In the current issue of the German trade magazine Changement, Matthias Baum, Partner at Porsche Consulting, explains why the success of the energy transition depends less on technology or capital than on the ability to scale industrial capacity quickly and reliably.
The expansion targets for renewable energy and grid infrastructure have been defined, and the necessary investments have been allocated. At the same time, key components for electrical infrastructure and grid connections for onshore and offshore wind farms are in short supply. As a result, lead times for items such as transformers and cables are increasing, causing the energy transition and digitalization to compete for the same scarce resources. Another challenge is that many parts of the energy industry still rely on customized solutions rather than scalable standards.
To achieve speed, scalability, and cost efficiency in the energy transition, the industry must place a much stronger focus on productization, standardization, and industrialization. Only if operators, manufacturers, and other market participants establish common standards will it be possible to achieve these ambitious goals over the long term and at an affordable cost.
Read the full article in Changement magazine (German only).