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Record Energy Consumption in 2023: A Global Perspective
Context:
According to the 73rd Statistical Review of World Energy (SRWE) released by the Energy Institute, global primary energy consumption reached a record high in 2023, rising by 2% compared to 2022.
- The report emphasises the continued dominance of the global North in both fossil fuel production and consumption.
The Current Landscape and Renewable Energy Growth
- Fossil fuels account for 81.5% of total primary energy consumption globally.
- They play a key role in driving economic growth, particularly in developing nations, which consume 56% of the world’s energy.
- The Asia-Pacific region leads global energy demand, contributing 47%, driven by major economies like China, India, and Japan.
- Renewables are gaining traction, making up 14.6% of the global energy mix.
- Solar and wind power installations are seeing significant growth, particularly in China and Europe.
- The Southern and Central American region is demonstrating exceptional growth in renewables (72% of their energy portfolio) while also expanding oil production.
Regional Differences and Emissions
- Low Consumption in Developing Regions: Africa (witnessed a slight decline (0.4%)) and South Asia, despite their population size, have a very low share of global energy consumption (less than 10%).
- Global average greenhouse gas emissions per person were 6.7 tonnes of CO2 equivalent, but North America emitted a higher amount (11.5 MtCO2e) compared to developing regions (2 MtCO2e in Africa, South Asia, and Southern and Central America).
- Rising Global Emissions: Total global emissions surpassed 40 billion tonnes of CO2 equivalent, primarily due to increased industrial activities and flaring.
Fossil Fuel Breakdown
- Oil consumption hit a record 100 million barrels per day, with China as the primary driver.
- Natural gas consumption remained stable globally, but Europe saw a significant decline. The US became the world’s largest liquefied natural gas(LNG) exporter.
- Coal production reached record levels, mainly sourced from the Asia-Pacific region led by China, India, and Indonesia.
- Global coal consumption surpassed 164 exajoules, largely fueled by China accounted for over half of the total consumption for the first time.
Challenges and opportunities for renewable energy: Despite the dominance of fossil fuels, the expansion of renewable energy capacity offers a ray of hope.
- Nearly one-third of the world’s electricity will be generated by renewable energy in 2023, reflecting a 67% increase in solar and wind power capacity installations.
- This growth was particularly significant in China and Europe, underscoring the global shift towards cleaner energy sources.
The Path Forward
- Clean Energy Momentum: Investment in clean energy has risen by 40% since 2020.
- Solar photovoltaic (PV) capacity additions are breaking records, and electric vehicle (EV) sales are on the rise.
- Economic and Environmental Drivers: The economic case for clean energy technologies is strong, driven by emission reduction goals, energy security, and job creation. As manufacturing capacity expands, the transition gains momentum.
