Last year saw some major trends in the global energy sector. Perhaps the most dramatic was the shift to renewable power, which continued to outpace the projections of both financial analysts and industry experts. 2024 saw new highs in renewable installation, largely due to China, which accounted for more than half of all the solar power installed globally. Huge solar installations also came online in California and Nevada during the year. On the other hand, the amount of coal burning for the year also exceeded expert predictions, also largely due to China.
A second trend was increasing sales of electric vehicles, which reached a new high, although short of expectations. A major driving force in EV sales is the dropping price of lithium-ion batteries, which fell by 20% in 2024. Again, China was a major factor with roughly half of all its domestic vehicle sales being electric.
Coal’s decline is being slowed by the rising demand for electricity. The increased use of electric heating and cooling along with the increasing use of EVs are major factors. But the proliferation of energy-hungry data centers incorporating artificial intelligence capabilities is driving up the demand for power even more.
Perhaps the clearest indication of the future for global energy comes from investors, who put about $2 trillion into clean energy last year. That is twice as much as invested in oil, coal, and natural gas.
The history of energy has seen the Age of Coal and the Age of Oil. By all indications, we are now heading into the Age of Electricity.
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The Year in Energy in Four Charts
Photo, posted November 23, 2024, courtesy of Mussi Katz via Flickr.
Earth Wise is a production of WAMC Northeast Public Radio
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