Renewable energies are facing an uphill battle in all the major energy consuming sectors, reveals the Energy Demand Module of the Renewables 2024 Global Status Report.
The Energy Demand Module, released on 30 May, outlines key trends on the status of renewables in different energy demand sectors with dedicated chapters on buildings, industry, transport and agriculture sectors.
Renewable energy adoption in the energy-consuming sectors is stalling, despite a strong appetite for renewables, due to a lack of strategic integrated planning, inconsistent policies, and a lack of structural reforms, shows the newly released Renewable in Energy Demand module of the Renewables 2024 Global Status Report.
Without transitioning these key sectors, phasing out fossil fuels is impossible.
Highlights from the Energy Demand module
The module highlights the dismal increase in renewable energy uptake in the energy-consuming sectors. In 2021, renewable energy rose to 15.9% in building (up 0.4%), and to 16.5% in agriculture (up 1%), while industry stagnated at 16.8%. The share of renewables in transport decreased from 4.1% in 2020 to 3.9% in 2021 due to increased demand being met by fossil fuels.
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By the end of 2023, only 13 countries including Greece, Portugal, Spain, Ireland, United Kingdom, Italy, United States of America, Egypt, China, Vietnam, France, Germany and India, had implemented renewable energy policies across all end-use sectors—buildings, industry, transport, and agriculture.
Efforts to integrate renewables into aviation, rail, and shipping are gaining momentum, but continue to face political hurdles. By 2023, only 10 countries had announced renewable energy policies for these sectors.
Similarly, in the agriculture sector only 4 countries (Bangladesh, India, Republic of Korea and Malta) and the EU, have renewable energy targets, despite the myriad benefits of integrating renewables with agricultural practices. The report highlights how energy-efficient solar-powered cold storage systems in Kenya have proven affordable and reliable for small-scale farmers, leading to an increase in incomes of up to 40%.
The buildings sector brought some hope with investment in energy efficiency rising by 14% in 2022 to reach USD 285 billion. However, investment growth was estimated to slow down due to inflation in 2023.
And when it came to industries, 74% of direct energy use for heat in the sector was non-renewable, with renewable energy accounting for 12.1% in 2021.
Currently, we run the risk of compounding this slow progress, as higher capital costs and rising inflation stall project development, against the backdrop of countries weakening existing policies.
“What began as a good-news story of turning the energy crisis into opportunity is veering in a disappointing direction. Policymakers are stuck in business-as-usual, failing to build on the success of their reactive crisis-response measures with coherent and strategic long-term policies and planning. We need to urgently realign policies to reflect the structural changes needed in the energy-consuming sectors,” said Rana Adib, REN21 Executive Director.
The report makes it abundantly clear – governments are not prioritising building their economies around renewables. Unlocking the potential of renewables requires strong political leadership, coherent policies and structural reforms. Governments must incentivise the energy transition with subsidies, tax breaks, rebates, and targeted regulatory measures.
Dive into the Renewables 2024 Global Status Report
Since 2023, REN21 has been releasing the Renewables Global Status Report (GSR) as a collection of modules to rigorously cover the energy system from its different elements, including demand, supply, systems and infrastructure, and economic and social value creation.
This Energy Demand Module follows the first module of the GSR 2024 series – the Global Overview – launched in April, which provides the status picture of renewables in the wider energy system and in the context of global challenges such as climate change, development goals, and the geopolitical landscape.
The upcoming Modules will explore different aspects of the energy system, including supply; systems and infrastructure; and economic and social value creation.