DNV’s Energy Industry Insights report explores the confidence, sentiment, and priorities for the energy industry, finding that only 55% of energy professionals now believe the transition is accelerating, down sharply from 72% last year and 79% the year before.
Moreover, 51% of respondents believe that ultimately, a successful energy transition may negatively impact some communities, this could include economic displacement, uneven distribution of benefits, and prohibitive costs. Furthermore, workers in traditional energy sectors may lose jobs without retraining opportunities, and poorer regions might struggle to adopt new technologies.
Key findings
- In the short term, businesses, particularly clean energy developers, are concerned they won’t hit revenue or profit targets;
- Less money is flowing into projects.
- The majority of respondents are deferring investment decisions or choosing smaller projects;
- But long-term industry confidence is underpinned by powerful megatrends including electrification, the urgency of decarbonization, and steady technological advancement.
- The complexity of future energy systems demands a whole energy systems approach, integrating various energy sources and technologies.
- Digitalization and AI are pivotal for managing the dynamic and interconnected nature of modern energy systems.
- There remains an urgent need for increased investment in power grid infrastructure to support the electrification and distribution of renewable energy.
- Despite global economic and political uncertainty, most of the energy industry remains generally optimistic, supported by megatrends like electrification and rising energy demand.
- Energy security and affordability have become top priorities, influencing both oil and gas expansion and the shift toward renewables.
- Political risks, high costs, and economic conditions have dampened investment appetite, leading to deferred decisions or scaled-down projects.
- Significantly fewer companies expect to increase investment in renewables in the year ahead, though many plan to maintain current levels.
- Technologies not yet profitable without subsidies or carbon pricing, such as CCS and green hydrogen, are likely to see slow growth or delays in 2025.
In order to address challenges, respondents stressed the need for affordable, accessible clean energy technologies to be implemented by using innovative funding models to ensure the shift to sustainable energy creates real, lasting benefits for all.
A successful energy transition is not impossible, but the urgency to accelerate action has never been greater
… said Ditlev Engel, CEO Energy Systems at DNV. Meanwhile, Lucy Craig, Director of Growth, Innovation and Digitalization, Energy Systems at DNV, stressed that despite the short-term concerns, the underlying sentiment remained strong, indicating that the challenging stretch would be overcome.
