What does the energy transition mean, and how do dynamic energy prices contribute to it?

The energy transition refers to the shift from fossil energy sources to natural energy sources. In other words, the use of coal, oil, and gas for energy generation is entirely replaced by CO2-neutral energy sources such as sun, wind, and water.

On a windy, sunny afternoon, a high peak of energy is fed back into the grid. The energy grid is not yet equipped to handle these peaks and cannot absorb the excess energy. The energy grid becomes overloaded. On a daily basis, one or more of these "energy peaks" occur from natural sources.

The energy transition and dynamic prices

Energy prices fluctuate per hour, and during peak moments when natural sources such as wind turbines and solar panels supply a significant amount of energy, the energy is offered at a low price and, in exceptional cases, may even be offered with additional incentives. Customers with dynamic energy contracts can intelligently take advantage of these inexpensive moments. Thanks to the low prices, these customers are motivated to consume energy during peak times, thereby directly contributing to balancing the energy grid.

Despite limited energy availability, energy is lost daily, which is unfortunate. Dynamic energy contracts make customers aware of energy prices. Everyone then plays a part in accelerating the energy transition by using energy when it is needed.