The International Energy Agency (IEA) has released its World Energy Outlook 2024 report, revealing that Australia has seen a significant reduction in the use of fossil-fuelled power sources, with low-emissions electricity generation doubling between 2018 and 2023.
Other findings from the report include:
- Robust, independent analysis and data-driven insights are vital to navigate today’s energy uncertainties
- Clean energy transitions have accelerated sharply in recent years, shaped by government policies and industrial strategies, but there is more near-term uncertainty than usual over how these policies and strategies will evolve
- Geopolitical risks remain but underlying market balances are easing, setting the stage for intense competition between different fuels and technologies
- Clean energy is entering the energy system at an unprecedented rate, including more than 560GW of new renewables capacity added in 2023, but deployment is far from uniform across technologies and countries
- Clean energy momentum remains strong enough to bring a peak in demand for each of the fossil fuels by 2030
- Global investment in clean energy is approaching $US2 trillion – almost double the combined amount spent on new coal, oil and gas supply.
Australian industry response
Climate Councillor, Greg Bourne, said the report shows that in the five years to 2023, Australia’s increase in renewable energy generation was the most rapid globally.
“With millions of Aussie households and businesses taking up rooftop solar, and thousands of household and community batteries installed, it’s easy to see why,” he said.
Mr Bourne said now is the right moment for Australia to power past fossil fuels like coal and gas and build out more renewable energy projects.
“Taking advantage of Australia’s clean energy advantages is critical to strengthening our energy security and affordability as the world electrifies.”
Institute for Energy Economics and Financial Analysis (IEEFA) CEO, Amandine Denis-Ryan, said that the report clearly identifies areas where too much investment is happening – such as in new coal and gas investments – and where too little investment is happening – such as in energy efficiency and methane emissions reduction.
IEEFA Energy Finance Analysist, Jay Gordon, said that the World Energy Outlook 2024 highlights why a strong focus on energy efficiency is important, as energy efficiency alone accounts for half of the emission reductions in the IEA’s net zero emissions scenario by 2030.
“Australia was one of 200 countries that pledged to double the rate of energy efficiency improvements by 2030 – the WEO confirms that meeting this pledge would lead to lower energy bills, less fuel poverty, more jobs, and a healthier environment,” Mr Gordon said.
“Improving efficiency standards and removing barriers to household energy upgrades would help Australia meet its pledge.”
IEEFA Lead Analysist, Johanna Bowyer, said that the report underscores how renewables are set to be a key player in the coming years, with solar PV and wind now the cheapest electricity sources in most markets, renewables are set to make up four fifths of total capacity additions to 2030
“The IEA report has found there is abundant manufacturing capacity for clean energy technologies, notably solar PV and batteries. Existing solar PV manufacturing capacity allows for deployment almost three times higher than the installations seen in 2023, and battery manufacturing capacity far exceeds current demand.”
Ms Bowyer said that this plentiful supply will support downward pressure on solar PV and battery prices.
“Australia is currently at 39 per cent renewables in the east coast grid and aiming for 82 per cent renewables by 2030. To reach this goal, significant acceleration is needed in large-scale wind and solar uptake, along with increase in the uptake of energy efficiency and distributed energy technologies like household batteries,” Ms Bowyer said.
“While clean power has momentum globally, the IEA report shows that faster uptake is needed to reach net zero by 2050.”
