The International Energy Agency (IEA) has unveiled a transformative outlook in its World Energy Outlook 2024, indicating that clean energy growth and shifts in the global economy are set to slow overall energy demand growth. This pivotal change is expected to peak fossil fuel demand by 2030, marking a significant milestone in the transition to sustainable energy.
According to the IEA, the robust expansion of renewable energy sources will fully meet the global increase in energy demand post-2030. An electrified, renewables-dominated energy system is projected to be far more efficient than traditional fossil fuel-based systems, which often result in significant energy loss as waste heat.
In 2023 alone, over 560 gigawatts of new renewable energy capacity were added worldwide, with annual investments in clean energy projects nearing $2 trillion. This investment is nearly double the amount allocated to new fossil fuel supply, underscoring the global commitment to sustainable energy.
China played a crucial role in this growth, contributing 60 percent of the new global renewable capacity in 2023. The IEA forecasts that by the early 2030s, China's solar photovoltaic power generation will surpass the current electricity demand of the entire United States, highlighting the nation's leadership in renewable energy development.
Looking ahead, the IEA expects electricity demand to continue its rapid growth, outpacing overall energy demand and further solidifying the shift toward an electrified global energy system. However, the transition does not signal the end of fossil fuels entirely. Liquefied natural gas (LNG) demand is anticipated to grow at a rate of over 2.5 percent annually through 2035, an upward revision from last year's outlook.
Moreover, the IEA forecasts an easing of oil market pressures, with spare crude production capacity set to rise to 8 million barrels per day by 2030. IEA Executive Director Fatih Birol emphasized that this potential surplus in oil and gas, influenced by geopolitical developments, could create a very different energy landscape compared to the recent global energy crisis.
This comprehensive outlook by the IEA underscores the global momentum towards a more sustainable and efficient energy future, driven by significant investments in renewable energy and technological advancements.
Reference(s):
Clean energy growth to peak fossil fuels demand by 2030: IEA
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