According to McKinsey’s latest “Global Energy Perspective” report, the share of renewables in global power generation is expected to double in the next 15 years while total fossil fuel demand is projected to peak before 2030.
In fact, peak oil could be as soon as 2025.
The report also estimated that renewables are projected to grow three-fold by 2050, accounting for 50% of power generation globally already by 2030 and 80-90% by 2050.
Meanwhile, hydrogen demand is expected to grow four to six-fold by 2050, driven primarily by road transport, maritime, and aviation, with hydrogen and derivative synfuels expected to account for 10% of global final energy consumption by 2050.
The report found that 61% of new renewable capacity installation is already priced lower than fossil fuel alternatives and that battery costs have also fallen by nearly half in the past four years.