Across Asia Pacific, urban transformation is gathering pace. Australia and New Zealand, in particular, stand at a pivotal moment as cities grapple with rising population, denser landscapes and growing threats of climate extremes

From Australia’s devastating bushfires and floods to New Zealand’s vulnerability to earthquakes and storms – resilience is no longer optional – it is essential. At the same time, the digital economy’s rapid growth – from data centres to electrified transport – is putting unprecedented pressure on already stretched electricity grids. 

The challenge is clear: how can Australia and New Zealand meet soaring electricity demand while advancing sustainability and economic growth? 

The solution lies in what we call Electricity 4.0 – the integration of electrification and digitalization to create infrastructure that is resilient, scalable, and sustainable. 

By embedding these technologies into the fabric of urban life, cities can optimise their resources, cut emissions, and build resilience in the face of mounting pressures.

Buildings as the starting point

Buildings consume nearly 40% of global energy, making them ideal starting point for decarbonisation. Fortunately, the technologies needed to transform them already exist – from rooftop solar and battery storage to AI-enabled energy management and microgrids. 

These are not just environmentally sustainable choices, but sound financial ones, with many solutions achieving payback within three to five years. 

The collaboration between Schneider Electric and Blue Connections IT is a prime example. By deploying advanced energy management systems and analytics, they optimise energy usage and generate efficiencies across commercial and industrial facilities in real time. 

This collaboration not only reduces emissions and operating costs but also demonstrates how digital innovation can scale efficiency while maintaining reliability, supporting Australia’s broader sustainability targets.

Such projects in Australia and New Zealand echo global efforts to double down on electrification, automation and digital innovation for delivering emissions reductions and economic benefits.

Strengthening grids with flexibility
The reliability of electricity supply underpins everything. Australia’s Integrated System Plan proposes over A$100 billion in investment to modernize and expand transmission networks to support the clean energy transition. But large-scale upgrades take time and are capital-intensive. Here, microgrids and Battery Energy Storage Systems (BESS) offer immediate, localised solutions.

In remote Australian communities, solar-and-storage microgrids are already reducing diesel dependency and enhancing reliability. In New Zealand, community-scale renewable microgrids are being trialled in storm-prone and seismic regions. As BESS costs continue to fall, they are enabling greater renewable integration, lowering peak costs, and ensuring stability.

Transforming infrastructure for urban mobility
Transport is another frontier of transformation. In Australia electric vehicle (EV) adoption surged by 120 percent in 2023, with over 180,000 EVs now on the road. By mid-2025, EVs accounted for over 12 percent of all new car sales, with record monthly highs of almost 16 percent. 

Affordable Chinese-made models – BYD alone sold over 12,000 vehicles in 2023 and now ranks second only to Tesla – are driving uptake. But adoption still varies, with inner-city ownership outpacing suburban and regional areas.

The success of EV adoption hinges not only on the vehicles themselves, but also on the infrastructure that supports them. Charger availability remains one of the biggest barriers. In Australia, the network has expanded rapidly – with a 75 percent increase to 812 stations – but this growth still falls short of what is needed to keep pace with rising demand. 

Collaborations are beginning to bridge the gap. Partnerships between Uber, BYD, bp pulse, and EVSE are helping scale infrastructure and make EV adoption more accessible. Yet the scale of the challenge means that continued public and private investment will be essential to sustain momentum and accelerate the transition to cleaner mobility.

Data as new infrastructure 
Electricity 4.0 thrives on data. IoT, AI, and advanced analytics are turning invisible energy flows into actionable insights. Cities can now monitor consumption in real time, extend infrastructure lifespan through predictive maintenance, and respond to emergencies quickly and effectively. Melbourne’s pilot projects tracking emissions and Christchurch’s post-earthquake digital energy integration show what’s possible when resilience with sustainability converge.

Yet digitalisation introduces new vulnerabilities. Every connected device is a potential cyber risk. Embedding cybersecurity into energy systems from the outset is vital to protect infrastructure, safeguard trust, and ensure public safety.

