The transition away from fossil fuels to renewable energy is a when, not an if. What energy companies do now to differentiate themselves and set a strong foundation for a competitive future will separate the leaders from the laggards as the sustainable energy transition pushes forward.
Next year, 25% of U.S. electricity generation is expected to come from renewable sources, up from 21% in 2023. Globally, this figure will be 35% in 2025, according to the International Energy Agency (IEA).
This is a major change for the oil, gas, and utilities industries since fossil fuels have long dominated the energy landscape, polluting the planet. Coal, oil and gas account for more than 75% of global greenhouse emissions and 90% of carbon dioxide emissions, making them the biggest contributor to climate change, according to a United Nations report.
The transition to sustainable energy will both reduce carbon emissions and help meet increasing demand of a growing population.
Working out challenges related to the energy grid and the digital infrastructure needed to succeed in the future is the only way to ensure sustainable growth in the energy industry.
But there’s a lot of work on the backend for energy companies to make the shift. The unique physical infrastructure essential to daily operations in the oil and gas sector presents significant challenges to transitioning to renewable energy.
Governments are helping through production and investment tax credits. In the U.S., the Inflation Reduction Act offers up to a 30% credit for renewable energy investments and continues to disperse grants to advance renewable energy projects.
With alarm bells ringing globally about climate change, it’s time for companies to adopt real strategies and solutions that put renewables front and center.
As the global drive towards sustainable energy grows, the pressure's on oil, gas, and utilities companies to change. Learn how energy and utilities companies can make the transition.
Many trends are helping drive the shift to sustainable energy. Consumers and shareholders are demanding change. Governments and regulators are implementing rules designed to combat climate change. And technological advancements are making it easier for companies to shift to green energy production.
Here are three key renewable energy trends:
The energy industry needs a new playbook and strategies in order to make the transition to renewable energy feasible. AI will play a big role here, helping energy leaders boost operational efficiency and gain much-needed data insights. For example, AI can assess usage trends to get supply and demand in sync and improve the mix of renewables versus traditional energy sources over time.
In fact, the International Renewable Energy Agency suggests that AI-powered energy forecasting can improve the accuracy of renewable energy generation predictions by up to 10%.
AI in the energy industry can be a valuable tool for an entire organization to improve strategies over time as a complement to human know-how and entrenched industry expertise.
The energy transition will require a strong workforce to service windmills, turn AI insights into real strategies, and more. As a result, clean energy jobs are booming, growing 10% between 2022 and 2023, and at a faster rate than other categories of employment in the U.S.
This will require training to bring employees up to speed as they see their jobs change significantly and AI becomes more ingrained in everyday tasks. Energy companies will need to reskill to bring their workforce into the modern age and make sure new hires get trained on essential skills from day one.
Understanding the new skills workers need to make the energy transition a reality is the first step toward developing new training programs, creating job descriptions that accurately explain the responsibilities of net-new roles, and selecting the right candidates to fill these openings. AI can help to fill skill gaps, creating customized training programs and improving scheduling. When all three are combined, the result is increased employee satisfaction.
To create a future of secure and affordable energy, energy networks must better handle fluctuating demand and supply. To accomplish this, energy companies are focused on optimizing their asset management strategies.
Energy companies are leaning on AI, predictive analytics, and IoT technologies to stay ahead of maintenance issues and extend the life of their infrastructure.
Improving asset management with advanced solutions can reduce costly downtime by forecasting safety hazards and maintenance needs to reduce risk and improve efficiency over time.
The clean energy transition is just hitting its stride and corporations are beginning to throw their weight behind it.
RE100 is a global corporate renewable energy initiative led by multinational corporations that are committed to 100% renewable electricity and zero carbon grids worldwide by 2040. There are now 433 member companies from all over the world and counting.
As the energy industry accelerates the mix of renewables, companies like Portugal’s energy leader, Galp, are working to meet their own net zero goals in 2050.
Whether as a part of a group or setting their own ambitious goals, it’s clear that the energy industry is well on its way in the renewable transition with the help of new technologies, ways of working, and talent.
