NEW ENERGY, NEW ECONOMY: TAKING A SYSTEM-WIDE APPROACH
Current energy systems are undergoing a process of rapid decarbonisation, driven by decentralised sources of low carbon energy and enabled by new digital technologies. This transition to 'New Energies' will have wide ranging impacts and create new opportunities. It will involve both the adoption of low-carbon energy carriers and the development of technologies, infrastructures, and policies to enable the change. It will create and grow high-value industries in new energy production, delivery, and end use.
There are three large global trends driving the energy transition: decarbonisation, decentralisation, and digitalisation. These trends will affect how energy is produced, delivered, and used. The trend towards decarbonisation will shift energy production at scale towards low carbon technologies and fuels, like renewables and low carbon hydrogen. The nature of new energies will drive the trend towards greater decentralisation of energy production, and hence a critical role for infrastructure to transport and deliver the energy. For example, solar power generation needs to occur in areas with high solar potential, compared to coal-fired power generation which can be located closer todemand centres. Digitalisation will facilitate new ways to deliver and use these new energies, making greater use of digital technologies and sector connectivity to optimise efficiency. highlighting a critical role for infrastructure.
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