Due to growing concerns about global warming and climate change, we witnessed a shift towards renewable energy last year. Regulations were established by different countries to promote more responsible energy utilization and reduce the wastage of resources.
In 2023, despite a sluggish economy and rising energy prices, the world's energy consumption will only increase by 1.3%. Many nations may be forced to revert to fossil fuels due to declining gas supplies and severe weather, which will slow the shift to green energy. What more can we expect this year? Let’s take a look at a few trends that will influence the transition of energy systems in 2023.
1. Renewable Energy Will Gain Traction
The renewable energy industry has been expanding for some time, and projections indicate that it will continue to grow through 2023. As alternatives to conventional fossil fuels, countries worldwide are spending extensively on solar, turbine, and hydropower. By 2030, it is anticipated that this switch to renewable energy sources will result in a 40% reduction in emission levels in the United States.
2. Green Hydrogen
Due to growing prices and project delays brought on by supply disruptions, trade policy instability, inflation, higher interest rates, and connectivity delays in 2022, the US renewable energy sector's growth slowed down. Many of these difficulties will probably persist beyond 2023, posing formidable obstacles. But due to strong demands and the record-breaking array of renewable energy incentives included in the Inflation Reduction Act (IRA), growth will probably pick up speed.
With the IRA's approval in August 2022, a long-simmering interest in green hydrogen was sparked. In most of the nation, the law's $3 per kilogram tax credit for qualified "clean" hydrogen may enable it to compete on price with "grey" hydrogen with higher levels of carbon.
While issues including an inadequate infrastructure continue to make hydrogen uneconomical for some applications, emerging IRA-driven economics may provide opportunities for producers and providers of renewable power in 2023.
Several important industrial operations, including the production of steel and cement along with conveyance and heating, could be transformed by developing more affordable and practical green hydrogen energy.
3. Smart Grids
Another important element in the energy sector that will last through 2023 and beyond is smart grid technology. The requirement to construct adaptable, contemporary energy grid architecture has sparked the growth of smart grids.
Smart grids integrate cutting-edge sensors and automated systems to improve efficiency and decrease waste in electricity distribution networks. This improves resource management for utilities and boosts dependability by decreasing outages brought on by problems like overburdened circuits or faulty equipment.
Energy Trends In New York
Look no further than Slattery Energy Consulting Group if you live in New York City and need an energy consultant. Offering full-service energy consultancy, Jim Slattery, draws on several years of knowledge. He has cultivated ties with significant figures in the energy industry while working with both small and major property owners in the NY region.
Jim has worked on behalf of manufacturers for his clients for the last 32 years. He currently represents owners and management companies in utility contract negotiations, energy bill reduction efforts, and a variety of other matters, such as zoning compliance and construction efficiency.