INDUSTRY REPORT
change is urgently needed across most components of the energy system to achieve net zero emissions by 2050 , according to the IEA ’ s latest evaluation of global progress .
Published on 12 July 2023 , the annual update of the IEA ’ s ‘ Tracking Clean Energy Progress ’ online resource reveals remarkable gains in the past year . Electric car sales reached a record high of more than ten million in 2022 , a nearly tenfold increase in just five years . Renewable electricity capacity additions rose to 340 gigawatts ( GW ), their largest ever deployment . As a result , renewables now account for 30 % of global electricity generation . Investment in clean energy reached a record US $ 1.6 trillion in 2022 , an increase of almost 15 % from 2021 , demonstrating continued confidence in energy transitions even in an uncertain economic climate .
“ The transition to clean energy is occurring at different speeds across regions and sectors , however . For example , nearly 95 % of global electric car sales in 2022 took place in China , the United States and Europe . Stronger international cooperation is needed to spread progress on electric cars and other key technologies to all regions , particularly emerging and developing economies ,” said the IEA .
Clean energy deployment is also occurring faster in some parts of the energy system , such as electricity generation and passenger cars , where costs have fallen and technologies are already relatively mature . Meanwhile , rapid innovation is still needed to bring to market clean technologies for parts of the energy system where emissions are harder to tackle , such as heavy industry and long-distance transport . Positive steps on innovation have been made in the past few years , but a further acceleration is needed to soon bring to market more low-emissions technologies for these areas .
Although many sectors are not yet fully on track for international climate goals , the new analysis identifies crucial advances over the past year . For the first time ever , announced manufacturing capacity for electric vehicle batteries has reached levels sufficient to fulfil expected demand requirements in 2030 in the IEA ’ s scenario for achieving net zero emissions by 2050 . This is backed by the momentum from major industrial strategies such as the Inflation Reduction Act in the United States and the European Union ’ s Green Deal Industrial Plan .
Solar PV has been upgraded to “ on track ”, as its progress now aligns with milestones consistent with net zero ambitions . Solar PV generated a record of nearly 1,300 terawatt-hours ( TWh ) in 2022 , up 26 % from 2021 and logging the largest absolute generation growth of all renewable technologies in 2022 . The number of manufacturing projects in the pipeline for solar PV also saw massive growth in the context of widespread government support , especially in China , the United States and India .
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“ If all announced projects are realised , global manufacturing capacity for solar PV will more than double in the next five years , outpacing 2030 demand in our ‘ Net Zero by 2050 Scenario ’,” explained the IEA . Notable progress was made in the buildings sector , which has been upgraded from “ not on track ” to “ more efforts needed ” in the Tracking Clean Energy Progress three-tier rating system . Governments are increasingly introducing stringent building energy codes and performance standards , and the use of efficient and renewable technologies for buildings such as heat pumps and low-emissions cooling equipment is accelerating . Energy efficiency policies were also strengthened globally in the past year .
“ Policy is advancing in many regions . Earlier this year , for example , Indonesia became the first country in Southeast Asia to establish a legal and regulatory framework for carbon capture , utilisation and storage , and Namibia released a hydrogen strategy in late 2022 ,” commented the IEA . Momentum around hydrogen continues to grow , but it has yet to fulfil its potential role in the clean energy transition . Hydrogen could play a crucial role in decarbonising sectors such as heavy industry and longdistance transport , in which emissions are otherwise hard to abate .
However , the IEA cautioned that while progress can be observed across all of the 50-plus components of the energy system evaluated in Tracking Clean Energy Progress , the majority are not yet on a path consistent with net zero emissions by 2050 . Stronger policy support and greater investment are needed across a wide range of different technologies , in all regions of the world , to enable a broader and faster shift towards clean energy to keep net zero emissions by 2050 within reach .
Energy efficiency is key
The world just experienced its hottest June on record , and unprecedented temperatures have not let up this July endangering millions of lives and pushing electricity grids to their limits as people crank up their air conditioners , if they have them , to keep cool .
“ This extreme heat also has major consequences for global energy systems . Record-shattering temperatures are feeding demand for air conditioning and driving surges in demand for electricity — which can result in a vicious cycle of increased greenhouse gas emissions that , in turn , make the world even hotter . And with electricity prices still elevated in many regions as a result of the global energy crisis , people are also feeling the heat in their pockets , often paying more than double what is needed to keep cool due to inefficient air conditioners ,” said the IEA . “ There are solutions to mitigate both higher energy usage and consumer costs , from stronger standards for air conditioning units to new incentive programmes from grid operators . As policymakers race to make the world ’ s energy systems more sustainable , they must consider the consequences of rising cooling demand — and seize the opportunity to invest more in energy efficiency at this critical time ,” it added . n
Image : Shutterstock . com .
30 | ismr . net | ISMR September 2023