The energy transition is gaining momentum, and the industry is accelerating toward a widespread, fundamental global evolution, according to Rystad Energy in its flagship annual report – Global Energy Scenarios 2024. The report concludes that the goal of limiting global warming to 1.6 degrees Celsius above pre-industrial levels is a monumental task, but still achievable.
The global energy system is set for transformational change in the coming decades. Solar, wind and battery costs are continuing to drop at unprecedented speed, and capacity is coming online at record pace, with solar installations surging 60% to 360 gigawatt-hours alternating current (GWac) in 2023. Electric vehicles (EVs) are expected to reach 23% of new passenger car sales this year, compared with 3% only four years ago, while annual investments in new renewable energy infrastructure exceeded oil and gas spending for the first time in 2023.
The unprecedented transformation of the global energy landscape requires three clear steps:
- Clean up and grow the power sector, mainly by rapidly expanding solar, wind and battery storage capacity
- Electrify almost everything that can be electrified
- Tackle residual emissions from hard-to-abate sectors like heavy industry, aviation, steel and cement
“The global energy transition is no longer a distant goal – it has been ongoing for years, and we are now in the acceleration phase. As solar, batteries and EVs continue to surge past key tipping points, the global energy system’s transition will eventually reach a sustainable cruising speed. Then, the industry’s focus will shift to maintaining pace toward a cleaner, more resilient energy future,” states Jarand Rystad, CEO and Founder, Rystad Energy.
Visit Rystad Energy for the full release and graphic breakdowns.