Shantanu Jaiswal, head of India Research at Bloomberg New Energy Finance, said today that “renewables have become the most competitive source of electricity – the whole landscape has flipped over in the last five years and we are seeing this transition happening in most of the countries that we are looking at”.
Speaking on the opening day of POWERGEN Asia in Kuala Lumpur, Malaysia, he said that the rise of renewables has come in parallel with a decreasing importance of fossil fuels and predicted that “in the next 30 years, renewables will be able to provide 50 per cent of all electricity and the role of fossil fuels will be to support renewables”.
Jaiswal said that “future power systems will be more volatile – and that volatility will continue to 2050” and added that the key to managing that volatility was greater flexibility, highlighting some markets that are already leading the way, including the UK, Germany and California.
Flexibility was also going to be key for utilities, he said, not least in adapting their traditional business models. He said they would no longer simply supply electricity, bit would also branch out into energy management, electric vehicle infrastructure, microgrids and home monitoring.
“Gone are the days when changes were linear – change is now coming from various directions and the time for utilities to address this is running out,” he warned.
Also from POWERGEN Asia today: Wartsila unveils major new engine