Due to the damaging effects of fossil fuels on the environment and society, many people now realize that we need to stop using them. This has led to the development of new technologies and the creation of new business models that can help people transition away from these fuels.

Despite the widespread awareness about the harmful effects of fossil fuels, there are still strong financial incentives available to help people make the transition. The global renewable energy market is expected to grow from $880 billion to almost $2 trillion by 2030. Also, the increasing number of people talking about the importance of social and environmental governance has created a huge incentive for people to participate in the development of new renewable energy sources.

The year 2022 is expected to be a record year for the transition from fossil fuels to renewable energy sources. It will also see the emergence of new technologies that can help people meet their energy needs. In addition, various pilot projects and laboratory projects are also expected to be launched in the next 12 months.

1. Electricity Demand Increasing to Pre-Pandemic Levels

After experiencing a significant decline during the first year of the pandemic, global power consumption recovered in the second year. China’s rapid economic growth helped drive the country’s demand for electricity in 2021. Although the rest of the world’s electricity demand is expected to recover in 2022, it’s still expected to be around 2019 pre-crisis levels. By the end of 2022, almost half of the world’s electricity-consuming nations are expected to have reached or exceeded pre-crisis levels.

Although the lock-down measures that were implemented during the pandemic are expected to continue to ease, the global economy is expected to grow at a slower rate in 2022. As the recovery of the electricity demand and real gross domestic product continues, the growth rate is expected to gradually shift closer to pre-crisis levels.

1. Implementing Artificial Intelligence

Artificial intelligence (AI) is being widely used in the energy and utility sectors to improve the efficiency and reliability of their operations. It can help them manage the distribution of resources and ensure that they have the necessary power at the right time and place. This is especially important in the renewable energy sector, where it can’t be stored for long.

According to the World Economic Forum, artificial intelligence will play an important role in the development of the clean energy economy. It will help predict the supply and demand of electricity and improve the efficiency of the various power generation and distribution systems. In addition, the shift toward decentralized models is also expected to require the development of complex AI algorithms. For instance, the integration of solar farms and other small power grids is expected to require the use of multiple networks.

The goal of this strategy is to create an intelligent coordination layer between the various components of the electricity supply chain. This layer will help ensure that the electricity is delivered to the right place at the right time.

In 2022, many companies are expected to start developing new AI-based services that can help consumers make informed decisions regarding their energy consumption. For instance, Likewatt, a startup in Germany, has developed a service that allows consumers to monitor their power consumption in real-time.

1. Growth in Renewables in Spite of Supply Chain Challenges

Despite the various supply chain constraints that have been identified during the past few years, the growth of the renewable energy industry is expected to continue in 2022. Despite the increasing cost of energy, renewable energy is still cheaper than thermal alternatives. Various factors such as the increasing number of corporate initiatives and the rising number of renewable policies are also expected to drive the growth of the market.

One of the main factors that will drive the renewable energy market in 2022 is the increasing number of corporate power consumers. Due to the rising number of these organizations, the procurement of renewable energy is expected to become more transparent. This will allow project owners and corporations to negotiate directly with each other and provide a more effective alternative to traditional government tenders.

In 2021, the number of corporate power buyers signed over 22 TWh of renewable power purchase agreements (PPAs) in Europe. North America was also able to record a record year for these types of agreements. Brazil was also leading the way in terms of the number of contracts that were signed with manufacturing, mining, and refining companies. In 2022, the corporate clean energy procurement market is expected to continue growing.

1. Development of Green Hydrogen Energy

Despite its abundant nature, hydrogen is considered to be incredibly harmful to the environment when it’s burned. This is because it requires the use of fossil fuels to produce and transport its hydrogen. There are various types of hydrogen that are derived from different sources such as coal and natural gas.

On the other hand, green hydrogen is produced by using water and electricity to generate its energy. This process can be carbon-free since the electricity generated by renewable sources such as wind and solar power can be used to make hydrogen. This year, major energy companies such as RWE and Shell announced that they were planning on building a green hydrogen pipeline in the North Sea.

Although it’s not expected to be fully operational until 2035, the European Union is planning on investing 40 gigawatts of renewable power by 2030. This will allow the country to become a leader in the development of green hydrogen energy. In 2022, various companies and organizations are expected to start launching projects related to this fuel source. One of these is LAVO, an Australian startup that created the world’s first hydrogen-powered e-bike.

1. Attention to Infrastructure

As the number of renewable energy projects continues to grow, the importance of maintaining and improving the infrastructure related to this sector will also increase. For instance, in Europe, local opposition to the construction of wind and solar power facilities has been a major issue that has hindered the region’s renewable ambition.

In the US, the Department of Energy launched a series of initiatives aimed at improving the country’s electricity transmission system. One of these is the Building a Better Grid initiative, which aims to encourage the development of high-voltage transmission lines. Climate-related power supply disruptions that occurred in 2021 have also been a major issue that has prompted policymakers to address the issue of grid reliability.

The increasing number of wind and solar power facilities has also raised concerns about the reliability of the electricity system. This issue is attributed to the variability in the electricity supply.

As the number of renewable energy projects continues to grow, the importance of maintaining and improving the electricity system’s reliability will also increase. In addition to providing additional capacity, the availability of spot markets will also be a key factor that policymakers will consider when it comes to improving the electricity system’s reliability. For instance, in China, the government is planning on developing a market-based economic dispatch system.

In Sub-Saharan Africa, several countries have started deregulating their electricity markets and introducing cost-reflective tariffs to encourage the development of new generations and improve the efficiency of their electricity networks.