Every
year, there is a sharp increase in the demand of Renewable sources. According
to BP Statistical Review of World Energy 2020, last year, renewable energy companies accounted for 41 percent of the rise in energy
demand, the largest of any energy source.
According to estimates
from Reuters columnist John Kemp, oil was only 21 percent of the rise in total global energy
demand and natural gas represented 36 percent of the increase in
energy demand,.
Primary energy growth in 2019
was driven by renewables, followed by natural gas, according to BP. These
together contributed to over three-quarters of the net increase.
BP said
in its statistical review published earlier this year:
“The share of both renewables and natural gas in primary energy
increased to record highs. Meanwhile, coal consumption declined, with its share
in the energy mix falling to its lowest level since 2003”.
Although, renewables and EVs will encroach on the territory,
Natural gas, coal, and oil will continue to be major sources of energy in the
coming years. The growth in renewables will be accelerated by declining costs
and policies around the world to encourage a shift to lower-carbon energy
sources, BP said.
Going forward, cost competitiveness will be key to how much oil,
gas, and coal that renewables can displace. Renewable power is
increasingly cheaper than any new electricity capacity based on fossil fuels,
the International Renewable Energy Agency (IRENA) said in June.
The trend in renewables dominating power capacity additions has
already started. With a record 118 gigawatts (GW), photovoltaics (PV) accounted
for 45 percent of new-build capacity and was the most popular technology
deployed in a third of nations, BNEF said.
According to estimates from research company
BloombergNEF (BNEF), solar and wind power combined accounted for 67 percent of
all new power capacity the world added last year, while the share of fossil
fuels in new capacity declined to 25 percent.
As per BP’s Energy Outlook 2020 published, renewables –
led by solar and wind – will be the fastest-growing energy sources over the
next three decades, with renewable energy use in the power sector growing quickly in all three scenarios that BP has examined—Rapid, Net Zero, and Business As Usual
(BAU).
The use of coal in developed economies is sliding because older
coal-fired plants cannot compete economically with new natural gas and
renewable capacity, Ethan Zindler, head of Americas at BNEF,
says. Including hydropower, renewables accounted for three-quarters of all
commissioned capacity globally last year.
In fuel demand for road transportation, the higher the penetration
of EVs in major automotive markets, the more oil (gasoline) demand could be
displaced. China is also looking to boost EV use and has extended
subsidies for EVs through the end of 2022, Ram Chandrasekaran, Principal
Analyst – Transportation & Mobility at Wood Mackenzie, said last month.
EV sales are set to benefit from the ‘green recovery’ plans of
many governments, especially in Europe.
WoodMac expects total global EV fleet to jump to 323 million over
the next 20 years—that’s 35 times the current level, as this year’s recession
“has left a dent in the electric vehicle (EV) sector but it’s a scratch on the
paintwork, not a big repair job.”