The energy and utilities sector is facing a significant challenge in balancing supply and demand due to the increasing use of sustainable electricity sources. This has led to fundamental changes in the generation mix and customer-facing strategies and processes. The high-voltage electricity network is also being affected, with Transmission System Operators (TSOs) needing to deploy new mechanisms to manage their networks due to higher volatility in supply and demand. While expanding and strengthening the physical infrastructure network is a solution, it is costly and slow to implement. TSOs are therefore exploring additional balancing mechanisms, but there is no silver bullet for this challenge. The impact of this issue is being felt by current market players and will have wider implications.
