The energy sector is a fascinating sector that is characterized by many changes. But comparable with other sectors the speed of the changes seems to increase more and more over the years. Main task for the motivated employees of a huge number of participating companies in the energy sector is to take care that seven days a week and 24 hours a day there is always sufficient energy available.
What are the hard facts? Oil, coal and natural gas are still dominating the worldwide primary energy consumption. The percentage of renewables compared with the complete worldwide energy consumption is still rather low. But the estimated growth rates are many points higher than those of other energy sources. And according to a report of the World Energy Council in 2015 the worldwide percentage of renewables in power generation was around 23 per cent, which was quite the same as the percentage of gas, but lower than coal.* Based on a growing world population and the increasing economic growth the energy consumption will still increase in the future (but not to the same extent). Whereas in Germany phasing out nuclear energy will take place until 2022, worldwide the use of nuclear power is expected to increase. Reasons that are given are the increasing energy consumption and the reduction of greenhouse gas emissions. But an analysis and consideration of the total costs of nuclear power including the disposal of nuclear waste is strongly recommended and should lead to another decision, hopefully in the direction of renewables.
On an European level the percentage of renewables is also increasing. But there is a huge difference between the energy mix in the different European countries. Amongst others in Europe there is the target to have a percentage of at least 27 per cent for renewables until 2030. Further main targets of the European energy policy are to create a European energy market and the common work to reduce greenhouse gas emissions and to increase energy efficiency.
The agreed European targets have to be implemented in each European country on a national level. Based on the decided Energiewende there have been many changes in the German energy market until now. There are many new national and international competitors that offer e.g. wind turbines, solar panels, electric cars and IT solutions. And until now there have been remarkable changes regarding the structures, the business fields and business models of many established companies. We face the chances of new ideas, increasing energy efficiency, reduction of greenhouse gas emissions, changing life styles e.g. based on the possibilities that a smart city offers. The customer becomes more and more important. And some consumers are now prosumers, producing their own energy. In addition the citizens also take part in the discussion about the infrastructure. We have the chance to protect our environment in a better way and to build up a sustainable and future-oriented energy system. Networking on a national and international level increases across different sectors. Solutions based on digitalization, e.g. smart home, electric cars, robots, make our life more comfortable.
But very important is to make sure a level playing field for all companies taking part in the collaboration and competition, to prevent e.g. cyber attacks and to guarantee fair prices!
Summary: Worldwide the percentage of renewables is increasing. In Germany the energy sector is characterized by many changes mainly caused by the Energiewende. There are numerous chances to develop new ideas and business models and to protect our environment. On the other hand there are many challenges for the companies to be competitive. The business fields and business models and therefore the organization and processes have to be designed in a future-oriented way. The collaboration on a national and international level plays a more and more important role. And the networking takes place across many sectors. Nowadays energy is a topic for nearly everyone in our society. Politicians design the framework, the rules and give a support for technological progress as far as it is required. And a main challenge of the energy sector is that medium-term and long-term planning that is required to build up or change a reliable energy system has to fit together with the different views not only on European but on a worldwide level that might also change sometimes at short notice. In Europe main targets are to guarantee the reliability, sustainability and affordability of the energy system. This differentiates the energy sector from other sectors and makes the work very challenging, but at the same time fascinating and meaningful!
* Source: Weltenergierat – Deutschland e.V., Energie für Deutschland 2016, May 2016
Dr. Monika Bauch - Management Consulting deals with the energy sector for nearly 10 years. For any support and collaboration that is not only a technical topic or for further questions and remarks please contact This email address is being protected from spambots. You need JavaScript enabled to view it.
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