THE ENERGY MARKET

The energy market is changing. Before the COVID pandemic, reducing the impact of carbon emissions on the climate was a key topic of conversation in parliament, in boardrooms, and around dinner tables.

Now, as the world re-emerges from this unprecedented health crisis, the climate conversation has been tabled once more. The Cop26 Climate Conference in November saw the leaders of global powers commit to doubling down on ways to fix the environmental crisis before it is too late.

With this in mind, what will the Energy Market of the future look like?

Unfortunately, the immediate future may be filled with companies playing catch-up after the pandemic of 2020. Due to the inability to continue the construction and development of significant projects, the combined growth of renewable energy sites will be 10% lower than the years before the pandemic. However, governmental pressure may mean that companies will soon be back on track following the unimaginable events of
the last 18 months.

Once the market is back on track, renewable energy will likely play an increasingly more prominent role. Renewable production already accounts for around 42% of the electricity produced in the U.K. and about 6% of the country’s total energy usage. This figure is set to grow with the Net-Zero by 2050 plan released by the government in 2019. Expect to see a trend towards renewable energy on the energy market on a grander
scale than ever before.

According to global financial institution ING, renewable production could account for around 70% of global energy usage by 2040. This is an astounding figure, but it does mean that even 20 years from now, there is
still a significant place in the market for finite fossil fuels.

These projections seem to suggest that the net-zero by 2050 governmental plan may be slightly ambitious.

That being said, the future for the energy market certainly looks greener than ever before. As long as countries can fulfil their promises to reduce their carbon footprint and help save the earth, renewable energy will be the major market player over the next two decades.