Experts identify seven stable trends that determine the development of the global energy sector, despite geopolitical instability and economic fluctuations.
The first trend is the advent of the “age of electricity”. Demand for electricity is growing twice as fast as total energy consumption. This is due to the boom in the area artificial intelligence, data centers and high-tech production. More than half of all investments in the global energy sector today are directed specifically to the electric power industry.
The second strong trend is the continuous growth of renewable energy sources. Solar energy is leading the way, especially in countries with high levels of insolation such as India. New technologies are also being developed, including next-generation geothermal energy.
The third trend is the revival of nuclear energy. After a decline in the 2010s, the industry is on the rise again. More than 70 GW of new nuclear capacity is currently under construction. Large technology companies are looking to nuclear power plants as a source of stable, low-carbon electricity for their data centers.
The fourth point is the growing risks for energy security. Threats are shifting from traditional oil and gas on critical minerals and grid stability. China dominates the processing of most strategic minerals, and extreme weather events and cyber attacks are emerging challenges.
The fifth trend is the strengthening of the role of states. Energy is increasingly seen as a national security issue, leading to active government intervention in regulation, trade and the development of technology chains.
The sixth trend is the formation of a “buyer’s market” for key energy resources and technologies. In the oil and LNG markets, as well as in production There is an oversupply of solar panels and batteries, which could lead to lower prices and investment activity.
The seventh point is a change in growth leaders. If China was previously the main driver of energy consumption, now other developing economies are taking over this role, including India, countries in Southeast Asia, the Middle East, Latin America and Africa.
Despite the general turbulence, these seven trends set a clear direction for the development of global energy. Understanding them allows you to make informed decisions and investments in times of global change.
Source: IEA
