What a year 2024 has been.
The International Energy Agency (IEA) publishes its flagship World Energy Outlook report which takes a deep dive into energy analysis and uses these to shape its predictions for the years ahead. These include the biggest trends in energy demand and supply, as well as what they mean for energy security, emissions and economic development.
Taking inspiration from this, as well as looking back on some of the hottest trends and biggest Energy Digital stories, we sum up 10 of the biggest trends that dominated the energy industry in 2024.
10. Emphasis on energy security
Energy security — the availability of reliable and affordable energy sources — saw a growing emphasis in 2024.
Why? The escalating conflict in the Middle East and Russia’s ongoing war in Ukraine is just one example of how high the risk of further disruptions to energy stability is.
The agency says: “Fragility in today’s energy markets is a reminder of the abiding importance of energy security – the foundational and central mission of the IEA – and the ways that more efficient, cleaner energy systems can reduce energy security risks.”
9. Renewables are on the up
Although hardly a surprise, the growing pool of renewable energy sources around the world reached a defining moment in 2024.
With the phase-out of coal power in October 2024, wind, solar photovoltaic power and hydropower have taken over as the UK’s dominant sources of energy this year.
“The renewables future is here,” says Frankie Mayo, Senior Energy and Climate Analyst at energy thinktank Ember.
“This long-awaited milestone is a testament to how much progress the UK has made.
“It’s time to seize the moment, to cut reliance on expensive gas with new renewables, storage and grid upgrades.”
8. Backing of SAF production
In 2024, sustainable aviation fuel (SAF) production volumes reached 1 million tonnes, double the 500,000 tonnes produced in 2023, according to the International Air Transport Association (IATA).
Although the body’s Director General Willie Walsh says “SAF volumes are increasing, but disappointingly slowly” — as these figures are significantly below previous estimates that projected SAF production in 2024 at 1.5 million tonnes — it shows that, with correct legislation and regulation, SAF is playing a major part in decarbonising aviation and enabling the energy transition.
“Governments must quickly deliver concrete policy incentives to rapidly accelerate renewable energy production,” Willie says.
7. Nuclear’s image gets a refresh
Nuclear power is reemerging as a reliable clean energy source as the world grapples with the urgent need to reduce carbon emissions and ensure energy security.
It does not, however, come without controversy and challenges — its sustainability credentials have come under scrutiny in part due to concerns around nuclear waste and financial hurdles.
Yet its ability to provide reliable, low-emission baseload power means nuclear energy offers a solution to some of the most pressing challenges facing the global energy sector — and it has seen a rise in popularity in 2024.
“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers, while helping us progress toward our Climate Pledge commitment to be net zero carbon across our operations by 2040,” says Matt Garman, CEO of Amazon Web Services (AWS).
“One of the fastest ways to address climate change is by transitioning our society to carbon-free energy sources. Nuclear energy is both carbon-free and able to scale — which is why it’s an important area of investment for Amazon.”
6. PPAs bring the world closer to net zero
Power Purchase Agreements (PPAs) — the name given to long-term contractual agreements between an energy buyer or business and a renewable energy generator — have played a key role in securing the future of new energy infrastructure globally.
In the first quarter of 2024, PPA prices in Europe fell by an average of 15% compared to the previous quarter.
Innova emphasises how PPAs are integral to bringing countries closer to 2050 net zero goals as they can be a valuable tool for businesses to strengthen their carbon reduction plans.
Speaking on the announcement of ENGIE and Statkraft’s three new PPAs with French telecommunications company iliad Group, its CEO Thomas Reynaud said: “These three new PPAs clearly demonstrate how we’re seeking to take climate action in all of our geographies because there are no borders when it comes to carbon neutrality.”
5. Increased efforts in developing smart grids
There have been increased efforts in developing smart grids that can handle the complexities of distributed energy resources, including the integration of IoT, AI and big data analytics to optimise grid performance.
“Key global drivers accelerating the development of the smart grid include the transition to a decarbonised and decentralised energy business model,” Manx Electricity Authority’s Dr Richard Bujko says.
