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2019 predictions for the California energy market
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2019 predictions for the California energy market

CA (January 29, 2019) – As featured in Energy Central with Karin Aviles, Sr. Manager of Demand Generation & Field Marketing for Centrica Business Solutions and Scott Olson, Director of Western Governmental and Regulatory Affairs for Direct Energy.

These are the trends that will drive change in the California energy market in 2019.

1. Decentralized energy becomes the norm

Energy technology is becoming smarter, and an ever-increasing number of energy-related equipment now connects to communications networks. Much like the growing domain of the Internet of Things, the ‘internet of energy’ is rapidly evolving. This world of connected energy devices and energy generation will continue its march towards decentralization. Power generation will become smart, small, economical, and “right-sized,” and supported by a smart grid that can handle two-way energy transactions. California legislation requiring solar PV installation on new residential construction is also driving this trend.

2. Nobody will say ‘solar’ without saying ‘storage’

Both the economics of energy storage technology and equipment as well as the business case for storing solar energy will drive developers and project owners into a new market reality: if you build utility-scale solar, storage is nearly always included. The cost of solar decreased by 86% between 2006 and 2017, and battery storage technology cost dropped by 72% since 2010 (source: U.S. Energy Information Administration and Bloomberg, respectively). Further cementing the marriage of solar and storage are the improved economics of co-locating solar and storage from the start, the incentives for capital investments in both technologies, as well as the monetization of energy sold back into the grid.

3. Harvesting and leveraging energy information and analytics will become a job function in the C&I segment

When we say a device is ‘smart’ we tend to mean that the device includes digital information capture, processing, and communications capability. As energy technology becomes digitized, users and managers of energy technology will reap the benefits of new and better data insights. The promise of these new insights will create many more well-paying, dedicated energy analytics jobs with titles like Storage Revenue Optimization Analyst, Energy System Machine Learning Manager, and Director of Energy Data Science. Utilities have been unlocking the insights from energy system data for years, and now businesses will do the same to reap the benefits of unprecedented levels of control over energy generation, storage, and management.

4. Decarbonization becomes the mission

2018 brought a slew of initiatives and legislation designed to transform energy in California, including legislation to transition into a 100% greenhouse gas-free economy, standards requiring full electrification of city bus fleets by 2040, and an increase in the cap for C&I direct access. How to accomplish these transitions will be a focus for everyone in this space.

View all 8 trends that will drive change in the California energy market in 2019

Read the full Energy Central article here:

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