How utility companies can benefit from Net Zero targets

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July 2, 2025
The European Climate Law has set the intermediate target of reducing greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. By 2050, the goal is full carbon neutrality.

The push towards Net Zero is accelerating investment in digital infrastructure, clean energy, and electrification. According to the International Energy Agency (IEA), total energy investment exceeded $3 trillion in 2024. Of that, $2 trillion was invested in clean energy technologies and infrastructure - surpassing spending on oil, gas, and coal combined.

Net Zero is also changing how utilities interact with their customers, from pricing and incentives to entirely new service models.  

At triPica, we believe that when these changes are supported by the right digital architecture, they can become the foundation for long-term commercial advantage.

From regulation to restructuring

Europe’s climate goals are among the most ambitious in the world. While the European Climate Law makes the 2050 Net Zero target legally binding, its Fit for 55 package provides the framework for reducing emissions.  

In the UK, similar commitments are rooted in legislation, backed by interim targets and carbon budgets that guide investment decisions across the energy sector.  

These policies form part of a wider economic restructuring agenda. By putting a price on carbon, setting emissions caps, and introducing performance-linked incentives, regulators are creating a market that favours clean technologies, electrification, and smarter grid management.

For utility companies, these policies present challenges and opportunities beyond adjusting internal systems or navigating compliance checklists. They are already influencing how capital is allocated, how services are designed, and how utility companies position themselves in a competitive, customer-centric market.  

In other words, Net Zero is impacting the way energy is produced, traded, and used, forcing utilities to rethink how their systems and services are designed.

How Net Zero is redefining the market

The pressure to decarbonise is the primary driver behind the transformation of Europe’s energy market. One of the most visible changes is the electrification of transport.  

National policies and local incentives are fuelling a rapid increase in electric vehicles, with grid operators now required to manage new peaks in demand, and support the rollout of smart charging infrastructure.  

For example, the Alternative Fuels Infrastructure Regulation (AFIR), which came into full effect in early 2024, mandates that all newly installed, or renovated public EV charging stations, must be digitally connected and capable of smart charging.  

As a result, a 2025 report published by Eurelectric (the federation of the European electricity industry) revealed that by late 2024, Europe had reached a total of 821,773 public EV charging points - marking a 30% increase from the previous year. Of these charging points, more than 15% are classified as fast chargers, delivering over 22 kW of power.

At the same time, the continued rise of distributed renewable generation is changing the traditional flow of energy, pushing providers to manage two-way grids and integrate decentralised assets at scale.

As carbon pricing mechanisms tighten and renewable capacity expands, the commercial viability of conventional energy models is diminishing. Customers are increasingly expecting green alternatives, and regulators are backing those expectations with binding targets.

In addition to these structural shifts, the investment landscape is changing. Subsidies, grants, and low-carbon incentives are being aligned with digitalisation, flexibility, and efficiency outcomes.  

A 2025 report published by financial services company Allianz found that investing approximately €90 billion annually in EU power grids could lower electricity prices by 11% by 2035, and by 30% by 2040.

As such, carbon pricing (which was once a marginal cost factor), is now a key consideration in energy procurement and strategy decisions, demonstrating that Net Zero is impacting how energy is produced, and how value is created for consumers.

The commercial logic of Net Zero

As the energy sector adapts to these changes, one thing is becoming clear - compliance alone won’t secure long-term competitiveness. The utility companies that succeed moving forward, will be those that use climate policy as a stepping stone for commercial innovation.

Net Zero targets are often seen as a series of operational burdens that need to be managed. But when they’re linked with the right digital capabilities, these same obligations can lead to new forms of revenue.  

As well as meeting environmental targets, utilities now have the opportunity to turn regulatory compliance into customer value. Services like personalised tariffs, flexible demand-side programs, and low-carbon loyalty schemes can help companies stand out in a competitive market while supporting more efficient grid use, and improving customer engagement.

Essentially, the question is how quickly utility companies can build the capabilities to offer these services.

Monetising the energy transition

At triPica, we’ve started noticing more utility companies developing commercial models around climate outcomes. Their offerings go beyond selling kilowatt-hours, to combining data, flexibility, and customer incentives to add value in line with Net Zero goals.

Here are some of the ways we’re seeing utilities monetise the energy transition:

- Time-of-use tariffs and flexibility rewards

Some utility companies are using smart pricing to encourage consumption when renewable supply is high. For example, Octopus Energy’s Agile tariff offers half-hourly prices tied to wholesale market conditions. This gives customers lower rates when demand is low, or when wind and solar generation is abundant. In parallel, the company’s flexibility schemes reward households for shifting usage away from peak times, helping to stabilise the grid and reduce carbon intensity.

- Green energy subscriptions and smart charging bundles

Swedish energy supplier, Tibber has introduced smart charging subscriptions that optimise electric vehicle (EV) charging based on grid conditions and renewable availability. These services turn everyday energy use into a programmable experience, where customers can automate savings and reduce emissions without effort.

