IEA expects fossil fuel demand to peak by end of this decade
Date
10/17/2024 12:32:02 AM
(MENAFN) The world is entering a new phase of electricity demand, according to the International energy Agency (IEA), which stated on Wednesday that fossil fuel demand is expected to peak by the end of the decade. As a result, excess supplies of oil and gas could drive more investment into green energy, as reported by a UK news agency. However, the IEA also highlighted significant uncertainties due to escalating conflicts in the Middle East, tensions involving major oil and gas producer Russia, and upcoming elections in countries responsible for half of global energy demand in 2024.
IEA Executive Director Fatih Birol emphasized that in the second half of this decade, a potential surplus of oil and natural gas, depending on how geopolitical events unfold, could lead to a major shift in the global energy landscape. This surplus could result in lower fossil fuel prices, enabling nations to direct more resources towards clean energy technologies, marking the beginning of a new "electricity age."
However, the IEA warned that short-term supply disruptions could occur, particularly if conflicts in the Middle East disrupt oil flows, creating volatility in the energy market. These ongoing conflicts underline the vulnerability of the current energy system and the pressing need for investment in cleaner and more secure energy technologies.
In 2023, a record amount of clean energy was added to the global grid, with over 560 gigawatts of renewable energy coming online. The IEA also projected that nearly USD2 trillion will be invested in clean energy in 2024, which is almost double the investment expected for fossil fuels. This shift underscores the accelerating global transition to renewable energy sources.
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