The global energy transition is one of the most transformative processes of the 21st century. Driven by the need to mitigate climate change, reduce dependence on fossil fuels, and guarantee universal access to clean energy, this transition entails a profound reconfiguration of productive, technological, and geopolitical systems. More than a technical evolution, it represents a shift in the civilizational model, with drivers of the transition like climate change, energy security, geopolitical crises, eventual declining fossil fuels, and technological innovation, especially the falling cost of renewable energy and battery development.
Renewable energy is at the heart of the energy transition:
- Solar photovoltaic: It has experienced a price drop of more than 80% in two decades, becoming the cheapest source in many regions.
- Wind: Both onshore and offshore, it has gained competitiveness and scale, especially in Europe, China, and the US.
- Other sources: Geothermal energy, biomass, and hydropower complement the renewable energy mix according to local conditions.
Integrating these sources requires smart grids, energy storage, and demand flexibility.
The energy transition also involves energy efficiency and electrifying sectors traditionally dependent on fossil fuels:
- Transportation: Electric vehicles are consolidating as an alternative to the combustion engine, with advances in range, charging infrastructure, and prices.
- Buildings: The electrification of heating and cooking, along with improvements in insulation and efficiency, reduces energy consumption.
- Industry: Sectors such as steel, cement, and chemicals are exploring technologies such as green hydrogen and direct electrification.
Energy efficiency is key to reducing demand and facilitating the integration of renewables.