, APAC
180 view s
Photo by Pixabay via Pexels

Global power sector needs $115t to achieve 2050 net zero goal

However, some consumers, including Singaporeans, do not want to spend more on electricity.

An investment of around $115t is needed to fuel efforts in the global power sector and achieve net zero emissions by 2050, according to a new analysis by Accenture Research.

Broken down, $53t is needed for clean power generation, $42t in transmission and distribution, and $20t in interim fossil fuels and alternative technologies such as carbon capture.

However, Accenture raised the issue of shouldering these costs. Energy providers are unable to shoulder the investment expenses alone, but passing these to consumers could more than double the average amount of household income spent on electricity bills from six percent to 14% by 2050.

“Consumers cannot afford to support this scale and pace of investment. Alternatively, keeping the transition affordable will delay achieving net zero by 35 years,” the report read.

Of the 16,800 respondents across 18 countries, Accenture said 69% believe that consumers have a role to play in net-zero transition. However, only 46%, mostly younger ones with higher incomes, are willing or able to assume some of the cost increases required.

In Singapore, more than 1 in 3 (36%) said they are unwilling or unable to pay a premium for clean energy investments, with more than half citing energy affordability as the cause. This was despite 81% of respondents saying they are interested in the transition to clean energy.

To attain the 2050 target without sacrificing affordability, Accenture laid out some strategies that include recentering the business around energy consumers, reinventing cost and productivity methods, and mitigating cost pressures with new revenue opportunities.

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

India’s Rajasthan and Gujarat need policy reforms to fuel RE transition
Some steps they could take are implementing green tariffs and setting infrastructure funds.
Global clean energy tech market to hit $2t by 2035
This is fuelled by investments as countries aim to enhance energy security.The global clean energy technology market is projected to grow from $700b in 2023 to over $2t by 2035, nearing the scale of the crude oil market, according to the International Energy Agency (IEA).This growth is fuelled by significant investments in clean technology manufacturing as countries aim to enhance energy security, maintain economic competitiveness, and cut emissions. Investment is concentrated in regions with established positions in clean energy, particularly China, the European Union, the UK, and increasingly, India.Whilst the US, EU, and India have taken measures to support their clean energy sectors, China is expected to remain the world's manufacturing hub. By 2035, China's clean technology exports are forecasted to exceed $340b—comparable to projected oil export revenues from Saudi Arabia and the UAE.Southeast Asia, Latin America, and Africa contribute less than 5% of global cleantech production value, yet the IEA suggests that these areas still hold opportunities within the clean energy economy. Developing economies, for instance, could leverage competitive advantages to advance in the value chain beyond resource extraction.The IEA said Southeast Asia could become one of the most cost-effective regions for producing polysilicon and wafers for solar panels over the next decade.

Exclusives

Coal-dependent ASEAN told to scale up RE generation
A regional power grid could help governments in their renewable energy transition.
Indonesia told to tap communities in clean energy transition
Solar and wind power managed by villages could generate 96 million jobs over 25 years.
Indonesia to add 90 MW geothermal capacity
Three power plants in West and East Java and North Sumatra will start operating this year.