The shift is no longer a question of if, but of how fast. The greatest value for the economy and the planet, lies in the solutions that accelerate the transition.

The legacy energy system isno longer fit for purpose. Built around extracting and burning fossil fuels, it wastes two-thirds of primary energy before use, causes 8.7 million premature deaths from air pollution globally each year, and leaves economies exposed to shocks. A fuel-based system hands leverage to whoever has the fuel, and that is important when you remember the EU imports 96% of its oil and 89% of its gas. After the Russian full-scale invasion of Ukraine, this dependence translated directly into household energy bills increasing by more than 50%, and a collapse in the competitiveness of European industry. This was not a one-off event, as a similar dynamic is playing out across the economy as the impacts of the closure of the Strait of Hormuz reverberate.

A new system is emerging that meets today’s needs: one that provides sustainable, reliable, affordable, secure energy in abundance. The future system, and economy, are electric. Moving electrons is far more efficient and cheaper than moving and burning molecules, and electricity is the only energy carrier that gets cleaner, cheaper, and more secure the more we deploy it. More than 75% of end use energy can be electrified with commercially available technologies, and the underlying economics are already favorable. Solar PV costs are down by more than 90% since 2010, battery investment is growing at 30% per year, and electric vehicles and heat pumps routinely outperform combustion engines and gas boilers on efficiency by two to three times, or more.

Sustainable power generation, and the increasing demand for it, are pushing the energy transition forward. Yet critical elements needed for the future electric system continue to lag. There is notable grid investment debt: in the US, new transmission capacity installation has decreased by 21% annually despite a need to double by 2050. In Europe, new transmission lines take on average 10 years to build. System-stability services remain designed around fossil plants, and the electrification of heat, transport, and industry is outpacing the ability of the existing system to support it. These physical, regulatory, and operational bottlenecks are slowing the transition.

We believe there is significant opportunity for investors to unlock these bottlenecks with market-ready solutions that can accelerate the transition using existing infrastructure, while making smarter decisions about what to build new. These solutions represent a material and attractive near-term market.

Our analysis indicates an annual value of EUR 1.2 trillion by 2030, generating EUR 5 trillion in investor value and contributing to an additional EUR 800 billion in direct ecological value by moving away from fossil fuels.