[The Vector] Energy Leaders Weigh in on the Future — (Continued from earlier post)

(Continued from earlier post…)

Smart Grid

Implementation of smart grid technology will enable better efficiency and integrate renewable energy sources, say the respondents. They prefer programs that focus first on improving and incentivizing smart grid technology, followed by funding energy efficiency measures.

92% of the respondents favor government incentives to improve control and management of the smart grid technology, and 89% support incentivizing the development of the grid. 85% also favored minimum energy efficiency standards for all products that use energy.

Most of the industry stakeholders believe a smarter grid is critical to our future electricity supply and consumption. In fact, 81% said that smart grid technologies are extremely or very important for the future of electricity, while only 17% said it was somewhat important and 2% not important.

A majority believe the smart grid will be helped by commercialization of high-technology products developed by private businesses, but they see an equally important role for government, through incentives and policy.  Many of the experts see a smarter, more robust electrical system in the future but see the need to bridge the gap today. To achieve this goal, respondents said that government must give the right incentives, technology must be leveraged, businesses must produce and consumers must be educated and brought into the fold.

Energy Efficiency

Many expect energy prices to rise, most believe consumption will rise globally (fueled by developing countries), and many are concerned about environmental impacts. A theme of the respondents seemed to be “the cheapest and cleanest watt of energy is the one that never needs to be produced“ followed by “the next best thing is utilizing that watt more efficiently and delivering it effectively.“

78% of the respondents to the survey indicated that limiting CO2 emissions is the biggest challenge for the next 10 years.

63% said that reducing consumption of electricity among end-users is the most effective way of using electricity efficiently, with 54% of them indicating that efficiency improvements in delivery are important.  Included in this section were respondents who believed better building and construction of new buildings and smart meters can make an impact.

While a majority said limiting CO2 emissions were a challenge for the next 10 years, 61% said that the need for more power is an equally major challenge in the next 10 years.

What did the respondents believe the breakdown of overall energy sources will be 20 years from now? See the chart below. Most see coal, gas and oil reduced from today’s percentages but still dominating.

Global energy markets are no doubt transforming, and many changes are anticipated going forward. The future of energy is pointing towards a smarter grid, more efficient use of energy, an increase in renewable energy and better education of consumers, if the industry leaders are correct. The International Energy Agency predicts that about $1 trillion will be invested into renewable energy and technology by 2030.