Energy sector transforms
Aligning with the Intergovernmental Panel on Climate Change (IPCC) recommendation that global emissions must be halved by 2030, the global energy sector rapidly moves to low-carbon energy sources and away from unmitigated fossil fuels. There are country-specific plans to decarbonize the energy sector according to economy, geography, and legacy systems.
Green energy is an "easy win" for organizations planning a carbon-neutral pathway. Businesses buy renewable and low-carbon electricity, creating a surge in offshore wind and solar PV installation, and accelerating the approval of permission for new hydropower capacity. Peripheral technologies such as geothermal and tidal electricity gain a more substantial foothold.
Breakthroughs in hydrogen fuel cell technology and improvements in the energy density of batteries increase the range and power of electric vehicles, enabling organizations to green their corporate car, van, and truck fleets.
Rail systems and trains are converted to electric and hydrogen propulsion, and sustainable aviation and maritime fuels are widely adopted in the shipping and logistics industries. In the mid-2020s work begins on upgrading key parts of national and local gas transmission, storage, and distribution networks to allow the replacement of natural gas with hydrogen. Hydrogen boilers alongside ground source heat pumps and electric power meet the thermal comfort needs of workers in offices and industrial workplaces.
The focus on carbon has highlighted a major inefficiency — and a major saving/revenue stream — in lost and wasted heat. Energy companies start to install heat network infrastructure to connect buildings and infrastructure in cities, enabling excess heat to be transferred to areas in deficit, or stored in heat "reservoirs" until needed. They are buying and selling thermal energy.
The same is true for adoption of technologies such as pumped storage and compressed air energy storage to ensure network stability and reliability as dependence on intermittent renewable generation increases.