What Do Energy Companies Focus on? 

Energy companies focus on generating, producing, and delivering different forms of energy to consumers, including oil, gas, renewable energy, and electricity, and balancing fossil fuels with sustainable options, such as solar energy. Traditionally, the primary role was delivering energy. However, they are now evolving into a new sector that balances fossil fuels with sustainable energy like solar, wind, and other renewable sources to reduce their negative impact on the environment and to further support long-term sustainability. 

Encountered Problems of Renewable Energy

While renewable energy diversifies energy supply and reduces air pollution, its output can fluctuate based on environmental conditions. Intermittent renewable energy refers to power sources executed through natural processes and are subject to the condition of the environment, namely solar and wind power, which only generate electricity when conditions are favorable. As a result, energy production from solar and wind farms can vary significantly, in some systems ranging from 0 to 24GW of power during peak periods. Although these periods provide a substantial amount of electricity, this variability is a defining characteristic of renewable energy intermittency. The increased variance of energy supply introduces risk to the electricity system because the inability to provide adequate supply to meet the demand could possibly result in widespread power outages, in which a large number of consumers fail to receive power. Consequently, intermittency has always been an issue limiting the growth of renewables, but the development of high-capacity batteries for storing quantities of power has begun to address the crisis by storing excess energy during peak periods.
On the other hand, grid instability triggered by intermittency could also reduce system inertia and result in real-time imbalances between load and generation. A stable grid transmits the same amount of energy as its user consumes in order to ensure a continuous supply of electricity to homes and businesses. Renewable energy systems do not provide grid stability as effectively as non-renewable energy sources. As a result of the introduction of renewables, the grid loses inertia, which provides a tendency for machines to remain rotating in large rotating generators or industrial motors, potentially leading to instability. Unstable power grids can experience voltage fluctuations, which tends to affect the operation of sensitive or critical electrical equipment, from medical devices to industrial control systems. In essence, despite the environmental benefits of renewable energy sources, the current drawbacks of intermittency and instability should be promptly addressed, which is where energy conservation systems come into play in the modern era. 

Picture of solar power plant. Source: 

Taiwan Power Company

Governmental Requirements 

ESG  

Due to rising temperatures and pollution, the government has taken action to promote green businesses to maximize both production and sustainability. Businesses in Taiwan are required to meet the basic requirements of the three main factors: environmental, social, and governance. Each company in Taiwan assesses its own contribution to sustainability, striving towards the goal of net zero emissions, societal benefits, effective governance, etc. Through the establishment of the three goals, the government aims to ensure the sustainable development and growth of the industry. Simultaneously, the government has implemented ESG standards to sustain competitiveness in the market, maximizing product value. Environmental regulations ensure that the company responsibly manages waste control and energy consumption, preventing overproduction. Companies should also contribute socially, not only meeting the community's needs, but also ensuring a safe environment for company employees. Green businesses are urged to stabilize their supply chains in the market, managing the risks and demands in the market. Governance is also a crucial pillar, since it encourages sufficient company regulations, maintaining company integrity and reliability. The governmental aid for companies that have failed to meet the standards and evaluation of ESG will be removed to facilitate the promotion of sustainable companies. 

Climate Law 

Climate law is a set of rules that the government establishes to counter climate change and look after the environment. The Climate Change Act of 2008 in the UK states that the country has to reduce the pollutants released into the air and achieve net-zero emissions by 2050; through setting a specific, quantitative goal, climate laws like such act holds companies accountable for their consumption and waste production levels. Such a legislative approach, hence, encourages energy institutions to harness more renewable energy sources like wind and solar power, etc. One of the most widely known tools of enforcing climate laws is carbon tax, which requires companies to pay for emission production, thereby serving as a forceful approach that stimulates more careful regulation of their energy consumption. This policy yields to a significant advantage of the climate laws: the stimulation of state-of-the-art ideas, which are enabled thanks to government subsidies for companies working on low-carbon energy, storage technologies, and sustainable infrastructure. The deal helps governmental institutions to find new ways pathways of energy production that minimize harm to the environment. Climate regulations provide sustainable alternatives; not only do they encourage cautious energy consumption behavior, they are also key to making sure that companies are doing their part to reduce carbon dioxide emissions. In the long run, by setting clear goals of sustainability, climate laws create certainty for businesses and investors, guiding the transition toward a low-carbon economy while safeguarding ecosystems and public health.

EIA 

The Environmental Impact Assessment (EIA) is a procedure that has to be done before big energy projects can start. The test assesses a project's effect on the environment, such as the air we breathe and the water we drink. The test also challenges the impact on wildlife and ecosystems. They also consider the noise larger projects will create. Big energy projects like power stations, wind farms, or battery storage factories usually require an EIA. The assessment stalls potential harm by establishing early-action when mechanisms fail. The Environmental Impact Assessment is a subset of making sure energy projects, like power stations and wind farms, do not hurt the environment. For example, the Hornsea Offshore Wind Farm developed by Ørsted, a Danish multinational energy company, completed an EIA to study its effects on marine life, seabirds, and nearby coastal communities. The assessment led to measures such as careful site selection, construction timing to protect wildlife, and ongoing environmental monitoring, which all together helped ensure that environmental risks were minimized and that the project was executed in a safe, responsible, and sustainable way.

Global Examples

United States

Renewable energy sources play a key role in reducing greenhouse gas emissions in the United States. As a country advancing in the energy sector, it has developed many regulations, such as the Electric Reliability Council of Texas (ERCOT), responsible for maintaining most of the Texas electric grid, which balances electricity supply and demand through electric-system operators such as Supervisory Control and Data Acquisition (SCADA) and Energy Management System (EMS). In recent years, grid instability has become a pressing issue for the United States. To resolve the issue, institutions are addressing the issues through battery storage implementation and upgrading transmission infrastructure to modernize the aging grid.

Ireland

Ireland, through EirGrid, is known as one of the most advanced examples of an islanded power system managing high levels of renewable energy. Since Ireland operates without synchronous connections to continental grids, it enforces strict limits on non-synchronous and low-inertia generation. Ireland's success in managing system stability has made Ireland a global model in operating a secure electricity system with high wind penetration.

United Kingdoms

Overseen by National Grid, the United Kingdom serves as another significant example of nationwide recognition and transition towards renewable energy sources, albeit with varying constraints in terms of operational practices. Despite its current status barely meeting complete insulation, the UK permits greater frequency changes while remaining dependent upon a vast combination of varying solutions, encompassing thermal generation, energy storage, and demand responses. Such an approach aims to enable greater flexibility in the management of inertia while simultaneously finding a balance between supply and demand in the field.

Island systems

Many island systems demonstrate the ability to maintain a power system's stability without external reliance on grid support. These systems depend largely on battery storage. ENGIE is a company that has provided many islands with large-scale storage solutions. The storage compartments have demonstrated how these batteries regulate frequency, provide reserve power, and enhance grid capability in isolated networks.