Global Electricity Review 2023

2022 will be remembered as a turning point in the world’s transition to clean power. Russia’s invasion of Ukraine made many governments rethink their plans amid spiking fossil fuel prices and security concerns about relying on fossil fuel imports. It also accelerated electrification: more heat pumps, more electric vehicles, more electrolysers. These will drive reductions in emissions for other sectors, and will put more pressure to build clean power more quickly.

A new era of falling power sector emissions is very close, thanks to the electricity superpowers of wind and solar. Wind and solar will need to maintain high growth rates this decade, even as they mature. More growth is needed from all other clean electricity sources, while more attention to efficiency is needed to avoid runaway growth in electricity demand. Urgent work is needed on ensuring wind and solar can be integrated into the grid: planning permissions, grid connections, grid flexibility and market design. 

Falling fossil generation means not only that the coal power phasedown will happen, but also that–for the first time–a gas power phasedown is now within reach. However, just how quickly power sector emissions will fall is not yet set. 

Significant strides

Foreword from Ember’s Non-Executive Chairs

We are pleased to introduce the Global Electricity Review 2023 from Ember, now in its fourth year, in which we highlight again the continued surge in clean power generation worldwide.

This report showcases the significant strides made in the transition towards a sustainable and decarbonized energy system, and the promising outlook for achieving the critical milestone of peak emissions from the power sector – perhaps in this coming year. Wind and solar are growing at between 15-20% pa based on a 10 year average, so look set to exceed increases in annual electricity demand by the end of 2023.

The world has abundant supplies of wind and solar, and this report documents how, through technical innovation and policy execution, this abundance has been converted into on-the-ground energy supply. Often at a lower cost than fossil fuels and faster than other sources of clean electricity. 

Other clean non-fossil fuel technologies are also playing their part – nuclear could be entering a renaissance in some countries but there have also been set backs, as unusual weather affected both hydro and nuclear plant. 

Tracking progress on how our electricity is generated is critical, as it is not only a huge source of greenhouse gases, it is also needed as an enabler of a cleaner and more efficient energy system overall. As transport and heat sectors increasingly electrify, demand will increase, providing a stronger investment case for new clean capacity. But fossil fuels are still providing the backbone of the electricity system in many large economies and we need to understand and replicate the underlying success factors for rapid decarbonisation. 

Ember is committed to using data analysis to tell the story of the clean transition and to providing insights that can increase the pace of change. We hope you find this report and the underlying public data sets useful and please provide us with feedback so we can continue to improve this publication. 

No more excuses

Foreword from Chile’s Minister of Energy, Diego Pardow

Last September, when I had been Chile’s Minister of Energy for two weeks, I had to travel to the Los Lagos region in the south of the country. In one of the activities on my schedule, I had the opportunity to meet Rodrigo Castillo, owner of a medical supply company who–thanks to a government program–was able to buy an electric car for his deliveries.

In 2019, Rodrigo faced–like the vast majority of Chileans–a significant rise in the price of fossil fuels. Added to this was an increase in inflation, which caused an overall rise in the cost of living for people.

Today, thanks to electrifying his transport, Rodrigo has managed to reduce his expenses by a third, which has made his company more competitive in his region. He is a concrete example of how the transition–in this case through electromobility–can offer not only cleaner cities and better jobs but also concrete improvements for citizens. That is what a green economy is all about.

In recent years, Chile has made important progress with respect to its transition. The latest achievements have positioned Chile as the best emerging country to invest in renewable energies, added to the high penetration of clean energies in our system, with last year’s milestone standing out that, for the first time, solar and wind overtook coal in electricity generation. 

In that respect, 2023 seems promising at a global level, especially thanks to the prediction of this report, which indicates that emissions from the electricity sector could begin to decrease as of this year. But we still have a long journey to travel, with many challenges ahead and with a clear objective: we must act quickly, always putting people at the centre. There are no more excuses.