The transition from fossil sources of electricity to renewable sources is in full progress. In recent years, technologies such as wind and solar energy have shown spectacular cost reductions. Due to government policies such as subsidies, investments in these technologies have increased significantly. In order to meet the climate targets, the demand for green electricity is increasing. As with sustainable mobility, the heat transition in the constructed environment and the industrial sector which strongly focuses on the reduction of industrial greenhouse gases.
Europe is the global leader in the offshore wind sector and is driving the development of offshore wind as a cost-efficient technology. In the Netherlands and Germany, projects have already been awarded to companies who will build these wind farms without subsidy. We expect the sector to grow strongly as the technology has now become competitive compared to other renewable energy sources. In addition to offshore wind, there are also opportunities on land for increased production of renewable electricity. On shore wind and Solar PV are both important technologies in the energy transition. Currently a lot of research is being done into efficient ways to bring together supply and demand, but also to store electricity or convert it into hydrogen, for example.
Subsidies, tenders and tax schemes, as well as regulation on regional planning, may vary from country to country. This increases the complexity of projects for all stakeholders. We can help you in this complex environment by increasing transparency about the project pipeline and regulation in these countries.
Who will bear the risks of the electricity market in a future without subsidies? A solution may be found in corporate PPAs (Power Purchase Agreements). Companies are looking for ways to reduce their greenhouse gas emissions and are increasingly interested in renewable energy projects such as offshore wind. Corporate PPAs enable companies to purchase electricity directly from the producer for a number of years, which provides security to these companies. At the same time, these contracts allow the developers to reduce the electricity market risks of offshore wind projects.
The balance between supply and demand of heat, fuels and electricity is still a challenge with a fluctuating supply of sun and wind. Storage of energy is a potential solution. Think of thermal storage, where electricity is stored in heat or cold and then converted back into electricity. Another common solution is the conversion of electricity into hydrogen ('power to gas'), where the hydrogen can be used in various applications (mobility, electricity, chemicals).
Grid managers are faced with more interactivity and contact with their customers. The future energy consumer will be increasingly involved in how and where his energy is generated. The construction of smart grids is very important for grid managers in this context. Besides, network operators (within the legal frameworks) can play an important role in the energy transition.
PwC will be happy to advise you on issues relating to renewable energy. From evaluating innovative technologies and developing new business models to creating the financial structure for renewable energy projects.
We would like to think along with you about these and other issues. Our experts in Assurance, Advisory, Tax & HRS support businesses, governments and investors in all aspects of sustainable mobility. We do this on the basis of our experience in all the sectors mentioned above and in cross-sector partnerships. Would you like to know more? Contact us to find out how we can realise your ambitions regarding sustainable mobility.
'In addition to having enough renewable energy available, the development of a sufficient network capacity is crucial to realise the energy transition.'
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