IEA Reports Clean Energy Growth Will Peak Fossil Fuel Demand by 2030
The world stands at the cusp of a major energy transition, as clean energy growth accelerates and global economic shifts promise to slow energy demand growth. According to the International Energy Agency’s (IEA) World Energy Outlook 2024, released on Wednesday, the demand for fossil fuels is set to peak by 2030—a milestone in the global effort to combat climate change.
The IEA’s report highlights that the surge in renewable energy is robust enough to meet the entire global increase in energy demand after 2030 through clean sources alone. An electrified, renewables-dominated energy system is not only cleaner but also significantly more efficient than traditional fossil fuel-based systems, where a large portion of energy is lost as waste heat.
“In 2023 alone, over 560 gigawatts of new renewable energy capacity were added worldwide,” the report notes, emphasizing a remarkable shift in the energy investment landscape. Investments in clean energy projects are approaching $2 trillion annually—nearly double the amount allocated for new fossil fuel supply.
China plays a pivotal role in this transformation. The report praises China’s substantial contribution, noting that the country accounted for 60 percent of the new global renewable capacity in 2023. By the early 2030s, China’s solar photovoltaic power generation is projected to surpass the current electricity demand of the entire United States, underscoring the nation’s leadership in renewable energy adoption.
As the global energy system becomes increasingly electrified, the IEA predicts that electricity demand will continue to grow rapidly, outpacing overall energy demand. This marks a significant shift towards a more sustainable and efficient energy landscape.
However, the transition is not without complexities. Despite the growth in renewables, the demand for liquefied natural gas (LNG) is expected to increase by over 2.5 percent annually through 2035. This is an upward revision from last year’s outlook and indicates that natural gas will continue to play a role in the energy mix for years to come.
On the oil front, the IEA forecasts an easing of market pressures, with spare crude production capacity expected to rise to 8 million barrels per day by 2030. IEA Executive Director Fatih Birol commented on this potential surplus, stating that, depending on geopolitical developments, it could lead to a vastly different energy world than the one experienced during the recent global energy crisis.
The IEA’s report underscores a transformative period in the global energy sector, driven by technological advances, policy shifts, and significant investments in clean energy. As nations worldwide embrace renewable energy, the vision of a sustainable and efficient energy future becomes increasingly attainable.
Reference(s):
Clean energy growth to peak fossil fuels demand by 2030: IEA
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