The basic assumptive trends in the energy industry are a cleaner grid and decarbonization. These processes are already underway and will continue to be driven by a convergence in environmental, economic, technological, and geopolitical factors. As fossil fuels become more expensive and less politically viable, the energy sector’s transition to renewables will encompass many auxiliary changes.
A shift away from oil, coal, and, to a lesser extent in the short term, gas, will shake up the sector. The regulatory framework will need to adapt itself to a landscape that includes more distributed energy producers. As the cost of solar keeps dropping, for example, more homes will add power to the grid through roof panels. Correspondingly, DER will expect to be operating in a fair, level, and efficient energy market.
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