A few years ago, discussions about the worldwide energy transition focused on the increasing use of wind and solar power. Today, renewable energy is expanding due to high demand, lowering costs, and a slew of new clean energy initiatives.
As the planet grapples with the possible consequences of climate change, technological advances and policies are being developed to guarantee that we use energy more efficiently and responsibly. The following are the energy market trends to watch in 2023.
1. Sustainable aviation fuel advancements
For the past few years, the usage of sustainable aviation fuel (SAF) has been limited. However, it appears to be on the brink of taking off, since money from the IRA encourages innovation and makes wider adoption more feasible.
JetBlue said in December that it will increase its use of SAF in 2023. Meanwhile, aircraft makers are experimenting with a number of long-term low-carbon options. Airbus has revealed that it is on schedule to test a liquid hydrogen-powered passenger airplane by 2026.
2. Increased emphasis on renewable energy sources
Countries all over the world are investing extensively in solar, wind, and water power as substitutes for traditional carbon fuels. This move to renewable energy sources is expected to lower emissions by up to 40% by 2030.
The IRA will also expedite the decarbonization of the energy industry. It is projected to speed up renewable energy deployment and EV adoption while moving newer technologies down the price chart.
3. A movement toward energy security and accessibility
Following the power sector upheaval created by Russia’s attack on Ukraine, countries are now prioritizing efficiency and security. And some are leaving decarbonization by the wayside.
As Russia’s invasion of Ukraine continues, some European countries are reopening coal facilities to supply emergency energy. Meanwhile, US corporations are shipping liquefied natural gas to Europe to assist governments there becoming less reliant on Russia for fuel.