2024 Statistical Review of World Energy

Report reveals record highs in global energy consumption and emissions for 2023

03 July 2024

7 min read

The Energy Institute's 73rd Statistical Review, in collaboration with KPMG, reveals record highs in global energy consumption and emissions for 2023. Colm O’Neill of our Energy, Utilities and Telecoms team assesses the report and provides key commentary on the takeaways for Ireland.

Published since 1952, the Statistical Review of World Energy report is an excellent way to track national and global trends from objective and quantitative data. This year’s edition of the Statistical Review reveals that oil consumption significantly rebounded in 2023, largely due to the Chinese economy reopening with the relaxation of strict COVID lockdown policies.

Record high oil consumption

Global oil production reached a record level of just over 96 million barrels per day, and consumption of oil exceeded 100 million barrels per day for the first time ever. Global gas demand remained stable in 2023 though European gas demand saw a decline of 7% in 2023, down to is lowest level since 1994.

Russia’s share of EU gas imports fell from 45% in 2021 to just 9% in 2023 with imports of US LNG taking its place. Oil and gas still dominate the global energy space, providing 55% of total primary energy worldwide.

Overall, global energy-related greenhouse gas emissions exceeded 40 Gt CO2eq for the first time ever – a worrying record that highlights the need for accelerated action.

Ireland most fossil fuel dependent in the EU

The global situation is mirrored in Ireland where fossil fuels also dominate. In transport, which is our most energy intensive sector (42% of total primary consumption), only 5% of the energy comes from renewables^[1].

Demand for petrol and diesel rose by 7.7% and 1% last year, respectively, and EV sales have fallen in the same period^[2]. Of energy spent on heating (36% of total primary consumption) the share of renewables is 6%.

This places us respectively fourth last and last among our EU peers in these sectors. In total, fossil fuels provide 87% of our total energy^[3], which places us last in the EU, as seen in the graphic below.

Overall share of energy from renewable sources (2022)

However, Ireland is doing much better in the electricity sector with over 40% renewable penetration. Following a healthy onshore wind sector of almost 5,000 MW, solar PV installations have now reached almost 1,200 MW, with 373 MW coming from domestic rooftops. Furthermore, the onshore and offshore wind sectors have a pipeline of 11 GW and 12 GW, respectively, in various stages of development^[4].

Continuing to accelerate the deployment of renewable generation will be key to Ireland’s overall decarbonisation. In addition to reducing the carbon footprint of the electricity sector, increased renewable generation capacity enables decarbonisation of transport and heat through electrification. Investing in electric vehicles and heat pumps only makes sense if underpinned by a large and steady supply of domestic renewables.

Benefits from domestic renewables in Ireland

The delivery of renewable energy systems in Ireland will bring benefits also aside from decarbonisation. Increased renewables penetration in Ireland will increase the country’s energy security, create opportunities for new and growing industries, and allow Ireland to become net energy exporters rather than importers.

This would be an insurance policy against energy import price inflation such as the one experienced in the 2022 energy crisis following Russia’s invasion of Ukraine. The Government’s prioritisation of domestic energy production is for instance exemplified by the recently released National Biomethane Strategy. The Strategy sets the framework for the development of an indigenous biomethane sector, allowing for the production of a sustainable fuel which can be used by both the heat and transport sectors and displace fossil-based methane.

There is also significant interest from the private sector for investing in innovative renewable projects in Ireland due to our large potential for renewable generation. For example, the Simply Blue Group has recently acquired land in Whitegate adjacent to Ireland’s only oil refinery and plans to develop a renewable energy park to produce sustainable fuels.^[5]

Planning for renewables

Still, several major hurdles must be overcome for Ireland to realise the full potential of its renewable resources. Of these, the planning system is the largest of them all, which was revealed in a recent report surveying major Irish stakeholders produced by Wind Energy Ireland and KPMG.

The existing planning system is simply not geared to handle the volume of applications for complex, large-scale energy generation assets and runs the risk of derailing Ireland’s progress towards the targets in the Climate Action Plan. The timelines for developing renewable generation assets, which can be up to a decade, are far too long for the rate of change needed to limit global warming and reach our net zero targets.

Some positive developments have been seen recently, such as the publication of the Planning and Development Bill 2023^[6], but significant efforts are still required in terms of resourcing, ways of working, and prioritisation of renewable generation assets.

Citizen support

Support for renewable energy projects is high among Irish citizens. According to KPMG research, 76% support renewable energy projects near their homes. However, this support is at odds with the slow progress of projects through planning and construction. Enthusiasm also wanes for high-voltage power lines and pylons, at 34% - critical infrastructure required to enable ambitious renewable energy projects.

However, support for infrastructure more than doubles if these projects provide local economic benefits or create jobs in the community. Evidently, there is a clear path forward if we can improve collaboration and joined-up thinking within the renewable energy sector.

A thorough transition to renewable energy systems would bring substantial benefits to Ireland. Individuals and communities would see reduced electricity bills, local economic benefits and jobs from generation assets and infrastructure, and of course environmental benefits. Additionally, the transition would enable new, high-value industries such as data centres and fuel production to thrive and provide a significant boost to the economy.

To realise these benefits, it is crucial to build widespread trust and buy-in among Irish citizens, companies, and institutions. As such, Ireland needs a clear and unambiguous vision and plan to 2050 championed by strong political voices.

This vision could be spearheaded by the introduction of a national energy prosperity bond, which would give every Irish citizen a stake in the future, allowing them to play a huge role in the transition to sustainable energy and the net zero 2050 vision.

Fossil fuels remain on top

In conclusion, the Energy Institute's recent Statistical Review shows that oil and gas still dominate globally despite significant decarbonisation efforts. Growing energy demand from developing economies outweighs the pace of renewable generation asset deployment, which means that global energy-related greenhouse gas emissions are still on the rise.

Fossil fuel use remains strong also in Ireland. As the EU-country with lowest share of renewables in their energy mix, Ireland has substantial work to do on reducing emissions particularly outside of the electricity sector. Strong appetite from the private sector and wide-spread public acceptance are positive for renewable electricity while recent strategic developments, such as the National Biomethane Strategy^[7], shows promise for the hard-to-abate sectors of transport and heating.

Strong vision needed for our energy sector

Still, Ireland lacks a clear overarching vision and plan for the way to net zero 2050 with strong and unequivocal support from political leaders. Ireland needs to fully commit to being a leader within renewable energy and have a clear path forward with all resources pulling in the same direction. This will be a brave choice, but ultimately the one which will yield the most benefits to citizens, companies, and the state alike.

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