Development Of RES – Important For The Future Of The Global Energy Market

The development of renewable energy sources is crucial for the future of the global energy market, both in emerging and developed countries, says Enel Green Power CEO Francesco Starace

‘We are seeing a constant reduction of costs in renewable energy thanks to technology, which is improving the performance of equipment and production costs,’ said Enel Green Power CEO Francesco Starace in an interview with Enel TV at the Accenture EALA leadership Meeting, which took place on 10 April. ‘Wind and solar energy costs are falling at a fast pace, meaning that they are becoming increasingly competitive in many markets.’

‘It is a continuously evolving market that has specific traits’, he explained, adding that ‘there are two areas can: emerging economies, where renewable energy is growing because electricity demand in general is growing, so that they fill the gap between demand and supply; and another area of developed economies like Europe and North America, where renewable energy is growing because companies can use it to replace the thermal power capacity that they have decided not to use anymore. In both cases there’s a difference in the growth and the pace of the penetration of renewable energy that needs be understood.’

The ability to grow in both these areas is one of EGP’s strong points. Thanks to its technological expertise it can adjust to the peculiarities of both developed and emerging markets, the latter of which have abundant renewable resources and extremely high rate of economic and population growth.

Carlo Alberto Carnevale Maffè, who teaches Business Strategy and Policy at Bocconi University, distinguishes between a cultural and an economic aspect. ‘From a cultural point of view, renewable energy have already won the battle,’ said Maffè at the Accenture meeting. ‘Now the market is aware that renewable energy should be part of the energy agenda and among the choices presented to the user.’

From an economic point of view, the aim is to include renewable energy within ‘an economy of systemic sustainability‘. Smart grids are an excellent example of this concept, and according to Professor Maffè, the strong point of smart grids is that ‘they are not used to convey energy, but rather to achieve efficient economic processes’.

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