Innovation and Transition

25.06.19 ViewsEuropeInnovationPolicyMember Committees

Innovation and Transition

AUTHOR: Helena Kivi-Koskinen, Director, World Energy Council, Finland

Because of climate change mitigation, fossil fuels must be replaced by other energy sources. As we move towards carbon-neutral energy production and consumption, energy systems are fundamentally changing. New systems are decentralised, varied and smart. The change to low emissions is a complex process where everyone's input is needed. Cities, communities, consumers, governments, businesses and societies can contribute to the energy transition.

Innovation and experimentation are key, because the energy systems are complex and the change does not happen in an instant. The world is changing because big data, machine learning, artificial intelligence and block chains open up new opportunities for sustainable energy production and its use. District heating networks serve as a platform for a new. District heating networks can effectively transform into climate-neutral heating. At the same time, heat becomes a way of storing additional electricity generated by windy days.

All these new activities have a significant impact on the energy companies' business models and earnings logic. In the future, energy will not be sold solely on the basis of price and quantity, but customers will buy energy as a tailor-made service for themselves, including equipment and comprehensive solutions based on artificial intelligence.

The World Energy Council promotes different approaches globally, based on new smart technologies, energy storage, electrification or even the hydrogen economy. The diversity of solutions requires networking and collaboration, ie the same things that the organization was founded almost a hundred years ago.

The cost of the digital revolution is the fight against cyber risks and the ever increasing uncertainty about the solutions and future regulation that is needed. The entry of new players into the market is diminishing and old players may fall if not constantly and rapidly developed.

Finland is the world's most advanced user of digitalization in the energy market and in electrical systems. The electrification of transportation is well under way. Finland is also a good environment for testing and testing services. In Finland, there is an energy market of appropriate size, and educated people are rapidly adopting new technologies.

The extensive network recommendations on smart networks shape the Finnish electricity market in a cost-effective and flexible way. We will continue to be concerned that there is a common trust between actors and authorities in solving regulatory delays for cleaner energy and developing international success stories of innovation.

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