According to the International Energy Agency (IEA) it is clear that the transition from coal to clean energy is underway, as renewable energy made up half of new power plants in the world last year.
Renewable energy, or green energy, is second to coal in terms of world electricity generation, and is on it’s way to overtaking the unsustainable fossil fuel by early 2030, says a recent report published by the IEA.
Fatih Birol, the executive director of IEA, says renewables are not a niche anymore.
Renewable energy is mainstream
“Renewable energy has become a mainstream fuel, as of now,” he said.
Mr Birol said that renewables made up 60 per cent of all new investment, however it was not “fair competition” due to the $490 billion fossil fuel subsidies in 2014.
The current price of oil is below $50 a barrel, and is expected to only climb to $80 by 2020, and even less growth after that, thanks to the energy transition.
By 2015, its predicted that exploration and production of oil as well as investment will drop by about 20 per cent.
The IEA was created as a result of the 1970 oil shocks, and they warn that if the oil price does not change for 10 year or more, Middle Eastern oil, which is cheaper, would begin to dominate exports, with a market share of 75 per cent.
According to Mr Birol this is unlikely, however if the situation did arise, ” “reliance on a very few number of countries in a region that is in turmoil may not be the best news for oil security,”.
The fast increase in renewable energy generation noted in the report by the IEA will dramatically slow the carbon emission growth.
Nevertheless, earth is still on track to suffer from 2.7C global warming, which is extremely dangerous; 2C is considered the dangerous threshold of warming. This calls for a major course correction.
The Paris UN climate change summit is just weeks away, and Mr Birol says that it is crucial world leaders develop a clear direction for the rapid transition of the global energy sector.
“The difference between 2.7C and 2C is not something meaning you can take your jacket off and adapt to life – it will have major implications for all of us.”
Future of coal unsteady
The future of coal is predicted to be “turbulent” the IEA projects.
“Coal has increased its share of the global energy mix from 23% in 2000 to 29% today, but the momentum behind coal’s surge is ebbing away and the fuel faces a reversal of fortune.”
China’s dramatic new focus on renewables is a major influence on the decline of coal, and has implications on the whole world.
Mr Birol labelled China as “the champion of renewables”, thanks to their huge energy efficiency program.
Although, coal demand in south-east Asia and India is set to triple by 2040, countries which get little attention for how important they are.
“[South-east Asia] is the only region in the world where the coal demand is increasing its share,” said Mr Birol.
Without climate policies, renewables and low priced coal would run gas out of the region.
India accounts for 20 per cent of the solar power installations worldwide, and is “moving to the centre stage of energy,”.
“The choices India makes will be important for all of us, and therefore there is a need for supporting India’s push for clean and efficient technologies,” said Mr Birol.
Photo courtesy of Friends of Europe
