A green future: the energy market in 2023

The unprecedented global energy crisis, triggered by the ongoing war in Ukraine and the economic fallout from the pandemic, has meant that 2022 has not been a smooth ride for both energy providers and consumers.

Against the backdrop of the volatile energy market, organizations are thinking ahead and developing more environmentally conscious practices by 2023. Many are investing in sustainable business measures with the aim of acting more responsibly and helping their respective governments to comply. with net zero emissions targets.

A high priority in this sustainable agenda is decarbonization – the measures taken by a government or organization to reduce its carbon footprint.

At the forefront, and considered the obvious solution to today’s challenges, is renewable energy. A major theme at this year’s global climate conference, COP27, was the need to phase out fossil fuels and transition to renewable energy sources.

Many intergovernmental organizations have set targets for the adoption of renewable energy, to ultimately encourage the most efficient use of our energy systems. The EU has set a target reduce net greenhouse gas emissions by at least 55% by 2030, an example of standards being set around the world.

There is no doubt that the evolution towards renewable energy is underway. What changes can we expect to see in the energy market in the coming year as this transition accelerates?

Decreased dependence on fossil fuels

Around the world, the phase-out of fossil fuels will continue until 2023. According to GlobalData, in the third quarter of 2022 alone, the global number of oil and gas contracts fell 7% compared to the previous quarter. As more operators continue to demonstrate their commitment to low-carbon power and drive offsetting their emissions, we are seeing green power projects accelerate in parallel with traditional fossil fuel projects.

Work force

With this increase in clean and renewable energy projects comes an increased demand for skilled labor. At Petroplan, we specialize in talent acquisition for power operators and projects in North America, Europe, the Middle East, and Asia-Pacific. As a company, we have undergone a strategic shift this year to adapt our service offering to adapt to the changing market and meet the demands our clients face.

Opportunity in Asia

As we have diversified and expanded our services around the world to support the energy transition, we have seen particular growth in projects in the Middle East and Asia-Pacific regions. In Indonesia, there are plenty of opportunities for renewable energy growth, with an expected record annual growth rate of 22% for renewables in the next five years. To support this growth, the UK recently announced a new $20 billion plan together with other G20 nations to help phase out coal production in Indonesia.

Along with this increased demand for renewables, there has also been a resurgence in the construction of traditional power projects in Indonesia, China, South Korea, Singapore, and Thailand. This is largely due to delays caused by the pandemic, as operators move quickly to meet promised future production volumes. Supported by relatively stable oil prices, this will lead to higher demand for labor in all disciplines next year.

Renewable energy

In the energy transition space, solar, wind and geothermal energy are emerging as the main sources of clean and renewable energy. According to Bloomberg Intelligence, solar demand will skyrocket in 20-30% globally by 2023as the fastest growing energy source.

With increased reliance on alternative fossil fuel energy sources, the question arises as to how this energy will be stored efficiently. A fossil fuel alternative, solar power, is predicted to become cheaper to install as manufacturing expands and production becomes more efficient.

As this happens, all renewable energy storage solutions will become vital to ensure that energy demand never exceeds production and ultimately create a balanced energy system.

Innovative technology

To ensure a sustainable global energy supply into the future, investment in new and clean technology is vital. Digitization is already accelerating the energy transition by optimizing processes at all levels of the electrical system to improve energy efficiency. More organizations are expected to adopt and implement digital technologies, such as Energy as a Service (EaaS) in 2023, in a bid to improve energy and cost efficiency. Artificial intelligence will also play a bigger role in driving renewable energy deployment by helping management systems generate power using fewer resources.

As a specialist recruiter for the energy market, we have been experiencing increased demand for engineers who have experience in the new technology required for future energy projects. We will continue to place qualified talent in roles we believe best support long-term sustainable growth, such as engineering, to contribute to a more reliable energy system.

Petroplan has a rich history of delivering clean and renewable energy projects and stands ready to support clients and candidates as investment in and reliance on renewable energy increases. We tailor our support to clients, offering strategic consultancy to ensure they are supported during the energy transition and have the means to adapt to changes in market demand.

For more information on Petroplan, visit: www.petroplan.com.

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