Cost-effective technologies could increase electricity’s share in global energy consumption to approximately 35% by 2035, according to a new analysis by the International Energy Agency (IEA).
The IEA report highlights that ongoing energy supply shocks are prompting countries to adopt electrification to reduce reliance on imported fuels, bolster energy security, and mitigate fossil fuel price volatility. Electricity demand has been rising faster than GDP and overall energy demand in recent years.
The transport sector shows the largest potential for electrification. The IEA estimates that around half of oil-based road transport demand can be electrified cost-effectively with current technologies. In buildings and industry, significant portions of heating and low- to medium-temperature applications could also be electrified.
Achieving this goal requires substantial investment in expanding and modernizing electricity grids, increasing battery storage capacity, and developing supportive policies. The report also notes that critical mineral and manufacturing capacity for electric technologies are geographically concentrated, presenting new energy security considerations.
Source: Down To Earth