The energy transition explained: towards a sustainable future

24 September 2024

What is the energy transition

To combat climate change, certain climate targets have been set in the Climate Accord. To achieve these goals, CO2 emissions must be drastically reduced. This can be achieved by getting more and more energy from renewable sources. These renewable sources replace the use of natural gas and oil (fossil energy).

Fossil energy is generated by burning petroleum, natural gas and coal, this not only leads to the emission of CO2, but in the long run it also results in the depletion of these same resources.

In contrast, as the name suggests, renewable sources are those that are constantly replenished naturally, such as the wind, the sun, the earth, hydropower and biosmass. In addition, consumption of this type of energy leads to much lower greenhouse gas emissions than fossil energy consumption.

This transition from fossil energy to the energy from renewable sources is called the energy transition.

The role of companies in the energy transition

Both large and smaller companies play an essential role in this transition, although their approaches and contributions may differ due to their size, resources and market influence.

Large companies

Large companies often have more and/or better resources to make effective changes that impact the energy transition. Below, we give some ways in which large companies can contribute.

Investment in renewable energy

By investing in large-scale renewable energy projects, such as wind farms, solar installations or hydropower plants, large companies can make energy needs more sustainable and sometimes even feed energy back to the grid.

Innovation and RD

Companies can also devote resources to research and development of new technologies that improve the efficiency of renewable energy or enable new renewable energy sources. This can range from improved storage technologies for solar and wind energy to innovations in hydrogen production.

Procurement of renewable energy

Large companies have the purchasing power to enter into long-term contracts to purchase renewable energy, also called Power Purchase Agreements (PPAs). This provides security to renewable energy producers and encourages further development of this sector.

Sustainability targets and CO2 reduction

By setting sustainability targets, large companies can reduce their own CO2 emissions. This can be done, for example, through energy efficiency programmes and switching to electric vehicles.

Small businesses

As a smaller company, you may have fewer resources, but you can still make an impactful contribution to the energy transition in various ways. Below, we give you some examples.

Local and small-scale energy solutions

By installing solar panels on buildings or using heat pumps, you, as a company, contribute both to reducing energy costs, and to reducing your carbon footprint.

Flexibility and adaptation

Because small businesses are more agile, they can respond more quickly to new technologies and regulations. For instance, they can switch to electric vehicles faster or implement new energy-efficient technologies in their operations.

Collaborations

By joining together in local partnerships, companies can jointly invest in renewable energy projects. This allows them to reap the benefits normally available only to large companies.

Innovative technologies accelerating the energy transition

Several innovative technologies can be used to accelerate the energy transition. Below we give you an overview of some key technologies currently playing a major role in the energy transition.Technologies that accelerate the energy transition.

Energieopslag

Energy storage allows excess energy, which comes from renewable sources, to be stored and used later when production is low. Battery storage has made much progress in recent years, with improvements in efficiency, capacity and cost.

Besides battery storage, other technologies are being developed, such as gravity storage and thermal storage. These technologies can ensure a stable and continuous energy supply even at times when the sun is not shining, or the wind is not blowing.

Hydrogen

Hydrogen can be produced from water via electrolysis, powered by renewable energy sources. Hydrogen can be used for many applications, including transport, heating, and industry. It can even serve as a storage medium for excess energy. Green hydrogen, produced without CO2 emissions, offers a promising solution for sectors that are difficult to make sustainable, such as heavy industry and shipping.

Watch an explainer video about hydrogen here!

Smart grids

A smart grid, also known as a smart grid, is an electricity network that deploys advanced technologies to efficiently manage electricity supply and demand. It is a smart energy system in which, for example, solar panels, electric vehicles, wind turbines, water pumps and household appliances work together to distribute energy optimally and intelligently.

Future of Energy

The combination of these technologies forms the basis of a sustainable energy system. Energy storage ensures energy security, hydrogen provides a clean fuel option for various sectors, and smart grids ensure efficient and reliable distribution of energy. Together, they make it possible to reduce the use of fossil fuels, lower CO2 emissions and create a sustainable future.

The energy transition remains a challenge, and we are ready to help you with it! Wondering how we can support your organisation towards a sustainable future? Then contact us without obligation. We will look at the possibilities together.