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. In a survey of 850 European purchase decision-makers, 71% prioritize shifting from fossil fuels, but over half need more resources for their strategies,
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.
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.
“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.
European electrification purchase decision-makers in France, Germany, Italy, Norway, and the U.K. were surveyed, and more than half (51%) recognize that their organizations lack the resources to meet their commitments in the energy transition.
“While it’s reassuring to see nearly three-quarters of respondents prioritizing 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,” ABB officials added.
Companies are motivated to act by new or increasing regulations supporting the energy transition
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, sulfur hexafluoride (SF6), a potent greenhouse gas commonly used as an insulator in switchgear, will be gradually eliminated. More than 80% 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.”
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.
To read the full survey report, “Shaping Europe’s Energy Future: Key Transition Priorities,” which also includes individual country findings, please visit the landing page.
Methodology
Between Aug. 2 and Aug. 12, 2024, 850 switchgear and electrification purchase decision-makers were surveyed online in France, Germany, Italy, Norway and the U.K. Half of the respondents worked in energy utilities, and the other half worked in industry. Wakefield Research conducted the study on behalf of ABB Electrification Distribution Solutions.
ABB
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on over 140 years of excellence, ABB’s more than 105,000 employees are committed to driving innovations that accelerate industrial transformation.