The influence of renewable energy sources has deep worldwide impacts, so here are some of the energy trends of the power markets which will empower the sector in future.
FREMONT, CA: Markets are going through several changes every year. New trends are introduced in the sector every year to bring something new and exciting. Things like technological advances, political influences, and market changes have all contributed to creating asset mixes, and commercial risks that are in constant flux. Over the last decade, renewable energy sources have significant influence across the globe.
Here are some of the energy trends of the power markets:
Trend 1: The move to real-time in renewable energy markets
A report published by IEA’s Renewable says that energy will grow by a staggering 50% in the five years between 2019 and 2024. This change in energy supply will force power markets to reckon with the development of near-real-time intraday markets. Many power markets are opting shorter settlement periods, because of these complexities. The challenge of unpredictability is faced by the reality of ongoing investment in renewable energy. To maintain grid frequency, the intermittent nature of wind and solar means power grids will need to address energy shortfalls. This will increase volatility around intraday prices as grid operator’s price incremental resources like gas-driven turbines in and out of the market to maintain stability.
Trend No. 2: Rising “prosumers”
The traditional consumer is now considered as a producer, bringing added complexity to existing market participants. According to reports of IEA, renewable energy build-out accounted for 75% of all growth in global net power capacity. Most of the countries are investing in large utility-scale projects like off-shore wind farms, and distributed energy sources are on the rise.
Generally, government programs used to incentivize this. But now the cost of solar generation has decreased to become more attainable for more users interested in the possibilities of net-metering. Whether it is small-scale residential rooftops or extensive installations, all microgrids still have the same issue: Consumption does not match production.
Trend No. 3: Advancements in battery storage
Nowadays, efficient storage has become a necessity and is driving fundamental change in how power is managed, distributed, and consumed. One of the questions which arise around large and small scale renewable energy projects has been the efficacy and cost of battery storage. New possibilities in the growth of renewable energy are on the rise, with the increasing value of battery storage plummets. The other option is small microgrid systems that can easily pull from batteries during peak demand to replenish during off-peak periods.
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