Demand in Electricity Production Requires Fossil Fuel in 2024
Global electricity demand is expected to boom faster due to clean energy transitions in the track. Experts believe that low-emissions electricity is expected to catch up with good speed in the transition to clean energy as it reduces environmental carbon emissions. The electricity outlook for 2024 expects an elevated production rate, citing the increased usage of electric vehicles and heaters to induce the decarbonization phenomenon in the environment. However, the increased need for electricity usage will keep fossil fuel requirements alive.
According to survey results, primary oil services worldwide are expected to increase quarterly dividends in 2024. It results from the industries' better performance in the fourth quarter to tally the market expectations. The fourth quarter results of 2023 are due to improvements in the oil drilling process in the international markets. The market expectations regarding electricity consumption result in elevated fossil fuel requirements, though in lesser amounts compared to past years. Low-emissions electricity consumption will require fossil fuel power plants to burn coal or oil for heat generation, resulting in electricity production. Therefore, experts suggest that low carbon emissions may lead to a rise in electricity consumption in the industrial sector. However, electricity generation is again dependent on fossil fuels. Thus, cutting back on fossil fuels due to the emergence of electricity consumption in light of the transition to green energy is a myth.
According to the International Energy Agency (IEA), global electricity growth is expected to ease by 2.2 percent in 2023 due to reduced electricity consumption in developed nations worldwide. However, electricity consumption is expected to increase by 3.4 percent from 2024 to 2026. Surveys cite that low electricity emissions are expected to increase by half of the world's electricity production by the end of 2026. It rose from 40 percent electricity generation in 2023. Therefore, renewable energy sources are expected to support electricity generation primarily, but fossil fuel contribution will be there, even if in a small amount.
