IEA Warns of Multiplying Risks in A World Thirsty for Energy
The International Energy Agency (IEA) on Wednesday called on governments to diversify supplies and increase cooperation as global need for energy continues to grow.
The Paris-based agency warned of “pressing energy security threats and growing longer-term risks across an unprecedented range of fuels and technologies” as it released its flagship World Energy Outlook.
The outlook highlights that, while renewable energies were deployed at record rates for a 23rd consecutive year in 2024, traditional sources of energy like oil, natural gas and coal also hit all-time highs.
“When we look at the history of the energy world in recent decades, there is no other time when energy security tensions have applied to so many fuels and technologies at once,” said IEA head Fatih Birol.
“With energy security front and centre for many governments, their responses need to consider the synergies and trade-offs that can arise with other policy goals on affordability, access, competitiveness and climate change.”
The report presents three scenarios “none of which is a forecast” the agency stresses based on the latest data policies, technologies and markets and aided by modelling.
In all three scenarios the Current Policies Scenario (CPS), the Stated Policies Scenario (STEPS) and the Net Zero Emissions by 2050 (NZE) Scenario.
The world is projected to surpass the threshold of 1.5 degrees Celsius above pre-industrial levels.
The NZE scenario however, would see temperatures dropped back below the 1.5-degree threshold in the long term, the agency said.
It insisted that, while the energy sector must be set up to deal with the security risks brought by higher temperatures, “there is still scope to avoid the worst climate outcomes.”
Birol said that the consumption of electricity in no longer growing merely in emerging and developing economies, marking a change in trend.
“Breakneck demand growth from data centres and AI is helping drive up electricity use in advanced economies, too,” Birol said.
“Last year, we said the world was moving quickly into the Age of Electricity, and it’s clear today that it has already arrived. “Global investment in data centres is expected to reach 580 billion dollars in 2025.
“Those who say that ‘data is the new oil’ will note that this surpasses the 540 billion dollars being spent on global oil supply a striking example of the changing nature of modern economies,” the IEA chief noted. Meta, Nigeria to Agree Settlement Terms in $32.8m Data Breach Fine
