According to DNV GL’s Energy Transition Outlook, until 2050, energy from renewables will meet 50% of our energy needs. In addition, increased electrification of energy demand, along with the rise of wind and solar energy, will grow the world’s electricity transmission and distribution systems.
From 2030 energy demand will start to go down, despite the increase in population and greater economic output. This will be achieved through energy efficiency. Electricity will play a major role in improving energy efficiency and the fact is that it will increase, as it will double its current share.
Moreover, energy expenditure will slow down to such a degree by 2050, that the world will spend 44% less that it does today. What is more, more CAPEX will go into renewables and grids, than into fossil fuel project, starting from 2029.
What is more decarbonisation will be a key sector to focus to. With energy mix rapidly decarbonizing, coal has peaked, while oil is expected to peak in 2023. These developments will make natural gas the largest single source from 2026.
Despite this positive developments however, we are on course to fail the Paris Agreement goals, but the affordability of the energy transition is the silver lining and it gives hope that things will eventually change.
In the following infographic you can see a timeline of the expected developments up until 2050.
