Transformations in energy sector that are boosting India’s economy
India’s economic development has been among the fastest in recent years. With ongoing expansion in areas such as building, industry, and transportation, the country consumes massive amounts of energy from natural resources, which have served as the cornerstone of contemporary India’s industrial progress.
With the industries carving the pathway for the future, energy will have a significant impact on India’s economic progress. In the scenario, disruptive technologies and convergent industries are seemingly changing and generating new business models. There is massive competition from other industries, including those that manufacture and supply batteries and engage in the energy sector. To succeed, energy and utility firms must adjust to these developments. Hence, due to the technological advancement and evolving trend towards a sustainable future, the energy and utility industries are experiencing unprecedented upheaval levels throughout the entire value chain.
Green energy paving the way
With hydrogen-based fuels having the potential to transport energy from renewable sources over long distances, from regions with abundant energy resources to energy-starved areas thousands of kilometers away, hydrogen is quickly becoming one of the best options for storing energy from renewable. Rapid geo-economics and geopolitical transformations brought about by the global hydrogen economy could lead to a surge of new interdependencies. Since, hydrogen is altering the geography of energy trade and regionalizing energy relations by indicating the formation of new geopolitical power centres founded on the production and use of hydrogen as traditional oil and gas trade falls.
Furthermore, to make the transition, airports will need to work closely with the rest of the aviation industry, learn from other industries that have successfully implemented hydrogen infrastructure, and make significant investments in hydrogen technology, knowledge development, and human resources.
Green hydrogen, created through electrolysis using renewable energy, is currently scarce and expensive. There will only be a definite demand from the aviation industry, including airports, if supply increases and costs decline, despite expectations for both. Airports may promote the development and supply of green hydrogen by establishing relationships with green hydrogen suppliers through partnerships and even shared investment in hydrogen production facilities.
Changing Customer Expectations
Customers now anticipate a digital engagement with their energy providers due to their interactions with tech-enabled businesses. They are more open to changing connections based on their experiences, have more energy supply, consumption, and lack patience with conventional modes of interaction.
To address the disruptive forces affecting their sector, the energy industry must establish their strategic priorities in four areas.
Strategies Affecting Energy Sector
Enable New Revenue Streams
Energy-related technologies, which are upending the sector, also present new business opportunities and sources of income. At both the utility and consumer scales, the firms must consider how they respond to the tremendous influx of battery storage, and other developing technologies. They must also create new alliances and offers outside the regulated business units.
Improve Customer Engagement
The organizations must adapt to the shifting nature of their interactions and customer expectations. The opportunity presented by digitalization allows energy and the firms to adopt new technologies that enable proactive customer engagement to change behavior and produce better results across all customer lifecycle phases, including marketing, sales, and service.
Increase B2B value
Business clients are now allowed to monitor and control usage beyond the meter with greater detail and accuracy due to new Internet of Things (IoT) technology. The firms have the chance to set up services that let these clients better control their energy consumption. New self-service capabilities can be made available simultaneously to assist customers in better managing their interactions with energy providers.
Innovate to Manage Costs
The organizations can now maintain a safe, dependable, economic, and sustainable level of service despite this drastically changing environment, they need to aggressively deploy innovative ideas and technologies to transform processes and cut costs in their crucial business sectors.
The future of energy is renewable
Renewable energy sources are becoming the standard option for new power plants, especially in developing countries, because of the ongoing cost drop. Concerns about how renewables can completely replace fossil fuels for base-load power production have been raised due to the intermittent nature of energy. However, since the price of lithium-ion batteries has decreased over the past five years, the deployment of energy storage solutions has begun.
As they approach cost parity, governments and private organizations are pushing to install large-scale manufacturing and supply plants for battery production. Reduced lithium battery costs also promote the use of electric vehicles. Raising demand for renewable energy sources to power charging stations. Thus, using more fossil-fuel based electricity to power electric car charging accomplishes little to further the objective of achieving net-zero emissions.
With the transforming nature, it has become an unmineable factor for sectors across industry to adapt the trend and technology to stand out from the competitive edge. Hence, adopting aforementioned strategies such as enabling new revenue streams, improving customer engagement, increasing B2B value, and innovation to manage costs in the energy sector will indeed help in boosting India’s economy.
Views expressed above are the author’s own.
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