Wind to be EU's Largest Power Source in Ten Years

Mindy Sparks
November 15, 2018

"In 1H19, based on our outlook for non-OPEC production and global demand, and assuming flat OPEC production. the implied stock build is now 2 million bpd", the IEA said.

The IEA has, however, this year introduced a new "Future is Electric" scenario, under which nearly half of the world's total vehicle fleet is electric by 2040, electricity makes "rapid inroads" into building and industry heating and digital technologies are widespread, connecting almost all consumer devices and appliances.

IEA executive director Fatih Birol said investments of roughly $2 trillion per year will be needed to meet future energy demand.

Underlying how well placed Australia is in energy, the IEA says increasing production and consumption of LNG or Liquified Natural Gas will see natural gas will replace coal as the world's second most important energy source by the mid 2030s as countries seek to cut air pollution and the rise in liquefied natural gas (LNG) use.

"Our analysis shows that over 70% of global energy investments will be government-driven and, as such, the message is clear: the world's energy destiny lies with government decisions", he added. However, even with that growth, renewables will still account for only 12.4% of the energy pie.

However, global demand is not expected to peak until around 2040.

Oil demand is not expected to peak before 2040, the Paris-based IEA said in its 2018 World Energy Outlook.

That would be less of a problem if the world followed the IEA's "sustainable development scenario", where aggressive policies targeting carbon emissions slice into demand for fossil fuels.

"In the New Policies Scenario, demand in 2040 has been revised up by more than 1 million bpd compared with last year's outlook largely because of faster near-term growth and changes to fuel efficiency policies in the United States", the agency said.

"By 2025, almost every fifth barrel of oil and every fourth cubic meter of gas in the world come from the United States".

OPEC and rival producers such as Russian Federation, have floated the possibility of cutting oil production next year to prevent an unwelcome build-up in global inventories, even as Iran now faces United States sanctions on its exports.

"In the wake of the fallout from the 2014 oil price crash, the continued expansion of tight oil production in the United States and the prospect of major structural changes in oil consumption underpinned a view that the oil price was set to stay lower for longer, perhaps forever".

According to the IEA's projections, wind energy will become the EU's largest power source in 2027, overtaking coal, nuclear and then gas in the process.

But other emerging economies in Asia are projected to lift demand for reasons similar to China's in coming decades.

The report suggests flexibility is of "growing urgency" as countries around the world are ramping up their share of solar and wind will require market reforms, grid investments as well as improved demand response technologies such as smart meters and battery storage systems.

Australia is well placed for that demand being so close to the region and especially the likes of China, India, Japan and Indonesia.

According to the IEA, coal now makes up a third of all energy consumed worldwide and plays an essential role in iron and steel industries.

Energy-related Carbon dioxide emissions could reach a record high this year, the IEA said, and will continue to grow at a slow but steady pace to 2040.

Other reports by Iphone Fresh

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