The Global Electrification Monitor (GEM), the flagship research initiative of the Global Sustainable Electricity Partnership (GSEP), tracks the state of electrification worldwide, identifying areas of progress and opportunities for further acceleration. The insights from the report reveal that, despite improvements in recent years, the pace of electrification still lags far behind what will be needed to achieve global decarbonization targets.
The five graphs below paint a compelling picture of where we are versus where we need to be to access the myriad benefits of efficient electrification, ranging from decarbonization to improved energy security.
1. Electrification is an essential lever for decarbonization with additional far-reaching benefits.
The electrification of final uses across the industry, buildings, and transport sectors is a powerful tool in driving decarbonization, as it leads to a direct reduction in fossil fuel consumption. While this evidently improves greenhouse gas emission levels, a reduced reliance on fossil fuels can also improve energy security, as non-fossil fuel producing countries lower their reliance on imports, all while driving decarbonization. (Read more >)
2. The current rate of electrification is not enough to achieve climate goals.
In 2020, electricity reached one-fifth of total global final energy consumption, a significant improvement from prior trends. However, the share of electricity needs to surpass 50% by 2050 if net zero targets are to be attained. The pace of electrification needs to more than double over the decades to come to put us on track to reach the IEA’s Net-Zero Emissions (NZE) Scenario for 2050. (Read more >)
3. The opportunities to electrify are vast.
Though the current pace of electrification is inadequate to achieve climate targets, there are ample opportunities to rapidly electrify. Across sectors, efficient, mature electrified solutions exist to replace fossil fuel-burning processes. This available potential to electrify is termed “space-for-action.” Capitalizing on the vast space-for-action will enable a significant increase in electrification rates even before hard-to-abate sectors are tackled. (Read more >)
4. The adoption of electrified solutions is growing, and not just due to their environmental benefits.
In the context of the energy crisis, consumers are increasingly gravitating toward electrified solutions due to their superior efficiency and resulting ability to lower energy bills. In Italy, for example, as energy prices rose across the board in 2022, a notable uptick in the adoption of electrified technologies like electric heaters and heat pumps was observed. Because these solutions are inherently more efficient than their alternatives, they enable long-term savings on energy costs. (Read more >)
5. Policy action is an essential enabler of the energy transition.
Governments have a critical role to play in driving the transition away from fossil fuels and establishing a level playing field between electricity and emissions-intensive energy sources. Across regions, electricity prices are higher than oil and gas bills, constituting a significant barrier to widespread electrification. As energy prices have risen throughout the ongoing energy crisis, government subsidies have been instrumental in keeping energy prices manageable for consumers. As we come out of the crisis, government support must continue to ensure that electricity remains an affordable alternative to fossil fuels. (Read more >)
Read the Global Electrification Monitor for more insights on the global state of electrification and the steps needed to accelerate the adoption of electrified solutions and put us on track to meet decarbonization targets.
