The International Energy Agency (IEA) has published its World Energy Outlook (WEO) 2018, in which it said that the share of renewables in global power generation will increase to over 40 per cent by 2040 from the current 25 per cent. It said that the increase is due to reduced costs and increased support from government policies. The report also stated that currently, coal is the largest source of energy, with natural gas the second largest.
WEO 2018 outlines trends in global power generation, and the possible impact these will have on supply and demand, carbon emissions, air pollution, and energy access. The IEA said: “Power systems will need to make flexibility the cornerstone of future electricity markets.” It went on to say that market reforms, grid investments, and improving demand-response technologies such as smart meters and battery storage technologies are expected to help increase solar photovoltaics and wind share.
Dr Fatih Birol, Executive Director of the IEA, said: “Our analysis shows that over 70 per cent of global energy investments will be government-driven, and thus the message is clear. The world’s energy destiny lies with government decisions. Crafting the right policies and proper incentives will be critical to meeting our common goals of securing energy supplies, reducing carbon emissions, improving air quality in urban centres, and expanding basic access to energy in Africa and elsewhere.”