A recent survey of 1,994 business leaders across 18 countries found that 79% believe geopolitical instability has made electrification more urgent, while 91% said replacing fossil fuel-powered systems with electric alternatives would improve energy security. The research, commissioned by E3G, the We Mean Business Coalition and the Global Renewables Alliance, comes amid continued concern over global energy market volatility following disruptions to oil and gas supply chains.

While support for electrification was strong in both advanced and emerging economies, the survey suggests business ambition may be moving faster than the infrastructure development needed to support it.

Nearly seven in 10 respondents (69%) said businesses are electrifying their operations faster than governments are preparing power systems, while 63% said national power systems are not keeping up with demand. More than half (54%) named insufficient grid capacity as a barrier to electrification.

The findings are published in the report Powering up: business perspectives on electrification, which examines how businesses view the transition from fossil fuel-powered systems to electric alternatives.

María Mendiluce, Chief Executive of the We Mean Business Coalition, said repeated energy shocks had exposed the risks associated with fossil fuels and reinforced the business case for electrification. ‘Businesses are ready to throw the switch on a cleaner, better world that is more secure, prosperous and resilient,’ she said. ‘Governments need to catch up.’

Respondents linked electrification to energy security and competitiveness. Globally, 88% said electrification would make their business more competitive, while the same proportion said it would help their business grow. A further 84% expected electrification to reduce long-term operating costs and 80% said it would cut energy bills.

Those expectations are translating into ambitious electrification plans with 90% of business leaders surveyed expecting their operations to be largely electrified by 2035, including 73% who expect to reach that point by 2030.

Support was particularly strong in emerging markets such as Indonesia and Nigeria where 99% are expecting to electrify by 2035, while 96% of respondents in India and 97% in the Philippines said the same.

The results indicate a greater focus on commercial drivers than is often assumed. Respondents consistently linked electrification to lower costs, greater resilience to price shocks and stronger competitive positioning.

Businesses expressed little doubt about the benefits of electrification. The greater concern was whether grids and power systems would be ready to support it. Expanding and future-proofing electricity grids was identified as the single most important policy measure governments could take to accelerate the transition, with 43% selecting it among their top priorities. Overall, 89% supported investment in grid upgrades.

The report found that half (50%) of businesses had already delayed or cancelled projects because of market or policy barriers, including grid constraints and permitting delays, as well as the high upfront cost of replacing existing equipment.

More than eight in 10 respondents said investment in grid infrastructure would help make energy more affordable in the long term. Many respondents pointed to infrastructure and policy bottlenecks despite strong plans to electrify.

‘A gap is emerging between business ambition and the speed of infrastructure and policy delivery,’ the report states.

The concern appeared in different forms across major markets. In the US, 75% of business leaders said power systems were not keeping pace with electrification demand, while the figure was 80% in South Africa. In Indonesia, 83% said their companies were electrifying faster than the government was preparing the system.

The survey also points to growing concern about the economic consequences of slow progress on infrastructure and policy. Globally, 62% of respondents said they would consider moving operations to another country if their government did not provide sufficient support for electrification. Among businesses already operating internationally, the figure rose to 72%.

Access to reliable, affordable electricity appears to be playing a larger role in investment decisions. Countries that expand grid infrastructure and provide greater policy certainty may be better positioned to attract investment.

Conversely, delays to power system development could become a drag on competitiveness even where business demand for electrification remains strong.

Across the markets surveyed, support for electrification was closely tied to concerns about energy security and business costs. Many businesses now view access to reliable electricity infrastructure as an important factor in future investment decisions. For policymakers, attention may be shifting from encouraging electrification to ensuring electricity infrastructure can keep pace with demand.