Global energy: ten themes for 2023?
This 14-page note lays out our top ten predictions for global energy in 2023. Brace yourself for volatility, a recession due to energy shortages, and deepening bottlenecks on accelerating new…
This 14-page note lays out our top ten predictions for global energy in 2023. Brace yourself for volatility, a recession due to energy shortages, and deepening bottlenecks on accelerating new…
…an increasing risk of blowing ‘investment bubbles’ (pages 2-4) (2) Renewables’ grid volatility is also reaching new levels, creating a new opportunity to absorb excess power supplies (pages 5-7) (3)…
…a different operating state. Third, there is always a danger that the wind drops at the precise moment you want to implement your frequency response, due to natural wind volatility….
…stem from short-term volatility (inertia, reactive power compensation, frequency regulation, <1-minute power drops). This requires short-term energy storage first, in the 2020s and 2030s. Many short term batteries can also…
…same challenge by moving them over a wider space. A key advantage is that a large and extensive power grid smooths all forms of renewables volatility, from a typical facility’s…
…investors that can appraise this risk well. (9) Commodity risk. This risk premium compensates investors for the inherent volatility of commodity markets, which can have deleterious effects on valuations, liquidity,…