Compared to traditional methods, the new system envisages a move away from reliance on fossil fuels to one based on new energy sources to generate electricity. It involves gradually increasing the proportion of. Contact online >>
Compared to traditional methods, the new system envisages a move away from reliance on fossil fuels to one based on new energy sources to generate electricity. It involves gradually increasing the proportion of...
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Global economic growth and the electrification of transportation, heating, and industry are primary drivers of the anticipated surge in global electricity demand. Additionally, the development of data centers, notably for AI applications, is also expected to contribute to this increase. At the same time, AI holds considerable potential to introduce efficiencies in both the provision and use of power.
By mid-century, electricity will constitute 37% of global final energy use, a substantial rise from 20% in 2023. This upswing is accompanied by a dramatic shift towards renewable energy, with wind and solar anticipated to generate half of the world''s electricity by 2040 and 70% by 2050. The decarbonization trajectory predicts that nearly 90% of electricity will be sourced from non-fossil sources by 2050.
The growing share of renewable power requires flexibility and a robust system of demand-response: as variable renewable energy sources (VRES) expand ninefold, the need for short-term flexibility will double. Fluctuating demand from sectors like heat and transport calls for new ancillary services such as synthetic inertia products and fast frequency response and adapting market and regulatory frameworks to support these technologies is critical for a sustainable energy future.
A key bottleneck in the energy transition is the expansion of the electrical grid. Global grid capacity needs to grow 2.5 times its current size, with annual expenditure on grids more than doubling to USD 970 billion by 2050. While Grid Enhancing Technologies (GETs) offer potentially significant temporary relief, the long-term solution lies in accelerating the construction of new grid infrastructure and advanced controlling systems, which are currently hampered by permitting timelines, the scarcity of human and material resources, and financial constraints.
Despite a rise in global grid expenditures from 15% to over 25% of annual energy expenditure by 2050, efficiencies in grid technology and increased electricity distribution will likely keep consumer grid charges stable or declining in most regions. Only four out of ten regions might see an increase.
He adds: "The pathway to a decarbonized power system is clear: renewables integration and grid expansion require significant investment, innovation, coordination, and commitment from all players, especially governments. As the world moves towards a greener future, addressing these challenges with a systemic and forward-thinking approach will be essential for a successful energy transition."
DNV''s Energy Transition Outlook 2023 serves as the foundation for this report, with additional insights provided by experts in demand modeling, power grids, new market models, digitalization, and AI. The research delves into evolving market mechanisms, highlighting the importance of flexible and resilient grids. Insights include strategies for market design, addressing congestion, costs trajectories and expanding transmission and distribution networks.
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In the energy industryDNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services. As the world''s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.
China has made a commitment to reach peak carbon dioxide emissions before 2030 and carbon neutrality by 2060. The power sector, which contributes about 40% of the country''s carbon emissions today, is at the heart of climate change solutions and the energy transition.
Recognizing the significance of power decarbonization, China officially rolled out its concept of a New Power System in March 2021, and the concept was later reinforced in top-level Chinese climate policy. The fast-changing global energy landscape added complexity to the discussion of the New Power System. With the 2022 global energy crisis and the domestic power crunch of 2021 and 2022, the thinking around the New Power System was adjusted to better balance short-term challenges and long-term ambitions.
Although stakeholders in China agreed that the New Power System was the key to the zero-carbon future, more detailed and concrete consensus beyond this concept were yet to be determined. This report is built on RMI''s in-depth research and observation, and a series of roundtable discussions with full involvement of key stakeholders in China''s power sector. The report aims to boost confidence and identify commonly agreed challenges and major approaches to support the establishment of the New Power System.
Gaining a comprehensive understanding of the power system is a fundamental step toward the New Power System in China. This report identifies four basic characteristics of the current power system:
Building the New Power System in China will not be achieved overnight: the process will be more like a marathon on an unpaved path. Exhibit below summarizes four main challenges to making a successful transition, eight core propositions for the New Power System buildup, and other key takeaways from the report.
This executive summary report in English is an abridged version of the Chinese report released in December 2022, which can be downloaded from the RMI China website. This report helps align positions among different stakeholders and incentivizes collective efforts across the industry.
About New power systems
As the photovoltaic (PV) industry continues to evolve, advancements in New power systems have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
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By interacting with our online customer service, you'll gain a deep understanding of the various New power systems featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
