Embracing the New Decarbonization Mindset

The energy sector stands at a pivotal juncture, with many large utilities committed to net zero by 2050  and a growing cohort committed to voluntary reductions by 2030. In the past year, a new challenge in the US has emerged: building capacity to satisfy electricity demand growth driven by new data centers and domestic manufacturing.  

While the energy transition involves many complexities, decarbonization remains a central long-term commitment. Companies and organizations responsible for managing the grid have a planning horizon that exceeds that of individual government administrations and short-term market imbalances. The requirement is to drive industry action that supports a robust economy. Achieving net zero emissions within the next 25 years means acting now. 

This evolving decarbonization mindset is characterized by three key transitions: moving from risk-avoidant to risk-fluent, territorial to collaborative, and theoretical to operational. 

Together, these changes empower energy providers to strategically decarbonize operations, align with increasing demand for cleaner, reliable power, and build resilience for the future. Importantly, this approach emphasizes progress through consistent action, no matter how incremental, rather than waiting for a singular solution. 

1: From risk-avoidant to risk-fluent

Historically, power providers prioritized reliability, often avoiding risks. However, the current energy landscape demands a new approach. Climate change and unpredictable weather patterns have shifted the equation – the risks of inaction now outweigh the challenges of decarbonization. 

A new relationship between power providers and risk is emerging, driven in part by hyperscalers like Amazon Web Services, Microsoft, and Google. These cloud computing giants require massive power to support AI, data centers, and industrial growth. To meet this surging demand, utility providers are accelerating power plant development and selecting technologies with a ‘path to clean’. Power providers that can work with state and local governments to build capacity the fastest will provide disproportionate economic benefit to the communities they serve.  

While speeding up development involves risk, becoming risk-fluent is essential. Capacity will go to the providers that act decisively today. For those prepared to navigate risk thoughtfully, the rewards are clear: operational success, market leadership, robust stakeholder economic growth, and progress toward net zero goals. 

Risk-fluent power providers adopt strategies that balance opportunity with careful planning and execution, including:
•    Robust project development: Minimize risks upfront by leveraging data, analytics, and feasibility studies. Engaging stakeholders early and consulting with experts ensures that smaller issues don’t escalate into major challenges later. 
•    Embracing new technology: Emerging technologies carry uncertainty, but rigorous research, pilot testing, and lessons learned from early adopters help mitigate risk and inform decisions. 
•    Deploying proven solutions: Incorporating technologies such as electrolyzers and hydrogen-capable gas turbines can reduce uncertainty. Partnering with experienced tech providers accelerates implementation and ensures reliable, effective outcomes. 
•    Operational safeguards: Daily operations carry inherent risks, but preventative maintenance and performance monitoring minimize costly disruptions, such as equipment failure or downtime.
•    Collaboration with state and local partners: States stand to gain jobs and tax revenue from new data centers, and many are creating forward-thinking policies that support critical inf rastructure development. 

The energy transition is like entering a new country where risk is the native language. To succeed, power producers must become fluent, gaining a deep understanding of the opportunities and trade-offs of each path to decarbonization. By translating risks into actionable strategies, they can deliver value, future-proof their operations, and empower customers. 

2: From territorial to collaborative 

The scale and complexity of decarbonization demands a cross-sector, collaborative approach that moves beyond siloed thinking and territorial boundaries. Across the industry, we’re seeing an embrace of partnerships, bringing together technology companies, utilities, energy providers, and energy solutions providers. 

Given the scale of today’s net-zero challenges, no single organization or sector can tackle decarbonization alone. Close collaboration between government and industry, as well as along the entire value chain, is essential to advancing next-generation technologies and strengthening market demand for low-carbon solutions. 

A prime example is the Advanced Clean Energy Storage project (ACES Delta) in Delta, Utah, a collaboration between Mitsubishi Power and Chevron. The project focuses on producing, storing, and delivering green hydrogen to decarbonize the western United States. Currently under construction, ACES Delta will utilize Utah’s massive geological salt dome caverns to store hydrogen, with each cavern capable of holding enough hydrogen to produce 300 gigawatt hours of clean energy. Chevron’s expertise in the fuels business complements Mitsubishi Power’s advanced clean energy technology, aiming to accelerate decarbonization and stimulate hydrogen demand across many sectors, such as transportation, power, and industrial sectors.

At the heart of successful collaboration is a spirit of openness and shared knowledge, which drives meaningful progress across the industry. 

3: From theoretical to operational 

The International Energy Agency’s World Energy Outlook emphasizes that a slow, cautious approach to decarbonization is insufficient. Current policies are projected to lead to a 2.4°C rise in global average temperatures by 2100, resulting in severe climate risks. 

The urgency to act is evident – globally, across industries, and down to individual companies. The outdated “wait and see” mindset must shift to “learn and take action.”

This means rapidly piloting emerging technologies on a manageable scale, identifying effective solutions, and scaling up to meet demand. Simultaneously, power producers can adapt existing infrastructure to enable decarbonization. For example, hydrogen-capable gas turbines combine the reliability required today with the potential for increasingly clean energy tomorrow. 

In Japan, Mitsubishi Power’s Takasago Hydrogen Park is the first facility in the world capable of demonstrating and validating the entire hydrogen value chain, from production and storage to power generation. The complex is expected to accelerate the commercialization of hydrogen gas turbines, contributing to the rapid realization of a carbon-neutral society. In the coming months, we’re demonstrating a 50% hydrogen blend on our grid-connected JAC gas turbine at the park. Blends like this bridge the needs of today with solutions of the future. The new decarbonization mindset prioritizes action, and it starts today. 

The payoff

Decarbonization is no small task, either for a utility’s own operations or for customer operations. If it were as simple as flipping a switch, the industry would have already achieved it. The challenges and uncertainties are real, but so are the imperative – and the rewards.

By acting now, power producers can align with the evolving expectations of their customers and the global community. Those who embrace this proactive mindset will be well-positioned to adapt to evolving trends, shape the clean energy market, and lead the way. 

This is more than futureproofing; it’s about building, influencing, and benefiting from the energy systems of tomorrow. The new decarbonization mindset empowers power producers to lay the foundation for a sustainable future – for their business, their customers, and society at large.