The share increases twenty-fold until 2030, from just under half a percent in 2022 to around 9% in 2030.

The pace at which electricity increases its share will have to accelerate to get on track with the NZE Scenario milestones.ĭespite its major contribution to emission reductions, the road transport sector has the smallest share for electricity in the total energy demand in 2030 under the NZE Scenario. This share grows to more than 27% by 2030 in the NZE Scenario - a compound average annual growth rate of around 4.1%. The current share of electricity in total final energy demand is 20%. Demand rose by about 2%, which is just below the average growth rate seen over the period 2015-2019.įrom 2016 to 2022 the share of electricity increased at a compound annual growth rate of 1.7%, with the highest increase (4.5%) seen in 2020. While electricity demand declined in Europe and growth slowed down in China, the United States and India saw a high increase in electricity demand following a relaxation of coronavirus (Covid-19) pandemic restrictions and an increase in economic activity. Additional reductions will occur with the increased use of renewable energy that often comes with electrification.Īfter a strong increase in electricity demand in 2021, demand remained resilient in 2022 amid the global energy crisis triggered by Russia’s invasion of Ukraine. Currently, natural gas boilers have a large share in residential heating, but new energy efficiency standards of buildings will increase the share of heat pumps. The second biggest contributor is the electrification of space heating. This segment benefits greatly from increasing technology deployment and legislation that targets air pollution within urban areas. The majority of electrification-related CO 2 emission reductions are in the road transport sector, specifically within the light-duty vehicle segment, with an increase in powertrain efficiency alone avoiding about 1 Gt of CO2 emissions in 2030 relative to today under the NZE Scenario.

Similarly, when the electricity supply becomes increasingly saturated with renewables, the carbon intensity across all sectors will drop. As the number of end uses increasingly shifts towards electricity, more (flexible) capacity is added to the electricity system, mitigating the effects of integrating variable renewables. Furthermore, the emission reduction benefits of electrification go hand-in-hand with an increase of renewable energy. Electrification holds great potential to reduce final energy demand because the efficiency of electric technologies is generally much higher than fossil fuel-based alternatives with similar energy services.

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