Tackling the barriers to decarbonising industry energy sector

Powering forward: addressing the challenges of decarbonisation

Ensuring our energy security and reducing emissions for future generations is no easy task. Society’s growing appetite for electrical power will only continue to rise in the decades ahead. At the same time, we need to decarbonise industry with a clear focus on circularity and sustainability.

Electrification is the fundamental driver for energy transition across a number of sectors including industrial processes and manufacturing, food production, buildings, transportation infrastructure, and virtually every other aspect of modern life. Whether it’s to reduce energy costs or emissions, most businesses understand that changes are required in the way we work to accommodate our growing needs for energy.

Often motivated by tightening regulations, the imperative to shift away from fossil fuels remains a priority for many European industries. Despite this desire, the ability to achieve a successful transition is often impeded by insufficient resources for organisations to meet their goals.

These challenges are highlighted in a 2024 survey by ABB, where more than 70% of respondents confirmed that transitioning to renewable energy sources represented a key strategic objective over the next 1-2 years. However, over half of 850 electrification purchase decision-makers in France, Germany, Italy, Norway and the UK expressed concerns over their ability to mobilise adequate human and capital resources.

Pain-points include control of operational costs, effective management of infrastructure investments, securing a skilled workforce, and the implementation of new solutions such as energy storage. And as digital components and software solutions become increasingly essential to electrical equipment, survey respondents noted the need to understand and mitigate cybersecurity risks.

Many technological building blocks to help organisations successfully implement their energy transition – including new approaches to renewable energy integration, storage and management – are already in place. In fact, it’s estimated that 80% of the technology we need to achieve the energy transition exists today. So, there is a clear opportunity for electrification industry leaders to do more to partner with their customers to make sure these technologies are both visible and accessible to organisations of all sizes. Collaboration is key. Through sharing of new ideas and solutions, suppliers can help achieve tangible energy efficiencies and cost savings. This in turn will allow their customers to maintain critical momentum on delivering their own energy transition.

Leveraging tech to deliver meaningful change

A simple switch from carbon-emitting fossil fuels to clean sustainable energy sources including wind and solar cannot satisfy our future power needs alone. This must be complemented by smarter approaches to electrification, leveraging advances in technology like microgrids, decentralised energy systems, and emissions-free Battery Energy Storage Systems (BESS). Collectively, these innovations will accelerate the seamless integration of renewable sources within a future energy infrastructure that’s secure, resilient and sustainable.

Much of the heavy lifting will be achieved with complementary technologies like data analytics powered by Artificial Intelligence (AI) and Machine Learning (ML). These tools are already helping energy suppliers; infrastructure owners and energy users match supply capacity and resources to increasingly complex and dynamic customer demand patterns. As well as helping optimise grid efficiency and security, AI and ML will play a critical role in monitoring electrical asset health and predictive maintenance – increasing the lifespan of mission-critical electrical equipment and systems. This is all done while maximising energy efficiency, driving cost savings, improving sustainability and, most importantly, keeping operating staff safe. 

Digital tools and AI also allow customers to develop new revenue streams by selling the renewable energy they create on-site back to the grid, while AI can help reduce energy bills through energy arbitrage and real-time energy pricing. The data insights from the digital tools monitoring a facility can help to build business cases and measure ROI, boosting confidence in long-term investment and helping to address any financial barriers to execution.

It’s better together: tapping into complementary skills

Securing a cleaner and more sustainable energy future is a formidable undertaking. The rapid pace of technological innovation is enabling the transformation of a complex and rapidly evolving electrification ecosystem. Equally, realising the full benefits of technology must be framed by a broader comprehension among business leaders of the commercial, environmental and political questions shaping energy transition. This is where organisations, from small to large enterprises, and in all sectors can benefit from a partner with the complementary skills, knowledge and experience to help them successfully negotiate the opportunities – and the potential pitfalls – of transitioning to a secure low-carbon future.

Understanding the complexities of the energy transition and sharing these insights with innovation partners will be crucial to realising net-zero by 2050. By collaborating with customers, technology businesses, startups, and academia, we are accelerating the energy transition and uncovering new approaches to address global energy challenges. Through an open ecosystem where innovation can thrive, we can fast-track the shift to cleaner, more efficient energy systems.

At ABB we’re helping achieve these objectives by partnering with organisations of all sizes, providing the technology, know-how and support to tackle the world’s most pressing energy distribution and management challenges. As an example of this, our own collaboration with the brightest minds in university research departments and tech startups provides a rich platform for innovation, where new ideas can be explored quickly with a “build stuff, fail fast and move on” mindset. On ABB’s part, we can bring our own global reach, company resources and deep experience to the table, helping accelerate the development and commercialisation of innovative solutions to tough energy problems.  

ABB’s own survey of electrification purchase decision-makers has confirmed energy transition as a near-term strategic priority among the majority of industrial organisations. Despite this commitment, it’s clear that many businesses remain apprehensive about meeting targets to triple renewable energy capacity by 2030 and double the average annual rate of energy efficiency every year until 2030. Faced with a broad spectrum of challenges – from the need to control operational costs and manage infrastructure investments to successfully implementing new solutions such as energy storage – business leaders can benefit from a partner with the resources and knowledge to harness the full potential of today’s proven electrification technologies and secure their energy efficient future.