Everyone has been watching the latest news out of Texas with bated breath, and after an intense year of wildfires and other forms of extreme weather throughout the country, we are all worried about climate change and how the energy sector will reorient itself to work within this new dynamic.
There are a lot of variables that may affect the electric grid, especially since people are using more energy than ever these days. The following are a few of the key ways in which the sector will try to address these concerns in the near future.
Green Energy Sources Will Grow
Given the growing concerns over climate change, green, renewable sources of energy will be highlighted more and more in the coming years. While studies are still coming up with hard data regarding the reliability and strength of some of these alternative sources, we can safely assume that green hydrogen, produced by electrolysis, will become a bigger player in the years to come. The cost of renewable electricity will eventually become less expensive, and so the market for green hydrogen is ripe and will become a competitive player.
Demand for Energy Will Skyrocket
On a global scale, it is expected that demand for energy will increase to at least twenty percent in the coming twenty years. This is hardly surprising as people become more and more reliant on their devices, and other countries beef up their connectivity power. As indicated an interview with Adam Ferrari Founder and CEO of Ferrari Energy, the impact of growing populations and different countries seeking access to greater sources of energy, the demand will only continue to skyrocket. And, in order to meet the demand, digitization of central infrastructure to help the industry implement different energy solutions will also be on the rise.
Solar Energy
While the reliance on gas and fuel isn’t going anywhere, there will be a continued increase in the use of and reliance on solar energy. Solar energy is proving itself to be the cheapest source of electricity in a lot of countries, and it has a ton of built-in power technology. It is expected that solar energy use will only expand in the coming years, especially since the financing is available at affordable rates. Also, major companies have quite a bit of incentive to invest in solar energy since the risk of low revenue is fairly minimal, and the current policy frameworks are favorable to adopting this form of energy production.
Oil is Making a Comeback
The oil industry has faced quite a backlash in the past few years, and with good reason. However, it is anticipated that this energy source will start to make a comeback as oil-rich countries have been ramping up production as of late. They are interested in making it readily available on a massive global scale, and at competitive price points so that this particular energy source is ready for a post-pandemic world.
It seems too early to anticipate what precisely will happen in the next few years since so much is at play. We are still in the grips of the pandemic, and life may not be back to normal for another year. In the meanwhile, the ways in which people use energy will change quite a bit, but the one thing that is known for sure is that the demand will only increase from here on out.
