The optimal scenario for the digitization of the energy industry

Accelerated energy transformation is already an economic and political necessity. The length and scale of investment cycles in the energy sector should encourage long-term planning based on comprehensive analyses. It should be assumed that the cost of producing 1 MWh EE from renewable energy sources in 2040 will drop below EUR 30. However, energy prices will be determined by the cost of transitioning from a coal-based power system with balancing based on reserve power sources to a system powered by distributed renewable energy sources and balanced by digital control of energy receivers. These may include, among others: water electrolysers and energy storage. The costs of balancing demand and supply in a system based 100% on renewable energy will depend on the choice of cooperation between market mechanisms and market regulations. Long-term planning will allow you to minimize stranded costs related to abandoning old technologies as well as investments in transitional technologies that will never pay off. Strategic attention to the shape of the mix of wind turbines, photovoltaics and electrolyzers will help avoid overinvestment in, for example, energy storage. We will ask the invited panelists how to reform the energy market so that Poland's energy transformation takes place according to a scenario close to the optimal one.