Businesses in 18 countries are stepping up plans to adopt clean electrification, with many viewing it as a way to strengthen energy security, reduce operating costs, and remain competitive, according to a global survey of senior executives.

Over 90% of the executives felt that increased clean electricity usage would enhance energy security. Close to 80% felt that the geopolitical situation has raised urgency to move from fossil fuels, while close to 90% expect that the majority of their operations will be electrified by 2035.

The survey was held from April 20 to April 26 during a period when there was uncertainty about energy supply due to tensions in the Middle East and disruption near the Strait of Hormuz.

Carried out by E3G, the We Mean Business Coalition, and the Global Renewables Alliance, the report is based on the views expressed by 1,994 CEOs and senior executives of medium to large firms in 18 economies.

There were several reasons for moving toward electrification, according to the respondents. Over 90% felt that expanded renewable electricity usage will contribute to economic development in their countries. Close to 88% felt that it would make their businesses more competitive, while 84% expect reduced operating costs in the future. Five out of six respondents also expect that this process will generate employment for them.

The replacement of fossil fuel-based machinery with electricity-driven ones became an increasingly shared concern. Over three-fourths of firms plan to be mainly electrified by 2030, while by 2035, 90% of the companies anticipate that they will be mainly powered by electricity.

Renewable electricity attracted similar levels of interest. Over 80% of the executives think that the main electricity source in their country should be renewables. 90% of the surveyed managers approved investment in solar energy, while 81% backed the expansion of onshore wind energy.

Several business leaders also pointed out that government policy is lagging behind business plans. Almost 72% of respondents believe that the existing policies are too slow to facilitate electrification, while 69% say that businesses are developing faster than the electricity system is ready.

Grid modernisation became the top policy priority. Respondents also mentioned the need for stable policies, rapid permitting processes, and cheaper electricity.

Firms from developing economies had some of the highest optimism with regard to electrification. The countries showing the highest adoption intention include Indonesia, Nigeria, the Philippines, India, Colombia, and South Africa. Of the firms surveyed in India, 94% think that renewables would aid economic development, while 92% are optimistic about their ability to enhance competitiveness.