Global electrification drive could lower energy import bill
According to an International Energy Agency report, increasing the share of electrification could deliver billions of dollars in energy bill savings.
According to a special report prepared by the International Energy Agency, increasing electricity's share in global final energy consumption to 35 percent by 2035 has the potential to reduce energy import bills by over $500 billion annually.
Preparation Process of the Report
The International Energy Agency's special report titled Electrification was written within the framework of the strategic partnership between the COP31 Presidency and the IEA at the request of Turkey and Australia.
Current Status and Targets
The share of electricity in global final energy consumption currently stands at around 23 percent. Analyses reveal that this rate can be cost-effectively increased to 33 percent using existing technologies.
Potential in the Transportation Sector
The 90 percent decline in lithium-ion battery prices since 2010 enables the electrification of approximately half of road transport demand dependent on oil at competitive costs.
Building and Industrial Applications
It is projected that approximately half of the global space heating demand in buildings and about 40 percent of energy consumption in industrial applications requiring low and medium temperatures can be cost-effectively electrified.
Impact on Oil Demand
Electric vehicles currently displace an oil demand of about 2.3 million barrels per day. In the High Electrification Scenario, this amount is calculated to reach 18 million barrels per day.
Grid and Investment Needs
To meet the rising demand, grids must be expanded 40 percent faster by 2035 compared to the last decade, and global investments need to triple to reach $1 trillion.