Bittwatt Whitepaper

The World Energy Market: Outlook
and Challenges
Our global energy landscape is changing. Traditional centers of demand are being overtaken
by fast-growing emerging markets, all the while technological advances and environmental
concerns are shifting the world’s energy mix. Now – more than ever – the energy industry must
adapt in order to successfully fulfil our need for sustainable power.
What we are witnessing nowadays is a shift from the more traditional pillars of the energy
sector – such as coal-fired power plants and onshore oil and gas fields – to an energy sector
where hydropower and other renewable energy sources provide significantly larger shares
for market consumption. With the world’s net electricity production forecasted to grow by
45% to a total of 34 trillion kWh in 2040, latest macroeconomic analyses focus on five main
challenges that endanger the energy ecosystem:
• Maintaining a balanced and diversified energy mix;
• Assuring further development of natural gas infrastructure and supply;
• Expanding the role of biomass in household heating;
• High-efficiency cogeneration and modernization of CHP production facilities1;
• Increasing energy efficiency all the while countering energy poverty.
According to the US EIA2, latest projections show an increased world consumption of marketed
energy from all fuel sources through to the year 2040. Renewables are currently the world’s
fastest-growing energy source at a rate of 2.3%/year (2015 – 2040), with nuclear power
on second place with a 1.5% yearly increase during the same period. 20% of total power
consumed worldwide is currently attributed to residential and commercial sector accounts
combined, but these are currently forecasted to grow by 1.1% per year until 2040 Bittwatt Website
Bittwatt Whitepaper