Global Energy Overview 2023
Global electricity demand growth, despite the energy crisis caused by Russia's invasion of Ukraine, is poised to accelerate from 2023, led by Asia. While the crisis affected commodity prices and economic growth, demand remained resilient. By 2025, Asia will account for half of global consumption, with China driving growth at 5.2% annually, alongside strong demand in India. Europe declined, while the United States and Africa are expected to have varying growth rates. Read More....
Carbon Pricing Trends
Carbon pricing mechanisms in 2022 played a crucial role in reducing emissions and encouraging low-carbon investments. However, the energy crisis posed challenges, limiting their effectiveness in promoting a shift from coal to gas. Despite this, carbon pricing remained important for signaling long-term investments and generating revenue for clean energy transitions. Read More...
Global Emissions
In 2022, global power generation-related emissions reached a new record high of around 13.2 Gt CO2, driven by increased fossil-fired generation in Asia Pacific. Despite a projected decline in emissions in 2023, they are expected to plateau until 2025, with Asia Pacific accounting for 67% of global emissions. However, the CO2 intensity of global power generation is estimated to decline by 3% annually, with steeper declines in Europe and the United States. Read More...
China Energy Overview
China experienced a slowdown in electricity demand growth in 2022 due to the zero-Covid policy's impact on the economy. However, with the easing of restrictions, the economy began to recover, leading to a rebound in electricity growth. The country aims to achieve carbon peaking and neutrality goals, but coal still dominates the electricity system, although the share of renewables is increasing. China faces challenges such as power outages caused by drought and low reservoir levels. Power market reforms are underway to support the transition to a modern energy system, with plans for a unified national electricity market and tighter emissions benchmarks for coal power plants. Read More...
United States Energy Overview
Electricity security remains a significant concern in the United States, with the risk of outages during the winter of 2022/23. Vulnerabilities exposed by the Texas outages highlight the country's susceptibility to extreme weather. The North American Reliability Corporation warns of potential load shedding in various regions. Electricity demand is projected to decline in 2023 before modest growth returns. Gas-fired generation grew in 2022, while coal-fired generation declined. Hydropower output slightly increased, and wind and solar PV continued strong growth. Nuclear output remained stable but is expected to rise with the commissioning of new units. Ensuring electricity security and transitioning to renewable energy are crucial priorities for the US. Read More...
Germany Energy Overview
In 2022, Germany saw a decline in electricity demand but an increase in renewable power generation. Coal-fired generation rose, driven by high gas prices and limited nuclear availability. Germany activated a gas replacement reserve and extended the deadlines for decommissioning coal plants. In 2023, coal generation is expected to rise while renewables and gas-fired generation show opposite trends. Germany aims to adhere to its coal phase-out plan and boost renewable capacity. The country may shift from a net exporter to a net importer of electricity in 2024 Read More...