The global energy market is undergoing a revolution that goes beyond the transition to renewable sources. This transformation is fueled by a series of technological innovations, disruptive business models and the growing demand for sustainable and resilient solutions.
The current focus is on how to integrate renewable energies, optimize distribution networks and develop new ways of storing and using energy.
At the same time, the profile of professionals who will work in this sector is also changing, requiring a combination of technical, digital and strategic skills.
1. Transition to renewable energy: significant innovations and investments
The transition to renewable energy sources has accelerated, driven by more aggressive government policies and the falling costs of clean technologies.
According to IRENA (International Renewable Energy Agency), the cost of solar electricity has fallen by more than 80% in the last decade, and solar and wind power have become one of the most competitive ways to generate electricity.
This phenomenon is allowing many countries, especially developing ones, to become more independent from fossil fuels and increase their energy security.
Examples and investments:
- Tesla and SolarCity (USA): Tesla, through its subsidiary SolarCity, has been one of the biggest investors in the expansion of solar energy. The company now offers solutions such as the Powerwall, a residential energy storage battery that can store electricity generated by solar s. In 2023, Tesla announced plans to expand its solar cell and battery production capacity to meet the growing demand for storage solutions around the world.
- Orsted (Denmark): Orsted, formerly Dong Energy, is a prime example of how a traditional energy company can reinvent itself by becoming a global leader in offshore wind. The company has invested more than $22 billion in renewables in recent years and is now the world’s largest offshore wind producer, with more than 25 wind farms operating in northern European waters, including in the UK and .
- Enel Green Power (Italy): Enel Green Power, a global leader in renewable energy, has announced that its goal by 2030 is to increase its installed renewable capacity to 60 GW, with estimated investments of more than 16 billion dollars. The company is expanding its operations in markets such as Latin America, Asia and Africa, implementing large-scale solar, wind and geothermal energy projects.
Challenges and opportunities
Despite advances, the intermittency of solar and wind energy remains a major challenge. The need for more constant energy sources and networks capable of integrating multiple generation sources is encouraging the search for innovative solutions, such as energy storage and smart grids.
2. Energy storage: the solution to the intermittency of renewables
Energy storage has become one of the cornerstones of the energy market transformation. With the expansion of intermittent generation, such as solar and wind, the need to store energy to ensure continuous supply has become increasingly urgent.
The lithium-ion battery market, which has already seen prices drop by up to 80% over the past 10 years, is at the heart of this transformation.
Examples and investments:
- CATL and BYD (China): Chinese companies such as CATL and BYD have emerged as global leaders in the development and production of batteries for energy storage. CATL, one of the world’s largest lithium-ion battery manufacturers, has announced plans to invest $6,5 billion in expanding its production by 2025. This expansion includes both batteries for electric vehicles and large-scale energy storage systems.
- Tesla (USA): In addition to its innovations in solar, Tesla continues to lead the way in the battery market with its Powerwall and Powerpack, storage solutions for homes and businesses, respectively. Tesla has invested millions in building its Gigafactory in Nevada, designed to mass-produce batteries and reduce costs. In 2022, Tesla expanded its storage capacity with the opening of a new plant in .
- Fluence (USA): Fluence, a t venture between Siemens and AES, is revolutionizing the utility-scale energy storage industry. Fluence has implemented several energy storage projects in the United States, including the Moss Landing Energy Storage Facility, one of the largest battery storage facilities in the world with a capacity of 400 MWh.
Market impact
These innovations are essential to the stability of modern power grids. Fluence and Tesla, for example, are deg storage systems to help balance energy supply and demand in real time, allowing energy generated by renewable sources to be stored and used at times of high demand, such as at night or during calm periods when wind generation is lower.
3. Green hydrogen: the next frontier
Green hydrogen, produced through electrolysis using electricity generated by renewable sources, is emerging as a key solution for decarbonizing hard-to-electrify sectors such as heavy-duty transport, chemical industry and high-temperature processes.
The global green hydrogen market is expected to grow from $1,5 billion in 2023 to $6,5 billion by 2030, according to the Hydrogen Council.
Examples and Investments:
- Siemens Energy (): Siemens Energy is leading the development of green hydrogen technologies with projects such as Westküste 100, a hydrogen pilot project in that aims to produce green hydrogen from offshore wind power. The company aims to become a leader in the hydrogen value chain, from production to transportation.
- Air Products (USA): Air Products, one of the world’s largest industrial gases companies, is investing heavily in developing hydrogen infrastructure. In 2021, the company announced a $5 billion investment to build a green hydrogen plant in Saudi Arabia, the world’s largest to date, which is expected to produce 4,3 million tons of green hydrogen per year.
- In this (Finland): Finnish biofuels company Neste has launched an ambitious green hydrogen project, building a green hydrogen plant in partnership with Equinor and Hydrogenious LOHC Technologies, with the aim of reducing carbon emissions from industry and transport.
The Impact on the Global Economy
Investments in hydrogen are not just a bet on the energy transition, but also an attempt to redefine geopolitical dynamics.
Countries with large renewable resources, such as Saudi Arabia and Australia, are positioning themselves as strategic suppliers of green hydrogen to markets in Europe and Asia, with the potential to change the global energy map.
4. Artificial intelligence and smart grids: the digitalization of the energy sector
The integration of artificial intelligence (AI), big data and smart grids is transforming the way energy is managed and distributed.
The use of AI enables more accurate demand forecasting, optimization of energy consumption and the automation of electrical systems, making them more efficient and resilient.
Examples and investments:
- Google (USA): Google has been investing heavily in AI to optimize energy consumption in its data centers. The company uses machine learning algorithms to predict and manage energy usage in real time, reducing consumption and improving efficiency.
- General Electric (GE) and Siemens (): Both companies are investing in smart grids and digital monitoring systems to improve the reliability of power grids. Siemens, for example, has smart grid projects in several cities around the world, including Berlin and Singapore, while GE is developing solutions to monitor and predict power grid failures using AI.
- Iberdrola (Spain): Iberdrola, one of the world’s largest energy operators, is investing in AI to manage its electricity grid and optimize the use of renewable energy. The company has launched the “Grid Edge” project, which uses AI to integrate different energy sources and reduce electricity waste in its networks.
Impact on the energy sector
These innovations have the potential to increase the operational efficiency of networks, enabling the integration of renewable sources more effectively and reducing operating costs.
5. The profile of energy professionals of the future
The future of the energy market will require highly skilled and specialized professionals. Some of the most in-demand skills include:
- Renewable Energy Specialists: Engineers specializing in solar, wind and green hydrogen will be key to the development of new infrastructure and technological solutions.
- Artificial Intelligence and Big Data Professionals: As the sector becomes more digital, there will be a strong demand for professionals who have skills in AI, machine learning, data analytics and cybersecurity.
- Energy Storage Engineers: Engineers specializing in batteries and storage technologies will be crucial to solving the challenges of renewable energy intermittency.
- Energy Project and Policy Managers: Professionals with knowledge of public policies and environmental regulations, capable of implementing and managing large-scale projects with global impact, will be essential for the energy transition.
Conclusion
The transformation of the energy market is profound and comprehensive, driven by technological innovations in renewable energy, storage, green hydrogen and digitalization.
Companies such as Tesla, Orsted, Enel Green Power, Siemens and Fluence are leading the way, developing new solutions that not only shape the future of the energy sector, but also create a profile of professionals.
These professionals will need to be adaptable, highly skilled and prepared to face the challenges of a dynamic and constantly evolving market. The future of energy will not only be greener, but also smarter and more digital.
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The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
