But digital innovation is part of the solution in the current context of rising energy prices, inflation and scarcity of raw materials. At DIGIO we are working to drive a disruptive energy revolution that you too can benefit from.
What is the reason for the current surge in energy prices?
In social and economic reality, there is never a single cause. Changes in the energy sector follow one after the other, while many current changes are interrelated. The concatenation of these factors has led to the well-known escalation of energy prices that we have recently experienced (and which may be far from abating):
Sudden events, such as pandemic, invasion of Ukraine, geopolitical tensions and rising energy prices.
Long-term trends. These include digitalisation, globalisation and consumer empowerment.
Sectoral structure. The energy mix in Spain and Europe lacks elasticity and has underlying problems.
The main consequence for the energy sector? Continuous price peaks for electricity and its derivatives from 2021 and through 2022.
Negative factors for energy in Spain.
Despite the fact that Spaniards have 40% of primary energy sources that are theoretically renewable, in practice their use is intermittent. When solar activity drops in winter and the wind disappears in summer, the electricity system has to resort to natural gas as a backup source. This is precisely the resource that has become most expensive in recent months.
In addition, before thinking about saving on your electricity bill, you should know that taxes and tolls often account for more than 50% of the total amount of the bill. In short, these are the three major energy problems in Spain:
- Inelastic system.
- High dependence on seasonally unproductive renewable sources and imports of scarce fuels.
- Bill costs doubled by fees and taxes.
Towards solutions from digital innovation.
At Digio we point to three possible courses of action as facilitators of the solution to this problem:
- Structural measures. Reopen the controversial and contentious debate on the use of nuclear energy or fracking: are they really clean, sustainable and profitable in the medium and long term? These are options that should be analysed calmly, assessing the pros and cons in the short, medium and long term.
- Competitive tactics and policies. Work should be done to reduce these additional costs on electricity bills. Further liberalisation of the sector could attract more competition and, with it, more supply, which always leads to lower prices.
Disruption as a vector.
In order to achieve results in the short term, it is necessary to commit to change. In this sense, a determined drive for self-consumption and self-production of energy seems to be the best alternative. Covering the many sunny terraces of our country with solar panels is no longer an aspiration, but a reality.
