The electrification of business is reshaping demand – and turning energy into a core business strategy, not just a utility service.
Analysis from the EY Net Zero Centre finds business activity will account for three quarters of global electricity demand growth to 2050.
Demand is growing as companies electrify buildings and transport fleets, retrofit industrial assets and deploy new technologies. Supply challenges dominate headlines, but surging demand is transforming the energy system.
A new report from the EY Net Zero Centre: Charting Australia’s path to 2035 and beyond: Eight keys to unlock lower costs, improve security and deliver net zero emissions finds that global electricity demand is set to double by 2050. Of that growth:
Put simply, the demand curve is being reshaped from the bottom up.
Businesses are replacing gas and diesel assets with electric alternatives. They’re building new energy-intensive operations. And they’re aligning investment decisions with emissions targets and customer expectations.
This means energy strategy is a core pillar of operational resilience and competitive positioning.
Electrification – switching from fossil fuels to electricity – is one of the most powerful tools for cutting emissions and lowering costs across the Australian economy. The EY Net Zero Centre finds it can deliver significant savings for both businesses and households.
But electrification will require an additional 21 TWh of electricity, driving a 50% increase in total demand in Australia.
EVs will add another 24 TWh of electricity annually — equivalent to 40% of today’s household electricity use. Heavy industry will demand a further 29 TWh, and general business 17 TWh. In total, business accounts for three quarters of projected growth.
This rising demand will land on networks already under strain from growing volumes of distributed solar, battery storage and behind-the-meter electrification.
Meeting this demand over the next decade will require:
Planning, infrastructure, regulation – and leadership in the energy sector – must accelerate to match the speed and scale of business-led demand.
Historically, reliability and affordability topped the list of business energy concerns. Now, a third factor is in the mix: sustainability.
EY global research, based on 2,450 business leaders across eight countries, finds that sustainable energy ranks among the top three energy priorities across all sectors. In technology and manufacturing, it is the top priority for one in five companies.
This is transforming how energy is valued. It is shaping capital planning and reporting strategies. And it is pushing energy providers to deliver faster, cleaner, more tailored solutions.
Not all businesses face the same opportunities or obstacles in the energy transition. EY Net Zero Centre research identifies four emerging archetypes that capture the diversity of business energy needs:
Understanding these archetypes can help energy retailers, grid operators and policymakers respond to the needs of a diverse and evolving customer base.
Almost one in three businesses (29%) see energy utilities as a barrier to their success. This is not necessarily a reflection of service quality. But it is a sign that the system is under pressure to deliver faster, smarter, more integrated support.
Electrification is colliding with long connection delays. EV charging is stretching distribution networks. New loads are outpacing infrastructure planning cycles.
Meanwhile, business models are evolving. Companies are co-investing in microgrids, signing long-term power purchase agreements, integrating energy into product design, and reporting on Scope 3 emissions.
Customers are leading the transition, and providers must match their pace. Business is no longer a passive consumer — it’s an active, shaping force.
Download Charting Australia’s path to 2035 and beyond: Eight keys to unlock lower costs, improve security and deliver net zero emissions from the EY Net Zero Centre.
About the authors
Co-Leader, EY Net Zero Centre
Partner, Climate Change & Sustainability Services, Ernst & Young Australia
Emma has over 20 years’ experience in climate change and sustainability practice. Emma is a known figure in the Australian and global climate change arena having worked within business and industry associations. She has direct experience in the development and delivery of commercial climate change finance and investment solutions as well as in campaign and political advocacy strategies. Emma was previously CEO of the Investor Group on Climate Change (IGCC) and worked with Westpac for 15 years on climate finance and sustainability solutions. She has been directly involved in the development of global climate investment and advocacy programs. Emma is a regular media contributor on climate matters, and a respected voice on climate transition implications for business.
EY Regional Energy Leader, Oceania
Partner, Ernst & Young Australia
As the EY Oceania Energy Leader, Emma supports clients to realise opportunities emerging from the energy transition. She works with participants across the energy value chain to build comprehensive strategies and execution plans to address the key transition issues. Emma has deep relationships across the Australian energy sector enhanced through her global energy network both inside and outside of EY. She thrives in bringing the sector together with other ecosystem players to deliver the energy transition, Emma has been at EY for over 19 years, in both our London and Sydney offices.