Energy tech to watch: breakthroughs in the energy sector
The world’s energy landscape is undergoing profound and rapid transformation. Countries and companies are facing a complex dual challenge: meeting rising energy demand while significantly reducing carbon emissions. This transition is being shaped by technological innovations, shifting economic priorities and a growing global consensus on the need for a lower-carbon future. In addition to strategies focused on energy efficiency, emerging technologies have the potential to further revolutionise production – particularly within the hydrocarbon sector – and fundamentally alter how economies consume energy.
The state of play: growing demand in a warming world
Global energy demand continues to surge. According to the International Energy Agency (IEA) Global Energy Review for 2024, global energy demand grew by 2.2% in 2024, a rate faster than the average over the past decade. This growth was led primarily by the power sector, where electricity demand soared by 4.3%.1 Several factors contributed to this spike including:
- Record-breaking temperatures, driving demand for air conditioning
- Electrification across industries and homes, accelerating the shift away from fossil fuels
- Explosive growth of digitalisation and data centres, requiring vast amounts of energy to operate
These trends underscore a critical reality, although the energy transition is progressing, the global energy mix remains unsettled and continues to evolve.
The rise of energy storage and management
The adoption of renewables like solar and wind power, along with the advancements in hydrogen and carbon capture, is helping leaders address the dual challenge of meeting energy demand while helping to mitigate carbon impact. A challenge with renewable sources is their unpredictable availability. Solar generation can be disrupted by cloud cover and wind turbines may stop during periods of low wind. This variability makes it difficult to depend on renewables as a consistent power source.
This makes Battery Energy Storage Systems (BESS) essential.2 BESS can store excess electricity for later use during a power outage or shortage, helping to support grid stability and enable more seamless integration of renewable energy sources. Alternatively, lithium-ion systems can be complemented with iron flow battery technology, which offers a longer-duration storage option with a lower operational cost over time, making it more economical with readily available materials.
Another foundational element of future energy use is the Energy Management System (EMS).3 By combining software and hardware, EMS collect, analyse and visualise data in near-real time to optimise generation, storage and/or consumption of electricity to help lower costs and emissions and stabilise the grid.
The global EMS market is projected to reach $111.86 billion by 2030, up from $53.26 billion in 2024.4 The advanced integration of AI and IoT for intelligent data analysis, widespread adoption of cloud-based platforms and the shift toward decentralised and renewable energy systems are some trends driving the segment. Demand-side management, remote monitoring and the emergence of energy as a service (EaaS) models are also important.
Accelerating the low carbon transition with carbon capture and hydrogen
Beyond the grid, impactful emissions reduction solutions are critical across the broader energy ecosystem. Carbon Capture and Storage (CCS) has emerged as a critical enabler in the low-carbon transition, particularly for hard-to-abate sectors. CCS technologies are designed to help prevent CO2 emissions from fossil fuel-led industrial facilities, including power stations and refineries, from reaching the atmosphere. Captured CO2 is then compressed and shipped to long-term, deep underground storage.
Fifty CCS facilities are operating globally and 628 more are in development across various sectors, according to Global CCS Institute’s Global Status Of CCS 2024 report.5 CCS can serve as a powerful transitional solution as facilities and grids are modernised by enabling the integration of variable renewable energy sources and decarbonisation of fossil fuel power plants and other industrial sources.
The role of hydrogen in the energy mix has accelerated dramatically over the past decade. The global push toward decarbonisation has spurred innovation with the scalability and affordability of renewable energy systems and advances in electrolyser technologies driving the production of green hydrogen.6 Hydrogen fuel cells have the potential to make a significant impact in sectors like heavy-duty transportation, offering a zero-emissions alternative for trucks and buses. Additionally, blending hydrogen into existing natural gas pipelines can help heat homes and streamline efficiency at industrial operations.
