Just 22% of energy companies and utilities are embracing new energy business models despite warning from EU executives that failure to do so will lead to them going bust.
That’s according to a new Capgemini study, which revealed that new energy models are not only having a positive impact on the financial side but also in reducing emissions.
The report claims that those companies that are making the changes are already reaping the benefits, with a 6% increase in revenue expected to rise to 11% within the next three years.
Spanish firms have witnessed the highest revenue increase of 7.5% but UK businesses can ostensibly anticipate 12% revenue rises during the next few years.
New energy models have also led to a 4.6% reduction in global Scope 3 emissions, with continued transformation expected to push this number to 13% in the next three years.
The most popular new energy models being implemented by companies are alternative fuels, which just 37% of global organisations are currently implementing, energy storage solutions, which 19% are currently implementing and clean energy sources, which has a 24% application rate.
Close to 70% of the utilities questioned said that mitigating climate change was driving their shift towards new ways to do business, with 63% citing investor demand and 44% led by profitability of new models.
Peter King, Global Energy and Utilities Lead at Capgemini, said: “The energy transition is the driving force of the decade. Firms must begin by crafting organisation-wide strategies at scale to ensure the success of an energy transition programme.
“There is also a blatant need for more pace and innovation. Just a third of organisations are operating an innovation function at scale to develop and test new models and industrialise results.
“It is time for players to adopt a fail-fast philosophy and forge new partnerships, both within and outside existing ecosystems.”