Today the International Energy Agency (IEA) released its annual World Energy Outlook report. The annual publication maps out the world’s energy consumption and its implications for international energy and climate targets.
The release of the energy sector’s bible, the World Energy Outlook for 2017, focusses on energy’s role in the global transition. The report reveals that the green transition is well underway, and that renewable energy sources are rapidly replacing coal as the world’s preferred energy source.
The report emphasises Denmark’s position as a frontrunner in providing the solutions that are crucial for the green transition.
-The report confirms the impressions I have gathered from my trips to countries such as Indonesia, India, China and the US. The green transition is already happening and there is a huge interest for Danish green solutions, which Danish companies can supply. We need to take advantage of that, and I am pleased that with the government’s export strategy for energy technology, we have been provided with a strong framework for our continued efforts, says the Danish Minister for Energy, Utilities and Climate Lars Chr. Lilleholt.
-Related news: Denmark’s Energy and Climate Outlook 2030 – Now in English
Price dip on renewable energy continues
World Energy Outlook 2017 anticipates that the price of renewable energy will continue to decrease. Since 2010, the prices on solar and wind energy have decreased by respectively 70% and 25%, and this trend is likely to continue, within solar as well as onshore and offshore wind energy.
-Onshore wind has been a competitive energy source for many years. Today, offshore wind is also very close to becoming competitive, especially after last year’s Kriegers Flak wind farm tender and Ørsted’s recent zero-support in Germany. That to me shows that we are heading in the right direction, says Minister of Energy, Utilities and Climate Lars Chr. Lilleholt.
Auctions are growing in popularity as an alternative to fixed support schemes
The report furthermore emphasises that the continued expansion of renewable energy will be increasingly market based and facilitated through competition based tenders.
For decades, the development of renewable energy in many countries has been based on different support tariffs and special schemes, where different technologies were subject to their own individual terms and conditions. This was also the case in Denmark until this year, when the government and the Danish People’s Party entered an agreement regarding a new support scheme for renewable energy, in which solar and wind energy will compete on equal terms.
-It confirms that time is slowly running out for the old, micro-managed support schemes for different types of renewable energy. Not only in Denmark, but also across the entire world. I am therefore also very pleased that our new tender model provides us with an opportunity to test how we can let the technologies compete against each other in order to supply as much green energy to the consumers before we implement a new energy agreement, says the Danish Minister of Energy, Utilities and Climate Lars Chr. Lilleholt.
Again this year the World Energy Outlook highlights the importance of the largest growing economies for the green transition. In countries such as China and India, energy consumption is expected to grow rapidly towards 2040. Therefore, their actions are of utmost importance, if the green transition is to succeed. The report focuses on both the continued expansion of renewable energy and the importance of increased energy efficiency. Additionally, they emphasise that flexibility in the energy system will become more important as fluctuating renewable energy is integrated into the energy system.
-Denmark advises large growing economies such as China and India on solutions within renewable energy and energy efficiency. It creates cost effective CO2-reductions at the same time as promoting Danish export opportunities. In China, one of the most important areas of collaboration is to make their power plants more flexible. If we succeed in this, we can contribute to China reducing their CO2 emissions by an amount that is equivalent to 75% of Denmark’s total CO2 emissions. By doing so, we demonstrate what Denmark has to offer within energy technology.