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A new energy response to the new energy crisis

There’s a famous saying, “never let a crisis go to waste”. The current energy crisis – while having a terrible impact on many customers – gives the energy sector a golden opportunity to get in shape for the energy transition.

The crisis, being felt to different degrees across Europe, is a consequence of several unrelated factors happening at the same time. Global demand for gas has picked up rapidly, some gas and power facilities have been offline, gas storage levels were lower than normal, and weather conditions resulted in low output from renewables.

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Does the spike in energy prices mean anything for the energy transition?

Energy prices would have moved higher this year due to strongly recovering demand and constrained global supply, but the recent speed and extent of the price increase in gas and electricity prices in Europe has caught everyone by surprise.

I had a look at the statistics made available by the UK’s National Grid and this shows in the UK context at least the energy transition is a factor (see chart). The price spike has happened as electricity demand (A) has sharply increased in 2021 while generation by renewables (B) and nuclear/biomass (C) has decreased. As a result, the UK has needed significantly more generation from fossil (D) and imports (E). It’s a classic case of two big numbers moving in opposite directions at the same time, creating a gap that is large. 

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Engaging different customers in the energy transition

The energy transition is a term familiar to us in the energy sector, and we might talk about the need to lead consumers through it. Yet do we adequately consider what this means for consumers and how this is realistically achieved? Even in countries with the lowest carbon footprints, there is still a range of people with beliefs from climate activists to climate change deniers.

The challenge is to bring customers on and through their own personal energy transitions, when people are at different stages on the journey with different motivations, needs and expectations. Therefore, energy companies need to have great insight into their customers to help them navigate their personal energy transitions.

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The top 10 real-time energy data use cases for residential energy insights

Standard meter data-driven Software as a Solution (SaaS) solutions dominate today’s residential energy insights market.

Energy insights services are at the core of many European energy companies’ customer engagement and digital transition strategies, since they can help consumers understand their energy consumption and participate in the energy transition. Over the past five years, smart meter rollouts across Europe have been a key driver enabling more and more energy retailers to provide energy insights services.

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