When will the global demand for energy peak?

A new report, published by the World Energy Council, suggests that per-capita global energy demand will peak sooner than we think. The report says that we will see primary energy demand peak before 2030, with demand per person for energy falling after 2030. The report findings offer a stark contrast to historic growth levels, which have seen demand for energy more than double since 1970.

The peak in demand and what it means

A peak in demand will have a significant impact on energy companies in terms of their ability to meet growth expectations. With this in mind, the Council suggest the traditional peak oil debate is now out-dated – and it’s the peak demand for energy that’s now the real issue.

Alongside this major finding, the report also indicates that:

• The demand for electricity will double by 2060
• The rise of solar and wind of energy will continue to grow at an unprecedented rate. Solar and wind accounted for 4% of power generation in 2014 but could supply up to 39% by 2060.
• Hydroelectric power and nuclear are expected to grow.
• Use of fossil fuels will fall – potentially to as low as 50% of the world’s primary energy mix.

With the report suggesting an increased demand for gas and peak demand for oil in 20 – 30 years time, it’s time for businesses to begin thinking about their energy portfolio.

About the impact on business, Nuri Demirdoven, managing director at Accenture Strategy, a leading global services company, advises companies to:

“Utilize business and digital technologies to transform how they deliver work and organize and manage performance across their businesses.”

A decarbonised future

The report also highlights the “fundamentally new world” that our energy industry is entering. However, while the use of fossil fuels is expected to fall, it’s thought that fossil fuels will still make up more than 50% of our primary energy mix by 2060. Of course, with a reliance on fossil fuels, we’ll struggle to meet our carbon targets – emitting more than the safe amount of carbon dioxide we should over the next 40 years.

The report warns:

“To reach global climate targets, the world needs an exceptional and enduring effort on top of already pledged commitments, and coordinated global action at unprecedented levels, with meaningful carbon prices.”

Decarbonisation policies and uptake of renewable energy sources are one of the recommendations listed in the report. At Low Carbon Energy, we specialise in low carbon, renewable energy like Solar PV. Suited to homeowners and businesses, our solar power solutions help you to do your bit for the environment while saving you money at the same time. Head over to our Solar PV page to discover our solutions.

If you want to find out how to future proof your home or business, why not take us up on our Free Energy Consultation? We’ll help you understand where you are in terms of energy usage and help you to identify ways in which to move forward to reduce energy costs and carbon emissions.

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