A green future: the energy market in 2023

The unprecedented global energy crisis, triggered by the ongoing war in Ukraine and economic fallout of the pandemic, has meant that 2022 has not been a smooth ride for energy suppliers and consumers alike.

In the backdrop of the volatile energy market, organisations are thinking ahead and developing more environmentally conscious practices for 2023. Many are investing sustainable business measures with the goal of acting more responsibly and helping their respective governments to meet net zero targets.

A high priority on this sustainable agenda is decarbonisation – the measures taken by a government or organisation to reduce its carbon footprint. 

At the forefront – and deemed the obvious solution to current challenges – is renewable energy. A major theme at this year’s global climate conference, COP27, was the need to phase out fossil fuels and transition to renewable sources of energy.

Many intergovernmental organisations have set targets for the take-up of renewables, to ultimately encourage the most efficient use of our energy systems. The EU has set a target to reduce net greenhouse gas emissions by at least 55% by 2030 – one example of the standards being set across the globe.

There is no doubt the evolution to renewables is very much underway. What changes can we expect to see in the energy market next year, as this transition accelerates?

Decreased reliance on fossil fuels

Across the globe, the phasing out of fossil fuels is set to continue into 2023. According to GlobalData, in Q3 of 2022 alone, the global number of oil and gas contracts fell by 7% compared to the previous quarter. As more operators continue to demonstrate commitment to low carbon energy and drive to offset their emissions, we are seeing green energy projects being fast tracked in parallel with traditional fossil fuel projects.

Labour force

With this increase in renewable and clean energy projects comes an increased demand for expertly skilled labour. At Petroplan, we specialise in talent acquisition for energy operators and projects across North America, Europe, the Middle East, and Asia-Pacific. As a company, we have undergone a strategic shift this year to adapt our service offering to suit the changing marketplace and cater to the demands faced by our clients.

Opportunity in Asia

As we have diversified and expanded our services across the globe to support the energy transition, we have seen a particular growth in projects in the Middle East and Asia-Pacific regions. In Indonesia, there is a wealth of opportunity for the growth of renewables, with an expected record annual growth rate of 22% for renewables in the next five years. To support this growth, the UK recently announced a new $20bn plan along with other G20 nations to help phase out coal production in Indonesia.

Alongside this increased demand for renewables, there has also been a resurgence in the construction of traditional energy projects in Indonesia, and China, South Korea, Singapore and Thailand. This is largely driven by the delays caused by the pandemic, as operators move quickly to meet promised future production volumes. Underpinned by relatively stable oil prices, this will lead to an increased demand for labour across all disciplines next year.

Renewable energy

In the energy transition space, solar, wind and geothermal are emerging as the primary sources of renewable and clean power. According to Bloomberg Intelligence, solar demand is set to soar by 20-30% globally in 2023, as the fastest growing energy source.

With an increased reliance on fossil fuel alternative energy sources – comes the question of how this energy will be stored efficiently. One fossil fuel alternative, solar, is predicted to become cheaper to install as manufacturing expands, and production becomes more efficient.

As this happens, all renewable energy storage solutions will become vital in ensuring that energy demand never outweighs production – ultimately creating a balanced energy system.

Innovative technology

To ensure a sustainable future global energy supply, investment in new, clean technology is vital. Digitisation is already accelerating the energy transition by streamlining processes at all levels of the power system to enhance energy efficiency. More organisations are expected to take on and deploy digital technologies, such as energy-as-a-service (EaaS) in 2023, in a bid to improve energy and cost efficiencies. Artificial Intelligence is also set to play an increased role in driving renewables deployment by assisting management systems to generate energy using fewer resources.

As a specialist recruiter for the energy market, we have been experiencing an increased demand for engineers who have experience in the new technology required for future energy projects. We will continue to place skilled talent in the roles which we believe best support long-term sustainable growth, such as engineering, to contribute towards a more reliable energy system.

Petroplan has a rich history of delivering renewable and clean energy projects and stands ready to support clients and candidates as investment and reliance on renewables increase. We tailor our support to clients, offering strategic consultancy to ensure they are supported through the energy transition and have the means to adapt to market demand changes.

To find out more about Petroplan, visit: www.petroplan.com.