Fossil Fuel Demand for Electricity peaked globally in 2022

 
The exponential growth of renewable energy has lowered global electricity prices and helped decarbonize electricity systems so much that fossil fuels are no longer economically feasible and their use has reached a peak, according to Bloomberg.
 
The Rocky Mountain Institute said, in a joint analysis with the Bezos Earth Fund, that solar and wind energy capabilities are rising from China to Europe, and this means that demand for oil, gas, and coal related to electricity generation will decline sharply. as a necessary step to reduce emissions associated with climate change.
 
“It is becoming increasingly obvious that the peak year for fossil fuel use in the energy grid was 2022. Because of how quickly alternative technologies are evolving, it will become increasingly impossible for the demand for fossil fuels to increase at these rates,” according to Kingsmill Bond, senior director at the Rocky Mountain Institute.
 
 
The shift comes as governments and industries rebuild energy infrastructure amid supply shortages and skyrocketing prices in the wake of Russia’s invasion of Ukraine. The adoption of renewable energy sources is also cheaper due to their wider penetration rates, which has made the cost of fossil fuels uncompetitive.
 
Solar panels, wind turbines, and batteries will provide more than a third of global electricity by 2030, compared to about 12% now, according to the institute’s projections. These sources may produce about 14 thousand terawatt-hours, exceeding fossil fuels.
 
And while clean energy is expanding globally, it is mostly driven by China and Europe. According to the report, solar and wind power output increased in Namibia, the Netherlands, Palestine, Jordan, and Chile at rates sufficient for five years.
 
Renewable energy already offers a cheaper form of electricity, with costs falling over the past decade, according to Bloomberg.
 
The data shows a decrease in the costs of solar energy and batteries by 80% between 2012 and 2022, offshore wind farms by 73%, and onshore by 57%.
 
The Rocky Mountain Institute estimates that increased adoption of clean technology could halve solar prices by 2030, to about $20 a megawatt-hour for solar power from $40 or more now. Capital exiting fossil fuels is likely to boost investments in low-carbon forms of energy.