Michael Phelan
CEO, GridBeyond
Challenges in integrating renewable energy, including variability and PPA optimisation, can be addressed with solutions for sustainable power management.
Renewable energy has emerged as a critical component in the global effort to transition towards a more sustainable and environmentally friendly energy landscape. However, as renewable energy sources like solar and wind power become increasingly prevalent, new challenges arise in managing their intermittent nature and integrating them effectively into existing energy systems, according to Michael Phelan, CEO of GridBeyond.
“In today’s world, the efficient and sustainable use of electricity is paramount, which includes finding solutions to manage the strains on power grids,” he says.
Valuing renewable power assets
One of the primary challenges in valuing investments in intermittent renewable power assets lies in assessing their reliability and predictability.
“It’s crucial to evaluate factors like variability of renewable energy sources, the availability of backup systems, and long-term demand projection,” Phelan says. “Providing insights into the market dynamics using software can help companies make informed decisions.”
Market insights, transparency and efficient management strategies help both generators and buyers navigate the complexities of the market and achieve their goals.
Managing energy production fluctuations
Managing the variability in production schedules from intermittent generation sources presents another significant challenge. Unlike traditional fossil fuel-based power generation, renewable energy production is subject to fluctuations based on factors like weather conditions and time of day.
“This variability can lead to imbalances in supply and demand, leading to increased costs and decreased efficiency,” Phelan says. “Strategies to manage these fluctuations include advanced forecasting algorithms to predict energy generation patterns and storage solutions, such as battery technology to store excess energy during periods of high production for use during times of low production.”
Locking in favourable power purchase agreements
Power purchase agreements (PPAs) play a crucial role in facilitating the integration of renewable energy into the grid by providing long-term revenue certainty for renewable energy generators. However, securing favourable PPAs in today’s market can be challenging due to fluctuating demand, regulatory uncertainties and the need for reliable off-takers.
“Market insights, transparency and efficient management strategies help both generators and buyers navigate the complexities of the market and achieve their goals,” adds Phelan.
Integrating renewable power
Successful integration of renewable energy into the grid requires a multifaceted approach. By leveraging advanced technologies and collaborative partnerships, businesses can overcome these challenges and unlock the full potential of renewable energy.
As more companies aim to achieve net zero goals, organisations such as GridBeyond are essential partners providing tools and expertise to enable businesses to transition towards renewable energy sources and meet sustainability goals.