Renewable energy has impacted global shift from the use of fossil fuel to renewable energy like solar and wind energy. Additionally, the countries that depended on oil as a factor for economic growth are necessitated to look for other primary sources of economic growth. The clean energy sector addresses climatic conditions which are polluted by fossil fuel used in vehicle industries and other power plants. The International Energy Agency stated that renewable firms contribute significantly to global energy production. Likewise, the world pandemic caused by COVID-19 has resulted in a drop in the oil prices to $30 for every barrel.
As the countries shift to renewable, German has over the past 20 years promoting the production of clean energy. The goal is to entirely rely on renewable for energy production, thus minimizing carbon emission. However, the goal proves more challenging due to weather fluctuations caused by climate change. Likewise, different season produces a varying amount of solar, wind, and hydro energy that resultantly yield to a fluctuated current that is unreliable to the power grid.
On the other hand, the Energy Watch Group (EWG) recently submitted a proposal that seeks to create a reliable source of green energy despite the weather changes. The clean energy can then be utilized by hospitals, companies, or neighbours who desire to produce individual electricity independent of the standard grid system. EWG proposed that if renewable power is combined and functions as a unit, then a storage system can be provided equipped with a digital management system. The proposal also states that the small energy companies should be issued with a merged energy plant compensation that will support their growth. Analyst tabulates that a fee of 8 cents in every KW is efficient to run the investment.
Additionally, the primary power plants following the EU laws will be supported by a sliding market premium that will couple the electricity market. The proposal aims at combining the renewable energy company’s power into a unit and storing the energy in a digitalized form. Consequently, this will ensure that energy runs throughout the season and the cost of maintaining the power plant is derived from selling the units at eight-cent in every kilowatt. Hans-Josef stated in a conversation with EURACTIV that though the proposal is legit and presents a good investment for the company and the government, the market push still lacks; hence the project only remains a proposal. The proposal is deemed as a miracle since merging companies for transformation in the energy market is impossible.