In the past, energy production was centralized, with nuclear power plants, coal, and gas as the main sources. This energy was then distributed directly to businesses and individuals. It was a time when electricity was a scarce resource and prices were relatively stable, with fixed rates, day and night.
Today, we are in a time of energy revolution. The energy market has undergone a drastic shift towards a decentralized model. This means that anyone has the ability to generate energy and contribute to the electricity grid. This shift is being driven by the rise of renewable energy sources, such as solar and wind power.
Net congestion
The electricity grid was developed in the last century with the facilities of the time as a basis; energy was generated centrally and then, via one-way traffic, distributed among consumers and businesses. A bit like a motorway with only exits.
With the growth of renewable energy, and the energy injection that comes with it, the network is suddenly used in two directions. We are all just adding on ramps to that original motorway.
This leads to network congestion in places where a lot of energy is generated. Also similar to, yes, traffic jams. The current network is not able to handle this demand and supply, which means that it has to be modernized at significant cost. A costly necessity that is paid for by the end user.

Electrification
As we try to evolve to energy production without fossil fuels, electrification is increasing.
The growing electrification of sectors such as mobility and heating has led to a greater dependence on electricity, which could endanger energy security.
Energy diversification
To address these challenges, diversification of energy sources has become crucial. The use of alternative energy carriers, such as hydrogen, can reduce dependence on electricity and increase energy security. Energy storage is also becoming increasingly important, with energy storage technologies playing a key role in efficiently dealing with energy surpluses and shortages.
The evolution of the energy market shows that we need to look ahead and adapt to an ever-changing landscape. While decentralized energy generation and diversification of energy sources point the way to the future, it is vital to embrace smart strategies to ensure our energy security and create a more sustainable future.
Kioz offers an integrated solution with advanced energy storage technologies and smart grids, enabling businesses to confidently transition to these new energy landscapes.