Since the Industrial Revolution, the fossil fuel era has shaped our relationship with energy. Thanks to coal, energy became more abundant and easily transportable, driving increased demand supported by a vast network of infrastructure and global transportation routes. The same pattern continued with oil and gas. Today, with the energy transition, a major shift is underway: demand now drives production. The electrification of the economy, powered by renewable energy, is reversing the rules of the energy game.
(LinkedIn: https://www.linkedin.com/pulse/electrifying-economy-when-demand-takes-lead-over-supply-marcoux-tpq2e)
The Fossil Fuel Era: The Primacy of Supply
The advent of coal in the 18th century was a turning point in energy history. Before fossil fuels, production relied on local natural sources such as water and wood. Coal fueled the expansion of steam-powered rail and maritime transport, creating a feedback loop where transport and fossil fuels reinforced each other. This cycle allowed energy to be consumed in locations different from where it was produced, facilitating large-scale distribution.
The geopolitical impact of this energy dependence became significant, with industrial powers competing for control over resources and trade routes. For example, Britain’s Industrial Revolution was powered by local coal supplies, while colonial expansion was driven by access to raw materials, including fossil fuels. Thus, the fossil fuel era not only transformed economies but also global power structures.
Electricity: Toward Decentralized Energy
From the late 19th century, electrification introduced a new energy model. Unlike fossil fuels, electricity is harder to store and transport over long distances. However, it offers unprecedented flexibility and was quickly adopted for lighting and industrial machinery. Produced locally, it reduces exposure to geopolitical risks.
The rise of solar and wind power highlights a shift where consumers become key players in energy production. These technologies enable distributed generation through rooftop solar, community wind turbines, and microgrids. Demand-side management, supported by batteries and smart grids, is crucial for handling peak loads, balancing variable renewable generation, and allowing two-way power flows.
Smarter Energy Consumption Through Electrification
Electrification also transforms how demand is managed:
· Electric vehicles (EVs): Charged during off-peak hours, easing grid pressure.
· Smart buildings: Adjust heating and cooling based on demand.
· Smart water heaters: Operate during low-demand periods.
Batteries and smart grids are vital in balancing demand and supply, storing energy, and adjusting flows in real time.
A More Efficient and Sustainable System
Even when powered by fossil fuel plants, electric systems are more efficient:
· EVs: Consume less primary energy than gasoline vehicles.
· Heat pumps: Provide heating up to 300% more efficiently than gas boilers.
A Paradigm Shift: Demand Over Supply
The growth of renewable energy will naturally follow increased electrification. More EVs, heat pumps, and solar installations will drive investment in generation and storage.
Economic incentives, such as dynamic pricing, are critical in encouraging consumers to shift consumption based on electricity availability, reducing peak demand.
Conclusion: Accelerating Transition Through Electrification
Electrifying the economy represents more than a technological shift—it’s a new model. To succeed, we must first electrify major uses—transport, heating, and industry. Production will follow, driven by market forces and innovation.
The key question is no longer, “How can we produce more renewable energy?” but rather, “How can we electrify our uses faster?” By placing demand at the centre of the transition, we will create a more sustainable, resilient, and equitable energy system.
How are you contributing to this energy revolution? Let’s start the conversation!
