The energy sector in transition

Climate change, the digital revolution, geopolitical developments - these are all major challenges facing the energy industry. For this reason, the energy sector is undergoing structural change.

Author: Theresa Klein

Published: Last updated:

Category: Industry

1 Min. Reading time
The energy industry is increasingly characterized by far-reaching processes of change. Important topics in this context are energy efficiency, the reduction of CO2, the use of renewable energy sources and the decentralization of energy systems:

Power supply from a few large centralized power plants is increasingly being replaced by power generation from many small, decentralized plants. Decentralization in production, as well as growing shares of renewable generation, is making power systems more volatile. The low marginal cost of small plants generating electricity from renewable energy sources lowers wholesale electricity prices. Consequently, the operation and generation of electricity from coal, nuclear and gas-fired power plants is hardly profitable anymore.

Renewable energies

The expansion of renewable energies is a central component of the energy transition – the desire for greater responsibility and a future defined by sustainability. The most important renewable energy sources are wind, water and solar power. Not only the environmental factor, but also the cost efficiency of renewable energies poses major challenges to fossil energy producers. The finite nature of fossil energy sources and the problem of final storage of nuclear waste are making the production and use of such energy sources increasingly expensive.

Current trends in the energy industry:

  • Accelerated expansion of renewable energies and power grids.
  • Technical developments, such as blockchain and electromobility
  • Efficiency increases in energy generation, storage and distribution
  • Decentralization of energy
  • Increasing urbanization
  • The expansion of zero-emission hydrogen as an alternative to electrification
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