The News
China is leading a new “age of electricity,” the International Energy Agency said, as fossil fuel demand looks set to peak by the end of the decade.
The global energy watchdog’s annual report said clean energy is being added at “an unprecedented rate,” faster than the growth in demand and enough to push fossil fuels into decline.
China accounted for 60% of all new renewable energy in 2023, the IEA said, and its solar generation alone is on course to exceed the US’ total electricity demand by the early 2030s.
SIGNALS
Clean energy transition could deliver a ‘peace dividend’
In the short term, conflicts in the Middle East and Russia may disrupt oil exports to the rest of the world, Reuters noted, but by the end of the decade, it is also likely that the fast-paced global transition to green power will create a surplus of fossil fuels — reducing prices, and further enabling countries to dedicate resources to renewable energy. If that happens, then “almost every country will have some degree of energy independence in the new energy system,” the UK-based think tank Chatham House predicted, as “almost every country will be able to harness renewable energy.” In turn, that independence could lower the risk of any future conflicts in the Middle East or South China Sea.
India seeks to challenge China’s green dominance
India wants to challenge China’s clean-energy dominance: New Delhi is planning a $109 billion investment in the country’s electricity grid to incorporate new renewable sources, with half likely to come from solar. China is currently the world’s largest solar panel manufacturer, Climate Home News reported, but analysts noted that India’s investment in the sector— part of Prime Minister Narendra Modi’s “self-reliant India” agenda — could eventually “make a dent in China’s dominance.” New Delhi is already capitalizing on US demand, increasing solar exports by 1000% in 2023 compared to the previous year. While tensions between the US and China tensions appear to have given India a boost, one expert noted, China still has a “two-decade head start” in the sector.