Three major transformations in energy management

Submitted by Sérgio Grassi on Mon, 09/11/2017 - 17:09
transformacoes gestao de energia

The boom in renewable energy, global climate change, and new technologies in the digital world are rapidly revolutionizing the world of energy .On the other hand, many uncertainties surround this market.

See below how your life will be impacted by this new reality.

 

Decentralization

The dizzying increase in distributed generation has caused remarkable side effects in the generation and distribution of the energy. In Germany, the amount of energy generated in distributed form (without centralized management) has been increasing, exceeding the total energy consumption on weekends, forcing the large thermal plants to drastically reduce their generation or even shut down, which is a complex and risky operation. To mitigate this situation, a financial incentive has been created for those energy-generating households that disconnect their systems from the network on weekends.

The storage of energy is another evolving technology in terms of application to distribution systems; energy storage aims to reduce the seasonal effect of distributed generation. Pumping systems with hydraulic generation are still the most used. Other solutions (storage of heat, storage of compressed air, stationary batteries), are becoming increasingly viable and are seen more frequently in our field.

 

Descarbonization

With the rapidly decreasing cost of installing solar and wind power generation, these technologies have become a priority in investments to increase capacity in the global generating plant. One example is the US, where 73% of new generation facilities in 2015 were renewable, compared to 30% in 2010.

What caused this situation was undoubtedly the reduction of costs. In the case of solar, generation costs decreased from $0.25 / kWh in 2010 to $0.08 / kWh in 2015.With wind power the situation was no different; costs went from $0.12 / kWh in 2010 to $0.05 / kWh in 2015.

cost range

 

Greenhouse gas generation goals are increasingly challenging and are mobilizing governments as well as major industries around the world.

Innovations are accelerating in the auto industry. The young company Tesla, the second largest manufacturer of electric vehicles in the world, has surpassed the market value of traditional automakers and already sells models with a 300-mile range. A traditional Japanese automaker has already announced that 70% of its production in 2025 will be electric vehicles.

 

Digitalization

The Fourth Industrial Revolution or Industry 4.0, which encompasses technologies for automation and real-time data exchange, facilitates the implementation of "smart factories" with their modular structures. Cyber-physical systems monitor processes, create a virtual copy of the physical world, and make decentralized decisions. With the Internet of Things, systems communicate and cooperate with each other and with humans in real time.Through cloud computing, services internal and external to organizations are offered and used by participants in the value chain.

Digital systems and solutions are increasingly accessible and are spreading at surprising speed.

Energy management platforms are a reality and have arrived to provide productivity gains for companies of every size. These powerful tools provide adequate data processing, transforming them into information that generates knowledge. Work routines can be automated, saving precious time for management teams. Energy management platforms can act in all phases of the energy and utility management cycle in an integrated way, providing a complete view of the entire process of consumption, generation and emissions of greenhouse gases and even management of energy bills and utilities.

 

Conclusion

In Brazil we still live in an environment with many doubts and insecurities in the energy market .From 1995 to 2013, according to Abrace data, we experienced a surge in regulatory activity that generated 578 changes. The unusually high rate of regulatory change is evident when we compare Brazil with other regions of the world, such as Great Britain, where there were only 6 changes in energy regulation between 2000 and 2016 .Another example is California, where there were only 2 changes between 2000 and 2016.

What also contributes to an environment of insecurity in Brazil is the volume of lawsuits in the energy field. Injunctions and appeals have postponed the completion of privatizations and various auctions.

We can conclude that the changes are accelerating as well as increasing in scope, and the survival of companies is also connected to the ability to follow all that we have outlined above.

Commercial Director, Viridis

Viridis’s Commercial Director. He has worked for 35 years at Vallourec in energy, maintenance, and industrial assembling. He managed the energy and utilities project at the Vallourec & Sumitomo (VSB) plant. He holds a BEng in Electrical Engineering and graduate degrees in Industrial Automation and Business Management. He is a member of CB-116, which developed the ABNT NBR ISO 50,001 – Energy Management standard. He was responsible for making Vallourec the first steel company in Brazil to achieve this certification. He is a member of the Board of Renewable Energy and Oil & Gas at FIEMG.

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