Energy Market in Transition
As the energy sector undergoes a major transition, businesses must be ready to adapt to the challenges and opportunities it presents. At Ascend, we work with our clients to identify and mitigate the risks while capitalizing on new sustainable business opportunities.
Energy Market in Transition: Navigating the Road Ahead
The energy sector is undergoing a transformative shift, with a growing emphasis on renewable energy sources such as solar and wind power. According to the International Energy Agency (IEA), renewables will account for 80% of global power generation by 2050. But the energy sector faces more than just a changing energy mix. It is also impacted by broader trends shaping today’s society and business landscape, including digitalization, security, new technology, and a fast-paced rate of change. Additionally, the geopolitical landscape adds an element of uncertainty to the international energy structure and dynamics.
Key Trends Shaping the Energy Market
The energy sector is at the forefront of global concern, driven by rising energy prices, heightened environmental awareness, and the threat of energy shortages. Consumers are increasingly interested in reducing their energy consumption and having a positive impact on the environment. This has led to a greater focus on energy efficiency and the adoption of consumer-friendly technologies. Meanwhile, businesses grapple with a challenging international environment marked by inflation and high-interest rates.
Challenges and Opportunities
Companies within the energy sector must navigate several challenges in this rapidly evolving market. These include the need for operational flexibility to respond to market uncertainty, the importance of agile decision-making, and the need to forecast data correctly. As the energy market evolves, new actors may emerge, and new business models may develop, requiring companies to adapt to changing roles and customer demands.
Johan Agnvall, co-lead of our Sustainable Business Focus Area, comments on the energy market:
“As the energy sector undergoes a major transition, businesses must be ready to adapt to the challenges and opportunities it presents. At Ascend, we work with our clients to identify and mitigate the risks while capitalizing on new sustainable business opportunities. Together, we can ensure their success in this rapidly changing market.”
Navigating the Energy Market
We believe that companies in the energy sector need to develop and work with some key areas to tackle the challenges that affect and shape the market today:
- Become more customer-oriented and create solutions for customers struggling in the energy crisis.
- Enable more agile governance and decision-making to respond to the industry’s increasing uncertainty and pace of change.
- Develop organizations, ecosystems and partnerships that respond faster to consumers’ changing needs.
By addressing these areas, companies can take a leadership role in the energy transition and support their customers’ transition to a more sustainable and circular energy system.
Do you want to discuss the energy topic and how to navigate the road ahead? Don’t hesitate to reach out!