Global power sector needs $115t to achieve 2050 net zero goal

However, some consumers, including Singaporeans, do not want to spend more on electricity.

An investment of around $115t is needed to fuel efforts in the global power sector and achieve net zero emissions by 2050, according to a new analysis by Accenture Research.

Broken down, $53t is needed for clean power generation, $42t in transmission and distribution, and $20t in interim fossil fuels and alternative technologies such as carbon capture.

However, Accenture raised the issue of shouldering these costs. Energy providers are unable to shoulder the investment expenses alone, but passing these to consumers could more than double the average amount of household income spent on electricity bills from six percent to 14% by 2050.

“Consumers cannot afford to support this scale and pace of investment. Alternatively, keeping the transition affordable will delay achieving net zero by 35 years,” the report read.

Of the 16,800 respondents across 18 countries, Accenture said 69% believe that consumers have a role to play in net-zero transition. However, only 46%, mostly younger ones with higher incomes, are willing or able to assume some of the cost increases required.

In Singapore, more than 1 in 3 (36%) said they are unwilling or unable to pay a premium for clean energy investments, with more than half citing energy affordability as the cause. This was despite 81% of respondents saying they are interested in the transition to clean energy.

To attain the 2050 target without sacrificing affordability, Accenture laid out some strategies that include recentering the business around energy consumers, reinventing cost and productivity methods, and mitigating cost pressures with new revenue opportunities.