Use of power
Our ETO highlights the continued need for energy users to strive for more energy efficient and low-carbon options. Energy efficiency is a low-cost, readily available way to cut carbon emissions, but is implemented far less than available financial returns merit.
Greater electrification will be one solution to achieving net-zero carbon targets for buildings and manufacturing. An increasing number of technical solutions are becoming available, such as heat pumps for low temperature heating and electric arc furnaces for manufacturing. Greater electrical demand from energy users, combined with growing variable generation from renewables, creates opportunities to provide greater value to power markets through DSR, local generation and storage.
In the next five years, the electric vehicle (EV) revolution will see its fastest rate of change, particularly for light vehicles and city buses. This will have a significant impact on the broader energy transition as society moves away from reliance on fossil fuels to a cleaner, sustainable energy system. Importantly for the power sector, it will be one of the main drivers behind increased demand for electricity. In our ETO Model, the EV sector also plays an important role in the integration of variable renewable generation due to the flexibility that will be available from smart charging and V2G services.