David Roberts at Grist had a good post last week summarizing a report by Michael Liebreich in Bloomberg New Energy Finance on the expected changes coming to the energy world in the coming decade:
If you want to get a smart take from two men far smarter than I am on what's on the horizon, I recommend reading both pieces. Here's a key takeaway form David's conclusion:
There's also a nice metaphor from Liebreich comparing the dinosaurs (old technology, old ideas) and mammals (small, networked, adaptable) of the energy world.
The cost of almost every industrial commodity is rising. Copper, steel, aluminum, concrete, you name it. The one thing that’s steadily getting cheaper is computing power. So they key to getting ahead in the market is substituting computing power for other commodities by making systems smarter and leaner.
As we move from the era of dinosaurs to the era of mammals in the energy world, some players will cling to the old ways and perish; others will diversify, focus on resilience, keep their options open, gather intelligence, and thrive. One thing’s for sure: by the end of the century, there won’t be any dinosaurs left. These are exciting times.
Indeed they are. Thankfully we have smart people like Liebreich and Roberts helping to distill these fast-changing and complex ideas. Read both their reports for more.