Volatile energy prices can disrupt economies — and renewable energy resources can offset this by helping to stabilise prices with their low marginal costs of production.  

Digital technologies enable better forecasting, integration and management of renewable energy sources for industrial companies and can facilitate the integration of renewable energy sources into industrial operations, making it easier for companies to switch to cleaner energy sources. 

Advanced battery technologies and energy management systems can also help companies store excess renewable energy when supply is abundant and use it when supply is constrained. 

Finally, blockchain and other digital tools can provide transparency in supply chains — allowing companies to identify and mitigate risks associated with energy supply disruptions. 

What are the primary energy-related challenges faced in the quest to achieve net-zero targets?

Many industrial processes are energy-intensive and reducing energy consumption without compromising output can be difficult. 

Industries often rely on fossil fuels for high-temperature heat and as feedstock for chemical processes, making it challenging to transition to cleaner energy sources. 

An effective energy transition will require upgrading to more energy-efficient equipment or installing renewable energy systems requires significant upfront capital investment, which can be a barrier for many companies. 

Additionally, existing infrastructure may not be compatible with renewable energy sources and will require substantial modifications or replacements, while inconsistent or unclear government policies and regulations can create uncertainty, making it difficult for companies to commit to long-term investments in net-zero initiatives. 

Companies now must account for emissions not only from their direct operations but also from their supply chains, which can be complex and less controllable. 

Renewable energy sources like solar and wind are great but they’re intermittent, which means we need reliable energy storage solutions that are still being developed or might cost too much right now. 

Plus, our current electrical grid is not set up to handle many of these renewable sources and upgrading it can be costly and time-consuming. 

This is why we need to support continuous technological advancements in areas like carbon capture and storage (CCS), hydrogen fuel, advanced nuclear power and next-generation renewables — to make them work better, scale up easier and cost less in the long run.

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