The transition from fossil fuels to sustainable energy is no longer a future ambition, it’s a present-day environmental and economic mandate. For energy sector organizations, this shift demands more than technological upgrades. It calls for a complete rethink of business models, operational frameworks and how value is delivered to customers and stakeholders.

According to McKinsey, achieving net-zero emissions by 2050 will require $275 trillion in total investments. Current annual investments, estimated at $755 billion, fall significantly short of this target. This gap highlights the urgency and the scale of change required across the sector. The BNEF report quantifies the transition cost to net zero over the next two and a half decades at $2.4 trillion for Australia in Power Sector. New Zealand requires an additional $34 billion in investment by 2035 to transition to a net-zero economy, primarily through renewable energy, energy storage, and green infrastructure, according to a report by the Investor Group on Climate Change.

In the ANZ region, this transformation is propelled by ambitious national targets and strong government backing. Both countries have committed to achieving net-zero emissions by mid-century. Significant investments are being directed into renewables, grid modernization and innovation in clean technologies, with substantial investments flowing into renewables, grid modernization and clean tech innovation. Yet, job displacements, legacy infrastructure and regulatory uncertainty present real challenges.

In our latest HCLTech Trends and Insights discussion, Ajay Biswas, AVP at HCLTech, reflects on these challenges and opportunities: “Energy transition success will hinge not only on adopting next-generation technologies but on reimagining the very fabric of how businesses operate, what kind of Total Experience we are able to create and engage various ecosystems cohesively.”

    Ajay Biswas, AVP, HCLTech

The complex path of energy transition

The transition to renewable energy in ANZ is driven by environmental demands, policy, consumer demand/behaviour and technological advancements. The region is making tangible progress, from solar farms across the outback to wind turbines dotting coastlines and increasing rooftop solar installations.

“Yet, the real challenge lies in integration. Traditional grids were not built for decentralized energy sources. Upgrading them to handle dynamic inputs requires smart technologies, robust cybersecurity and significant investment. The utilities of today will become enablers while consumers take the PROSUMER Avtaar,” says Biswas.

Key imperatives include:

• Renewable energy deployment: Investment in large-scale solar and wind farms, battery energy storage systems (BESS) and rooftop solar installations is accelerating. ANZ is also beginning to explore the potential of offshore wind energy
• Grid modernization: Upgrading transmission and distribution infrastructure is critical for integrating intermittent renewables. Smart grid technologies, IT/OT convergence, and cybersecurity are becoming foundational. Rewiring the Nation is an Australian Government program to make clean energy more accessible and affordable for Australian consumers
• Energy efficiency: Initiatives like building retrofits, appliance standards, and public awareness campaigns aim to enhance energy performance across sectors. Linking house energy ratings to Green Mortgages is a notable innovation. The Australian Government delivers energy programs that support Australian households and businesses
• Electrification of transport: Subsidies for electric vehicles (EVs), expansion of charging infrastructure, and the electrification of public transport fleets are reshaping urban mobility. Australia exceeded 100,000 EVs (BEV + PHEV) for the first time Calendar year 2024, which shows a 10% market share of new vehicles sold. Public charging locations have effectively doubled in a year
• Green hydrogen: Research into green hydrogen for industrial use and transport is gaining traction, supported by pilot projects and public-private partnerships. The Australian Government has released its 2024 National Hydrogen Strategy. The strategy provides the framework to guide Australia’s production, use and export of hydrogen. This will position Australia to become a global hydrogen leader
• Community engagement: Empowering local communities through participatory energy models, prosumer networks, and transparent affordability frameworks ensures an inclusive transition. The Australian Energy Infrastructure Commissioner (AEIC) conducted an independent which recommended a developer rating scheme, efficient engagement, complaint handling process, information sharing and an equitable share of benefits

As organizations respond to evolving imperatives, transformation must extend beyond mere compliance, it must be strategic, forward-looking and centered around people. According to Biswas, the very fabric of the electric grid is undergoing a gradual but profound shift. This includes how the grid operates, how utilities conduct their business, changing consumer behaviors, field services, commercial operations (such as metering, billing and collections), asset management, investment strategies and tariff/rate calculations.

