The transformation of the energy sector is a multi-decade process driven by policy regulation as well as stakeholder demand and economics, as renewable energy is getting cheaper. There is global consensus that the transition must happen, with the US and China on board as well as the EU and the UK.
PwC has identified five key drivers of the transition, said Thomas Veith, Partner – Leader Real Estate/Real Assets: first, the need for decarbonisation. Second, technological progress which is finding new solutions al the time and leading to a better and more decentralised system of energy production.
The third element is clean air policy, with technology again playing a role in making air pollution reduction more affordable. The fourth driver is environmental concerns about pollution in the oceans and the desire to reverse the damage done to the planet.
The fifth driver, said Veith, is ageing infrastructure. Energy production plants built decades ago are coming to the end of their life and must be replaced by new-generation, multi-centralised renewable energy creation. As Veith said, “there’s a real competition between old and new”.
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