The carbon emission record should make energy companies act

From the reader. The estimated 2.5 percent increase in CO2 emissions for 2024 puts pressure on the energy industry. The sector plays a central role in the fight against climate change, and the role of electrification is critical when vehicles and buildings that use fossil fuels switch to electricity. This change requires significant investments in infrastructure and productivity.

In Finland, electricity consumption is expected to grow significantly. According to Fingrid’s forecast, consumption may rise from the current 90 terawatt hours (TWh) to up to 136 TWh by 2030. This places great demands on the energy industry in infrastructure development and productivity improvement.

Far from goals

Digitization is a critical factor in the development of the energy industry and the effective allocation of investments. Artificial intelligence and other technologies play a crucial role in promoting digital transformation.

Still, many Finnish companies are far from their goal. According to our research, only 8 percent of Finnish energy companies say they have achieved their digital goals.

Obstacles to the digitalization of the energy sector include the difficulty of measuring investment payback, lack of infrastructure, conflicting priorities and data security concerns.

These problems weaken companies’ ability to utilize data and make informed investment decisions.

Responsible decisions are required

Investment planning requires careful analysis. Energy companies need information about which solutions meet the requirements in terms of security of supply, carbon footprint and political goals.

Artificial intelligence and analytics can model where wind farms or transmission networks produce the best possible result, both economically and environmentally.

The critical role of the energy industry in society requires responsible decisions. Incorrect investments not only endanger business, but also society and the environment. Now is the time to act so that the energy sector meets the challenges of sustainability and climate goals.