Oil-fired power generation capacity to almost halve between 2019 and 2050

Oil&Gas Materials 16 December 2021 17:02 (UTC +04:00)
Oil-fired power generation capacity to almost halve between 2019 and 2050

BAKU, Azerbaijan, Dec.16

By Leman Zeynalova – Trend:

Oil-fired power generation capacity will almost halve to about 180 gigawatts (GW) between 2019 and 2050, Trend reports with reference to DNV GL.

“Gas-fired power is more competitive due to lower emissions and more stable prices long term. Hence, gas-fired power generation capacity declines by only a quarter to 1,500 GW in mid-century. Fossil fuel-based electricity will remain important in some global regions – for example Middle East and North Africa, and North East Eurasia – through significant technological and political inertia and lack of incentives required to further boost renewables build-out,” said the company.

DNV GL notes that the energy transition will vary by end-use sector.

“Final energy demand for buildings and manufacturing will keep growing to mid-century. Transport will by then consume 12 percent less energy than now, due mainly to electric vehicles replacing fossil fuel powered ones. There will be little scope for fossil-based power plants as renewables’ share in total electricity demand more than triples from 26 percent in 2019 to 82 percent in 2050. More than half the electricity from renewables in 2019 was provided by hydropower plants, whereas solar photovoltaic (PV) will provide the most (36 percent) electricity overall in mid-century. Wind energy is forecasted to account for 33 percent by 2050,” reads the report.

DNV GL experts believe that these global trends will be reflected in how much and what type of energy is derived from ocean resources. Offshore energy will grow slowly towards 2030, then slowly decline to match 2019 levels in 2050, says the company.


Follow the author on Twitter: @Lyaman_Zeyn