Renewable energy growth remains strong and won’t stop or reverse, despite increased geopolitical unrest, according to Statkraft.
Statkraft has published its annual Low Emissions Scenario report, which analyses the drivers and impacts of the global energy transition up to 2050.
The scenario assumes that markets, policies and technological development continues to drive the clean energy transition globally.
The energy-related emissions in the Low Emissions Scenario are consistent with emission pathways limiting global warming to just below 2°C.
Statkraft’s Low Emissions Scenario shows that the world can cut emissions mainly by deploying existing competitive clean technologies at scale, such as solar and wind power, grid sustainability, and electric vehicles.
Solar power stands out as the global frontrunner in the Low Emissions Scenario.
The costs of wind and solar power, batteries and electric vehicles have dropped significantly over the last decade, making clean technologies economically attractive compared to fossil counterparts.
In addition, the recent market turmoil and increased geopolitical tension have put energy security high on the agenda internationally, resulting in an increased policy push for renewables and energy efficiency.
In the Low Emissions Scenario, solar grows 22 times while wind grows 12 times to 2050, compared to today’s levels.
“Despite increased geopolitical unrest and rivalry, renewable energy growth remains strong and won’t stop or reverse.
“The cost of wind and solar power, batteries and electric vehicles have dropped significantly over the last decade, resulting in them replacing fossil fuels.
“Energy security has also become a top priority on the international agenda, resulting in an increased policy push for renewables,” said Christian Rynning-Tønnesen, CEO of Statkraft.
The report’s Clean Tech Rivalry scenario assumes that global powerhouses such as the US, EU, and China engage in a subsidy-fuelled and protectionist competition in clean energy supply chains.
The Delayed Transition scenario assumes that imminent challenges such as high inflation and costs of living, national security, and social unrest lead to more near-sightedness and reduced climate action.
“It is important that we are mindful of the choices we make today and how they will affect the energy transition.
“The negative impacts of bickering and delays are high.
“Global collaboration and trade are key elements in a cost-effective and successful energy transition,” said Rynning-Tønnesen.