- Customer Centric Energy Transitions Can Move Two to Five Times Faster than Supply-Led Transitions
- Customer Centric Transitions Can Have a Rapid Impact in Three Sectors: Residential and Commercial Buildings, Transportation, and Industry
- The Opportunity Within These Sectors Covers 60% of Global Energy Demand and a Third of Greenhouse Gas Emissions
BOSTON, Sept. 3, 2024 /PRNewswire/ — Low-carbon technologies currently deliver 42%, or 32 exajoules, more primary energy than in 2015, the year of the Paris Agreement, largely driven by supply-side forces. However, hydrocarbon demand also grew by 31 exajoules during the period. Addressing the demand as well as the supply side of the equation by placing the customer at the center of new sustainable energy offerings, could significantly accelerate the transition. Customer centric energy transitions can move two to five times faster than supply-led transitions, and have more staying power. These are among the findings of a new Boston Consulting Group (BCG) study, Turbocharging the Energy Transition by Boosting Customer Demand, released today.
Customer centric transitions can have a rapid positive impact in three sectors: residential and commercial buildings, including data centers; most areas of transportation; and industry, primarily certain types of manufacturing. The opportunity within these sectors covers 60% of global energy demand and one-third of greenhouse gas emissions. These sectors benefit from technologies that are already scalable, established government policies and incentives, and a path to creating compelling products and services for customers. Just a few use cases for customer centric transitions in a handful of regions—solar photovoltaic panels in India, electric vehicles in the EU and US, and heat pumps in Europe—could reduce global energy related emissions by 1.5 gigatons of CO2 equivalent, or 4%.
“Customers are hungry for green products and services,” said Ekaterina Sycheva, BCG partner and managing director, and coauthor of the report. “But they are looking for compelling offerings to translate their commitment into action. In order to tap into this demand, we are seeing companies creating products and services that are not only sustainable, but are also competitive on costs, provide additional features, and deliver outstanding performance.”
Based on an analysis of more than 65 case studies, the study identified four basic types of benefits that made sustainable products desirable to customers. These include superior economics, including upfront costs and of total cost of ownership; superior product performance; a superior experience, such as hassle-free installations, end-to-end service offers, and user centric design; and superior brand and narrative, building positive awareness through clear, jargon-free communication.
“Acting on the supply side to speed up the energy transition remains essential and cannot lose momentum,” said Jamie Webster, partner and associate director at the BCG Center for Energy Impact, and a co-author of the report. “However, there is also an opportunity for companies and governments to tap into the power of energy customers to accelerate progress and deliver a lasting energy transition.”
Download the publication here:
https://www.bcg.com/publications/2024/advancing-the-energy-transition-with-customer-demand
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SOURCE Boston Consulting Group (BCG)
