The situation energy producers, distributers and industrial consumers find themselves in is by no means easy. They face constant social pressure to decarbonize – and risk ruining their reputation if they appear not to act fast enough. As long as they emit CO2, they have to pay a hefty price for it. Once energy utilities close fossil-fired power plants, they have to manage stranded assets.
Also, renewable energy producers have to ensure a consistent availability of energy – and in order to do so, they may have to curtail output. And as the share of renewable energy increases year over year, operators are challenged to cost-efficiently match energy supply and demand and ensure grid stability.
But a steady flow of energy is non-negotiable: Industry, like many other sectors of the economy, relies on it in order to ensure its operations run smoothly and without interruption. The production of green hydrogen also requires renewable energy sources, but if none are available, energy still needs to be at hand to manufacture it.