Sustainable Development Goal 7 (SDG7) calls for “affordable, reliable, sustainable and modern energy for all” by 2030. While nearly 92% of the global population now has basic electricity access, over 750 million people still live without it. At the current pace, universal access by 2030 remains out of reach. Policy is a powerful lever in determining who benefits from the energy transition.

Strong, well-designed frameworks mobilise investment, enable infrastructure development, and accelerate technology deployment, making energy both accessible and affordable. Weak or fragmented policies, however, risk widening inequalities and slowing progress on global development goals. Achieving SDG7 demands coordinated action from governments, regulators, utilities, and innovators. By crafting integrated, cross-sectoral strategies that drive electrification, expand renewables, and boost efficiency, stakeholders can lower costs, close the access gap, and unlock the economic and social benefits of a truly inclusive energy future.

By 2025, over 4.4 billion people will lack access to safely managed drinking water, and 1.8 billion will face absolute water scarcity. Climate change, population growth, and mismanagement are pushing water systems beyond their limits. With agriculture consuming 70% of freshwater, pressure is mounting across domestic, industrial, and environmental sectors. Melting glaciers and shifting rainfall are disrupting vital sources, increasing the risk of droughts, floods, and ecosystem collapse. Ensuring water security requires urgent, coordinated action across governments, utilities, businesses, and communities. Strengthening infrastructure, enhancing cross-border cooperation, and investing in nature-based and data-driven solutions are key to building resilient systems that protect water for all.

According to the IEA, global energy investment is expected to reach USD 3.3 trillion in 2025— a 2% increase from 2024—with around USD 2.2 trillion allocated to clean energy, double the USD 1.1 trillion for fossil fuels. Solar alone is set to attract USD 450 billion, the largest share of any energy source. This surge is driven by the rise of the “Age of Electricity,” as demand grows rapidly across sectors like industry, electric mobility, AI, data centers, and increasingly, water treatment infrastructure. Yet despite rising demand, grid investment is lagging, threatening energy security and undermining efforts to decarbonise. Similarly, water networks are under strain, requiring significant upgrades to boost resilience, efficiency, and climate adaptation. Many utilities - especially in emerging markets - lack the financial capacity to scale investments in aging grid and water infrastructure. 

A World Bank study revealed that 60% of utilities in EMDEs don’t generate enough revenue to cover basic operating costs. To bridge these gaps, utilities are turning to alternative financing models ranging from full public financing to merchant transmission lines, minority private equity participation, and integrated energy-water public-private partnerships (PPPs). Without urgent action, utilities and communities risk falling short on the capital needed for vital infrastructure upgrades at a time when power and water systems are more critical - and vulnerable - than ever.

According to the World Economic Forum and McKinsey, a key global priority is building long-term capacity to anticipate, withstand, and recover from disruptions in water systems, with projected investment needs exceeding USD 13 trillion over the next decade.

In the GCC, the momentum is already building: the Gulf Cooperation Council Secretariat reported a record USD 58 billion in environmental investment, with 38% directed toward regional or cross-border projects -emphasising the scale of ambition and collaboration now required globally.

As utilities worldwide face surging demand and an accelerated shift to cleaner energy, resilience has become a core imperative. In the Middle East, where power and energy demand are among the fastest growing globally, building resilient energy systems is urgent. An integrated approach - combining energy efficiency, flexibility solutions, demand-side management, transmission and distribution modernisation, and “prosumer” participation - can strengthen the backbone of future utilities. Efficiency and DSM initiatives help curb peak loads and reduce pressure on the grid, while advanced T&D upgrades and flexibility solutions ensure reliable power delivery even with a high share of renewables.

Empowered customers, supported by smart metering and proactive digital services, become active partners in balancing supply and demand, enhancing overall system stability and efficiency. Viewed through the lens of resilience, this theme offers policymakers, regulators, and industry leaders a blueprint for future-proofing energy infrastructure and delivering a more reliable, flexible, and sustainable power system.

The transition to renewable-based power and water systems depends on harnessing the full spectrum of technological innovation, with digital transformation playing a central role. In the power sector, it enhances grid reliability, enables greater integration of renewables, and supports smarter demand-side management. In the water sector, it facilitates intelligent distribution, energy-efficient treatment, and leak reduction. Beyond digitalisation, achieving resilience also requires advances in hard technologies.

