30 years of Energy & Construction - From switch to strategy

Thirty years ago, energy supply was still simple: electricity came from the socket, heat from the heating system - and few people were interested in exactly where it came from. Today, we are at a turning point. The energy and construction industry has changed radically over the last three decades: New technologies, geopolitical crises, climate targets and changing expectations from society and the economy are demanding a complete rethink. Today, energy must not only be available, but also sustainable, decentralized and affordable.

To mark our 30th anniversary, we take a look back - and above all forward: Prof. Dr. Oliver Mayer, Head of Energy & Construction at Bayern Innovativ, talks about technological milestones, important barriers and the big question of how companies can not only participate in the energy transition, but also help shape it.

What was the decisive moment for you personally with regard to the technologies in the German energy industry?

Prof. Mayer: If I had to pick one technology, I was particularly fascinated by the development of photovoltaics, which I witnessed myself. Photovoltaic technology originally came from space and was used to power satellites. In the 1980s or 1990s, the idea of using this technology terrestrially emerged. At the time, it was said that this was complete nonsense, as the sun did not shine constantly. What fascinated me about the technology is this: the only source of energy here is the sun, which gives us energy in the form of photons and is then absorbed by biomass on earth, creating and storing oil, coal and gas over millions of years. In contrast, photovoltaic technology manages to convert a photon in a single step. This is ingenious in terms of efficiency, but this is also where our biggest challenge comes into play, namely storage. Because the energy that we generate from renewable sources today

How do you see the development of renewable energies in Germany compared to other countries?

Prof. Mayer: We have the technology for it. On the other hand, it is a transformation that means a changeover and costs a lot of money. People don't like to change or don't want to do something new. The limit is often where it affects you personally, I call it the personal impact vector, where many people want to stick with the familiar. This is the area of tension that also exists for companies today: When is it worth switching? After all, it always involves costs. People often don't switch because they wait until it becomes cheaper. Overcoming this tension is what I am working on here at Bayern Innovativ and what I want to solve together with the companies.

So this is less about a technological issue and more about understanding or mindset?

Prof. Mayer: Yes, exactly. The technologies are all there. I always say there are three decisions in a company: the question of relevance, the right time and the way to implement it without it damaging the business or increasing prices. That is the crux of the matter. It must be clearly stated that the attitudes of the countries also play different roles here, as do the political situations and how the economy is assessed. Personally, I believe that if we manage to switch to renewable energies in Germany, including in the heating transition, we will have something to say and something to sell. If we manage to implement this in the companies, then others will also be interested because they will see that it works.

In other countries, there are already applications where you can directly see how the electricity price is behaving. Do we also need this kind of change, i.e. a personal sense of change, in the economic sector?

Prof. Mayer: Yes and no. This personal feeling that electricity costs nothing and you can quickly switch on the washing machine is a bit exaggerated. You wouldn't drive home from work just to turn on the washing machine and then go back to the office. That happens more by chance. It has to be automatically integrated into life. What drives people is convenience. Something has to be easy and you shouldn't have to worry about it. So people are prepared to make investments. This is also noticeable in private life. For example, many people use websites or networks that are so simple that they don't care what data is being collected about them. This is not yet the case in energy technology, where it is not yet so convenient. And we have to work on that to get one step further.

What can this "making comfortable" look like in a company and how do you support companies in this?

Prof. Mayer: Customer inquiries are very different. There is no one request that comes up again and again. Every company is different. At the beginning of the collaboration, we first look at the mood within the company with regard to the topic. If it is positive, then we can handle it well. We also create links with other companies from similar sectors or regions and get them to share ideas on how the transformation can work. We even do this with competitors. For example, we have energy efficiency networks where we bring breweries, hotels and bars together because they have similar requirements. The exciting thing is that the companies work together on these topics despite the competition. They look for solutions together and exchange ideas. This exchange and cooperation works much faster than with an individual consultation. This is the kind of networking that people need.

In the past, energy was simply bought in by companies, but now it may have to be produced or stored in-house. The process is therefore becoming more fragmented. Are companies facing up to this challenge, do you notice this in your inquiries?

Prof. Mayer: That's exactly the point. A company usually has the goal of having a product. Until now, it was easy to buy energy. Suddenly a requirement is added that actually goes beyond know-how. That is the difficulty. At the moment, companies still have to decide for themselves where to buy or store their energy, which is inconvenient. That's why it's so important to develop new, innovative solutions that automate and simplify this process. We need to move in the direction where companies can really afford this, especially the small ones that don't have the capacity to take care of their own energy supply.

A key aspect of European energy policy is the phasing out of coal by 2038. How do you estimate the impact on the Bavarian economy?

Prof. Mayer: It will have an impact, which is why it is incredibly important to make progress in terms of storage technologies, perhaps also with the long-term storage of hydrogen, although the efficiency and costs here are not very profitable. This changeover in this direction must continue to be pursued consistently. I see it as my job to show what possibilities there are and that it is economical and will be a survival strategy for the future of the economy in Bavaria, Germany and Europe.

What is the role of European cooperation in this?

Prof. Mayer: You can just take a look at our grid. The generator in Portugal, for example, is synchronized with the one in Poland or Estonia. It's a network that completely synchronizes everything and you have to look at it together. The difficulty lies in the fact that we have local conditions in between. For example, with laws that regulate the market economy in the countries. Harmonizing these issues is another challenge that needs to be mastered. To put it critically, this is unfortunately slower than technological developments. But it is often the case in life that technology moves faster than the regulations that go hand in hand with it.

What support do you offer companies that want to take part in this transformation?

Prof. Mayer: When we receive inquiries, we often establish contacts first, including the transfer of knowledge from universities. There are a lot of students who investigate great ideas and solutions in their theses, which unfortunately disappear into a drawer if they are not applied. This also happens because industry simply doesn't have the time. Our job is to draw attention to the fact that there are good ideas and solutions that companies can try out in practice. We are very well positioned at Bayern Innovativ because it's not just our colleagues from Energy & Construction, i.e. in my area, who work here, but people from a wide range of industries. For example, we can also exchange ideas with people from the mobility sector, who also need energy. For batteries, we can ask the materials department. We have a very individual approach here. We look at what the companies' needs are, and then we ask them what they need.

How will the energy sector develop over the next 30 years, what trends do you see in the future?

Prof. Mayer: The energy transition will only work if we also manage the heating transition. There is also an energy transition. It is still being treated somewhat neglected at the moment because it is also the more difficult transition. The whole direction of energy will develop in line with technological trends towards one field. That is electrification. It will become more and more electric and that will only work if we build up renewable energies. This also includes the topic of storage. A lot is currently happening in this area. We have the generation technologies, the current focus is on storage and the next point will be decentralization. It will no longer be the large power plants, but many islands that supply themselves locally but are connected to their neighbors in order to exchange surpluses or requirements. So it's not about self-sufficiency, but about a high level of self-sufficiency and exchange with the surrounding area across all types of energy that are required.