World Energy Outlook 2024: towards a future of sustainable electricity
The World Energy Outlook 2024 (or WEO 2024), is a report by the International Energy Agency (IEA), which provides an accurate and detailed overview of the challenges and opportunities faced by the global energy sector.
In a scenario characterised by numerous geopolitical tensions and intense climate change, the only way to achieve clean, safe energy for the future, according to the report, is to focus on strategic investment and ambitious energy policies.
According to the results of the project, today’s challenging situation only highlights the inherent vulnerabilities of the world energy system, which need to be tackled through interventions aimed at accelerating the transition towards the use of clean energy technologies and the reduction of greenhouse gas emissions.
The widespread use of electricity and the clean energy era
The report emphasises that the world is officially entering a new phase in energy use featuring an unprecedented increase in demand for electricity. This change is a result of the transition towards a system which is increasingly reliant on electricity and powered by renewable energy sources.
In the coming years, these low emission sources will generate over half the world’s electricity, while global demand will continue its rapid increase. In less than ten years from now, China’s solar energy production could even surpass the entire electricity consumption of the United States.
The World Energy Outlook 2024 also explains how the transition towards clean energy is not uniform across different markets, with some countries leading the change and others lagging behind. China for example, is playing a key role in the growth of the renewable energy sector, thanks to its huge investment in solar power and electric vehicles.
Challenges and decarbonisation opportunities
As mentioned above, in order to reach net zero emission targets, the IEA’s report focuses on the need to significantly increase investment in energy systems. Although for every dollar spent on renewable energy, 60 cents are invested in electricity networks and storage facilities, this proportion needs to be recalibrated in order to guarantee that the infrastructure can keep up with the pace of clean energy generation. The resilience of electricity networks is crucial, as energy systems must be able to cope with extreme weather events such as increasingly frequent storms and heatwaves.
The WEO-24 also predicts that demand for coal, oil and gas will peak by the end of the current decade, marking a significant change of direction from the past, when fossil fuels dominated the global energy market. Nevertheless, the lack of a rapid, consistent fall in emissions will add to the risk of global temperatures rising by up to 2.4°C by the end of the century and the consequent failure to meet the Paris Agreement target of limiting global warming to 1.5°C. This scenario highlights the urgent need to introduce more drastic measures to reduce emissions and mitigate the effects of climate change.
The impact of geopolitical trends on the World Energy Outlook 2024
International tensions directly influence energy security, impacting on the ability of countries to implement sustainable solutions. The World Energy Outlook 2024 illustrates how global dynamics, such as energy policies and conflicts, can influence the growth of renewable energy and the increase in demand for LNG. Energy resilience is therefore a crucial factor in ensuring a safe, sustainable transition.
The report also emphasises the need to build an energy system which is inclusive and able to distribute the benefits of the transition more equitably. In developing economies, where the financial risks of the project are high, the wider introduction of clean energy technologies must be supported by efforts to promote sustainable development and reduce energy disparity.
Translated by Joanne Beckwith