Driven by rapidly rising energy demand, the global utilities sector is ready to shape its role in the complex future energy system. This will involve integrating renewables and low-carbon primary energy to reduce reliance on fossil fuels, modernising infrastructure, enhancing energy efficiency and implementing innovative water management solutions. Establishing crucial new partnerships and collaboration within the energy sector, alongside policymakers and across different sectors, particularly the technology sector, will be essential to develop innovative new solutions and ensure a secure, lower carbon energy future.

Water scarcity is a global crisis impacting millions daily. Utilities significantly influence this issue, both contributing to and alleviating the problem. In many regions, water demand already surpasses supply, affecting small communities and major cities alike. Some projections suggest that by 2030, the gap between water supply and demand could reach nearly 40%. The utilities sector, along with governments, NGOs, academia, and the private sector, must develop and scale innovative technologies. They also need to frame essential policies and regulations and promote sustainable practices to protect our limited water resources. This effort is crucial for delivering lower carbon energy supply to meet rising demand and achieving critical climate targets.

Some estimates suggest that up to 90% of 2050 baseline man-made emissions could be reduced using existing climate technologies. However, a significant increase in the deployment of these technologies is necessary to realise their emissions reduction potential both for existing and emerging solutions. According to McKinsey, investments will need to grow by 10% annually to reach $2 trillion by 2030. However, scaling up essential climate and emissions management technologies to achieve make substantial progress towards net zero commitments presents considerable challenges that will need to be addressed.

Ensuring a secure and reliable electricity supply demands global cooperation. It involves utilities, governments, and the private sector working together across borders. Effective risk assessment and planning hinge on data-driven insights. These insights are essential for modernising infrastructure, integrating technology, and designing flexible systems. Such systems must anticipate, withstand, and recover from supply disruptions. According to IRENA's World Energy Transitions Outlook, global renewable power generation must triple by 2030 to meet the 1.5°C target. Solar photovoltaic (PV) and wind energy will account for 90% of this new capacity. To prepare for a renewable-ready energy system that meets rising demand, significant investment is crucial in both developed and developing economies. Accelerated progress and commitment to clean energy supply are essential.

Driving sustainable growth in utilities hinges on innovative financing and strategic investment. Financing models such as IPP and IFP structures, along with green bonds and public-private partnerships, are vital for enabling private capital investment in assets and funding clean energy supply, resilient water systems, and grid modernisation. According to Bloomberg NEF's net zero scenario, global grid spending is set to reach $811 billion by 2030, propelled by the rapid expansion of 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 requires immediate action, innovation, and global collaboration. Tackling regulatory challenges and promoting partnerships, such as the EU’s Renewable Energy Directive, can enhance the adoption of renewable energy and the modernisation of grids at a regional level, supporting the shared global agenda. It is also crucial to overcome supply chain vulnerabilities and the significant skills gap to ensure a secure, reliable, and efficient energy supply that meets the increasing demand alongside a net zero energy future. Coordinated solutions and knowledge-sharing, especially between developed and developing economies will be key to ensuring the availability of clean energy worldwide and establishing the framework necessary for the future global energy ecosystem.