Since the beginning of 2022, the world has been experiencing an unprecedented rise in gas prices due to the surge in the global demand for gas due to the COVID-19 crisis and, more recently, the war in Ukraine.
These circumstances have resulted in an urgency for the development of cost-effective solutions by the energy sector. The market is calling for new technologies and solutions as it faces increasing pressure from various stakeholders to reduce the cost of renewables while simultaneously improving the adoption rate of renewable energy. According to European Environment Agency, the EU has set a goal of ensuring that 32% of its gross energy consumption be derived from renewable resources by 2030. In recent years an increase in investment in green energy start-ups has been observed. Since 2018, Europe and North America have emerged as industry leaders with a growth of more than 67% in green energy investments. Through this article, we are going to have a look at the most promising trends in the technological developments of the energy sector.
Artificial Intelligence and predictive analytics
Artificial Intelligence (AI) has been causing transformative effects in the field of energy and utilities. It is being used to forecast demand and manage the distribution of resources, to ensure the availability of power across the grid while minimizing wastage This is extremely crucial in the renewable energy sector, where there is limited time for storage causing the area of power supply to be restrictive.
According to experts, the near future will reveal further innovations by start-ups employing AI in novel ways, such as the use of AI for energy-specific solutions, predictive maintenance technology for increased efficiency in the creation of renewable energy or improvement in the security of energy grids for preventing cyberattacks.
Energy derived from biomass or biofuel has the potential to generate vast amounts of power. In recent years a strong trend has been observed, attempting to unlock this potential. Bioenergy use in Europe is increasing, having grown by up to 150% since 2000. As of 2021, Germany has the greatest installed capacity of bioenergy in Europe, at 10,449 gigawatts. This represents 25% of Europe’s bioenergy capacity for that year. Many scenarios foresee a massive additional growth in biomass use, with some showing a 70 to 150% increase in the use of biomass for energy generation and material production by 2050. The International Energy Agency predicts that bioenergy will account for 30% of renewable energy production by 2023. According to research, an increase in projects looking at new methods of converting biological matter into energy and practical applications for that energy is imminent.
The Internet of Energy
Traditionally, electric power systems use a central architecture during construction, bringing new challenges to that industry. IoE addresses several of these challenges and offers greater efficiency and optimal design for building energy systems. IoE implements intelligent distribution control of energy transactions between its users. This new paradigm in energy infrastructure involves a significant level of automation for the management of modern technology platforms as well as the financial framework used by the markets to facilitate energy trading & distribution. Artificial intelligence will play a massive role in this, as will other emerging technology trends, such as blockchain. This layer of technology will make it possible for utility companies to conduct real-time, data-driven decision-making and predictive maintenance to drive efficiency while also improving customer experience and satisfaction.
Ongoing concerns about CO2 emissions, climate change and the depletion of non-renewable resources has been the primary component in making green energy start-up’s an emerging industry. There is an enormous amount of innovation and investment being plugged into the renewable energy sector. Many of the innovations in place and in development will impact each other – but they need the right support and commitment from the public and private sectors. The global movement against climate change may be a push in the right direction for the renewable energy market but the current stage is premature yet constantly evolving. One thing is certain though, energy is not just a regular commodity, rather it is a strategic one and is vital to modern society, making the need for improvement in this sector crucial to mankind.