IEA Forecasts End of Fossil Fuel Era by 2030, Ushering in New ‘Age of Electricity

The International Energy Agency (IEA) forecasts that the world will soon enter an “age of electricity,” with fossil fuel demand expected to peak before 2030. This shift may lead to surplus oil and gas supplies, potentially driving greater investment in renewable energy. However, geopolitical tensions in the Middle East and Russia, alongside upcoming elections in major energy-consuming nations, add a layer of uncertainty to this outlook.

IEA Executive Director Fatih Birol emphasized that excess fossil fuel supplies could result in lower prices, enabling countries to allocate more funds to clean energy. Last year, over 560 gigawatts of renewable energy capacity were added globally, and a projected $2 trillion investment in green energy is expected in 2024.

Despite these strides, global electricity demand is rising faster than renewable energy output. As a result, fossil fuels are still expected to comprise 75% of the global energy mix by 2030, only a slight decrease from today.

The report also predicts that oil demand will peak at just under 102 million barrels per day before 2030, before declining to 99 million barrels per day by 2035 due to a shift towards electric vehicles. If countries adopt stricter climate policies, oil prices could fall to as low as $25 per barrel by 2050.