By David Gaffen

(Reuters] Utility executives have stated that in the coming years, their industry will face higher costs to meet the two challenges of the transition from fossil fuels to renewable energy as well as protecting electricity grids against the effects of climate change.

Further electrification will be necessary to develop renewable fuels and reduce carbon emissions. Currently, more than 60% of world’s power comes from fossil fuels. It will be years before this is possible. Meanwhile, climate change has increased the risks to the sector as more extreme weather and storms are occurring around the world, CERAWeek Energy conference in Houston stated.

Pedro Pizarro (CEO of Edison International NYSE:), the parent of Southern California Edison, one the most important U.S. utilities, said that the analysis was sobering. “It’s not just increased wildfire risk, but it’s heat, floods; it’s going to require not just investment from utilities to harden our systems.”

In 2021, the International Energy Agency stated that to achieve net zero emissions by 2050, electricity’s share in final total consumption must rise from 20% to 49%. This will require further use of heat pumps and electric cars to power buildings.

Nick Akins (CEO at Attivist) stated that “pure and simple it’s supply chain.” American Electric Power Company Inc. (NASDAQ:). This further magnifies the issue when everyone is working on renewables simultaneously.

Executives in power said that more broadly they are also going to be looking at nuclear. France is second after the United States as the largest nuclear producer.

The need to have Russia’s support would be offset by increased nuclear production. Russia attacked Ukraine in the past two weeks and halted gas pipeline flow to Europe last year.

Jean-Bernard Levy is chairman and CEO at Electricite de France, a state-controlled energy company.

Germany last year closed 4 gigawatts of nuclear capacity, while France, the world’s most nuclear-intensive country, last month said it will build an additional six nuclear reactors.

EDF (PA.)’s Levy explained that new plants won’t be available for over a decade.

Additionally, utilities are required to strengthen their grids to withstand worsening climate conditions. This is as a result of the shift to renewables. AEP’s Akins also said that there are supply-chain problems as utilities attempt to store material for the upcoming Atlantic hurricane season which will run from June to November.

“We’re not able to get the inventory we usually have in place because the lead times for equipment has been increased by a factor of 10 – if it took four months, it takes 40 for transformers,” said Akins.