Australian industries accelerate energy transition with digital energy management

Australian companies across energy-intensive and infrastructure-driven sectors are facing rising regulatory, operational, and economic pressure to reduce emissions while maintaining reliability and cost control. National climate targets requiring a 62–70 percent emissions reduction by 2035 compared to 2005 levels have increased the urgency for measurable and credible energy transition strategies.

At the same time, companies must integrate higher shares of variable renewable energy, manage more complex assets, and ensure data transparency across operations. These challenges have pushed organisations to reassess how energy is monitored, controlled, and optimised at an operational level.

Objectives: Efficiency, visibility, and transition readiness
The primary goals identified by Australian organisations include improving energy efficiency, enabling the large-scale integration of renewable energy, reducing emissions intensity, and ensuring long-term operational resilience. Companies also aim to strengthen decision-making through reliable energy and sustainability data, while preparing their workforce and infrastructure for a low-carbon operating model.

Chosen approach: Digital energy management and automation
According to the Asia Pacific Energy Transition Readiness Index 2025, conducted by ABB’s Energy Industries division, Australian companies are increasingly deploying digital energy management systems, automation platforms, and advanced control technologies as core enablers of their transition strategies.

Technology advancements were identified by 68 percent of respondents as a top driver of the energy transition, while 51 percent highlighted artificial intelligence and automation as critical to improving the performance of existing assets. These solutions allow companies to monitor energy flows in real time, optimise process efficiency, and manage the variability associated with renewable energy sources such as solar and wind.

Why digital solutions were selected
Respondents cited the ability of digital and automated systems to provide accurate, trusted data as a key selection factor. Eighty-three percent expressed confidence in their technology and sustainability data, reflecting the importance of integrated platforms that connect energy, production, and emissions metrics.

The scalability of digital solutions also supports gradual transition pathways. Organisations can deploy automation and energy management incrementally across sites, aligning investments with capital expenditure cycles while maintaining operational continuity.

Deployment and organisational support
The research shows that 57 percent of Australian respondents already have an energy transition plan in place, and 52 percent have formal sustainability plans. This indicates that technology deployment is increasingly embedded within broader organisational frameworks rather than treated as isolated pilot projects.

Collaboration plays a significant role in implementation. More than 61 percent of organisations reported active collaboration with technology vendors, universities, and ecosystem partners, while 70 percent identified public-private partnerships as a major untapped opportunity to accelerate deployment and skills development.

Investment levels and measurable outcomes
Investment commitments are substantial. Ninety-nine percent of surveyed organisations expect to increase spending on energy transition initiatives, with 69 percent planning to allocate more than 10 percent of total capital expenditure over the next five years.

While the study does not disclose site-specific performance figures, the anticipated outcomes include improved energy efficiency, higher renewable energy penetration, and stronger control over emissions performance. Nearly 74 percent of respondents expect increased use of renewable energy within five years, reinforcing the role of automation and energy management systems in maintaining grid and process stability.

Workforce and long-term impact
The transition is also reshaping workforce requirements. Eighty-one percent of respondents identified a strong need for green-skilled professionals, and almost half are already recruiting talent with sustainability expertise. Digital energy systems are therefore not only technical tools, but also foundations for new operating models and skills development.

Conducted between May and June 2025, the study indicates that Australian industry is moving from planning to execution. The deployment of digital energy management and automation technologies is emerging as a practical response to regulatory targets, renewable integration, and the demand for reliable, data-driven energy performance across industrial operations.

www.abb.com