Finding Equilibrium Between Growth and Decarbonization
With the global population expected to reach approximately nine to 10 billion by 2050, and one billion people still without energy access, our energy requirements are not only growing but also evolving. Each equinox reminds us of the essential balance we need to strive for in achieving net zero by 2050.
COMMENTARY
Crucially, the need for clean, scalable energy solutions has never been more urgent, especially as new technologies, such as artificial intelligence (AI), which is expected to contribute about 200 TWh per year to data center power consumption between 2023 and 2030, are placing unprecedented demands on our energy infrastructure. Other innovations such as quantum computing, streaming services, and e-commerce are also driving up energy consumption, accounting for more than 80% of global carbon emissions.
To address these challenges, we must embrace the three pillars of “replace, electrify, and reduce.” By prioritizing the combination of electrification and digitization—what we call Electricity 4.0—we can ensure that technology and other critical sectors like buildings, industry, and transportation run efficiently and are powered with the cleanest possible energy mix.
One area where efforts can be rebalanced is the relationship between supply and demand. On the supply side, the focus is on replacing fossil fuels with clean energy sources. On the demand side, it’s about electrifying energy use and improving efficiency to reduce consumption. Replace and electrify are key long-term strategies to transition away from fossil fuels between now and 2050. These solutions need to accelerate, but will take time to implement—transitioning to renewable energy, electric vehicles, heat pumps, and industrial processes need sustained investment. Reducing energy consumption and improving circularity, however, can be a shorter-term goal delivering more immediate environmental benefits and getting us back on track for a net zero pathway.
The Role of Clean Energy in a Growing World
Switching to clean energy sources is an obvious way to cut carbon emissions, but that of course needs more clean energy supply (the energy transition), which, in turn, needs time. So, we have to consider many options to maintain the right balance.
Data centers, for example, face their own equilibrium challenge: they must scale up their energy consumption to meet the increasing demand for data, all while keeping carbon emissions in check. Consequently, we are seeing data center owners turning to consultancy services to tackle their ESG (environmental, social, and governance) goals, not just through green power procurement, but also monitoring, reporting, and design.
Solutions include switching from energy intensive air cooling to liquid cooling, replacing existing supply agreements with clean power purchasing agreements, and replacing diesel gensets with battery storage solutions for backup (which can have impacts far beyond data centers to hospitals and other critical infrastructure).
Microgrids also play a vital role in the energy transition, enabling users to generate their own clean energy, become energy autonomous, and avoid the risk of energy price volatility. Alongside Citizens Energy Corp., we deployed a microgrid to serve four critical facilities on the campus of The Daughters of Mary of the Immaculate Conception. The solution will provide approximately 545 MWh of additional solar energy each year.
Electrifying Energy Demand
To achieve balance with energy supply, we need to electrify energy demand. From industrial processes like refineries and steel works, to transport and to heating, electrification is already a viable solution in many sectors today to reduce carbon emissions. However, making this a reality will require significant upgrades to existing grid infrastructure, and with more than 701 GW of projects in the connections queue—more than four times the predicted electricity needs by 2050—progress is urgent.
The grid is becoming smarter, more digital, and more resilient. But as the energy landscape transitions to cleaner supply and electrified consumption, we must also improve energy efficiency in the short-term to reduce pressure on the infrastructure (and also reduce volatile energy costs).
New Ways to Be More Energy Efficient
Finding ways to cut energy usage through smarter solutions has never been more crucial, especially with global resource consumption projected to rise by 60% by 2060. From intelligent home systems that automatically adjust temperatures, to efficient building management that considers everything from weather patterns to occupancy levels, the tools to reduce consumption are already at our fingertips. For example, simply optimizing thermostat settings can yield significant reductions in energy use without sacrificing comfort.
We also need to consider reducing the materials we use. Adding insulation to homes and businesses, for instance, can help maintain temperatures efficiently, minimizing energy waste. Following the energy crisis of 2022–2023, a staggering 75% of households actively worked to lower their energy usage, primarily to cut costs. In fact, in a recent survey, 86% of respondents cited energy efficiency as their top home improvement priority.
The path to a sustainable future hinges on the three foundational strategies of replacing fossil fuels, “replace, electrify, and reduce.” It’s possible to build a resilient, low-carbon future, but we must embrace clean energy alternatives, advance electrification across various sectors, and reduce waste. Only this way can we can meet both immediate and long-term sustainability objectives.
—Olivier Blum is executive vice president of Energy Management with Schneider Electric.