What is the energy transition?
An energy transition disrupts the status quo. A new energy source emerges, leading to a structural and permanent change in supply, demand, energy mix and prices.
The energy transition currently underway is about a transformational switch away from fossil fuels and into renewable and clean sources of energy (solar, wind and water). This has only accelerated due to coronavirus and the resultant impact on oil prices. More efficient use of energy (using technology such as LEDs, compact fluorescent lights, smart thermostats and appliances) and biofuels also feature.
What is driving the current energy transition?
Powering the energy transition is a technology-based switch from fossil fuels to renewables, supported by an almost ubiquitous societal push towards a sustainable future. There are two primary enablers – renewables and electrification. But they are out of kilter. Renewables growth is well ahead of electrification trends but, in time, the two will converge. This is the ‘point of singularity’, when the world rings out the old and rings in the new, welcoming the future of alternative energy.
What does the energy transition mean for my business?
The global energy transition is unstoppable, but uncertainty remains. What if it accelerates? What if legislation is slow to catch up? Get detailed analysis on the future of renewable energy for your industry and sector below.