Balancing tomorrow’s energy grids is a significant power challenge. According to the Bloomberg New Energy Finance report on Sector Coupling in Europe, European countries currently support around 80% of power consumption from unabated fossil fuels. By 2050, that could fall to just 23%. However, in a future energy system dominated by renewable generation and bidirectional power flows, it will take careful and intelligent power management to match energy production with power consumption.
Perhaps the biggest challenge we’re facing comes from the nature of renewable power itself. Solar and wind generation are highly variable—offering intermittent energy production not just as the seasons change, but even day-to-day. Where fossil fuel power plants are highly predictable, renewable generation will be difficult to forecast. But this inherent variability also creates new opportunities.