Five new global megatrends are changing energy sector: WWF

Five new megatrends are changing globally the energy sector, according to a study released Monday by the World Wide Fund for Nature (WWF) during Climate Conference in Paris.

First, the end of the fossil era has begun. According to the WWF, investors withdraw their funds from fossil fuels, in anticipation of more stringent climate targets and other social and environmental impacts of conventional energy sources.

The most recent example is the global insurance company Allianz leaving coal investments.

Second, the energy transition is already a global reality, while more and more countries are turning to renewable energy and leave nuclear and fossil energy production behind, according to the study.

The study said that for the first time in 2013, and again in 2014, more renewables than fossil-nuclear power plant capacity have been installed. In 2014 the amount of money invested in renewable electricity was more than twice as much as invested in fossil fuel-based plants.

Thirdly, drivers of global change are enormous technological leaps and rapidly falling prices. The cost of one kilowatt hour of solar power went down in a few decades from one euro to well below ten euro cents in countries with plentiful sunlight. In the future it could fall to two cents, predicts Germany's Fraunhofer Institute, citied by WWF.

Fourth, the energy future is decentralised. The WWF said energy production is shifting to billions of small and larger renewable energy plants. Energy poverty in poor countries will be eradicated with ever more cost-effective and decentralized renewable energy technologies.

Finally, the energy future is digital. The WWF said the IT and energy sectors are growing together. Only a combination of both will be able to reliably match the energy supply and demand at all times.

"The pace and extent of change are surprising and encouraging," Stephan Singer, Director Global Energy Policy of WWF International said, adding that "we need an ambitious climate deal here in Paris and strong political support of the global energy transition." Endit