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3. Our strategy

A Decarbonization World

Decarbonisation continues to mark the global agenda, with the world watching, in 2016, for the third consecutive year, the stagnation of the carbon emissions of the energy sector. However, stagnation in emissions is not sufficient to meet the targets set in the Paris Agreement (December 2015).

The path of decarbonisation implicates a deep change to the economic model based on fossil fuels, a strong bet in energy efficiency, electrification based in renewables and the promotion of innovation.

Increase in Energy Demand

Geographically, the expected increase in demand is due to countries outside the OECD (emerging economies), with China remaining the largest consumer of energy.

The only forms of energy that will grow in all of the geographies will be natural gas and renewable energy, the latter being largely promoted via the electricity sector.

Primary energy sources in the world

(MTEP, 2016 - 2040)

32%
Oil
27%
Coal
22%
Gas
5%
Nuclear
14%
Renewables
27%
22%
25%
6%
20%

Source: AIE, World Energy Outlook 2017, New Policies Scenario

At the final energy level, electricity will be the form of energy which is expected to register the greatest relative growth, about 63% by 2040, as a result of increasing urbanization and the penetration of electricity into new sectors such as transport.

  • 24%

    Oil

  • 16%
  • 86%

    Coal

  • 7%
  • 28%

    Gas

  • 59%
  • 63%

    Electricity

  • 63%
  • 10%

    Heat

  • 10%
  • 21%

    Renewables

  • 28%

2000 - 2016

2016 - 2040

Source: AIE, World Energy Outlook 2017, New Policies Scenario

Increasing Eletrification of Consumptions

ELECTRICITY
CONSUMPTION

By 2040 electricity will account for 40% of the increase in final energy consumption - equivalent to the oil share in growth over the last twenty-five years..

RENEWABLES

The technological development and consequent decrease in the costs of renewable energy is the driving force behind these technologies (mainly wind and solar PV), also driven by a set of policies based on environmental concerns and reduction of external dependence (particularly in Europe).

Digitalization and Innovation of the Sector

In the energy sector today there is a growing digitalization and innovation throughout the value chain. On the other hand, the increasing digitalization allows the more active participation of consumers, who become increasingly sophisticated.

RENEWABLE
ENERGY

In the electricity sector, in 2017, record prices of solar PV and wind energy were reached, as a result of the strong technological development and consequent reduction of renewable costs, coupled with a remuneration mechanism based on auctions of long-term contracts, thus promoting a reduction of the cost of capital.

SMART
GRIDS

In the electricity distribution and transport sector, smart grids are gaining in popularity as they allow for automatic monitoring of electricity flows, adjusting for misalignments in supply and demand. When aggregated with smart meters, these networks provide real-time information to consumers and electricity suppliers.

DISTRIBUTED
GENERATION

Consumers' sophistication promotes the development of integrated solutions that allow the consumer to install and operate distributed generation systems (eg. solar panels), maximize the use of energy through batteries and control their consumption through applications which promote energy efficiency.

ELECTRIC
MOBILITY

In the transport sector, the continuous reduction of the costs of batteries in the electric vehicle (EV) modules in conjunction with recent regulatory policies will promote its adoption, with 2017 marked by the electrification targets announced by several automobile manufacturers as well as governments. The International Energy Agency estimates that in 2040 EV's share corresponds to 14% of the fleet of passenger cars compared to the current 0.2%.