The current electrical revolution: portrait of a newly emerging architecture in industrialized countries

P Dunsky

doi:10.5194/sapiens-1-87-2008

Abstract

In the short and medium terms, the precise architecture of the industrial world’s electricity system remains hazy. Yet in the long term, it seems quite clearly headed toward a new configuration, rooted in a triad of solid trends: miniaturization, decentralization and the “greening” of power generation. This text describes and explains these trends and their underlying forces, namely the combined effects of technological progress, growing environmental consciousness, the advent of a digital economy and the opening of markets to competition.

Highlights

2 An emerging energy architecture2.1 Technology: miniaturization and decentralization featured2.2 Markets: competition will dominate 2.3 Environment: stepping up the greening and decarbonization process 2.4 Economy: digitalization driving growth
Technological innovations, combined with environmental concerns, the restructuring of markets and changes in the economy draw a new, surprisingly coherent picture of our energetic future. This evolution was predicted by a handful of American and European experts as early as in the 1980s, it is not before the mid 1990s that this transformation of the energy sector became evident to a critical mass of experts and stakeholders in the sector
There is a strong likelihood of future electrical structures becoming an important part of the market economy.5 renewable energy technologies – combined with the sudden end of the nuclear era, resulted in a reversal of the growth trend that took place during the previous twenty-five years

Summary

Introduction

The energetic situation industrialized countries are currently faced with is drastically different from situations experienced in the past. Technological innovations, combined with environmental concerns, the restructuring of markets and changes in the economy draw a new, surprisingly coherent picture of our energetic future This evolution was predicted by a handful of American and European experts as early as in the 1980s, it is not before the mid 1990s that this transformation of the energy sector became evident to a critical mass of experts and stakeholders in the sector. The main purpose of this text is to present a broad picture of the changes taking place in the energy sector, and, indirectly, to give a general idea of the challenges, trends and opportunities on the horizon This overview may provide an input into the strategic thinking process that multiple stakeholders will have to adopt and the political, regulatory, individual and business choices they will have to make in the years ahead

An emerging energy architecture

Environment: stepping up the greening and decarbonization process

Economy: digitalization driving growth

Obstacles on the path

Findings

Overview: mutually-reinforcing factors