At this point, there is no doubt that 2020 will be considered in history as one of humanity’s most acute crises year. It was born under the auspices of great signs of wear in the growth models of the main economies and with insufficient efforts (led by European initiatives) to establish effective measures to face the clear and worrying signs of climate change. COVID-19 has arrived in all its rawness and has put everything we know to the test. As we grapple with the health crisis, attempts are being made to lay the groundwork for an economic recovery. A different recovery from those experienced in the past and that carries with it the awareness that we are being given “a warning” of “last call”. With all this, this situation seems to have catalysed the feeling of change… in many areas.

We are living years in which companies reinvent themselves and enter sectors historically dominated by large groups. Thus, it is not uncommon to see news about telecommunications companies offering energy services, or energy into banking services …

Magnus have already been working with companies, suppliers and investment groups for many years in decision-making in energy management (Purchase, sale, efficiency, regulation, innovation, etc …). All decisions made under the premise of uncertainty and the unpredictability of what is going to happen. Regulation, markets, spot, forward, swaps, renewables, cogeneration … Invest? Innovate? Wait and watch?

However, the pressure to innovate and anticipate what is coming has increased the concern of these companies. It is no longer a simple matter of “buying better and cheaper” but of giving prominence to the concept of “sustainability and impact” of our investment decisions.

To the doubts that we already had, “economic feasibility” and “regulatory development” we’ve to add those of “technological maturity”, “sustainability and carbon footprint”. Most of the times, none of the four, do not go hand in hand and despite this, decisions are already being made.

We clearly see that the company that does not have decarbonization plan in its strategy will have little room in the future.

The markets in which we have bought have been giving the necessary signals to encourage investment and support decisions. However, they are not enough to achieve the goals recently approved by the European Commission for 2030-2050. More mechanisms have already appeared and will appear to encourage or instigate companies in decision-making (subsidies, emission markets, CO2 reduction credits …)

A new decade begins in the most traumatic way. They have been years with great changes, but these are dwarfed by what we have ahead of us. Magnus has been publishing some articles over the years to contribute to the knowledge of these changes. In the following list we can see some of the most interesting articles:

jul-15 The unification process of the electricity markets in Europe
ago-15 An uncertain way towards Gas Energy Union
oct-15 New Age of Commodities after China?
nov-15 COP 21 Summit, winds of change in Paris?
dic-15 Paris Cop21. The Force Awakens?
ene-16 The collapse of Oil Prices
feb-16 NUCLEAR ENERGY: Present and Future
jul-26 The challenges of the European Internal Market
nov-16 Where Hillary Clinton and Donald Trump stand on Energy issues
ene-17 Are we on time for the next Energy Revolution?
mar-17 The Shale oil Threat
jun-17 The United States and the Paris Agreement
oct-17 Climate Change:¿How did we get here and what ´s causing it?
nov-17 COP 23: small steps towards the Paris Agreement
feb-18 Happy anniversary Trump
jul-18 The business model of the electric companies: new actors, new roles, new rules
sep-18 European emissions trading system, success or failure?
dic-18 Importance of Conferences of the Parties: COP 24 Katowice
feb-19 The roadmap of the energy transition 2021-2030
mar-19 NUCLEAR BLACKOUT: The milestone that will condition the energy transition
jul-19 European regulations begin to adapt little by little to the 2030 objectives.
ago-19 Biogas in Spain: a lot of potential and no interest
sep-19 Blockchain: The Renewable Energy Democrat
oct-19 CO2 prices in Germany and other countries; is ETS not enough?
dic-19 Climate Change Summit 2019 and the challenges of the energy sector in Spain
feb-20 The Energy Transition and International Conferences
mar-20 Panic in the markets … How does it affect me? What should I do?
abr-20 Pandemics and oil
may-20 The new Law on Climate Change and Energy Transition
sep-20 Petrostates and the art of transition to electrostates
sep-20 The new proposal on the European Green Deal to put forward a comprehensive plan to increase the European Union’s target for 2030

They have been exciting years where we have experienced shocks in the reference markets. Opportunities and risks where, with greater or lesser ability, companies have made their decisions.

Source: MTech

However, what do we do now? There are many companies that resume activity and are in a position to make the next moves knowing that it is no longer just a matter of negotiating the contract for next year. It is about making decisions in the medium long term.

Source: Own elaboration

Without any doubt, these are exciting moments in the sector. Full of uncertainties, where the innovative and daring companies will be part of the leadership in this process. From Magnus we will help all these companies in making decisions and launching new projects.

Alejandro De Roca | Energy Consultant

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