The behavioural and economic ramifications of COVID19 will permanently reduce global energy demand, according to DNV GL’s newly published Energy Transition Outlook. Among others, the report talks about clean energy technologies, the role of financial institutions in financing the green transition and the long-term impact of COVID-19.
”At a time when we are trying to recover from the ongoing pandemic as individuals and as communities, we cannot afford to make costly mistakes. That is why I believe that the 2020 edition of our Outlook is needed now more than ever: to shine a light on a transition that represents the greatest source of risk, and opportunity, in our business environment.” states Remi Eriksen, Group President and CEO, DNVGL
While the COVID-19 pandemic continues to impact global trade, a significant impact on global energy use is expected as well in the near term. Also, the report notes that we are witnessing a massive, ongoing electrification of the global energy system; where electricity is less than 20% of the energy mix today, it will more than double its share by 2050. During that period, solar PV will grow 25-fold and wind 10-fold, and in roughly equal shares will together be responsible for over 60% of the electricity generated by 2050. The plunging costs and technological advances in renewables are remarkable, and nowhere more so than in fixed and floating offshore wind.
Electricity powered by renewables is the main driver of accelerating efficiency gains in our global energy system that will outpace both population and GDP growth, such that the world will reach peak primary energy supply in just over a decade from now.
Report Highlights in the SHORT TERM
#1 COVID-19 will reduce global energy demand by 8% this year
#2 Energy-related CO2 emissions have peaked, brought forward five years by the pandemic
#3 Technology can deliver a Paris-compliant future, if scaled properly
#4 Market forces alone will not fix hard to abate sectors; stronger policies and regulations are needed
Report Highlights in the LONG TERM
#1 Rapid electrification will transform the energy mix by 2050
#2 Solar PV and wind – in equal shares – will dominate power generation
#3 Natural gas will take over as the largest energy source this decade, and remain so until 2050
#4 Despite flat energy demand and a growing renewable share, the energy transition is nowhere near fast enough to deliver on the Paris Agreement
You may read the Energy Transition Outlook 2020 report by clicking at DNVGL website