The New Energy Landscape
Our energy system sits at an inflection point—shifting away from fossil fuels where possible, promoting electrification, and adding renewables to the mix.
Today, electricity accounts for 20% of all energy consumption
Under some electrification scenarios, that share could potentially reach 50% by 2050.*
An optimal energy system would not only have secure access to primary sources and key components, but it would also provide electricity cheaply when it is most needed and without harming the environment.
What is often ignored is that no single source of electricity is optimal across these three fronts. That is, fossil fuels and zero-carbon sources present different tradeoffs.
*US Department of Energy
“One crucial aspect of AI is still often underestimated: the exponentially increasing demand for computational capacity to power the training of large language models. Data centers today consume about 2% of global electricity—more than the nation of France.”
Explore the research
Investment Implications
Multiple energy sources will be needed to meet growing global demand, creating a range of investment opportunities around the world.
Portfolio Implications
CIOs need an action plan to address the cross-portfolio implications arising from a changing global energy system.