- Carbon-linked loyalty programs

Utilities are also experimenting with reward systems that offer points or discounts based on low-carbon behaviours like reducing consumption during peak hours, or installing solar panels. These initiatives combine behaviour change with measurable outcomes, which builds customer engagement while supporting national emissions targets.

A good example of this in action is the Quartierstrom prosumer energy village in Switzerland. Between 2019 and 2020, a pilot initiative used blockchain-enabled smart meters and a community portal to enable households to trade solar power directly. The project has since set the stage for new models of local balancing, grid efficiency, and low-carbon rewards.  

- Performance-based optimisation contracts

With the rise of smart heat pumps and battery storage, utilities can now offer contracts that guarantee efficiency, emissions savings, or grid support. For example, EDF’s trials in the UK demonstrate how heat pump usage can be optimised in line with real-time carbon intensity, offering a cleaner and cheaper way to heat homes.

What connects all these business models is the need for intelligent organisation. Utility companies need systems that can process live data, personalise offers, adjust billing at the right time. Platforms like triPica can help by enabling utilities to deploy and manage Net Zero-aligned services without large-scale infrastructure changes.

The role of digital platforms

To leverage Net Zero targets, energy companies need digital infrastructure that can respond to real-time signals, enable pricing agility, and support personalised engagement at scale.  

However, for many utility companies, legacy IT systems are hindering progress. A recent report published by Enlit reveals that 47% of energy professionals believe that 2030 targets will be missed by 5 years or more. The root-causes are directly linked to incomplete digitalisation programmes and a lack of digital transformation.

Indeed, traditional billing and CRM stacks were not built for dynamic pricing models, carbon-linked incentives, or customer-led flexibility programs. Even small changes to tariff structures or reward mechanisms can take months to implement. As a result, utility companies risk missing market windows, or falling short of regulatory expectations.

Modern, cloud-native platforms provide a way forward by allowing energy companies to experiment with new product formats, deploying updates quickly, and bringing services to market that adhere to climate policies.

For example, in 2023, Swiss energy retailer Primeo Energie used triPica’s modular SaaS platform to launch a new B2C business in France in record time. Without large-scale IT investment, Primeo was able to roll out loyalty-based tariffs and tailored offers that responded to rising energy prices and customer demand for low-carbon options. As Primeo’s Retail Market Director noted, the platform adapted to their requirements, not the other way around.

Turning climate goals into commercial capability

The path to Net Zero is clearly defined. What remains uncertain is how energy companies will turn that path into a practical advantage. The move towards cleaner, smarter systems is already underway, but the ability to deliver value from those changes will depend on how effectively companies can adapt, monetise, and scale their offerings.

From dynamic pricing to personalised incentives, the building blocks of a more agile commercial model are already in place. What matters now is execution. Utility companies that modernise their digital infrastructure can act faster, configure services more flexibly, and bring Net Zero products to market with greater precision.  

By enabling real-time engagement, intelligent billing, and policy-aligned innovation, these platforms can turn compliance into capability, and turn capability into a competitive advantage.

triPica’s AI-ready SaaS platform is already helping energy providers do exactly that. If your company is ready to turn Net Zero targets into tangible, customer-facing outcomes, we’d be happy to explore what’s possible.

Get in touch with us today to learn more.

FAQ:

How Utility Companies Can Turn Net Zero Targets Into Business Advantage

1. What are Net Zero targets and how do they affect utility companies?

Net Zero targets are legally binding climate goals that aim to eliminate net greenhouse gas emissions by 2050. For utilities, these targets affect everything from infrastructure planning to service design—requiring smarter grids, clean energy integration, and digital engagement with customers.

2. How can utility companies monetise the energy transition driven by Net Zero?

Utilities can unlock new revenue through time-of-use tariffs, flexibility programs, carbon-linked loyalty schemes, and smart EV charging bundles. These services align customer behavior with climate goals while creating commercial value beyond selling kilowatt-hours.

3. What digital infrastructure is needed to support Net Zero-aligned services?

To deliver agile, policy-compliant offerings, utilities need cloud-native platforms that combine CRM, real-time billing, and AI-driven insights. triPica’s modular SaaS platform enables utilities to launch smart products like carbon-based incentives, dynamic pricing, and loyalty programs—without overhauling legacy systems.

4. What examples show how Net Zero targets are reshaping the utility business?

Companies like Octopus Energy, Tibber, and EDF are using Net Zero policies to roll out smart tariffs, optimise EV charging, and link pricing to carbon intensity. In Switzerland, community energy pilots like Quartierstrom show how local trading and reward systems can support low-carbon engagement.

5. How are regulations and carbon pricing influencing energy strategy?

European policies like Fit for 55, AFIR, and national carbon budgets are shifting capital toward clean tech and electrification. Carbon pricing is no longer a marginal cost—it's becoming central to procurement, pricing, and investment strategy across the utility sector.

6. Why are traditional billing and CRM systems holding utilities back?

Legacy systems weren’t built for the dynamic pricing, real-time data, and customer-facing innovation required by Net Zero. They slow down updates and limit agility. Platforms like triPica's allow energy companies to respond faster to policy changes and market demands—turning compliance into a competitive edge.