A recent report released by the International Energy Agency (IEA) has sent ripples of excitement and hope throughout the global community. According to their data, renewables are set to surpass all other sources of electricity worldwide within a mere three years. This groundbreaking revelation not only showcases the remarkable progress made in renewable technologies but also highlights a significant shift towards a more sustainable and greener future.
By 2025, it is estimated that China will account for one-third of worldwide electricity needs, increasing from the 5% in 1990 to 25% in 2015. The International Energy Agency also anticipates that the region will make up more than half of the global electricity demand when combined with growth from other parts of Asia.
According to Carbon Brief’s assessment of the International Energy Agency’s Electricity Market Report 2023, renewables and nuclear power should be sufficient to meet the increased electricity demand between 2022 and 2025.
As a result of clean-energy sources supplanting fossil fuels, the amount of carbon dioxide (CO2) released in the global power sector will remain the same or go down, despite the quickly escalating demand.
By 2030, the International Energy Agency (IEA) predicts that a third of all new cars will be electric due to an ‘explosive’ increase in popularity.
Power usage has become an increasingly important factor in modern life, and the demand for electricity is growing. According to Bloomberg, the International Energy Agency has reported that the world’s GDP estimates have been decreased because of the energy shortage, with the United Kingdom suffering a major setback.
However, the report forecasts that the electricity demand globally will experience a strong surge in 2023. It further predicts that Asia will account for an increase of around 2,500 TWh in power demand in the next five years. By 2021, the global electricity system is projected to grow by 9%, rising to a total of 29,281TWh – an increase roughly the size of the entire EU’s electricity demand in just three years.
By the year 2025, the IEA predicts that China’s share of global electricity consumption will climb to a third, which is a large jump from the 5% it was in 1990 and 25% it had in 2015. Moreover, Asia as a whole will surpass the 50% mark for the first time ever due to the rapid growth in the area.
In Europe and North America, electricity consumption will rise gradually; however, their percentage of the global requirement will decrease as Asia’s portion increases.
The utilisation of renewable energy sources is increasing at a rapid rate, with a steady growth in the coming years. This expansion is seen across a variety of different industries, with the potential to reduce environmental impact and create more sustainable practices. Companies are investing in new technologies and strategies to improve their reliance on renewable energy sources and reduce their carbon footprint. As the world continues to shift its focus towards renewable energy, more and more businesses and individuals are beginning to invest in renewable sources. This trend is set to only continue in the future as the world strives for more sustainable solutions.
According to the organisation, the International Energy Association (IEA) stated that renewable energy sources and nuclear power will have “a prominent role” in the growth of energy demand.
Over the next three years, it is expected that renewables and nuclear energy will be responsible for providing more than 90 per cent of additional electricity needs globally.
Overall, the situation is even more extreme. An examination of the IEA figures by Carbon Brief reveals that worldwide electricity production is predicted to increase by 2,493TWh from 2022 to 2025.
The International Energy Agency anticipates renewable electricity generation will account for nearly all the growth in global demand, at a total of 2,450TWh – equating to 98 percent of the total.
The International Energy Agency predicts a notable increase in nuclear generation, particularly in Asia. China and India will construct new reactors, and France and Japan will reactivate old ones; the total nuclear output is projected to increase by 302TWh by 2025.
The percentage of electricity generated by renewable sources is expected to grow from 29% to 35% within a period of three years.
In 1990, renewable energy sources contributed 20 percent to the world’s electricity demand, which stayed roughly stable until 2010.
The International Energy Agency reports that coal’s portion of the worldwide electricity generation has already decreased from 40 percent in 2010 to 36 percent currently and is projected to go down to 33 percent in 2025.
In spite of this, the most polluting of fossil fuels remains one of the leading sources of electricity in the world. It is projected that in 2025, gas will account for 21% of global electricity production, while nuclear will be responsible for 10%.
In its report, the IEA states that due to the pressure on conventional energy sources for electricity production, power-sector CO2 emissions will not increase further.
The IEA reported that the emissions from the power sector in 2022 reached an all-time high. This indicates that the emissions are likely to stay at this level or only decrease slightly in the coming years instead of decreasing rapidly.
The Rocky Mountain Institute projected that the world had reached the peak of its reliance on fossil fuels for electricity generation, confirmed by the IEA’s most recent forecast. This advancement was attributed to the rising popularity of solar and wind power. The organisation even went so far as to estimate that fossil fuel electricity generation would decrease 4% each year from 2025 to 2030.
Undoubtedly, various issues and difficulties are yet to be faced and handled. Therefore, preparation and readiness for these challenges are essential to move forward in a positive direction.
The International Energy Agency has remarked that as the use of wind and solar energy grows, some difficulties must be addressed. They have highlighted the fact that the electricity supply and demand are becoming increasingly affected by the weather, citing recent heatwaves, storms and droughts as proof.
The IEA asserts that there is a requirement for augmenting demand-side flexibility from customers and storage capacity. They also assert that there needs to be enough “dispatchable” capacity that can be turned on or off as needed. The report states:
Dispatchable sources of renewables, including hydro reservoir, geothermal, and biomass plants, will be essential to support a transition to a low-carbon electricity sector in order to complement the use of variable renewables like wind and solar.
However, the report stresses that the issues surrounding integrating renewable energy sources are not currently a roadblock for their growth. It explains that:
It is possible for a substantial increase in the capacity of renewable energy sources in many parts of the world without running into significant issues with system integration.
The report also mentions how the construction of battery storage systems is on the rise. In total, approximately 17 GW (thousand megawatts) of new battery capacity was added in 2022, as demonstrated in the figure below. This is a significant increase of around 90 per cent compared to the previous year.
In terms of the global outlook, the International Energy Agency (IEA) reported that the amount of battery additions in the US had risen by an impressive 80 per cent.
The growth percentage is absolute in China, significant in the European Union, and very high in other emerging economies outside of China at around 500%.
The IEA electricity market report 2023 shows the megawatts of battery storage capacity added per year in different regions.
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Data from the International Energy Agency (IEA) indicates that renewable energy sources will become the world’s foremost electricity source within three years. For more information on the analysis of recent policies, trends and market developments, read the Electricity Market Report 2023
