Let's talk about ... Business Performance

 

The energy sector is changing enormously. The consequences of this are becoming increasingly clear. Recently we’ve seen that the urgency is increasing and this is resulting more and more in governments becoming involved; because otherwise things are clearly not going to turn out well.

 

We have listed the most important trends and developments and an explanation on the consequences and investments that result from these:

Further growth of renewable energy – More and more countries are pushing and subsidizing the installation of wind and solar energy sources. Thanks to government policy and targeted investments, renewable energy is playing an increasingly prominent role in the energy system, resulting in increasing system imbalances causing costs that must be covered and shared.

Acceleration in the area of energy storage – the need for energy storage solutions is increasing significantly to accommodate the aforementioned system imbalances. Developments in battery technologies and extensive storage projects are evolving rapidly and the number of players wanting to play a role in this is rapidly increasing.

Electrification of all means of transport – under pressure from public opinion, after the enormous increase in the use of electric passenger vehicles in the past years, developments are now also taking place in the field of electrification of almost all other means of transport, such as even heavy trucks. Even the shipping industry is looking for opportunities to electrify. This is supported by government incentives and regulations to reduce transport emissions.

Energy efficiency as a strategic objective – Efforts to increase energy efficiency in buildings, industries and transport are gaining an increasingly prominent place on the list of decision makers within companies and governments. Under pressure from the Corporate Social Responsibility Directive (CSRD) and mandatory ESG reporting, every initiative in the field of smart technologies, more sustainable designs and digitalization is most welcome.

Investments in Green Hydrogen – Hydrogen is quickly emerging as a promising carrier of clean energy for sectors that cannot function with 'just' electricity for their critical business processes. Large-scale investments are taking place in various countries across Europe. The choice is not between Electric or Hydrogen, the mix of both is the answer to the landscape of the future.

Decentralization and energy corporations – The rise of prosumers and energy corporations cannot be stopped and will play an increasingly important and sometimes 'disruptive' role in the developing energy landscape of the future. Issues such as decentralized energy generation, the demand for solutions to enable energy sharing and the development of (local) sustainable projects in communities such as industrial estates, neighborhoods, villages and even streets, are becoming increasingly common.

Digitization and smart networks – Digital technologies and smart software are the absolute enablers of the energy transformation of the coming years. The networks that are still very traditional to this day will undergo a transition towards the smart networks of the future which they will have to become, in order to facilitate all the trends mentioned.

Government and policy – The ambitious goals that lie ahead and the technical challenges that arise from them mean that the government is now becoming increasingly involved in the energy sector, although far too late. This means much more regulation at all governmental levels and authorities as well as on a European scale with serious consequences for consumers, prosumers and (energy) companies. Once governments will have picked up steam, this will again provide further innovation and investments companies can respond to.

Sustainability and circularity – The focus of companies on helping to drive towards a circular economy was once sexy and new, then it became a means to distinguish themselves, and now it is a necessity for everyone and prominently present in every boardroom. The energy sector plays a crucial role in this, where managing energy and everything that happens around it has become much more important than it ever was.

 

'Energy for everyone' not always evident – Who would have ever thought that a connection to the energy grid would be refused. Well, that's happening on a large scale now. 'Energy for everyone' is suddenly no longer evident. However, electricity availability is one of the most critical factors for absolutely every home, business and building. Increasing 'energy security' and the intrinsic flexibility that the system of the future will have to offer against disruptions, will be one of the biggest priorities for the sector.

 

In summary

 

The above trends are meant to provide insights into the dynamics of the energy sector and the areas where investments will take place. The energy system of the future will be different from the one of the past. A more sustainable, flexible and decentralized, but above all layered, system will emerge with significantly more automation and digitization. The energy sector, with all the actors that play a role in it, is developing into one of the most complex sectors in the industry while fulfilling one of the most critical functions. That is why clusters of collaborating companies and organizations will have to work together much more intensively and find each other so they can build the future together.

 

Let's change!

 

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