Our view includes electricity, heating, cooling and transportation. Key trends are backed up by numerous global studies.
The integration of renewable energy sources such as wind and solar have traditionally represented challenges as well as additional costs for utilities and grid operators. Increasing penetration of these variable resources puts strains on the power grid, including the need for energy storage and back-up generation, to meet requirements for both grid stability and security of energy availability.
Variable renewable energy sources (VRES) are now bringing necessary and disruptive change to the global energy landscape at an accelerating pace.
Driven by technological advances, enabling policy frameworks and decreasing costs, VRES creates unprecedented opportunities in rethinking the way our energy systems operates.
Key characteristics of the future energy system
Our energy system is becoming ever more electricity intensive
- A stable grid that ensures availability of electricity are becoming critical for modern day societies.
The decentralisation trend continues
- The amount of small producers is increasing fast, but centralised production will remain important. A key target for the demo Smart Energy Åland is to increase the sense of ownership in a modern VRES energy system, were prosumers are at the heart of the system.
- New types of stakeholders, such as energy communities, are evolving.
- The business environment is changing due to market liberalisation.
- There is an increasing role for Information and Communications Technology (ICT) and an overall need for digital services in the energy systems.
The push for decarbonisation is gaining importance
- Increasing pressure to find ways to incentives carbon free production.
- Forecasts for CO2 emission permit costs to be followed closely – we need to be ahead of the market.