Prices, politics and the global energy market
Decarbonization and electrification are twin trends that have come to define modern energy systems. The power and utilities (P&U) sector, particularly electricity generation, is undergoing dramatic change as a consequence. Renewable energy, both grid-scale and distributed, coupled with the digital revolution, alters the grid’s topology and adds colossal complexity to the electricity supply chain.
The global shift to green energy appears to be picking up steam due to an unlikely prospect: war. Russia’s invasion of Ukraine has triggered an energy shock, leaving countries grappling with soaring oil and gas prices amid rising inflation and supply chain disruptions
Across Asia, volatile power prices have fueled the need for greater energy security with regional governments accelerating their move to greener fuels.
In June 2022, Singapore commenced the first multilateral cross-border electricity trade involving four Asean countries. The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project marks a historic milestone that will see the country importing up to 100 megawatts of renewable hydropower from Laos — the first renewable energy import into Singapore. In South Korea, plans are underway to transform the nation into a hydrogen-based economy.
With seismic changes in the pipeline for the power and utilities (P&U) sector, businesses will need to cope with growing risks and an uncertain future. In the first edition of Plugged In, a power and utilities magazine by KPMG, we highlight challenges faced by P&U providers in an ever evolving, disrupted global energy market and share strategies to build a more resilient and robust renewable energy future.