Energy sharing will be one of the trends of our generation
Life is getting more expensive. However, that doesn’t stop us from consuming more, with negative consequences for the climate. Sharing can offer a solution. Our economy is therefore undergoing a transformation from a traditional to a sharing economy. Think of things like intergenerational living, co-working, car sharing, and so on. ‘People can also share energy; for investors it’s best to be in on that trend from the beginning,’ says Jonas Theyssens of KBC Asset Management.
"We not only need to consume less energy, but also to use it differently. Since the Industrial Revolution, our energy consumption has grown exponentially. We are still mainly reliant on fossil fuels, but we are now fully aware that this is bad for our planet and that the Earth’s natural resources are being depleted," says Jonas Theyssens, Equity Analyst at KBC Asset Management. In theory, 'sharing' energy is already possible. In practice, however, we are still bound by the current limitations of the energy grid and regulation.
Everyone can share energy
“The rise of green energy means anyone can generate your own energy, including you and me," explains Theyssens. "There will be times when you generate more than you consume. It has recently become possible to share these energy surpluses with other people, give them away or resell them. In a nutshell, you share the energy you have generated with others who are facing an energy shortage at that moment."
"There are different kinds of energy sharing", Theyssens continues. "First, you can share energy with yourself, for example if you have multiple properties. Secondly, you can share energy in a communal building, for example sharing solar or wind energy in an apartment building. And thirdly, it has recently become possible to share energy in an energy community. Local governments, businesses or citizens then join forces to invest in renewable energy together."
The big advantage is the relatively low cost, which also allows lower-income families to be part of it. This means that people who don’t have the space to install solar panels, for example, can also be involved. "The whole of society can participate in the energy transition. So everyone can do their bit and reap the benefits at the same time. Of course, you have to make proper arrangements and ensure it’s written down and above board, but from a technical perspective you don't need much more than a digital meter. The long-term challenge is much bigger for network operators and energy suppliers than for ordinary citizens.’"