For years, interest in the energy transition, the sector’s transformation from fossil-based to zero-carbon systems, has been building. Such an enormous shift takes time, of course, but the pandemic has given the world an opportunity to accelerate it – if we make the right choices.

According to estimates from the World Meteorological Organization, CO₂ emissions worldwide are projected to be 4 to 7 percent lower for 2020 compared to a year earlier, due to restrictions in travel and other activities put in place to stave off the coronavirus. In April, during the peak of COVID lockdowns, CO₂  emissions plunged a record 17 percent.

The risk is that once we move beyond the recent resurgence of infections and get COVID-19 under control, energy demand and emissions could simply return to pre-pandemic levels. For now, there is a window of opportunity to prevent this from happening and set our course for the future.

For the energy sector, I believe this will mean accelerating a series of trends that are already underway: decarbonization, decentralization and digitalization.

1- Momentum for decarbonization

The current trend toward remote working and operations in business will likely continue to grow, not least as a way of managing the risk of future disruptions. Consequently, energy consumption can be expected to fall, supported by sustained energy conservation measures.

2- Empowering people

A key element in accelerating the energy transition is decentralization. This is a shift away from the traditional utility business model, in which monopolist power companies distribute their energy from large power plants to the end-user.

3- Digitalization and ‘serious IT’

Critical to the success of such schemes is digital transformation, which has received a further boost in the wake of the pandemic.

A high degree of sophisticated automation and analytics is needed to manage a system powered by an increasing variety of energy sources.

Source: “Accelerating These 3 Trends Would Reshape The Energy Industry”, Forbes