Future price changes are assumed to follow smooth trajectories in all scenarios, but there remains an ever-present risk of volatility. National and regional elections in countries that account for half of global energy demand are taking place in 2024. Recent years have seen large overall price reductions for many clean energy technologies.
With rising investment of clean technologies and rapid growth in electricity demand, the WEO 2024 examines how far the world has come on its journey towards a safer and more sustainable energy system, and what more needs to be done to reach its climate goals.
As the world accelerates toward net zero, the energy transition may require a major course correction to overcome bottlenecks and reach the goals aligned with the Paris Agreement.
The projections for global electricity demand in STEPS are 6%, or 2 200 terawatt-hours (TWh), higher in 2035 than in last year’s Outlook, driven by light industrial consumption, electric mobility, cooling, and data centres and AI.
Consumers around the world spent nearly USD 10 trillion on energy in 2022 during the global energy crisis, around half of which ended up as record revenues for oil and gas producers. An easing of price levels promises some welcome relief, particularly in fuel-importing countries.
How the world will meet the projected increase in energy demand is one of the key questions of the energy transition. In the United States, industrial resurgence would drive demand growth through electrification, while in Europe, continued deindustrialization would lead to declining demand in the region.