According to a recent report by Ember, a prominent energy think tank based in London, renewable energy is set to diminish fossil fuels‘ stronghold on the global electricity market for the first time this year. The report, titled the Global Electricity Review, analyzed data from 215 countries, highlighting a significant shift in the energy landscape.
Renewables, driven by rapid growth in solar and wind capacity, have been responsible for nearly all the growth in electricity demand over the past five years, while fossil fuels have remained stagnant. However, Ember’s analysis indicates that renewables will not only continue to outpace fossil fuels in growth but also reduce their market share by 2 percent this year.
Over the past decade, renewables have expanded at an average annual rate of 3.5 percent, compared to 1.5 percent in the previous decade. This growth has been fueled by declining costs of photovoltaic panels and wind turbines, coupled with increased productivity.
Last year, carbon-free sources accounted for a record 30 percent of global electricity production. However, challenges such as light winds and droughts have hindered hydroelectricity production, impacting installed capacity. Despite these setbacks, Ember anticipates a significant increase in renewable generation this year, with an estimated addition of 1,221 terawatt-hours of electricity supply, compared to 513 TWh added last year.
This surge in renewable energy poses challenges for traditional fossil fuel sources, particularly coal-fired power stations. Additionally, natural gas may also face difficulties as renewables increasingly replace coal and gas in electricity production.
Ember’s prediction hinges on factors such as hydroelectric power recovery from droughts and nuclear power maintaining its share of the global energy mix. While Europe leads the world in clean energy production, the report acknowledges the significant role of China in driving the global energy transition.
China, despite being the world’s largest emitter of greenhouse gases, has emerged as a leader in renewable energy deployment. The country installed half of the world’s solar panels and 60 percent of its wind turbines last year, signaling a shift towards green energy. However, concerns have been raised about China’s state-led approach to renewables development, with critics highlighting the potential for monopolistic control and market distortions.
Despite these challenges, the transition to renewable energy is viewed as inevitable and necessary to combat climate change. Governments around the world, including the European Union and the United States, are investing heavily in renewable energy and climate mitigation measures to accelerate the transition.
As the world embraces renewables, the focus now shifts to integrating clean electricity into existing grids and managing the transition effectively. While challenges remain, the momentum towards renewable energy signifies a fundamental shift in the global energy landscape.