Traditionally, energy has been viewed as a cost to be managed. Now, it is recognized as asset that enables business resilience, competitiveness and growth. This shift is being driven by a simple reality: businesses have never been more dependent on electricity, yet maintaining reliable supply is becoming increasingly difficult.
Whether in a manufacturing plant, a data center, a transport network or a commercial facility, electricity now underpins operational performance. When power systems fail, the consequences are measured not only in downtime, but also in lost revenue, reputational damage and constrained growth.
At the same time, electricity demand is accelerating - more than three times faster than other energy sources. Electrified transport, industrial decarbonization, digital infrastructure and artificial intelligence are all increasing demands on power systems. Renewable generation is expanding, which is essential for decarbonisation, but makes balancing supply and demand in real time more complex.
Add to this the volatility of energy markets, supply chains and access to critical materials and the challenge for leaders becomes stark: How do we build energy systems that balance reliability, affordability and sustainability in a world where demand is rising faster, infrastructure is ageing and operating conditions are becoming more complex?
Reliability is becoming harder to maintain – and more valuable
Grid-related outages are estimated to cost the global economy $100 billion annually. The consequences vary by industry, but the impact is increasingly significant.
For manufacturers, outages can cost hundreds of thousands of dollars per hour in lost production. Food producers risk spoiled product and wasted materials. Pharmaceutical facilities may lose entire production batches, while data centres can be disrupted by interruptions measured in seconds rather than hours.
Energy resilience has become business resilience. It protects revenue, safety, reputation and customer trust. Businesses that can secure reliable, efficient power are better positioned to protect output, serve customers and pursue growth when energy constraints affect their markets.
Access to electricity is also becoming a constraint on growth. In the UK, some projects have faced grid-connection waits of up to 15 years. In the Netherlands, more than 14,000 businesses are waiting for connections.
As demand rises and grid capacity comes under pressure, resilience cannot rely on securing more electricity alone. Businesses must understand where energy is used, where efficiency can be improved, and how demand can be managed more flexibly – making their existing electrical infrastructure work harder, smarter and more reliably.
Smarter electrical systems can strengthen resilience
As businesses navigate growing pressure to strengthen operational resilience while managing tighter investment cycles and rising electricity demand, many are looking first at how to extract more value from the infrastructure they already own.
Greater visibility enabled by digital technologies is becoming one of the most valuable capabilities in modern energy systems. Connected assets provide real-time visibility of energy use, equipment condition and system performance, helping operators identify faults earlier, isolate problems faster and make informed maintenance decisions before a failure affects operations.
This visibility is fundamental to energy resilience. Resilience is no longer just about recovering from disruption. Increasingly, it is about creating the visibility and intelligence needed to avoid disruption in the first place. It enables businesses to move from reacting to disruption to anticipating and managing risk before it affects operations.
Electrical assets are ageing. Data for the US Department of Energy shows that around 70% of transformers and transmission lines are more than 25 years old, while 60 percent of circuit breakers are more than 30 years old, highlighting the growing need for better asset visibility and condition monitoring. In an environment where extending asset life is often an operational and financial necessity, visibility becomes more than a performance tool. It becomes a resilience capability, helping businesses understand where risk exists, intervene earlier and avoid disruptions before they occur.
At ABB, we are helping customers move from standalone equipment to connected electrical systems that provide greater visibility and control over network performance. Virtualised protection and control can help customers move from fragmented data to real-time system visibility and control – enabling them to detect faults, isolate problems quickly and protect equipment and people. Digitally connected switchgear can similarly detect faults earlier, isolate issues faster and communicate across the system, improving safety, uptime and reliability.
AI also has a practical role in helping to secure reliability. It is not a replacement for engineering expertise. Rather, its value is in helping engineers and operators make faster, better-informed decisions. By combining operational data with AI-powered insights, businesses can identify patterns, anticipate potential issues and prioritise action before failures disrupt operations.
ABB has more than 500 active AI projects across predictive maintenance, diagnostics, digital twins, engineering, customer support, and safety monitoring. These applications can help customers improve asset reliability, reduce maintenance costs, and optimise the performance of critical equipment over its lifecycle - strengthening resilience while improving operational efficiency.
Performance, resilience and sustainability are converging
As investment in electrification accelerates, businesses are increasingly looking beyond carbon reduction alone. The technologies attracting the most attention today are those that can deliver multiple outcomes simultaneously: improving resilience, strengthening operational performance, reducing costs as well as supporting sustainability objectives.
Global investment in clean energy reached approximately $2.3 trillion in 2025. Electrified transport accounted for $893 billion, renewables for $690 billion, and grid investment for $483 billion. Renewables now represent 46 percent of installed global generating capacity.
But building more renewable generation is only part of the answer. Clean energy needs to be delivered reliably, integrated efficiently and remain affordable.
ABB is helping customers address these challenges through technologies including SF₆-free switchgear, high-efficiency motors and drives, and connected asset- and energy-management solutions. These can improve operational performance and support long-term regulatory compliance, all while cutting carbon emissions.
Magnet-free synchronous reluctance motors and ABB’s LV Titanium concept, which combines a motor and speed control in a single compact unit, can reduce power consumption and carbon emissions.
Connected service solutions can help identify equipment issues before they cause failures, extend asset life, improve maintenance planning and reduce operational risk.
Energy storage is another important part of the response - and one of the most critical enablers of reliability. It can provide backup power, reduce peak demand, support renewable integration, help balance supply and demand in real time, and help avoid or defer costly grid upgrades.
For example, ABB's Battery Energy Storage System (BESS) as-a-Service solution for a UK commercial business park. The 5.5MW, 11MWh system supports a 1.4MW onsite solar installation and is engineered to reduce electricity costs by 80% through peak shaving, time-of-use energy management, and increased use of self-generated solar power.
Turning the energy trilemma into a competitive advantage
For decades, businesses have faced trade-offs between reliability, cost, and sustainability. Advances in electrification, automation, digital technologies, and energy storage are now making it possible to improve all three.
The opportunity comes from treating these technologies as part of one energy strategy, rather than a series of isolated upgrades. Electrification can improve efficiency. Digital tools can improve visibility and maintenance decisions. Storage can provide backup power, manage peaks, and support renewables. Service-based models can reduce upfront investment and link costs more closely to measurable outcomes.
The businesses best placed to lead the next industrial transformation will treat energy as a strategic asset. The priority is to build practical energy systems that protect operations, manage cost, and reduce emissions.
