Smarter grids, greener, and cleaner energy sources, and more customer options are all indicators of emerging trends in the energy and power business
Fremont, CA: Major trends and innovations will define the energy and power sector in 2022, ranging from hydrogen's growing role in the global transition to greener energy, continued gas price volatility, and global supply chain challenges to the push for power generation technology and the rise of smart energy services.
Here are the upcoming trends in the energy and power sector:
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Focus on decentralization and decarbonization
Greater investment in clean and efficient power generation and energy efficiency will continue to be driven by net-zero and sustainability goals. However, in 2022, this tendency will accelerate as increased energy costs make the commercial argument for limiting fossil fuel consumption even stronger. This momentum will be especially strong for the industrial segment, where 80 percent of energy currently comes from fossil fuels. 70 percent of global fossil furnaces are due to be replaced in the next decade.
Rise of energy services
Electricity is no longer considered a product. More utilities and energy retailers are offering new services to harness the full value of distributed generation in terms of load management, consumer choice, and new revenue streams as EV sales, domestic storage, and distributed generation continue to climb. The most innovative merchants in deregulated markets are focusing on 100 percent carbon-neutral energy propositions, smart EV home chargers, and V2G solutions, while an increasing number of enterprises worldwide are moving into solar-plus-storage and smart heating energy-related services.
Accelerated growth of green hydrogen
Green hydrogen investment will increase in 2022 as the hottest industrial topic of 2021 continues to gain traction. As the battle to produce larger, cheaper, and more efficient electrolyzers continue, the industry should expect further announcements from companies like Siemens and MHI on their latest hydrogen solutions. The increase in natural gas prices benefits green hydrogen even more, as the cost disparity between green and grey hydrogen narrowed dramatically in 2021—and will continue to narrow in 2022 as technology advances.