Driven through the disruptive trends of decentralisation, digitisation and decarbonisation, traditional centralised, utility-controlled energy markets are rapidly transforming and innovating to account for: losses posed by future competition from new market entrants in distributed power generation; heightened flexibility and congestion management requirements resulting from high penetrations of variable renewable power integration; increasing emission reduction targets; and greater consumer demand for value added solutions as part of integrated home energy solutions. Key market trends driving, and being driven by, this transformation in 2017 include, but are not limited to: new regulations and incentives targeting climate change and clean fuel agendas; proliferation of distributed energy; rapid growth in demand response; solar PV’s continued growth; digitisation; and microgrid development.
This White Paper will be investigating three of the key markets impacted by these trends, namely:
Rapid scaling in advanced battery manufacturing, responding to a “boom” in the consumer electronics market and the birth of the electric vehicle market, has resulted in rapid declines in battery prices, opening new markets in stationary storage applications for distributed generation.
Demand Response (DR) allows energy consumers to be active participants in energy markets and is a value stream being leveraged by utilities in developing customer centric strategies. By altering consumer demand profiles to fit the requirements of the system operator, DR will result in a flexible and efficient, yet less expensive and lower carbon-emitting system.
A key driver to the previous two trends is the rapid adoption and decline in costs of solar photovoltaics (PV). Pro-solar incentives across the globe will ensure that the market for solar PV continues to grow rapidly to reach $179.13 billion in 2020. Of this, distributed PV is expected to account for approximately 50 percent of the market, up from 35 percent in 2016.
(*) This report, "Disruptive Forces in the Energy Industry" is only available as part of the POWER-GEN & Renewable Energy World Europe conference delegate registration. No cash equivalent is available.
Ross is a senior industry analyst of smart energy systems in Frost & Sullivan’s energy and environment team in London. For the past 10 years Ross has been engaged in industry analysis and strategy consulting for leading global utilities, industrial players, regulators and governments in the energy industry. As part of his on-going work into the market, Ross continuously monitors new market and technological developments in the evolution of the energy sector into a highly flexible, responsive, low carbon, and customer centric industry.
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