3 Trends Affecting the Power Industry in 2020 and Beyond
- Jan 27, 2020 12:17 am GMT
This item is part of the Special Issue - 2020-01 - Predictions & Trends, click here for more
The power industry is facing rapid shifts driven largely by the inherent market challenges of integrating renewable energy into power grids. The additional and related challenges of distributed generation are quickly shifting the power landscape, and market participants will certainly feel these effects in 2020.
Here are three power industry trends driving significant change in 2020:
Trend #1: More markets are moving to real-time settlement.
In 2021, utilities traders in Australia will move from 30-minute settlement periods to 5-minute settlement periods — increasing the number of settlements from 48 to 288 each day. As countries and utilities invest in greater renewable infrastructure, the move to real-time settlement is likely to be an increasing reality in other power markets around the globe as well. Already, markets like those in Ireland and the Philippines — driven by increasing reliance on energy sources like wind power — are reshaping markets to prepare.