Electricity is at the heart of the energy policy debate. Some see it as the leading edge of the energy transition, with a dramatic expansion of solar and wind power. To others, it is the source of the biggest remaining problem — coal, which still dominates in most of the world’s largest and growing economies.
In fact, both views are valid, as the International Energy Agency shows in its new World Energy Outlook.
Although electricity is leading the shift to a low-carbon economy — 50 per cent of the new power generation capacity starting up this year will be supplied by wind and solar — the sector is likely to remain overwhelmingly reliant on coal for decades to come. This is particularly true in China, India and other emerging economies.
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