Energy sector faces short-term instability due to global uncertainties and reduced confidence in renewables

From Yahoo Finance: 2025-04-30 11:14:00

The global energy industry faces short-term uncertainty due to political and economic instability. DNV’s survey of 1,100 professionals shows a drop in belief that the transition to sustainable energy is accelerating. Concerns include social impacts, economic displacement, and high costs. Confidence in renewables has dipped, with fewer expecting to meet revenue goals.

Geopolitical instability and economic uncertainty drive caution, with a reduced appetite for risk. Only 39% of renewables respondents plan to increase investment. Digitalisation is key for a system-wide transition, with a focus on AI and the need for urgent grid modernisation. A whole systems approach requires a fully digital infrastructure.

DNV Energy Systems CEO calls for urgent action to accelerate the energy transition. Challenges include trade disputes, economic concerns, and uncertainty. Despite short-term instability, the industry remains committed to building a resilient, low-carbon energy system. The goal is to minimize emissions, ensure affordability, and meet the world’s growing energy demand.

Read more: Energy sector faces short-term instability amid global uncertainty, says DNV