How clean electrification can build energy security for business
Molly Walton, Director, Energy at We Mean Business Coalition and Celine Le Goazigo, Energy Manager, World Business Council for Sustainable Development
Electrification reshapes energy security risks for businesses. With the right policy and investment, electrified systems can enhance resilience while supporting competitiveness and economic stability.
Every day, around 20 million barrels of oil pass through the Strait of Hormuz between Oman and Iran. Roughly a fifth of global energy consumption depends on this single narrow chokepoint. Energy security is not a new concern, but the vulnerabilities it exposes are becoming harder to ignore.
At forums like the Munich Security Conference, which holds its 62nd meeting on 13–15 February to discuss global security challenges, the definition of security is evolving. While energy security has long been a strategic concern, recent volatility has underscored how closely business performance is tied to the structure and reliability of energy systems. Security now extends beyond troops, borders and deterrence to include economic resilience and the infrastructure that businesses and communities depend on — with energy at its core.
Today’s fossil fuel-based energy systems expose businesses and governments to several structural risks. First and foremost, it leaves them exposed to price shocks and supply disruptions affecting operating costs. Moreover, climate impacts increasingly shape investment decisions and long-term competitiveness. And, as the global energy transition reduces fossil demand, supply may become more concentrated amongst a smaller number of exporters. For countries and businesses that remain dependent, that means greater exposure to market power, geopolitical leverage, and price volatility.
Reducing security risk means building energy systems that keep costs predictable and give businesses more control to operate.
Fossil fuel markets are largely shaped by global trade routes, whereas electricity systems allow more energy to be generated closer to where it is used and exchanged through interconnected networks. This supports more competitive economies by delivering cheaper, more stable and cleaner energy while reducing exposure to geopolitical leverage.
Electrified economies still require risk management, yet the nature of this risk shifts from mitigating against fuel scarcity to ensuring system resilience. That means less emphasis on stockpiling and more focus on redundancy and flexibility. For instance, grids can be vulnerable to cyber-attacks, as demonstrated by the 2015 attack on Ukraine’s electricity network, and concentrated supply chains for critical minerals create new dependencies that must be actively managed.
However, if well managed, electrified economies can enhance energy security and economic stability by reducing exposure to price shocks through diversified, distributed and interconnected systems.
Energy insecurity as a business risk
For global businesses, exposure to energy-driven shocks has become a material operational and financial risk. Sudden price spikes or supply disruptions can cascade through supply chains, disrupting production, squeezing margins, and undermining delivery commitments. This risk was starkly illustrated in 2022, when German energy utility Uniper required a €13.5 billion government bailout after reduced Russian natural gas supplies. The experience of 2022 illustrated how closely corporate balance sheets are linked to energy markets, prompting many companies to reassess their sourcing strategies.
In response, companies are increasingly looking to switch to clean electricity to power their operations and are using tools such as corporate power purchase agreements (PPAs) to stabilise energy costs while cutting emissions. Long-term access to clean electricity at agreed prices through PPAs can provide greater certainty for investment decisions and supply-chain planning.
Beyond large utilities and multinationals, smaller and medium-sized enterprises also feel the financial squeeze of energy price risk. In Germany, a federal program supported by KfW expands access to low-interest loans, grants and financing of up to €25 million for commercial energy-efficiency investments. This enables companies of all sizes to adopt solutions such as renewable process heat and advanced energy-management technologies, helping to stabilize costs and reduce exposure to market fluctuations.
Unilever’s solar PPA in India illustrates this shift. The agreement will cut electricity-related emissions by more than 28,000 tonnes of CO₂e per year over its 20-year lifetime and is expected to deliver around 25 % cost savings for Unilever and its ten partner manufacturers. Supportive policy has been critical: the Government of India waived central transmission charges for early adopters, meaning businesses with agreements in place before June 2025 will pay no transmission fees for the duration of their contracts. By lowering both cost and risk, this policy enabled Unilever and its suppliers to secure a long-term, reliable clean energy supply.
Policy in action: Germany’s logistics sector
Few sectors feel energy shocks as directly as logistics. Transport remains one of the most fossil-fuel-dependent parts of the economy, with over 90 % of its final energy consumption coming from oil. Volatility in oil markets directly affects freight costs, routing, and reliability, making energy security a core business concern for the sector.
That exposure is driving change. Logistics providers such as DB Schenker are electrifying parts of their operations, including heavy-duty trucks and terminal equipment, to reduce reliance on diesel, stabilise operating costs, and improve resilience to fuel price shocks.
Targeted policy has played a decisive role in making this shift viable. Germany has extended motorway toll exemptions for zero-emission trucks until 2031, significantly reducing operating costs for fleet operators and providing long-term planning certainty. At the same time, EU state-aid approval in late 2025 unlocked a €1.6 billion German programme to roll out high-power charging hubs for electric trucks along major transport corridors. This is complemented by private investment, with E.ON and MAN Truck & Bus deploying around 125 public charging sites across Germany. Together, these measures are helping to shift the logistics sector away from oil dependence, reducing exposure to price shocks and strengthening preparedness for future disruption.
What business needs from policymakers
Security in an electrified economy depends on system design as much as supply. Clean electrification and renewables reduce exposure to fossil fuel markets and geopolitical leverage. This transition also changes the nature of energy security risk, shifting it from fuel supply to system resilience. For policymakers, this means treating electricity systems as critical national infrastructure that must operate reliably under stress.
Strengthening grids, scaling storage and flexibility, hardening infrastructure against climate impacts and reinforcing cyber security resilience and capabilities and are central to minimising risk. When these conditions are in place, connectivity becomes a resilience asset, supporting a more stable foundation for economic activity.
In a period of shifting geopolitics, policies that enable businesses to invest in clean, local energy infrastructure are increasingly strategic.
Businesses that move early on electrification are better positioned to access stable energy costs, new revenue streams and more resilient supply chains. Governments have the policy tools to accelerate this shift, and businesses that act early will be rewarded in the marketplace with greater stability, competitiveness and long-term growth as clean electrification reshapes energy systems.