Energy Transition is the global energy sector’s shift from fossil-based systems of energy production and consumption to renewable energy sources like wind and solar electrification, and improvements in energy storage are all key drivers of the energy transition. The Energy Transition will continue to increase in importance as investors prioritise environmental, social and governance (ESG) factors.
According to the Weforum.org, Global average ETI (Energy Transition Index) scores increased by 10% since 2014, but showed only marginal growth in the past three years; Only 18% of countries in 2023 have balanced the imperatives of the energy triangle; Equity was compromised as the transition centred on secure and sustainable; The top 10 countries account for only 2% of global CO2 emissions from fuel combustion and 4% of total energy supply.
Related Definitions in the Project: The Renewable Energy; Energy Definitions; Project Management
Example Article of the Energy Transition:
$2-Trillion Funding Gap Casts Shadow over Energy Transition (Source: Oil Price on 24 April 2024): By Irina Slav - Investments in the energy transition are falling way short of what is needed for its success. The fresh warning comes from BlackRock, which said annual investments in the shift away from hydrocarbons need to almost double from their current record levels. But it’s getting less likely this would ever happen. In a new edition of its Investment Institute Transition Scenario, the bank said that moving the transition forward would require more money from both public and private sources and that, for its part, would require “alignment between government action, companies and partnerships with communities,” according to Michael Dennis, head of APAC Alternatives Strategy & Capital Markets at BlackRock, as quoted by CNBC. ...
Rystad: Energy Transition Requires $3.1 Trillion in Grid Investment by 2030 (Source: Oil Price on 17 February 2024): By Rystad Energy - Renewable energy developments continue at break-neck speed, with $644 billion to be spent on new capacity in 2024, but outdated and inadequate power grids could prove to be a significant stumbling block to the energy transition. If the world is to limit global warming to 1.8 degrees Celsius above pre-industrial levels, $3.1 trillion of grid infrastructure investments are required before 2030, according to Rystad Energy research. In that scenario, an additional 18 million kilometers of grid network would be needed to keep pace with the electrification underway across cities and counties, including new renewable energy capacity and the rapid adoption of electric vehicles. This would take the total length of all power grids worldwide to 104 million kilometers in 2030, expanding to 140 million kilometers in 2050 – almost the same distance from Earth to the sun. The immediate expansion by 18 million kilometers would necessitate nearly 30 million tonnes of copper, a commodity already in short supply. ...
