Navigating Capital Challenges: Investment Landscape in the Global Energy Sector

Near-term Energy Transition Challenges

Change is rarely easy, especially when it is affecting a system as massive and complex as the global energy industry. There are many challenges facing the market that need to be considered as the energy transition continues. These challenges come from various angles and can influence the way decisions and investments are made. There are financial, operational, technological, and political challenges to weigh and understanding them is crucial for businesses within the energy transition. Krishnan & Associates provides market research & analysis, competitive research, forecasts, and voice-of-customer studies to help our clients understand the forces impacting their business and their target markets.

At a high level, K&A’s market analysis team highlighted some of the core challenges facing the market today and has provided the listing below. If you require additional information on these or other challenges that you are facing within the energy industry, please contact us to see how our market analysts can help uncover the data you need to make informed decisions.

 Availability of Capital/Investment

  • Borrowing costs have risen

  • Bank of England, US Federal Reserve raising rates.

  • Inflation has made financing projects more difficult across the board.

  • Venture capital funding for clean energy faces headwinds in a difficult macro environment.

Energy & Fuel Security

  • Energy security is crucial for economic growth, managing inflation, and establishing geopolitical influence.

  • Countries are forming alliances by balancing energy security concerns with climate change objectives.

  • Grids worldwide are confronted with persistent threats.

  • Cyber threats pose significant risks to the grid and critical infrastructure.

  • Utilities are vulnerable to physical attacks.

  • Existential hazards, including severe weather events, solar storms, and electromagnetic pulses (EMPs), present substantial risks to the grid.

Grid Flexibility & Reliability

  • 62% of global electricity will be from RE by 2050.

  • Variability and unpredictability of RE.

  • Need to develop new infrastructure.

  • Stability of the power grid, and security of supply.

  • T&D lines reaching end of life.

Geo-Political Tensions /Contingency Plans

  • Russian Invasion of Ukraine causing shift away from fossil fuels

  • Resource Nationalism:

    • Chile with Lithium, used for batteries.

    • Myanmar with Tin, used for electronics and semiconductors.

    • Indonesia with nickel, used for EVs.

    • Mexico with lithium used for batteries.

    • Zimbabwe with lithium used for batteries.

 Other Issues

  • Continuing Governmental Tax and Other Incentive Support.

  • Additional Government-sponsored R&D.

  • Supply Chain Constraints.

K&A helps generate leads, proposals, and sales for Business Development to the Energy and Power Industry

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