From the devastating Australian wildfires and the worst-in-four-decades Somalia drought to the flash floods in Pakistan that led to the loss of many lives, the world has witnessed clear signs of increasingly extreme weather patterns in recent years.

This only emphasizes the urgent need for humanity to commit to a swift, decisive, and broad transition toward sustainable energy sources.

While non-carbon sources such as wind, solar, and geothermal have made headway into the global energy share, the reality is that the current landscape remains heavily reliant on fossil fuels, which still generate more than 80% of the world’s power.

The private sector, as a central driver of the global economy, now faces increased challenges in decision-making, which has become much more difficult because it has to consider the ‘energy trilemma’: security, affordability, and sustainability.

As energy is a commodity, having a reliable supply and enough of it is critical. Therefore, concerns about the intermittent nature of renewable energy are valid. When there is no wind, wind farms do not work, and when a severe cold front hits, the sun does not shine, and water freezes—solar and hydropower are ineffective.

However, grid management and power storage investment can be leveraged to avert this, again utilizing the current energy industry’s expertise in the area. Germany’s integration of smart grid technologies to manage renewable energy variability serves as a model.

With ample storage of reserve power and a cutting-edge energy intelligence system that allows switching between energy types that would be most effective in a given situation, Germany becomes one of a few countries with enough energy to meet its needs even in the most severe climate.

Ultimately, an increase in coordinated public-private investments in research and development for innovative storage solutions will ensure a smooth and stable transition toward a renewable future. By ensuring that the energy keeps coming, we can build trust and encourage wider adoption of clean energy solutions.

To shift the energy sector inclusively, those currently driving the carbon-based economy must become architects of the electrified future; the industry itself holds the infrastructure, and its workers hold the professionalism required for a smooth energy transition.

Norwegian state-owned energy company Equinor is leveraging its experience in energy management to spearhead the development of hydrogen power plants and offshore wind farms, as well as carbon capture infrastructure Europe-wide.

https://www.weforum.org/agenda/2024/07/green-transition-energy-dilemma-public-private-partnerships/