23.02.2024

Energy of the future – from energy storage to dynamic tariffs

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Author

Kamil Rakowski

Energy Market Analyst

2024 is not just another ordinary year for the electricity and natural gas sectors. We have entered a period of intense changes, revolutions and adaptations to new challenges and legal regulations. Let's look at the latest trends and innovations that will influence the future of the industry in the near future.

The dynamic development of renewable energy sources (RES) opens new prospects for enterprises. In the face of challenges related to connecting new renewable energy sources to the power grid, storage technologies are becoming an increasingly important element. Hybrid installations combining renewable energy sources with energy storage are developing at a fast pace. This solution not only increases independence from traditional sources and the national system, but also increases the security of energy systems. Thanks to this, the electricity produced from renewable energy installations at the peak of production (e.g. a photovoltaic installation during sunlight hours) can be partially used for current needs, and the rest of the produced energy will go to storage. This will make the owners of such sets more energy independent, regardless of the consumption profile, provided that a sufficiently large generation and storage capacity is built. An additional environmental advantage is the ability to obtain 100% green energy for your company.

Preparing customers' electricity systems to use dynamic tariffs will be an interesting topic in 2024. Although the launch of the Central Energy Market Information System (CSIRE) will not take place in mid-2024, as originally planned, this moment is getting closer. The introduction of a fully functional system will mean that consumers who consume even little energy will have the opportunity to use dynamic tariffs, in which the price will be different for each 15-minute delivery period. The introduction of purchasing automation supported by artificial intelligence to this model will allow for better management of energy flows, prediction of failures and optimization of deliveries. Artificial intelligence will begin to play an increasingly important role in the energy sector, from process automation to advanced analyses. This is not only efficiency, but also the key to understanding market trends. As energy networks digitize, new risks will emerge: cyberattacks. Investments in advanced security systems will become key to protecting critical infrastructure. Reliability of energy supplies will be a priority, and a key aspect in the near future will be the modernization of the network to strengthen its resistance to failures and the diversification of energy sources.

Modern technologies using hydrogen and biogas are gradually gaining importance, constituting an important element of energy strategies. Gaseous fuels, especially liquefied natural gas (LNG), biogas and hydrogen, are becoming one of the key factors in the fight against reducing CO2 emissions into the atmosphere. Electrolysis, a process in which hydrogen is produced, powered by renewable energy, offers prospects for a clean alternative to traditional fossil fuels. Thanks to this, hydrogen will become more important in the context of energy transformation in the near future. Its application covers not only transport, but also industry and the energy sector.

Public institutions are changing their electricity purchasing strategies, moving from a model based on a fixed price to a stock exchange model. Dynamic changes on the market, especially price drops observed in recent months, encourage these entities to adopt a new purchasing strategy. The fixed price, set on the day the contract is signed with the supplier, is often set well in advance before deliveries begin. In a downward trend on the market, such a price quickly becomes unattractive. That is why many institutions choose the stock exchange model. In this model, the recipient - often with the help of an advisor - decides when to purchase part or all of the energy volume, taking into account prices on the Polish Power Exchange (TGE). This approach gives a high probability of obtaining an attractive price for electricity. However, please remember that this involves the risk of unexpected price increases. Nevertheless, a properly planned purchasing strategy can bring savings of millions.

Last but not least are government regulations and energy policy. Changes in the law are intended to support sustainable development and technological innovation. Green transformation is becoming not only a fashionable trend, but also an imperative for companies that want to develop while maintaining ecological balance. The EU CSDR directive imposes obligations on selected companies to create annual sustainability reports, the so-called ESG reports. These reports contain a range of information about the company's impact on elements of E - environment, S - society and G - corporate governance. Information such as carbon footprint, impact on the immediate environment, water consumption will be public, and penalties for unreliable reporting will be similar to those for incorrectly prepared financial reports.

To sum up, energy trends in 2024 are aimed at adapting to the development of the industry towards sustainable development, reducing CO2 emissions, digitalization and dynamic tariffs. For entrepreneurs who want to be at the forefront of these changes, constantly monitoring trends and adapting their business strategy become key elements of success.

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23.02.2024

Energy of the future – from energy storage to dynamic tariffs

The dynamic development of renewable energy sources (RES) opens new prospects for enterprises. In the face of challenges related to connecting new renewable energy sources to the power grid, storage technologies are becoming an increasingly important element. Hybrid installations combining renewable energy sources with energy storage are developing at a fast pace. This solution not only increases independence from traditional sources and the national system, but also increases the security of energy systems. Thanks to this, the electricity produced from renewable energy installations at the peak of production (e.g. a photovoltaic installation during sunlight hours) can be partially used for current needs, and the rest of the produced energy will go to storage. This will make the owners of such sets more energy independent, regardless of the consumption profile, provided that a sufficiently large generation and storage capacity is built. An additional environmental advantage is the ability to obtain 100% green energy for your company.

Preparing customers' electricity systems to use dynamic tariffs will be an interesting topic in 2024. Although the launch of the Central Energy Market Information System (CSIRE) will not take place in mid-2024, as originally planned, this moment is getting closer. The introduction of a fully functional system will mean that consumers who consume even little energy will have the opportunity to use dynamic tariffs, in which the price will be different for each 15-minute delivery period. The introduction of purchasing automation supported by artificial intelligence to this model will allow for better management of energy flows, prediction of failures and optimization of deliveries. Artificial intelligence will begin to play an increasingly important role in the energy sector, from process automation to advanced analyses. This is not only efficiency, but also the key to understanding market trends. As energy networks digitize, new risks will emerge: cyberattacks. Investments in advanced security systems will become key to protecting critical infrastructure. Reliability of energy supplies will be a priority, and a key aspect in the near future will be the modernization of the network to strengthen its resistance to failures and the diversification of energy sources.

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