The transition away from fossil fuels is a priority for European energy utilities and industries alike, but there is a reality gap – the need for more investment to meet clean energy goals, according to a new survey conducted by ABB's Distribution Solutions Division.
European electrification purchase decision-makers in France, Germany, Italy, Norway, and the UK were surveyed, and more than half (51 percent) recognise that their organisations lack the resources to meet their commitments in the energy transition.
"The shift towards clean energy generation, distribution, and more efficient consumption is essential to combat climate change and secure a low-carbon future," said Adrian Guggisberg, Division President of Distribution Solutions at ABB.
"While it's reassuring to see nearly three-quarters of respondents prioritising this need, the survey also finds that we have a gap to close to meet the pledge made at the COP28 climate summit last year to triple renewable energy capacity by 2030 and double the average annual rate of
energy efficiency every year until 2030.
“We are all in this transition together, and at ABB, we are committed to partnering with our customers and other stakeholders."
This research polled 850 electrification purchase decision-makers at a critical juncture in the energy transition.
The survey asked energy utilities and businesses about their energy transition drivers and risks, their views on automation and environmentally friendly technologies, and their readiness to adopt regulations to reduce greenhouse gas emissions.
While facing the challenge of
accelerating the energy transition, the European energy sector is preparing for a technology change in medium-voltage switchgear, a key component in electrical energy distribution.
Due to new regulations, sulphur hexafluoride (SF6), a potent greenhouse gas commonly used as an insulator in switchgear, will be gradually eliminated. More than 80 percent of respondents confirmed that they would only switch to SF6-free switchgear because of the regulations.
"We know the change in technology away from SF6 switchgear is a big change in the
market, and our customers are acknowledging that, too," Guggisberg noted.
"As a key supplier, we are committed to working closely with utilities and industries to support this critical transformation."
The survey confirms that utilities and industrial customers face common challenges in this transition. The challenges include controlling operational costs, managing infrastructure investments, addressing the need for a skilled workforce, and implementing new solutions such as energy storage.
“As digital components and software solutions become increasingly essential to electrical equipment, survey respondents also noted the need to improve cybersecurity measures to reduce associated risks.”