Corporations must transition to fully electrified processes
Corporations must transition their machinery to electric alternatives powered by green energy.
In support of the green transition, corporations need to replace outdated or inefficient equipment, such as ovens, auxiliary power units, and machinery currently running on natural gas or diesel fuel. This shift typically occurs when old machinery reaches the end of its lifespan and when it is economically viable to invest in energy-efficient replacements to maintain competitiveness. The focus should be on adopting electric-powered tools.
High costs hinder corporate electrification
Many corporations have yet to electrify their processes, often committing to this transition over extended timelines spanning years or even decades.
Leading corporations, especially those under public scrutiny, have pledged to reduce their emissions, with some taking proactive steps to do so. However, many other corporations face significant financial barriers to rapid electrification. The additional costs associated with transitioning could lead to a loss of market share, as these costs would likely be passed on to consumers. Furthermore, decarbonizing heavy industries, such as steel and cement, continues to present substantial challenges.
Industrial electrification would require additional power plants
Converting all industrial machinery to electric devices will necessitate an increase in electricity from clean power sources.
To support widespread industrial electrification, substantial investment in new power plants powered by renewable energy or nuclear power is required, contingent upon regulatory approval for building permits.
This investment might also necessitate legislative action to dismantle electrical monopolies, allowing for increased competition and improved access to the existing grid. Additionally, the national electrical grid may need significant upgrades to handle the increased demand for electricity transmission.
This effort requires not only corporate commitment but also decisive action from political authorities.
On-site renewable electricity generation for corporations
Corporations and businesses should be incentivized to reduce their reliance on external power plants by generating electricity locally through solar panels or wind turbines on their premises.
Corporations should be permitted to sell excess electricity back to the grid during peak production periods, as local battery storage remains expensive. To facilitate this, authorities must work towards upgrading the electrical grid into a “Smart Grid” capable of managing and billing both the inflow and outflow of electricity.
This approach to local electricity generation would minimize the need for extensive transmission infrastructure between consumers and energy providers.