| | DECEMBER - JANUARY8People commonly talk how things are changing ever faster and it seems the world is turning faster and faster. What was once inconceivable is now the norm. Looking at this 21st century, the stage is set for major changes, and if we don’t cause irreparable damage on our planet, for having our assumptions dwarfed or completely wrong. Still, focusing on a shorter term, the energy sector is one of the areas of our society where we are seeing significant changes, qualitative and quantitative. I’d like to focus a few topics:Energy transitionEver since the industrial revolution in the 19th century, centralized power plants that used fossil fuels were the norm. At the time there was not a generalized awareness of the impact of burning such fuels, but they did allow for exponential growth in human civilization. Tasks that were once impossible or not feasible, became mundane and over the decades the world changed. Clothing, for example, required a craftsman’s that had little output capacity, all of the sudden a factory we could pour out thousands or millions of clothing pieces a year, lowering the costs and allowing most of society to enjoy better comforts and quality of life than humankind never witnessed.Now we know otherwise, fossil fuels have significant impact and renewables must be the norm. This change has two important aspects to consider. On one side, research is of paramount importance. On the fossil fuel industry, we had decades of investment to optimize all processes, a path renewables have to make. This is quite apparent on the price per Watt on solar panels (over 100$ in 1975 and less than 0,2 cents in 2020). Such a drastic reduction is only seen in innovative industries. Nevertheless, we have a long way to go with a lot of room for growth. On the other hand, there is a significant shift how the power plants work. On renewables we no longer have a switch to turn them on and have to follow the elements. This change in strategy brings its own challenges and will result in considerable market shifts in the future.Energy independenceAnother key aspect we have, which is exacerbated with conflicts such as the war in Ukraine, is energy independence. In a society more and more dependent on energy, if you don’t control your supply you’re always dependent on someone else’s whims. Eastern European countries started relying heavily on cheap Russian gas (Germany as an aftermath of Fukushima and the consequent rush to close nuclear power plants) and now we see governments in some of those countries taking “strange political positions” because they need those resources to keep their lights on.If renewables pose a challenge to produce energy when we need it, they do offer something incredible, the ability to produce your own energy. All the sudden we can have countries becoming “rich” because they can now produce their own energy without relying on other nations or suppliers. After all the sun shines everywhere, there is a lot of wind and other renewables going around.Again, in a history riddled with conflict over resources, this can be a big blessing and a pivotal point.Smart gridsFollowing this change in an environment where we start having more and more power plants, distributed generation (where any household can now be a mini power plant) can UTILITIES – “MAY YOU LIVE IN INTERESTING TIMES”Antonio Lisboa, Head of SAP Global Competence Center, EDP ByIN MY OPINION
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