Updated: May 9
The falling cost of renewable energy technologies, growing climate advocacy, broadening regulatory mandates, and rising consumer demand for greener and more sustainable energy sources create significant potential for the energy sector. However, global energy demand is rising rapidly because of economic and population growth, resulting in new challenges. According to IEA in 2021, although electricity demand in Europe dropped to Sunday levels during Covid-19 induced lockdowns, post lockdown recovery of electricity demand is now above 2019 levels.
The environmental imperative to drastically reduce greenhouse gas emissions has led to increasingly aggressive green goals and pledges both nationally and globally. Consequently, energy suppliers actively develop new business models, collaborations, and capabilities. Newmarket entrants, ranging from automakers to oil companies, are keen to participate in the electrify-everything campaign.
Although many utility companies have succeeded in greening their businesses, making onshore wind and solar the most cost-effective energy sources, bringing the levelised cost of renewable electricity to new lows, and achieving zero-emissions objectives remain challenging. More immediate work is required to integrate carbon-free and distributed forms of energy into power systems.
It is uncertain what more renewable energy transition system operators can make without major economic and technical abilities improvements. Given the increasing interactions between self-generating users, micro-grids, power transmission, and electric vehicle (EV) charging infrastructure, further advancements in demand forecasting is essential on the distribution side.
New services will be required in response to shifting demand patterns allowed by grid management systems, distributed power generation and electric vehicles. Customers will ultimately rely on utilities to act as trusted intermediaries, telling them about various support programmes financing options and providing them with relevant energy efficiency advice and sustainable energy suppliers.
People are the centre of the enregy transformation.
Utilities are waging multibillion-dollar bets worldwide to address these difficulties and capitalise on the plethora of opportunities presented by the ongoing energy transformation drive. They must adopt a power paradigm that is carbon-free, distributed, digital and places people at the centre of the strategy if they are to succeed. To do this:
1. Customers should be able to get solutions that safeguard the environment and ensure a long-term future.
2. Utility companies must collaborate with regulators to build a market that supports net zero.
3. They should be able to deliver reliable profits for investors while also considering social and environmental factors.
4. Employees should be well-resourced with recent technology and analytic tools to help build a sustainable business for the future.
We are here to assist you
For more than two decades, we have been working with our clients to achieve affordable low-carbon energy use within their processes—our clientele cuts across power generation, transmission and distribution to retailing. Our energy transition services cover the whole energy value chain. We will work with you from strategy to execution and ongoing operations. Our in-house sustainability experts are ready to assist you with setting out the business case for energy transformation to selecting the appropriate risk management and expansion frameworks.
There are other emissions that do not come from energy generation.
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