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Understanding The Energy Transition and Flexibility

The energy transition plays a critical role in combating climate change. This shift involves moving from a centralised, fossil-fuel-based energy system to a decentralised, low-carbon system.

To do so, we will have to increase energy efficiency where possible, and electrification will play an important role in doing so. Heating, transport, and processes will be increasingly electrified. This requires investments and poses challenges in terms of operational costs, especially since electricity can still be significantly more expensive than (fossil) fuels.

Renewable energy sources, such as solar and wind energy, are more difficult to predict (volatile) and can experience large, sudden swings in their output (intermittent). It is therefore becoming increasingly challenging to match local, variable production with electricity consumption.

That consumption will increase in the coming years. Most forecasts estimate that by 2050, we will consume twice as much electricity. This is mainly due to the electrification of buildings, vehicles, and industry, with technologies such as (industrial) heat pumps and electric boilers.

To do so, we will have to increase energy efficiency where possible, and electrification will play an important role in doing so. Heating, transport, and processes will be increasingly electrified. This requires investments and poses challenges in terms of operational costs, especially since electricity can still be significantly more expensive than (fossil) fuels.

Renewable energy sources, such as solar and wind energy, are more difficult to predict (volatile) and can experience large, sudden swings in their output (intermittent). It is therefore becoming increasingly challenging to match local, variable production with electricity consumption.

That consumption will increase in the coming years. Most forecasts estimate that by 2050, we will consume twice as much electricity. This is mainly due to the electrification of buildings, vehicles, and industry, with technologies such as (industrial) heat pumps and electric boilers.

A Challenge for the Grid

Due to the rising demand for electricity, our grid infrastructure will also have to be adapted. In some places, the network needs to be expanded or strengthened to ensure delivery to consumers.

Another key challenge is maintaining the balance between the energy produced and consumed at every moment. With an increasingly decentralised system, as well as more variable energy production from wind and solar sources, this will become an increasingly important activity for the stability of the electricity grid.

Flexibility: A New Role for Consumers and Producers

Consumers and companies are taking an increasingly active role in the energy system. Thanks to flexible electrical assets (such as electric cars or heat pumps), they can also participate in the energy system by using or providing energy flexibility. Energy flexibility is the ability to adapt energy consumption and generation to align with fluctuating supply, especially from renewable sources like wind and solar. This flexibility is crucial for balancing the electricity grid, ensuring stability, and maximising efficiency.

By consuming more energy when there is a lot of supply (or inversely), they can also benefit financially from the energy transition. More flexibility in the system is therefore not only good for grid management, but also for consumers.

Who are the key players?

Flexibility requires collaboration among various stakeholders:

Electricity Producers: Generate electricity and gas, primarily from renewable sources.
Electricity Suppliers: Purchase energy and distribute it to consumers.
Transmission System Operator (TSO): Manage the transport of electricity and gas across long distances (e.g., Elia in Belgium).
Distribution System Operators (DSOs): Deliver energy to households and businesses (e.g., Fluvius in Flanders).
Regulatory Authorities: Ensure compliance with market rules and oversee fair energy distribution. In Belgium, these are the CREG (federal regulator), the VREG (Flanders), the CWaPE (Wallonia) and Brugel (Brussels).
Consumers and Prosumers: Actively participate in energy systems, using and producing renewable energy while contributing flexibility.
Aggregators: Combine the flexibility of several prosumers and offer it on the energy market to keep supply and demand in balance

On Watts.Happening, we focus mainly on industrial and commercial consumers and prosumers who wants to optimise their energy consumption to minimize costs and potentially generate additional revenue.

Who are the key players?

Flexibility requires collaboration among various stakeholders:

Electricity Producers: Generate electricity and gas, primarily from renewable sources.
Electricity Suppliers: Purchase energy and distribute it to consumers.
Transmission System Operator (TSO): Manage the transport of electricity and gas across long distances (e.g., Elia in Belgium).
Distribution System Operators (DSOs): Deliver energy to households and businesses (e.g., Fluvius in Flanders).
Regulatory Authorities: Ensure compliance with market rules and oversee fair energy distribution. In Belgium, these are the CREG (federal regulator), the VREG (Flanders), the CWaPE (Wallonia) and Brugel (Brussels).
Consumers and Prosumers: Actively participate in energy systems, using and producing renewable energy while contributing flexibility.
Aggregators: Combine the flexibility of several prosumers and offer it on the energy market to keep supply and demand in balance

On Watts.Happening, we focus mainly on industrial and commercial consumers and prosumers who wants to optimise their energy consumption to minimize costs and potentially generate additional revenue.

Why is flexibility important?

This energy transition, with flexibility at its core, is paving the way for a more sustainable and resilient energy future. By embracing innovative technologies and collaborative strategies, we can achieve carbon neutrality and enhance energy efficiency.