Top 5 Energy Stories (03/02): The Age of Electricity, EVs vs. Oil, and Air Pollution’s Peak
This week’s top energy stories cover the UK overtaking Germany in EV sales, AI’s growing demand on US energy grids, China’s solar progress, and the rise of all-electric aviation. Dive in to explore how these developments are reshaping the global energy landscape.
🔋 The World Enters the Age of Electricity
Electricity demand is rising at an unprecedented pace. In recent years, electricity consumption grew twice as fast as overall energy demand, but between now and 2035, it's expected to grow six times as fast. This surge is being driven by electric vehicles, air conditioning, AI, and digital infrastructure. The shift signals an accelerated transition toward a more electrified economy.
🌍 Enhanced Geothermal Nears Cost Parity with Fossil Fuels
By 2027, the levelized cost of electricity from enhanced geothermal systems is expected to drop to $80/MWh, potentially making it as competitive as coal and nuclear. The primary driver? Drilling times have been cut by 50-70%, reducing costs significantly. If these projections hold, enhanced geothermal could play a major role in the future of baseload power.
🚗 Germany’s Auto Industry Faces a Perfect Storm
German automakers are facing mounting challenges on multiple fronts. In China, they are losing market share to domestic EV makers. At home, auto sales remain sluggish. And now, U.S. tariffs on exports from their Mexico-based factories are adding yet another setback. The industry’s path forward is becoming increasingly complex as global competition intensifies.
🌫️ Has the World Passed Peak Air Pollution?
Global emissions of major air pollutants—including sulfur dioxide, nitrogen oxides, and black carbon—appear to have peaked, signaling a decline in air pollution worldwide. This shift is crucial for human health and ecosystems, but ammonia emissions from agriculture remain a concern. The challenge now is to accelerate the downward trend and maximize the benefits of cleaner air.
✈️ How EV Adoption is Reshaping Oil Demand
A look at oil consumption trends from 2015 to 2025 shows the growing impact of electric vehicle adoption. With more EVs on the road, the demand for oil is expected to decline in key markets, reshaping the long-term outlook for fossil fuel consumption. The next few years will be crucial in determining just how quickly this transition takes hold.