The global energy sector is navigating a blizzard of uncertainty complicating decision-making for policymakers, business leaders and investors alike. Geopolitical tensions are straining long-standing relationships and reshaping energy markets. Yet, even in this period of flux, several clear trends remain visible, says Fatih Birol , Executive Director of the International Energy Agency.
More than half of annual global energy investment now flows into electricity. Power underpins the fastest-growing parts of the global economy, increasing its share in sectors such as transport and heating through electric vehicles and heat pumps.
Renewables are becoming the most competitive source of new power worldwide, meeting much, if not all, of rising electricity demand. Solar is leading this expansion and countries with strong resource endowments, including India, are particularly well positioned. Emerging options such as next-generation geothermal are also gaining momentum.
