Global energy market heading to ‘age of electricity’

Low-emission energy is forecast to exceed 50% of the world's electricity production by 2030.

From coal and oil, the world is now transitioning to the age of electricity with low-emission energy forecast to exceed 50% of the world's electricity production by 2030, according to the International Energy Council (IEA).

“We’re now moving at speed into the Age of Electricity, which will define the global energy system going forward and increasingly be based on clean sources of electricity,” said IEA Executive Director Fatih Birol.

IEA said in its latest World Energy Outlook that electricity use has grown at twice the pace of overall energy demand over the last decade. Two-thirds of this increase in demand over the last ten years came from China.

Global electricity demand is projected to increase significantly in the coming years. In a scenario reflecting current policies, annual growth could equal the entire electricity demand of Japan. This growth is expected to be even faster if countries achieve their net zero emissions targets.

Clean energy, meanwhile, is entering the energy system at an unprecedented rate, but deployment is far from uniform across technologies and markets.

To sustain clean energy growth, grid and storage investments must increase significantly. Currently, investment in these areas is insufficient when decarbonisation requires a 1:1 investment ratio. Strengthening grid resilience and cybersecurity is also crucial.