Electrification

Electricity is central to modern life and will become even more so as it expands into transport & heating, replacing internal combustion engines (ICE) & gas boilers [IEA, 2023].  These replacements are generally more efficient, reducing energy demand, and their impact on GHG emissions grows as electricity gen is decarbonized [IEA, 2023].  Electricity renewable gen grew in 2022, continuing its upward trend, led by solar & wind, while new fossil fuel capacity declined [IRENA, 2023].

  

20% (2022); 27% (2030); 50% (2050)

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With significant potential to mitigate emissions and decarbonize energy supply chains, electrification is an important strategy to reach net zero goals.  As more energy end uses become electrified, the share of electricity in total final energy consumption increases in the Net Zero Emissions by 2050 (NZE) Scenario from 20%, in 2022, to over 27%, in 2030, and to over 50% by 2050 [IEA, 2023].

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Installed capacity 

  

Installed capacity worldwide in 2024 totaled around 9,600 GW [IRENA, 2025]:

  

• Fossil fuels                            4,740 GW

• Nuclear                                  398 GW

• Renewables                          4,448 GW

           

            Solar                                        1,865

            Hydroelectricity                      1,283

            Wind                                        1,133

            Geothermal                             16.9

            Others                                     150.1                            ​​

  

The global electricity generation capacity is expected to double in the next three decades, surpassing 14.7 TW by 2050.  By the end of 2022, China's installed power gen capacity was 2,564.05 GW [RTRS, 2023].

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Electricity demand

 

Global electricity demand increased by 389 TWh (3%), in line with average historical demand growth for 2010-2021, reaching 13,393 TWh in the first half of 2022.  During this period, renewables met growing electricity demand, halting coal & gas (Figure 1).  Global electricity gen in 2024 was 30,856 TWh [EMBER, 2025]: Figure 2 shows the global electricity mix from January to June 2022 (in this chart renewables exclude hydroelectric).  Figure 3 shows renewable electricity generation price-competitiveness (2000-2020).  Figure 4 shows Europe renewables electricity target for 2030.  Figure 5 shows the tracking progress of key energy systems by electrification os renewables to achieve the 1.5°C scenario developed by ARENA.  Figure 6 shows the power generation market size.

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Capacity factor

  

Nuclear energy has the highest capacity factor (83,1% - 2019).  Global weighted-average capacity factor of the others are: geothermal (70%), hydroelectric (50%), thermoelectric (46%), wind (31%), and solar PV (17%) [RENA, 2022].  The main reason for the reduced capacity factor of renewable resources is usually the availability of the energy source: the plant may be capable of producing electricity, but its "fuel" (wind, sunlight, or water) may not be available.  Notable facts include:

  

• Most turbines extract around 50% of the energy from the wind that passes through the rotor area.

• For the same amount of installed capacity, wind produces twice as much electricity as solar PV [AR6, 2023].

• Capacity factor of land based wind in the U.S. ranges from 24% to 56% (36% on average) [CCS, 2022].