In a significant announcement at the annual World Energy Outlook press conference in Paris, Fatih Birol, executive director of the International Energy Agency (IEA), declared, “In energy history, we’ve witnessed the Age of Coal and the Age of Oil – and we’re now moving at speed into the Age of Electricity.” He posed a critical question: “Who will be the main actors in the age of electricity?”
Birol highlighted a key player in this transition: nuclear energy. He noted, “We are seeing nuclear power making a strong comeback in many countries. Next year, we are set to witness the highest level of nuclear power generation in history.”
Despite the nuclear revival and the fact that over 80% of new power plants worldwide are renewable, Birol warned that clean energy faces challenges, primarily due to the lower costs of fossil fuel alternatives. “In the second half of this decade, we are entering a new energy market context as the fundamentals of the oil and gas sector are easing,” he explained.
The World Energy Outlook report emphasizes the need for a balanced investment strategy, particularly between renewables and grid infrastructure. Currently, for every dollar spent on renewables, only 60 cents are allocated to grids and storage. The report asserts that secure decarbonization of the power sector demands a swift increase in investments in grids and storage, aiming for a rebalancing ratio of 1:1.
Furthermore, it warns that many power systems remain vulnerable to extreme weather events, highlighting the urgency of enhancing their resilience. Despite the growing momentum behind clean energy transitions, the world is still far from achieving net-zero emissions goals.
Matthew Boulton, Director of Solar, Storage, and Private Wire at EDF Renewables UK, reacted to the report, stating it serves as “a stark reminder of the pressing need to modernize our grid and deploy renewables at scale.” He emphasized, “Low-emissions energy sources are set to generate more than half of the world’s electricity by 2030. Investing in renewables is essential for enhancing energy security and establishing a resilient, affordable energy system.”
Boulton urged faster action to stay on track for net-zero targets, advocating for the integration of technologies like battery storage to enhance system flexibility and invest in a smarter grid.
These pressing issues will be further explored at the upcoming Enlit Europe event in Milan, where key stakeholders will discuss critical topics ranging from generation to grid management and the role of AI in the energy sector.
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