INTRODUCTION
ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
Global Energy Landscape
06
GLOBAL ENERGY TRENDS SUGGEST A shift in the coming decades . Primary energy demand growth is expected to slow to approximately one per cent CAGR from 2018 to 2040 due to declining population growth in certain regions , slower economic growth , reduced energy intensity , and efficiency improvements .
Renewables and natural gas are expected to play a more significant role in primary energy supply , with renewables offering an affordable
Annual investment in fossil fuels and clean energy , 2015-2023
billion USD ( 2022 ) 2
1.75
1.5
1.25
1
0.75
0.5
0.25
0 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fossil Fuels
300
Clean energy
New capacity non-renewable ( CW ) solution for global decarbonisation goals and natural gas serving as a transitional fuel in the energy transition .
Electricity is anticipated to experience the fastest growth in final energy consumption , driven by industrial electrification , transportation electrification , increased household appliance usage , and rural electrification .
Globally , renewable energy ( RE ) is gaining prominence in the power
New capacity renewable ( GW )
Clean energy
Fossi fuels
IEA Licence CC BY 4.0
Source : IEA generation mix , with its share in generation capacity reaching 36.6 per cent in 2020 . Renewables have outpaced conventional generation fuels for new installed capacity additions since 2012 , accounting for 82 per cent of capacity additions in 2020 .
In recent years , the pattern of investments has shifted the world towards a more electrified , renewablesrich energy system . The recovery from the Covid-19 pandemic and the response to the global energy crisis have significantly boosted global clean energy investment .
According to IRENA ’ s World Energy Transitions Outlook 2023 , the power sector has seen good progress in installed renewable capacity and generation . Renewables represented 83 per cent of capacity additions and installed power generation capacity reached 40 per cent globally in 2022 , with the addition of 295 gigawatts ( GW ) of renewables , the largest-ever annual increase in renewable energy capacity .
The robust economic justification for renewable energy , paired with favorable policies , has led to a continuous rise in its share of the global energy mix . However , the deployment is heavily concentrated in a select few countries and regions , with China , the European Union , and the United States contributing to 75 per cent of the total capacity additions .
Annual capacity installations ( GW / year ) |
225
150
75
0
|
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
15 % 28 % 23 % 38 % 37 % 52 % 50 % 59 % 57 % 82 % 83 %
|
Although large-scale renewable energy deployment is typically associated with countries that have well-developed power systems , deployment must be expanded elsewhere , especially in developing nations lacking electricity access .
The new World Energy Outlook ( WEO ) 2023 from the International Energy Agency ( IEA ) reveals significant changes in the global energy landscape by the end of this decade . The rapid growth of clean energy technologies like solar , wind , electric cars , and heat pumps is transforming how the world powers everything from home appliances to factories and vehicles .
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