Increasing the voltage : sequencing decarbonisation with green power and efficiency

Abstract

The industrial sector’s increasing electricity demand (direct and indirect), driven by the electrification of processes and the production of green hydrogen, poses significant challenges for achieving decarbonisation goals. While switching to renewable electricity and offsetting emissions appears straightforward, the gap between current generation capacities and projected demand remains substantial. This article analyses survey data from the Energy Efficiency Index of German Industry (EEI), revealing that manufacturing companies aim to reduce 22.1% of their 2019 emissions by 2025 and 27.3% by 2030, primarily through on-site measures. However, given the slow pace of renewable capacity expansion and the increasing electrification across sectors, it becomes evident that the envisaged green electricity share of 80% by 2030 will require far more capacity than currently planned. To address this challenge, the article introduces a decarbonisability factor to better assess on-site versus off-site measures, highlighting the need for a strategic sequencing of efficiency and renewable generation. To support decision-makers, the article calls for improved data collection and periodic reassessment to account for changing geopolitical and economic conditions.