Embracing the transformation of the electricity landscape
In this blog post, Kari Suominen, the Chair of eSett's Board, discusses the electrification of society and how the increase in flexibility products will lead to the introduction of new services for eSett customers.
The electricity system is undergoing major changes on many fronts. From our perspective, the most significant ones are the electrification of practically all facets of life and the increase in renewable energy and its implications.
There is no doubt about it: the use of electricity is on the rise. Electric vehicles probably come to mind first as drivers of this change, but the need to decarbonize our society means that electrification is also a growing trend in the industrial sector, one of the biggest users of electricity even now.
Our homes may seem fully electrified, but we do still increase the demand for electricity by using online services and artificial intelligence more frequently. This leads to a growing number of ever-larger data centers, which are becoming major electricity consumers.
And, of course, we live in the North, where our winters are still cold, and we need electricity to keep us warm.
At the same time, the decarbonization drive is changing our energy sources. From steady and reliable but polluting oil and coal, we are moving to wind and solar power generation which are clean but also much more dependent on the weather.
This shift means that we need new flexibility to handle the large and rapid changes in electricity demand and supply. We also need to develop the electricity system to be able to better cope with these changes.
We are already beginning to see the entry of new reserve providers into the market, and new, higher-capacity energy storage solutions are being developed, but we will need a lot more in the future. We are increasing automation and using AI to find new ways to predict and enhance grid management.
For eSett, it is essential to keep up with all the changes taking place and stay at the forefront of settlements. This way, we can contribute to making the market more efficient.
A well-functioning electricity system and market are important to us all, as our society becomes more and more dependent on electricity.