A New Era in Global Sustainability and Renewable Energy.

The year 2022 marked a significant turning point in the global energy landscape. It was a year of contrasting narratives: unprecedented progress in renewable energy, particularly wind and solar, alongside a stark reminder of the ongoing challenges in global sustainability and climate action.

Geopolitical events, particularly Russia's invasion of Ukraine, have forced a reevaluation of energy strategies worldwide and the ravages of a hotter world have started to be felt across the globe after a record year of heat. These factors, combined with the cost curve making renewables the cheapest form of energy on earth, have accelerated the transition to renewable energy sources, driving the adoption of electrification technologies across various sectors.

However, to maintain this momentum, the expansion of renewable energy sources must continue at a rapid pace, alongside a focus on energy efficiency and effective integration into power grids.

A Pivotal Year for Renewable Energy:

In 2022, wind and solar energy achieved a remarkable feat, accounting for 12% of global electricity generation, an all-time high. This surge in renewable energy contributed to the lowest ever carbon intensity of global electricity, recording 436 gCO2/kWh. Solar energy, growing by 24%, remained the fastest-growing electricity source for the 18th consecutive year, while wind energy expanded by 17%. The impact of this growth is substantial, equating to the power demands of countries like South Africa and the UK.

Challenges in Decarbonizing the Power Sector:

Despite these advancements, the global power sector still faces significant hurdles in its journey towards decarbonization. The Generation Sustainability Trends Report 2023 highlights that while political shifts and new policies have brought climate change to the forefront of global politics, the world is not moving fast enough to meet the Paris Agreement's targets. Emissions are not falling as required; instead, they continue to rise from already high levels.

Coal and Gas: A Mixed Picture:

The year saw a limited increase in coal generation and a marginal fall in gas power generation, owing to high gas prices. While these changes reflect a shift in energy reliance, they also underscore the complexity of transitioning away from fossil fuels. The report notes that the 'coal power phasedown,' agreed at COP26, is yet to begin in earnest, highlighting the challenges in rapidly transforming energy systems.

Looking Ahead to 2024:

The developments in 2022 set the stage for a landmark year in 2023 and although the continued growth of renewable energy, especially wind and solar, looks unlikely to result in a small fall in fossil generation, the signs are there that 2024 may well be that first year, marking a new era of declining power sector emissions.

As we move into 2024, the world stands at a critical juncture, with the potential to usher in a new era of falling power sector emissions and a step closer to a sustainable future. The pace at which this transition occurs remains a subject of intense focus and effort.

Our mission at Tejo Ventures is to help expedite this transition, securing a safe future for our investors in the fight for a climate safe future for their kids, whilst they invest, or you, invest in a second citizenship as a just in case.