To meet national and global climate goals and avoid the most severe impacts of climate change, there is a need for greater use and integration of renewables in all sectors. As more decentralized renewables are integrated into the system, energy production shifts from the transmission system level to the distribution system level and load flows are no longer linear. More and more devices and units are connected to the grid, which not only draws but also stores and feeds in electricity. In addition, energy markets and market participant roles are evolving. Consumers, including businesses and small households, are now generating and consuming their energy and becoming active market participants. All of this makes balancing demand and supply more challenging.
The energy system is going through a huge change in the coming years as we move from a system where you have almost only thermal plants to a system where you have up to 100 percent renewables as some countries and major countries have recently committed to. Industries in Europe. But consuming up to 100 percent renewables increases uncertainty and disruptions in the system. As the complexity of the system increases, so does the need for advanced information, communication, and control systems. All of this calls for more flexibility in the energy system and changes in the way we build and operate our electricity networks and markets. Due to the increase in volatility and uncertainty due to renewables, but also due to increasing markets and the number of assets connected to the grid. We will have a drastic increase in the complexity of grid management. And to deal with this complexity, we need more digital solutions. Digitization of the energy sector is seen as a revolutionary enabler of the energy transition for integrating decentralized and variable renewables to ensure networks.
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