Renewable Energy is a key part of the solution – for many energy companies and for many societies
Renewable Energy is collected from various renewable resources like wind, sunlight, water, geothermal heat or biomass; all of them are replenished on a human timescale and thus, are carbon neutral. All these renewable sources of energy are critical to achieving a sustainable and equitable future. Therefore, governments across the globe are urging their industries and societies to make the transition to renewables as fast as possible Net zero 2050 or before, to quickly adhere to the Paris Agreement on climate change.
Prior to the 2020 pandemic, the industry was aiming for a record year of newly installed renewable energy capacity; but the crisis has disrupted supply chains and planned construction projects had been slowed down, put on hold, postponed or even cancelled. This industry, however, is resilient and will continue to significantly increase the amount of energy generated by green and CO2-clean sources – even during the crisis and especially coming out of it. In fact, renewable energy has been the fastest source of energy production with an upward trajectory in recent years and this will most likely continue.
This huge potential for increasing demand of energy – especially the electrification of industrial and transportation sectors – is accelerating energy industry convergence. Moreover, all major oil and gas companies pursue plans to further expand their participation in the renewable value chain. These trends will foster a change at scale that will allow for new business models and transition within the industry itself.
Participating companies are facing diverse challenges when pursuing this transition. Being the sector with the highest absolute growth rates, huge investments and many complex projects need to be handled in parallel. Each organization, based on their own asset-, product-, and customer portfolios, needs to find a distinct strategy to transform their business- and operating models. Creative adoption of the right technology stacks can result in step changing outcomes.
Agile organizations and mindsets that embrace change and forgive failure will outpace conservative entities. consistency with its experienced energy experts can help to manage these large-scale projects for wind, solar and green hydrogen at pace and in budget. With governments continuing to shape stimulus packages as well as broader economic plans in the field of renewable energy, this offers great opportunities for each player in the segment.
Challenges of the Energy Industry