5 Key Actions to Revolutionise Global Energy Supply

Hello, Champions of Net Zero!

History has shown us that the most significant transformations often occur not through gradual change, but through explosive shifts that redefine our world. The Industrial Revolution, for instance, didn’t just arrive; it barged in, fundamentally altering economies, industries, and societies. Today, we find ourselves on the brink of another monumental transformation: the transition to clean energy. However, unlike the swift changes of the past, our progress today is alarmingly slow. In this insightful analysis, Christoph Dorigatti, Vice President of Global Business Development at automation supplier COPA-DATA, outlines five essential steps that the energy sector must prioritise to catalyse the energy revolution.

Despite unprecedented growth in renewable energy sources, the world remains perilously off course in meeting vital climate goals. If we genuinely aim to secure a sustainable, equitable, and resilient energy future, the time to act is now.

1. Empower People for an Inclusive Energy Future

The clean energy transition holds the promise of creating millions of jobs, but only if we equip workers with the necessary tools to navigate this shift. In the UK alone, the National Grid estimates that 400,000 new roles will need to be filled by 2050. However, without proactive workforce planning, economic disparities will only deepen. This concept of a ‘just transition’ is crucial; it ensures that workers in carbon-intensive sectors have access to reskilling programmes and vocational training that enable them to thrive in the new economy.

Moreover, this transition must be inclusive, benefiting everyone rather than just those who can afford it. Currently, rising energy costs disproportionately affect low-income communities, with 10.6 per cent of Europeans in 2023 unable to afford adequate heating. Without targeted support, millions more risk being left behind in this energy revolution.

To address these challenges, we must establish stronger social safety nets, provide direct financial assistance, and implement affordability-focused policies. Initiatives like the EU’s Social Climate Fund represent a positive step towards protecting the most vulnerable; however, deeper reforms are essential to prevent the widening of existing inequalities.

2. Drive Innovation and Accelerate Efficiency

Innovation serves as the backbone of the energy transition, and without it, our progress will inevitably stall. A recent study by the European Commission emphasises the significance of key research areas, including next-generation batteries, offshore wind, and green hydrogen, as pivotal players in the energy sector. Yet, inconsistent funding and policy support threaten to undermine these advancements.

To facilitate a successful transition, scaling up investment in these cutting-edge technologies is paramount. Smart solutions—such as AI-driven energy optimisation, advanced analytics, and automation—can play a crucial role in maximising efficiency and minimising waste. Energy efficiency stands out as one of the most rapid and cost-effective means of reducing emissions and bolstering energy security. Despite ambitious targets, like the COP28 goal to double efficiency by 2030, our progress remains sluggish.

It is imperative for businesses to adopt smarter energy optimisation technologies, while governments should introduce incentives and enforce efficiency targets that bolster private sector investments. The technology to enhance our energy systems is already available; now, it’s time to put that technology into action.

3. Modernise Grids and Infrastructure

The world’s energy grids were constructed for an energy mix that no longer reflects our current needs. As we lean more heavily on renewable sources, a more flexible approach to energy management is essential. Investments in transmission and distribution must increase to ensure that grids can operate reliably in the face of variable and often unpredictable renewable energy loads.

Smart grids, real-time energy management systems, energy storage solutions, and microgrids are critical components for this transition. Additionally, expanding transmission networks is vital to connect areas rich in renewable resources with regions that have higher energy demands. The International Energy Agency (IEA) warns that without these investments, CO2 emissions will surge, pushing climate goals further out of reach.

It is equally important to focus on challenging sectors such as heavy industry, manufacturing, and transportation, which collectively contribute significantly to global emissions. According to the IEA, the industrial sector alone emitted 9.0 gigatons of CO2 in 2022, while transportation accounted for over a third of emissions from end-use sectors.

Scaling up investment in electrification, reducing emissions intensity, embracing automation, and exploring clean energy alternatives is crucial for these sectors. Clear policy direction, financial incentives, and regulatory certainty will be essential to transforming green technologies from the exception to the norm, especially in areas that are typically harder to decarbonise.

4. Rethink Regulation and Financing

Despite significant expansions in renewable energy capacity, deployment still falls short of expectations. Slow permitting processes and persistent fossil fuel subsidies create an uneven playing field, hampering the competitiveness of clean energy and granting undue advantages to legacy sources.

Governments must intensify their efforts to implement policies and incentives that accelerate the development of green energy. This includes cutting through bureaucratic red tape to fast-track projects. Energy companies require policy certainty, predictable returns, and assurances that decarbonisation pathways are viable for investment. Unlocking private capital hinges on establishing bold, long-term regulatory clarity.

While investment in clean energy flourishes in wealthier nations, many developing countries struggle to keep pace. Without access to financing, these regions risk becoming entrenched in outdated, high-carbon energy systems.

To foster inclusivity in the energy transition, wealthier nations must step up to provide not only financial resources but also technology and expertise to support these regions in their shift toward cleaner energy. Collaborative partnerships between developed countries and international organisations can further bolster this transition, ensuring that no country is left behind in the global movement towards sustainable energy.

5. A United Approach

The transition to clean energy remains fragmented, complicating efforts to integrate solutions and share knowledge effectively. Policymakers, innovators, and utilities often operate in silos when they should be collaborating closely—governments need to create supportive frameworks, utilities should drive innovation and adoption, and innovators must provide the tools and technologies that facilitate a seamless transition.

Collaborating with philanthropic organisations, financial institutions, and investors can unlock vital funding resources. To overcome financial barriers, both public and private entities should offer competitive financing terms that mitigate high interest rates and support the long-term viability of clean energy projects. Furthermore, real-time knowledge sharing through digital platforms can accelerate innovation and modernise the global energy system. When faced with climate challenges, a united approach is not just beneficial; it is essential.

The Time to Act is Now

Just as the Industrial Revolution reshaped economies through bold actions and innovative thinking, today’s energy transition presents us with a unique opportunity to construct a cleaner, fairer, and more resilient world.

This transformation cannot occur in isolation. It requires a concerted effort from governments, businesses, and innovators to drive this change collectively. The stakes have never been higher, but with decisive action and collaboration, we can revolutionise the global energy system and secure a sustainable future for generations to come.

To learn more about how smart software can support these critical actions and foster a successful transition, continue exploring our resources and insights here.