Energy transition accelerates but may face delays

Green energy is projected to be more prominent by 2028.

Collective efforts to promote and apply energy transition have achieved critical momentum with an accelerated trajectory over the next decade, but several challenges could stall its progress, a report finds.

The new findings from Ernst & Young have revealed that with varied responses in energy transition around the world, green energy will reach prominence in overall electricity generation by 2028 and comprise of 62% of the global power mix by 2050.

However, any step towards transition will be scarce to prevent global warming from reaching 1.5 degrees Celsius, prompting more urgent measures.

Hydrocarbons will stay a vital component of the total energy mix, prompting a need for decarbonisation, courtesy of hard-to-abate sectors. For that, yearly investments of $4.1t in low-carbon technologies will be required by 2050, four times greater than the current levels.

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The current energy transition will also require diversification in technology advancement, commodity supply, consumer engagement, and government policy on 52 technologies.  Ongoing changes will require a multi-faceted approach at a faster pace.

“What we’ve achieved so far in building out renewables and electrifying transport has been relatively simple compared with what comes next. Every market will need to activate a range of accelerators to overcome the inertia of the status quo, keep up the momentum of change, and meet climate targets,” Serge Colle, global energy and resources leader of EY, weighed in.