A New China Emerges: Energy Demand in Emerging Markets Expected to Surge 60% by 2060

The key insights from S&P Global Energy’s new report highlight a potential energy transformation driven by emerging economies. Here’s a summary:

Key Takeaways:

1. Demand Surge: Primary energy demand in developing regions is projected to grow over 60% by 2060, effectively adding another China to global energy needs.
2. Renewables and Fossil Fuels: While renewables will be integral to meeting this demand, growth in oil, gas, and coal will continue alongside renewables instead of being replaced immediately.
3. China’s Dominance: China’s manufacturing capabilities position it as a leader in producing solar, battery, and grid technologies essential for the Global South.
4. New Energy Paradigms: Future energy cycles will be driven by the infrastructure development of less wealthy nations rather than mere adjustments in wealthier countries.

This analysis indicates we may face gradual, transformative shifts in energy dynamics rather than sudden shocks from traditional geopolitical events.