Due to the damaging effects of fossil fuels on the environment and society, many people now realize that we need to stop using them. This has led to the development of new technologies and the creation of new business models that can help people transition away from these fuels.
Despite the widespread awareness about the harmful effects of fossil fuels, there are still strong financial incentives available to help people make the transition. The global renewable energy market is expected to grow from $880 billion to almost $2 trillion by 2030. Also, the increasing number of people talking about the importance of social and environmental governance has created a huge incentive for people to participate in the development of new renewable energy sources.
The year 2022 is expected to be a record year for the transition from fossil fuels to renewable energy sources. It will also see the emergence of new technologies that can help people meet their energy needs. In addition, various pilot projects and laboratory projects are also expected to be launched in the next 12 months.
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Electricity Demand Increasing to Pre-Pandemic Levels
After experiencing a significant decline during the first year of the pandemic, global power consumption recovered in the second year. China’s rapid economic growth helped drive the country’s demand for electricity in 2021. Although the rest of the world’s electricity demand is expected to recover in 2022, it’s still expected to be around 2019 pre-crisis levels. By the end of 2022, almost half of the world’s electricity-consuming nations are expected to have reached or exceeded pre-crisis levels.
Although the lock-down measures that were implemented during the pandemic are expected to continue to ease, the global economy is expected to grow at a slower rate in 2022. As the recovery of the electricity demand and real gross domestic product continues, the growth rate is expected to gradually shift closer to pre-crisis levels.
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Implementing Artificial Intelligence
Artificial intelligence (AI) is being widely used in the energy and utility sectors to improve the efficiency and reliability of their operations. It can help them manage the distribution of resources and ensure that they have the necessary power at the right time and place. This is especially important in the renewable energy sector, where it can’t be stored for long.
According to the World Economic Forum, artificial intelligence will play an important role in the development of the clean energy economy. It will help predict the supply and demand of electricity and improve the efficiency of the various power generation and distribution systems. In addition, the shift toward decentralized models is also expected to require the development of complex AI algorithms. For instance, the integration of solar farms and other small power grids is expected to require the use of multiple networks.
The goal of this strategy is to create an intelligent coordination layer between the various components of the electricity supply chain. This layer will help ensure that the electricity is delivered to the right place at the right time.
In 2022, many companies are expected to start developing new AI-based services that can help consumers make informed decisions regarding their energy consumption. For instance, Likewatt, a startup in Germany, has developed a service that allows consumers to monitor their power consumption in real-time.