To support this transformation, an integrated system is essential, one that seamlessly connects IT systems (including ERPs), OT systems, IoT devices, communication networks and security frameworks. These components must be loosely coupled to ensure flexibility, yet resilient enough to avoid any single point of failure. Such a system must operate smoothly and cohesively to meet the demands of the future and give that total experience.

Business challenges and strategic responses

Transformation in the energy sector comes with complex challenges. Technological upgrades demand a complete overhaul of the network, connections, process, ways of working, IT and operational infrastructure. Legacy systems can’t support the agility and scalability modern energy operations require. Organizations need modular, future-ready platforms that evolve with market needs. HCLTech’s UVision framework helps businesses embrace emerging technologies and achieve sustainable engagement models in areas like digitization, automation and data insights-driven decision-making. Falling behind in regulatory compliance is no longer just a risk, it threatens brand trust and business continuity. Real-time monitoring and automation are becoming essential to stay ahead.

Adopting new energy technologies also means confronting legacy technical debt and reengineering outdated processes. Composable, adaptive architectures are critical. As IT and OT systems converge, and distributed energy resources (DER) expand, digitization becomes the foundation of operational transformation.

In ANZ, energy regulations are evolving fast. Companies must move beyond static compliance approaches. Automation, real-time data and predictive analytics are now vital to meet changing mandates with agility and precision. Market volatility, from price fluctuations to geopolitical shifts, demands flexible, resilient systems. Integrating SCADA, market platforms and advanced metering enables real-time visibility and faster, smarter decisions.

But technology alone isn’t enough. Change management is often the toughest hurdle. Employees face uncertainty, skill gaps and unfamiliar systems. A successful transition depends on clear communication, targeted training and a culture that champions continuous learning and adaptability.

“Customer participation and involvement in grid operations will soon become a reality, it will be a transactive grid, with self-healing, peer-to-peer trading and self-service for customers or prosumers, employees and all other stakeholders,” says Biswas.

Driving transformation with HCLTech’s Fenix and NIO frameworks

Transformation starts at the top. For leadership, it’s no longer enough to set long-term net-zero goals, what’s needed now is execution at scale. Every environmental commitment must align with measurable business outcomes, whether in operational efficiency, cost optimization or competitive advantage.

HCLTech’s Fenix 2.0 transformation framework provides a structured approach for navigating this complexity. It helps organizations realign their people, processes and platforms for a green future. Through modular architecture, integrated digital platforms and robust security protocols, Fenix enables scalable, future-ready transformation.

“In the ANZ market, we apply Fenix to deliver intelligent grid modernization, DER integration, compliance automation and digital workforce solutions. These are not off-the-shelf offerings; they’re designed for each client’s unique market dynamics, regulatory requirements and growth ambitions,” explains Biswas.

Complementing Fenix is HCLTech’s Net Zero Intelligent Operations (NIO), an award-winning solution for tracking, analyzing and managing GHG emissions. Powered by digital twins, AI and IoT, NIO provides real-time data and predictive insights to embed sustainability into business operations. It’s not just about compliance — it enables intelligent, low-carbon decision-making that drives performance.

Automation, analytics and GenAI are beginning to emerge. Although utilities and the grid have historically been late adopters, Biswas says, it is necessary to emphasize that the adoption of data-driven utilities with decision support must be implemented if we aim to achieve the target of 2°C.

The future belongs to the bold

The energy transition is as much a leadership challenge as a technological and operational one. For businesses in ANZ, this is the time not just to adapt, but to lead.

Those who act with purpose, agility and empathy will shape the region’s future. Those who delay risk being left behind. As Biswas sums up, “The future might be a little hazy, but what’s the fun without a bit of ambiguity?”

In that ambiguity lies opportunity, and the promise of a sustainable, resilient tomorrow.