Green transition & power market operations

Previous schemes of power capacity developments are useless. RES become more competitive than existing power capacity using fossil fuels. Moreover, use of fossil fuels is related to the high pollution’s emission. That is why power companies operating fossil power plants started the radical reconstruction of business model towards RES and customers’ green needs. Development of RES is the global trend in power industry with main drivers wind and solar power plants. The important issue becomes the necessity of maintaining the reserve capacity in power system in case of low power supply from RES being dependent of the weather conditions. The gas power plants will be replaced by power storage systems and demand side management. The surplus of renewable production shall be also consumed by heating systems and green hydrogen production. The decarbonization of the power sector will be achieved in this way.

The green transition of power industry bases on connection of financial instruments, changes of the market conditions and investments in the fixed assets. The result of the green transition is the decoupling of global economic growth from greenhouse gas emissions. This situation creates strategic risk for power companies that requires reaction in all perspectives of power utilities business that shall be developed by new green products and services meeting new needs and expectations of industrial customers and societies. Green transition generates changes in the power market functioning in the reality of green transition, challenges for power companies, necessary developments in the strategy and business models of the leading power companies in the green strategic shift and strategy developments of power utilities to become successful in the coming green transition business future. Necessary adjustments must take place in the area of funding the operational activity and investments, cooperation with customers, production technologies and power grid upgrade.