More energy needed, coming mostly from “alternative” energy:
As population grows from 7.5bn today to 10bn by 2050 and living standards also continue to grow, the world will consume up to 50% more energy in 2050 than today. Although this trend will be partially offset by growing energy efficiency, alternative energies will play a key role in meeting this demand as fossil fuels start losing their competitive edge and are facing increasing social pressure.
Electrification boom, driven by renewable and storage solutions:
An electrification boom is on the way: electricity share of the energy market will move from 18% today to 60% by 2100. It will impact all sectors, like mobility (electric cars will move from 1% to 35% of by 2040) and smart cities.
Renewables will grow to 40% or more of the energy mix by 2040, with $8tn of investments by then (including 50% in APAC), as prices continue to drop and become competitive with fossil fuels. In such an environment, oil & gas prices are likely to stay low, with oil & gas companies continuing to opportunistically focus on costs reductions and consolidation options. Energy storage is developing fast and its price is expected to decrease by a factor of 3 in the next 3 to 5 years, bringing a solution to renewable production intermittence, empowering “prosumers” (consumer and producers) and transforming the grid management to allow distributed generation and consumption.
Digitalization & smart management disruption:
Digitalization combined with artificial intelligence, big data, and blockchain will bring new business models and new customer centricity. Smart grid management, smart transportation, smart cities and smart homes will force existing players to re-invent themselves as they face new digital entrants who will disrupt their market.
Growing environmental concerns :
As society is becoming increasingly vocal with regard to its environmental concerns, governments will enact tighter legislation to cap carbon emission and contain climate change. At the same time, consumers will get increasingly sensitive to the energy profile and carbon footprint of companies they buy products from. Energy incumbents will need to adjust to on-going tighter legislation, and companies will need to implement a green energy policy that will enhance their brand value. Suffice to say that more than 100 of the world’s most influential companies have already made the commitment to source 100% of their electricity from renewable sources (http://there100.org/).