Optimism among senior energy professionals in the growth trajectory of renewables has dropped from from 87% in 2022 to 78% in 2023, according to DNV’s annual Industry Insight survey.
This decline mirrors a broader shift in industry growth expectations and organisational confidence, with rising costs and supply chain disruptions pose significant hurdles to project viability and the pace of energy transition, stated DNV.
The renewables industry is also grappling with regulatory hurdles and intensifying market competition, according to the organisation.
There has also been a fall in optimism about organisational decarbonisation targets among survey respondents, with the majority (62%) believing that financial costs are the greatest barrier to reaching the goals of the Paris Agreement.
Ditlev Engel, chief executive of energy systems at DNV, said: “Amidst fluctuating prices, disruptions in supply chains, wavering investor confidence, and shifting regulations, stakeholders stress the importance of maintaining a long-term perspective, anchored in stable supply contracts.
“In this climate of uncertainty, the sector must demonstrate resilience, adaptability, and a strategic vision for the future to overcome policy ambiguities and foster economic growth, job creation, and prosperity for all.
“Furthermore, to effectively scale the energy transition across various industries, it’s imperative to streamline and standardize processes.
“A key challenge is to secure lasting regulatory support and clear visibility into the future to rapidly deploy existing technologies.
DNV’s survey stresses that nearly two-thirds of the energy sector view global political uncertainty as the primary threat to success over the coming year.
Specifically, DNV’s study reveals that nearly two-thirds (62%) of respondents perceive the 2024 wave of elections and potential policy shifts as one of the steepest barriers to growth.
Political uncertainty, which ranked as the 13th major concern in 2022, surged to sixth place in 2023.
2024 marks a record year for elections, with over two billion people heading to the polls.
The prospect of continued policy upheaval is of particular concern in the Americas, with 71% of Latin American and 67% of North American energy professionals highlighting political issues, reflecting the polarized landscape of energy and climate politics.