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Renewable Energy Set To Exceed Global Electricity Demand Growth By 2030
The International Energy Agency’s (IEA) 2024 World Energy Outlook report has stated that renewable energy will exceed global electricity demand growth by 2030. Furthermore, it will exceed the growth by a considerable margin of 20%. Solar power will provide most of this growth, followed by wind power and hydropower.
Global electricity demand grew by 2.5% in 2023 and this is expected to increase further over the next few years, as countries move to electrify as many sectors as possible. Therefore it is positive news that renewable energy capacity is predicted to keep up with and exceed this. The IEA attribute this to greater investment in renewable energy; they expect that annual global investment in renewables will rise from $680 billion in 2023 to $850 billion by 2030. In turn, this increased investment leads to greater capacity, with 2030 levels of clean energy projected to be 2.3 times higher than those of 2023. However, the World Energy Outlook also highlights inequalities in the Global Energy Transition; developed economies will see a much greater and faster growth in renewable energy capacity. Developing economies are still expected to see a significant increase but not at the same rate.
Alongside the growth in clean energy capacity, the report also predicts that fossil fuel demand will decrease heavily, from 80% currently, to 58% by 2050. However, this is potentially not a big enough decrease to prevent further global warming. The Net Zero Emissions Scenario, which aligns with the 1.5 degree target set out in the Paris Agreement, requires a reduction to 30% by 2050.
The political landscape of 2024, characterised by major elections in more than 80 countries over the course of the year, could have a huge impact on energy markets and capacity going forward. COP29 in November, where countries are expected to discuss new and ambitious Nationally Determined Contributions (NDCs), could be a turning point for the fight against climate change.
Join our upcoming webinar on Monday 25th November to learn more about the outcomes of COP29 and their impact on the renewable energy sector with our panel of industry experts. Register your free place here.
Sources:
https://www.iea.org/reports/world-energy-outlook-2024
https://www.mercomindia.com/clean-power-outpace-global-electricity-iea