Electricity prices are rising, and they are through the roof by now. The reason behind this isn’t just the COVID-19 pandemic, as there’s also the Russo-Ukrainian war. That’s why thinking about energy shortage is more important than ever. In fact, finding the solution to stop the inevitable and mitigate the energy crisis that’s already here.
Worldwide affairs will affect every one of us, and many people have already wondered what winter 2022 will be like. The European energy markets have suffered turmoil, and oil and gas needs are constantly rising. And all this while the world hasn’t recovered yet from the COVID-19 pandemic. The cost of electricity is rising, and it’s only logical to expect a crisis. In fact, Global Energy Center experts and the International Energy Agency (IEA) predict that the global natural gas demand will increase by 2040 by 31%. The oil demand will go up by 21%, supplying 35% of the entire energy consumed.
What Is Energy Shortage, and Is It a Real Thing?
People all over Asia and Europe are facing significant price boosts for their power bills. The cause is supply restraints from the leading producers. So, is there an energy crisis coming? Will the world face one of the biggest social and environmental crises so far?
If the worldwide demand for natural resources rises and there’s not enough supply, well, the people should start thinking about electricity breakdown consequences. However, many people still don’t feel connected with this topic, but the picture will become more realistic when the gas prices start rising and we start seeing lines at pumps.
What Causes Electricity Shortage?
Why is there a global energy shortage? As we already mentioned, there’s been an enormous increase in demand in the past few years. This is in no small part due to the Coronavirus pandemic and the war between Russia and Ukraine.
The power-generating capacity struggles to keep up with demands, and that could potentially lead to blackouts during the peak periods. This is becoming one of the warnings that eclectic-rid operators are trying to spread all over the US.
Additionally, traditional power plants can’t be replaced as quickly with battery storage and renewable energy as they are being retired, which is causing the rise of electricity shortages. The fact that nuclear plants are being retired across the US also has something to do with this alarming problem. Transitioning to cleaner energy forms (solar and wind) is beneficial on so many levels, but it still can satisfy the rising worldwide need for electricity.
In the video below, you can check some other reasons that are leading to this huge issue.
How Does the Energy Crisis Impact the World?
All the big and significant events that occurred globally will surely come to every corner of the world and have some kind of impact (more or less). When it comes to Russia’s Ukraine invasion, it launched the power market disruption on a scale mankind hasn’t faced since the 1970s oil crisis.
Even though the US and other countries didn’t sanction Russian energy, there are predictions of significant losses from the market of Russian barrels. In fact, about 7.5 million barrels of oil and refined products are exported per day. So, yes, the entire globe will feel the current happenings, and that’s how we can distinguish three different elements of the crisis:
- COVID-19 and the supply chain disruptions,
- Great connection of natural gas markets,
- Energy prices volatility.
Germany was probably the first country that could face the supply reduction. Not only will there be a drastic increase in power prices, but there will also be a possible gas supply shortage. It’s because 95% of gas Germany needs is imported, of which about 55% is from Russia. So, it’s completely normal to think about some emergency measures – the “Day X” if Russian gas stops coming to Europe’s largest economy.
Is It a Gas or Policy Crisis?
Getting independence from fossil fuels probably hit most countries unexpectedly but the war in Ukraine is more than needed. According to some analysis, Russia received about $105 billion from oil exports to the UK and Europe. The country’s gas exports are also estimated at around $44 billion, so it’s no wonder why the EU wants to scale down the dependence on Russian gas and oil.
So, yes, it’s a bit of a gas crunch, but it’s also a bit of a policy crunch too. And as a result, we have a deep imprint on the foreign and domestic policies of the US and other western countries. But if we step out of politics for a moment, the problem will become even more active when the winter comes, right? In fact, now it’s the time to avoid short-sightedness.
Everyone should think about investing in innovative renewable infrastructure and implementing some environmentally positive movements, like figuring out whether to use centralized or decentralized electricity and increase coal use.
Who Uses the Most Energy?
As we already see, the alarming increase in energy production and the programmed obsolescence of appliances and other devices will indeed significantly impact what’s happening today. And, even more seriously, what will happen in the future. But, who uses the most electricity and why?
