Global energy consumption reaches unprecedented peak in '23: EI report

Global primary energy consumption soared to a record absolute high in 2023, increasing by 2 per cent to 620 Exajoules (EJ), according to the latest Statistical Review of World Energy report by the Energy Institute (EI) and co-authors KPMG and Kearney. This surge was largely driven by a 1.5 per cent rise in fossil fuel consumption, which reached an unprecedented 505 EJ.

Coal consumption increased by 1.6 per cent, oil consumption rose by 2 per cent to surpass 100 million barrels per day for the first time, while gas consumption remained flat. Despite this growth, the share of fossil fuels in the overall energy mix marginally declined from 82 per cent to 81.5 per cent.

The increase in fossil fuel use contributed to a 2 per cent rise in emissions from energy, pushing global CO2 emissions to over 40 gigatonnes for the first time in history, as per the report.

Renewable electricity generation, excluding hydro, experienced significant growth, increasing by 13 per cent to a record 4,748 Terawatt hours (TWh). This growth was almost entirely driven by wind and solar power, which together accounted for 74 per cent of all net additional electricity generated. Renewables, excluding hydro, now represent 8 per cent of primary energy use, or 15 per cent when including hydroelectric power.

The ongoing conflict in Ukraine has had a notable impact on European gas consumption, which fell by 7 per cent following a 13 per cent decline the previous year. Russia's share of EU gas imports dropped dramatically to 15 per cent, down from 45 per cent in 2021, with liquefied natural gas (LNG) imports surpassing piped gas for the second consecutive year.

In major advanced economies, reliance on fossil fuels appears to have peaked. Europe saw fossil fuels fall to below 70 per cent of primary energy consumption for the first time since the Industrial Revolution, driven by reduced demand and the growth of renewable energy. In the US, fossil fuel consumption dropped to 80 per cent of total primary energy consumed.

In contrast, growth economies are finding it challenging to curb fossil fuel growth. In India, fossil fuel consumption increased by 8 per cent, accounting for almost all demand growth and reaching an 89 per cent share of overall consumption. Notably, India used more coal than Europe and North America combined for the first time.

Africa saw a slight decline in primary energy consumption, down 0.5 per cent in 2023, with fossil fuels making up 90 per cent of the total energy consumption and renewables (excluding hydro) accounting for only 6 per cent of electricity generation.

China's full return post-COVID led to a 6 per cent increase in fossil fuel use, reaching a new high. However, the share of fossil fuels in China's primary energy mix has been declining since 2011, down to 81.6 per cent in 2023. China contributed to 55 per cent of all renewable energy generation additions in 2023, surpassing the rest of the world combined. For the first time, China also overtook Europe on an energy per capita basis.

“In this year’s Statistical Review, we report on another year of highs in our energy hungry world. 2023 saw record consumption of fossil fuels and record emissions from energy, but also record generation of renewables, driven by increasingly competitive wind and solar energy,” said EI president Juliet Davenport OBE HonFEI.

“In a year where we have seen the contribution of renewables reaching a new record high, ever increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged at just over 80 per cent for yet another year. With CO2 emissions also reaching record levels, it’s time to redouble our efforts on reducing carbon emissions and providing finance and capacity to build more low carbon energy sources in the global south where demand is growing at a rapid pace,” said Simon Virley CB FEI, vice chair and head of energy and natural resources, KPMG in the UK.

“With global temperature increases closing in on 1.5 degrees Celsius, we hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead, and ready to take a lead in promoting and enabling the use of clean energy across the world.”

Fibre2Fashion News Desk (DP)