Global Electricity Review 2023

As soon as 2023 wind and solar could push the world into a new era of falling fossil generation, and therefore of falling power sector emissions. The global electricity sector is the first sector that needs to be decarbonised, in parallel with electricity demand rising, as electrification unlocks emissions cuts throughout the entire economy. The IEA Net Zero Emissions scenario points to a 2040 net zero power sector; ten years ahead of a net zero economy in 2050. Tracking the electricity transition, therefore, is critical to assess our climate progress. The decarbonisation of the power sector is underway, as record growth in wind and solar drove the emissions intensity of the world’s electricity to its lowest ever level in 2022. It will be an impressive moment when power sector emissions begin to fall year-on-year, but the world is not there yet, and emissions need to be falling fast. A new era of falling power sector emissions is very close due to the electricity superpowers of wind and solar. Wind and solar will need to maintain high growth rates this decade, even as they mature. More growth is needed from all other clean electricity sources, while more attention to efficiency is needed to avoid runaway growth in electricity demand. Urgent work is needed on ensuring wind and solar can be integrated into the grid: planning permission, grid connections, grid flexibility and market design. Falling fossil generation means not only that the coal power phasedown will happen, but also that for the first time a gas power phasedown is now within reach. However, just how quickly power sector emissions will fall is not yet set.