Laying the foundation
Electrification and digitalisation are not just technological upgrades; they are catalysts for reimagining how cities function. But technology alone cannot deliver the resilient cities of tomorrow. Policymakers must enact enabling regulatory frameworks. Businesses must invest in future-ready infrastructure. Communities must embrace cleaner energy and smarter digital tools.

The choices made today will define Australia and New Zealand’s future prosperity. Investing in electrified, digital infrastructure is more than a sustainability strategy – it is the blueprint for urban resilience. To keep cities vibrant, liveable, and competitive, action must begin now.

Energy-saving technologies

Investments in energy efficiency technologies result in reduced operating costs, improved power supply reliability and decreased CO2 emissions.

Cogeneration, compressed air system modernization and increased electric drive efficiency often have relatively short payback periods, enabling quick realization of savings. For manufacturing companies, maximizing available resources at minimal operating costs is key. 

Technologies with Simple Payback Times (SPBTs) of between two and four years are a step toward lower energy consumption and financial stability. 

“Each of these technologies offers measurable financial and energy savings. Many can be implemented simultaneously, improving energy efficiency on multiple fronts. 

“Such investments support sustainable company development, climate goals, and a responsible business reputation, says DB Energy Chief Operating Officer Przemysław Kurylas.

“A thorough analysis of plant needs ensures optimal technology selection, delivering both short-term benefits and a long-term energy strategy. Typical payback periods range from two to five years, making these technologies profitable in both the short and long term,” he says 

The decision on the appropriate solution should follow a detailed analysis of the company’s needs, a service provided by DB Energy. 

“While the final choice depends on specific requirements and conditions, one thing is clear: investments in energy efficiency are always beneficial,” says  Kurylas

Cogeneration

Cogeneration (combined production of electricity and heat) and trigeneration (production of electricity, heat, and cooling) maximize the energy contained in fuel. In traditional electricity production, some energy is lost as waste heat. Cogeneration systems, however, utilize this heat, significantly increasing overall efficiency and enabling savings.

According to DB Energy, the payback period for cogeneration investments is typically between two and four years, making it very attractive for industrial companies requiring simultaneous heat and electricity supply. Schumacher Packaging, a company in the packaging and paper processing industry undertook a 4.5 MW cogeneration installation which pays for itself in 3 years. As of its completion in September 2024, it is the largest operating LNG-powered cogeneration unit in southern Poland.

Compressed air

Compressed air is vital to many industrial processes but often operates inefficiently, generating losses and unnecessary costs. Compressed air production management systems can yield significant savings, with a typical payback period of under two years. Projects often involve identifying and repairing leaks or improving compressor efficiency.

Sealing compressed air systems brings notable savings with minimal financial outlay. The average payback period is less than six months. 

Photovoltaic payback period

While photovoltaics may not offer as short a payback period as other energy-saving technologies, they provide long-term benefits.

According to DB Energy, photovoltaic investments typically have a five to seven year payback period. This is acceptable considering the advantages of independence from fluctuating energy prices and the ability to produce green energy.For micro-installations up to 50 kW, simplified formalities further shorten implementation time.

Heat pumps

Heat pumps are gaining traction in the industrial sector, especially for processes requiring heating. They utilize waste heat or environmental energy ( air, water or ground) to generate useful heat — reducing demand for electricity or fossil fuels. Typical payback periods range from three to five depending on investment scale and available financial support.

Lighting modernization

Lighting often remains overlooked but offers substantial savings. Upgrading outdated systems to LED lighting can reduce energy consumption by between 60 percent and 80 percent.

 Electric drives

Electric drives consume over 70 percent of industrial electricity. Enhancing their efficiency significantly impacts operating costs. Many installations lack proper control systems, resulting in inefficiency. Simple regulation methods can yield 30 percent to 60 percent savings.

At DB Energy, the average payback period for electric drive modernization is 2.5 years. For example, modernizing a 1,000 kW pump drive reduced annual energy consumption by 1,300 MWh annually with a two-year payback period.