In addition to widespread solar and wind generation, rapidly developing solutions such as Battery Energy Storage Systems (BESS), Long Duration Energy Storage (LDES), Small Modular Reactors (SMRs), RO-based desalination, and next-generation geothermal are becoming essential components of the future-ready utility toolbox. Powered by sensors, AI, and advanced analytics, these innovations are already transforming how energy and water are produced, managed, and consumed.

Unlocking the full potential of digitally enabled “new infrastructure” across both sectors requires coordinated action across the value chain, supported by strategic investment, clear policy direction, and strong cross-sector collaboration.

Compute power is fast becoming one of the most critical resources of the decade, driven by the explosive growth of artificial intelligence. McKinsey estimates that data centres will require nearly $7 trillion in investment by 2030 - $5.2 trillion for AI-focused facilities and $1.5 trillion for traditional IT workloads. As a result, data centres, including hyperscale facilities, are projected to see their share of global electricity consumption rise from around 1% today to over 3% by 2030, putting unprecedented pressure on power infrastructure and resource-intensive sectors such as water. Meeting this demand requires coordinated action across the compute power value chain including real estate developers, utilities, semiconductor manufacturers, and cloud providers all navigating uncertainty around the pace and scale of AI adoption. Utilities, in particular, face the dual challenge of upgrading grid infrastructure and managing rising processor heat densities, while investing over $1 trillion in both conventional and emerging power generation technologies. Renewables alone are expected to make up nearly half the global energy mix by 2030, reinforcing the urgency of large-scale clean energy deployment.

At the same time, AI is part of the solution. It is already helping reduce energy intensity, enabling companies to cut consumption by up to 60% through smarter energy storage, battery optimisation, and grid management. Yet the challenge extends beyond electricity. The water footprint of data centres is growing rapidly, with significant volumes required to cool processors for high-density AI workloads. In water-scarce regions, this rising demand could place additional strain on national water reserves and critical infrastructure. Ensuring AI’s growth remains scalable and sustainable will require action in four key areas: policy and regulation, financial incentives, technological innovation, and market development.

The global race to decarbonise is accelerating, but without a deliberate focus on workforce development, the transition risks leaving many behind. As the move to cleaner energy reshapes industry demands, advanced digital, technical, and cross-disciplinary skills are becoming critical across both the energy and water sectors. Yet deep skill gaps persist - particularly in ICT access and digital literacy across the Global South. Recruiting, retaining, and motivating a talented and diverse workforce is one of the most pressing challenges facing today’s water and wastewater utilities. The water sector, much like energy, suffers from significant disparities - especially in engineering and operations - where women and underrepresented groups continue to face systemic barriers. Women make up 39% of the global workforce (ILO data), but only 20% of the energy sector and even less in leadership and technical roles, stifling the sector’s full innovation potential. The critically important role of academic institutions as partners in building a “pipeline” of people eager to join the energy and water workforce must be recognised, particularly in efforts to create the workforce of the future.

Bridging the talent gap will require targeted reskilling programmes, inclusive hiring strategies, and strong mentorship and education pipelines. The role of youth in promoting climate resilience is increasingly overdue and vital. Engaging them in a just transition can accelerate the implementation of Nationally Determined Contributions and the Sustainable Development Goals. Global initiatives like those led by IRENA and UNEZA are showing results, with vocational training programmes boosting female participation in energy trades by 10% since 2023. A diverse, future-ready workforce is not just equitable - it is essential to accelerating innovation, tripling renewable capacity by 2030, and securing a resilient, people-powered future.

The energy transition is as much about governance as it is about technology. In 2025, over 60 nations have embraced integrated energy policies that pair clean energy incentives with stronger regulatory oversight balancing economic growth with climate commitments. Water security and sustainable resource management are increasingly part of these frameworks, given the sector’s deep link to energy systems. Governance reforms are increasingly anchored in transparency, accountability, and inclusive decision-making, echoing the UN’s just transition framework. Across the globe, regulations are evolving from emissions standards and digital infrastructure mandates to progressive market reforms.

Encouragingly, gender inclusion and workforce diversity are becoming regulatory cornerstones. Policy is also shifting toward cross-sector alignment, integrating water, energy, and climate resilience efforts. While some regions temporarily ease fossil fuel policies for energy security, the long-term imperative is clear: inclusive governance and equitable policy frameworks are key to reaching net-zero goals, unlocking sustainable development, and empowering societies for a cleaner, fairer energy future.