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The increasing importance of decarbonisation is contributing to advanced trends emerging from renewable energy sources
2021 promises to be an exciting year for cleantech. By looking closely at the renewable energy sector today, we observe various signs that suggest rapid transformation for future developments. Meanwhile, funding and Research & Development (R&D) is also drastically spiking in the sector. The increasing importance is contributing to various advanced trends emerging from renewable energy sources.
Renewable projects are now starting to compete with conventional power, proving they can replace conventional power in many countries. Even during the pandemic year and an economic recession, many cities, states, utilities and businesses continued to announce or pursue decarbonisation plans. Particularly, governments across the globe were taking various initiatives to nullify carbon-emission as soon as possible. Decarbonisation indicates a transition towards a lean and carbon-free economy by integrating and increasing the share of renewable energy sources. China has now committed to reaching carbon neutrality by 2060. The new Biden administration in the US is also executing plans to rejoin the Paris Climate Accord by investing US$2 trillion in clean energy, and fully decarbonise the power sector by 2035. At a time when everything is at the hype, let us look at some of the renewable industry trends of 2021 that will turn around the way the sector functions.
Energy storage batteries
Energy storage is becoming one of the fastest-growing asset classes in the energy industry. The fall in costs and emerging technological changes are contributing to storage in a better economic manner. It further enables storage to provide multiple functions starting from ancillary grid services to on-demand power. Energy is critical in balancing the important traits between supply and demand and is also the key to tackling the intermittency issues of renewable energy. The updated versions of energy storage are leveraging a smooth and steady power supply even when weather conditions are not suitable for energy generation. Batteries are a vital source of common storage devices used in renewable energy systems. In the future, it is anticipated to move further as both utility-scale and domestic energy storage solutions.
Energy-as-a-Service (EaaS)
The future of renewable energy revolves around technological disruption that is headed by artificial intelligence and the internet of things (IoT). These technologies are leveraging a new concept called ‘energy-as-a-service’ that allows for the transition from selling electricity to selling services such as consumption management, optimisation of production, and tracking consumption. To overcome low carbon technologies, EaaS is used as an application
of the service model for residential and community solar systems. Though still relatively nascent, the EaaS market promises new revenue opportunities, especially, with the continued emergence of distributed renewable energy sources, electric vehicles, smart cities and energy storage devices.
Repowering wind farms
Wind power is the top source of renewable energy. Repowering wind farms involve critical processes like replacing older wind turbines with new ones before the end of the old turbines’ lifetime. Installing new turbines before the old ones expire comes with advantages like more efficiency and power. Additionally, they use the wind in an optimal manner and can provide high yields with better capacity factors. These new turbines are higher and come with longer blades that increase the capacity and electricity generated per turbine along with cost reduction.
Rethinking hydropower
Hydropower has been in existence for a long time. However, the energy source is getting higher recognition at a time when the world is facing climate issues and the environmental crisis. For a very long time, hydropower is seen as a major renewable energy resource for irrigation purposes and the operation of various mechanical devices such as gristmills, sawmills, textile mills, trip hammers, etc. Today, hydropower is contributing to renewable energy resources through its relatively inexpensive and no harmful chemical sources.
Power-to-X
Power-to-X is a futuristic technology that will change the tailwind of renewable energy resources. The energy industry’s focus towards shifting increasing renewable generation capacity to lay the foundation for a future energy system has opened the door for power-to-X technology. Power-to-X is an umbrella term that covers different processes that turn electricity into heat, hydrogen or renewable synthetic fuels. The technology is essential for the environment as it prepares the fuel for propulsion engines carbon-neutral, which bring us to Power-to-X, or more specifically Power-to-Gas.