The power of flexibility


The cost of electricity generated by solar and wind has dramatically declined. In most regions renewables now represent the majority of newly installed generating capacity. However, as the sun doesn’t always shine, and the wind doesn’t always blow, power systems need to become increasingly flexible, such as matching supply and demand.The threats for today’s utilities are considerable, but so too are the opportunities for those able to transform. Whereas past market reforms have separated the operations of utilities into discrete functions, in the emerging ‘second phase’ of electricity system transformations energy services themselves are likely to be fragmented into smaller functions.

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