:
    • Indirect emissions from the generation of purchased energy, from a utility provider. In other words, all GHG emissions released in the atmosphere, from the consumption of purchased electricity, steam, heat and cooling. Scope 2 covers indirect GHG emissions associated with the generation of purchased or acquired electricity, steam, heat, and cooling consumed by the reporting organization; “owned” is therefore misleading because the emissions source is owned or controlled by another entity.
    • For most organisations, electricity will be the unique source of scope 2 emissions. Simply stated, the energy consumed falls into two scopes: Scope 2 covers the electricity consumed by the end-user. Scope 3 covers the energy used by the utilities during transmission and distribution (T&D) losses. More precisely, Scope 2 covers the generation-related emissions associated with purchased electricity, not the physical electricity itself. T&D losses are generally accounted for in Scope 3 Category 3 for an energy consumer that does not own the T&D system, although the treatment can vary depending on ownership and accounting circumstances.
  • Scope 3: Indirect emissions – not owned:
    • Indirect emissions – not included in scope 2 – that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions are linked to the company’s operations. According to the GHG protocol, scope 3 emissions are separated into 15 categories. Scope 3 therefore captures other indirect value-chain emissions, upstream and downstream, across the 15 defined categories of the Scope 3 Standard.

 

 

 

• Hydrogen:
  • The atom of hydrogen is the first element in the periodic table, with chemical symbol H and hydrogen was one of the first elements formed in the early universe after the Big Bang. It is the most common element in the universe and the primary fuel for stars like the Sun (via nuclear fusion). It consists of one proton (positive charge) and one electron (negative charge) in its neutral atomic form.
  • Hydrogen rarely exists in its pure form (H₂) on Earth. Molecular hydrogen (H₂) is relatively scarce naturally, because it readily forms covalent bonds, and most hydrogen is found in compounds such as:
    • Water (H₂O)
    • Hydrocarbons (e.g., methane CH₄, oil, and coal)
    • Biomass (plants, organic matter)
  • Hydrogen can be produced in numerous ways:
    • Steam Methane Reforming (SMR) → produces a hydrogen-rich gas mixture and CO₂ as a by-product
    • Electrolysis (using electricity) → can have very low lifecycle emissions if powered by low-carbon electricity, including renewable electricity
    • Other methods (biomass, thermochemical, etc.)
  • Hydrogen is a versatile energy carrier (not a primary energy source) that can be used for:
    • Transportation (fuel cells, synthetic fuels)
    • Industrial processes (e.g., ammonia, steel)
    • Power generation and storage
    • Heating (in specific applications)
  • Hydrogen is a low-emission energy carrier at the point of use in a fuel cell, producing electricity, heat, and water rather than CO₂ when pure hydrogen is used as the fuel. It is particularly useful in sectors where electrification is difficult (heavy industry, long-distance transport). Its overall climate impact depends on how the hydrogen is produced, transported, stored, and used.
• Grey, Blue or Green Hydrogen:
  • Where hydrogen comes from is critical:
    • Grey Hydrogen: Produced from fossil fuels (mainly natural gas via SMR) → high CO₂ emissions
    • Blue Hydrogen: Same as grey, but with Carbon Capture and Storage (CCS) to capture and permanently store a substantial portion of the CO₂ generated during production; residual and upstream emissions can remain
    • Green Hydrogen: Produced via electrolysis using renewable electricity → potentially very low lifecycle greenhouse-gas emissions, depending on the electricity source and the full production system
  • There is a growing consensus that hydrogen can play a key role in the energy transition, particularly for:
    • Decarbonizing heavy industry
    • Long-duration energy storage
    • Heavy transport (shipping, aviation fuels, trucking) and other applications where direct electrification is technically difficult or inefficient
  • Important: Grey, blue and green are commonly used industry colour classifications rather than universally standardized scientific categories. Other classifications include turquoise hydrogen (methane pyrolysis), pink hydrogen (nuclear-powered electrolysis), yellow hydrogen (electrolysis using grid electricity), and white hydrogen (naturally occurring geological hydrogen).

• Hydrogen Electrolyzer:
  • An electrolyzer is a system that uses electricity to split water into hydrogen and oxygen in a process called electrolysis.
    • At the cathode: water gains electrons → hydrogen gas (H₂) is produced
      At the anode: water releases electrons → oxygen gas (O₂) is produced
  • The cathode is the site of reduction and the anode is the site of oxidation. The exact electrode reactions depend on the electrolyzer technology, such as alkaline or proton-exchange membrane (PEM) electrolysis.
    The overall reaction is: 2H₂O → 2H₂ + O₂.
  • The electrolyzer is therefore essentially the reverse electrochemical process of a fuel cell.
• Fuel Cell Plant:
  • A fuel cell plant is a facility that generates electricity through an electrochemical reaction (not combustion).
  • It works by combining:
    • Hydrogen (fuel)
    • Oxygen (from air)
  • to produce:
    • Electricity
    • Heat
    • Water
  • Fuel cell systems:
    • Produce very low emissions (no direct CO₂ emissions when pure hydrogen is used as the fuel; lifecycle emissions depend on hydrogen production and other upstream activities)
    • Operate continuously as long as fuel is supplied
    • Are used in power generation, backup systems, and mobility
  • A fuel cell converts the chemical energy of hydrogen and an oxidant directly into electrical energy through electrochemical reactions, rather than first converting the fuel into heat through combustion.