From Silicon Valley to Turin: Steve Westly discusses the challenges of Cleantech 2.0

The recent launch of the Terna Innovation Zone in Turin, the fourth innovation hub from the company that manages the Italian electricity transmission grid, offered the opportunity for an international exchange of ideas focused entirely on clean technology.

During the Terna Innovation Zone Forum, an event set up to promote innovation in the energy sector, the guest of honour was Steve Westly, Managing Partner of The Westly Group, a Silicon Valley venture capital fund active in Cleantech. After the meeting, Steve Westly shared some exclusive insights on key topics in the energy sector with Lightbox, focusing on the European and U.S. systems and analysing the increasingly widespread use of renewable energy sources.

A study on “Cleantech for the grid: mapping innovation, challenges and opportunities” conducted by Mind The Bridge was also presented at the Terna Innovation Zone Forum, providing a detailed overview of the emerging trends and investment levels shaping the future of electricity grids from the perspective of sustainability.

AI, electrification, and the need for collaboration between TSOs. Steve Westly’s part in the Terna Innovation Zone Forum inspired much reflection and debate among the numerous stakeholders of the Italian and international ecosystem. Regarding the Open Innovation model, of which the Terna Innovation Zones are an example, Westly emphasised that he considers it not only useful but essential in this new energy scenario.

With regard to the historic fragmentation of the European continent, Westly believes that the new collaboration among the TSOs of individual countries across the continent is the most appropriate and effective response to the rapid developments demanded by the global energy context. «The whole world», explains Steve Westly, «is moving faster than ever. Your great strength is the European Union’s single market, but you need to learn to collaborate. Europe sets the global standard for collaboration between nations, and what excites me here is seeing the transmission system operators from Portugal, Spain, Italy, Germany, Switzerland, and the Netherlands all coming together as a single group, a sign that you are working well». This is a reference to the TSO Innovation Alliance, launched in mid-2025: a new platform for collaboration between eight of the largest European electricity grid operators — including Terna — aimed at accelerating innovation for the energy transition. Indeed, the inauguration of the Terna Innovation Zone in Turin also marked the first meeting at which the TSO Innovation Alliance launched its innovation programme. «We are in the midst of a revolution in artificial intelligence and data centres, while at the same time, global transportation is rapidly electrifying. This fast-paced change triggers a greater and greater demand for electricity, a need which somebody will have to satisfy. It is a crucial moment for Terna and other TSOs to unite in a coordinated, Europe-wide entity. I believe it will be an exciting and inspiring collaboration», he added.

The triumph of Cleantech: beyond the rhetoric. Addressing the topic of changes in the policies and climate of the United States, Steve Westly expressed a point of view that stands in contrast with the rhetoric from Washington and the Trump administration’s cuts in terms of green sources. According to the Managing Partner of The Westly Group, data clearly show that renewable energy is more cost-effective and more abundant than any other alternative. Analysing the reaction of the public in his home country, Westly explained: «Looking at the United States, people are often surprised to learn that over 90% of all new energy added in 2025 comes from renewable sources. So the underlying policy remains the same, but we are accelerating the transition to a world based on solar, wind, and most of all batteries».

For Westly, speed is the crucial element of this change: «Given that the energy demand is increasing, and that the many interesting alternatives which exist — like nuclear — require at least 5 to 10 years, renewables are the most cost-effective, reliable, and environmentally friendly options. For this reason, they are the fastest-growing alternative in the United States today».

The rapid decline in the cost of batteries is driving the entire global automotive industry to switch to electric. «There is one aspect it is crucial to understand», Westly specified: «as the cost of wind and solar power falls, these energy sources are used more and more. What’s more, plummeting battery prices are leading the entire global automotive industry toward a 100% electric transition. This is not just because electric vehicles are “green” or “cool”, but because electric vehicles are now more cost-effective than any other alternative. This is why BYD has surpassed Tesla to become the world’s largest supplier of electric vehicles. Traditional Western car manufacturers still haven’t come up with a response to an affordable, $20,000 electric vehicle. For this reason, the world is shifting toward electric vehicles, and renewables are spreading».

The West now faces its real challenge: to innovate and invest in allowing this evolution to take place competitively, sustainably, and quickly.