• Geopolitical instability has increased the risk for energy supply disruptions and price inflation, making energy security more important. The EU imports over 60% of its energy, most of which are high CO2 emitting fuels.
• Energy supply and industrial activity together account for almost 65% of global CO2 emissions, adding to the increasingly challenging global climate conditions.

Global electricity demand is projected to double by 2050 driven by population growth, rising living standards, and electrification of industrial activity.

• The doubling demand will put pressure on an already strained and aging grid infrastructure. The average age of large US power transformers is more than 40 years old versus useful life of 30 – 50 years, while the EU is currently restricting 12 TWh of sustainable generation due to grid congestion.

Grid operators in the US predict a c. 20% demand growth in electricity by 2030, to accommodate new digital infrastructure, advanced manufacturing, and increased industrial electrification. Higher demand growth is predicted in the EU driven by these industries and greater focus on climate initiatives.