BERLIN ENERGY TRANSITION DIALOGUE
EXPENSIVE ZERO EMISSION
Efforts to accelerate the global energy transition are estimated to require investment of
up to US$35 trillion before 2030 to accelerate the new renewable energy mix alias EBT
target of 40% that year.
This was revealed in the Berlin Energy Transition
Dialogue which took place on Tuesday (28/3). The
event took place between 28-30 March 2023. In
this event, the International Renewable Energy
Agency (Irena) called for a return to strategic shifts
in the energy transition to maintain the 1.5°C
climate target following a lack of significant
progress. The World Energy Transitions Outlook
Preview released by Irena shows that the global
energy transition has gone off track. According to
Irena, this was exacerbated by the effects of the
global crisis. Therefore, Director General Irena
Francesco La Camera calls for a fundamental
direction correction in the energy transition. He
sees a successful energy transition as demanding
bold, transformative steps that reflect the urgency
of the current situation. Therefore, he added,
comprehensive investments and policies worldwide
and all sectors must foster renewable energy and
trigger the necessary structural changes for a
dominant renewable-based energy transition. In
Irena's notes, the progress of the energy transition
is indicated by a significant mix of EBT generators
in 2022. (See infographic k) However, Irena views
the global EBT generating capacity must increase
from 3,000 gigawatts (GW) at present, to 10,000
GW in 2030 This means that it would require an
additional 1,000 GW per year on average, although
this step is limited to certain parts of the world. This
is because the development of EBT in China, the
European Union, and the United States has left
other countries behind. energy transition," he said
in his official statement, Tuesday (28/3). The World
Energy Transitions Outlook Preview outlines the
three priority pillars of the energy transition namely
physical infrastructure, policy and regulatory
support, and a skilled workforce. “This requires
significant investment and new ways of
cooperation, where all actors can engage in the
transition and play an optimal role," he explained.
The report shows that the lack of progress on EBT
further increases the need for investment
Global New Generating NRE Mix (%)
GLOBAL ELECTRICITY SUPPLY
IS INCREASING SHARPLY
It is projected that electricity production from
global power plants will triple in 2050 to 89.9
petawatthours (PWh), from 27 PWh in 2020.
and calls for systematic changes in the volume and
type of investment to prioritize the energy
transition. In fact, energy transition investment
must increase quadruple to more than US$5 trillion
to stay on target of 1.5°C. Despite, in the past year,
global energy transition investment has broken a
new record at US$1.3 trillion level. “By 2030,
cumulative investment must reached US$44 trillion,
with transitional technologies that me represent
80% of the total. Or US$35 trillion, prioritizing
efficiency, electrification, network expansion, and
flexibility," wrote the report released at the event.
According to Irena, every new investment decision
must be carefully assessed to simultaneously drive
transition and reduce the risk of stranded assets.
The report also shows that around 41% of planned
investment in 2050 remains targeted at fossil fuels.
In addition, Irena noted that an investment of
around US$1 trillion from the planned investment in
the annual fossil fuel sector by 2030 must be
realized. diverted to transition technologies and
infrastructure to keep the 1.5°C target within reach.
Irena underlined that investment must be
channeled to countries in a more equitable manner.
This is because 85% of global EBT investments will
only benefit less than 50% of the world's population
in 2022. “We have to rewrite the way international
cooperation works. Achieving the energy transition
requires stronger international cooperation,
including a collective effort to channel more funds
to developing countries,” said La Camera. He
assessed that going forward, multilateral financial
institutions need to direct more funds, with better
terms, to energy transition projects and build the
necessary physical infrastructure to sustain the
development of new energy systems.
ECONOMIC OPPORTUNITIES
Meanwhile, German Foreign Minister Annalena
Baerbock revealed that a massive shift towards
renewable energy is not only urgently needed to
address the climate crisis, but also presents
Global Energy Transition Investment Needs
(US$ billion/year)
Allocation 2030 Target 2050 Target
Energy Efficiency
EV Electrification
Heat pumps Electrifications
Hydrogen
Carbon Capture (CCS & BECCS)
enormous economic opportunities for the public
and private sectors. He emphasized that
Germany will support its partners around the
world in taking advantage of this opportunity.
According to him, countries that invest in green
hydrogen today, will be potential winners in the
future. In addition, he added, wind farms in
areas that have so far been in short supply offer
millions of people around the world a chance to
escape the poverty trap. “This conference is a
global meeting place for those who want to take
advantage of this opportunity or who are already
taking the lead. A complete shift to renewable
energy is possible. The global energy transition
must take steps – both for the benefit of the
climate and for prosperity,” he explained in his
official statement, Tuesday (28/3). German
Minister for Economic Affairs and Climate
Action Robert Habeck added that their goal is
clear, namely global warming must be
maintained to 1.5° C. “This is still an achievable
target. But there needs to be more action than
has happened so far," he said. Robert added
that the report released by the
Intergovernmental Panel on Climate Change
(IPCC) is now a warning as well as motivation
to accelerate this step. “What's important now is
that we make real progress in pushing the
energy transition forward. One of the
prerequisites for that is international
cooperation,” he said. On the other hand,
President of the German Renewable Energy
Federation (BEE), Simone Peter added that the
supply and cost crisis of fossil fuels, which had
been exacerbated by the war in Ukraine, could
only be overcome by a total transformation of
energy supply and achieving 100% renewable
energy. He assessed that all countries have the
potential to utilize clean local energy sources.
Moreover, he added, exploiting this potential is
safer and cheaper for the general population
and for business purposes. "This conference
provides a significant international platform to
advance this process on a global level."
Global Generating Energy Mix
2020 Mix (%) 2050 Mix (%)
Fossil and non NRE power plants
NRE power plants
Nuclear power plants