3 Forces Driving the Energy Transition

Talking Trends

The U.S. supply chain and trade environment are at a crossroads, shaped by a confluence of external and internal pressures. While these challenges are daunting, they also present opportunities for innovation, collaboration and long-term growth. By addressing these issues proactively, the U.S. can build a more resilient and sustainable trade ecosystem. Jonthan Todd, Partner at Benesch, Monica Gorman, Managing Director at Crowell Global Advisors, and Daniel Cannistra, Partner at Crowell & Moring, join Nasdaq TradeTalks to discuss the intersection of transportation, trade and supply chain policies.

"The number one challenge right now is simply awareness," Todd explains. "There's so much going on and there's so many drivers of change today for global supply chains. It can be U.S. policy on sanctions. It could be U.S. policy on export controls. Certainly U.S. policy on imports."

Gorman notes that, "There's a real opportunity for the administration to think about this. How do we bring business in in a new way and, and work together to build the right kind of strategic approach that's going to build more manufacturing in the United States and diversify away from adversarial nations to build those more resilient, redundant supply chains so that Americans can get what they need when they need it?"

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From your perspective, what are the biggest drivers for the energy transition?

We’re seeing three forces drive the energy transition: surging electricity demand, aging grid infrastructure and soaring electricity costs. Electrification is accelerating across sectors — from EVs and data centers to manufacturing and buildings — and the grid was never designed for this kind of decentralized, variable energy flow. The existing system was built around large, centralized coal, nuclear, or hydro plants. Now, the grid has to account for renewables like wind and solar that can be dependent on the weather and loads that shift more dynamically than ever before.

We need to rethink how energy is generated and how it gets to its final destination. Distributed energy resources like microgrids and on-site renewables like solar and energy storage are stepping up, particularly for industrial users who can’t afford downtime. Many are investing in their own infrastructure, not just for resilience, but because they often can’t secure the grid access they need fast enough.

At the same time, utilities are under pressure to deliver more power to more places while managing extreme weather events, the high costs of peaker plants (fossil fuel-powered facilities used during periods of peak electricity demand), and regulatory complexity.

How are emerging technologies, such as AI, quantum or accelerated computing, transforming the demand on energy infrastructure?

These emerging technologies are causing electricity demand to skyrocket not just in terms of total usage, but in how quickly and precisely power must be delivered. AI, high-performance computing, and quantum experiments are being built out in data centers and research hubs that can’t afford a millisecond of downtime. That creates massive power requirements paired with the need for extremely reliable, real-time energy delivery that can scale up or down on demand.

At the same time, we’re seeing more intelligence built into the grid itself to meet these demands. Modern substations and microgrids now use advanced analytics and automation to predict faults, manage bidirectional power flows, and respond instantly to shifting loads. That kind of adaptability is critical when energy demand is no longer centralized or predictable, especially in a world where technologies like AI and quantum computing require uninterrupted, responsive power at all times.

What are the biggest trends shaping the renewable space?

The grid is becoming more decentralized and that could be good thing. Industries, campuses and even neighborhoods are investing in their own renewables and energy storage. That boosts resilience and reduces pressure on utilities to meet every surge in demand. With transmission infrastructure struggling to keep pace, distributed energy resources are stepping in to help fill the gap.

Storage plays a critical role in managing this more complex energy landscape. Batteries don’t just provide backup power; they balance frequency, absorb excess generation, and deliver energy when and where it’s needed most. ABB’s new BESS-as-a-Service offering makes this capability more accessible, offering flexible, on-demand storage without requiring large upfront capital. The subscription-based model lowers financial barriers and enables faster deployment for companies of all sizes.

In addition, renewables themselves are getting smarter and more efficient. With advances in forecasting, load management, and battery integration, we’re making real-time, data-driven decisions and not just relying on whether the sun is shining. Intelligent platforms can predict production, optimize storage, and shift demand to match availability, making renewables more reliable and easier to integrate into the grid.

Finally, the economics are shifting. Peaker plants, once the default for periods of high demand, are costly and carbon intensive. As flexible solutions like microgrids and storage come online, we’re reducing reliance on fossil fuel-based backups and moving toward a more sustainable, adaptive energy system.

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