Development of Energy Strategy

Running Head: MANAGEMENT 0
MANAGEMENT OF ENERGY

MANAGEMENT 1
Development of energy strategy
To manage and assess energy risks and costs, there is need for building a comprehensive
energy management strategy that can be adjusted to varying market situations, competition,
consumer preferences and the external forces impacting the energy market. In relation with
the external factors, increasing regulation is one of the key factors needs to be considered
while developing the energy strategy. For instance, in Thailand Power Development Plans
(PDP2015), it aims to be less reliant on on natural gas as a source of power, with a decline
target of no more than 40 per cent in 2036 from 65 per cent as of 2015 (Beckstead, D, 2018).
With the progressively increased use of alternative energy sources and improved energy
efficiency, imports of fossil fuels would be likely to decline and so, would the long-term risks
of energy expenditure on energy import. Other external factors include potential oil exports,
falling of prices, technology and big data and shifting demographics.
Effective energy strategy can also be developed when emphasising new capabilities,
exploring new business models and discovering cost and energy efficiencies. For instance,
technology can be proved to be one of the great internal resource capability that can help
energy sector in various ways. As energy sector amasses huge amount of data on a constant
base, with the use of sensors, network communication, wireless transmission and cloud
computing technologies, the extent of data being gathered on both the demand and supply
side of the coin are fairly staggering (Seay et al, 2017). Hence, it is necessary to consider
technology for the support of the energy strategy.
Towards development of energy strategy, it is also necessary to uncover competition
distortions and its drivers to understand of the mechanism of competition policy on energy
sector across multiple jurisdictions. For instance, the competition has produced lowest-cost
electricity and also prompted technical innovation with driving down the cost of capital. In
addition, over the next 20 to 30 years, as fossil energy is phasing out, demand for synthetic
methane and hydrogen will be developing and producing such fuels is very likely to become
a profitable alternative use for solar and wind electricity (Abas et al, 2015).
Consumers globally are also well alert of change in climate, however, they still do not
completely link electricity convention with its environmental influence. There is an important
flaw between customer views and their definite knowledge of energy efficiency. For instance,
customers do not want to study about electricity management plans and are open to seeing