RENEWABLE ENERGY
Robust , independent analysis and data-driven insights are vital Clean energy transitions have accelerated sharply in recent years , but there is more near-term uncertainty than usual over how these policies and strategies will evolve .
The report says : “ Countries representing half of global energy demand are holding elections in 2024 and energy and climate issues have been prominent themes for voters that have been buffeted by high fuel and electricity prices , and by floods and heatwaves .
“ Yet energy policies and climate targets , influential though they are , are not the only forces behind the continued rise of clean energy .”
It says there are strong cost drivers , as well as intense competition for leadership in clean energy sectors that are major sources of innovation , economic growth and employment .
“ More than ever , the energy outlook is complex , multifaceted and defies a single view on how the future might unfold .”
Underlying market balances are easing , triggering intense competition between different fuels and technologies The next phase in the journey to a safer and more sustainable energy system is marked by continued geopolitical hazards but also by a relatively abundant supply of multiple fuels and technologies .
“At Microsoft , we ’ re working to harness the power of AI for sustainability ”
MELANIE NAKAGAWA , CSO , MICROSOFT
IEA analysis finds :
• An overhang of oil and LNG supply during the second half of the 2020s
• A large surfeit of manufacturing capacity for some key clean energy technologies , notably for solar PV and batteries
• Downward pressure on prices and a period of increased competition among suppliers
• Clean technology costs are coming down , but maintaining and accelerating momentum behind their deployment in a lower fuel-price world is a different proposition .
It concludes that consumer choices and government policies will have “ huge consequences ” for the future of the energy sector and for tackling climate change .
82 February 2025