Evolution of Energy Sources and Resilience Over the Last Two Centuries
The history of energy transitions has seen significant shifts in dominant energy sources and technologies over time, driven by various factors such as technological innovation, resource availability, economic changes, and environmental concerns. This article explores the key milestones and trends that have shaped our energy landscape, leading us to the current transition towards renewable energy sources.
From Wood and Muscle Power to Coal and Steam
The pre-industrial era saw energy coming from wood, muscle, wind, and water power. However, the Industrial Revolution, spanning the 18th and 19th centuries, marked a significant turning point. Industrialising economies turned to coal as a cheaper source of energy, marking the beginning of its large-scale use. This shift stimulated coal mining and steam engine technologies, requiring extensive infrastructure like mines, canals, and railroads.
The Emergence of Oil and Electricity
Late in the 19th century, petroleum started emerging as a key energy source, with electricity generation and use expanding in the following decades. Inventions like Faraday’s electric generator (1831) and electric motor (1834) paved the way for electric power. The oil industry grew intensely, especially in the US and Russia, later expanding globally.
The Oil Crisis and the Birth of the Energy Transition Concept
The term "energy transition" emerged during the 1973 oil crisis, popularised by political leaders such as US President Jimmy Carter. It pointed to shifts from fossil fuels towards energy conservation and renewables (solar, wind).
The 21st Century: A Shift Towards Oil and Gas
Oil and natural gas became dominant fuels in the 20th century, with the oil industry growing intensely, especially in the US and Russia, later expanding globally. Companies like TotalEnergies began in the 1920s and evolved to meet changing energy demands.
The Accelerated Energy Transition
The energy transition is happening more rapidly due to climate change urgency and policy measures. Renewable energy sources are expanding globally, with rapid deployment of renewable energy technologies (solar, wind, batteries). There's a shift from centralised large power plants to decentralised, local energy generation.
Corporate strategic shifts are also evident, such as oil majors rebranding and investing in multi-energy and renewables to achieve carbon neutrality by 2050, as demonstrated by TotalEnergies.
Investment in the Energy Transition
Global energy transition investment hit a record of $755 billion in 2021. Renewable energy capacity additions were on track to set an annual record in 2021, following a record year in 2020.
Challenges Ahead
History shows that simply adding generation capacity is not enough to facilitate an energy transition. It also requires massive investments in natural resources, infrastructure, and grid storage, along with changes in energy consumption habits. The energy transition to low-carbon sources will require similar investments and changes in infrastructure and consumption habits.
Between 2000 and 2010, the share of renewables increased by 1.1%, but between 2010 and 2020, this figure stood at 3.5%. This rapid increase is necessary to meet climate goals for net-zero emissions by 2050.
In conclusion, the energy transition has historically evolved from wood and muscle power to coal and steam, then to oil, gas, and electricity, and is now moving towards renewables, driven by environmental and technological imperatives. The current transition is faster and more complex due to climate change and global policy commitments.
Science and environmental-science have played pivotal roles in the energy transition, particularly in understanding the impact of climate-change on the environment and the need for renewable energy sources. Due to this, the finance industry is increasingly investing in projects that support the transition towards a greener future; for instance, in 2021, global energy transition investment reached a record of $755 billion. This shift in focus from traditional fossil fuel industries towards renewable energy underscores the importance of industry cooperation and innovation in addressing climate-change and promoting a sustainable environment.