At the same time, blue hydrogen – produced through natural gas reforming combined with CCS – is expected to play a critical role in the near term, particularly in regions with abundant, lower-cost natural gas. According to McKinsey, blue hydrogen could account for 20–35% of global hydrogen supply by 2050, complementing green hydrogen and helping to build a more robust low-carbon hydrogen economy.7
An autonomous energy future
The power and utilities (PU) sector is undergoing its own evolution, driven by the three Ds: decarbonisation, decentralisation, and digitalisation.8 According to EY, 93% plan to invest a “great deal” or “moderate” amount in digitisation technologies and modernisation over the next five years.9
Smart Integration of systems or software is becoming crucial for daily operations of power utilities. For example, bringing together layers of IT driving operational processes allows real-time data and analytics to be shared and leveraged for more informed decisions amid fluctuating demand.10
Smart Integration connects and coordinates component parts of the grid, enabling power utilities to manage electricity flow and maintain grid stability and reliability. It also enables utilities to automate processes, slash time-consuming manual tasks and improve operational efficiency.
This is made possible by technology such as SCADA (Supervisory Control and Data Acquisition), a computer-based system to remotely monitor and control processes and equipment in real-time. Edge devices, which are network endpoints that process, transmit and store data at or near its source, reducing reliance on centralised servers for analysis.
One of the most significant developments is the move toward an autonomous energy future, driven by AI. While AI is driving surging electricity demand from data centres, it is also poised to transform how the energy sector works. The IEA projects that electricity demand from data centres could more than double by 2030, but AI’s potential to automate systems that can also deliver predictive, self-optimising operations.10
For example, AI alongside ML, integrates into smart systems to provide deeper insights and faster solutions by learning from data patterns, thereby enabling real-time monitoring, predictive maintenance and automated control.
Autonomy in action
Automation technologies are already bringing benefits, such as autonomous grid management, reducing human intervention by enabling real-time data analysis and automatic adjustments to optimise efficiency, reliability and resilience.
Building on this concept, self-healing grids can automatically detect, isolate and recover from faults, minimising human intervention and service interruptions. It uses a combination of sensors, communication networks, control systems and automated switches to reroute electricity and restore service to unaffected grid areas. There are companies implementing self-healing solutions to help enhance grid performance. AI-optimised energy storage tackles renewables intermittency by enhancing battery efficiency, predicting energy demand and optimising grid stability, significantly improving renewable integration. China currently leads the way with AI-driven smart grids and large-scale energy storage projects, such as its Dalian Flow Battery Energy Storage Peak-shaving Power Station.11
Autonomous renewable plants, meanwhile, generate power using renewable energy sources and operate with minimal to zero human intervention, leveraging AI, digital twins and IoT technologies to manage, optimise and control operations. These plants enhance efficiency, reliability and safety by analysing vast data sets to make real-time adjustments, learn from historical performance, and adapt to changing conditions to meet demand and reduce environmental impact.
The convergence of these technologies – BESS, AI, IoT and digital twins – is creating the foundation for a more resilient energy system with reduced carbon emissions.
Learn more about Honeywell’s energy solutions at https://www.honeywell.com/us/en/solutions/energy-transition/energy-solutions and download its latest eBook, Strategies to Strengthen the Global Energy Security.
References:
- IEA, “Global Energy Review”, Published, March 2025, (Accessed September 29, 2025)
- National Grid, “Energy Explained”, Published, May 2023, (Accessed September 29, 2025)
- Gridx, “Flexibility report 2025”, Published, September 25, 2025, (Accessed September 29, 2025)
- Grand View Reserach, “Energy Management Systems Market”, Published, date unavailable, (Accessed September 29, 2025)
- Global CCS Institute, “Collaborating for a Net-Zero future”, Published, July 2024, (Accessed September 29, 2025)
- StartUs insights, “Top 10 trends & Innovations impacting the Hydrogen Economy in 2025”, Susi Wallner, Published, August 9, 2024, (Accessed September 29, 2025)
