Renewable Electricity Supply and Its Role in the Future

Abstract

Renewable energy sources are increasingly gaining significance worldwide in meeting the demands of energy consumption. Emerging as an environmentally friendly and sustainable option, renewable energy plays a pivotal role in the realm of electricity supply. In this article, we will focus on the current status of renewable electricity supply and its prospective role in the future.

Renewable energy sources encompass energy derived from natural resources such as solar, wind, hydroelectric, biomass, and geothermal. These sources have a lower environmental impact compared to fossil fuels and are infinitely replenishable. Consequently, renewable energy is becoming more integrated into the electricity supply system, aligning with goals to reduce carbon emissions and enhance energy security.

Electricity trading involves the purchase, sale, and distribution of electrical energy, comprising various transactions among producers, distributors, consumers, and intermediaries. This sector is a crucial component of the energy industry, exerting significant influence on energy market regulations, energy security, and sustainability.

One fundamental element in electricity trading is energy markets. These markets provide a platform for electricity producers to generate energy from various sources and deliver it to consumers. The aim is to create a competitive environment among buyers, sellers, and intermediaries, ensuring the determination of prices and maintaining the balance between energy supply and demand.

The predominant preference in electricity supply is the utilization of energy derived from renewable sources. To substantiate this choice, we employ International Renewable Energy Certificates (I-REC) to certify that the energy we supply originates from renewable sources. This certification validates our commitment to sustainable energy usage, contributing to the reduction of environmental impacts and fostering the transition to renewable energy.

Another crucial concept, widely utilized in energy markets, is the “spot market.” The spot market is where electrical energy is bought and sold instantly. Prices in this market are typically determined based on supply and demand conditions, allowing electricity consumers to either buy or sell electricity.

Yet another vital aspect in electricity trading is energy derivative products. These products serve purposes such as hedging against future electricity prices, risk management, or speculative trading. Futures contracts, options, and other derivative instruments are used as financial tools in electricity trading.

Additionally, renewable energy sources are gaining increasing importance in energy trading. Renewable energy projects contribute to diversity in electricity trading, supporting environmental sustainability. These projects are often supported by government incentives, green certificates, and various financial mechanisms.

In the future, renewable electricity supply will continue to be a key element in the energy sector. More countries and companies will turn to renewable energy sources to reduce carbon footprints, enhance energy security, and build a sustainable energy future. In this process, policy support, technological innovations, and global collaborations will play crucial roles.

Biography

After graduating from Dokuz Eylül University, Department of Economics, she received training on financial markets. She has knowledge and experience in Stock Exchange and Futures Options Markets.

Since 2017, she has undertaken voluntary duties in YEP-D (Young Economic Policy Designers) economic workshops as a participant, mentor and later as YEP-D workshop manager.

Currently, she works as the Finance Officer of Izmir Electricity Supply Joint Stock Company (İZETAŞ), which was established as a 100% partner of IZENERJİ INC., a subsidiary of Izmir Metropolitan Municipality, which undertakes the mission of electricity supply with renewable electrical energy, and calculates energy supply billing data and also, she works in the fields of green finance and sustainability.