Markets

A green future: the energy market in 2023

An unprecedented global energy crisis, caused by the ongoing war in Ukraine and the economic fallout from the pandemic, means that 2022 has not been a smooth ride for both energy suppliers and consumers.

Against the backdrop of a volatile energy market, organizations are thinking ahead and developing more environmentally conscious practices for 2023. Many are investing in sustainable business measures to act more responsibly and help their governments meet net zero goals.

A high priority on this sustainable agenda is decarbonisation – the measures a government or organization takes to reduce its carbon footprint.

At the forefront – and seen as the obvious solution to current challenges – is renewable energy. The main theme of this year’s global climate conference, COP27, was the need to phase out fossil fuels and switch to renewable energy sources.

Many intergovernmental organizations have set targets for the use of renewable energy sources, to ultimately encourage the most efficient use of our energy systems. The EU has set a target to reduce net greenhouse gas emissions by at least 55% by 2030 – one example of standards being set around the world.

There is no doubt that the evolution towards renewable energy sources is well underway. What changes can we expect in the energy market next year, as this transition accelerates?

Reduced reliance on fossil fuels

Worldwide, the phase-out of fossil fuels is set to continue until 2023. According to GlobalData, in the third quarter of 2022 alone, the global number of oil and gas contracts fell by 7% compared to the previous quarter. As more operators continue to demonstrate a commitment to low-carbon energy and seek to offset their emissions, we are seeing green energy projects fast track alongside traditional fossil fuel projects.

Manpower

With this increase in renewable and clean energy projects comes an increased demand for a professionally qualified workforce. At Petroplan, we specialize in talent acquisition for energy operators and projects across North America, Europe, the Middle East and Asia Pacific. As a company, this year we underwent a strategic change to adapt our service offering to adapt to the changing market and meet the demands faced by our clients.

Opportunity in Asia

As we have diversified and expanded our services worldwide to support the energy transition, we have seen particular growth in projects in the Middle East and Asia-Pacific region. There is plenty of opportunity for renewable energy growth in Indonesia, with a record 22% annual growth rate expected for renewables over the next five years. To support this growth, the UK recently announced a new $20 billion plan, along with other G20 countries, to help phase out coal production in Indonesia.

In addition to this increased demand for renewable energy sources, there has also been a revival in the construction of traditional energy projects in Indonesia, China, South Korea, Singapore and Thailand. This is largely due to delays caused by the pandemic, as operators move quickly to meet promised future production volumes. Buoyed by relatively stable oil prices, this will lead to increased demand for labor across all disciplines next year.

Renewable energy

In the area of ​​energy transition, solar, wind and geothermal energy are emerging as primary sources of renewable and clean energy. According to Bloomberg Intelligence, demand for solar energy will grow by 20-30% globally in 2023, as the fastest growing energy source.

With increased reliance on alternative energy sources from fossil fuels – the question arises as to how this energy will be efficiently stored. One fossil fuel alternative, solar, is predicted to become cheaper to install as production expands and production becomes more efficient.

As this happens, all renewable energy storage solutions will become vital in ensuring that energy demand never exceeds production – ultimately creating a balanced energy system.

Innovative technology

To ensure a sustainable future global energy supply, investment in new, clean technology is vital. Digitalization is already accelerating the energy transition by streamlining processes at all levels of the power system to improve energy efficiency. More organizations are expected to adopt and implement digital technologies, such as energy as a service (EaaS) in 2023, in an attempt to improve energy and cost efficiency. Artificial intelligence will also play an increased role in driving the deployment of renewable energy sources by helping control systems to generate energy using fewer resources.

As a recruitment specialist in the energy market, we are experiencing an increased demand for engineers with experience in the new technology required for future energy projects. We will continue to place skilled talent in roles we believe best support long-term sustainable growth, such as engineering, to contribute to a more reliable energy system.

Petroplan has a rich history of delivering renewable and clean energy projects and stands ready to support clients and candidates as investments and reliance on renewables increase. We tailor our support to clients, offering strategic advice to ensure they are supported through the energy transition and have the means to adapt to changes in market demand.

To learn more about Petroplan, visit: www.petroplan.com.

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