The 2024 Global Energy and Power Industry Report by Benchmark International sheds light on the rapid transformations within the global energy sector, projecting a 3.4% average annual growth in electricity demand through 2026. This increase is driven by emerging markets' energy needs, global electrification, and the rising demand for green hydrogen, marking a pivotal moment for renewable energy sources.
Renewables are expected to double their share in the global power mix over the next two decades, signaling a significant shift towards sustainability. Despite this, fossil fuels like oil, gas, and coal are anticipated to hit record demand levels this year, highlighting the complex interplay between traditional and renewable energy sources in meeting global energy needs.
Solar energy is set to lead the U.S. electricity generation growth in 2024, with an anticipated addition of 36 gigawatts in solar generating capacity. The energy storage sector is also on the brink of substantial expansion, potentially increasing battery manufacturing capacity by nearly eight times. Wind energy, despite facing higher costs and supply chain issues, continues to be a key player, with China maintaining its dominance in production.
The report also explores the mergers and acquisitions landscape, predicting consolidation in the oil and gas industry and heightened activity in renewables, fueled by valuation disparities and the push for digital transformation in energy operations. For stakeholders, including governments, private entities, and investors, the report is an essential tool for navigating the sector's future.
As the world addresses the dual challenges of escalating energy demands and climate change, the report underscores renewables' critical role in the future energy mix. Yet, it also acknowledges the ongoing reliance on fossil fuels for immediate needs, presenting a nuanced view of the energy transition. The findings are crucial for informed decision-making in an increasingly complex and evolving global energy landscape.
