Why Renewables Are the New Bedrock of Business Resilience

For decades, global energy markets – particularly oil and gas – have been shaped by volatility. Geopolitical shocks and supply chain disruptions can send prices soaring overnight, leaving industrial leaders exposed. That instability is now forcing a strategic rethink: renewables are no longer just a sustainability initiative, but a core lever for resilience and cost protection.

According to the International Energy Agency’s 2026 Global Energy Review, wholesale electricity prices have remained volatile and structurally elevated across major economies, creating intense competitive pressure for energy-intensive industries. In 2025, higher natural gas prices continuously pushed up power futures, keeping businesses exposed to unpredictable operating costs. Faced with rising costs and supply volatility, forward-thinking companies are making renewables a core part of their energy strategy.

Moving Beyond the Era of Volatility

Heavy reliance on fossil fuels has left OEMs exposed to price swings that are difficult to manage over the long term. That is now changing: a record 800 gigawatts of renewable capacity was added globally in 2025. Integrating these sources can reduce exposure to commodity volatility and accelerate the shift to a more predictable, electrified future.

The business case for this transition rests on three clear advantages:

1. Predictability: Unlike fossil fuels, the fuel inputs for wind and solar are free. Once the infrastructure is in place, the marginal cost of energy remains near zero. That predictability helps CFOs plan and hedge energy costs more effectively.
2. Stability: The rapid growth of battery storage – with capacity additions by 40% last year alone – is helping solve the long-standing challenge of intermittency. For industrial users, battery storage smooths supply fluctuations and helps ensure reliable renewable power for 24/7 operations.
3. Resilience: By decentralizing energy production through microgrids and on-site solar, companies can reduce reliance on fragile grids and distant supply chains. In 2025, the share of solar PV and wind reached 30% in the European Union, surpassing fossil fuels for the first time. In an era of climate and geopolitical uncertainty, generating power closer to the point of consumption strengthens self-sufficiency and operational continuity.

A Call to Action for Business Leaders

Low-emissions energy sources contributed nearly 60% of the growth in global demand last year. Yet, the energy landscape remains deeply fragmented and volatile.

An electrified energy portfolio with renewables as a major contributor is one of the strongest defenses against future supply shocks and price spikes.

The question is no longer whether to broaden your energy mix with renewables, but how quickly you can build a more stable and sustainable foundation.

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Giampiero Frisio is the President of ABB Electrification.