The global energy industry is facing short-term uncertainty amid political and economic instability, according to DNV’s latest Energy Industry Insights survey.
Despite this, long-term optimism remains rooted in ongoing technological progress and the global push for decarbonisation.
Now in its 15th edition, the survey compiles insights from over 1,100 senior energy professionals.
Only 55% of respondents believe the transition is accelerating, a significant drop from 72% in 2023 and 79% in 2022.
The report also highlights concerns over the social impacts of the transition. A slight majority (51%) of professionals surveyed believe that the shift to sustainable energy could negatively affect some communities.
Key risks identified include economic displacement, inequitable distribution of benefits, and high costs.
Respondents emphasised the need for affordable and accessible clean energy technologies, supported by innovative funding models, to ensure a just and inclusive transition.
The survey also found that, in the short term, businesses—especially clean energy developers—are worried about missing revenue and profit targets.
Additionally, the survey highlighted a decrease in project funding, with the majority of respondents delaying investment decisions or selecting smaller projects.
Confidence in renewables has dipped significantly. Only 50% expect to meet revenue goals, and just 43% are optimistic about profits. These figures are sharply lower than those seen three years ago.
Geopolitical instability and economic uncertainty are cited as key drivers of caution. A reduced appetite for risk is evident. Only 39% of renewables respondents plan to boost investment in the next year.
Digitalisation remains a focus for enabling system-wide transition. Nearly two-thirds of respondents said a whole systems approach requires a fully digital infrastructure. Investment in digital tools remains resilient.
Technologies such as AI are a growing area of interest while ageing infrastructure poses another significant constraint. Outdated power grids are limiting the adoption of renewables. More than 75% of power sector professionals cite this as a key obstacle.
An overwhelming 96% are calling for urgent grid modernisation.
DNV Energy Systems CEO Ditlev Engel said: “A successful energy transition is not impossible, but the urgency to accelerate action has never been greater.
“The path to a cleaner, more sustainable energy future is inherently complex and uneven, but delay is not an option. Immediate, coordinated efforts are essential to ensure momentum is not lost.
“Geopolitical instability, including trade disputes and economic concerns, is pressuring global energy markets and causing uncertainty. These challenges pose threats to progress and require strategic navigation.
“Despite this uncertainty, our industry remains focused on the long-term vision. As a whole, we are committed to building a resilient, low-carbon energy system that minimises emissions, is affordable and sustainable, while meeting the world’s growing energy demand.”
“Energy sector faces short-term instability amid global uncertainty, says DNV” was originally created and published by Energy Monitor, a GlobalData owned brand.
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