The world is changing… and so is energy
One of the major concerns of governments worldwide is to guarantee the availability of energy supply, even if energy is an ubiquitous commodity at the distance of a click. So is sustainability, as the COP21 conference committed to a faster decarbonization.
The introduction of renewable sources in the countries energy mix prompted for relevant premium prices in power purchase agreements, namely for wind and photovoltaic parks. As expected, the technology evolution brought the wind energy overall costs (also known as LCOE or Levelized Cost Of Energy) to similar values of those of gas, coal or nuclear, allowing it to position as a competitive source of energy, wind allows it. On the same direction, photovoltaic electricity generation is also becoming affordable with an important twist: its price and scalability allow for consumers to produce their own energy. Add a storage battery and everyone gets its own electricity 24/7.
Adding to these trends on the supply side, the demand is set to A. reduce due to energy efficiency and B. increase due to rise of new electrical devices, electric cars, and the like.
We are in need of a (re)revolution to address all these fast changes!
To better understand the global context, Bloomberg New Energy Finance compiled in a single article the eight massive shifts coming soon to power markets that will cause the era of ever-expanding demand for fossil fuels come to an end:
- Electricity generated by gas won’t grow
- Renewables will attract huge investment
- Electric cars will drive demand
- Batteries join the grid
- Solar and wind prices plummet
- Renewable sources production efficiency will improve
- Pollution will decrease in developed countries
- Emission still need a close look