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What is Electrification — and Why Does It Matter?

Jun 2025
Top view Solar Panels on Warehouse Factory. Solar photo voltaic panels system power or Solar Cell on industrial building roof for producing green ecological electricity. Production of renewable energy

Electrification is the process of replacing technologies that run on fossil fuels — like gasoline, diesel, natural gas, or coal — with ones powered by electricity. Electrification works by switching direct fossil fuel combustion with electricity to perform the same tasks — whether it’s heating a building, powering a vehicle, or running industrial equipment. For example, instead of a natural gas furnace heating a home, a heat pump does the job by using electricity.  

But the real power of electrification lies in what electricity enables. Unlike fossil fuels, electricity can be generated from low- or zero-carbon sources like wind, solar, hydropower, and nuclear. New electricity demand from electrified systems can be met sustainably by expanding renewable energy. Together, they are key components of decarbonizing the planet and combating climate change.

To achieve the objective of decarbonizing the grid, the world’s power sector must slash its emissions nearly 90 percent by 2050, to just 3 gigatons1, and systemic electrification combined with renewables has the potential to deliver as much as 80% of the required decarbonization journey.

The business benefits of electrification

Electrification isn’t just good for the planet, it's good for the bottom line, too. By embracing electrification, businesses can reduce operating costs and gain control over fluctuating expenses. And once a system is electrified, it can be optimized using digital controls, sensors, and software — making energy use smarter and more efficient. Businesses can generate, store, and manage their own electricity — whether through rooftop solar, battery storage, or smart energy systems. Through electrification, businesses can serve smart grids and smart buildings, cost-effectively scale data center capacity, and modernize transportation fleets.

Electrification is also an ultra-effective strategy for reducing energy expenses and realizing sustainability ambitions in one investment. As a result, companies across sectors — from tech giants to real estate developers — are electrifying operations to reduce costs and meet sustainability goals.

Put the power of electrification to work for your business

With the capability to make the air cleaner, people healthier, and buildings more comfortable, electrification is fast becoming a global movement. And with massive investment from public and private sectors, electrification is ushering in a new landscape ripe for the rapid innovation of products designed with low-carbon power in mind.

But many leaders aren’t familiar with electrification’s superpowers, or don’t know what to electrify first — or next. Wherever your business is on the electrification journey, Panduit can help you go further, faster with proven physical and network infrastructure solutions that are purpose-built for performance and reliability.  

We’ve been providing electrical infrastructure solutions for 70 years. Working closely with visionary partners and organizations such as UL to develop and certify new electrification technologies, Panduit has earned a reputation for quality and innovation, along with an unwavering commitment to safety.  

To learn more about how electrification works, and how it creates value for businesses, read the ebook - Electrification: Smarter Energy for a Stronger Business. To download the eBook click here. 

Sources:

1.               Speed&Scale

2.               Accelerating the electrification of everything, Siemens

Learn more at Panduit.com/electrification

Author:

Brandon Newberry

Brandon Newberry is the Content Marketing Manager for the Electrical Infrastructure Business at Panduit. He is responsible for the development and execution of strategic marketing initiatives for areas within Electrical Infrastructure including Electrification, Safety, Identification, and more. Brandon has a bachelor’s degree in marketing and communications from the University of St. Francis.