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Energy Transition Review for Enhancing Co-operation
…and infrastructure, but also exposing the system to global price volatility and import dependence.Renewable energy presents major opportunities for the Philippines to diversify its power supply and meet growing demand. Government targets aim to increase the share of renewables in the power generation mix to 35% by 2030 and 50% by 2040 – up from the 22% achieved in 2024. These objectives are articulated in the Philippine Energy Plan (PEP) 2023-2050, Volume II: Transitioning to Reliable, Clean, and Resilient Energy (hereafter “Philippine Energy Plan”) and the Power Development Plan (PDP) 2023-2050, which emphasise renewable deployment, energy efficiency, grid modernisation…
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Affordability
…and finally fans, particularly in hot locations. As available power increases and electricity becomes more reliable, refrigerators are installed as well. For many products, such as refrigerators, highly efficient models use less than half of the energy of inefficient models. Efficiency can thus lead to improved access to affordable energy services. IEA analysis shows that only 50% of the population in sub-Saharan Africa could afford key appliances when using low efficiency models, while 80% could afford them when using best-in-class models. Need more information? IEA (2024), Strategies for Affordable and Fair Clean Energy Transitions.IEA (2025), Desig...
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Grid investments
…Implementing energy efficiency and demand response measures can decrease and shift peak demand to less congested periods when electricity prices are lower and there is less stress on grid infrastructure. Demand response has seen rising uptake around the world, but further electrification and demand decarbonisation are expected to significantly increase its importance. For instance, in Australia, where various mechanisms have been successfully demonstrated, the value of demand response capacity could reach USD 11 billion per year by 2042. Globally, it could provide up to 50% of short-term flexibility needs in 2050. Need more information? IEA (2024), World Energy Outlook 2024.IEA…
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Jobs
…Meanwhile, other energy sector jobs are more prevalent in areas with lower unemployment rates. Energy efficiency investments also contribute to enhance the quality of jobs in other industries. Firms that invest in energy efficiency can significantly improve the quality of the working environment, with efficient lighting that provides increased visual comfort, or efficient ventilation systems that enhance air quality. By freeing up businesses’ spending through reduced energy bills, energy efficiency helps minimise cost pressures and supports employers in safeguarding jobs. Need more information? IEA (2020), World Energy Outlook Special Report - Sustainable Recovery.MICAT (2024), Empirical basis factsheet on Economic impacts…
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Asset values
…energy efficiency equipment, as they are responsible for the capital cost, while the tenant is the one benefiting from lower energy bills. This is often known as a “split incentive.” However, evidence from the United States suggests that energy efficiency improvements are associated with reduced vacancy and tenant turnover, which reduces associated transaction costs and provide an incentive for landlords to invest. Need more information? Eichholtz, P. (2024), The Impact of Minimum Energy Performance Standards on the Commercial Real Estate Market.Zitouny, S. (2024), On the capitalization of energy labels on the French housing market.Amaral, F. et al., (2024…
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Delivering Sustainable Fuels
…hydrogen-based fuels – offer multiple benefits for the energy sector. They complement electrification and energy efficiency in energy transitions, and are particularly important for sectors that continue to be reliant on fuel-based solutions such as aviation, shipping, and parts of road transport and industry. Sustainable fuels can also enhance energy security, strengthen environmental sustainability and stimulate economic development, particularly in rural areas.If fully legislated and implemented, current and proposed national and international policies would put the use of sustainable liquid and gaseous fuels on a path to nearly double from 2024 levels by 2030 and quadruple by 2035…
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The next wave of LED lighting: Smarter, circular and more efficient
…overall lighting electricity demand. In 2024, around 8% of global electricity demand – or about 2 200 terawatt hours (TWh) – was attributed to lighting in buildings and outdoor applications, excluding industry and agriculture. These figures reflect the latest available data and define the scope of the analysis presented in this commentary. Estimates from industry and experts place global electricity consumption for lighting, including industrial lighting, between 2 500 and 3 500 TWh in recent years.Over the past two decades, lighting has seen major efficiency gains thanks to the rapid uptake of the light-emitting diode (LED). A typical halogen lamp…
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State of Energy Policy 2026 Energy efficiency and fuel switching regulations
…Global energy intensity has improved by around 30% over the past 25 years, meaning the world uses about 30% less energy per unit of economic output today than it did in 2000, with differentiated trends by key end uses: passenger cars and air conditioners have notably seen efficiency improvements for new sales of 30% and 45%, respectively since 2005. However, the pace of improvement has slowed over the past 15 years, from an annual rate of about 2.2% in the early 2010s to about 1% in 2024, alongside a general slowdown in industrial value-added growth.Minimum energy performance standards…
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Gaining an Edge Opportunities in efficiency markets
…for EV batteries expanded to over 950 GWh in 2024.This has led firms to react and to expand production capacity to meet the demand. Production capacity for battery cells increased more than four-fold from 2020 to 2024, while for heat pumps it increased by 35% until 2023. Committed projects – i.e. those that are either under construction or have reached a final investment decision – will double battery cell production capacity again by 2030. When considering all announcements on capacity additions, they are even expected to triple by that time. Other energy efficiency technologies also show similar market expansion…
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Global EV Outlook 2025 Outlook for energy demand
…level, EVs represented about 0.7% of final electricity consumption in 2024.The stock of EVs is set to more than triple to 2030, but electricity demand could increase more than fourfold, reaching 780 TWh in the STEPS. This is driven by increasing consumption from electric trucks, as well as greater EV uptake in markets where people drive more per year. Total energy demand for road transport increases by only 5% in 2030 in the STEPS, while total road activity (in terms of vehicle kilometres travelled) increases by almost 20% during the same period, reflecting the greater energy efficiency of EVs…
