RENEWABLES SURGE TO RECORD HIGHS AS FOSSIL FUELS MOUNT FIERCE FIGHTBACK

The energy landscape is locked in a fierce, data-driven competition as renewables reach unprecedented global penetration, forcing fossil fuel entities to diversify and reinforce their market position amid soaring global demand

- BY ABDULAZIZ KHATTAK

In an increasingly complex energy security context, a fierce competition is unfolding across a wide range of fuels and technologies.

Countries around the world are contending with pressing energy security threats and growing longer-term risks, thrusting energy into the heart of geopolitical tensions and elevating it as a core issue of economic and national security.

Global energy demand is expected to increase by 23 per cent by 2050, intensifying the race to secure resources.

Two mega-trends dominate the global power system for the rest of the decade: The rapid ascent of solar power as it challenges fossil fuel dominance; and robust electricity demand growth, as electricity replaces other forms of energy powering the global economy.

The competition is fierce: Clean power surpassed 40 per cent of global electricity generation in 2024, driven by record growth in renewables, especially solar.

Yet, fossil fuels are fighting back, continuing to fill part of the rising energy demand.

The world added over 700 gigawatts (GW) of renewable power capacity, marking the largest annual increase to date and a significant victory for the renewables camp.

Global energy-related carbon dioxide emissions increased by 0.8 per cent compared to 2023, reaching a new all-time high of 14.6 billion tonnes in the power sector alone.

The ADIPEC 2025 Impact Report highlights that the path ahead is one of “energy addition”, a pragmatic recognition that the world needs more of everything, intensifying the battle for market share between new and traditional sources.

REINFORCEMENT OR REPLACEMENT?

The concept of energy addition challenges the narrative of a simple linear transition where one source replaces another. Instead, it presents a scenario of fierce coexistence and competition.