The consumption of fossil fuels remained steady despite record growth in the renewable energy sector.
According to the Energy Institute’s Statistical Review of World Energy , primary energy demand growth slowed in 2022 by increasing about 1.1 percent compared to its increase of 5.5 percent in 2021. The report noted that the energy sector shifted from demand around the COVID-19 pandemic to supply concerns from Russia’s invasion in Ukraine.
“As the world emerged from the pandemic and its impact on demand, 2022 witnessed energy markets again in crisis, with the Ukraine conflict upending assumptions about supply around the world,” Energy Institute CEO Nick Wayth said in a statement . “That in turn precipitated a price crisis and profound cost-of-living pressures across many economies.”
The report also found that oil, gas and coal products covered most of the energy demand even as renewable energy saw the highest increase ever. Coal held 35 percent of the share in the power sector, while gas hit about 23 percent of the share.
The increase of renewable energy was bolstered by new solar and wind developments, and reached 14 percent of the total global electricity production, which was higher than nuclear energy, which had a 9 percent share of total electricity production. The report said that solar and wind notched a “record increase” of 266 gigawatts in 2022 and solar accounted for 72 percent of additional capacity.
“We have seen further and ever more dangerous impacts of climate change across all continents. And despite broad consensus on the need to reach net-zero, global energy-related greenhouse gas emissions are still heading in the wrong direction,” Energy Institute President Juliet Davenport said in a statement.
The report also noted that oil consumption continued to increase to 97.3 million barrels per day in 2022 as Brent crude oil prices hit the highest level since 2013, at an average of $101.
The report was published by the Energy Institute, in collaboration with KPMG and Kearny, after BP ceased doing the report. BP still offers “continuing support” for the report.