After the rampant instability of the energy industry last year, much of the world now wonders what the future of 2023 holds for our industry and the price of their bills. Based on historical precedent, it is unfortunate, but the most realistic view is that the big energy companies will fight to keep the market’s prices close to current levels for at least the next two years.

The reason for this is simple: their profits have doubled because of the current prices, and they like profits. The lifespan of their combustible generation assets also approaches retirement due to pressure surrounding their emissions and increased competitiveness from renewables. In order to squeeze as much value out of these assets as possible before the people demand the shift for them, energy companies will resist efforts to lower prices.

However, people have a glimmer of hope on the horizon: battery prices have hit an inflection point and are now economical to install on our grid. These batteries help to create stability, which addresses the primary downside renewable energy has had to date. As the effects of climate change continue to increase, the importance of this timing can’t be understated. With more extreme weather events affecting our grids and daily lives, from heatwaves to torrential downpours, the economics of implementing grid batteries to correct the financial and environmental costs of the past are now a reality.

Renewables are now the countervailing force to the rise in energy prices. Spurred on by the cost of the crisis, local governments, cities, and neighborhoods are making large investments in grid batteries to create more sustainable and cost-effective energy. Even though general prices will maintain themselves for the next couple of years, there will be opportunities for far lower prices for those that seek them out and act upon them.

To further help address the instability caused by the energy crisis, we will also need stronger responses from grid operators and regulators. Regulators should allow additional features to help address the required grid stability to make the transition to renewables faster. Although renewables have increased, the instantaneous effects weather has on all of these generators’ output requires better mechanisms for other parties like battery operators to help correct for this increased variability. As these mechanisms are not yet ubiquitous, we will see the addition of solutions like fast-ancillary-response, behind the meter FCAS, and others. Some countries’ regulators are far ahead of others in this regard, so if common people are looking for indicators of how willing their country/regulators are to lower energy bills, the introduction of these features is a strong indicator.

Overall, despite the likelihood of energy prices continuing to increase for the next couple of years, I am hopeful that the future of sustainable energy is coming more and more into focus.