The energy transition is a pathway toward transformation of the global energy sector from fossil-based to zero-carbon by the second 50 % of this century. At its heart is the necessity to reduce energy-related CO2 emissions to limit climate change. Decarbonisation of the energy sector requires urgent action on a global scale, and while a global energy transition is underway, further action is needed to reduce carbon emissions and mitigate the consequences of climate change. Alternative energy and energy efficiency measures can potentially achieve 90% of the required carbon reductions.
The vitality transition will likely be enabled by i . t, smart technology, policy frameworks and market instruments. IRENA has assessed decarbonisation pathways through REmap, and it is equipped to support and accelerate the vitality transition by providing the required knowledge, tools and support to Member countries since they raise the share of alternative energy in their power sectors.
The Energy Transition Netherlands has numerous dimensions. The ubiquity of energy in modern industry and society will be sure that the impacts are felt across the global economy. Policymakers have a chance to pursue pathways that effectively channel the transition to offer a potential energy system that is secure, sustainable, affordable and inclusive. A solid enabling framework and multi-stakeholder collaboration are key for an effective energy transition.
There are a few universal drivers for energy transition, which transform it into a concern for many countries to actively investigate their priorities:
Demand and offer shifts: Global energy consumption is expected to boost by 30 percent from 2017 to 2040. This growth is driven primarily by non-OECD countries, as they move nearer to universal usage of energy and consume more energy to aid economic and industrial growth, and as western world decouple energy consumption and GDP. Additionally, the long run demand also will likely be met with a more diversified primary energy fuel portfolio, driven from the gradual replacement of coal in power generation by renewable energy sources and natural gas, by reduced demand for liquid hydrocarbons as a result of electrification of transport, and by increased prioritization of national energy security and import independence.
Innovation: Innovation is a constant companion of the energy system, ushering previous transitions from biomass to coal, and subsequently from coal to liquid hydrocarbons. While previous transitions were gradual processes, the power industry is looking towards a dynamic future. Recent trends in technical maturity and price reductions in solar photovoltaics, onshore and offshore wind, battery storage and unconventional fuel extraction fundamentally have altered the global energy balance. Moreover, technologies including smart grids, demand response and blockchain will open new frontiers for the future energy system by changing your relationship between consumers and suppliers.
These new energy market participants demand new set of skills, highlighting the requirement for human capital development.
Environmental concerns: The vitality system contributes two-thirds of global greenhouse gas emissions. The requirement to act has materialized in landmark international cooperation (like the Paris agreement) and national renewable energy targets in countries such as India and China. Private sector organizations have stepped up their responses: the Norwegian sovereign wealth fund announced divestment from coal-based assets, while oil and gas majors have raised stakes in alternative energy and Swiss Re is implementing ESG benchmarks across its entire $130 billion investment portfolio.
However, progress on environmental sustainability is slow, as the carbon intensity of the global energy system remains flat, while air pollution has worsened in lots of countries and two-thirds in the world’s energy consumption is not really put through efficiency interventions. Moving forward, as countries work to meet increased demand, environmental concerns will intensify vaaelo implications for energy system reliability and fuel diversity planning.
Driven by these trends, the power transition is well underway, there are significant opportunities for countries to enhance the performance of their energy systems.
Policy decisions made today determines if the energy system of the future can do delivering across its three key imperatives: economic growth and development; energy security and universal access; and environmental sustainability. The difficulties within the current system are largely as a result of path dependencies from historical over-(or under-)prioritization of one of those three key imperatives. Consumption patterns and sunk investments represent significant socioeconomic lock-in, leading to the program inertia.