By Nadia Zancanaro, ESG Analyst
"If a topic disappears from the headlines… does it mean it has become irrelevant?
The energy transition is receiving less attention. However, global energy demand continues to rise, and the system that powers our economies is undergoing a profound transformation.
A changing global energy mix
Fossil fuels — coal, oil and gas — still dominate the global energy mix.
But over the past 25 years, solar and wind have grown at extraordinary speed. While their share remains modest, their expansion has been exponential.
The three forces driving the energy transition
Three structural forces are shaping this transformation: climate, cost and geopolitics.
Climate
The Paris Agreement marked a global commitment to decarbonisation. Progress remains uneven, but the overall direction is clear.
Cost
Renewables are no longer a niche alternative. Solar energy, including storage, is on track to become the cheapest source of electricity globally.
Geopolitics
The war in Ukraine acted as a wake-up call, exposing Europe’s energy dependency and vulnerability. Energy security has since become a strategic priority, accelerating investment.
The rise of the “Age of Electricity”
We are entering what the International Energy Agency describes as the “Age of Electricity”.
Today, electricity accounts for around 20% of global energy consumption. This share is expected to increase as transport electrifies, industry modernises, and digital technologies expand.
Challenges of a non-linear transition
Energy transitions are never linear. Key challenges remain, including modernising power grids, scaling storage and batteries, and managing intermittency.
Solar and wind are abundant energy sources, but their variability requires infrastructure — and infrastructure requires capital.
An investment transformation underway
The energy transition is not only a climate story. It is also an investment story, and the transformation is already underway.
The future is electric, and increasingly renewable."
