Shell believes it can be the world’s biggest power company by the early 2030s driven largely by renewables and gas. It thinks electrification will grow rapidly and eyes double digit returns from smart trading and management of flexibility.
In an interview with Bloomberg TV, Maarten Wetselaar, Integrated Gas & New Energies director, said the company is interested not in legacy power sector business or economics, but “what we see in next 20 years – intermittent demand and supply”.
He implied that Shell sees greatest margin from domestic retail – selling not just power, but solar, storage and smart home and electric vehicle management, nodding to recent deals for Sonnen and others as enablers.
However, generation is also important, as Shell does not believes consumers will want to buy clean energy from those that do not generate it.
While Shell has stepped up its investment in clean technologies in recent years, it will move rapidly to scale once its strategy is proven, said Wetselaar.
The only aspects of the new power sector he ruled out investing in were coal, nuclear and transmission.
See Bloomberg’s story and video interview here.