Giving the right answer will depend on the type of energy we’re talking about. Different countries utilize different energy sources, and it can be quite difficult to say exactly which country uses the most. However, there are two largest consumers globally: China is leading, and the US ranked second.
Can the Actual Crisis Damage the Smart Home Automation System
For a decade or so now, people have been thinking about solving the problem with energy. Still, with all that’s been going on, no wonder many are worried about the cost of installing a smart house. Energy reduction, in fact, should be everyone’s goal, and there’s a smart home system that could provide exactly that, reasonable and smart energy consumption. That way, you won’t have to think about AC or DC electricity and many other things.
But, as you may have heard already, these houses have some disadvantages too. On the one hand, yes, they provide communication between you and the smart devices. However, they all are connected on a wireless network, and we all know what troubles a power outage can cause. So, not being dependent on Wi-Fi would be the best possible option, right?
Well, there’s a solution! All challenges that Wi-Fi is bringing (and privacy is one of them) will be solved with innovative and secure blockchain technology. Home automation will prevent unnecessary stress on the electricity system and optimize power consumption through energy metering. And the best thing of all, you’ll have the cost-benefit, and privacy will be guaranteed (provided with the blockchain).
How to Implement a Fully Disrupted System and Solve the Problem?
Everyone’s heard of smart homes, but do you really know anybody that fully has it and is satisfied? It’s pretty strange why this amazing idea hasn’t evolved yet, and we’re living in a world of technology. Yes, now you can monitor power consumption, but will it mean power reduction too?
The answer is quite simple: some of the basic issues have to be solved, and that’s where Electric Society comes along. The first problem is power – with our innovative startup using new technologies that are wireless but surely not Wi-Fi, you can control your home even if there’s a power loss – all the appliances will continue working. Yes, the awful scenes where people have been left outside in cold weather because their homes were locked (due to power loss) don’t have to happen anymore.
Could Improved Energy Efficiency Be the Future of Climate Change?
How to reduce energy consumption and deal with the alarming global climate change? We all need to deal with this because only then can we actually do something. And where’s a better start than yourself and the place you live in, right? After all, climate change is global, but it’s also a national and a local issue.
There are no instant fixes for the power crunch, but they’re definitely some steps people can take to slow down global warming and easily fix the mess we caused in the first place. In the last year, it has been estimated that around 40% of US households have a smart home device, and the trend is undoubtedly growing.
Among all the beneficial sides there could be, one question has arisen: is a smart house healthy. And as much as the energy and environment will be saved, you’ll still have to use an enormous amount of power, which is completely counterproductive. Just imagine the power used to cover a larger family house. The good news is that Electric Society has managed to reduce electricity consumption with:
- Scalable connection for devices,
- No hidden costs and subscriptions,
- Smarter devices.
And probably the best thing is that you won’t have to optimize the entire place at once. Instead, you can extend existing smart houses, device by device. For example, you can start with the most demanding parts, which are heating and lighting. Make it smart, and after that, you can proceed with other tech.
How Innovative Technology and Amazing Startups Can Save Money and Environment?
Is living in a home that will save you power, money, and worries without spying on you what you need? Yes, and it’s more than possible. In fact, it will also be effortless, unlike other smart houses where you just have to count on losing your precious moments on a simple configuration smart house.
Another positive side of our startup is that we use high-quality materials that need less electricity. And as a result, the entire system is more affordable than you can find on the market nowadays. In fact, the smart house expectations aren’t as positive as they should be, and there’s a reason for it.
Explore Why Popular Solution Isn’t the Best One
Everybody’s talking, now more than ever, about the most suitable solutions for power consumption and how to deal with the upcoming winter. A smart house is easily the best solution, but why isn’t the idea as popular as it should be?
The problems we discussed do provide some answers, but let’s just say there’s a more reliable option for a smart home automation system that surely is the future. With utmost privacy and an almost unhackable blockchain system, Electric Society will allow you to enjoy state-of-the-art technological innovation for your home and environment. If you’re interested in this innovative solution, partner with us. We’re the only startup on the market that will provide hassle-free home functioning, even when there’s a power loss.
