The year 2023 has just begun and at least in the energy sector, it looks to be a time of change. Although it is difficult but after consulting with our tarot cards we have seen what the new year might bring to the energy market.
Here are some of our findings for the coming year:
- The continued growth of renewable energy sources: Renewable energy sources, such as solar and wind power, are expected to continue their rapid growth in the coming years as they are much cheaper alternatives to fossil fuels. In Europe, about €70bn should go into investments towards wind and solar power parks, and roughly €37bn in the US. This is also the year that we might start seeing grid congestion becoming a barrier to strong renewables build-out in many regions.
- Increasing adoption of electric vehicles: The adoption of electric vehicles is expected to continue to grow, driving demand for electricity, investments into energy infrastructure, and potentially impacting the energy market. The sales volume of EVs is likely to reach 14 million units in 2023, which is about 17% of cars sold.
- Changes in government policies: Governments around the world are adopting more stringent policies to reduce greenhouse gas emissions, which could lead to changes in the energy mix and the way energy is produced and consumed. From the EU we have REPowerEU and Fit 55. In the United States, the Inflation Reduction Act helps to invest a whopping $370 billion into clean energy production.
- The expansion of interconnections between countries could help improve the stability and security of the energy system and increase the flow of electricity between countries.
- Technological advances: new technologies, such as advanced battery storage systems, carbon capture and storage, and flexible consumption will have an impact on the energy market in 2023. This will add much-needed flexibility to the energy grid and helps to integrate intermittent renewables better.
It is important to note that these are just a few potential trends, and the actual developments in the energy market in 2023 may differ from what is outlined here.