Renewable energy production is at its highest level in the world along with energy consumption

The Energy Institute (EI) and co-authors KPMG and Kearney have launched the annual Statistical Review of World Energy, presenting global energy data for 2023

“Energy is critical to human progress,” said EI President Juliet Davenport. “Now it is also crucial to our survival. With global temperature increases averaging close to 1.5°C, 2023 was the warmest year since records began, and the effects of climate change were becoming more severe on all continents.

“In this year’s Statistical Review, we report on another year of the highest levels in our energy-hungry world. 2023 saw record consumption of fossil fuels and record energy emissions, but also record production of renewable energy sources, driven by increasingly competitive wind and solar energy.

Highlights of the report include:

Record global energy consumption

Total global primary energy consumption reached a record high, up 2% from the previous year to 620EJ.

Global consumption of fossil fuels reached record levels, up 1.5% to 505EJ (due to a 1.6% increase in coal consumption, a 2% increase in oil to over 100 million barrels for the first time in history, while gas levels were changes).

As a share in the entire basket, it amounted to 81.5%, which means a slight decrease compared to 82% last year. Energy emissions increased by 2%, exceeding 40 gigatonnes of CO2 for the first time.

Solar and wind energy power the production of renewable energy

Renewable energy production, excluding hydro, increased by 13%, reaching a record global level of 4,748 TWh.

This growth was driven almost exclusively by wind and solar energy and accounted for 74% of all net additional electricity generated. The share of primary energy in renewable energy consumption (excluding hydropower) was 8%, and including hydropower – 15%.

Gas rebalancing in Europe

European gas demand fell by 7% after falling by 13% in the previous year. Russia’s share of gas imports to the EU fell to 15%, down from 45% in 2021, with LNG imports outpacing pipeline gas to Europe for the second year in a row.

Fossil fuel dependence at peak in advanced economies

In Europe, the share of fossil fuels in primary energy fell below 70% for the first time since the industrial revolution, driven by reduced demand and the rise of renewable energy. Fossil fuel use in the US has dropped to 80% of total primary energy use.

The use of fossil fuels continues to increase in developing countries

In India, fossil fuel consumption increased by 8%, which accounted for almost all of the increase in demand, and accounted for 89% of total consumption.

For the first time, India used more coal than Europe and North America combined.

In Africa, primary energy consumption decreased by 0.5% in 2023. Fossil fuels accounted for 90% of total energy consumption, and renewable energy sources (excluding water) accounted for just 6% of electricity.

China’s post-Covid full turn has seen fossil fuel consumption rise to a new high, up 6%, but the share of primary energy has fallen since 2011, to 81.6% in 2023.

China added 55% of all connected renewable generation in 2023, more than the rest of the world combined.

Different energy stories

Nick Wayth, chief executive of EI, commented: “The transition progress is slow, but the big picture is a diverse array of energy stories playing out across geographies.

We are seeing signs of peak demand for fossil fuels in advanced economies, in contrast to economies in the Global South, where economic development and improved quality of life continue to drive the growth of fossil fuels.”

“In a year where the share of renewable energy has reached a new record, ever-increasing global energy demand means the share of energy from fossil fuels remains virtually unchanged at just over 80% for another year,” noted CB FEI’s Simon Virley. Vice President and Director of Energy and Natural Resources, KPMG in the UK.

“With CO2 emissions also reaching record levels, now is the time to redouble our efforts to reduce greenhouse gas emissions and provide the finances and capacity to build more low-carbon energy sources in the global south, where demand is growing rapidly.” –African review