In 2024, renewables became the fastest-growing energy source worldwide, surpassing natural gas, coal, oil, and nuclear.

Wind and solar are expected to cover more than 90% of the increase in global electricity demand in 2025, cementing their role as the backbone of future power systems.i 

This transition is happening alongside a substantial increase in global energy demand. According to our World Energy Markets Outlook report, global energy consumption rose by 2.2% in 2024 – outpacing the 2% increase in 2023. Yet, energy-related CO2 emissions increased more slowly in 2024 than in 2023, with roughly 2.6 billion tons of CO2 emissions avoided thanks to clean energy deployments.  

China led the surge, installing 277 gigawatts (GW) of solar and 80 GW of wind – hitting the country’s 2030 target six years early. The EU and U.S. each added between 50 and 70 GW.  

This is no coincidence – in an increasingly unpredictable world, energy dominance is emerging as a defining factor of competitive advantage.  

These milestones demonstrate that renewable energy can scale rapidly. The critical challenge now is whether energy systems can absorb and use this capacity efficiently. 

The bottleneck isn’t generation – it’s integration 

Global investment in clean generation has climbed to $1 trillion a year, while grid investment lags at $400 billion1. The International Energy Agency (IEA) reports that around 1,650 megawatts (MW) of solar and wind projects still awaits grid connection2. 

Meanwhile, global renewable capacity is expected to expand by nearly 4,600 gigawatts (GW) between 2025–2030 — almost double the growth of the previous five years. 

Traditional grids and storage systems, designed for centralized fossil-based supply, struggle to accommodate variable, distributed energy. Rising peak demand from cooling, electric vehicles, and data centers — create stress on networks. 

Digital flexibility: the undervalued lever 

Adding capacity alone isn’t sufficient to improve the viability of renewable energy. Maximizing value requires shaping and synchronizing demand to match the availability of renewables – it requires a flexible system.  

There are different ways and combinations in which this can happen, including: 

  • Smart buildings can cut consumption by ~20% with payback under two years 
  • Industrial energy efficiency programs often yield return on investment in 12 to 18 months – without large infrastructure upgrades 
  • Vehicle-to-grid, demand response, Internet of Things (IoT)-enabled load shifting, and predictive control are increasingly essential 

With IEA projections confirming that wind and solar will dominate incremental demand growth in 2025, it’s clear that system flexibility is no longer optional. 

Corporate strategy: from energy procurement to control 

According to the Capgemini Research Institute’s A world in balance 2025 report, most organizations are now counting energy efficiency and renewable energy solutions among their top strategic priorities. 

As organizations transition to renewables, they are also reducing overall consumption. Some organizations are using the Internet of Things (IoT) or smart systems to monitor, optimize, and reduce their consumption. Others are completely redesigning their processes to use less energy. Embedding energy efficiency into operations helps organizations reduce carbon emissions – as well as cut costs and improve performance. 

As such, the energy transformation is no longer seen as just a cost, but as an important growth enabler. 

 The continued path towards the decarbonization of the energy mix 

Despite softer environmental, social, and governance (ESG) regulations, the shift to renewables is accelerating. Less than one-third of organizations plan to rely on fossil fuels long-term, and 33% pledge to exit oil and gas.ii 

Leading organizations are setting ambitious precedents in expanding renewable energy usage and generation. Mercedes-Benz, for example, now sources 50% of its production plants’ energy requirements from renewables. They are targeting a 50% cut to value chain emissions by 2035.iii Enel increased its renewable energy capacity by 60% and cut emissions intensity by more than 70% between 2017 and 2024. In the same period, it grew EBITDA from €15.6 billion to €22.8 billion – with another 40% increase projected by 2027.iv  

Renewables deliver resilience as well as sustainability by buffering against price volatility, extreme weather, and supply chain shocks. No wonder 19% of executives interviewed by Capgemini cite energy insecurity as a growing concern.v  

Energy efficiency alone cannot deliver decarbonization 

Static efficiency gains can’t solve intermittency. A building that uses 25% less power but peaks at 7 p.m. still relies on backup from fossil fuels. Industrial processes operating near thermodynamic efficiency limits have little margin for further static gains. 

True decarbonization requires dynamic flexibility – shifting or reshaping demand based on real-time grid and price signals. That means intelligent control platforms, predictive analytics, and AI-driven optimization across assets from electric vehicle fleets to data centers. 

This isn’t just a technical upgrade – it’s a new operating logic for electrified economies, powered by data and technology. 

Energy dominance will power organizations’ success 

Renewables have proven that they can scale. Winning the next phase depends on system intelligence: stronger grids, scalable storage, and digital flexibility. Smart demand management increases the value of every watt, accelerates decarbonization, and creates competitive advantage. 

The next phase of energy dominance won’t be decided by building more turbines – it will be won by building smarter, more integrated and responsive systems.