Demand for electricity is soaring. Disruptive new power-hungry data centres, the electrification of transport, heating and cooling, and the push to advance energy access in line with Sustainable Development Goal 7, is fuelling unprecedented global electricity demand growth. As we enter the age of electricity, it is critical that power systems remain affordable, secure and sustainable – requiring unprecedented levels of cooperation between policy makers, regulators, utilities, technology providers and financial institutions.

Water scarcity is a global crisis that is set to grow both in terms of severity and in people affected by it. In many parts of the world, demand for water already exceeds supply and by 2030, the gap between supply and demand is projected to reach close to 40% globally. Utilities, governments, NGOs, academia, and the private sector all have a key role to play in developing and scaling the solutions needed to close the gap and safeguard the water needed to allow people, communities and economies to thrive as our climate changes.

AI presents a unique opportunity to transform the power sector, enhancing efficiency, optimising grids, and accelerating the transition to net zero. As such, it has increasingly become a central pillar of the sector’s innovation agenda offering a pathway to a smarter, more resilient energy system. However, AI's rising electricity demands from data centres, requires urgent adaptation. Power systems must expand renewable capacity, improve grid flexibility, and enhance flexibility at a speed and scale unprecedented in recent times. Coordinated action from governments, businesses, and markets is essential to harness AI’s potential while ensuring a sustainable, resilient, and equitable energy future.

As power generation becomes increasingly dominated by renewables, the need for flexibility solutions grows. According to IRENA, in a 2050 net-zero energy system solar and wind account for 90% of generation, making flexibility on both the supply and demand sides central to maintaining a stable, responsive, and resilient grid. Gas, battery storage, grid interconnections, and demand response are among the tools available. Careful and strategic system planning is essential to ensure flexibility options are optimised and tailored to geographic contexts.

Driving sustainable growth in utilities hinges on innovative financing and strategic investment. Models like green bonds and public-private partnerships are vital for funding clean energy supply, resilient water systems, and grid modernisation. Global grid spending is set to reach $811 billion by 2030 in Bloomberg NEF's net zero scenario, driven by rapid growth in clean power, electric vehicles and other low-carbon technologies. Emerging strategies may include innovative project financing and development, and climate finance mechanisms as well as the integration of digital solutions and even fintech to secure the required finance.

Achieving a low-carbon, interconnected energy future demands urgent action and bold innovation across the sector. Rapid demand growth is accelerating the pace of change for utilities, while decarbonisation goals and the expansion of clean energy are reshaping traditional system management. The way utility companies engage with policymakers, suppliers, customers and with each other, has transformed dramatically in the last decade. Platforms like the Utilities for Net Zero Alliance (UNEZA), launched under the UAE’s COP28 Presidency in 2023, are an example of the need for utilities to embrace a new era of collaboration and engagement with all stakeholders as the sector navigates a transformative new era.