Energy markets and climate change

Innovations mechanisms on energy markets are discussed, in particular valorization of energy products which invokes decarbonization of energy recourses. The valorization, meaning higher value of energy products, is expressed as electrification and entry of modern renewable energy based on geothermal, wind and solar resources, entailing distributed energy systems with storage and auxiliary technologies. Consumption of electricity on grid grows along with manifold higher unit cost of electricity compared to fuels, and the distributed energy systems expands even faster though it is many times costlier than electricity on grid. The valorization can be explained by adding valuable attributes to functionalities of energy products such as consumer convenience, autonomy, flexibility silence, cleanness, and it contributes to communities’ interest through local income and jobs. The decarbonization, meaning lower carbon or more electrons per resource mass, is expressed as lower energy-intensity of economies and substitution of coal and oil for gas and gas for renewable energy. Modern renewable energy grows faster than rival fossil fuels. It doubles every 3 to 4 years in several countries. The rivalry intensifies regarding the decreasing energy-intensity of economies in many countries, albeit slowly. Extrapolation of the annual average growth rates as trends for coming last twenty five years shows increase of income and slow increase of energy consumption along with emission reduction of carbon dioxide due to renewable energy by more than 50% compared to 2015. Trends on energy markets show that mitigation of climate change is possible.