Kuwait: March 19, 2019
At the end of the second decade of the twenty first century, the world seems to be gearing up for yet another transition in energy. This time from hydrocarbons to cleaner and renewable sources amid environmental and sustainability concerns, and global warming.
- The transition away from oil and into renewables has the potential to lead to structural changes in energy markets and global geopolitics. Oil companies will face serious challenges in adapting and transforming their business models, while oil-producing countries will have to adapt and find new sources of revenues to preserve their socio-economic well-being.
- The major trends accelerating the transition to clean energy include regulatory directives issued by governments, economically driven catalysts related to significant declines in costs, growing electrification of energy, and technological advancement that is making energy both smarter and cheaper.
- Of the total electricity generated globally, excluding hydropower, 8.4% was generated from renewable sources in 2017 compared to 2.4% in 2007. This percentage rises to 18.3% for Europe which is at the forefront of the global energy transition.
- China has made tremendous progress in green transformation. It is now generating around 7.3% of its electricity from renewable sources compared to 0.5% 10 years ago.
- The Middle East is still lagging its global peers but this seems to be about to change. GCC countries are planning major investments in the field of renewables which has the potential to drastically change the power generation dynamics in the region.
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