Clean Energy Demand to Surge by Decade's End, Says IEA
- Clean energy power is gaining momentum.
- Policy settings and market conditions are not enough to support net-zero goals.
A recent study by the International Energy Agency (IEA) indicates that clean energy sources like wind and solar will outpace the overall energy demand by 2030.
They are also expected to become the largest type of energy used globally by the mid-2030s.
The study notes that there will be a slump in global energy demand until 2035 (0.5% per year) due to increased electrification, improved efficiency, and a rise in renewable energy. This is relatively slower than the average growth of 1.4% from 2013 to 2023.
Fossil fuel demand is expected to peak by 2030 and drop from 80% of total energy use last year to 58% by 2050. The IEA states that the world economy can continue to grow without relying on oil, natural gas, or coal.
If countries increase their energy and climate goals, clean energy could meet 40% of global energy demand by 2035 and about 75% by 2050, or even as much as 90%.
The use of electricity will increase for heating, cooling, transportation, and powering devices.
But, the current policies being implemented and market conditions are not enough to reach net-zero emissions, warns the IEA. In 2023, energy demand saw a spike of around 2%, but fossil fuels met most of that increase, leading to record-high carbon emissions.
Europe grappled with high fossil fuel and electricity prices due to its over-dependency on fuel imports, particularly during the 2022 energy crisis.
“Geopolitical uncertainty is exposing the underlying fragilities of the global energy system,” IEA Executive Director Fatih Birol said. “Energy infrastructure is also facing increasing risks from extreme weather events that are becoming an all too common aspect of life.”
To resolve these issues, the IEA stresses the importance of increasing investment in clean energy in developing countries, which receive only 15% of total investment despite having two-thirds of the global population.
For a more detailed view of the study, click here.
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Source: WSJ
