Decarbonisation of the energy sector
The decarbonisation of the energy sector based on increasing shares of renewables will remain the most important driver of change in Europe. This trend is propelled by the political objective to counter climate change and build a sustainable energy future, but is also supported by the rapid development and declining costs of renewable technologies themselves. We expect this trend to accelerate - with direct effects both on the required grid expansion and on system operation. The availability of different types of renewable energy at different locations contributes to the sustainability, resilience and stability of the European electricity system as a whole, and increasingly requires the transport of electricity flows over long distances and the interconnection of European electricity systems. In other words: We must be ready for the transmission of electricity over long distances and at the same time be able to cope with the sometimes extreme fluctuations, especially in electricity production.
Decentralisation
"Prosumer" numbers will rise and they will move to the forefront of the electricity system even more, empowered by technologies that allow them to play a much more active role. New technologies, increasing electrification and sector integration also stimulate the emergence of new players such as service providers targeting end-consumers. For example, balancing service providers are exploring the potential of delivering flexibility to different Players along the value chain.
Supranational coordination
The increasing share of renewables and the trend towards more decentralised generation with a much larger number of players is making the behaviour of the power system more variable and complex. In addition, all over Europe we are seeing grid development lag behind rapidly evolving renewable generation. This is causing congestion problems and considerable redispatching costs in some European countries. Given the already high degree of interconnectedness and integration of the European power system and markets, responding to these challenges often requires a supranational approach.
Digitalisation
The fourth trend, which is being introduced at a rapid pace, will accelerate the speed of the decarbonisation and the decentralisation of production. Elia Group expects to see massive amounts of renewables coming online at all levels of the grid, electrification powering activities such as mobility and heat & cooling, more international cooperation, and millions of people producing and storing their own electricity. To respond to this, the Group believes that a new way of managing the future power system is required in order to maximise the Benefits of the energy transition. This will be possible thanks to the digitalisation of the power system connecting all electrical devices and various players in the system. The emergence of new digital technologies will allow new capabilities for improving the gathering, transfer, processing, and visualisation of data, as well as the automation of decisions and actions in managing the power system. Some of these digital technologies include (but are not limited to) the Internet of Things, cloud computing, big data, artificial intelligence and blockchain.