The energy market is facing a rapid and challenging transition. Greenhouse gas emissions need to be reduced to near-zero level on a global scale within a few decades. Electricity will be increasingly replacing fuel-based energy usage in transportation and heating sectors, and a continuously growing share of all new electricity production capacity being built each year is based on renewable energy sources having very low marginal costs.
In 2015, wind power already accounted for 44 % of all new power installations across Europe and covered more than 10 % of Europe’s electricity demand. The costs (both CAPEX and OPEX) of wind energy – both onshore and especially offshore – are on a steep learning curve. The cost of photovoltaics is plummeting, potentially making PV the cheapest option for new electricity production in a number of markets sooner than anybody could have expected.
Vast numbers of communities in developing economies will be leapfrogging from outdated diesel generators and kerosene lamps straight to intelligent, renewable energy based modular power systems.
Energy sector actors need to revise their expectations for the future and reshape their strategies to succeed in the rapidly changing business environment. National and global policies need to be quickly adjusted to enable a smooth and efficient transition to a new energy market.
The change is inevitable, but the ride will surely be less bumpy for those who plan their actions along the transition with foresight and skill.
recognis consulting will help you to recognise the drivers and utilise the opportunities in the rapidly evolving markets of renewable energy. And, equally important: to recognise the challenges and manage the risks inevitably embedded in all business plans and transactions.