The energy market when referring to the electrical power market, or any other energy resources, refers to the market handling process with the trade and provision of energy specifically. This sector is necessary for power and gas supplies, for which it is a fast-growing market with a significant role in global economies making it a very complex sector.
The main aim of this article is to provide a review of the basics regarding the energy markets, concentrating on the importance of the market due to the need in our civilization to generate and transmit electrical energy. The market is now being challenged due to the deregulated energy market which makes it necessary to have competitive energy prices and the environmental need to transition to new energy resources seeking to produce energy with sustainability.
Energy Storage in the Power Market
The rising energy demand creates the need for Energy Management, including Energy Storage Systems (ESS) as one of the processes that become essential. Since energy can be produced in many ways, each type requires a different storage system, which can affect energy prices. The differences between different ESSs, are categorized in aspects such as charge and discharge method, structure, reliability, size, life cycle, and cost. It is also relevant to understand how each ESS works in the energy market.
This creates a fundamental debate that is paramount to both energy producers and energy consumers when trying to understand the electric market, aiming to understand how each type of ESS works in the Energy Market. Due to the challenges associated with the critical issue of energy waste on most of the planet, technology has needed to introduce new types of ESSs, representing an important role in energy saving and use optimization.
Wind Power Energy Storage Systems
Wind-produced energy has become one of the most relevant renewable energy sources, even though one of the main issues with wind energy is that the wind farms do not have a consistent output, and they have a high level of fluctuation since the wind velocity variates abruptly making the system unstable.
Power Systems also face an issue with high variation and lack of consistency of power demand at different hours throughout the day. Taking this into account, the maximum capacity of the energy generation systems is only possible to reach in peak hours, having some of the energy generation systems be out of service in low and medium demand time frames, which affects power availability, increasing energy prices and having investment loss in the energy systems.
This is when Energy Storage Systems become a potential solution to these challenges, reducing voltage fluctuation, and facilitating the level of renewable energy source penetration, resulting in improved quality and frequency of the power, as well as improved reliability of the system, and active and reactive power controls, thanks to specialized ESS for wind farms.
How have Renewable Energy Sources affected the Energy Market?
Renewable Energy Sources have become increasingly influential in the electricity market, forcing energy systems to undergo a tremendous transformation, since the management of the systems has become difficult since the production capacity of Renewable Energy Sources is intermittent. But, since the power market has had an increase in demand for Renewable Energy Sources, the market behavior has changed.
Since Renewable Energy Sources are unpredictable, Renewable Energy Suppliers reduce the energy cost during off-peak hours, which makes it necessary to have Energy Storage Systems adding alternating sources to the network to transfer the energy produced to peak hours, even if produced during off-peak hours. Even though this is an increasing need, the uncertainty in energy rates makes the profitability of the systems debatable for owners and investors. This creates the importance of Energy Storage Systems’ optimal planning to participate in the electric market and increase profit.
Economic Impact of the Deregulated Energy Market
A few years ago, the transformation that is currently undergoing in the Energy Market was not even considered, however, Distributed Generators (DG) have increased. Distributed Generators refer to those technologies that generate electricity closer to where it will be consumed. This has included multiple Energy Carriers in the new infrastructure, resulting in the Multicarrier Multigrid (MCMG) which originated thanks to the Deregulated Electricity Market.
Now, Multi Energy Storage Systems (MESS) have emerged in the market, participating in the market by saving energy at off-peak hours to be delivered in on-peak hours.
What does the Energy Future look like?
The implementation of Renewable Energy Sources and the challenges associated with this new necessity have resulted in the Energy Market being completely renewed, this means that the infrastructure requires to be upgraded and adapted to make Renewable Energy to be available for the public and for it to be both reliable and profitable.
New technologies have arisen, to get adapted to the market requirements, being able to store energy that is produced even when it is not being used for it to be saved to be distributed and consumed when required.
This means that the energy market is in constant change, and is still on its way to better producing energy for all of the population, the competitive deregulated market has allowed the users to determine the path that the market must take, but as every other major economic change, the structural change will take time and is being developed in a way that helps avoid loss of investment and helping it continue to be profitable for energy producers to transition and adapt.
How can you take advantage of the Deregulated Energy Market?
The Electricity Market has become more competitive, which means that you get to choose not only the company that produces the energy you use but also being able to choose the type of energy being distributed to your home, the length of the contract that you will have that rate for, and many other variables that will help you take advantage of the Deregulated Energy Market, by answering a simple survey, we at PowerChoiceNow.com will be able to provide you with a supplier list and plan options to match your needs and give you all the benefits of the Deregulated Electric Market.
If you also want to be more informed on how to take advantage of energy plans, make sure to read this article explaining fixed and variable electricity rates.