“This is occurring as the percentage of renewable energy on both UK and EU networks rapidly increases and electricity demand is expected to increase with the advent of electric vehicles and heat pumps."
Schneider Electric, for example, believes smart grids are important because they can help build grid resilience and reduce environmental impacts.
The energy solutions giant says: “Smart grid solutions hold immense potential to build grid resilience by ensuring supply quality, improving network availability, withstanding harsh weather conditions and mitigating cyber risks.
“These solutions are capable enough to power us into the future by accelerating decarbonisation and smart investment, maximising renewable energy penetration and reducing energy losses.”
4. Oil and gas is playing the right role in the energy transition
Despite it sounding like an odd juxtaposition, oil and gas does have a key role to play in the energy transition — and has done in 2024.
“The role of the oil and gas industry is to be in the game as part of an orderly transition, helping to keep the lights on while the new system grows,” McKinsey Senior Partner Micah Smith, who heads up the firm’s Oil & Gas practice globally, says.
“The energy transition toward cleaner, less carbon-intensive sources is real. Oil and gas are not going away any time soon. That may sound like a contradiction, but it is more like a description.
“Climate policy is focused on reducing greenhouse gas (GHG) emissions… However, it is just as important to ensure access to an affordable, reliable, and competitive global energy supply for everyone, everywhere.”
3. AI’s impact has continued to grow
A 2024 Top 10 would not be complete without giving a hand to the impact of AI.
There are plenty of energy industry applications from this year alone that show the true effect of AI and shine a light on how it is shaping the sector.
The World Economic Forum emphasises AI’s role in transforming energy efficiency across carbon-intensive industries and the IEA labels AI and energy as “the new power couple” thanks to AI’s ability to analyse vast amounts of energy data in real-time.
For example, Iberdrola — the company in pole position of Sustainability Magazine’s Top 250 Companies in Sustainability 2024 — now uses AWS GenAI to drive energy innovation. AWS’ advanced generative AI tools, including Amazon Bedrock and Amazon SageMaker, are being used by Iberdrola as part of its broader effort to integrate AI across its operations.
“We see AI playing a central role in helping us to deliver the smart grid, renewables and storage technology that will drive the energy transition forward,” says Sergio Merchán, Global CIO at Iberdrola.
2. Electrifying transport for a greener future
From Lime bikes to London buses, 2024 saw all forms of transport electrified to new levels.
Electric buses are gaining traction globally, with a 16% share of new bus sales in the European Union during the first half of 2024 alone. China continues to dominate in electric bus deployment. Transport for London (TfL) has electric tram-like buses, as well as more traditional ones, which are critical in the drive toward zero emissions.
On a micro scale, Lime — which operates the world’s largest fleet of shared electric vehicles — is ensuring its electric fleet is greener still by piloting renewable fuel HVO100 for all its EMEA operations in June 2024, slashing logistics emissions by nearly 90% and saving 7,100kg of CO₂.
Wayne Ting, CEO at Lime, says: “We still have a lot of work ahead but it's a great start.
“We won’t stop until we accomplish our mission of building a carbon free transportation future.”
1. Collaboration’s essential role further highlighted
None of the above would be possible without close-knit and cross-industry collaboration.
Collaboration — particularly collaboration that embraces diversity — unites different perspectives and areas of expertise, driving innovation.
This is crucial for creating new technologies and strategies that sustainably address energy demands, propel the future of the sector and ensure it operates as sustainably as possible.
Fabian Ziegler, CEO of DCC Energy, told Energy Digital in October: “This is all about collaboration. We’ll always need outstanding relationships… Collaboration is the name of the game.”
Nathalie Marcotte, who leads Schneider Electric’s Process Automation business globally, adds: “Partnerships are part of Schneider’s DNA. Our solutions act almost as a request for others to collaborate with us, especially when it comes to decarbonising heavy sectors.
“We’re really proud to be one of the world’s most sustainable companies and we like to make sure that benefits our clients.”
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