The energy landscape is rapidly changing, driven by innovation, sustainability goals, and the urgent need to address global challenges. For businesses, staying ahead of these shifts isn’t just an advantage — it’s crucial for cost reduction, competitiveness, and resilience in a dynamic economy. This year, we anticipate these trends to accelerate significantly, demanding proactive strategies and adaptable solutions.
Here we highlight the key energy transition trends to watch this year, their implications for businesses, and how Karit is empowering organisations to lead during this transformative period.
Key energy transition trends to watch in 2025
1. Accelerated transition to renewables
Governments and businesses are accelerating their net-zero goals. According to the United Nations, over 100 countries, responsible for approximately 82 per cent of global greenhouse gas emissions, have pledged some form of net-zero commitment.
In Australia, state and territory governments are incentivising industry decarbonisation through grants and educational initiatives, stimulating renewable project investments and infrastructure development. This aligns with global trends, although specific policy changes in both Australia and New Zealand will influence the adoption pace.
- How Karit helps
Karit’s Virtual Power Plant (VPP) platform enables businesses to manage renewable energy assets at scale, optimise their output, and reduce carbon emissions. Our advisory services help our customers establish robust renewable energy plans tailored to their organisation’s specific needs. We also support our partners to establish and operate virtual energy ecosystems.
2. Boom in Distributed Energy Resources (DER)
Businesses are increasingly adopting DER such as solar, wind, and batteries for efficient energy and asset management. Australia’s high rooftop solar penetration, among the highest globally, is a prime example, driven by falling technology costs and abundant resources. Distributed solar continued its strong growth in Q4 2024, breaking output records nationwide (PV Magazine Australia). We anticipate continued growth in large-scale renewable projects and rooftop solar, but grid stability is paramount.
New Zealand is also experiencing increased rooftop solar and solar farm uptake. VPPs are becoming increasingly vital globally for integrating and managing DERs at scale, as demonstrated by Singapore’s recent recognition of their importance in the renewable energy mix.
- How Karit helps
The Karit platform seamlessly aggregates DER assets, enabling proactive management and ensuring grid reliability. Businesses can also use Karit to monitor and trade surplus energy in real time, maximising the value of DER investments.
3. Rise of energy storage solutions
Energy storage technologies, particularly Battery Energy Storage Systems (BESS), are gaining significance for grid stability. The reducing cost of lithium-ion batteries and the increasing availability of diverse storage solutions are driving adoption. Energy storage addresses the inherent intermittency of renewables by balancing renewable power generation with consumption. For businesses, this is critical for consistent operations and peak demand response.
- How Karit helps
Karit’s platform incorporates intelligent energy management, connecting energy storage with other distributed energy assets. This allows businesses to maximise the value of their storage assets, optimise operational performance, and contribute to a more resilient grid.
4. Electrification of everything
The increasing electrification of transportation, heating, cooling, and industrial processes is driving up electricity demand. This rapid shift is accelerating the need for renewable generation, grid upgrades, and electric vehicle (EV) charging infrastructure.
Manufacturing and urban infrastructure are also electrifying to reduce emissions and comply with environmental regulations. In New Zealand, for example, Fonterra, one of the world’s largest dairy companies, has recently announced it is taking another significant step toward its climate goals and operational resilience with $150 million in investments in electrification projects across the North Island over the next 18 months.
- How Karit helps
Karit’s AI-powered insights enable organisations to integrate electrification strategies effectively, ensuring grid connections, energy flows, and cost efficiencies align with business goals. We help you navigate the complexities of electrification and manage your energy consumption.
5. Rising energy costs and volatility
Despite growth in renewables, energy prices remain volatile due to global fossil fuel prices, extreme weather events, aging infrastructure, and geopolitical instability. To overcome these challenges and mitigate mounting costs, businesses need to improve energy efficiency and explore demand and energy management solutions.
- How Karit helps
Karit helps organisations reduce costs through precise demand management and optimisation. Our intuitive asset management tools and streamlined workflow help businesses to unlock the full potential of energy assets and inform operations and maintenance programs. Businesses can also unlock new revenue streams by trading surplus energy within flexible market scenarios, turning volatility into opportunity.
6. Policy and regulatory changes
Policy and regulatory changes are vital for the pace of the energy transition. In Australia, projects and initiatives by the Australian Energy Market Commission, Australian Energy Market Operator, Australian Energy Regulator, and other organisations are working to address immediate challenges. A whole-of-industry approach is essential for navigating the evolving landscape.
- How Karit helps
Our team actively engages with industry bodies like the Smart Energy Council, contributing to policy development and ensuring our platform remains aligned with the latest regulations.
7. AI in energy management and forecasting
Advanced artificial intelligence (AI) and machine learning tools are revolutionising energy management, enabling smarter decisions from demand response to predictive analytics.
- Advanced algorithms now predict demand, analyse real-time energy markets, and trigger decisions that maximise efficiency.
- Artificial intelligence solutions are streamlining load distribution and optimising power usage patterns.
Businesses leveraging predictive analytics can remain agile and resilient in the face of fluctuating energy conditions.
- How Karit helps
Karit’s AI-driven tools offer actionable forecasts, empowering businesses to improve decision-making and automate performance optimisation. From demand response to grid stability contributions, Karit simplifies complex energy scenarios. Our commitment to continuous innovation, exemplified by our virtual agent development, ensures you have access to the latest AI-powered solutions.
8. Smart energy trading and Virtual Power Plants
VPP technology is rapidly becoming essential for energy asset management, load optimisation, and trading surplus energy. Grid operators are also relying on VPPs to support system stability without expanding costly infrastructure. Cybersecurity is a growing priority for the energy industry, given increasing threats and heightened regulatory scrutiny.
- How Karit helps
Karit provides robust energy trading capabilities through an intuitive interface, enabling businesses to capitalise on market opportunities safely and efficiently. We prioritise cybersecurity to ensure your data and operations are protected.
How Karit is helping businesses lead in 2025
Karit delivers a comprehensive platform. Our partner programs give businesses access to onboarding resources, technology, expertise, advanced tools and more.
Here’s how Karit can empower your business:
- DER management: Aggregate and unlock the potential of your solar, battery, and other renewable energy assets.
- Energy market participation: Trade surplus energy confidently through user-friendly tools.
- Cost reduction: Implement energy efficiency strategies to lower operating expenses.
- Sustainability: Transition seamlessly to renewables and achieve net-zero goals.
Karit’s secure, scalable, and future-ready platform empowers businesses to control their energy strategy, regardless of how complex your needs are.
Partner with Karit to optimise your energy strategy in 2025
The energy landscape presents both challenges and opportunities. Businesses that adopt innovative solutions like Karit’s platform will thrive and contribute to a sustainable future.
Learn how Karit can address your specific energy challenges. Contact our team for a consultation or explore our innovative platform through a free demonstration.
More resources:
About Karit – the go-to VPP, DER and energy management platform for businesses
Everything you need to know about Virtual Power Plants
