Energy markets are in a state of flux as the use of electricity and other forms of energy is weakened by lockdowns and other COVID-19-related restrictions. Yet the long-term outlook remains one of global growth in energy and electricity demand, especially in developing countries.

Meeting growing demand and limiting global temperature rises to well below 2°C, as envisaged under the Paris agreement, will require a major transition of the energy system towards renewable and other technologies consistent with net zero global carbon emissions. This will also necessitate significant investment in technologies to balance the intermittency of electricity generation both on the supply and demand side.

Fossil fuel generation, pumped hydro and nuclear have traditionally provided balancing services, together with power trade, where interconnectors exist. Emerging technologies are providing new opportunities to meet the increasing need for flexibility.