World Energy Outlook 2016: Wind and solar will be the clear winners

“The next frontier for the renewable story is to expand their use in the industrial, building and transportation sectors where enormous potential for growth exists,” says Dr. Fatih Birol, the IEA's executive director
“The next frontier for the renewable story is to expand their use in the industrial, building and transportation sectors where enormous potential for growth exists,” says Dr. Fatih Birol, the IEA's executive director

As a result of major transformations in the global energy system that take place over the next decades, renewables and natural gas are the big winners in the race to meet energy demand growth until 2040, according to the latest edition of the World Energy Outlook, the International Energy Agency's (Paris) flagship publication.

“We see clear winners for the next 25 years – natural gas but especially wind and solar – replacing the champion of the previous 25 years, coal,” said Dr. Fatih Birol, the IEA's executive director.

“But there is no single story about the future of global energy: in practice, government policies will determine where we go from here.”

 

WEO-2016 sees broad transformations in the global energy landscape

A detailed analysis of the pledges made for the Paris Agreement on climate change finds that the era of fossil fuels appears far from over and underscores the challenge of reaching more ambitious climate goals, IEA finds.

Still, government policies, as well as cost reductions across the energy sector, enable a doubling of both renewables – subject of a special focus in this year's Outlook – and of improvements in energy efficiency over the next 25 years. Natural gas continues to expand its role while the shares of coal and oil fall back.

 

Oil demand from passenger cars declines thanks mainly to improvements in efficiency, but also biofuels and rising ownership of electric cars

According to WEO-2016, global oil demand continues to grow until 2040, mostly because of the lack of easy alternatives to oil in road freight, aviation and petrochemicals. However, oil demand from passenger cars declines even as the number of vehicles doubles in the next quarter century, thanks mainly to improvements in efficiency, but also biofuels and rising ownership of electric cars.

Coal consumption barely grows in the next 25 years, as demand in China starts to fall back thanks to efforts to fight air pollution and diversify the fuel mix.

“Renewables make very large strides in coming decades but their gains remain largely confined to electricity generation,” said Dr. Birol.

 

For more information visit: www.iea.org/weo

Download: World Energy Outlook 2016 – Executive Summary

 

2016-11-16 | Courtesy: IEA | solarserver.com © Heindl Server GmbH

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