To underline this point, in 2024 an ABB survey of electrification purchase-makers across Europe found that more than 70% of respondents ranked transitioning away from fossil fuels to more renewable energy sources as a top priority for the coming years. Within the same survey, more than half of respondents also admitted that limited resources, both financial and human, are significant obstacles.
Operational costs, management of infrastructure investments, a shortage of skilled workers, and potential technical challenges, were all cited as barriers to accelerated decarbonisation. Scaling up renewables is not as simple as just plugging more solar panels and wind turbines into the grid. Conventional electrification infrastructure was in many cases simply not built to accommodate intermittent sources, and so integrating them requires a delicate balancing act to ensure that the grid remains reliable and resilient.
However, it is important to bear in mind that much of the groundwork towards facilitating a more sustainable grid has already been done. ABB estimates that around 80% of the technologies deemed fundamental to the energy transition – including storage systems, smart grids, and digital control systems – are already widely available, and the cost of implementing them is coming down all the time. Net zero targets are not going away any time soon, and so upgrading infrastructure strategically and gradually will likely be more cost-effective long-term. Indeed, delaying until there’s no other choice will inevitably cost far more in a shorter space of time.
There is also a multiplier effect in harnessing new energy efficient technologies. Greater efficiency leads to higher margins and greater competitiveness, while digitalization can be leveraged to achieve dramatic improvements in reliability and optimize productivity.
For instance, AI-enabled energy management tools are helping organisations to more effectively understand their energy usage, and find new ways to reduce consumption while still maintaining optimal productivity. Improvements in remote monitoring capabilities are helping to optimize grid interactions and monitor critical infrastructure.
Better and more efficient technologies in battery storage, decentralized energy platforms, and microgrids are allowing organisations to invest in on-site generation and improve their local energy security and resilience.
ABB is working closely with organizations of all sizes and across various industrial sectors, by not only simply providing the technology, but also sharing our expertise in addressing the world’s most pressing energy distribution and management challenges. Working together, business leaders can benefit from a partner with the resources and knowledge to leverage the proven electrification technologies that are already available today.
About the Author: Giampiero Frisio is President, Electrification Business Area at ABB
