Energy Solutions by McKinsey

Governments and system operators predict that European electricity demand could grow by up to 7% annually by 2030, while McKinsey’s data predicts growth to be only slightly above 2%. However, new analysis suggests that 40% of our modeled growth may not materialize. Find out why: https://mck.co/4hhgaRo #EnergyTransition #ElectricityDemand #McKinseyInsights

Europe’s data center power demand is expected to almost triple by 2030, accounting for 5% of total electricity consumption. However, limited power access, long project lead times, and infrastructure challenges could hinder progress. Meeting this growing demand requires more than $250 to $300 billion in infrastructure investment. How can Europe address these challenges and unlock AI’s full economic potential? Find out more in our latest article. https://mck.co/3UPAJLp #AI #DataCenters #DigitalTransformation #McKinseyInsights

Our latest insights reveal a significant shift in projected power demand growth in Europe – up to 40% of the expected growth may not materialize. This is driven by factors like elevated power prices, energy efficiency improvements, and deindustrialization across key sectors like steel and chemicals. This shift poses major implications for the region’s energy transition and industry competitiveness. Governments and system operators will need to rethink their energy strategies to ensure an affordable and sustainable power supply. Learn more about the evolving power landscape in Europe in our latest insight: https://mck.co/4fhpGSC #EnergyTransition #ElectricityDemand #McKinseyInsights

What challenges are RES-based energy systems facing? While RES-based energy systems are now cheaper and make up a larger part of the energy mix than ever before, more work is needed around the economic feasibility of some RES business cases. One of these emerging challenges is power pricing. The comparatively lower marginal costs of RES mean that the price of electricity tends toward zero — or even negative pricing — at certain times of day. Explore other challenges impacting RES-based energy systems in our Global Energy Perspective 2024: https://mck.co/48gaMtG #GlobalEnergyPerspective2024 #EnergyTransition #Renewables

Low-carbon energy sources are set to make up the majority of the global power mix by 2050. Renewables currently account for 32 percent of global power generation, and this is projected to grow to between 65 and 80 percent by 2050, depending on the scenario. This growth is primarily driven by the lower cost of RES, though policy and incentives also play a role. Find out what is driving this growth in our Global Energy Perspective 2024: https://mck.co/3NwM0Me #GlobalEnergyPerspective2024 #EnergyTransition #Renewables

🌍🔥 What innovative solutions do you think are key to speeding up the energy transition in Asia? Join McKinsey experts in an upcoming webinar on our recently launched Global Energy Perspective 2024, with a special focus on the Asian energy system. Find out more about the factors that could influence real-world outcomes, a comprehensive view of the possible roads ahead, and emerging opportunities in the transition to a low-carbon future. Let's drive change together! Register here: https://mck.co/4055O0X #EnergyTransition #Sustainability #ClimateAction

What is the key to a successful energy and materials transition? While significant progress has been made since the Paris Agreement, the intertwined dynamic between the energy and materials transition is creating adaptive challenges for the industry. From growing energy demand to material supply-demand gaps, each challenge also presents an opportunity. #GlobalEnergyPerspective2024 #GlobalMaterialsPerspective2024 #EnergyTransition

Several bottlenecks need to be overcome for the energy transition to proceed at speed and scale. These bottlenecks include the availability of an appropriately skilled workforce for both renewables and fossil fuels. The net-zero transition is also changing the materials and mining demand profile as low-carbon technologies require more and different materials than conventional technologies. Pragmatic and adaptive regulation, informed by the evolving energy transition landscape, could also be an important component in resolving bottlenecks. Read our new reports on the energy and materials industry to find out more. https://mck.co/3XMAuCC #EnergyTransition #GlobalMaterialsPerspective2024 #GlobalEnergyPerspective2024

Growth in electricity consumption is expected to accelerate as new demand centers emerge. 💡 Analysis from the Global Energy Perspective 2024 suggests that, between 2023 and 2050, electricity demand could more than double in slower energy transition scenarios, and nearly triple in faster scenarios. Green hydrogen, electric vehicles, and data centers are projected to experience significant growth by 2050, driving an increase in electricity consumption and speeding up the electrification of the global energy system. Find out more about increasing energy demand, and how the industry can respond in the face of the energy transition:https://mck.co/3Zqaf68 #GlobalEnergyPerspective2024 #EnergyTransition #EnergyDemand

By 2050, global energy demand is projected to be as much as 18 percent higher than current levels. 📈 This growth will come from emerging economies, where growing populations and a strengthening middle class will result in higher energy demand. How this new demand is met will set the trajectory of the energy transition. Learn more about McKinsey’s take in our newly launched Global Energy Perspective 2024: https://mck.co/3XO0TQf #GlobalEnergyPerspective2024 #EnergyTransition #EnergyDemand