Mumbai: The Paris Agreement’s targets are not on track as greenhouse gas (GHG) emissions continue to increase, reaching a new record high of 37.4 billion tonnes (Gt) in 2023 despite progress being made, according to a latest report by Capgemini titled ‘World Energy Markets Observatory’.
“The total amount of final energy provided by renewable energy is likely to be limited to about 40 per cent of global needs. In 2023, total renewable energy capacity increased by 14 per cent year-on-year with a larger capacity expansion of solar than wind,” it added.
The report also noted that there is a need to hasten the deployment of renewable energy globally and to accelerate in developing countries, in order to deliver the 2030 and 2050 decarbonisation goals.
Despite an historical spike in renewable penetration, the pace of development isn’t fast enough to close the gap, according to James Forrest, Global Energy Transition and Utilities Industry Leader at Capgemini.
“There is still much to do in the next decade to get closer to net zero by 2050 and achieve a successful energy transition – whether it be in the field of low carbon technologies, R&D efforts, nuclear or grid flexibility and storage,” he said.
Forrest added that a shift away from measuring energy based on primary consumption is needed.
“This measurement was relevant during past energy crises, but it is now time to adopt a more holistic approach. Moving to a final energy demand measurement would better assess clean energy progress and ensure more accurate projections,” he said.
The report said that while 2024 is promising to hit another record, as this was the case for the 22nd previous years, this growth is far below what is needed to achieve net zero carbon in 2050.
“Moreover, while the renewable penetration rate increases, they are impacting grid stability and association with stationary batteries will become compulsory. According to the report, storable renewable energies development, such as biomass or geothermal energy, should be accelerated,” it added.
The annual report is published in partnership with Hogan Lovells, Vaasa ETT and Enerdata and takes stock of the current state of the energy transition.
It provides insights on what the key focus areas would need to be, moving forward, to address the complex energy transition challenges, including a change in the measurement of clean energy progress, and accelerated investment in the power grid and clean technologies.
On hydrogen, the report noted that the number of projects reaching final investment decisions has quadrupled over the last two years and only certain uses in ‘Hard to Abate’ industries, such as heavy industry and maritime mobility, have strong potential.
On global nuclear capacity, it said while there is some promising progress in nuclear renaissance including small modular reactors, the development of new nuclear power plants is still difficult.
The investment in power grid is expected to reach $400 billion in 2024, with Europe, the United States, China and parts of Latin America leading the way, said the report.
