Solar and wind will dominate electrical generation
By 2050, generation from solar photovoltaic (PV) and wind will be 36,000 terawatt hours per year, more than 20 times today’s output. Together with hydropower, and a smaller contribution from biomass generation, renewables will provide almost 80% of the electricity mix. This generation will be much more geographically dispersed than today’s largely centralized power plants.
The significant growth in generation from renewables will require more production facilities, new power plant locations, and significant investment in grid infrastructure. It will also need the application of storage and other ‘flexibility’ options. Energy users will have increasing opportunities to create additional value through services to the grid, such as demand-side response (DSR) and vehicle-to-grid (V2G), much of it enabled by connected digital solutions, and close to real-time more flexible markets.