What are the next big trends in renewable energy that businesses should prepare for?

One significant trend is the decentralization and digitization of energy systems. Traditional, centralized energy systems are giving way to decentralized models, where energy generation, storage, and consumption occur closer to the point of use. This shift is facilitated by the proliferation of digital technologies, enabling smarter energy management and distribution. According to McKinsey, digital solutions can enhance the flexibility and reliability of the electricity grid, integrating more renewable sources and enabling real-time demand response mechanisms. This transformation not only reduces transmission losses but also empowers consumers to become 'prosumers'—producing and consuming energy within their microgrids.

Organizations should consider investing in digital platforms that enable the integration of renewable energy sources into their operations. This includes energy management systems (EMS) that optimize energy use and storage based on real-time data. Additionally, leveraging blockchain technology can ensure transparent and secure energy transactions within decentralized networks, fostering trust among participants.

Real-world examples of this trend include the Brooklyn Microgrid project in New York City, which allows residents to buy and sell locally generated solar energy over a blockchain-based platform. Such initiatives not only demonstrate the feasibility of decentralized energy systems but also highlight the potential for digital technologies to revolutionize the energy sector.

Another pivotal trend is the advancement in energy storage technologies. The intermittent nature of renewable energy sources like solar and wind has historically been a significant barrier to their widespread adoption. However, recent breakthroughs in battery technology are making renewable energy more viable and reliable. For instance, Bloomberg New Energy Finance reports a rapid decline in the cost of lithium-ion batteries, projecting a further 70% reduction by 2030. This cost reduction is making energy storage systems economically feasible, enabling organizations to store excess energy generated during peak production times for use during demand spikes or low production periods.

Organizations should explore opportunities to incorporate advanced energy storage solutions into their renewable energy strategies. This could involve deploying large-scale battery storage systems to mitigate the risks associated with energy intermittency or investing in research and development to explore alternative storage technologies such as flow batteries or compressed air energy storage (CAES).

Companies like Tesla and Siemens are leading the way in integrating energy storage solutions into renewable energy projects. Tesla’s Powerpack and Powerwall systems, for instance, are being used in homes, businesses, and utility-scale projects around the world to store renewable energy, demonstrating the practical applications and benefits of advanced energy storage.

Green hydrogen, produced through the electrolysis of water using renewable energy, is emerging as a game-changer in the renewable energy landscape. It offers a solution to decarbonize sectors where electrification is challenging, such as heavy industry and transportation. The International Energy Agency (IEA) highlights green hydrogen’s potential to play a pivotal role in achieving global decarbonization goals. As technology matures and costs decline, green hydrogen could become a cornerstone of the global energy system, providing a clean, versatile energy carrier.

For organizations, engaging with green hydrogen means considering it in long-term Strategic Planning and investment decisions. This could involve assessing the feasibility of green hydrogen for operations, particularly for those in energy-intensive industries, or exploring partnerships with technology providers and other stakeholders in the green hydrogen value chain.

Real-world applications are already underway, with projects like the Hydrogen Council, a global initiative of leading energy, transport, and industry companies committed to developing the hydrogen economy. In regions like the European Union, substantial investments are being made to ramp up green hydrogen production as part of broader efforts to achieve carbon neutrality by 2050.

Organizations must stay abreast of these trends in renewable energy to remain competitive and sustainable. Decentralization and digitization, advancements in energy storage technologies, and the rise of green hydrogen present both challenges and opportunities. By adopting a proactive approach to Strategic Planning, investing in new technologies, and fostering innovation, organizations can navigate the complexities of the renewable energy transition and emerge as leaders in a greener, more sustainable future.