The energy system in flux
We often hear that our energy challenge is to resolve the trilemma of security of supply, cost and decarbonisation as though they are all mutually exclusive. Tempus has argued for some time that this is not the case and is merely the result of poor policy in regulatory environments where competition law is not adequately applied. In a transparent, competitive market based on the economic principals of supply and demand it is possible to achieve decarbonisation at lowest cost to customers. Just as generators can push up the price of energy by withholding supply, electricity customers can push down the price of energy by withholding demand. In other words being flexible with when they use energy. As long as customers are able to be helped to become flexible and can help to use their flexibility, the benefits to customers are there for the taking.
To integrate the amount of renewable generation required to have a meaningful contribution to decarbonisation, the key policy goal has to be to develop this flexibility. By flexibility we mean consumption flexibility, and once these opportunities have been exhausted, battery storage. Some gas fired generation will probably be needed in order to transition to a lower carbon grid mix. Over time multiple technologies are expected to be developed that will increase the amount of demand flexibility, leading eventually to the scenario where a zero carbon grid becomes a reality.
Electricity customers around the world will embrace being flexible with their consumption if the rewards for that flexibility are adequate. Removing fossil fuel subsidies that are not available for customers is a crucial goal. To balance our energy system our first priority has to be giving the opportunity to customers to participate and benefit by bringing their flexible consumption to the market.
This has been the mission of Tempus Energy for some time and will continue to be our mission until we have succeeded in changing energy systems around the world so they are cleaner, cheaper and deliver for their customers.