Industry opts for flexible electrification: study

Almost two-thirds (65%) of industrial sector leaders see electrification as the most effective lever to achieve net zero targets, according to recent research from Siemens.

The Siemens Infrastructure Transition Monitor, a biennial study, surveyed 1400 senior executives and government representatives in 19 countries across energy, buildings and industries.

It found that the proportion of organisations that are mature or advanced in onsite renewable energy production has risen to 42%, and in decarbonisation of core operations to 38% — both figures up from 27% in 2023.

Meanwhile, demand-side flexibility is gaining traction as a practical way to cut emissions and energy costs by shifting consumption according to market conditions. Nearly six in 20 (59%) industrial organisations plan to use their energy assets to benefit from flexibility mechanisms, and 45% percent said their efforts are already mature or advanced.

63% of industrial leaders view digitalisation as critical to enabling decarbonisation, particularly through smarter energy management and AI-driven optimisation. More than half believe better data sharing between energy producers and consumers would improve both efficiency (56%) and resilience (58%) of the overall system.

However, companies need a clearer policy environment to maintain this momentum. Almost two-thirds (63%) said policy uncertainty is now a growing threat to the energy transition, with 60% reporting that regulatory uncertainty discourages private sector investment in renewables, and 57% saying uncertainty about the future energy system is delaying clean energy investment.

“Industrial companies are proving that sustainability and competitiveness can advance together. They are investing in electrification, flexibility and digital technologies that deliver results today,” said Matthias Rebellius, Managing Board Member of Siemens AG and CEO of Smart Infrastructure.

“What they need now is long-term policy clarity and supportive regulations to plan ahead with confidence and accelerate the transition to cleaner, more efficient operations.”

Image credit: iStock.com/AP Chanel