Abstract

Energy underpins the development and enables investment, innovation, and new industries that drive jobs, inclusive growth, and the shared prosperity of entire economies. The COVID-19 pandemic and the war in Ukraine have led to a sharp rise in energy prices, increasing concerns about energy shortages and energy security, and slowing progress toward universal access to affordable, reliable, sustainable, and modern energy by 2030. The purpose of the article is to study key trends and trends in the development of the global energy sector. Ex-post-economic analysis was used during the retrospective analysis. The conducted analysis made it possible to single out three main trends in the development of the global energy sector: decarbonization, digitalization, and decentralization. The results of the evaluation of statistical information on the development of alternative energy allowed us to draw the following conclusions. The global weighted average current cost of electricity for solar photovoltaic and onshore wind decreased by 77% and 35%, respectively, between 2010 and 2018. Global electricity production from renewable energy sources also increased by 7% in 2018. led by China, which accounted for nearly 37% of offshore wind growth and 44% of solar PV growth. However, significant progress in the use of renewable energy sources is still concentrated in the power industry. The share of renewable energy sources in the transport and heating sectors is still limited, although showing moderate growth. The study of forecast indicators confirmed the steady trend of growth in the demand for renewable energy. Between 2018 and 2030, global demand for renewable energy is projected to grow by 64%. The results of the provided research can be used further in the study of the development of various sectors of the energy industry, in particular, alternative electricity, wind energy, etc.

Keywords: renewable energy, energy sector, global energy market, solar energy, wind energy, green technologies.

JEL Classification: O30, Q41, Q42.

Cite as: Chygryn, O., Shevchenko, K. (2023). Energy industry development: key trends and the core determinants. SocioEconomic Challenges, 7(1), 115-128. https://doi.org/10.21272/sec.7(1).115-128.2023

This work is licensed under a Creative Commons Attribution 4.0 International License

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